Group BFCO 1H 2015 Interim Financial Results
On 28 August 2015, 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 June 2015 and for the six months ended 30 June 2015.
Condensed interim consolidated financial statements of the Bank comprise the accounts of the banks included in Otkritie FC Banking Group (the “Group”) – PJSC Otkritie Financial Corporation
Bank and PJSC Khanty-Mansiysk Otkritie Bank.
Total operating income of the Group in the first half of 2015 increased by 37.4% compared to 1H 2014 and reached RUB 50.5 billion.
Net profit in the first half of 2015 amounted to RUB 8.3 billion and was higher by 33.9% than net profit earned in the 1H 2014 (RUB 6.2 billion).
Return on Equity attributable to equity holders (ROE) in the first half of 2015 amounted to 14.8% and was higher than ROE reported for 2014 (6.2%).
Net interest income and net trading income were the key growth drivers for the Group’s operating income, accounting for 47.5% and 38.7% of total operating income.
Net interest income in the first half of 2015 amounted to RUB 23.9 billion.
Net trading income in the first half of 2015 amounted to RUB 20.2 billion. Trading income on operations with securities in the first half 2015 amounted to RUB 14.3 The greater part of the Group’s trading income on operations with securities accounted for positive revaluation of fixed income securities portfolio in the first half 2015.
Net fee and commission income in the first half 2015 amounted to RUB 5.4 billion. The greater part of the Group’s net fee and commission income accounted for settlement transactions (RUB 2.2 billion), documentary operations (RUB 1.3 billion) and cash operations (RUB 1.1 billion).
Operating expenses in the first half 2015 increased by 1.2%1 as compared to the Pro-forma results for the first half 2014 and totaled to RUB 21.5 billion. 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) was 42.6% (54.8%). The decrease was due to outpace growth of operating income over operating expenses.
As at 30 June 2015, the Group’s total assets amounted to RUB 3,104.9 billion, demonstrating a 19.6% increase compared to 31 December 2014. Net loan portfolio accounted for 75.0% of the total assets as at 30 June 2015 (68.8% as at 31 December 2014).
As at 30 June 2015, the Group’s net loan portfolio increased by 30.5% compared to 31 December 2014, reaching RUB 2,329.9 billion.
The loan loss provision (LLP) ratio stood at 2.5% as at 30 June 2015 (2.2% as at 31 December 2014). Cost of risk ratio amounted to 3.2% (2.4% as at 31 December 2014). Non-performing loans composed 3.8% (3.5%2 as at 31 December 2014).
The Group’s total liabilities amounted to RUB 2,904.8 billion as at 30 June 2015, increased by by 19.1% compared to 31 December 2014. Customer accounts accounted for 43.8% of the Group’s total liabilities as at 30 June 2015.
Customer accounts including promissory notes issued to clients increased by 19.9% over the six month period and composed RUB 1,288.5 billion, comprising 44.4% of the Group’s total liabilities as at 30 June 2015 (44.1% or RUB 1,074.8 billion in 2014).
Other sources of funding remained unchanged: subordinated debt amounted to RUB 89.1 billion or 3.1% of the Group’s total liabilities as at 30 June 2015.
The Tier 1 Capital Adequacy Ratio composed 11.6% as at 30 June 2015 (8.3% as at 31 December 2014). Total capital adequacy ratio was 17.5% as at 30 June 2015 (12.4% as at 31 December 2014). The Group’s total equity increased by 26.7% as compared to the year end of 2014 and as at 30 June 2015 amounted to RUB 200.0 billion.
See consolidated financial statements as at 30 June 2015 at http://ir.open.ru/.
1 Pro-forma means the first half 2014 financial results of Otkritie Financial Corporation Bank assuming that the consolidation of Petrocommerce Bank took place on 1 January 2014.
2 Ratio is calculated assuming that the consolidation of Petrocommerce Bank took place on 1 January 2014.