MKB’s IFRS net income is RUB 8.3 bln for the first three months of 2021, +61% yoy


Key Results

  • Net income grew by 60.6% yoy to RUB 8.3 bln.
  • Return on equity1 and return on assets grew to 17.3% and 1.1%, respectively (1Q2020: 12.0% and 0.8%; 2020YE: 16.9% and 1.1%).
  • Net interest income increased by 26.9% yoy to RUB 16.1 bln.
  • Net interest margin was 2.2% (1Q2020: 2.1%). Net interest income as percentage of average RWA (NII/RWA) grew by 0.6 pp to 4.3%.
  • Net fee and commission income was RUB 3.1 bln, which is 15.6% more than in 1Q2020.
  • Operational efficiency remains at a high level: cost-to-income ratio was 36.9%.
  • Assets rose by 7.7% ytd to RUB 3.1 tln.
  • Gross loan portfolio rose by 6.0% ytd to RUB 1,122.8 bln.
  • Ratio of NPLs (90+ days) to gross loan portfolio stayed at 3.1% like in 2020.
  • Cost of risk (COR) reduced by 1.4 pp ytd to 0.4%.
  • Customer deposits increased by 2.4% to RUB 1,779.5 bln.
  • Capital adequacy ratio was 19.5%, and Tier 1 capital ratio was 14.2%.



Key Financial Results


Income statement



change, %

Net interest income (before provisions), RUB bln




Net fee and commission income, RUB bln




Net income, RUB bln




Earnings per share, RUB




Key financial ratios, %

Net interest margin (NIM)




Net interest income as percentage of average RWA (NII/ARWA)




Cost-to-income ratio (CTI)




Return on equity (ROAE)




Return on assets (ROAA)




Balance sheet

1Q 2021


change, %

Assets, RUB bln




Gross loan portfolio, RUB bln




Gross corporate loan portfolio, RUB bln




Gross retail loan portfolio, RUB bln




Liabilities, RUB bln




Customer deposits, RUB bln




Corporate deposits, RUB bln




Retail deposits, RUB bln




Equity, RUB bln




Key financial ratios, %


Percentage of impaired loans (stage 2 and 3) in loan portfolio (at amortised cost2, before provisions)





90+ NPL ratio (before provisions)





Provisioning rate (for loan portfolio at amortised cost)





Net loans / deposits





Basel III capital adequacy ratio (CAR)






Net income grew by 60.6% yoy to RUB 8.3 bln,  driven by net interest and fee income boosted by good quality growth of the bank’s business.

Return on equity rose by 5.3 pp yoy to 17.3%.

Net interest income increased by 26.9% to RUB 16.1 bln, firstly because interest expenses on customer deposits reduced by 17.3% to RUB 14.1 bln against the backdrop of declining deposit rates.

Net interest margin widened to 2.2%. Net interest income as percentage of average RWA rose by 0.6 pp yoy to 4.3% reflecting the expanding portfolio of low-risk assets with minimal capital pressure.

A favourable operating environment, coupled with the high quality of the loan portfolio, translated into a lower macroeconomic adjustment and lower PDs for certain customers, resulting in a RUB 1.1 bln reversal of provisions. Good market conditions with active business growth supported the net interest income after provisions: it more than tripled and reached RUB 17.2 bln.

Net fee and commission income grew by 15.6% yoy to RUB 3.1 bln driven by the transactional business's development in line with the adopted strategy. In particular, guarantee and letter of credit issuance fees increased by 44.7% to RUB 1.3 bln. Brokerage commissions also grew strongly by 52.9% to RUB 341 mln, driven by origination business in the domestic bond market.

Operating income (before provisions) decreased by 10.8% yoy to RUB 16.8 bln, firstly due to the accounting treatment of the FX-nominated perpetual bonds. Operating expense increased by 21.0% to RUB 6.2 bln as the staff costs grew by 29.4% to RUB 3.8 bln reflecting the integration of assets acquired in the first quarter of 2021. MKB consistently demonstrates a high level of operational efficiency: its cost-to-income ratio (CTI) for the first three months of 2021 was 36.9%.

Total assets increased by 7.7% ytd to RUB 3.1 tln driven by the loan portfolio expanding by 6.2% to RUB 1.1 tln (after provisions), deposits in banks and other financial institutions rising by 9.1% to RUB 1.5 tln, and the securities portfolio growing by 8.2% to RUB 435.2 bln due to acquisition of federal bonds (OFZ).

Gross loan portfolio rose by 6.0% ytd to RUB 1,122.8 bln. It had a 87.1% share of corporate loans and a 12.9% share of retail loans. Corporate loan portfolio expanded by 5.6% ytd to RUB 978.0 bln driven by new originations prompted by the rebounding business activity. Retail loan portfolio rose by 8.7% to RUB 144.9 bln due to high demand for consumer loans and the continuing growth of mortgage lending. Mortgage loan portfolio increased by 7.6% ytd to RUB 41.8 bln, driven by low interest rates and the bank's participation in state subsidised lending programmes.

The high quality of the loan portfolio and a revision of macroeconomic adjustments led to substantially smaller provisioning charges, decreasing the cost of risk by 1.4 pp to 0.4%. The share of non-performing loans (NPL90+) matched the level of 4Q2020, i.e. 3.1%.  A steadily high quality of the loan portfolio was also evidenced by a reduction in the share and volume of third (impaired loans) and second stage loans in the gross loan portfolio measured at amortised cost by 0.4 pp to 7.0%. The NPL90+ coverage ratio was 148.4%.

Customer deposits, which represent 61.2% of the bank’s total liabilities increased by 2.4% ytd to RUB 1,779.5 bln. Retail deposits increased by 2.1% in 1Q2021 to RUB 512.0 bln. Corporate deposits rose by 2.5% ytd to RUB 1,267.5 bln. The ratio of net loans to deposits was 60.2% for the first three months of 2021.

Debt securities issued grew by 31.0% to RUB 224.5 bln after EUR 600 mln senior Eurobonds were issued in January.

Tier 1 capital calculated in accordance with Basel III increased by 3.1% in 1Q2021 to RUB 240.5 bln driven by retained earnings. The bank’s total capital decreased by 0.5% ytd to RUB 330.6 bln due to a negative revaluation of OFZ held by it. Core Tier 1 / tier 1 / total capital adequacy ratios were 11.7% / 14.2% / 19.5%.


1 ROAE disregards the RUB 42.8 bln perpetual subordinated debt.

2 Loans and advances to customers at amortised cost.