Raiffeisen Bank Aval 2006 Net Profits Increase By 17.6 Times

Raiffeisen Bank Aval (BAVL: BUY) increased its net profits by 17.6 times to USD 67 mln in 2006. The bank’s total assets increased by 44% yoy to USD 5.5 bln. Additionally BAVL’s loan portfolio reached USD 4.3 bln (up 71% yoy) of which retail clients accounted for USD 2 bln, a two-fold increase from 2005, and corporate clients made up USD 4.2 bln, an increase of nearly 34% yoy.  BAVL is Ukraine’s 2th largest bank in terms of assets.  Alexander Viktorov: Though Bank Aval’s balance sheet expansion was close to our forecasts, the bank’s full year earnings are quite a bit lower than our USD 88 mln estimate. Over the first nine months the bank posted net profits of USD 63 mln. The figures the bank reported are based on national accounting standards, while IFRS numbers generally show higher profits.  We remain positive about the bank and are awaiting more detailed information.