Russia's Alfa Bank Makes Record US $85 Million Profits in 2001 and Announces US $56 Million Share Capital Injection
17 Apr 2002
Assets at year-end totalled US $2.7 billion, compared to US $1.9 billion at the end of December 2000. Shareholder equity was US $278 million, up from US $125 million in 2000. In addition to the profit for the year, shareholders' equity was further strengthened by an equity injection of US $56.4 million. "Alfa Bank's performance in 2001 continues the trend of strong underlying growth in our business," says Alfa Bank's CEO Alex Knaster. "The 2001 profit figure does not fully reflect the tremendous growth of over 50 per cent in virtually every sector of the banking business. In 2001 we spent over US $30 million on information technology and new product development, which will only yield results starting in 2003. "Rising confidence in the Bank has resulted in a sharp increase in the level of deposits, and these funds have been used to lend to the real sector, enabling us to increase our net interest income more than four times from US $27 million in 2000 to US $111 million in 2001." The loan book increased to US $1.5 billion from US $950 million in 2000 and deposits from customers to US $1.9 billion from US $1.2 billion. Net revenues were US $264 million, compared to US $164 million in 2000. A key element in this net revenue figure, in addition to the growth in net interest income, was the growth in net fee and commission income, which rose 50% from US $50 million in 2000 to US $75 million in 2001.
Founded in 1990, Alfa Bank has more than 80 branches across Russia and fully licensed banking subsidiaries in Ukraine, Kazakhstan, and the Netherlands. The Bank is Russia's largest private bank and provides a full range of banking services - commercial banking, investment banking, asset management, and insurance. The Bank's fast growing brokerage business has a FSA authorised arm in London and a NASD regulated operation in New York. Inside Russia, Alfa Bank is a leader in mergers and acquisitions and debt capital markets and is one of the biggest issuers of banking cards. The Bank also runs the country's largest mutual fund. Alfa Bank's accounts are prepared in accordance with International Accounting Standards and have been audited by PriceWaterhouseCoopers since 1993.
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