VEB has opened its representative office in Abu Dhabi, the United Arab Emirates. The new representative office has obtained all necessary permits, a commercial license and a registration certificate, and now is ready to operate.
“Vnesheconombank has been actively cooperating with the United Arab Emirates and the Middle East, and the Islamic world as a whole. We are working to engage investors, raise finance, enhance trade and foster greater economic ties, and also to promote high-technology exports from Russia. Now that we have the representative office in Abu Dhabi, the Bank has expanded its geographical reach to bring the cooperation with the region to a new level. The Abu Dhabi representative office will promote VEB Group interests and enable cooperation with local players,” said Igor Shuvalov, Vnesheconombank’s Chairman.
Working together with the Organisation of Islamic Cooperation (OIC) is strategically important for VEB. The Bank’s OIC export loan and guarantee portfolio stands at USD2.8bn.
“No other Russian bank has such extensive cooperation in the region. And we are set to move forward and actively engage in financing joint projects,” added Mr. Shuvalov.
The VEB representative office in Abu Dhabi will promote cooperation between the UAE and Russia in exports and investment. Boosting trade and expanding economic ties was among the topics discussed by Russian President Vladimir Putin and Mohammed bin Zayed bin Sultan Al-Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE's Armed Forces, during their meeting on 1 June 2018.
Vnesheconombank published consolidated financial statements of the VEB Group for the three-month period that ended March 31, 2018 as prepared in compliance with IFRS
Vnesheconombank published consolidated financial statements of the VEB Group for the three-month period that ended March 31, 2018 as prepared in compliance with IFRS.
The VEB’s Group key performance indicators are as follows:
- The VEB’ Group assets as at March 31, 2018 went up by 1.9% (+ RUB 62.8 bn) as compared to the beginning of 2018 to reach RUB 3 438.8 bn, stipulated by the increase in current accounts with banks due to the proceeds of federal budget’s subsidy received at the end of March.
- Loans to customers account for 52% of the Group’s total assets. As compared to the end of 2017 loans to customers less allowance for impairment went up by RUB 8.5 bn (+0,5%) and reached RUB 1 792,5 bn. The total amount of loans to customers less allowance for impairment was impacted by the adjustments to loss allowance according to IFRS 9, which presupposes expected credit loss rather than incurred loss model.
- Total liabilities of the Group as at March 31, 2018 went up by 0.7% (RUB +22,3 bn) to RUB 3 002.6 bn, primarily due to the rise in the book value of subordinated deposits due to the change initial terms of fund raising. Additionally in accordance with requirements of the new IFRS 9 standard, allowance for impairment of financial guarantees recorded in liabilities was made.
- Amounts due to banks and debt securities issued account for 54% of total liabilities (as at the end 2017 this share was 55%). In the first quarter the share of amounts due to Western banks and Eurobond investors in liabilities continued its decline, decreasing from 33% to 28% by RUB 82.8 bn.
- As of the first quarter end the Group recognized a loss of RUB 21.5 bn. The major factor that contributed to the negative financial result was a one-time non-interest expense of RUB 44.5 bn reflecting an unamortized part of the previously recognized gain on NWF foreign currency-denominated deposits.
- The Group’s equity in the first quarter of 2018 increased by RUB 40.5 bn (+10.2%) and as at March 31, 2018 amounted to RUB 436.2 bn. In the first quarter of 2018 VEB received a subsidy from the federal budget in the amount of RUB 95.6 bn, out of the budgeted RUB 100.0 bn for 2018, as a compensation of costs related to servicing foreign capital market borrowings. The equity decrease was affected by the new IFRS 9 introduction in the amount of RUB 31.2 bn, as well as the financial result of the first quarter.
- VEB’s capital adequacy ratio (according to RAS) as at March 31, 2018 amounted to 13.1%.