PRIME-TASS. KIT Finance, which is being rehabilitated, boosted net profit drafted to the International Financial Reporting Standards (IFRS) by 2.3x to Rub 325.8 mln in 2011, the bank said in its financial statement, Prime-TASS wired.
The lending institution’s net interest income totaled Rub 2.2 bln, up 12.4% y-o-y. Expenses incurred to form reserves jumped 15% to Rub 1.35 bln in 2011.
The bank managed to keep administrative and other operating costs at the 2010 level (roughly Rub 2.2 bln).
Last year the bank sold a portfolio of mortgage loans with the book value of Rub 32 bln to VTB Bank’s retail subsidiary, VTB 24, and generated income of Rub 613.8 mln. In addition, the bank recorded Rub 1.2 bln as income from the sale of investment securities.
The bank’s interest margin came in at 27.4% in 2011. “Interest margin improved as the bank drew funds at below-market rates," the bank said in the financial statement.
In 2011 KIT Finance’s assets slid nearly 36% to Rub 73.8 bln.
Last year KIT Finance’s credit portfolio before reserves against devaluation declined 80% to Rub 42.4 bln.
As of year-end 2011 34% of the bank’s credits and advances to customers fell to loans issued to associated parties to purchase non-core assets. Reserves of Rub 6.08 bln were formed under these credits.
