BPS-Sberbank Performance results for 1 Q 2011
Highlights of the Bank’s financial performance under IFRS for the 1st quarter ended on March 31, 2011:
- The Bank’s net profit (IFRS) totaled BYR 4.7 billion;
- Net interest income before provision reached BYR 129.5 billion;
- Net fee and commission income grew to BYR 54.3 billion;
- Operating profit before provision was BYR 18.0 billion;
- The loan portfolio before provision for loan impairment grew up by 15.8% from the beginning of 2011;
- Capital adequacy in accordance with Basel 1 made 12.7%.
In the 1st quarter 2011, while key showings of the Bank’s financial activity such as net interest income and fee and commission income grew significantly, net profit for the period contracted due to revaluation of derivative instruments at fair value (BYR -51 billion).
The showings of the effectiveness of the core Bank’s activities, which is attraction of funds and financing economy needs, are at stable growth. Net interest spread and net interest margin made 6.9% and 6.7% for the 1st quarter 2011 against 6.1% and 6.4% for the respective period of the previous year.
The Bank's assets increased up to BYR 9,657 billion. Asset growth from the year start made 9.7%. Income-generating to total assets ratio made 85.4%.
The loan portfolio (before provision) reached BYR 7,647 billion. Allowance rate for loan impairment made 3.23%. Increase of lending volume was supported both by corporate sector (corporate loans increased by 15.5% in comparison with the year start, and made BYR 6,641 billion) and retail sector (retail loans increased by 18% up to BYR 1,006 billion).
The share of non-performing loans in the Bank's loan portfolio decreased from 0.87% as of 2011 year start down to 0.73% at the end-March 2011 and made BYR 55.8 billion. Meanwhile, allowance for loan impairment created by the Bank fully cover the volume of non-performing loans: NPL coverage made 4.4.
The volume of debt securities issued as of end-March 2011 made BYR 542 billion. Out of them, liabilities to legal entities on bonds and certificates of deposits made BYR 492.4 billion, liabilities to individuals made BYR 49.6 billion. Net increase of the total volume of issued debt securities from January to March 2011 made 5.9%.
In accordance with Basel Accord, the amount of the Bank's equity as of March 31, 2011 for the purposes of capital adequacy was BYR 1,030 billion, and Tier 1 capital made BYR 857.4 billion, with CAR being 12.7% and 10.6%, respectively.