UBRD Group Makes Over RUR 1bn in Profit

UrBC, Yekaterinburg, December 4, 2017. The Ural Bank for Reconstruction & Development (UBRD) Group made more than RUR 1bn in profits (calculated in accordance with the International Accounting Standards) in the nine months of 2017, the Group’s press service reports.

‘The Group’s consolidated profit amounted to RUR 1.051bn in the three quarters of the year, including a one-time RUR 553 transaction (excluding which, the bank’s profits rose by 18.9% compared with one year previously). All factors considered, the bank’s profit increased nearly five times by the end of the third quarter compared with Q3’16 and reached RUR 572m,’ the press service says.

This growth has to do with a considerable improvement in the quality of the bank’s loan book, that is, less money going to reserve funds. The bank’s backup reserves came to RUR 3.7bn in the nine months of the year, which was RUR 4bn less than one year previously. This was possible due to the use of more up-to-date methods of evaluating a borrower’s financial potential and reliability. As a result, the bank fully formed the reserves needed to back up past-due loans of 2014 and 2015.

‘We are now presenting the UBRD’s financial performance indicators that prove our business model as very stable. This year, the Group keeps working on its Strategy 2020, which aims to improve the quality of all key processes and to switch from extensive growth and aggressive customer base expansion to customized approach to every customer segment and to creating needs-based banking products. We managed to improve our asset structure and optimize resource base costs and thus ended up with stably growing interest earnings and improved customer service. We also came up with competitive, appealing products and services that were designed in accordance with their needs. This has paid off through increased customer satisfaction,’ says UBRD President Anton Solovjev.

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