Alfa-Bank announced strong results in the first half of 2006
12 Oct 2006
Alfa Banking Group, which embodies OJSC “Alfa-Bank” and its subsidiaries, announced today solid results for the first half of 2006, based on audited IFRS figures. Net profit after tax of the Group climbed 31.5% to U. S. $114.8 million from U. S. $87.3 million in the first half of 2005. Total assets grew by 25.4% to U. S. $12.3 billion at the end of June 2006 from U. S. $9.8 billion at the end of 2005. The key financial ratios, such as annualized after tax return on equity and cost to income, improved to 24.2% and 52.4% at June 2006 from 23.1% and 52.7% at the end of December 2005 respectively.
Alfa Banking Group’s total loan portfolio growth (before provisions) grew 37.9% to U. S. $8.2 billion, compared to U. S. $6.0 billion as at 31 December 2005. Outstanding results have been achieved in the Group’s corporate loan portfolio, which showed significantly higher growth than the market. By the end of June 2006, corporate loans (before provisions) had increased by 35.0% to U. S. $7.9 billion, up from U. S. $5.8 billion at the end of 2005.
Strong growth in the first half of 2006 by all the retail banking divisions pushed Alfa Banking Group’s retail loan portfolio (before provisions) to U. S. $364.4 million, up from just U. S. $145 million as at 31 December 2005. By the end of June 2006, the total number of retail customers grew by almost 300,000 to number approximately 1.8 million.
Funds raised by Alfa Banking Group from individuals and corporate clients increased by 20.1% to U. S. $6.5 billion, compared to US $5.5 billion as at 31 December 2005.
Following the strategy of increasing diversification of funding sources, Alfa-Banking Group has accomplished a number of successful deals on the international debt capital markets. In March 2006, Alfa Banking Group successfully closed its debut U. S. $350 million transaction for the securitization of diversified payment rights (mainly international swift payments). This transaction marked the first ever securitization of diversified payment rights by a Russian institution and was also Alfa Banking Group’s first 144A offering targeting US investors. In May 2006, Alfa-Bank entered into a U. S. $438 million trade-related syndicated loan with a 364-day term and an option to extend for a second year. The deal, which was subscribed by leading European and international banks, was the largest syndicated loan ever for a Russian private bank. At the end of the reporting period Alfa Banking Group’s international borrowings totaled U. S. $2.0 billion or 17.4% of total liabilities.
The total equity of the Group in the reporting period increased by 21.6% to U. S. $1.0 billion, up from U. S. $855.8 million as at 31 December 2005.
Alfa-Banking Group’s IFRS figures have been audited by PriceWaterhouseCoopers.
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