Group BFCO Press Release IFRS 2014
OREANDA-NEWS. Otkritie Financial Corporation Bank has published its audited consolidated IFRS financial statements for the year ended 31 December 2014.
The Supervisory Board of Otkritie Financial Corporation Bank approved its Condensed Interim Consolidated Financial Statements in accordance with the International Financial Reporting Standards (IFRS) for the year ended 31 December 2014.
Achievements of the Group in 2014
Net profit for 2014 amounted to RUB 5.9 billion.
Return on Equity (ROE) for 2014 amounted to 21.7% or 6.2% (including results on operations with securities). ROE for 2013 stood at 17.5%.
Revenue of the Group for 2014 amounted to RUB 67.1 billion (up 26.1% year-on-year).
Net interest income and net fee and commission income were the key growth drivers for the Group's operating income.
Net interest margin stood at 4.5% for 2014 (4.4% for 2013).
Net interest income for 2014 increased by 61.1% year-on-year to RUB 65.6 billion.
Net fee and commission income for 2014 increased by 46.8% to RUB 13.2 billion. The greater part of the Group's net fee and commission income accounted for settlement transactions (RUB 5.8 billion), documentary operations (RUB 3.0 billion) and commissions on agents' fees (RUB 2.4 billion). The retail business segment earned about the half of the total net fee and commission income of the Group: for 2014 net fee and commission income of the retail business segment increased by 60.5% year-on-year and reached RUB 6.1 billion.
Operating expenses for 2014 increased by 10.4% increase as compared to the Pro-forma1 results for 2013. Staff expenses accounted for 60.3% of total Group's operating expenses.
The Cost-Income Ratio (operating expenses to operating income before provision for impairment and results on operations with securities) stood at 43.7% for 20142 (41.3% in 2013).
Sustainable growth of assets
The Group's total assets increased by 88.2% in 2014 to reach RUB 2,595.9 billion as at 31 December 2014 (53.4% growth year-on-year excluding foreign currency revaluation).
The Group's net loan portfolio demonstrated a 103.0% increase year-on-year (68.4% increase year-on-year excluding foreign currency revaluation) and reached RUB 1,784.8 billion or 68.8% of the Group's total assets as at 31 December 2014 (RUB 879.3 billion or 63.8% as at 31 December 2013).
The high rates of growth of the Group's business were balanced by its conservative risk management policies. The level of non-performing loans stood at 2.6% as at 31 December 2014, which is one of the best ratio achieved in the market (2.9% as at 31 December 2013).
The loan loss provision (LLP) ratio stood at 2.2% as at 31 December 2014 (3.6% as at 31 December 2013). Cost of risk ratio amounted to 1.9% for 2014 (1.2% for 2013).
The Group's total liabilities reached RUB 2,438.0 billion as at 31 December 2014, a 96.7% increase year-on-year (59.7% increase year-on-year excluding foreign currency revaluation).
The Group's customer accounts totalled RUB 1,023.0 billion as at 31 December 2014, a 30.9% increase year-on-year (13.0% increase year-on-year excluding foreign currency revaluation). The volume of term deposits and the share of current accounts as a proportion of the total amount of customers' funds were 78.7% and 21.3%, respectively. Funds of corporate customers accounted for 57.9% as at 31 December 2014, while the share of individuals and the customers from the small business segment amounted to 34.8% of customer accounts.
As at 31 December 2014, the loan to deposit ratio including promissory notes issued to clients stood at 166.1%3 (106.0% as at 31 December 2013).
Subordinated debt amounted to RUB 96.9 billion, or 4.0% of the Group's total liabilities, as at 31 December 2014.
Total capital adequacy ratio was 12.4% as at 31 December 2014.
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