LOCKO-Bank publishes Consolidated Interim Condensed Financial Statements for the six-month period ended 30 June 2014 with the Independent Auditors’ Report on Review of the Statements by ZAO KPMG.
The Bank’s equity amounted to RUB 10.5 billion in 1H2014. Due to internal capital generation the Bank maintained high level of capital adequacy ratio: total CAR at 17.0% and tier 1 CAR at 16.6% under Basel Capital Accord.
Total Assets were RUB 79 billion as of 30 June 2014.
Net income amounted to RUB 411 million in 1H2014.
Net interest income rose by 28% compared to 1H2013 and reached RUB 2.4 billion. Net interest margin was 6.4% in 1H2014, increased by 110 bps versus 1H2013.
Operating income (around RUB 3 billion before provisions) increased by 19% compared to 1H2013, it was mainly driven by net interest income growth and net fee and commission income positive dynamic, up 13% and 12% versus 1H2013, respectively.
Gross loan portfolio reached RUB 53 billion in 1H2014, growing by 4% from the end of 2013. SME loans totaled to RUB 34.4 billion, up 5% versus 2013, amounted to 65% of total loan portfolio. Retail portfolio was RUB 18.6 billion, up 3% compared to 2013. Loans to individuals amounted to 35% of total loan portfolio in 1H2014 versus 36% in 2013. Net loans comprised 63% of total assets. NPL ratio (90+ days overdue) was 4.8%, LLR coverage ratio was 135%, and cost of risk was 2.1% of average gross loans in 1H2014.
Securities portfolio amounted to RUB 19 billion in 1H2014. Securities portfolio of the Bank included 74% of high-rated fixed income securities (BBB- to A+).
Total liabilities were RUB 68 billion in 1H2014. There were no substantial changes in the key liability items versus 2013. Thus, current accounts and deposits from customers totaled to RUB 36.6 billion, deposits and balances from banks and other financial institutions - RUB 11.5 billion, amounts payable under repurchase agreements - RUB 11.5 billion.
Operating expenses totaled to RUB 2.5 billion in 1H2014, increasing versus 1H2013 due to impairment losses growth amid deteriorating macroeconomic conditions. The Bank continued to improve cost efficiency indicators - Cost to Income Ratio declined to 44.6% versus 49.9% in 1H2013.
The Bank’s branch network comprised 63 outlets as of 30 June 2014, operating actively in 21 key economic regions of Russia.
Pavel Voznesenskiy, Deputy Chairman of the Executive Board, commented:
“LOCKO-Bank demonstrated good dynamic of key figures, keeping systematic work to improve economic efficiency in the reporting period. In the context of macroeconomic instability the Bank has been developing key business areas - SME and retail lending progressively, focusing on low-risk segments and maintaining credit quality at a good level”.