Moscow, January 22, 2010.
Moscow, January 22, 2010. BANK URALSIB (Bank) (RTS: USBN) reports
on preliminary 2009 financial results under Russian Accounting
Standards (RAS) before post balance sheet events1.
Key achievements
|
the Bank’s liquidity was maintained at
sufficient level during the crisis year;
|
|
fulfillment of obligations to international
counterparties: due repayment of all international syndicated loans
maturing in 2009;
|
|
authorized capital of the Bank was increased
by 30% to 26.5 bln rubles in IIQ2009 due to additional share
issue;
|
|
full repayment of borrowings from federal
budget and CBR unsecured funds;
|
|
return to the Bank’s profitability in
IIH2009.
|
Financial results
Net loss of the Bank reached 4.3 bln rubles in 2009, pre-tax loss
amounted to 4.2 bln rubles. This negative result was mainly caused
by additional allowances for loan losses amounting to 13.7 bln
rubles. The most considerable amount of allowances for loan losses
(9.3 bln rubles) was formed in IIIQ09, reversing both net income of
IH2009 (345 mln rubles) and net income of IVQ2009 (2.4 bln
rubles).
|
Selected Income Statement items
|
12M09 |
IVQ09 |
12Q08 |
IVQ08 |
Change 12M09/12M08 |
| RUB mln. |
| Net interest income |
14,793 |
2,893 |
21,255 |
6,024 |
-30.4% |
| Net fee and commission income |
5,638 |
1,248 |
6,890 |
1,720 |
-18.2% |
| Net gains from operations with
securities |
4,723 |
922 |
-2,645 |
336 |
- |
| Net gains from operations with foreign
currencies and precious metals |
1,003 |
232 |
2,061 |
700 |
-51.3% |
| Other non-interest income |
450 |
153 |
189 |
-51 |
138.1% |
| Allowances for loan losses |
-13,710 |
391 |
-4,809 |
-3,244 |
185.1% |
| Net operating income |
12,897 |
5,839 |
22,941 |
5,485 |
-43.8% |
| Operating expenses |
17,141 |
3,531 |
17,570 |
5,340 |
-2.4% |
| Pre-tax income/loss |
-4,245 |
2,308 |
5,371 |
144 |
- |
| Net income/loss |
-4,344 |
2,435 |
3,253 |
25 |
- |
Supplementary allowances for loan losses were
formed during 12M2009 due to the poor IH2009 financial results of
the corporate borrowers. According to the Central Bank of Russia
regulations, the Bank had to increase allowances for loan losses,
despite due debt service of the borrowers.
Since September 2009 the Bank has been steadily
generating net income, thus displaying its ability to absorb the
negative effects caused by deterioration of borrowers’ credit
quality.
Another positive factor is the decrease of
overdue loans volume from 28.0 bln rubles as of IIIQ2009 to 22.4
bln rubles at the end of 2009 (by 20.1%). The allowances for loan
losses/overdue loans ratio amounted to 118% as of 31.12.2009.
Due to the Bank’s efficient performance at
Russian securities market, net gains from operations with
securities grew up substantially to 4.7 bln rubles during 12M2009.
These gains resulted from trading operations with equity and debt
financial instruments and securities revaluation. Net gains from
operations with foreign currencies and precious metals had similar
dynamics, reaching 1.0 bln rubles by the end of 2009.
|
Selected Balance Sheet items |
31.12.2009 |
31.12.2008 |
Change, 31.12.09/31.12.08 |
| RUB mln. |
| Assets |
379,036 |
426,109 |
-11.0% |
| Equity |
44,899 |
41,411 |
8.4% |
| Loan portfolio (gross) |
201,706 |
264,600 |
-23.8% |
| Corporate loan portfolio |
131,688 |
181,907 |
-27.6% |
| Retail loan portfolio |
70,018 |
82,693 |
-15.3% |
| Customer accounts |
237,362 |
214,235 |
10.8% |
| Corporate customers
accounts |
150,244 |
150,330 |
-0.1% |
| Individual customers
accounts |
87,118 |
63,905 |
36.3% |
| Securities portfolio |
92,810 |
60,105 |
54.4% |
Mainly due to reduction of loan portfolio during
the reporting period the Bank’s assets reduced by 11.0% to 379.0
bln rubles.
The Bank’s loan portfolio dropped to 201.7 bln
rubles (by 23.8% y-t-d). Loans to retail customers shrank to 70.0
bln rubles (by 15.3% to y-t-d), loans to corporate customers
decreased to 131.7 bln rubles (by 27.6% y-t-d). Such dynamics
resulted from toughening of risk-management system in crisis
conditions. Thus assets structure underwent qualitative changes
towards higher liquidity. Loan portfolio/customer accounts ratio
decreased to 85% as of 31.12.2009 vs 124% as of 31.12.2008.
Customer accounts2 reached 237.4 bln
rubles as of 31.12.2009, showing positive dynamics (by 10.8%
y-t-d). Individual accounts increased to 87.1 bln rubles (growth by
36.3%). Corporate accounts showed high volatility during 2009,
overall remaining at the same level amounting to 150.2 bln rubles
y-t-d.
During 2009 the Bank gradually reduced
borrowings raised under CBR unsecured auctions and the debt to
Central Bank was fully repaid by the end of the year.
Besides, at the beginning of July 2009 the Bank
duly repaid two syndicated loans with total amount of $US 717
mln.
Net income, gained by the Bank in December (1.4
bln rubles), and the increase of the authorized capital by 6.1 bln
rubles due to additional share issue led to increase of total
regulatory capital under CBR methodology to 54.0 bln rubles as of
01.01.2010 (by 10.7% d-t-d). As a result, the capital adequacy
ratio (N1) highly exceeded the minimum level and reached 16.6% as
of 01.01.2010.
1 Nonconsolidated financial results of OJSC
"URALSIB" under Russian Accounting Standards (RAS). Following the
results of post balance sheet events, the results may be
updated
2 Corporate and individual
customer accounts exclusive of budgetary funds
