LOCKO-BANK announced its consolidated financial statements for the first half of 2017 according to IFRS with the KPMG Independent Auditors’ Report.
LOCKO-Bank’s key indicators of statement of profit or loss as of June 30, 2017:
Review of LOCKO-Bank’s key financial indicators:
Key financial ratios, %:
Operating income increased by 14% compared to the first half of 2016 and amounted to RUB 3.9 bn. The share of net fee and commission income was 23.1% compared to 19.3% in the first half of 2016.
Retail loan portfolio amounted to RUB 25,6 bn performing a 21.8% growth. The growth of the loan portfolio is due to the modernization of business processes and start of an advertising campaign. At the same time, the bank maintained a conservative approach to credit risk assessment .
SME loan portfolio slightly decreased by 12% and amounted to RUB 12.3 bn. The share of loans to SME totaled 26.8% from Bank’s total loan portfolio.
The high quality of the loan portfolio is one of the bank's priorities. Based on the results of the first half of 2017, the share of non-performing loans in the loan portfolio (NPL 90+) increased by 0.2 percentage points compared to 2016 and amounted to 7.9%.
Current accounts and deposits from customers grew by 3.5% to RUB 55,9 bn and became 90.2% of total liabilities
As for June 30st, 2017 the Bank was represented by 54 outlets in 21 economic regions of Russia.
Stanislav Boguslavsky, Chairman of the Board of Directors, commented:
«In a stagnant economy, Locko-Bank continues to develop its business, focusing on modernization of business processes and development of technologies. This year, the Board of Directors of Locko-Bank approved the IT-strategy, according to which digital technologies have become the number one priority for all business areas. The final goal is the modernization of the bank in the format of the IT-company and the formation of a wide range of products available in digital channels.
Also, the bank has been consistently profitable for many years, including the most difficult crisis periods. At the same time, we manage to keep the interest margin at a high level, and increase the share of commission income in the structure of the bank's revenues. A conservative approach to risk assessment allows us to maintain a consistently low level of NPL 90+ while maintaining the quality of the loan portfolio».