PUMB reports strong 9M13 results

Обзоры по компаниям и отраслям 24.10.2013 SCM-controlled First Ukrainian International Bank (PUMB, PUMBUZ) reported a 55% yoy increase in its UAS-based profit to UAH 302 mln in 9M13. The bank’s annualized ROE thus reached 9.2%. The bank’s net interest income increased 14% yoy to UAH 1,361 mln in 9M as its interest income grew 1pp faster (13% yoy) than its interest expenses. An increase in loan loss provisioning by 2.2x yoy (to UAH 762 mln) in 9M13 didn’t fully offset the positive impact of most of the bank’s P&L items (including 30% yoy growth in net commissions and a 14% yoy decline in OpEx). In 3Q13 alone, the bank reported 28% yoy growth in net interest income (to UAH 530 mln) and 114% yoy growth in net income to UAH 143 mln. The bank’s total assets increased 24% YTD and 8% qoq to UAH 35.0 bln as of end-September, funded mainly by growth in client accounts (which rose 14% qoq and 29% YTD to UAH 22.5 bln). The bank’s lending activity lagged, with its gross loan portfolio advancing just 7% qoq and 9% YTD (to UAH 18.6 bln) as the bank chose to accumulate more cash on its balance (up 70% YTD to UAH 7.4 bln). The bank’s CAR remained at a safe level of 15.0% as of end-September despite declining vs. 15.7% a quarter earlier. PUMB remained unexposed to currency risk as its net ForEx position stood at UAH 0.6 bln as of end-3Q, or 1.6% of total assets and 12.3% of regulatory capital. Alexander Paraschiy: The 17% yoy increase in interest income in 3Q13, against a backdrop of only 11% yoy growth in its loan book, is a positive surprise for us, while the rest of PUMB’s provided financials look in line with trends demonstrated in previous quarters. That being said, we will keep treating the bank as the safest among Ukrainian bond issuers.