Renaissance Capital (RenCap), a leading emerging- and frontier markets investment bank, announces significant growth of its net profit in 1H 2014, despite challenging market conditions.
“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, said Igor Vayn, Chief Executive Officer, Renaissance Capital.
Vayn attributed RenCap’s impressive growth to its substantial operating cost reduction and a healthy equity to assets ratio.
The Firm reported a 81 percent year-on-year increase in its net profit to $8.7 million for 1H’14 from $4.76 million for 1H’13. The bank achieved a 17 percent cost reduction rate bringing its operating expenses down to $102 million in 1H’14 from $127.6 million in 1H’13. Total operating income reached $114.3 million, 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 percent in 1H’14 from 13.6 percent as of December 31, 2013. Total assets and equity stand at $3.59 billion and $593.2 million, respectively.
As the growth continues, RenCap “remains strongly committed to its core regions of Sub-Saharan Africa, Russia and Turkey,” and have continued to strengthen its competitive position as it grows market share across all regions where it operates.
The Firm recently expanded operations to Dubai, a financial hub that represents a key base off which the company 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,” Vayn said.
RenCap has acted in advisory roles in some of the top deals of the year, including: 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.
