EN  |  RU

   
   

NOMOS Bank announces audited full year financial results for 2010; continues its track record of sustainable profitability and growth

21.03.2011

Key financial highlights for 2010:

  • Growth in total assets: up 91.3% to RUB 530.2 billion; 34.8% through organic growth and 56.5% due to the acquisition of Bank of Khanty-Mansiysk («BKM»)
  • High profitability achieved: combined RoAE of 21.1% 1, combined net profit RUB 10.4 billion
  • Continued focus on cost efficiency: combined cost/income ratio at a low of 43.0%
  • Strong capital position: Tier 1 ratio of 10.6% and CAR of 15.6%
  • Low risk profile: NPL ratio improved to 2.4% and NPL coverage to 182.3%

The Supervisory Board of NOMOS Bank on 18 March 2010 approved the Consolidated Financial Statements of NOMOS Bank and its subsidiaries in accordance with for the year ended 31 December 2010.

Following the acquisition of 51.3% of the Bank of Khanty-Mansiysky Group (BKM) that was completed on 16 December 2010, the total assets of NOMOS Bank reached RUB 530.2 billion and total equity was RUB 57.9 billion as at 31 December 2010. From 2011, the results of BKM will be fully consolidated in the financial statements of NOMOS. If the acquisition of BKM had taken place as of the 1st of January 2010, net profit of NOMOS for 2010 would have been RUB 10.4 billion. Net profit as per the 2010 financial statements was RUB 7.4 billion and represents the profit of NOMOS Bank without BKM.

NOMOS in 2010: balanced organic and non-organic growth, strong revenue generation and focus on cost efficiency.

For 2010 the Group’s total assets reached RUB 530.2 billion and increased by 91.3% compared to 31 December 2009 confirming both the organic and acquisition growth capabilities of the Group. The structure of consolidated assets changed slightly with the loan portfolio representing 64.0% of total assets (31 December 2009: 58.7%) and reflects the successful resumption of customer lending which was the key driver behind the 35% organic asset growth over the year.

The Group’s loan portfolio nearly doubled from 2009, increasing to RUB 339.3 billion as at 31 December 2010. This positive development was mainly due to the substantial increase in corporate and small business portfolios, up 87.9% and 258.6% respectively, compared with the end of 2009. The corporate banking segment with its focus on medium-sized companies remains the largest segment of NOMOS group representing 73.3% 2 of the total loan portfolio.

The Group is committed to a prudent credit risk management policy which allows it to achieve a low share of non-performing loans (NPLs: loans overdue more than 90 days). As at 31 December 2010, the NPL ratio improved to 2.4% compared to 6.2% as at 31 December 2009, and the ratio of loan loss provision to gross loans improved to 4.4% from 9.5% as at 31 December 2009. NOMOS maintains a very conservative provision coverage of non-performing loans of 182.3%.

The Group’s total liabilities as at 31 December 2010 amounted to RUB 472.3 billion and increased 96.4% compared to the beginning of 2010. NOMOS Bank has a balanced and diversified funding structure with customer accounts comprising 66.4% of total liabilities (31 December 2009: 55.8%).

During the year, the Group continued to attract funds on deposits and current accounts representing the most stable and diversified source of funding. As of 31 December 2010 the Group’s customer accounts amounted to RUB 313.4 billion, a 133.5% increase compared with 31 December 2009. Retail and small business accounts comprised 48.8%2 of the total deposit base. The net loans to deposits ratio improved to 108.3% as at 31 December 2010 from 121.2% at the end of 2009 due to strong deposit growth during the year.

At 31 December 2010, the Group’s total equity amounted to RUB 57.9 billion, including RUB 11.0 billion of non-controlling interest due to the acquisition of BKM. The Tier 1 ratio under the Basel Capital Accord (Basel I) was 10.6% and the total capital adequacy ratio was 15.6% as of 31 December 2010.

In 2010 NOMOS continued its focus on profitability and creating shareholder value. The Group delivered combined net profit of RUB 10.4 billion (RUB 7.4 billion excluding BKM), an increase of 141.9% compared to 2009.

Return on average equity (RoAE) was a strong 18.1% (RoAE to NOMOS equity holders would have reached 21.2% if the acquisition of BKM had taken place as of 1 January 2010), compared to 12.2% a year earlier.

Return on average assets (RoAA) was 2.32% on a combined basis compared to 1.6% for 2009.

Combined operating income for 2010 reached RUB 26.2 billion (RUB 17.3 billion excluding BKM), an increase of 103.1% compared to the corresponding period in 2009.

Combined operating income before provisions for impairment for 2010 was RUB 30.8 billion (RUB 21.2 billion excluding BKM) an increase of 22.5% compared to 2009.

Net interest income and fee and commissions are the key drivers of the Group’s revenue generation, representing 66.3% and 12.5% of Group’s revenue respectively. Net interest margin was 5.3% on a combined basis, compared to 7.7% in 2009, reflecting the major decrease in interest rates in the market in 1H 2010.

In 2010, 47.0% of the combined Group’s revenue was generated by the corporate business segment and 29.4% by small and retail business2.

The Group demonstrated high levels of operating efficiency in 2010 with operating expenses to operating income before provision for impairment (Cost to income ratio) of 43.0% (2009: 29.2%) on a combined basis which compares favorably to our peers.

Company profile

NOMOS is currently the 8th largest banking group in Russia by assets and the 2nd largest privately-owned Russian universal banking group with total assets of RUB 530.2 billion and equity of RUB 57.9 billion under audited IFRS accounts for 2010. NOMOS has the 9th largest branch network in Russia with 300 offices in economically important regions of the Russian Federation, with the majority of its business concentrated in Moscow, St Petersburg and the Tyumen (including Khanty-Mansiysk autonomous district), Novosibirsk and Khabarovsk regions. NOMOS provides a full range of banking services to corporate, small business and retail clients. As at 31 December 2010, NOMOS served approximately 8,900 corporate customers, 64,000 small business clients and almost 1.4m retail customers, including private banking clients.


1Data as if the acquisition of BKM took place on 1 January 2010. RoAE and net income presented in the 2010 IFRS accounts are 18.1% and RUB 7.4 billion, reflecting the results of NOMOS without BKM.

2Calculated as the share of total loans to customers for business segments excluding the Treasury and asset and liability management unit and unallocated balances.

Presentation of IFRS 2010 results  (pdf, 621.1 КБ)