AK BARS Bank has announced its Consolidated Financial Statements in accordance with IFRS for the year ended 31 December 2016. AK BARS Bank gained RUB 5.1 bln. net profit in accordance with IFRS for 2016. The Bank’s profit growth during the year was driven by the increase in income from operations with securities, the interest margin, as well as the strengthening cost control and business process improvement.
Zufar Garaev, Chairman of the Management Board of AK BARS Bank noticed, «2016 was marked by the beginning of the transformation for AK BARS Bank into a financial high-tech corporation. The Bank’s strategy will focus on transaction business development model and an increased emphasis on cross sales and improving customer experience. Relevant change will allow AK BARS Bank to improve the Bank’s stability in a long-term perspective increasing general profitability. In 2017, we are planning to increase revenues from core banking operations.»
Net interest income in 2016 increased sixfold and amounted to RUB 7.3 bln., owing to considerable decrease in interest expense.
Gains less losses from operations with securities increased by 88.6% to RUB 18.8 bln.
Net interest margin by the end of 2016 increased to 2.0% from 0.3%.
Operating income (before provision) in 2016 increased by 65.1% reaching RUB 33.5 bln.
One of the key directions for the development in 2016 was the implementation of the Bank’s performance improvement and cost optimization plan. Operating expenses decreased by 6% — to RUB 8.2 bln.
Net cash received from operating activities amounted to RUB 19.6 bln. against a cash outflow of RUB 13.9 bln. a year earlier.
Assets as of 31 December, 2016 amounted to RUB 403.4 bln., down by 9.0% Y/Y.
Total loan portfolio before provision in 2016 decreased by 15.8% — to RUB 236.3 bln. This was due to the decrease in the corporate loan portfolio for the reporting period by 23.8% — to RUB 165.0 bln. Retail loan portfolio in 2016 increased by 11.4% and amounted to RUB 71.3 bln.
The share of non-performing loans (NPL 90+) in 2016 decreased by 3.0 percentage points (pp) — to 1.8%. The share of impaired loans in 2016 decreased by 2.5 percentage points and amounted to 9.1%.
As of 31 December, customer accounts and deposits amounted to RUB 264.9 bln. increasing by 10.6%. This was mainly based on the increase in the volume of accounts of state and public organizations — by 173.2% to RUB 62.4 bln., as well as individuals’ accounts — by 7.7%, to RUB 106.8 bln. Corporate accounts for the year 2016 decreased by 18.6% to RUB 95.7 bln.
Total income was RUB 9.1 bln. leading to an increase in the Bank's capital in 2016 by 25.6%. Total capital in accordance with Basel III was RUB 63.3 bln. Return on equity and return on assets for 2016 amounted to 12.6% and 1.2%, respectively, against negative values according to the results of 2015.
The Bank’s IFRS statements in Russian are available at https://www.akbars.ru/about/free-info/reports/