Raiffeisen Bank Aval magnifies profit 11x yoy to UAH 904 mln in 9M13

Raiffeisen Bank Aval magnifies profit 11x yoy to UAH 904 mln in 9M13



25 жовтня 2013 года
Конкорд Капитал

Райффайзен Банк Аваль (BAVL)


Raiffeisen Bank Aval (BAVL UK) reported 10.8x yoy growth in its bottom line to UAH 904 mln in 9M13, the bank reported on October 24. Its decrease in net interest income by UAH 212 mln yoy in the period was offset by higher profit from securities sales (+UAH 223 mln yoy), a 29% yoy cut in loan loss provisioning (+UAH 450 mln yoy), cuts in operating costs (+UAH 91 mln yoy) and a 6% yoy increase in net commission income (+UAH 58 mln yoy). The bank’s annualized ROE reached 14.0% in 9M13.



In 3Q13 alone, the bank increased net profit 4.1x yoy to UAH 216 mln and it showed an increase in net interest income for the first time this year (+4% yoy to UAH 1047 mln) on a radical cut in interest costs (-25% yoy and 15% qoq to UAH 446 mln). Such a result is only partially explained by a decline in the bank’s term deposits (-13% yoy) in favor of current accounts (+19% yoy). The bank’s total deposit base increased 3% YTD and 4% yoy to UAH 28.7 bln as of end-September.



Aval’s lending activity was poor in 3Q13 with its gross loan portfolio falling 1% qoq to UAH 26.3 bln (still remaining 1% higher YTD). The bank’s regulatory capital improved 1.4x qoq to UAH 8.4 bln and its end-September CAR reached 20.6%. The bank’s net short ForEx position was UAH 2.9 bln, or 34% of its regulatory capital as of end-September.



Alexander Paraschiy: The key positive is the 3Q interest costs decline, which implies the bank was actively decreasing its deposit rates over the period. Our main concern is with Aval’s low lending activity, with its accelerated decline in interest income by 6% yoy in 3Q13 (after -4% yoy a quarter before) not encouraging. Nevertheless, the bank’s robust 9M13 results and high accumulated provisions suggest it will go on to report solid profitability in the coming periods.

Источник: Конкорд Капитал

Аналитик: Александр Паращий
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