15 April 2019
Renaissance Capital reports healthy FY18 results
  • Net profit consistent YoY at USD13.5mn
  • Operating income steady at USD141.2mn
  • Equity-to-assets ratio at 11.2%  
  • Total assets at USD3.3bn

15 April 2019 – Renaissance Capital, a leading emerging and frontier markets investment bank, today announced its IFRS financial results for the full-year 2018 ended 31 December.

During the reporting period, net profit was consistent YoY at USD13.5mn. Operating income was steady at USD141.2mn. The Firm’s revenue was mainly supported by the strong performance of the markets business in Russia, FI trading operations in Nigeria, as well as several landmark transactions.

Renaissance Capital’s operating expenses decreased slightly YoY to USD120.3mn due to continuous cost optimization strategy. The Firm’s expenses remain under control despite prolific senior hires and promotions, which reflects the Firm’s efficient and thought-through approach to personnel upgrade.

The Firm’s equity-to-assets ratio remained strong at 11.2%. Total assets stood at USD3.3bn as of 31 December 2018.

Dmitry Razumov, CEO, ONEXIM Group, commented: “Amid changing and rocky market conditions, ONEXIM Group is pleased to see Renaissance Capital’s business model of a nimble niche player and consistent management approach work and deliver healthy performance in FY2018. We remain fully committed to further supporting the Firm in its future endeavours.”

Ruslan Babaev, Co-CEO, Renaissance Capital, said: “Throughout 2018, Renaissance Capital was able to remain in the vanguard of debt capital markets activity and executed several landmark transactions, including PhosAgro’s USD500mn eurobond placement, which reopened the eurobond market for CIS issuers in 2018, and Georgia Capital’s highly successful USD300mn debut issue with the lowest coupon ever among Georgian corporates, and an anchor order from EBRD. In addition, the Firm received repeating mandates from clients, which emphasises our strong reputation as a deal maker. In 2018, we arranged three bond placements for Gazprom, including a RUB40bn rouble-denominated bond issue – the largest-ever seven-year bond placed by a Russian borrower, and a CHF750mn, 1.45%, five-year issue with the lowest-ever coupon by an emerging markets (EM) corporate.

“On the ECM side, the Firm implemented several buybacks – for Magnit, MTS, and others, allowing client companies to take advantage of the existing market environment. Despite the challenging environment in EM throughout 2018, Renaissance Capital successfully completed a UGX167bn IPO of CiplaQCIL, a Uganda-based pharmaceutical producer of high-quality and affordable life-saving medicines, and the Bank of Kigali Group rights issue and private placement, which was fully subscribed and raised c. KES7bn, making it the largest-ever capital raise in Rwanda and the largest capital markets transaction in East Africa in 2018.”

Anna Vyshlova, Co-CEO, Renaissance Capital, added: "In 2018, we continued to strengthen our client offering, including algorithmic execution and REPO capabilities, and new products and services in prime brokerage such as hedging solutions and derivatives. Also, the past year saw several important appointments and promotions in the team, including Dmitry Gladkov as Acting Global Head of Investment Banking; Amr Helal as Chief Executive Officer for North Africa; Ahmed Hafez as Head of MENA Research; Alexander Fonarkov as Head of Equity Trading; Grigory Isaev and Ruslan Rezhepov as Co-Heads of Algorithmic Trading, and Andrey Smirnov as Head of Russian Distribution, among others.

“Our profound expertise in core markets and efficient deal execution was recognised by several awards, including the Best Bank in Frontier Markets in 2018 by Global Finance magazine and the Most Innovative Investment Bank for Emerging Markets in 2018 in The Banker magazine's annual Investment Banking Awards. We are committed to maintaining leadership in our core markets and areas of expertise, developing our talent pool and enhancing the client offering.”