Banking group Otkritie has released its audited consolidated financial statement drafted under IFRS for 2016, which Otkritie FC Bank's supervisory board approved on April 24, 2017.
As the group said in a press release, annual net profit amounted to Rub 1.5 bln. It should be specified that, according to the financial statement, FY15 IFRS net profit topped Rub 6.6 bln, i.e. the indicator declined by 4.4x y-o-y.
The group's total operating income before provisions against asset impairment amounted to Rub 84.7 bln. Net interest income, net trading income and net commission income account for 41.1%, 37% and 15.2% of total operating income, respectively.
Net interest income amounted to Rub 68.6 bln (including income (Rub 33.8 bln) derived from swap transactions), and net interest margin improved from 3.8% to 4.4%.
The group's net trading income came to Rub 29.8 bln in 2016, with most of it coming from swap transactions.
Net commission income jumped 10.3% to Rub 12.9 bln, with Rub 7.8 bln falling to payment operations, Rub 2.2 bln to documentary operations, and Rub 1.1 bln to cash operations.
Operating expenses grew 2.6% to Rub 47.3 bln in 2016. Payroll expenses accounted for 56% of total operating expenses.
The cost/income ratio (operating expenses against operating income excluding asset impairment provisions) came in at 55.9% compared to 44.4% in 2015.
Total assets held by banking group Otkritie declined by 11.8% (excluding currency revaluation) to Rub 2,702.7 bln as of December 31, 2016. As a matter of fact, total assets given currency revaluation dropped by 19.6%.
The group's credit portfolio, net of repurchase transactions, shrank by 8.3% to Rub 858.2 bln (or by 11.7%, taking into account currency revaluation).
Securities investment amounted to Rub 500.9 bln as of December 31, 2016, or 18.5% of the group's assets (Rub 421.6 bln, or 12.5%, as of end 2015). The group emphasized that the securities portfolio is a source of liquidity for the group (roughly 82% of total securities investment falls to instruments from the Bank of Russia's Lombard List).
The group's total liabilities declined 15% to Rub 2,470.8 bln (the indicator actually slid by 21.5%, taking into account currency revaluation). Client funds came to Rub 1,187.4 bln (-1.4% y-o-y, and -5.5%, including currency revaluation). Term deposits equal 80.1% of total client funds, and 19.9% falls to check accounts. Corporate customers account for 43.2%, and 51.3% of client funds to individuals and small businesses.
As of December 31, 2016 the group's total capital adequacy ratio stood at 17.7%.
"Given the macroeconomic environment, we had no business expansion plans in 2016, and focused on the measures that will allow the group to expand successfully in the longer run and to increase its market share once the market is on the way to recovery," Otkritie Bank management board chairman Evgeny Dankevich commented. "We have completed Khanty-Mansiysk Otkritie Bank's takeover and have set up the biggest universal private bank that is on the list of systemically important banks and has a stable diversified business structure".
