09.09.2011 16:24

Financial results H1 2011: Operating income increases 19% to €208 million



  • Net profit at €46 million
  • Total capital ratio at 13.1 %
  • Stress test results confirm strong financial position
  • No sovereign risk exposure to Greece nor to other PIIGS countries

Credit Europe Bank’s customer loan portfolio continued increasing - though in more moderate pace than the previous year - to €5.93 billion at the end of June 2011. The bank’s net operating income increased 19%, from €175 million in the first six months of 2010 to €208 million in the same period of 2011. Due to investments in its distribution networks in Russia and Turkey, the net profit amounted to €46 million compared to a net profit of €49 million in the first six months of 2010.

Mr. Murat Basbay, CEO of Credit Europe Bank NV: ”We are satisfied with the result over the first half year of 2011 given the economic slowdown in the Eurozone. We diligently manage our risk by maintaining a high level of liquidity while avoiding sovereign risk exposure to Portugal, Ireland, Italy, Greece and Spain. Our strategy is to focus on growth in trade finance and retail banking operations. In Russia we have opened 15 new branches so far this year and in Turkey 2. The integration of the newly acquired bank in Turkey -rebranded as Fibabanka - is well underway and we managed to return the bank to profit already in the first quarter of 2011.”

Operational highlights:

Corporate Banking:

  • The bank completed a number of long term large-size, well collateralized structured finance transactions in Russia in close cooperation with other international banks.
  • In Turkey, corporate banking activities were intensified. The bank also expanded its focus on the tourism sector.

 

Retail Banking:

  • In Romania, the bank kept its market leading position with its CardAvantaj credit card. In Russia, where the bank operates co-branded card programs with international retailers such as IKEA, Metro, Mega and Auchan, the volume of credit card turnover almost doubled year-on-year.
  • In Russia, the bank opened 15 new branches, installed more than 100 ATM’s so far this year and started internet banking services for retail clients. The bank also started money transfers through its 380 Russian ATM’s in cooperation with Western Union.
  • In Russia, the bank added a partnership program with the largest national car manufacturer GAZ to its existing partnerships programs with Hyundai, KIA, UZ-Daewoo, Cherry and Chrysler. The bank’s car loans portfolio increased 60% compared to the end of 2010.
  • Following the cooperation agreement signed with the European Bank for Reconstruction and Development in 2010, the amount of loans issued to Russian small and medium-sized
  • In Ukraine the bank opened 6 new representative offices.
  • In Turkey the total number of branches increased to 20 – after the opening of 2 new branches in May and June.

Capital and funding:

  • Credit Europe Bank’s subsidiary in Russia placed a 4 billion Rubles (€100 million) bond with three year maturity. Additionally, in April, the subsidiary in Russia placed a further 5 billion Rubles (€125 million) bond listed on the Russian exchange.
  • In July 2011 Moody’s Investors Service changed its outlook for Credit Europe Bank NV to positive from negative.
  • The European stress test that was voluntarily applied by the bank resulted in a theoretical total capital ratio of 11.8% after the two year stress scenario.

Credit Europe Bank. A reliable bank working for you

More than three million people around the world entrust their financial affairs to Credit Europe Bank. The bank offers pure retail banking and SME products as well as private banking through more than 200 branches and over 11,000 sales points across nine European countries. It also offers trade finance, and corporate banking services through its network in these countries, as well as in China and the United Arab Emirates.

For more information, please visit www.crediteuropebank.com

 

 

 

Balance Sheet (x million)

 

 

30/06/2011

 

 

31/12/2010

 

 

 

 

 

 

 

 

 

 

 

Cash and balances at central banks

 

1,033

 

1,235

 

Financial assets at FVPL

 

94

 

143

 

Financial investments

 

1,131

 

1,414

 

Loans and receivables – banks

 

853

 

786

 

Loans and receivables – customers

 

5,927

 

5,854

 

Derivative financial instruments

 

348

 

210

 

Fixed assets

 

157

 

119

 

Other assets

 

233

 

242

 

 

 

 

 

 

 

 

 

 

Total Assets

 

9,776

 

10,003

 

 

 

 

 

 

 

 

 

 

Due to banks

 

1,040

 

1,114

 

Customer deposits

 

6,777

 

7,185

 

Derivative financial instruments

 

384

 

313

 

Issued debt securities

 

437

 

301

 

Other liabilities

 

121

 

121

 

Subordinated debt

 

250

 

236

 

Total liabilities 

 

9,009

 

9,270

 

Equity

 

767

 

733

 

Total equity and liabilities

 

9,776

 

10,003

 

 

 

 

 

 

 

 

 

 

Total capital ratio

 

13.1%

13.3%

Tier I ratio

 

11.0%

 

 11.4%

 

 

 

 

 


 

 

 

Income statement (x million)

 

 

H1 2011

 

 

H1 2010

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

175

 

169

 

Net commissions

 

36

 

38

 

Trading income

 

10

 

6

 

Results from financial transactions

 

8

 

14

 

Other operating income

 

17

 

9

 

Total income

 

246

 

236

 

Credit loss charges

 

(38)

 

(62)

 

Net operating income

 

208

 

174

 

Personnel expenses

 

(83)

 

(63)

 

General and administrative expenses

 

(44)

 

(38)

 

Depreciation and amortization

 

(13)

 

(7)

 

Other operating expenses

 

(5)

 

(3)

 

Other impairment losses

 

(2)

 

(1)

 

Total operating expenses

 

(147)

 

(112)

 

Share of profit of associates                                 

 

-

 

1

 

Profit before tax

 

61

 

63

 

 

 

 

 

 

 

 

 

 

Income tax

 

(15)

 

(14)

 

 

 

 

 

 

 

 

 

 

Net profit

 

46

 

49