MDM bank posts 9M 2010 net income of 1.54 billion roubles

Russia’s MDM bank has posted a 9M 2010 net income of 1.54 billion roubles under IFRS.

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The net profit compares with a 6.142 billion rouble net loss over the same period 2009, with assets increasing 4.8% over the period to 383.5 billion roubles, with net interest income reaching 14.25 billion roubles, and net fee and commission income reaching2.37 billion roubles.

MDM Bank CEO, Sergey Timofeev noted the improving loan impairment environment.

“An upward trend in our consolidated statements and positive financial result demonstrate successful implementation of the Bank’s long-term strategy. We decreased the share of impaired loans from 17.6% at end-June 2010 to 15.8% at end-September 2010 as well as cautiously increased our customer loans by 4.6% in the third quarter, annualized.”

Konstantin Rogov, MDM Bank’s CFO, added that decreasing funding costs underpinned a positive 2011 outlook.

“We are expecting a decrease in our funding costs and either to maintain or to increase our net interest margin which stood at 5.9% during this period, annualized. We believe mild credit costs and expected business volumes growth are a strong basis for us to achieve solid results in 2011.”