PSB announces key financial indicators for 9M 2009 under IFRS

According to the interim data under IFRS (unaudited) for 9M 2009, PSB operating income increased 27% YoY to RUB 25.4 billion. Income growth significantly outpaced the 11.5% increase in administrative expenses, resulting in an improved cost-to-income ratio of 38.2%, down from 43.5% for 9M 2008. At the same time, in 9M 2009 PSB’s provision charge exceeded RUB 16 billion, leading to a RUB 111 million net loss for 9M 2009 (though down from RUB 384 million net loss for 6M 2009).

Loan quality deterioration slowed down in Q3 2009: although NPL increased by RUB 2.8 billion to RUB 30.1 billion (9.7% of gross loans), their share rose by just 1 p.p. versus 6 p.p. increase in H1 2009. As at 30 September 2009, NPL were 114% covered by loan impairment allowance.

Other key indicators include:

- Net interest margin of 6.9%;

- Reserve coverage of loans at 11.0%;

- Shareholders’ equity at 9.9% of total assets;

- Total capital adequacy ratio (Basel Accord) of 13.8%.

For a more detailed overview of PSB 9M 2009 IFRS financial highlights please refer to the December issue of Investor Bulletin available at: http://eng.psbank.ru/292/411/.

About Promsvyazbank

OJSC Promsvyazbank, founded in 1995, is one of the leading privately-owned Russian banks, with total assets of RUB 414.5 billion, and total capital of RUB49.3 billion under IFRS as of 1 July 2009. Holding company Promsvyaz Capital B. V. owns 84.68% of the Bank, and Commerzbank Auslandsbanken Holding AG, a subsidiary of the second-largest German bank Commerzbank AG owns the remaining 15.32%. PSB has the following international credit ratings: “Ba2” from Moody’s Investors Service; “B” from Standard & Poor's; “B+” from Fitch Ratings. As of 1 December 2009, PSB had a network of about 240 points of sale in Russia, including 48 branches, a foreign branch in Cyprus, and representative offices in China, India and Ukraine. Banking Group Promsvyazbank includes OJSC Promsvyazbank (head organization), OJSC Volgoprombank, OJSC Yarsotsbank and OJSC Nizhny Novgorod Bank. http://eng.psbank.ru/