LOCKO-Bank 9M 2013 IFRS Results

LOCKO-Bank announces its IFRS Results for 9M 2013.

The Bank’s equity has grown to RUB 10 billion in 9M 2013: RUB 500 million capital injection in February 2013 along with 24% retained earnings increase as of 1 October 2013 versus 31 December 2012 resulted in 19% equity increase. This allowed the Bank to maintain high level of capital adequacy ratio: total CAR at 16.5% and tier 1 CAR at 16.0% according to Basel.

Assets have grown by 10% reaching RUB 78.9 billion in 9M 2013.

The Bank’s net income increased by 20% versus 9M 2012 to RUB 1.1 billion in 9M 2013.

Net interest income rose by 30% compared to 9M 2012 and reached RUB 2 billion. Net interest margin reached 5.6% in 9M 2013, increased by 30 bps versus 9M 2012.

The Bank’s operating income (RUB 4 billion gross) went up 26% versus 9M 2012 owing to net interest income and net fee and commission income increase (+30% versus 9M 2012, respectively).

Gross loan portfolio increased by 13% as compared to end of 2012 and reached RUB 50.8 billion. Loans to SME amounted to 66% of total loan portfolio that comprised RUB 33.4 billion. Retail portfolio grew by 27% to RUB 17.4 billion and continued to expand its share in total loan portfolio standing at 34% as of 1 October 2013 (30% as of 31 December 2012). Net loans amounted to 62% of total assets in 9M 2013. In general, the Bank had well diversified loan portfolio with low level of overdue amounts, NPL ratio (loans with 30+ days overdue or evidence of financial weakening) was 3.9% as of 1 October 2013. LLR coverage ratio was 110%, cost of risk ratio was 1.9% in 9M 2013.

Securities portfolio went up 29% in 9M 2013 and amounted to RUB 18.4 billion versus RUB 14.3 billion as of 31 December 2012. High liquid securities maturing in less than 1 month comprised 97% of securities portfolio.

The Bank’s liabilities increased by 9% reaching RUB 68.9 billion. This growth was driven by an increase in current accounts by 10% (RUB 38.1 billion) and deposits and balances from banks and other financial institutions by 19% (to RUB 12.1 billion).

The Bank actively develops its network and has opened 7 new outlets in 9M 2013. Currently the Bank’s branch network comprises 5 branches, 30 subsidiary offices and 31 operational offices in 21 key economic regions of Russia.

Operating expenses grew by 29% reaching RUB 2.6 billion. The controlled increase was mainly driven by continued sales network growth and development of the Bank’s infrastructure. Cost to Income Ratio continued to improve and amounted to 46.4% as of 1 October 2013 (9M 2012 decline of 380 bps).

Pavel Voznesensky, Deputy Chairman of the Executive Board, commented:

“Efficiency growth is one of the main trends of LOCKO-Bank development in 9M 2013. Amid strong organic growth of key business segments – retail and SME lending, the Bank demonstrated efficiency ratios’ improvement, traditionally keeping low level of overdue loans.”

The Bank took the 13-th line in «The Most Reliable Top-100 Russian Banks» rating and 74-th line by net assets in 9M 2013 according to «Profile» - Russian analytical weekly magazine.