Vozrozhdenie Bank : disclosed preliminary RAS results for 2016

Vozrozhdenie Bank summarised preliminary results under RAS for 2016.

During the year gross loans grew by 9% to Rub 196 billion. The main driver of that growth was retail loans' increase of 21% to Rub 64 billion (including securitised mortgages). Mortgage lending remained the most dynamic segment of the retail loan book. During the last 12 months the Bank provided its clients with more than 7.5 thousand of mortgages for Rub 19.5 billion. The volume of new mortgages issued to customers during the reporting period grew by 76% versus 2015. Since the beginning of the year corporate loan portfolio increased by 4% to Rub 132 billion.

As the markets calmed down the Bank didn't accumulate an excessive liquidity cushion ahead of the New Year holidays. Thus the highly liquid assets were Rub 20 billion as of the beginning of 2017, 37% less than of the beginning of 2016 including a cash drop by 21% YoY to Rub 9 billion. During the same period securities portfolio reduced by 8% to Rub 19 billion.

Total customer funds increased by 18% YoY to Rub 204 billion. Retail funds, the key funding source for the Bank, added 9% during the year to Rub 139 billion as of the end of the reporting period. Resources raised from corporate customers grew by 44% YoY and totaled Rub 65 billion as of January 1, 2017.

The Bank's net financial result for 2016 was Rub 1.2 billion (before recording the events after the reporting date) comparing to the loss of Rub 4.7 billion for 2015. Final financial result of the Bank will be disclosed in the audited annual accounting (financial) RAS report in March, 2017.

The Bank's success was recognised by a number of awards from the financial profession. At the turn of the year Vozrozhdenie Bank took a National banking award 'For contribution to the development of the regional economy' by the Association of Russian Banks (ARB). The association marked the Bank's deep involvement in the projects aimed at the development of the economy and infrastructure of the Moscow Region. In addition, during 2016 the Bank was honoured as 'The best bank of the region' by the 'Banking business' journal and 'The Bank of the year in mortgage lending' by the 'Financial elite of Russia' awards.