Financial Data
Dear colleagues,
We are pleased to present you Absolut Bank’s Audited Financial Report
for the 2006.
During the year of 2006 the Bank demonstrated considerable growth in
both corporate and retail business. Total assets increased more than
two times and comprised US$ 2.518 million. The main source of the growth
was the expansion of the Bank's credit portfolio, which increased more
than two times up to US$ 1.624 million. Retail credit portfolio achieved
more than US$ 300 million, focusing on the mortgage portfolio which took
over US$ 226 million. The share of retail loans increased in 2006 from
13% to 20% of cross loans.
Strong assets growth was supported by capital increase and obtained
financing from the local and international capital markets in the form
of customer deposits, bank to bank loans, bond issues and syndicated
loans. In the end of 2006 the Bank’s total capital comprised US$ 270
million* including
subordinated loans for the amount US$70 million. During 2006 Absolut
Bank has successfully placed its debut 3-years US$200 million Eurobonds
issue and raised US$ 120 million A+B Loan arranged by EBRD.
As the part of its retail business strategy the Bank has continued
to open new offices in Russian regions. Today Absolut Bank provides banking
services in 11 Russian regions through 38 offices and have a plan to
extend the network up to 100 offices in 22 Russian regions by the end
of 2008.
Net profit comprised US$ 26 million. This result becomes even more
noteworthy, given the Bank’s significant investments made in the branch
network development, the hiring of professional staff and IT development
in order to extend service capacity and quality of the products offered.
Let us thank you for the trust and confidence in Absolut Bank. We look
forward to continue developing our fruitful collaboration.
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Yours faithfully,
Absolut Bank
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Anatoly Maksakov,
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Deputy Chairman of the
Management Board
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* In February 2007 the
Bank placed new share issue for amount of US$ 60 million which
was partially financed by means of conversion of the subordinated
deposits in the amount of US$ 50 million.
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