LOCKO-Bank announced its financial results for first half of 2019 according to IFRS: Net income amounted to RUB 0,8 bn

LOCKO-Bank announced its consolidated financial statements for the first half of 2019 according to International Financial Reporting Standards (IFRS) as part of the PWC review.

For the six months ended June 30, 2019, LOCKO-Bank’s Profit before tax amounted to RUB 1.0 bn and net profit - RUB 0.85 bn

Net interest income amounted to RUB 2,8 bn, increasing by 9% compared to the same period of the last year.

Net fee and commission income amounted to RUB 1,5 bn, increasing by 13,4% compared to the same period of the last year.

Net interest margin remains at a consistently high level and amounts to 6,4%

Operating income increased by 29,1% compared to the first half of 2018 and amounted to RUB 4,7 bn.

The share of net fee and commission income in Operating income structure remains at a consistently high level and amounts to 32,7%

Retail loan portfolio net of allowance for impairment amounted to RUB 57,5 bn performing a 6,2% growth

Capital adequacy ratio under Basel Capital Accord amounted to 20.0%

Alexey Parfenenok, CFO commented:

«In the first half of 2019, LOCKO-Bank continues to realize strategic goals and improves performance in the main business areas. The Bank implements a business plan for indicators and revenue items, demonstrating a consistently high interest margin. Retail lending remains one of the key areas of LOCKO-Bank's business. In response to growing uncertainty in the market, the bank slowed down the growth rate of its retail portfolio and does not plan to significantly increase it in the near future. It is worth noting that over 6 months the bank exceeded the plan for the volume of issued guarantees, which allowed to maintain a high share of commission income in the structure of operating income. We continue to improve our product offerings and expand the digital segment, expanding the range of services for various consumer groups. The Bank will continue to implement key strategic projects, develop a digital ecosystem and technological infrastructure in order to strengthen its position in providing digital services to customers.»