LOCKO-BANK announced its financial results for III quarter of 2019 according to IFRS: Net profit amounted to RUB 1.2 bln

LOCKO-Bank announced its consolidated financial statements for the third quarter of 2019 according to International Financial Reporting Standards (IFRS) as part of the PWC review. For the nine months ended September 30, 2019, LOCKO-Bank’s Profit before tax amounted to RUB 1.5 bn and net profit - RUB 1.2 bn

Key financial indicators for the III quarter of 2019:

Net interest income amounted to RUB 4.1 bn, an increase of 3.2% compared to the same period last year.

Net profit increased by 2.1% compared to the same period last year to RUB 1.2 bn.

Net interest margin remains at a consistently high level and amounts to 6.3%.

Operating income increased by 18.4% compared to the same period last year and amounted to RUB 6.8 bn.

The share of net fee and commission income in Operating income structure remains at a consistently high level and amounts to 30%.

The total loan portfolio, excluding the estimated reserve for expected credit losses, grew by 3.9% and amounted to RUB 56.2 bn.

Capital adequacy ratio under Basel Capital Accord amounted to 20.3%.

The main events that occurred during the 9 months of 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 those regions where the bank does not have physical branches has been launched in 35 cities of Russia
• In April, LOCKOBusiness was featured on an interactive map of Moscow’s digital ecosystems. This map is part of a research conducted by the ICT.Moscow platform with the support of the Moscow Government. The research involved companies from 11 industries representing digital platforms.
• In April, the bank launched express lending to individual entrepreneurs and legal entities of the small business segment - it became possible to obtain a loan of up to 2 million rubles without providing financial statements.
• In May, LOCKOBusiness expanded its line of 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 affirmed LOCKO-Bank a credit rating of BBB + (RU); the outlook is stable.
• In September, LOCKO-Bank’s Internet Banking for Business entered the TOP-15 of the leading Internet banks for small and medium-sized businesses, ranking 11th in the Business Online Banking 2019 research in the CIS and the Caucasus.
• In September, the LOCKO-Mobile application was among the top 10 best Russian banking mobile applications according to a research conducted by Go Mobile digital agency in conjunction with Banki.ru.
• In September, Fitch Ratings upgraded LOCKO-Bank's long-term issuer default ratings to BB- from B +. The outlook on the ratings is “stable”.

Commenting on the results, the Chairman of the Board of Loko-Bank Davydik Viktor Yulianovich noted:

“The third quarter of 2019 was successful for Loko-Bank, the main financial indicators showed positive dynamics in accordance with our forecast. The bank shows a high result, ensured by the wide diversification of the business, continuous improvement of products, and improvement of the quality of customer service. The events of nine months demonstrate that the external environment highly appreciated the work done by the bank. We are confident that the consistent and effective implementation of the strategy will allow us to reach a new level of the technological effectiveness and meet the high requirements of a competitive environment. "