Raiffeisen Aval profit improves 10% in 2012
1 February 2013
Raiffeisen Bank Aval (BAVL UK) reported a 10% increase in its bottom line (by local accounting standards) to UAH 34 mln in 2012. Its profit before tax advanced 42% yoy to UAH 242 mln, mainly thanks to a UAH 700 mln (28% yoy) decline in loan loss provisioning.
The bank’s total liabilities and equity fell 7% yoy to UAH 47.7 bln in 2012, driven mainly by a decline in liabilities with other banks (down UAH 3.8 bln, or 28% yoy). The bank’s deposit base inched up 1% yoy to UAH 27.8 bln. On the asset side, Aval’s outstanding loans fell UAH 4.3 mln (net) while its cash balance improved UAH 2.6 bln to UAH 9.3 bln. The bank remained safely capitalized with CAR (by NBU) at 18.8% as of end-2012.
Its decreased loan portfolio set interest income declining 6% yoy, while higher funding rates increased interest costs 2% yoy, thereby narrowing net interest income by 11% yoy to UAH 4.1 bln. The bank’s operating costs advanced 12% yoy thus worsening the cost/income ratio to 63% in 2012 (vs. 54% a year before).
