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Renaissance Capital reports 81% profit growth

By on September 27, 2014

Renaissance Capital, a leading emerging- and frontier markets investment bank has announced a significant growth in its net profit for the half year 2014, despite challenging market conditions.

A statement from the investment bank showed it reported an 81 per cent year-on-year increase in its net profit to $8.7 million for the first half from $4.76 million as at the first half of 2013.

The firm achieved a 17 per cent cost reduction rate, which took its operating expenses down to $102 million as at the first half of 2014, as against the $127.6 million it was in the comparable period of 2013.
Total operating income reached $114.3 million, which was in line with the same period in 2013. Furthermore, the statement showed that Renaissance Capital’s balance sheet remained strong, with the equity to assets ratio growing to 16.5 per cent as at the half year 2014, from 13.6 per cent as of December 31, 2013. Total assets and equity stood at $3.59 billion and $593.2 million, respectively.

“In the past six months, Renaissance Capital has continuously demonstrated sustainable business growth. We have shown profitability in three consecutive reporting periods and achieved a significant increase in the bank’s operating profit in first half of 2014, compared with the same period in 2013.

“This is complemented by substantial operating cost reduction and a healthy equity to assets ratio,” Chief Executive Officer, Renaissance Capital, Igor Vayn said.
He added: “Renaissance Capital remains strongly committed to its core regions of Sub-Saharan Africa, Russia and Turkey. We have continuously strengthened our competitive position and grown our market share across all our geographies.

“Recently, the Firm has expanded its footprint to include Dubai, where it has applied for and received a dealing and advising on securities license. This financial hub represents a key base off which we intend to build a market-leading offering in the Middle East and North Africa space.
“We are pleased with the firm’s performance results, particularly against the backdrop of a global market slowdown, and are looking forward to new challenges ahead.”

In 2014, Renaissance Capital has acted as advisor and bookrunner on a number of transactions in Russia, including a placement for Georgia’s Bank of Georgia and TBC Bank, among others.
Also, in Africa, the firm most recently advised on the initial public offering (IPO) of the Nairobi Stock Exchange; the IPO of Seplat and the acquisition of African Development Corporation by Atlas Mara Co-Invest.

 

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