Summary of Balance sheet and P&L (US$ mln):
|September 30 2004||December 31 2003|
|Loans and advances to customers, gross||8,171||5,227|
|9M 2004||9M 2003|
|Net interest income||334||205|
|Net fee and commission income||74||47|
JSC Vneshtorgbank presents reviewed IFRS consolidated financial statements for 9M 2004 that reflect VTB Group`s strategy of overall organic growth, commercial and retail banking services expansion, investment banking developing and improving of corporate governance and management information system.
During the first 9 month 2004 period VTB showed healthy growth in different business segments:
* Rapid asset base growth to US$ 14 033 million as of September 30, 2004 from US$ 11 228 million as of December 31, 2003;
* Net interest income increase to US$ 334 million (by 62.9% as compared to the same period of 2003);
* Net fee and commission income growth to US$ 74 million (by 57.5% as compared to the same period of 2003);
* Gross commercial loan portfolio growth to US$ 8 171 million as of September 30, 2004 from US$ 5 227 million as of December 31, 2003;
* Diversification of funding base for the period since January 1, 2004 to September 30, 2004:
- 3 Eurobond issues with maturity from 1 to 3 years for the totalount of US$ 875 million,
- Syndicated loan in theount of US$ 275 million.
Healthy growth of net interest income and net fee and commission income was driven by successful implementation of VTB`s strategy to develop corporate and investment banking.
Gradually developing its lending activities, VTB increased its customer gross loan portfolio by 56.3 % to US$ 8 171 million as of September 30, 2004 in comparison with US$ 5 227 million as of December 31, 2003. Meanwhile, VTB concentrates its efforts on the quality of the portfolio. Share of overdue loans reduced from 3.9% as of December 31, 2003 to 3.7% as of September 30, 2004. Effective provision for loan portfolio decreased from 7.7 % as of June 30, 2004 to 6.4% as of September 30, 2004.
Development of retail banking services provided during the period of the first nine moth of 2004 for the significant increase of retail accounts by 79% to US$ 1 755 million and mortgage and consumer loans that raised by 225% to US$ 78 million.
Rapid organic growth of distribution network caused the increase of operating expenses by 34.9% to US$ 340 million as of September 30, 2004 in comparison with US$ 252 million as of September 30, 2003.
High volatility in securities market in 2004 resulted in decrease of VTB`s gains from securities by 56.1% to US$ 80 million as of September 30, 2004 from US$182 million as of September 30, 2003. During the second quarter of 2004 VTB recognised marked-to market losses on operations with securities in netount of US$ 56 milion. In third quarter of 2004 the market prices of securities held in VTB`s portfolio began to rise so that net gains from securities for theount of US$ 56 million for 3-month period ended September 30, 2004 were shown .
In order to diversify its funding base VTB successfully approached international capital markets by 3 issues of Eurobonds with maturity from 1 to 3 years for the totalount of US$ 875 million and issue of 1-year loan syndicated in Asian and Middle East markets in theount of US$ 275 million USD during the first 9 month period of 2004.
FORWARD LOOKING STATEMENTS.
Forward-looking statements. Some of the information in this press-release may contain projections or other forward-looking statements regarding future events or the future financial performance of VTB. We caution you that these statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that we cannot predict with certainty. Accordingly, our actual outcomes and results may differ materially from what we have expressed or forecasted in the forward-looking statements. We do not intend to update these statements to make them conform with actual results.
Interim Consolidated Financial Statements with Independent Accountants` Review Report as of 30 September 2004