FUIB reports positive 2Q12 financials
23 July 2012
First Ukrainian International Bank (PUMBUZ) posted strong growth in key revenues in 2Q12: net income added 9% yoy, and net fees and commissions increased 15% yoy. However, the bank’s total revenues were slightly down yoy due to losses related to the revaluation of securities and foreign currencies. Growth in FUIB’s operating expenses slowed to 15% yoy in 2Q12 from 95% yoy in 1Q12. The spike in costs is likely related to business restructuring following merger with Dongorbank in mid-2011. Provisions declined 23% yoy in 2Q12 as the bank brought its LLR to 17.8%, which implies an NPL coverage ratio of 97%. The lender’s assets declined 1% qoq but net loan book was up 3% qoq. Government T-bills accounted for 8.5% of total assets.
FUIB’s 2Q12 and 1H12 results, USD mln
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1H12 yoy 2Q12 qoq yoy
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Net interest income 97 13% 50 6% 9%
Net fees and commissions 21 14% 11 13% 15%
Revenues 120 8% 58 -6% -3%
Operating expenses -73 51% -29 -32% 15%
Pre-impairment profit 47 -25% 29 57% -16%
Impairment charge for credit losses -26 -42% -14 21% -23%
Net income 16 24% 11 130% -4%
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1H12 qoq
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Assets 3,936 -1%
Gross corporate loans 1,849 2%
Gross retail loans 609 -10%
Loan loss reserve -436 -17%
Liabilities 3,424 -1%
Corporate deposits 890 1%
Retail deposits 1,193 5%
Equity 512 0%
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Source: Company data
Olena Zuikova: We assess FUIB’s 2Q12 results as broadly positive – the bank clearly demonstrated its ability to contain merger-related growth in operating expenses. With NPLs provisioned almost in full, the bank should continue cutting its loan impairment charges further. FUIB’s liquidity cushion is thick enough (cash equivalents and T-bills combined make up 21% of total assets) and its solvency is strong with end-1H12 NBU CAR totaling 15.5% (vs. the minimum of 10%).
