Renaissance Capital Records 81% Net Profit in H1 2014

Renaissance Capital, a leading emerging- and frontier markets investment bank, has announced significant growth of its net profit in 1H 2014, despite challenging market conditions.

The Firm reported a 81% y-o-y increase in its net profit to $8.7mn for 1H’14 from $4.76 mn for 1H’13.

The bank achieved a 17% cost reduction rate bringing its operating expenses down to $102mn in 1H’14 from $127.6mn in 1H’13.

Total operating income reached $114.3mn, which is in line with the same period in 2013.

Renaissance Capital’s balance sheet remains strong, with the equity to assets ratio growing to 16.5% in 1H’14 from 13.6% as of December 31, 2013.

Total assets and equity stand at $3.59bn and $593.2mn, 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 1H 2014, compared with the same period in 2013. This is complemented by substantial operating cost reduction and a healthy equity to assets ratio,” said Igor Vayn, chief executive officer, Renaissance Capital.

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 book-runner on a number of transactions in Russia and the CIS, including a placement for Georgia’s Bank of Georgia and TBC Bank, among others.

In Africa, the Firm has most recently advised on the IPO of the Nairobi Stock Exchange; the IPO of SEPLAT, a leading Independent Oil & Gas exploration and production company in Nigeria; and the acquisition of African Development Corporation by Atlas Mara Co-Invest.

In September, Renaissance Capital has appointed Maxim Arefyev as managing director, Co-head of Investment Banking, Russia, to lead the origination and execution of M&A, equity and debt capital markets transactions alongside Anton Cherny, as part of a continued boost of its dominant investment banking franchise in the region.

In June, Renaissance Capital has appointed Ahmed Badr as Head of MENA Equities and CEO of its new Dubai office, which is due to open later this year.

Most recently, as part of its Middle East and North Africa (MENA) expansion, the Firm started trading markets of UAE, Saudi Arabia, Qatar, Kuwait, Morocco, Oman and Tunisia.