Bank Vozrozhdenie posts FY 2010 net income of 581 million roubles

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Russian bank, Bank Vozrozhdenie, has posted a FY 2010 net income of 581 million roubles under IFRS.

The net result is well down from the FY 2009 net income of 1.217 billion roubles, despite a 14% year on year increase in assets to 166 billion roubles, with the loan portfolio up by 22% year on year to 20.6 billion roubles, customer accounts up 15% year on year to 130 billion roubles, but net interest income down 34% year on year to 5.5 billion roubles.Bank Vozrozhdenie said its Non-performing ratio increased over the year to 10.5%.

Dmitry Orlov, Chairman of the Management Board was upbeat about the results noting the competitive impact of the state backed banks on the entire banking sector.

“Over 2010 banks have been recovering their business after the crisis. Generally banking system managed to address these challenges, though recovery rates might have been better. Competition landscape has changed significantly — pressure from state-owned banks was felt throughout the whole year, private banks had to operate on low margins. Despite different weight category we successfully navigated through competitive pressure and even expanded our share on core markets.”