Kamil Yusupov: ''Avers Bank is a classic conservative bank with an individual attitude towards every client''
According to results for 11 months in 2016, Avers Bank has shown a growth in all key financial indicators despite a negative dynamics demonstrated by the Russian economy and partially banking sector. It has been maintaining its leading positions in terms of the volume of its net profit in Tatarstan for the last several years. In an interview with Realnoe Vremya, chairman of the board of directors Kamil Yusupov told the bank's results in 2016, what tasks it plans to fulfil in the future within its development strategy and what factors suggest the bank's reliability.
Mr Yusupov, several days left until New Year. On the basis of the previous months in 2016, we can say that Avers Banks is a traditional leader among Tatarstan banks concerning the size of its net profit. Can we say the year has been quite successful?
Yes, 2016 is ending quite well for the bank. Despite what is happening in the market of banking services, we are demonstrating a stable dynamics in all key financial indicators. Assets of the bank have increased more than twofold and exceeded 131,3 billion rubles in the last 11 months 2016. Despite the uneasy economic situation, the bank managed to reach the level of profit it had planned to have. We expect to have about 2,1 billion rubles of net profit at the end of the year.
The capital of the bank has totalled 21,0bn rubles. It has grown by 1,8bn rubles since January. The loan portfolio has also increased by 29,3bn rubles, so it has amounted to 51,9bn rubles. The level of its past due debts is considerably lower than 1% if we are speaking about the portfolio of natural and juridical persons, which is a low indicator in comparison with the Russian banking sector.
This year we have cemented a position in the top 3 of the Tatarstan banking sector in all key indicators: we have joined the top 3 in terms of assets, loan portfolio for juridical persons and the volume of borrowed money of juridical persons among Tatarstan banks. As for our positions in the Russian banking market, we have been in the top 50 banks of Russia in many indicators. The bank was out of the first hundred banks before 2015.
What are the most important events that took place in 2016? What are you working on now?
We continued working on the modernisation of information systems and business processes to make the bank more comfortable for our clients. In September 2016, RAEX confirmed A++ level of creditworthiness (exceptionally high/the highest reliability level) of Avers that it had assigned to the bank. In September, Fitch Ratings also confirmed the long-term rating of Avers at BB- level, the forecast is ''stable''. Confirmation of these two ratings is an undoubted level of the bank's reliability. Avers has everything it needs that is a good reserve of liquidity and high-level capital adequacy.
What about meeting the requirements of the Bank of Russia?
From a perspective of requirements set by the Bank of Russia, we have a big reserve. H1 – capital adequacy – is an indicator that confirms the protection of assets is three times higher than the necessary level. It is equal to 24%, while the bare minimum is 8%. It is a high level. It means that the bank has a big growth potential even with the current volume of adequacy.
H2 demonstrated that instant liquidity exceeds the necessary level three times and is equal to 58% with the bare minimum of 15%. This indicator restricts the risk of the bank's solvency during a day. H3 restricts the risk of losing solvency during the next 30 days (by the day when the requirement was prepared). Avers Bank's indicator is 130,9%, the bare minimum is to be 50%.
Return of capital employed is an important indicator for a bank. It depends on the size and quality of assets in terms of risks and profitability. The totality of these indicators allows to estimate the effectiveness of a bank's work. Profitability of a bank's capital exceeds 10% today. It is the return of capital employed. We are going to keep the return on equity in the next years at no lower than 10%.
Corporate and retail sectors
How much has Avers Bank's loan portfolio for enterprises grown?
The volume of loans granted to enterprises has grown almost three times to 47,6bn rubles during 11 months. The corporative segment remains the most important one and is taking the leading position among areas of the bank's activity. The bank's development strategy sets a serious task – to increase the portfolio for corporate bodies.
What can the bank offer organisations and enterprises of the republic?
We offer a full range of banking services to satisfy the needs of any business: from payment and cash services, salary projects, online service of bank guarantees and loan services.
We gradually augment the share of fee income – payment and cash services, bank guarantee, clients' currency futures, conversion and plastic card transactions. In addition, our own processing allows to issue cards quickly and provide their safe use, quickly manage the chain of devices that accept cards (ATMs, terminals), which is very important while fulfiling salary projects.
Has the bank increased its loan portfolio for retail business too? What helped you to do it? What are the most important changes that took place in retail business?
We have recently refused difficult gradations in all home loans, fixed a single interest rate that depends neither on loan period nor the size of initial instalment. The interest rate on home loan has reduced! We have also decreased rates on consumer lending and launched an offer for Avers salary cardholders who can withdraw money from any ATM until 31 January 2017. Now our clients are welcome to use any cash dispenser of any bank.
Let's look to 2017 and a longer perspective… What goals is the bank setting?
The bank will continue augmenting its assets. We annually demonstrate an organic growth accompanied by a very careful attitude to the quality of loan portfolio and security portfolio. We will continue lending the real sector of the economy. Tatarstan is still the basic region for us. We will increase our share in both corporate and retail sectors. We will certainly aspire to make our service available for our clients.
Is Avers Bank going to increase its share in the banking market of Tatarstan?
We are noting an increased demand for services of our bank. Results of the activity and reliability level of Avers Bank highly estimated by enterprises of the Republic of Tatarstan prove it. We have a classic conservative approach to business with an individual attitude towards every client. We aspire to maintain this ''individuality'', the trust in relations with clients despite modern tendencies, remain a bank they trust, not modern but classic and reliable. I think knowing your client by sight and personal responsibility for results of the work is the most topical thing today.
Taking advantage on New Year's eve, I would like to wish readers of Realnoe Vremya trustful relations with partners, financial stability, inward peace and success!