Financial highlights

The Bank’s interest income in 2013 increased by 14.5% to 19 billion roubles, achieved by higher interest rates on SME loans as well as strong expansion of retail lending. Interest expenses gained 26% during the year on the background of the revaluation of deposit portfolio that began in the end of 2012. As a result, net interest income grew at an annual rate of 5% and amounted to 9.5 billion roubles.

Fee income in 2013 amounted to 5.2 billion roubles, 6% lower than in the previous year. The reduction was due to increased market competition in a number of products that generate fee income, as well as the reclassification in Q4 of a part of fee income on the basis of the effective interest rate method.

Owing to the strict cost control and implementation of some improvements within the operating model optimisation, the Bank’s operating expenses were preserved almost at the level of 2012, amounting to 8.8 billion roubles (+1.4% compared with the previous period). Employee costs for the year increased by only 2.9% to 5.3 billion roubles, or 59.9% of the total operating costs of the Bank.

Operating profit before provisions was reduced in comparison with 2012 by 4.4% to 5.9 billion roubles, mainly as a consequence of the weaker dynamics of non-interest income. The necessity to make significant charges to provisions during the accounting period linked to the impairment of two large credit risks resulted in a reduction of the Bank’s net profit in 2013 by 36% to 1.5 billion roubles, with a return on equity at 7%.

Interest income, RUB billion

Net interest income*, RUB billion

* Before provisions.

Operating expenses,
RUB billion

Operating profit before provisions, RUB billion

Fee and commission income*,
RUB billion

* The results incorporate RUB 347 million fees reclassification from net fee income to future interest income in Q4 2013
в 4 квартале 2013 года

Net fee and commission income*, RUB billion

* The results incorporate RUB 347 million fees reclassification from net fee income to future interest income in Q4 2013
в 4 квартале 2013 года