Renaissance Capital posts over 20 % profit growth in first half

Renaissance Capital, an emerging and frontier markets investment bank, has posted a 20.8 per cent increase in net profit to $10.5 million in the first half of 2015, compared with $8.7 million in the corresponding period of 2014.

The report, which has been audited under the International Financial Reporting Standards, also showed that the company delivered strong revenues from its core businesses, including global markets, particularly in Fixed Income, Currencies and Commodities (FICC), despite headwinds.

The investment bank, with operations in Russia, Eastern Europe, the Middle East, Asia, Africa, and offices in major financial centres, such as London, New York and Dubai, has established market-leading positions in each of its core businesses – merger and acquisitions, equity and debt capital markets, securities sales and trading, research and derivatives.

The company, in a statement, said the continued focus on cost management has resulted in a 25 per cent decrease in operational costs year-on-year, with operating expenses now at $73.7 million from $98.3 million in the comparable period of 2014, while total operating income reached $97.8 million.

In the period under review, Renaissance Capital has initiated coverage of stocks and sectors in the new frontier space, including consumer, cement, fertilizer and utility companies in Pakistan, as well as the banking and construction sectors in its footprints.

Already, the company has concluded plans to grow its offering from its Dubai office, to Egypt along with the Gulf Cooperation Council (GCC) markets.

Meanwhile, Victor Lugo, has joined the bank as Director of FICC Sales, and Elena Kolchina was appointed Director and Fixed Income Strategist in July, a move aimed at sustained committment to developing and strengthening its team.

Also, it has appointed James Friel as Global Head of Investment Banking, from Rothschild, while in Sub-Saharan Africa, Temi Popoola, was hired as Head of Equities and now the Chief Executive Officer of Nigeria office, to further strengthen its already established offering on the ground.