KPIs – key performance indicators


The Bank conducts the planning and control of its current operations and assessment of the results of its business lines on the basis of a number of key performance indicators. The key ones relate to the development of corporate and retail business, compliance with the credit and funding policy, reliability of risk management, and increasing efficiency of operations.

Our growth plan is conservative because we prefer a steady, measured journey rather than being a victim of aggressive business expansion.

Dmitry Orlov
Chairman of the Board of Directors

Our goals KPIs Description Progress for 2013 Plans for 2014
Balanced credit and resource policy Net interest margin The ratio of net interest income to average assets 4.5% Achievement of the planned level due to active management of interest rates and maintaining the optimal balance sheet structure 4.5%
Asset growth Dynamics of the Bank’s balance sheet volume 1% Growth during the year was offset by repayments at the end of December and the write-off of NPLs 5-6%
Loan-to-Deposit ratio The ratio of the loan portfolio before provisions to the amount of attracted funds of retail and corporate clients 104% Increased (from 95% in 2012) efficiency in the use of resources due to advanced dynamics of the loan portfolio 100%±10%
Robust risk management Provisions/NPLs 90+ The ratio of provisions for loan impairment to loans in arrears for more than 90 days 108% An increase of 1% due to the conservative NPLs provisioning policy 120%
Cost of risk The ratio of charges for loan impairment to average loan portfolio before provisions 2.3% An increase of 47 b.p. due to provisions made for impaired large corporate loans <2%
Total Capital Adequacy according to Basel III (N 1.0) The ratio of of total capital to assets weighted by risk, calculated in accordance with the requirements of Basel III 11.3% Simple capital and assets structure contributed to capital adequacy ratios excess over the regulatory norms according to new requirements not less than 11%
Corporate clients Corporate loan portfolio growth rates Dynamics of the corporate loan portfolio before provisions 2% Growth below planned due to NPLs write-off and active loan repayments in the end of the year 4-5%
The share of SME portfolio in the corporate loan portfolio SME segment clients are legal entities and individual entrepreneurs whose credit exposure is less than 750 million roubles 58% Write-off of uncollectable NPLs resulted into SME share drop from 63% in 2012 60%
The share of the micro-business portfolio Legal entities and individual entrepreneurs, whose average monthly earnings and the credit exposure do not exceed 15 million roubles, and also other companies from the SME segment, that are considered microbusiness in the framework of the project according to the decision of the branch 0.9% As part of gradual introduction of microlending, 19 branches participated in the project 2.2%
Retail clients The growth of the retail loan portfolio Dynamics of retail loan portfolio before provisions 30% Development of cross-sales and active participation in partnership programmes turned out to be a driver of growth for the portfolio 13-15%
The growth of the mortgage portfolio Dynamics of mortgage portfolio before provisions including securitized mortgages 32% Growth driven by cooperation with constructors, developers and corporate clients on mortgage programmes 11-13%
The cross-sales ratio Number of products per customer 1.1 Intensified work with the existing client base, the use of remote sales channels 3
Increased operating efficiency The Cost-to-Income ratio The ratio of operating expenses to operating income before provisions 59.9% A decrease in non-interest income for the year led to an increase from 58.5% 58-60%
The growth rate of operating expenses Dynamics of the Bank’s operating expenses 1.4% Strict cost control and a partial effect from the initiatives on the project operating efficiency improvement 10-15%
The share of non-interest income in operating income The share of net non-interest income in operating income before provisions 35% Reduced from 39% due to lower fee and commission income resulted from reclass of a part of fee income to interest income and increasing competition in the segment 35-40%