Public Joint Stock Company “State Savings Bank of Ukraine” (Oschadbank) published its audited 1H2012 IFRS Interim Condensed Consolidated Financial Information.

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).