May 30, 2013 / 8:33 AM / 4 years ago

Russia's Promsvyazbank Q1 profit up 22 pct y/y

MOSCOW, May 30 (Reuters) - Promsvyazbank, ranked among Russia’s top 15 banks by assets, posted 2.2 billion roubles ($70 million) in first quarter net profit, up 22 percent year-on-year thanks to increases in its interest and commissions income, the bank said on Thursday.

The bank, majority owned by billionaire brothers Dmitry and Alexei Ananyev, said that its net interest income rose 10 percent and net commissions income increased 15 percent year-on-year.

Alongside its domestic peers, the bank saw weak lending - up just 1 percent in the first three months of the year. Retail loans added 4 percent and its corporate portfolio was down 8 percent but loans to small and mid-sized business rose 72 percent.

Promsvyazbank said it spent 1.8 billion roubles on provisions for possible bad loans, flat year-on-year. Its non-performing loan ratio was down to 3.9 percent from 4.1 percent as of the beginning of the year.

Russia’s gross domestic product grew by an annual 1.6 percent in the first quarter, its slowest quarterly pace since late 2009, increasing the risk of a spike in bad loans if unemployment increases.

On Wednesday, Sberbank, Russia’s top lender, posted a 4 percent fall in first quarter profits as it set aside $1 billion to cover potential bad loans. ($1 = 31.5475 Russian roubles) (Reporting by Oksana Kobzeva; Writing by Katya Golubkova; editing by Megan Davies)

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