EDB Publishes Financial Statements for 2011

The EDB’s investment portfolio grew by 32.7% compared year-on-year (from $2.6bn to $3.4bn). Assets grew by more than 11%.

Moscow, 21 February 2012. The Eurasian Development Bank (EDB) rated A3 by Moody’s, BBB by S&P and BBB by Fitch announced its financial results for 2011 prepared in accordance with the IFRS. The financial statements were audited by KMPG Audit, an independent auditor.

Key financial results in 2011:

• At the end of 2011 the EDB’s assets reached almost $2,837.7m, up more than 11% or $285.1m on 2010. This increase was due to a significant growth of almost 64% in loans to customers, from $821m to $1,344m.
• The EDB’s liabilities totalled $1,157.7m, up more than 30% or $268.6m on 2010. Debt securities issued totalled $1,037.8m, up 28% or $227.1m on 2010.
• The EDB’s equity in 2011 increased by $16.5m to $1,680m at the year-end. Its share capital totalled $1,515,7m, an increase due to Kyrgyzstan’s contribution of its share. The Russian Federation and the Republic of Kazakhstan have the largest shares in the EDB’s charter capital (65.97% and 32.99% respectively). The share of the Republic of Belarus is 0.99%, the Republic of Tajikistan 0.03%, the Republic of Armenia 0.01%, and the Kyrgyz Republic 0.01%.
• The EBD’s net profit in 2011 reached almost $24.5m (up 55%). This increase was mainly due to the growth of the net interest income to $68.9m (up 109% or $36m on 2010).

In 2011 the EDB’s investment portfolio increased by 32.7%, from $2.6bn to $3.4bn.

“The year of 2011 was the year when economies recovered from crisis and when the economic growth in the EDB member states accelerated. At the same time, the Bank is a proactive participant in the economic process that facilitates the growth of the region’s economies,” Igor Finogenov, Chairman of the EDB Executive Board, said. “A significant growth in the Bank’s loan portfolio in 2011 (by 63.7%) was due to stronger investment activity and to the return of deferred investment demand. In 2011 the Bank’s investment portfolio was enhanced with 18 investment projects which meant job creation and additional output by related sectors.”

“Although profit is not a key indicator for a development bank, in 2011 the Bank was profitable, as it was in the previous five years, including the crisis year of 2009,” Mr Finogenov emphasised. “At the same time, the key performance indicators have improved. The Bank’s projects can generate about $3bn a year as gross output in the economies of the Bank’s member states where they are fulfilled. They also promote production in related sectors: in the long term, the Bank’s project will be capable of generating of up to $3.7bn as additional output in the economies of the Bank’s member states.”

In addition, at the end of 2011 the Bank’s portfolio had potential to generate mutual trade flows worth $1.1bn a year and the increase in mutual investments backed by the EDB’s projects exceeded $1.1bn.

The Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth and the expansion of trade and other economic ties in its member states. The EDB’s charter capital exceeds $1.5bn. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.
Read more at https://www.eabr.org.