CREDIT BANK OF MOSCOW demonstrates strong IFRS results for 1H2017
21.08.2017
Key results
- 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
end-2016 to 1.9%. - Cost of risk (COR) decreased from 4.6% as at
end-2016 to 2.1%. - 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-income ratio 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% |
| Equity | 154,4 | 103,4 | +49,3% |
| 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% | |
| Provisioning ratio | 5,6% | 6,0% | |
| 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% |
| Net income | 10,0 | 5,1 | +97,5% |
| 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
Infrastructure development
As of 30 June 2017, CREDIT BANK OF MOSCOW had 96 offices, 24