23 January 2014

Bank Vozrozhdenie published preliminary financial results for 2013 (except for the events after the reporting date).

"In 2013 we were dedicated to our key priorities - support of corporate clients' business and providing retail customers with high quality business services. Loans to individuals continued to drive assets growth, with best dynamics in mortgage lending. In 2014 our strategy won't change. We plan to put special emphasis on credit quality remaining conservative in terms of balance sheet expansion and keeping strict credit requirements to our borrowers", commented Alexander Dolgopolov, Chairman of the Management Board of Bank Vozrozhdenie.

Assets before provisions were up by 1.1% compared to the beginning of 2013 and amounted to RUB 224.4 billion as of January 1, 2014. Throughout the year the bank's share of liquid assets stood at a quite high level of 21%. Such balance sheet management approach proved its reliability in the fourth quarter the reported period. At the same time, the share of loans to customers in total assets improved from 71% to 77%. Loan portfolio before provisions increased by 10.3% from the beginning of the year and reached RUB 173.3 billion.

Corporate loans before provisions edged up 4.9% during the year to RUB 130.4 billion as of January 1, 2014. The dynamics of the indicator throughout the year was mixed, while the average portfolio for 2013 made up RUB 129.7 billion versus RUB118.9 billion for 2012 (+9.1%). Some decline in Q4 2013 is attributed to active repayments in the end of the quarter typical for this period. Loans to SMEs still comprise more than half of corporate loans.

Retail loans before provisions elevated to RUB 42.9 billion, up 30.9% for the year, including the securitized portfolio. In December 2013, the bank handled the first stage of the third securitization deal, transferring mortgage loans for RUB 3.4 billion to SPV Closed Joint Stock Company "Mortgage agent Vozrozhdenie 3". In total, mortgages increased by 33.6% in 2013 to RUB 29.8 billion, comprising 70% of retail portfolio.

Capital rose by 6% during the year to RUB 21.6 billion supported by net profit capitalization.

Retail client funds grew by 4% in 2013 to RUB 104.6 billion. The upside was driven by RUB 6 billion inflow of retail deposits for the period. Resources of corporate clients on the current accounts were stable throughout the first three quarters of the year, which ran counter to the historical trend, and only in the fourth quarter shifted to RUB 31.3 billion. To ensure balanced dynamics of assets and liabilities, the bank committed to moderate approach when managing the cost of term deposits. As a result, the volume of more expensive corporate deposits decreased during the twelve months of 2013 by 12.9% to RUB 26.2 billion. Total customer funds remained flat at the level of 2012.

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