Net profit earned by financial group Life under IFRS in 2012 dropped 12% to Rub 2.2 bln.
As Life Financial Group said in a press release, the primary reason behind a drop in net profit was a 64.6% surge in expenses incurred to form provisions against the devaluation of the credit portfolio to Rub 4.7 bln. “The more conservative reserve formation policy aims to create additional guarantees for the bank’s stability amid heavy volatility on the financial markets," the group said in a press release.
The group’s equity capital jumped from Rub 15 bln as of December 31, 2012 to Rub 17.4 bln as of December 31, 2013. The group’s capital adequacy ratio grew from 10.3% to 12.2%, while the tier 1 capital adequacy ratio rose from 7.8% to 9.5%.
The group’s net interest income climbed 16.9% to nearly Rub 15 bln, while net commission income surged 30.6% to Rub 4.8 bln. As the group specified, these indicators improved on a jump in the processing of payments and settlements, cash and bank card operations.
The financial group’s assets slipped 3.95% y-
The group cut lending before reserves to Rub 67.7 bln as of December 31, 2013. Retail loans amounted to Rub 42.9 bln, SME loans came to Rub 4.2 bln and corporate loans totaled Rub 13.6 bln.
“Putting a brake on the pace of corporate lending was in line with the group’s strategy geared towards easing capital pressure and diversifying risks by expanding sources of non-interest income," Life Financial Group emphasized in the press release.
