News and Press Releases

10 December 2010

OJSC VTB Leasing Announces Results for 9 Months of 2010

OJSC VTB Leasing announced unaudited financial results of operations (under IFRS) as of September 30, 2010.

Main financial indicators:
  • Revenue from core operations was 8,4 billion rubles;
  • Net profit for 9 months of 2010 (under IFRS) was 913,0 million rubles;
  • Net interest income was 2,2 billion rubles; 
  • Company’s capital was 9,97 billion rubles;
  • Assets at end of H1 2010 were 143,0 billion rubles

Net investment in leasing as of September 30, 2010 were 85,9 billion rubles or 5,8% higher than as of December 31, 2009. Leasing portfolio (aggregate amount of clients’ liabilities under leasing contracts less leasing payments already made) as of September 30, 2010 was 142,3 billion rubles or 8,0% less than as of December 31, 2009. This decline was caused by early buyout of leased assets by company’s clients.

Leasing portfolio breakdown (as of September 30, 2010) has the following key client industry segments:
  • Railroad transportation 53,3% (75,8 billion rubles);
  • Aircraft and aviation equipment 28,6% (40,7 billion rubles);
  • Power generation equipment 4,0% (5,7 billion rubles);
  • Machine-building equipment 2,6% (3,7 billion rubles).

Amount of leasing payments received was 24,8 billion rubles.

Rental portfolio (aggregate amount of clients’ liabilities under asset rental (operating leasing) agreements less rental payments already made) was 17,3 billion rubles. This indicates that by the end of 2010 operating leasing (that the company started using in 2009 as a method for restructuring of problem leasing agreements) became a separate – and rapidly developing – line of business for VTB Leasing. Moreover, this new line of business enjoys growth rates that are much higher than those for financial leasing volumes.

Rental portfolio breakdown by industry (as of end of 9 months of 2010) had the following key industries:
  • Aircraft and aviation equipment — 22,0% (3,8 billion rubles);
  • Railroad transportation equipment — 51,0% (8,8 billion rubles);
  • Oil production equipment — 24,0% (4,2 billion rubles).

Active cooperation with railcar-building and machine-building plants in Russia and Ukraine is deepened and expanded under a strategic initiative of VTB Leasing aimed at development of relations with manufacturing companies. Transactions for acquisition of equipment components and rolling stock are executed on a periodic basis.
Company’s performance results for 9 months of 2010 indicate with full certainty that VTB Leasing continues its operations in strict compliance with approved development strategy and business plan.

Mr. A. Konoplev, General Director of VTB Leasing, commented: «Nine months of 2010 indicated that the Russian leasing services market is gradually leaving the crisis behind it. First and foremost, leasing companies are now paying priority attention to quality of their transactions – and quality of their clients. During that period the company has materially reduced the portfolio of problem transactions – presently it is at an acceptable level. Earlier 90,0% of our leasing deals were done in the Moscow region, but in 2010 almost one third of all transactions originate from the regional markets. In 2011 our plans are to continue our regional expansion and to extend our industry reach by broadening the list of industries in which we actively operate.»

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