Financial results

In the 1H2010 Rosevrobank managed to increase loan portfolio by 21% to USD 852 million, customer accounts also rose by 4% to USD 1273 million, Rosevrobank's equity increased and amounted USD 265 million. Assuming weak demand for loans from corporate customers we continued to increase securities portfolio up to nearly USD 452 million however this portfolio consists of short-term high-liquid securities (promissory notes of Top 70 Russian banks (71% of portfolio), state bonds), which can be easily transferred into cash should the situation with corporate lending improves.

Rosevrobank has significant exposure to the Central Bank of Russia (ratio “Single Economic Group Exposure/Equity” is 69.3%). As of 30 June 2010 placements with the Central Bank included: short-term interbank loans in the amount RUB thousand 4.600.573 and tenor up to 1 month (42.9% of equity), main settlement correspondent account in Russian Rubles in the amount RUB thousand 2.203.289 (20.5% of equity), mandatory Reserve Fund (MRF) in the amount RUB thousand 317.303 (3% of equity), and investments into bonds of the Central Bank in the amount RUB thousand 310.563 (2.9% of equity).

Loan portfolio was increased mainly because of loans for corporate customers. As of 30 June 2010 10 largest borrowers amounted 19.6% of the total loan portfolio and 20 largest borrowers comprised 30.3% of the total loan portfolio. As of 30 June 2010 volume of non-performing loans (>90 days) is less than 6% from the total loan portfolio while provision for loan impairment is about 12%.

Net profit in 1H2010 amounted RUB 410 million (USD 13 million) and increased by 74% in comparison with 1H2009. During crisis period 2009-2010 volume of customer accounts in Rosevrobank increased by 34%.