UBRD Directs 54% Less to Reserve Funds

UrBC, Yekaterinburg, September 13, 2017. URBD Finance Group came up with a performance report for the first half the year; the report was drawn up in accordance with the International Accounting Standards and showed improvements in all the primary parameters, the bank’s press service reports.

The bank directed 54% less money to reserve funds in the first half of the year (the figure went down from 6.2bn RUR in the first half of 2016 to 2.8bn RUR in the first half of 2017). The reserve to assets ratio reached 3.6% in late June 2017, which was two times less than in the second quarter of 2016.

Standard & Poor’s (S&P) promoted the bank’s rating outlook to Stable, which indicates an ongoing improvement in the asset quality and capitalization. The agency also affirmed the bank’s credit ratings at Â-/Â.

The UBRD’s assets amounted to 396bn RUR on July 1, 2017, up 11% on the first quarter of the year. The driving force behind this was the bank’s securities portfolio that reached 145.3bn RUR on July 1. Federal loan bonds currently make up a greater share of the portfolio (64.7bn RUR, five times more than six months previously). The bank decided to increase the overall volume of its securities portfolio because of the expected decrease in the federal loan bonds’ profitability.

The Group’s capital amounted to 17.1bn RUR in the first half of 2017 (+2.9% due to profit capitalization).


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