OREANDA-NEWS. April 22, 2015. AK BARS Bank has announced its IFRS Consolidated Financial Statements for the year ended 31 December 2014

Income statement highlights:

Despite the significant slowdown of the economic growth in 2014, the Bank managed to maintain the net interest income almost at previous year level increasing net commission income.

By the end of 2014, the Bank showed negative financial result compared to the net profit of 2.4 bln. rub. a year earlier. This was mainly driven by the reduction of operating income (before provisions) by 31.1% to 9.3 bln. rub. alongside with an increase in operating expenses by 9.9% to 8.5 bln. rub.

The Bank`s financial result under IFRS differs from the outcome in compliance with the Russian Accounting Standards (RAS). Recent measures undertaken by the Central Bank to maintain the stability (strength) of Russian Financial sector had the positive effect on the Bank`s statement, while IFRS method is not supposed to account these exemptions.

Net interest margin declined insignificantly by 0.3 basis points to 2.3%. This appeared as a result of an increased cost of funding due to the increase of the key rate of the Central Bank of the Russian Federation from 5.5% to 17% per annum. The Central Bank’s share in the Bank’s liabilities increased during the reporting year to 8.3% from 4% at the beginning of the year.

Despite the significant deterioration in the economic conditions, the Bank managed to keep the income from the core business. Net interest income for 2014 remained at the previous year level and amounted to 7.5 bln. rub. (before provisions). Net fee and commission income increased by 8.1%, to 1.7 bln. rub.