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15 years of using International Financial Reporting Standards

PricewaterhouseCoopers Audit has submitted its independent auditor’s report of Center-Invest Bank’s activities for the year 2010. This will be the fifteenth year that the bank has presented its results to its shareholders and partners using International Financial Reporting Standards (IFRS). PWC has confirmed the high quality of our accounting for 2010.

Center-Invest Bank began preparing its financial accounts in accordance with IFRS back in 1996, and, as such, it was one of the first Russian lending organisations to use these standards.

The confirmation by a leading international auditor that the key financial results for southern Russia’s largest bank indicate sustainable growth gives a positive signal to players in global markets who are currently searching for partners to invest in sustainable and rapidly developing regions. Our IFRS accounts will draw the attention of the largest financial institutions to southern Russia.

IFRS reporting reflects the actual situation in the company, and therefore our accounts are more informative and useful for the end-users,” says Anna Shtabnova, Chairman of the Executive Board of Center-Invest Bank. “There is no ambiguity when interpreting the figures, and users can evaluate the compatibility of the financial indicators with standard international practice.”

The key principles of the international standards on the preparation of financial statements include: accruals, materiality, consistency of preparation, and going concern. The IFRS are more stringent with respect to the way in which assets and liabilities are presented in the balance sheet.

2010 was a year of growth for Center-Invest Bank, with improved results for key financial indicators. Net assets at FYE 2010 were RUR48.3bn, up 12.5% on 2009. The increase in assets was largely attributable to growth of 16.5% in the loan and leasing portfolio; at FYE 2010 the portfolio stood at RUR30.6bn.  

By year end, the bank’s total liabilities were RUR42.1bn, 13.7% higher than in the previous year. Retail deposits grew by 30.7% in 2010, reaching RUR23.4bn by year end, confirming that we continue to enjoy the trust of the population of southern Russia. The reliability and the liquidity of our obligations were underscored by the inclusion of Center-Invest Bank’s bonds in the Bank of Russia’s Lombard List. In October 2010, the international rating agency Moody’s assigned a B1 long-term credit rating to Center-Invest Bank’s bonds.