Securities portfolio
The Group’s securities portfolio increased 21.2% in 2012 to 2.0 trln RUB, with half of the growth attributable to the acquisitions of VBI Group, DenizBank and Cetelem.
The securities are used primarily for liquidity management. The proportion of equities in the portfolio decreased from 10.3% in 2011 to 3.9% by end 2012.
As of end 2012, the portfolio included foreign government bonds from the following countries: Turkey (61.1% of the total); East European EU members (16.5%); and Austria, France and Belgium and Germany (8,8%). Investment-grade securities make up 83.5% of the portfolio. These bonds came mostly as a result of the acquisition of VBI Group and DenizBank.
Corporate bonds reached 32.6% of the total portfolio as of end 2012. This represents an increase of nearly 0.9 pp in the total portfolio, and the share of investment-grade paper in this category increased to 52.5% as of end 2012 (versus 43.7% in 2011).
During 2012, the share of securities pledged under repo transactions increased to 48.2% of the total portfolio, from 18.5% in 2011. Most of these transactions are with the Central Bank of Russia and peaked in 4Q12 due to tight liquidity in the banking system.
SECURITIES PORTFOLIO BREAKDOWN
|
2012 |
2011 | |||
|
RUB bln |
% of total portfolio |
RUB bln |
% of total portfolio | |
| Total | 1,969.7 | 100.0 | 1,625.8 | 100.0 |
| Federal loan bonds (OFZ bonds) | 783.9 | 39.8 | 712.5 | 43.8 |
| Corporate bonds | 641.6 | 32.5 | 514.7 | 31.7 |
| Foreign government bonds | 205.0 | 10.4 | 26.5 | 1.6 |
| Russian Federation Eurobonds | 141.7 | 7.2 | 66.3 | 4.1 |
| Municipal and sub-federal bonds | 118.4 | 6.0 | 134.5 | 8.3 |
| Corporate shares | 76.5 | 3.9 | 166.7 | 10.3 |
| Investments in mutual funds | 3.1 | 0.2 | 2.6 | 0.2 |
| Promissory notes | — | — | 2.0 | 0.0 |
BOND PORTFOLIO BY CREDIT RATING
|
2012 |
2011 | |||
|
RUB bln |
% of total portfolio |
RUB bln |
% of total portfolio | |
| Investment grade | 1,514.2 | 80.1 | 1,105.5 | 75.9 |
| Speculative grade | 331.0 | 17.5 | 267.8 | 18.4 |
| Not rated | 44.9 | 2.4 | 83.2 | 5.7 |
| Total | 1,890.1 | 100,0 | 1 456,5 | 100,0 |