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Retail Banking

2015 Priorities

In 2015, Otkritie Financial Corporation Banking Group focused on managing integration processes and enhancing the quality growth of its client base.

Improving business processes and promoting remote banking channels remained high on the Group’s agenda. Special attention was paid to achieving excellence in customer service and implementing an integrated approach to customer relations. Considering a large-scale reorganization, priority has been given to improving the quality of business which, in turn, is impossible without introducing state-of-the-art banking solutions and streamlining the product offering to fully meet the clients’ demands for advanced solutions and low risk.

Financial Highlights of 2015 (IFRS)

million roubles



Y-o-y, %

Key balance sheet figures 

Total assets of the segment 




     including net loans to clients 




Total liabilities of the segment




     including customer accounts




Key profit & loss figures 

Net interest income 1




Net fee & commission income




Total operating income before impairment losses and provisions for other transactions 




Operating expenses




Profit before income tax 




1 Net interest income before gain from remeasurement of cash flows from assets acquired as a result of business combinations and before allowance for impairment of interest-bearing assets. 
Note: The financial highlights are shown as of December 31, 2015, for the year ended on December 31, 2015; and as of December 31, 2014, for the year ended on December 31, 2014. 

Comments on Financial Highlights (IFRS)

To manage the quality of its retail portfolio, in late 2013, Otktitie Financial Corporation Banking Group revised its retail business growth strategy to focus on cross-selling to payroll clients and mortgage borrowers.

As of December 31, 2015, the Group’s retail gross loan portfolio shrank by 3.5% to RUB 201.4 billion as the Group continued to tighten its lending standards, particularly in retail segment. Over the year, the business growth tactics was focused on low-risk loans. The mortgage portfolio grew by 10.6% to RUB 76.3 billion, and mortgage loans accounted for 37.9% of the retail loan portfolio compared with 33.0% in 2014.

Retail customer funding increased by 57.9% in 2015 and reached RUB 495.1 billion as of December 31, 2015, driven, inter alia, by the successful merger with Petrocommerce Bank. Another driver of retail customer funding growth was the increase of deposits denominated in foreign currencies – 41.3% as at the end of 2015 compared with 31.5% as at the end of 2014. The positive dynamics of retail deposits over 2015 amid volatile markets is yet another proof of the clients’ trust in the Group’s banks. As of December 31, 2015, deposits accounted for 84.4% of the retail customer funding. At the same time, the Group continued to increase retail customer current accounts, which reached RUB 77.4 billion as of December 31, 2015, up by 9.4% year-on-year.

In 2015, operating income of the retail segment decreased by 13.0% due to a 42.3% drop in net fee and commission income (to RUB 3.5 billion) which was triggered by lower loan origination and lower agency commissions.

Net interest income of the retail segment remained flat in 2015.

In 2015, operating expenses grew by 3.1% which is well below the inflation rate of 12.9%. 

In 2015, the retail business posted a loss of RUB 2.5 billion due to the continuing economic slowdown, rouble depreciation, and the resulting increase in interest rates which triggered a higher cost of risk in the retail segment. 

Strategic Objectives of Retail Banking for 2016

The key objectives of retail banking for 2016 include:

  • to further enhance the Bank’s retail business efficiency;
  • to promote its card and transaction businesses with a focus on premium segment clients;
  • to improve the Internet banking services; 
  • to increase the client base.