LOCKO-Bank announced its financial results for full year 2019 according to IFRS: Net profit amounted to RUB 2.0 bln

LOCKO-Bank announces its consolidated Financial Statements for full year (FY) 2019 in accordance with International Financial Reporting Standards (IFRS), as confirmed by auditors KPMG.

In 2019 LOCKO-Bank’s profit before tax amounted to RUB 2.5 bln and net profit - RUB 2.0 bln.

Key financial indicators for 2019:

• Net interest income remains at a consistently high level and amounts to 5.6 billion rubles.
• Net profit increased by 9.9% compared to the same period last year to 2.0 billion rubles.
• Net interest margin remains at a consistently high level and amounts to 5.9%
• Net income from trading and investment securities for 2019 amounted to 1.0 billion rubles.
• Operating income increased by 10.6% compared with last year and amounted to 9.4 billion rubles.
• Аssets in 2019 increased by 34.4% to 113.4 billion rubles, due to an increase in the portfolio of securities.
• The total loan portfolio, net of the estimated reserve for anticipated credit losses, amounted to 53 billion rubles.
• Funds in customer accounts for 2019 increased by 3.4% and reached 67.8 billion rubles.
• The bank's own funds for 2019 increased by 7.5% to 18.7 billion rubles
• Capital adequacy ratio by Basel standards was 20.9%.
• Return on equity (ROE) for 2019 was 11.5% compared to 11.2% in 2018.
• Cost to income ratio (CTI) according to the results of 2019 amounted to 50.5% compared to 58.6% in 2018
• Сost of risk (COR) in 2019 was 3.6% compared to 2.3% in 2018.

As of December 31, 2019 LOCKO-Bank has branch network consisted of 41 branches in 21 regions of Russia

Key events in 2019:

• In February, LOCKO-Bank expanded the geography of providing services to small and medium-sized businesses. The project on remote servicing of SMEs in regions where the bank has no branches has been launched in 35 cities of Russia.
• In May, LOCKO-Bank expanded its digital services and launched two new products - online business registration and online accounting.
• In June, the international rating agency Moody’s Investors Service confirmed the long-term rating of bank deposits in national and foreign currencies - “B1”, raising the outlook from “Stable” to “Positive”.
• In August, the Analytical Credit Rating Agency (ACRA) affirmed LOCKO-Bank’s credit rating of BBB + (RU), with a Stable outlook.
• In September, LOCKO-Bank’s Internet banking for business entered the TOP-15 of the leading online banking for small and medium-sized businesses, ranking 11th in the Business Online Banking 2019.
• In September, the LOCKO-Mobile mobile application was among the top 10 best Russian banking mobile applications according to a research by Go Mobile digital agency.
• In September, Fitch Ratings upgraded LOCKO-Bank's long-term issuer default ratings to BB- from B +. The outlook on the ratings is Stable.
• В декабре Локо-Банк вошел в ТОП банков с лучшими тарифами для малого бизнеса по итогам исследования Markswebb Business Banking Fees Monitoring. Пакет «Свой бизнес» от Локо-Банка вошел в число 9 лучших банковских тарифов, абсолютно бесплатных для ИП. Кроме того, банк занял 2 место по стоимости обслуживания торговых точек с пакетом «Новый старт».
• In December, LOCKO-Bank entered the TOP banks with the best rates for small businesses according to a research by Markswebb Business Banking Fees Monitoring. LOCKO-Bank “Own Business” is among the 9 best bank rates. In addition, the bank took 2nd place in terms of the cost of servicing retail outlets with the “New Start” tariff.

The Chairman of the Board of LOCKO-Bank Viktor Davydik commented:

“At the end of 2019, LOCKO-Bank demonstrated the growth of key financial indicators and business sectors, proving the sustainability of our business model. Net income increased by 9.9% compared to last year. We continue to focus on improving business performance, maintaining high return on assets with constant control of costs and risks. The bank’s goal is the continuous improvement of products and services that make the financial side of customers' lives easier, increase the attractiveness of daily banking services, develop the technological infrastructure and develop the digital segment and distance services for different consumer groups. We are sure that the consistent implementation of the approved strategy will serve the further growth of the business. ”