Loans and advances to customers
The Group’s total gross loan portfolio increased 32.0% y-o-y to 11.1 trln RUB, including newly consolidated banks. Without the acquisitions, the portfolio expanded 20.5% in 2012.
BREAKDOWN OF GROSS LOANS AND ADVANCES TO CUSTOMERS
|RUB bln||% total||RUB bln||% total|
|Commercial loans to legal entities||5,281.5||47.8||4,012.9||47.9|
|Specialized loans to legal entities||2,946.3||26.6||2,563.7||30.6|
|Consumer and other loans to individuals||1,569.7||14.2||944.0||11.2|
|Mortgage loans to individuals||1,143.4||10.3||777.4||9.3|
|Car loans to individuals||123.4||1.1||84.2||1.0|
|Total loans and advances to customers before provision for loan impairment||11,064.3||100||8,382.2||100|
In 2012, retail loans increased 57.1%. This large growth is partially explained by the acquisitions of VBI Group, DenizBank and Cetelem. Excluding the influence of these acquisitions, retail loans still demonstrated a remarkable growth rate of 42.2% for the year.
Corporate loans increased 25.1% in 2012. Excluding the acquisitions, they grew 14.8%. As a result, loans to individuals increased to 25.6% of total gross loans in 2012 versus 21.5% in 2011.
STRUCTURE OF THE GROUP’S GROSS LOAN PORTFOLIO
Despite the rapid expansion of the retail portfolio, its quality remained high, with the share of non-performing loans in total gross loans to individuals declining to 2.7% by end 2012 versus 3.0% the year before. This result is attributable to the acquisition effect and to the improvements in risk-management systems and a conservative lending policy.
In 2012, we successfully increased underwriting of loans to all categories of clients, especially in the SME segment (a 32.8% y-o-y increase of the portfolio, or 12.5% excluding acquisitions). These efforts resulted in a decline of exposure to the Top 20 clients to 19.3% of total corporate loans at end 2012 from 23.3% in 2011.
Corporate loan quality remained solid with the proportion of non-performing to total corporate loans declining to 3.3% by end 2012, compared with 5.4% the year prior. This reduction is the result of an intensive workout of problem loans, as well as large write-offs that mostly occurred in the first part of the year and totaled 118.6 bln RUB for 2012 versus 37.1 bln RUB in 2011.