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Vozrozhdenie Bank's H107 IAS results underscore that the bank maintains robust growth and development pace. Overall, the bank's financials are in line with our expectations and we do not project these results to produce any tangible impact on the bank's stock valuations.
On August 9, Vozrozhdenie Bank released H107 IAS consolidated financials. The bank's net profit amounted to $26.1 mln, ROE slightly grew to top 20% and total assets grew 26% YTD to $3,596 mln.
Vozrozhdenie Bank's H107 headline financial indicators
| | July 01, 2006 ($ mln) | July 01, 2007 ($ mln) | Chng (%) |
| Net interest income |
53.1 |
95.0 |
78.9% |
| Operating revenue |
83.1 |
134.0 |
61.3% |
| Net profit |
12.6 |
26.1 |
107.1% |
| Total assets |
2,705.5* |
3,596.0 |
32.9% |
| Equity |
203.0* |
412.8 |
103.3% |
* - data as of January 1, 2007
Source: Company data
According to the bank's official spokespersons, “ongoing rapid growth of business is based on balanced development of its corporate and consumer segments”. The amount of consumer lending more than doubled y-o-y. The main strategic trend is a focus on development of mortgage lending instruments which account for more than 50% of all credits to households. According to our estimates, precisely the mortgage segment could post the most impressive gains in the coming years.
Overall, the bank's financials are in line with our expectations. The bank maintained robust asset growth and ROE remained stable at 19-20%. According to our forecasts, in H207, the bank will continue to invest attracted capital which could push up FY07 net profit to $60 mln. Although upbeat trends in the bank's operations confirmed, we still view the bank as expensive. Our fair price of Vozrozhdenie Bank is $48.8 per common share and $28.9 per preferred share. Upside potential is 20% and 9%, respectively.
Vladimir Sergievskiy
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Vozrozhdenie Bank
Capitalization: $223 870 353,18
Common shares:
Price: $10,57
Delta week: -8,6%
Delta month: -14,0%
Delta year: -83,8%
Preferred shares:
Price: $3,52
Delta week: -8,2%
Delta month: -6,1%
Delta year: -89,4%
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0.234
30.89
