25 September 2017
Renaissance Capital doubles net profit in 1H 2017

Profit boosted by robust performance across all desks as EEMEA markets show signs of recovery

 

  • Net profit doubled YoY to $5.5mn.
  • Operating income increased by 15% to $74mn.
  • The equity-to-assets ratio remained at 14%.
  • Over 20 debt and equity capital markets deals completed in Russia and other EM space.

Moscow, 25 September 2017 – Renaissance Capital, a leading emerging and frontier markets investment bank, has today announced its IFRS financial results for the six months ended 30 June 2017.

During the reporting period, the Firm’s net profit doubled YoY to $5.5mn. Operating income increased by 15% to $74mn. Operating expenses remain flat YoY at $65mn – an insignificant adjustment is due to an increase in personnel expenses driven by new hires. The equity-to-assets ratio is a healthy 14%. Total assets and equity made up $3.5bn and $476mn, respectively, at 30 June 2017.

Revenue was boosted by a robust performance across all desks, combined with the impressive results of the Financing Group, particularly on the back of the EEMEA markets showing signs of recovery.

Over H1 2017, Renaissance Capital completed over 20 significant debt and equity capital markets transactions, further proving its role as a leader in Russia and other emerging and frontier markets.

The Firm advised on a range of international and Russian offerings, including a GEL500mn three-year senior bond issue for Bank of Georgia, a first-ever local currency international bond issue out of Georgia. The list of innovative transactions also included a RUB15bn issue for Kazakhstan Temir Zholy (KTZ), the state railway company of the Republic of Kazakhstan, the first corporate issue for a foreign borrower in the Russian domestic rouble market.

Renaissance Capital led a $800mn six-year Eurobond issue for Polyus Gold, a $500mn bond issue for Koks/IMH, a $300mn Additional Tier I perpetual bond issue for Tinkoff Bank, and a new $500mn bond issue for State Transport Leasing Company (STLC), among others.

In Equity Capital Markets, the Firm acted as an organiser for three consecutive follow-on offerings for Georgia’s TBC Bank; the IPO for Waberer’s, Budapest’s biggest stock market debut for nearly two decades; and follow-on offerings for Bank St Petersburg and RUSAL (with a dual listing on HKSE and MoEX), among others.

Anna Vyshlova, co-CEO, Renaissance Capital, commented: “The Firm’s strong performance demonstrates a leading position in our key markets. This is reflected in an increase in both operating income and net profit, and most notably in a range of transactions in Russia and beyond. We are committed as ever to continue this momentum and provide clients with best-in-class product across our core geographies.”

Ruslan Babaev, co-CEO, Renaissance Capital, said: “Looking ahead into the rest of the year, we continue focusing on revenue-generating opportunities and delivering an unrivalled offering across multiple regions. We have a solid platform to grow our business and embrace ample opportunities across our business universe.”

Renaissance Capital continued reaffirming its status as an emerging markets opinion leader, hosting a number of events in 1H 2017, including its 3rd Annual East Africa Investor Conference; the 21st Annual Russia Investor Conference; its 8th Annual Pan-African 1:1 Investor Conference; and its 2nd Annual Egypt Investor Conference. The events were all attended by major local corporates and members of the global investment community.

Among other notable milestones, the Firm announced a decision to establish a presence in Cairo – the Renaissance Capital office is due to open there in 2017, pending all relevant regulatory and other authorities’ approval.

Renaissance Capital was again recognised as the Top Frontier Brokerage globally in the prestigious Extel 2017 Survey, which combines votes from over 15,000 investment professionals. Its award-winning Research team continues to be at the forefront of emerging and frontier market offerings, demonstrating excellent results in the annual Institutional Investor and South Africa’s Financial Mail rankings for 2017.