UniCredit Bank Financial Results 2015: net profit of RUB 15.52 bn
- Solid balance sheet’s structure
- Solid result’s contribution from all business segments
- C/I ratio improved Y/Y
AO UniCredit Bank’s consolidated financial statements as of 31 December 2015 according to the International Financial Reporting Standards (IFRS):
- Total assets: RUB 1 407.13 billion (+3.4% Y/Y)
- Total Equity: RUB 164.53 billion (+15.8% Y/Y)
- Net loans to customers: RUB 867.3 billion (+4.9% Y/Y)
- Total customers deposits: RUB 931.43 billion (+14.9% Y/Y)
- Gross Operating Profit: RUB 33.58 billion (+20.3% Y/Y)
Mikhail Alekseev, CEO of UniCredit Bank, commented: "In 2015 UniCredit Bank in 2015 confirmed its position as the leading international bank in Russia. For the Russian banking system last year was predictably not easy, but a large reserve of strength, high-quality business model and professional team of the Bank's employees have allowed us to achieve the results even better than expected. Gross operating profit of the Bank has grown significantly while capital ratios particularly important for us exceeded regulatory requirements. The high quality of the Bank's assets as well as a low ratio of costs to income, showed further reduction, confirm the high efficiency of the Bank's business activity in all conditions. This year the Bank will continue to develop business in Russia in accordance with the Strategic Plan of UniCredit Group."
UniCredit Bank is one of top-10 largest Russian banks with total assets amounting to RUB 1 407.13 billion.
The Bank achieved the net profit of RUB 15.52 billion (-17.5% Y/Y) and generated a good return on equity (ROE) of 10.1%. All business segments significantly contributed to the positive results for the year.
Net interest income for 2015 increased by 13.3% Y/Y up to RUB 40.36 billion (+RUB 4.74 billion Y/Y) thanks to the efficient pricing policy that ensured solid commercial performance both in loans and deposits portfolio. Net fee and commission income amounted to RUB 4.38 billion (-31.8% Y/Y) due to a more conservative approach on retail products exposure and additional commission expenses related to Group financial guarantees. Nevertheless, operating income grew by 18.4% up to RUB 48.97 billion (+RUB 7.61 billion Y/Y). The main contribution came from CIB that demonstrated significant growth of operation income from its activity by 62.6% up to RUB 31.29 billion.
According to the Strategic Plan of UniCredit Group the tight cost control remains one of the key priorities for the Bank. The operating expenses comprised RUB 15.39 billion (+14.5% Y/Y). Nevertheless, thanks to strict cost management procedures cost/income ratio not only stays at the excellent level of 31.4%, but even decreased from 32.5% reported a year ago despite challenging economic environment.
Total Equity increased up to RUB 164.53 billion (+15.8%, +RUB 22.46 billion Y/Y). At the end of the first quarter of 2015 the UniCredit Bank's Tier II capital has been increased by USD 480.9 mln according to the decision taken by the Bank's sole shareholder UniCredit Bank Austria. With a solid capital base, the bank keeps a comfortable capital adequacy ratio of 12.9% above the regulatory requirement.
UniCredit Bank’s commercial network performed well in 2015 thanks to a well-balanced business model of the Bank. Gross loans to customers amounted to RUB 900.74 billion (+6.3% Y/Y). Net loans to customers amounted to RUB 867.3 billion (+4.9% Y/Y). Total gross loans to corporate customers (including reverse repurchase agreements and lease receivables) increased up to RUB 768.1 billion (+12.5%, +RUB 85.52 billion Y/Y). Retail portfolio (including SME) amounting to RUB 132.65 billion (-19.6% Y/Y) decreasing mainly due to negative market trends. The quality of loan portfolio traditionally remains the main focus for UniCredit Bank. As of the end of 2015 the share of impaired loans in total gross loan portfolio stood at 6.4% which is clearly reflecting the economic and macro scenario. However assets quality of the Bank remained one of the best in the market in 2015.
In 2015 UniCredit Bank continues to maintain well diversified, balanced and independent funding sources. Total customers deposits increased by 14.9% (+RUB 120.81 billion Y/Y) and amounted to RUB 931.43 billion, with total corporate funds increased to RUB 706.97 billion (+7.3%, +RUB 48.24 billion Y/Y), and retail funds significantly grew by 47.8% to RUB 224.45 billion (+RUB 72.56 billion Y/Y). By results of the year UniCredit Bank entered top 15 Russian banks by the volume of retail deposits (according to the Banki.Ru ranking as of 01.01.2016). The loan/deposits ratio as of the end of 2015 was 90% confirming the Bank’s sound liquidity position.
In 2015 UniCredit Bank successfully developed multi-channel banking services. As result the share of remotely opened retail deposits increased from 72% to 85%, while the number of clients regularly using the Bank’s mobile applications grew by more than 50% Y/Y.
UniCredit Bank Russia serves over 1,700,000 customers as well as around 28,000 small, medium and large enterprises through its network of 103 offices (including the Representative Office in Minsk).