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Financial results for 9 months of 2014

12.12.2014

On 12 December 2014, the Supervisory Board of Otkritie Financial Corporation Bank approved its Condensed Interim Consolidated Financial Statements in accordance with International Financial Reporting Standards (IFRS) as at 30 September 2014 and for the nine months ended 30 September 2014.

Revenue of the Group for 9M 2014 reached RUB 53.3 billion having increased by 38.7% compared to 9M 2013.

Net profit for 9M 2014 amounted to RUB 6.6 billion.

Return on Equity (ROE) for 9M 2014 amounted to 14.9% (including losses from negative revaluation of securities: 8.6%). ROE for 2013 stood at 17.5%.

Net interest income and net fee and commission income were the key growth drivers for the Group’s operating income.

Net interest margin reached 5.2% (4.4% in 2013).

Net interest income for 9M 2014 increased by 67.3% year on year to RUB 48.6 billion.

Net fee and commission income for 9M 2014 increased by 52.6% year on year to RUB 10.0 billion. The greater part of the Group’s net fee and commission income accounted for settlement transactions (RUB 4.4 billion), commissions on agents’ fees (RUB 2.1 billion) and documentary operations (RUB 2.2 billion). The retail business segment earned about the half of the total net fee and commission income of the Group: for 9M 2014 net fee and commission income of the retail business segment increased by 71.6% year on year to RUB 4.9 billion.

The Group’s quarter-on-quarter operating expenses declined by -4.4%, and totaled RUB 25.9 billion for 9M 2014. Payroll expenses accounted for 60.1% of the Group’s total operating expenses. 

The Cost-Income Ratio (operating expenses to operating income before provision for impairment) stood at 48.6% (44.4% net of losses from negative revaluation of securities), compared to 41.3% in 2013. 

Assets growth  

As at 30 September 2014, the Group’s total assets amounted to RUB 1,517.0 billion, demonstrating a 10.0% increase compared to 31 December 2013. Net loan portfolio accounted for 66.3% of the total assets as at 30 September 2014 (63.8% as at 31 December 2013).

As at 30 September 2014, the Group’s net loan portfolio demonstrated a 14.4% increase compared to 31 December 2013, reaching RUB 1,005.6 billion.

The loan loss provision (LLP) ratio stood at 3.5% as at 30 September 2014 (3.6% as at 31 December 2013). Cost of risk ratio amounted to 2.5% for 9M 2014 (1.2% for 2013). Non-performing loans stood at 3.5% as at 30 September 2014 (2.9% as at 31 December 2013). The increase in cost of risk ratio and non-performing loans share occurred due to unstable situation on the market during 2014.

The Group’s total liabilities amounted to RUB 1,375.7 billion as at 30 September 2014, increased by 11.0% compared to 31 December 2013.

Customer accounts including promissory notes issued to clients increased by 10.9% over the nine months period and composed RUB 919.4 billion, comprising 66.8% of the Group’s total liabilities (66.9% or RUB 829.1 billion in 2013). Term deposits including promissory notes issued to clients increased by 18.0% to RUB 757.5 billion (82.4% of total customer accounts including promissory notes issued to clients).

As at 30 September 2014 the loan to deposit ratio stood at 109.4% (106.0% in 2013).

Interbank funding share composed 20.4% or RUB 280.0 billion as at 30 September 2014 (RUB 257.2 billion or 20.7% in 2013).

Other sources of funding remained unchanged: subordinated debt amounted to RUB 73.4 billion or 5.3% of the Group’s total liabilities as at 30 September 2014.

The Tier 1 Capital Adequacy Ratio composed 10.0% as at 30 September 2014 (10.2% as at 31 December 2013); the Group’s total equity amounted to RUB 141.3 billion, including RUB 28.8 billion of non-controlling interest. As at 30 September 2014, total capital adequacy ratio was 14.5%.

See consolidated financial statements as at 30 September 2014  at http://www.otkritiefc.com/