03 October 2018
Renaissance Capital reports strong 1H 2018 results
  • Net profit up 35% YoY to USD7.5mn
  • Operating income up 6% YoY to USD78.5mn
  • Equity-to-assets ratio at 11.7%  
  • Total assets and equity at USD3.2bn and USD371mn, respectively

2 October 2018 – Renaissance Capital, a leading emerging and frontier markets investment bank, today announced its IFRS financial results for the six months ended 30 June 2018.

During the reporting period, net profit increased by 35% YoY to USD7.5mn. Operating income grew by 6% YoY to USD78.5mn. The Firm’s revenue growth was driven by strong performance of the derivatives divisions and fixed income desks in Russia and Nigeria.

Renaissance Capital’s operating expenses increased by 4% YoY to USD67.5mn as a result of continuous growth of the Firm’s emerging and frontier markets franchise and local talent.  

The Firm’s equity-to-assets ratio remained strong at 11.7%. Total assets and equity stood at USD3.2bn and USD371mn, respectively, as of 30 June 2018.

Renaissance Capital has maintained strong momentum across business throughout the first half of 2018, with nine debt capital markets deals. The Firm led some of the most significant deals, including: the CHF750mn international bond issue for Gazprom – the largest ever amount borrowed by an emerging markets company from EMEA markets in Swiss francs with the lowest ever coupon for an EMEA company; the EUR750mn international bond issue for Gazprom with the second-lowest coupon in euros ever achieved by a CIS borrower; the first Eurobond deal of a CIS company in 2018 for PhosAgro, one of the world’s leading producers of phosphate-based fertilisers; the USD500mn international bond issue for Polyus, one of the Top-10 gold producers globally; and the USD300mn international bond issue for Georgia Capital, a Georgian investment company.

Ruslan Babaev, Co-CEO, Renaissance Capital, commented: “We have continued to strengthen our footprint in target markets, including West Africa, with Nigeria being one of the best performers among the regions where we operate. In the first half of 2018, we have executed around NGN203bn worth of trades on the Nigerian Stock Exchange – almost 2.5x up YoY, with half-year results almost matching the 2017FY level. This stellar growth translated into a 12.7% market share and #2 ranking (up from #4) in terms of value of trades.

“Our achievements on the DCM front have been widely recognised by the market, with Renaissance Capital rated as the Top-3 arranger of Russian international placements and the Top-5 arranger of CIS international placements by Cbonds.”

Anna Vyshlova, Co-CEO, Renaissance Capital, added: "Since the beginning of 2018, we have continued to strengthen our team across various offices, announcing a number of new appointments and promotions, including Dmitry Gladkov as Acting Global Head of Investment Banking; Gregory Smith as Fixed Income Strategist focusing on emerging markets; Ahmed Hafez as Head of MENA Research; Alexander Fonarkov as Head of Equity Trading; Ivan Kachkovski as Equity Research Analyst covering the banking sector and financial institutions in Russia, the CIS and emerging Europe; and Sergey Beiden as Utilities Analyst covering the sector across Russia, emerging Europe and Africa.

“Our deep market expertise and efficient deal execution have been recognised by market participants. We have been named the Best Bank in Frontier Markets in 2018 by Global Finance magazine and ranked second in the Frontier Markets category of Institutional Investor’s 2018 All-EMEA Research Team survey, while maintaining a Top-10 overall EMEA Research Team ranking in the same survey.

“In addition, Renaissance Capital has been named the Most Innovative Investment Bank for Emerging Markets in 2018 in The Banker magazine's annual 'Investment Banking Awards'. We intend to continue building on the strengths of our high-performance team for the benefit of all our clients globally.”

In 1H2018, Renaissance Capital continued to position itself as a thought leader in its target markets, organising several high-profile investor events. In April, in partnership with MOEX, the Firm held its 22nd Annual Russia Investor Conference in Moscow, which brought together local and international investors and some of the leading Russian corporates. The same month saw Renaissance Capital’s 3rd Annual Egypt 1:1 Investor Conference, which connected prominent South African investors with senior managers representing leading Egyptian companies from a broad range of sectors. In May, Renaissance Capital hosted its 9th Annual Pan-Africa 1:1 Investor Conference in Lagos focusing on investment opportunities in Nigeria and Africa’s other fast-growing economies.