TRUST Bank Forecasts Profits Of RUB1-1.5bn, A 20% Increase In Loans And A Bond Issue For 2013
MOSCOW, August 28, 2013 /PRNewswire/ --
TRUST Bank (TRUST), the Russian bank whose products are advertised by the Die Hard star Bruce Willis, plans to open 50 additional branches this year, and expects net profit for 2013 to reach between RUB 1-1.5bn. In an interview with RIA-Novosti, the Russian news service, Bank Chairman Fedor Pospelov talked about TRUST ' s plans for expansion and investment, its strategies regarding capital and risk and plans to issue bonds.
(Logo: http://photos.prnewswire.com/prnh/20130408/607334 ) In 2012, TRUST opened 300 mini branches which allowed the bank to double its footprint and delivered a 20% increase in sales. In 2013, TRUST expects to open about 50 fully operational branches, targeting cities with populations between 30,000 and 200,000 and where they currently have no presence.
Mr Pospelov said, " We understand that there is no potential to substantially increase the numbers of quality borrowers in areas where we already have presence, not unless we want to weaken our risk policy (and this is not something we wish to do). This is why one should spread geographically, find new cities and find new clients there " . He forecasts that this year TRUST will see 20% increase in its loan portfolio. As for the Bank's priority credit card portfolio, it doubled in size to RUB11bn in 2012 and is expected to double again to RUB20bn in 2013. Taking into consideration the significant growth of these sections as well as the active development of its corporate sales channel and the opening of new branches, Mr Pospelov said that he expects TRUST to deliver net profits of RUB1-1.5bn in 2013. In the interview, Mr Pospelov revealed that TRUST intends to issue bonds in 2013 to strengthen the Bank's capital, and is currently discussing terms with the Russian Central Bank. Finally, when commenting on the Bruce Wills advertising campaign, Mr Pospelov said, " Without a doubt, every dollar spent on the advertising campaign with the Die Hard star has seen a significant return on our investment, and last year TRUST was voted the third most recognized bank by Russian consumers. " A full transcript of the interview is available at http://en.trust.ru/press/mass_media/detail87211National Bank TRUST
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