Net interest income

In 2013, the Group’s interest income increased 27.8% to RUB 1.48 trillion. Excluding the impact of DenizBank, the growth amounted to 19.5%.

Most of this growth came from the expansion of the Group’s loan portfolio, which supplied more than 80% of the growth in interest income with retail and corporate lending contributing approximately equally.

Analysis of changes in interest income

закрыть

RUB bn

Volume factor

Interest rate factor

Change in interest income

ASSETS

Loans to legal entities

135.5

13.3

148.8

Loans to individuals

123.9

25.4

149.3

Due from banks, correspondent accounts and overnight placements with banks

5.9

(1.1)

4.8

Debt securities

23.1

(4.7)

18.4

Change in interest income

288.4

32.9

321.3


закрыть

2013

2012

Average amount for the year, RUB bn

Interest income, RUB bn

Average yield,%

Average amount for the year, RUB bn

Interest income, RUB bn

Average yield,%

Loans to legal entities

8 707,1

842.6

9.7%

7 284,8

693.8

9.5%

Loans to individuals

3 195,5

493.1

15.4%

2 348,9

343.8

14.6%

Due from banks, correspondent accounts and overnight placements with banks

801.5

11.5

1.4%

426.9

6.7

1.6%

Debt securities

1 913,6

131.4

6.9%

1 588,9

113

7.1%

Working assets, total

14 617,7

1 478,6

10.1%

11 649,5

1 157,3

9.9%

Provision for loan impairment

(592,1)

(600,4)

Non-interest-earning assets

2 124,7

1 650,3

Total assets

16 150,3

12 699,4

The increase in loan yields explains 12.0% of the total growth of interest income of the Group in 2013, with the yield on loans to individuals and legal entities contributing to a 7.9% and 4.1% of total increase in interest income, respectively.

Quarterly loan yields

Interest expense increased 36.2% y-o-y to RUB 616.4 bn in 2013. Excluding the impact of DenizBank, interest expense grew 30.0%.

The main driver of the interest expense growth was the rise in the amounts due to individuals. This factor accounts for more than 30% of the increase in interest expense. The increase in amounts due to corporate customers contributed to a 16.8% rise in interest expense.

The increase in debt securities in issue, amounts due to banks and other borrowed funds has contributed to a RUB 46.5 bn upsurge in interest expense for 2013, or a 28.4% rise in total interest expense.

Analysis of changes in interest expense

закрыть

RUB bn

Volume factor

Interest rate factor

Change in interest expense

LIABILITIES

Due to individuals

(52.7)

(28.4)

(81.1)

Due to corporate customers

(27.6)

(9.6)

(37.2)

Subordinated debt

(5.8)

1.6

(4.2)

Other borrowed funds

(5.1)

3.3

(1.8)

Debt securities in issue

(17.2)

(2.9)

(20.1)

Due to banks

(18.4)

(1.1)

(19.5)

Change in interest expense

(126.8)

(37.1)

(163.9)


закрыть

Average amount for the year, RUB bn

Interest and similar expense, RUB bn

Average cost, %

Average amount for the year, RUB bn

Interest and similar expense, RUB bn

Average cost,%

Due to individuals

7 474,0

343.6

4.6%

6 244,5

262.5

4.2%

Due to corporative customers

3 491,2

127.7

3.7%

2 676,0

90.5

3.4%

Subordinated debt

419.0

25.1

6.0%

327.9

20.9

6.4%

Other borrowed funds

544.8

8.7

1.6%

313.2

6.9

2.2%

Debt securities in issue

815.7

45.2

5.5%

483.6

25.1

5.2%

Due to banks

1 293,9

66.1

5.1%

928.1

46.6

5.0%

Total liabillities

14 038,6

616.4

4.4%

10 953,3

452.5

4.1%

The rise in the cost of liabilities also contributed to the rise in interest expense of the Group. The increase in the cost of amounts due to customers contributed to a RUB 38 bn rise in interest expense, or 23.2% of the total increase in interest expense for the period, with the growth in the cost of amounts due to individuals being the main driver. The movement in other liabilities did not have a significant impact on interest expense of the Group.

Quarterly cost of interest-bearing liabilities

In 2013, the net interest margin of the Group declined by 20 basis points y-o-y; however, it remained high at 5.9%.

The main factors that negatively affected the margin were a reduction in the share of loans to legal entities in interest-earning assets and the rising ratio of interest-bearing liabilities to interest-earning assets. At the same time, the increase in loan yields was entirely offset by an increase in the cost of amounts due to customers.

The following factors affected net interest margin in 2013

закрыть

2012 net interest margin

6.1%

Return on loans to legal entities

0.1%

Return on loans to individuals

0.2%

Return on amounts due from banks

-

Return on securities

-

Structure of interest-earning assets

-0.1%

Cost of amounts due to corporate customers

-0.1%

Cost of amounts due to individuals

-0.2%

Cost of amounts due to banks

-

Cost of debt securities in issue and subordinated debt

-

Structure of interest-bearing liabilities

-

Ratio of interest-earning assets to interest-bearing liabilities

-0.1%

2013 net interest margin

5.9%

Quarterly interest margin, %

Fee and commission income and expense

The Group’s net fee and commission income increased 29.4% to RUB 220.3 bn in 2013. Excluding the impact of DenizBank, the growth amounted to 24.1%.

The main driver of net fee and commission income growth were fees from bankcards operations, which increased 47.6% for the year to RUB 76.6 bn.

Cash and settlement transactions with individuals and legal entities increased 13.9% to RUB 109.6 bn in 2013.

Agent commissions on selling insurance contracts and fees from issuing guarantees also delivered strong growth.

Fee and commission income and expense

закрыть

RUB bn

2013

2012

Change, RUB bn

Change, %

Bankcard operations

76.6

51.9

24.7

47.6%

Cash and settlements transactions with individuals

57.5

48.7

8.8

18.1%

Cash and settlements transactions with legal entities

52.1

47.5

4.6

9.7%

Agent commissions on selling insurance contracts

28.9

17.0

11.9

70.0%

Guarantees issued

10.0

7.3

2.7

37.0%

Operations with foreign currencies

3.8

5.2

-1.4

-26.9%

Cash collection

5.6

5.1

0.5

9.8%

Transactions with securities

3.4

2.6

0.8

30.8%

Other

6.9

3.9

3.0

76.9%

Fee and commission expense

-24.5

-18.9

-5.6

29.6%

Net fee and commission income

220.3

170.3

50

29.4%

Top of page

Tools:

Download center Add to My Report 0 My Report Print this Page Download in PDF
  • закрыть

    ОТПРАВИТЬ ССЫЛКУ ПО E-MAIL


    Ваше имя

    Ваш e-mail

    E-mail получателя

    Комментарий

    Отправить
Interactive analysis Feedback Browsing history
FEEDBACK

Name*

Your E-mail*

Message*

CAPTCHA

Type the characters