Oschadbank assets surge, profitability improves slightly in 1Q12
25 April 2012
Oschadbank (OSCHAD) released its 1Q12 financials under UAS: net interest income was up 19% yoy while net fees and commissions improved 9%. Strong growth in revenues was partly erased by a 24% yoy increase in operating expenses but pre-impairment profit was 13% yoy higher. The bank’s bottom line improved only marginally to USD 22 mln. Oschabank saw its balance sheet surge 7% qoq in 1Q12 even though its net loan book declined 3% – the bank deployed new resources into government securities and notably its cash increased 43% qoq to nearly USD 1.0 bln (10% of end-1Q12 assets).
Oschadbank 1Q12 financials, UAS, USD mln
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1Q12 yoy
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Net interest income 151 19%
Net fees and commissions 33 9%
Operating expenses -87 24%
Pre-impairment profit 108 13%
Impairment charge for credit losses -40 -48%
Net income 22 41%
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1Q12 qoq yoy
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Assets 9,802 7% 15%
Gross corporate loans 6,657 -2% 33%
Gross retail loans 552 -1% -9%
Loan loss reserve -1,080 3% 40%
Liabilities 7,558 8% 18%
Corporate deposits 1,010 6% -35%
Retail deposits 3,380 7% 30%
Equity 2,244 2% 7%
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Source: Company data
Vitaliy Vavryshchuk: The 1Q12 figures are neutral for the bank, in our view. Following a 31% yoy upsurge in loan book 2011, the trend reversed and loan portfolio contracted 2% qoq, which we take as a positive, enabling bank to keep focus on loan quality. Rapid growth in operating expenses remain a concern but the bank says it’s mainly due to one-offs related to improvement in IT infrastructure. We maintain a positive view on the bank’s liquidity and solvency.
