FUIB IFRS-based profit falls 38% yoy in 2012

First Ukrainian International Bank (PUMBUZ) reported a 38% yoy decline in 2012 net income under IFRS to USD 34.7 mln, a better result than reported earlier under local accounting standards (USD 33.9 mln).

Alexander Paraschiy: The deterioration was caused by escalated operating costs (+22% yoy) and higher loan loss provisions (up 4.5x yoy to USD 36 mln), against a backdrop of smaller pre-provisioning operating income growth (+18% yoy). FUIB managed to increase its net interest income 17% yoy to USD 144.0 mln as interest income (+14% yoy) grew faster than expenses (+12% yoy). Its fees and commission income improved 18% yoy to USD 38.5 mln.

The bank’s balance sheet declined 7% yoy (USD 274 mln) to USD 3,347 mln, mainly due to corporate call deposits being halved (by USD 556 mln yoy), while other types of deposits increased by USD 228 mln. Despite this, FIUB increased its lending portfolio 9% yoy (USD 181 mln) by partially redirecting lending to other banks into new customer loans. The bank is planning to stay on the same lending growth path in 2013.

In general, there were no surprises in the bank’s 2012 IFRS accounting as compared to the figures presented under local accounting standards (refer to our Jan. 25 news on the bank).