EDB’s financial statements for the first six months of 2016 show record-high net profit
Almaty, 11 August 2016. Eurasian Development Bank (EDB) published its financial statements prepared in accordance with the International Financial Reporting Standards (IFRS) for the first six months of 2016. EDB had a record high net profit of US $40.7 million in the period, compared to previous similar periods, over the entire period of its operations.
EDB’s net interest income before provisions for impairment losses on interest bearing assets increased by US $9.1 million (19.3%) year-on-year. The increase was primarily due to a reduction in interest expense by US $31.6 million (43%) as a result of the repurchase of the Bank's Eurobonds.
In the first six months of 2016, the Bank made provisions for impairment losses on interest bearing assets for a total of US $11.7 million, down US $127.5 million, or 91.6%, year-on-year. In the previous year, EDB had to make additional provisions the former Bank's management had failed to form.
The net non-interest income in the period was US $13.4 million. In the first six months of 2015 this figure was negative, primarily because of the making of provisions for impairment losses on non-interest bearing assets.
Optimised operating expenses and stricter budget discipline have helped to reduce these expenses by US $4.8 million, or 22%, year-on-year, to US $17 million.
As at the end of the first six months of 2016, EDB's assets grew by US $127.1 million (4.4%) to US $3 billion.
Loans to customers totalled US $1.35 billion, down US $153.7 million, or 10.3%, over the period.
EDB's issued debt securities totalled US $1.12 billion at the end of the period, which is 6.2% less compared to the end of 2015 due to the repurchase of the Bank's debt securities issued earlier.
Over the first six months of 2016, EDB's equity increased by US $46 million (3.1%) to US $1.55 billion.
The Bank’s financial statements as at 30 June 2016 were reviewed by Deloitte.
The full text of the document is available online.
Additional Information:
Eurasian Development Bank (EDB) 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 mutual trade and other economic ties in its member states. EDB's charter capital totals US $7 billion. 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.
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