Sale NPF has allowed the Bank to increase profit three times


The net profit of Raiffeisenbank in 2015, according to international standards has increased three times — up to 24.9 billion rubles In 2014, the Bank earned RUR 7.7 billion

The Bank on Tuesday, February 16, reported under international reporting standards. Threefold profit growth was provided mostly by two factors, said the CEO of Raiffeisenbank Sergei Monin. The first is the income received from the sale of NPF “Raiffeisen” in the fourth quarter of 2015, the second lower base due to the write-off of goodwill in 2014. The contribution of the sale of the pension Fund in the profit amounted to RUB 6.2 billion before taxes, said Monin.

At the same time, as said the head of the Bank, even without considering these two factors, the Bank increased its profits last year. Its net interest income grew by 0.5%, net fee and Commission income by 14%.

Last year the Bank reduced the loan portfolio by 6.9%, in retail, the reduction was 13.4%, the portfolio of loans to large businesses fell 1.8%, medium and small businesses by 2.8% and 30.1%, respectively. According to Monina, the dynamics corresponds to a three-year plan to reduce assets by 20%. “Nothing special, we don’t do, the assets are reduced organically,” he says. According to him, in the retail segment decrease was mainly due to the loans that the Bank has ceased to issue. The reduction of assets affected by the sale of the portfolio of far Eastern branches of the Bank.

In June 2015, the Bank officially announced that it is selling the non-state pension Fund “Raiffeisen” BIN shishkhanova and Mikail Gutseriev brothers. Sergey Monin explained then the decision to sell the desire to focus on “the development of its core business, i.e. banking products to corporate and retail customers.” The amount of the transaction were not disclosed.

ZAO “NPF “Raiffeisen” works in Russia since 2004. According to the Bank of Russia, the Fund is in the top 20 by volume of pension savings and reserves. As of may 31, 2015, the assets under management of NPF Raiffeisen amounted to 33.6 billion rubles.