CREDIT BANK OF MOSCOW demonstrates strong IFRS results for 1H2017
- Net income increased by 97.5% yoy to RUB 10.0 bln ($169.4 mln).
- Return on equity and return on assets were 18.5% and 1.3% respectively.
- Net interest margin was 2.9%.
- Net interest income as percentage of average RWA was 4.3% .
- Assets amounted to RUB 1.6 trln ($26.4 bln).
- Gross loan portfolio rose 14.1% ytd to RUB 760.8 bln ($12.9 bln).
- Ratio of NPLs (90+ days) to gross loan portfolio reduced from 2.3% as at
- Cost of risk (COR) decreased from 4.6% as at
- Customer deposits grew by 16.6% in 1H2017 to RUB 804.1 bln ($13.6 bln).
- Equity increased by 49.3% to RUB 154.4 bln ($2.6 bln).
- Basel III capital grew by 46.2% to RUB 233.6 bln ($3.4 bln), with the capital adequacy ratio of 21.8%, and Tier I ratio of 14.3%.
Cost-to-incomeratio was 29.2%.
|Balance sheet||1H2017, RUB bln||2016, RUB bln||change, %|
|Assets||1 588,0||1 568,0||+1,3%|
|Liabilities||1 434,6||1 464,6||-2,0%|
|Capital (Basel III)||233,6||159,8||+46,2%|
|Gross loan portfolio||760,8||666,7||+14,1%|
|Key financial ratios, %|
|Basel capital adequacy ratio (CAR)||21,8%||14,7%|
|90+ NPL ratio (before provisions)||1,9%||2,3%|
|Cost of risk (COR)||2,1%||4,6%|
|Net loans / deposits||89,3%||90,9%|
|Income statement||6M 2017, RUB bln||6M 2016, RUB bln||change, %|
|Net interest income (before provisions)||20,7||20,5||+1,2%|
|Fee and commission income||8,0||6,3||+27,0%|
|Key financial ratios, %|
|Net interest margin (NIM)||2,9%||3,5%|
|Net interest income as percentage of average RWA (NII/ARWA)||4,3%||4,5%|
|Cost-to-income ratio (CTI)||29,2%||22,5%|
|Return on equity (ROAE)||18,5%||10,7%|
|Return on assets (ROAA)||1,3%||0,8%|
Key financial indicators
The net income for 1H2017 increased by almost 2 times yoy to RUB 10.0 bln. This was driven by fee income growth, which is a priority for the Bank, and improving quality of its loan portfolio, which resulted in lower provisioning.
The net interest margin for 1H2017 was 2.9% as highly liquid assets represented a significant percentage of the Bank’s balance sheet. The net interest income as percentage of average RWA was 4.3%. The Bank’s interest margin indicators are in line with market trends.
The operating income (before provisions) for 1H2017 decreased by 1.3% to RUB 28.7 bln. The operating expense increased by 28.1% to RUB 8.3 bln as the Bank expands its business. The Bank’s operational efficiency remained at a high level, as witnessed by the traditionally low
The gross loan portfolio grew by 14.1% ytd to RUB 760.8 bln, owing to the corporate loan portfolio expanding by 17.3% to RUB 663.9 bln mainly due to loans issued to
The total assets amounted to RUB 1,588.0 bln as at 1H2017.
The customer deposits increased by 16.6% in 1H2017 to RUB 804.1 bln, which is 56.1% of the Bank’s total liabilities. The ratio of loans after provisions to deposits was 89.3%.
The Basel III capital adequacy ratio grew from 14.7% as at
As of 30 June 2017, CREDIT BANK OF MOSCOW had 96 offices, 24