Public Joint Stock Company “State Savings Bank of Ukraine” (Oschadbank) published its 1H2012 IFRS Interim Condensed Consolidated Financial Information audited by Deloitte & Touche.
Oschadbank posted a net profit of UAH 639.4 mln for 6m 2012, versus UAH 677.4 mln for the same period of 2011, with annualized return on average assets (ROAA) reaching 1.7%, compared to 2.1% in 1H2011.
Net interest income before provisions rose by 18.7% YoY and reached UAH 2.5 bn during 6m 2012, bringing Bank’s annualized net interest margin to 7.1% (7.4% in 1H2011). Off-balance, payment card, settlement and cash operations continued to be key drivers of the net fee and commission income, which increased by 8% YoY and totalled UAH 0.5bn.
Operating expenses during 6m 2012 were mainly driven by staff and administrative costs and amounted to UAH 1.4 bn, representing 21% YoY growth and reflecting inter alia Bank’s business expansion as well as continued IT and technology development. This resulted in the cost-to-income ratio of 47% (43% in 1H2011).
Oschadbank’s assets expanded by 9.3% YTD to UAH 80.7bn, confidently putting the Bank on the second place by assets in the sector.
Having added 2% YTD, gross loan book totaled UAH 60.0 bn as at July 01, 2012, anticipating further growth in the second half of the year. Bank’s exposure to Naftogaz equalled to 33.9% of bank’s gross loan book as at July 01, 2012, down from 34.6% in 2011, 51.0% in 2010 and 58.1% in 2009.
NPLs remained flat (7.1% in 1H2012 vs. 7.1% in 2011) and were duly covered by loan loss provisions (15.6% in 1H2012 vs. 14.2% in 2011), bringing coverage ratio to a high 220%. Both ratios remain among the best in the banking system.
Customer deposits continued to grow during 6m 2012 at a rate outperforming the market and amounted to UAH 37.0 bn, up by 13.5% YTD. Retail deposits rose by 16.3% YTD to UAH 29.4 bn, while corporate deposits were up by 3.7% YTD and reached UAH 7.6 bn. Gross loans-to-deposits ratio adjusted for NBU’s refinancing amounted to 122% as at July 01, 2012 (vs. 138% as at year end 2011).
Total equity increased during 6m 2012 by 2.12% to UAH 17.7 bn, with capital adequacy ratio of 29.1% and Tier 1 ratio of 25.9% (30.3% and 26.2% as at year end 2011, respectively).