Operational highlights

As of January 1, 2014 the assets of Bank Vozrozhdenie amounted to 211 billion roubles representing an increase of 1% on a year-over-year basis. Significant liquidity cushion allowed the Bank to fulfil all its commitments to the clients during Q4, while retaining a proportion of liquid assets at a comfortable level of 19.5%. As a result, the share of interest-earning assets in the portfolio improved by 1.5% to 79.9%. The ratio of loans before provisions to deposits grew to 104%, which is within the Bank’s target range.

The loan portfolio before provisions added 7.6% over the year, reaching 168.2 billion roubles. The main driver of growth was the expansion of the portfolio of retail loans, which amounted to 29.8%, thereby beating the overall trend in the banking sector (+28.7%). Corporate lending grew over the year by 1.7% to 125.6 billion roubles. Lending to individuals progressed in the past 12 months by almost 10 billion roubles to 42.6 billion roubles, predominantly due to the mortgage portfolio, which expanded year-on-year by 32.5% to 29.5 billion roubles. Consumer loans, car loans and credit card loans demonstrated positive trends in the reporting period, gaining 24.2% and, at the close of 2013, totalled 13.1 billion roubles. By the end of the reporting period, the share of retail loans in the total loan portfolio reached 25.4%.

Interest-earning assets,
RUB billion

* Before provisions.

Capital,
RUB billion

Corporate loan book, RUB billion

* Before provisions.

Retail loan book, RUB billion

* Before provisions.

Customer funds,
RUB billion

Retail funds,
RUB billion

As of January 1, 2014 client funds had declined by 1.4%, compared with the beginning of 2013, to 161.5 billion roubles. The reduction of client funds in Q4 was linked to overall market conditions and customer concerns about the stability of the banking system after policy was tightened up by the regulator. At the same time, private client funds grew from the beginning of 2013 by 4.2 billion roubles, to 106 billion roubles, remaining the most significant source of funding with a 56% share of the Bank’s liabilities.

Profit capitalisation remained the main source of the Bank capital support that, on January 1, 2014, reached 22.4 billion roubles, representing a rise of 7.5% in comparison with the previous year.