FUIB increases net interest income 21% yoy, profit 48% yoy in 1H13

SCM-related First Ukrainian International Bank (FUIB, PUMBUZ) reported 48% yoy growth in net income to USD 26.3 mln in 1H13 (based on IFRS). The key items that enabled the bank to increase its bottom line were 21% yoy growth in net interest income to USD 79.7 mln and a 56% yoy increase in net commission income to USD 25.3 mln. The increase in key top line items was much better than operating costs growth (+6% yoy to USD 57.2 mln), enabling FUIB to improve its Cost/Income ratio to 49% in 1H13 (vs. 60% in 1H12). An increase in its loan impairment allowance by 92% yoy (to USD 25.1 mln) only slightly spoiled the bank’s bottom line.

The bank was able to increase its total assets 20% yoy (or USD 0.64 bln yoy) to USD 3.91 bln as of end-1H13, mostly by raising its balance with the NBU (3.4x yoy), accounts with banks (+36% yoy) and securities portfolio (+38% yoy). The bank’s loan portfolio increased just 7% yoy and 3% YTD to USD 2.30 bln. On its liabilities side, FUIB increased customer accounts 19% yoy to USD 2.49 bln and bank deposits 5x yoy to USD 0.31 bln as of end-1H13.