Key Indicators

ASSETS TRENDS AND MIX
RUB billion

LIABILITIES TRENDS AND MIX
RUB billion

CAPITAL TRENDS
RUB billion

CUSTOMER FUNDS TRENDS
RUB billion

LOAN PORTFOLIO TRENDS
RUB billion

Vozrozhdenie Bank’s assets in 2014 grew by 8% to RUB 227.9 billion, mainly driven by an increase in liquid instruments. Cash and cash equivalents increased by 21.5% to RUB 35.6 billion and growth in the securities portfolio was 81.6%, coming to RUB 22.1 billion. As a result, liquid assets grew from 19.5% to 24.9%. The ratio of loans before provisions to deposits amounted to 97.7%, close to the bank’s target level of 100%.

The gross loan portfolio grew by 1.2% to RUB 170.2 billion, mainly driven by retail loans, which increased by 8.4% to RUB 46.2 billion. The corporate loan portfolio decreased by 1.3% during the year to RUB 123.9 billion. Annual growth of client funds was 7.8%, to RUB 174.2 billion, mainly driven by a 15.8% year-to-date increase in retail deposits to RUB 122.8 billion, outperforming the sector by 6.4 percentage points (according to the Bank of Russia). Corporate funds in the reporting period decreased by 7.4%, amounting to RUB 51.4 billion by the end of 2014.

The bank's equity, calculated in accordance with Basel III Standards, increased by 12.6% to RUB 26.2 billion. Capitalisation of profits remained the main source for its replenishing. The total regulatory capital adequacy ratio (N 1.0 ratio) grew by 0.8 percentage points to 12.0%, and the common equity Tier 1 adequacy ratio (N 1.1 ratio) increased by 0.5 percentage points to 9.3%.

NET INTEREST INCOME TRENDS
RUB billion

NET INCOME TRENDS*
RUB billion

NET FEE AND COMMISSION INCOME TRENDS
RUB billion

OPERATING PROFIT TRENDS*
RUB billion

*Before provisions.

OPERATING EXPENSES TRENDS
RUB billion

Operating income before provisions mix
RUB billion

The bank’s net interest income grew by 3.2% to RUB 9.8 billion, driven by the growth in revenue from retail business. Net fee and commission income amounted to RUB 4.0 billion, with an annual decrease of 12.1% driven by competitive pressure from major state banks and multiple increases of international payment systems’ fees. In the last year, the bank introduced a number of initiatives aimed at increase in commission income, which was instrumental in expanding settlement operations and fees on credit cards and cheques in the second half of the year. Net non-interest income amounted to RUB 4.6 billion in 2014, or 32% of the total operating income before provisions, versus 35% in 2013.

Operating expenses in 2014 totaled RUB 9.4 billion, with an annual increase of 6.7%, which was below the inflation level in the reporting period. The growth was driven by increased personnel costs (by 6% to RUB 5.6 billion) due to higher level of salaries and a 7.8% increase in other overhead costs (mainly in relation to investment in an operational model optimisation project and a purchase of new software).

Net profit in 2014 decreased by 19.3% compared to 2013 and amounted to RUB 1.2 billion in the light of a reduction in fee and commission income and expenses growth. Return-on-equity (ROE) decreased compared to the 2013 result by 1.8 percentage points to 5.2%.

Corporate Business

Retail Business

Bank Card Business

Financial Market Activities

The bank is actively focused on being a reliable, long-term partner to many companies in different parts of Russia by offering its suite of tailored solutions. A traditional focus is on the expansion of the bank’s operations in the SME sector; however, the bank continues to successfully service its major clients and implement its Microbusiness Programme. The bank’s priorities in 2014 were expanding and diversifying its customer base, improving performance and implementing cutting-edge banking technologies.

Vozrozhdenie Bank’s corporate loan portfolio in 2014 totaled RUB 123.9 billion, and the yield on the corporate loans reached 11.2%, exceeding the previous year’s indicator by 13 basis points. The bank raises corporate deposits to meet the current loan portfolio funding needs. Corporate deposits in 2014 amounted to RUB 51.4 billion.

INCOME TRENDS
RUB billion

NET INCOME TRENDS*
RUB billion

* Before provisions.


CORPORATE LOAN PORTFOLIO TRENDS
RUB billion

CORPORATE DEPOSITS TRENDS
RUB billion

Details of corporate business performance are available here

The bank will continue to expand its operations in the retail segment, striving to increase client deposits, its loan portfolio and improve profitability of retail loans without compromising quality. The bank is actively developing sales technologies and relationships with its target audience, improving bank card services infrastructure and remote channels and launching new payroll projects for its corporate clients.

The bank’s retail loan portfolio in 2014 amounted to RUB 46.2 billion and private funds totaled RUB 122.8 billion. Vozrozhdenie Bank was rated among the TOP-10 banks in terms of mortgages on the primary market based on 2014 results. The bank continued to consistently develop its consumer lending business. Throughout the year, the bank increased the number of payment and self-service terminals in all regions where it operates.

INCOME TRENDS
RUB billion

NET INCOME TRENDS*
RUB billion

* Before provision.

RETAIL LOAN PORTFOLIO TRENDS*
RUB billion

* Before provisions, including credit cards.

RETAIL CLIENTS’ DEPOSITS TRENDS
RUB billion

Details of retail business performance are available here

The bank is consistently implementing its card business development strategy by expanding its customer base, launching new payroll projects and implementing cutting-edge and innovative technologies in its client services system. The bank’s main priority is to ensure the highest level of security at its ATM network and remote channels.

As of December 31, 2014, the bank issued 1,100,100 debit and 92,100 credit cards. Number of credit card issue increased by 42.8%, including active sales of instant-issue credit cards. The ATM network expanded by 5.6% to 904 ATMs. Throughout the year, there was a substantial improvement of the functionality of remote service channels.

INCOME TRENDS
RUB billion

NET INCOME TRENDS*
RUB billion

* Before provisions.


NUMBER OF CREDIT CARDS TRENDS
units

NUMBER OF DEBIT CARDS trends
units

Details of bank card business performance are available here

The bank endeavours to diversify its securities portfolio and closely monitor the optimal mix of profitability, safety and liquidity. In the second half of 2014, the bank capitalised on the decline in the securities market and growth in bond yields to increase its investment in low-risk, liquid instruments like short-term bonds of sovereign and quasi-sovereign issuers. The securities portfolio amounted to RUB 22.1 billion by January 01, 2015, increasing by RUB 8.5 billion over the year.

In 2014, the bank continued its activities on the interbank market, placing both RUB and FX funds. The bank did not enter into new agreements on trade finance with foreign banks during the year. About EUR 4.3 million was raised during the year under the agreements signed earlier.

INCOME TRENDS
RUB billion

NET INCOME TRENDS*
RUB billion

*Before provisions.

TRADING SECURITIES PORTFOLIO TRENDS
RUB billion

Details of financial business performance are available here

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