LOCKO-BANK announced its financial results for full year 2018 according to IFRS: Net income amounted to RUB 1.9 bln

LOCKO-Bank announces its consolidated Financial Statements for full year (FY) 2018 in accordance with International Financial Reporting Standards (IFRS), as confirmed by auditors KPMG.

In 2018 LOCKO-Bank’s profit before tax amounted to RUB 2.3 bln and net profit - RUB 1.9 bln.

Net interest income showed an increase of 11.5% compared to the previous year and reached RUB 5.5 bln.

Net fee and commission income reached RUB 3.5 bln, up by 68.9% from the previous year.

Net interest margin remained stable at a high level and was 6.8% in 2018.

Operating income increased by 6.8% compared to FY2017 and amounted to RUB 8.5 bln.

The share of net fee and commission income in operating income increased to 41.1% compared to 26.0% for 2017.

Retail loan portfolio net of allowance for impairment in 2018 amounted to RUB 45.9 bln , an increase of 39.9%. The growth of the loan portfolio is a consequence of an increase in the incoming flow of loan applications as a result of the launch of federal advertising company, while maintaining a conservative approach to credit risk assessment. The high quality of the loan portfolio continues to be a priority for the Bank.

Review of LOCKO-Bank’s key financial indicators and ratios:

• Loan portfolio net of allowance for impairment increased by 13,3% amounted to RUB 54,1 bln.
• Current accounts and deposits from customers increased by 8% in 2018 and reached RUB 65.6 bln.
• Shareholders’ Equity increased by 8.3% and amounted to RUB 17.4 bln.
• Cost to income (CTI) amounted to 58.6% increased by 8 percentage points in comparison with the previous year.
• In FY2018 total capital adequacy ratio under Basel Capital Accord amounted to 22.7% increased by 2 percentage points in comparison with the previous year.

As for December 31, 2018 the Bank was represented by 48 branches in 21 economic regions of Russia.

Alexey Parfenenok, CFO commented: