UBRD posts growth in first half of 2014 despite sluggish banking sector
URBD's equity capital increased by 8.6 percent in the first half of the year to reach $520 million, due largely to the financial support received from shareholders and a subordinated loan in the international market. The added cash allowed URBD to increase its capital adequacy ratio to 11 percent as of July 1.
Moreover, URBD's net profits in the second quarter of the year amounted to $21 million, with total assets reaching nearly $6 billion--the increase of assets represents a 28.1 percent growth over the same period in 2013. Meanwhile, the bank's corporate loan portfolio grew 17.7 percent during the first half of the year to reach a total value of $570 million.
However, the bank's loan portfolio of private clients decreased 2.9 percent during the period of Jan. 1 to July 1 to arrive at $1.69 billion.
URBD's base liabilities as of July 1 reached $5.66 billion, an increase of 29.6 percent over the previous year. Corporate deposits for URBD clients reached $2.36 billion thus far in 2013, representing nine percent growth in the bank's available cash.
"The results demonstrate the first half: with the overall serious slowdown in the banking sector URBD confidently moving forward," URBD President Anton Solovyov said. "External events require more work on the reliability of the bank. We chose a conservative business management model that focuses on diversification of passive base, improving the quality of the loan portfolio, and it has shown its effectiveness. At the same time, we worked on improving the quality of products and services at URBD with emphasis on simple technological services. The result of the work is obvious--for six months URBD significantly increased its customer base, which in the first place is an indication of customer confidence."
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