Following 2017 results AK BARS Bank received a net profit of RUB 7.3 bln. exceeding the last year result by 43.5%. The growth resulted from the increase of net interest income, net fee income and financial results on transactions with securities.
At the end of the reporting period the Bank’s assets decreased by 4.3% to RUB 386.2 bln.
The net assets amount increased significantly by 30.9% and accounted for RUB 58.6 bln. as of 31 December 2017. The total equity of the Group at the end of the year amounted to RUB 70.4 bln. with a capital adequacy ratio of 16.5% against 14.0% a year earlier.
At the end of 2017, the net interest margin was 3.3% that increased 0.8 p.p. YoY. Improvement in the quality of loan portfolio allowed to reduce provisions by 64%.
By the end of 2017, return on equity shows positive dynamics at 14.1% compared to 12.6% in 2016. Return on assets increased to 1.9% from 1.2% in 2016.
Based on the 2017 results, the total loan portfolio (before provision) of the Group decreased by 20.4% to RUB 188 bln. Corporate loans (before provision) reduced by 28.4% to RUB 118.1 bln., retail loans portfolio also decreased by 2% to RUB 69.9 bln. The total net loan portfolio reduced by 17.8% to RUB 174.5 bln. at the end of the reporting period.
Provision decreased 2.8 times to RUB 6.9 bln. The decrease was driven by the improvement of the loan portfolio quality, early repayment of a number of loans. The share of impaired loans reduced in 2017 to 11.7% against 16.1% in 2016.
The amount of loans to related parties at the end of 2017 decreased twofold from RUB 27.3 bln. to RUB 13.5 bln. YoY.
The Group’s investment properties decreased from RUB 13.5 bln. to RUB 7.0 bln.
Herewith, the investments in securities at fair value through profit and loss increased 1.5 times to RUB 103.9 bln. Debt securities investments nearly doubled to RUB 54 bln. by the end of the year, whereas the share of securities investments with investment rating exceeded 78% compare to 57% in 2016.
Customer accounts amounted to RUB 290.8 bln., which is 9.8% higher than in 2016. The growth was driven by the increase in corporate accounts by 14.5% to RUB 181 bln. and individual accounts by 2.7% and amounted to RUB 109.7 bln.
Customer accounts amounted to 88.7% of the Bank’s liabilities as of the end of the year compared to 73.9% at the beginning of 2017.
After reduction by 32.9% of interest expenses, the net interest income (before provision) increased by 27.4% to RUB 9.3 bln. Net fee and commission income increased by 17.1% to RUB 2.7 bln.
Operational expenses increase by 30% to RUB 10.7 bln. was driven by the rise in advertising costs, marketing services, IT development, branch network development as well as increase of personnel expenses.
|Net interest income before provision||9 348,8||7 335,5||27,4%|
|Net fee income||2 689,0||2 295,6||17,1%|
|Income from securities||12 895,8||18 931,8||-31,9%|
|Operating expenses||-10 675,1||-8 184,1||30,4%|
|Provision for loan impairment||-6 906,1||-19 284,8||-64,2%|
|Net profit||7 278,5||5 073,6||43,5%|
|Assets||386 206,5||403 369,3||-4,3%|
|Loans and advances to customers||174 529,3||212 262,8||-17,8%|
|Customer accounts||290 777,5||264 917,8||9,8%|
|Equity||58 555,2||44 716,7||30,9%|
|Return on Average Equity (ROAE)||14,1%||12,6%||1,5 p.p.|
|Return on Average Assets (ROAА)||1,9%||1,2%||0,6 p.p.|
|Operating expenses/Operating income||40,2%||24,4%||15,8 p.p.|
|Net interest margin||3,3%||2,5%||0,8 p.p.|