VEB earns 20.8 bln rubles in revenue from securities operations in Q1
MOSCOW. May 18 (Interfax) - Vnesheconombank (VEB) made 20.8 billion rubles in net income from operations with securities in the first quarter, versus 2.6 billion rubles in losses in the same quarter last year.
VEB's Q1 securities report says interest income from investment in securities increased 59% to 4.1 billion rubles. The bank says this was a product of increased investments themselves.
Net interest income was 13.846 billion rubles, up 36% year-on-year.
Interest income from loans to non-lending organizations decreased 10% year-on-year. This was mainly attributable to lower revenue received on 108 credits at floating interest rates, as the base rates applicable in the reporting period were lower than those applied in the same period last year, the report says.
VEB's revenues from the placement of funds with other banks increased 26% to 10.6 billion rubles, again, due to an increase in the placed monies involved, which stood at 534.6 billion rubles on April 1 this year (24% more than one year prior).
The bank turned net Q1 profits of 23.1 billion rubles, up more than 20-fold year-on-year and a consequence of reduced provisioning, VEB said.
According to the securities report, funds set aside for provisions in the first quarter came to 4 billion rubles, where they were 10.6 billion rubles one year prior.
VEB's equity stood at 353.305 billion rubles on April 1, up 3.9% over the quarter. The maximum risk per borrower at the start of April was 63.6%.
Vnesheconombank increased net profit to Russian Accounting Standards (RAS) 230% to 30.957 billion rubles in 2009. The bank's assets were 1.810 trillion rubles at the end of last year, having increased 13.35% over the year. Net loan debt increased 13.8% to 1.209 trillion rubles.