Interest income increased by 18.5% for 1H 2014 vs. 1H 2013 mainly due to increase in average balances of loans to customers by 14.2% and in average interest rate on loans to customers to 12.0% p.a. for 1H 2014 from 11.6% p.a. for 1H 2013.
Interest expense increased by 1.2% for 1H 2014 vs. 1H 2013 mainly due to increase in average balances of interest-bearing FX term deposits of individuals and legal entities.
The increase in interest expense was partially offset by 27.3% decrease in average balances of debt securities issued and their average interest rates to 7.6% p.a. from 8.1% p.a. As a result, net interest income before impairment charge increased by 32.0% to
Impairment charge decreased by 79.2% for 1H 2014 vs. 1H 2013, mainly due to repayments of overdue indebtedness of some corporate clients in 1Q 2014 which led to release of provisions.
During 2Q 2014 the Bank wrote-off fully provisioned non-performing loans for
The Bank will continue collection of these written-off loans in accordance with its regular procedures.
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