17 Dec 2009 11:12

Bank Saint-Petersburg cuts IFRS earnings 86% in 9M, above forecast

ST. PETERSBURG. Dec 17 (Interfax) - Bank Saint-Petersburg reduced net profit to International Financial Reporting Standards (IFRS) 86.1% to 273.5 million rubles in January-September 2009, from 1.971 billion rubles a year previously, the bank said in a statement.

This is better than the 63.9 million rubles profit that analysts predicted in a consensus forecast.

Provisions for loan impairment grew to 8.5% in Q3 from 7.3% in Q2, and stood at 13.614 billion rubles as of October 1, compared with 11.307 billion rubles on July 1.

Past-due loans fell to 6.9% from 7.5% of the loan book during Q3 as the quality of the loan book gradually improved through efforts to recover debt, and the loan book grew in absolute terms.

Net profit in Q3 grew 49% year-on-year to 322.2 million rubles.

Net interest income rose 11% year-on-year in the 9M to 7.364 billion rubles. The net interest margin was 5.5% at the end of Q3, up 0.5 pp from the end of Q2, due to an increase in the volume of interest-earning assets while the cost of funding decreased.

Net income before provisions and taxes increased by 52.8% compared to 9M 2008 and amounted to 10.7 billion rubles. Net income for 9M 2009 amounted to 273.5 million rubles; net income for Q3 2009 amounted to 322.2 million rubles, up 49% compared to Q3 2008). The bank's return on equity for 3Q improved to 6.8%, consequently the return on equity for 9M 2009 amounted to 1.9%.

Assets grew 0.8% during the 9M to 217.466 billion rubles from 215.715 billion rubles.

As at October 1, 2009 the shareholders equity increased by 0.7% to 18.9 billion rubles, mainly due to the retained income. The bank's total capital grew by 13.2% to 27.4 billion rubles from 24.2 billion rubles for FY 2008. As at October 1, 2009, the Bank's Tier 1 and total capital adequacy ratios were 8.7% and 14.1% respectively.

Return on equity (ROE) was 6.8% in Q3 2009 and 1.9% in 9M 2009.

The bank said it focused its efforts on capital base strengthening in the 9M of 2009. In June, the bank received a 10.5-years $75-million subordinated loan from the European Bank for Reconstruction and Development (EBRD), and in August, it received a 1.466-billion ruble subordinated loan from Vnesheconombank.

In December 2009, the bank raised approximately $200 million through an offering of class A preferred shares.

The bank was Russia's 17th largest by assets, according to the Interfax-100 ranking at the end of the third quarter of 2009.