LOCKO-BANK announced its consolidated financial statements for the first half of 2018 according to IFRS with the KPMG Independent Auditors’ Report.
LOCKO-Bank’s Profit before tax amounted to RUB 0.8 bn and net profit - RUB 0.6 bn for six months of 2018.
LOCKO-Bank’s key indicators of statement of profit or loss for the six-month period ended June 30, 2018:
- Total profit amounted to RUB 0,6 bn, decreasing by 44,4% compared to the same period of 2017.
- Net interest income performed 9,2% growth for the first half of 2018 compared to the same period of 2017 and reached RUB 2,5 bn.
- Net fee and commission income grew up to RUB 1,3 bn, increasing by 49.6% compared to the same period of the last year.
- Net loss from operations with financial instruments at fair value, including financial assets available-for-sale amounted to RUB 0,3 bn versus net income of RUB 0,4 bn last year.
- Net interest margin remains at a consistently high level and amounts to 6,5% for the first half of 2018.
- Net provision costs increased by 5,6%, up to RUB 0,6 bn.
- Operating expenses grew by 13,9% and amounted to RUB 2,3 bn compared to RUB 2,0 bn in 1H2017.
Review of LOCKO-Bank’s key financial indicators:
- Total loan portfolio net of allowance for impairment decreased by 2,0% and amounted to RUB 46,8 bln.
- Assets decreased by 5,2% to RUB 81,2 bn basically due to decrease in investment securities portfolio.
- Current accounts and deposits from customers decreased by 3,5% and amounted to RUB 58,5 bn.
- Shareholders’ Equity increased by 1,4% up to RUB 16,3 bn in 1H2018.
Key financial ratios, %:
- Return on equity (ROE) amounted to 7,5% decreasing by 8,2 p.p. in comparison to 2017.
- Return on assets (ROA) amounted to 1,4% compared to 2,9% in 2017.
- Cost to income (CTI) amounted to 63,6% according to the results for the first half of 2018 and increased by 13,4 p.p. in comparison with the previous year.
- Capital adequacy ratio under Basel Capital Accord amounted to 23.2% as of the end of the first half of 2018 and increased by 2,8 p.p. in comparison with figures at the end of 2017.
Operating income decreased by 5.6% compared to the first half of 2017 and amounted to RUB 3.6 bn.
The share of net fee and commission income in Operating income structure grew to 37.2% compared to 23.5% in the first half of 2017.
Retail loan portfolio net of allowance for impairment amounted to RUB 37.6 bn performing a 14.3% growth. The growth of the loan portfolio is subject to increase in the incoming flow of loan applications as a result of the launch of wide advertising company with the same level of approval of applications and risk appetite. The high quality of the loan portfolio continues to be a priority for the Bank. Thus, according to the results of the first half of 2018, the share of non-performing loans in the loan portfolio (NPL 90+) decreased and amounted to 6.5%.
As of June 30, 2018 the Bank was represented by 50 branches in 21 economic regions of Russia.
Alexey Parfenenok, CFO commented:
«In the first half of 2018, the results of LOCKO-Bank demonstrate the consistent implementation of the Bank's strategy for the formation of a stable client business along with credit risk minimization, which is confirmed by the growth in the share of fee and commission income in the structure of operating profit. Maintaining the interest margin at a consistently high level, together with the growing quality of the loan portfolio in each of the individual segments, allows the Bank to successfully overcome periods of instability in the financial markets.»