Key results:
- the Bank’s total assets grew by 10.05% to RUB 130 467 mln compared to the beginning of the year
- net profit for full year 2014 decreased by 98.4% to RUB 50 mln
- return on average equity (ROAE) was 0.3% as of 2014, return on average assets (ROAA) was 0.04%, cost-to-income ratio was 36.9%
- current accounts and deposits from customers increased by 3.7% ytd to RUB 84.498 mln
- the Bank’s equity increased by 1.8% ytd and reached RUB 14.856 mln as of the reporting date
Net profit of the Bank for the full year 2014 decreased by 98.4% compared with the net profit for 2013 and amounted to to RUB 50 mln. Net interest income grew by 4.9% yoy to RUB 9.363 mln supported by the loan portfolio growth. Net fee and commission income insignificantly decreased by 0.4% to RUB 3.259 mln. Growth of the net fee and commission income was driven by increase in insurance agent commissions (by 53.9% to RUB 105 mln) and settlement operations fees by 1.3% to RUB 1.350 mln.
Impairment losses for the year 2014 reached RUB 8.879 mln, which is more than 2 times higher than in 2013, which is the reason for the net profit growth to be significantly lower than the net interest and commission income growth.
The Bank’s profitability ratios however are in positive zone: return on average equity (ROAE) was 0.3% while return on average assets (ROAA) was 0.04% (23.8% and 3% as of YE 2013 respectively).
Due to the increase in provisioning impairment the cost of risk increased to 9.6% as a result of 2014 compared to 6.1% in 2013. The net interest margin amounted to 8.9% (against 11.0% in 2013).
Operating income increased by 1.7% to RUB 14.269 mln in 2014, while operating expenses decreased by 6.0% to RUB 5.343. The main cause for the decrease in operating expenses is a decrease in staff costs by 9.4% to RUB 3.530 mln. The cost-to-income ratio decreased to 36.9% by the end of 2014 against 40.0% in 2013 which represents the increase of Bank’s operating efficiency.
Loan portfolio before provisions increased by 14.5% since the beginning of the year and amounted to RUB 98.719 mln. Thus the portfolio of loans to individuals increased by 8.9% to RUB 64.561 mln (65.4% of the portfolio), and the portfolio of loans to legal entities and individual entrepreneurs increased by 26.7% to RUB 34.159 mln. The share of loans overdue for more than 90 days (NPL), increased to 15.1% by the end of 2014 (7.5% in 2013), while the level of NPL in the corporate portfolio was 3.9% and 21.0% in retail. The NPL coverage level by reserves has decreased to 88.3% (89.8% at the end of 2013).
Securities portfolio, accounting for 14.5% of total assets, increased by 11.8% since the beginning of the year and amounted to RUB 18.898 mln. The Bank maintains a conservative policy of investments in securities; state and municipal bonds and corporate bonds with investment grade ratings from international rating agencies are a large part of the portfolio (97.3% of the bond portfolio).
Accounts and deposits of customers of the Bank increased by 3.8% ytd to RUB 84.498 mln mostly in growth of term deposits of retail customers (by 19.2% ytd to RUB 54.259 mln). Accounts and deposits of corporate customers decreased by 16.3% in 2014. Loan to deposit ratio was 116.8% as of December 31, 2014.
Total amount due to banks and amounts payable under repurchase agreements increased by 29.8% for the year and totaled RUB 8.838 mln.
In 3Q 2014 the Bank placed 5.5 year Subordinated Eurobonds in the amount of USD 42 million, borrowed funds were included under a subordinated loan into the Bank’s Tier-2 capital in accordance with Regulation No. 395-P.
The volume of debt securities issued increased in 2014 by 6.6% to RUB 6.507 mln.
Capital of the Bank, calculated by the Basel Committee technique, was RUB 15.290 mln (a growth of 2.7% since the beginning of the year). Base Capital adequacy ratio is 8.2% and the Own funds (capital) ratio is 11.8%.
Ratings
Asian-Pacific Bank’s positions in the Russian and international markets are confirmed by the leading rating agencies:
- long-term foreign and local currency issuer default rating (IDR) B+, short-term foreign currency IDR B by Fitch, negative outlook;
- viability rating b+ and support rating 5 by Fitch;
- long-term foreign and local currency deposit ratings B2 by Moody`s, negative outlook;
- the baseline credit assessment (BCA) is b2 and Not Prime short-term bank deposit ratings by Moody`s;
- bank credit rating A+(II) - very high level of solvency, rating sublevel – II by Expert RA, stable outlook.
Key financials (RUB million)
|
|
2014 |
2013 |
2012 |
|
Total assets |
130 467 |
118 556 |
92 176 |
|
Gross loans to customers |
98 719 |
86 236 |
61 388 |
|
Customer accounts |
84 498 |
81 370 |
65 143 |
|
Equity |
14 856 |
14 590 |
11 529 |
|
Net interest income |
9 363 |
8 928 |
6 513 |
|
Net profit for the period |
50 |
3 113 |
3 261 |
Key ratios (%)
|
|
2014 |
2013 |
2012 |
|
Net Interest margin (NIM) |
8,9% |
10,98% |
11,56% |
|
Cost-to-income ratio (CTI) |
36,9% |
40,0% |
43,4% |
|
ROAA |
0,04% |
3,0% |
4,3% |
|
ROAE |
0,3% |
23,8% |
32,2% |
|
Loans overdue more than 90 days (NPL 90+) |
15,1% |
7,5% |
5,8% |
|
Cost of risk[1] |
9,6% |
6,1% |
3,4% |
|
Capital adequacy ratio[2] |
11,8% |
12,9% |
12,8% |
[1] Calculated as an annualised ratio of impairment losses on loans to customers for a period to average gross loan portfolio
[2] Calculated as a ratio of own funds (capital) to risk-weighted assets, Ratio N20.0