9 Sep 2010 18:07

TransCreditBank triples net profit to 2.8 bln rubles in H1

MOSCOW. Sept 9 (Interfax) - TransCreditBank (TCB) boosted net profit almost 200% to 2.8 billion rubles in the first half of 2010 under IFRS, the bank said in a statement.

Net profit in the second quarter amounted to 1.3 billion rubles.

Net interest income in the second quarter rose 19% compared with the first quarter and 13.3% year-on-year to 3.6 billion rubles.

Net commission income in the second quarter rose 15.3% quarter-on-quarter but fell 39.6% year-on-year to 960 million rubles due receipt of a large, one-off cancellation fee last year.

Provisioning for loan impairment increased to 1.1 billion rubles in the second quarter from 771 million rubles in the first quarter, but was down from 3 billion rubles in the second quarter of 2009.

Operating income before provisioning increased 8% compared with the first quarter and 4.5% year-on-year.

Operating expenses increased to 2.6 billion rubles, up 10.9% quarter-on-quarter and 43.2% year-on-year due to a 5% increase in headcount in the first half and the opening of five new offices under the bank's strategy aimed at growing the retail and SME business.

The net interest margin was 5.3% in the first half, down from 7.4% in the first half of 2009. The margin rose to 5.5% in the second quarter from 5.1% in the first. Return on average equity rose to 26% from 11.3% in the first half last year. The return on average assets increased to 1.9% from 0.8%.

"Total assets grew 27.2% in the first six months of 2010 to 328.8 billion rubles, driven by growth of the loan portfolio, securities portfolio and cash & cash equivalents position," the statement says.

"Trading securities portfolio grew 120.8% in the first half to 52.1 billion rubles following short-term placement of customer funds, primarily in Russian state bonds (OFZ)," it says.

"Gross loans to customers grew 22.7% to 189.9 billion rubles in the first half. The Group attracted a number of new clients among private-sector companies, including large manufacturing, infrastructure construction companies, country-wide retail chains, and regional telecoms."

"Retail portfolio grew by 5.1% in the second quarter, with growth recorded for the first time since the first quarter of 2009. Resumed retail programs in early 2010, which had been suspended during the crisis, decreasing lending rates, and seasonal demand resulted in the growth of consumer and mortgage loans to employees of Russian Railways by 4% and 2%, respectively, and of consumer loans to other customers (mainly employees of corporate clients) by 9% in the second quarter."

"Non-performing loans (>90 days overdue) were down to 4.2% of gross loans from 4.6% at the end of the first quarter and 5.0% at the end of 2009."

"The quality of retail portfolio showed first signs of stabilization, with the total amount of retail NPLs down to 2.7 billion rubles from 2.8 billion rubles and the share of retail NPLs in the portfolio down to 4.7% from 5.1% in the first quarter of 2010. At the same time, corporate NPLs increased to 5.4 billion rubles from 5.1 billion rubles, with the share of corporate NPLs down to 4.0% from 4.4% in the first quarter of 2010 on the back of increased size of the portfolio."

"The share of restructured loans in the portfolio was 3.8%. Loans with extended loan maturities are considered restructured. Loans whose interest rates were lowered following recent market pressure on lending rates and loans with altered payment schedules and unaffected maturities, are not considered restructured."

"Provisions provided coverage for 167% of non-performing loans, up from 156% in the first quarter of 2010 and 150% at the end of 2009."

"Customer accounts grew for the fifth consecutive quarter. Deposits and current accounts increased 57.9% from year-end 2009. Accounts from state-controlled companies grew strongest (124.9%) following inflow of funds from Russian Railways and its subsidiaries, as well as other state-controlled companies and municipal authorities. Retail customer accounts increased 22.4% from year-end 2009 and 8.2% in the second quarter."

"Shareholders' equity grew by 2.4 billion rubles (11.8%) to 22.5 billion rubles. Total capital adequacy ratio according to Basel Accord was at 12.1%."

TCB was the 14th biggest Russian bank by assets according to the Interfax-100 list as of the end of the first half of 2010.