Key performance indicators:
Financial assets of the Corporation increased in 2012 by 36% to 326.9 billion rubles. The portfolio of loans to customers (before allowance for depreciation) amounted to 166.8 billion rubles. An increase of 21% compared with the end of 2011. Total securities portfolio (trading and investment) rose 35% to 76.0 billion rubles. Deposits and current accounts increased by 21% to 150.7 billion rubles. Capital Corporation has increased since 2012 by 73% to 27.9 billion rubles.
Financial Corporation completed 2012 with a profit of 1.0 billion rubles.
Review of the statement of financial position
The assets of the Corporation in 2012 reached 326.9 billion rubles. An increase compared to the year 2011 by 36%. The main drivers of growth were the expansion of the company’s business structure FK “Opening” and deals M & A, in particular, the purchase of 19.9% stake in Nomos.
Liquid assets (cash and cash equivalents and trade portfolio securities) accounted for 23% of the assets of FC “Opening”.
Total securities portfolio, which includes trading and investment securities, reached 76.0 billion rubles and amounted to 23% of assets. Compared with the end of 2011 the portfolio grew by 35%, or 19.8 billion rubles. The main driver of growth – the acquisition of FC “Opening” 19.9% stake in Nomos at $ 15.1 bn *. This transaction is reflected in the portfolio of investment securities available-for-sale.
Overall, the share of debt securities in the portfolio, including government and corporate bonds and Eurobonds, was 73%, of which 53% were issued by issuers with investment-grade.
Loans to customers
In the structure of the bulk of the assets are still made up of loans to customers – 48%. The loan portfolio (before allowance for loan losses) increased by 21% to 166.8 billion rubles mainly due to growth in lending to individuals and small to medium-sized business bank “Discovery”.
Lending to retail customers and SMEs increased by 25% to 52.2 billion rubles. In 2012, the Bank’s strategy of “Opening” shifts the focus to the more high-margin products – primarily consumer loans and credit cards to retail customers. At the end of the year, these segments have shown impressive growth: the volume of consumer loans increased by 56%, the amount of debt on credit cards – 86% (the proportion of the portfolio is still low, at 2%).
Loans to corporate clients, including private companies, municipal and regional authorities, as well as institutional clients FK “Opening” reached the level of 90.3 billion rubles. Their share in the loan portfolio, compared with the end of 2011 decreased to 54% from 63% in the above-mentioned strategy to increase business margins.
Liabilities and Equity
In the structure of liabilities of the Corporation the largest share of traditionally falls on the customer. On 31 December 2012 it was 50%, showing an increase of 21% compared to the end of 2011 to 150.7 billion rubles. In the client’s funding resources of legal entities – government organizations and private companies – accounted for 52%. The most marked increase in the reporting period showed deposits and current accounts of private companies – by 68%.
Customer accounts and physical decreased by 2% at the end of 2012 amounted to 73.0 billion rubles.
The result of the brokerage business has been to increase the proportion of balances in brokerage accounts (accounts payable to clients) – up to 16% of liabilities from 13% at the end of 2011. In absolute terms, this article was 46.4 billion rubles.
In the structure of liabilities, the share of debt securities remained virtually unchanged – 22%, or 67.0 billion rubles. At the same time there was a replacement bill debt bonds issued by companies included in the structure of the Corporation. Thus, the proportion of bills fell to 37% from 79% at the end of 2011.
Capital of the Corporation increased by 73% to 27.9 billion rubles. mainly due to additional shares of 9.0 billion rubles. In August 2012, the proceeds of which were intended placement to finance the purchase of shares of NOMOS-BANK.
After the balance sheet date in April 2013 FK “Opening” has placed one additional share issue in the amount of 30 billion rubles. The resulting additional share issue will be used to consolidate a controlling stake Nomos in the 2nd half of 2013.
Overview of the profit and loss account
Operating income of the Corporation amounted to 23.3 billion rubles, which is 24% higher than the income in 2011.
In the structure of the operating income, net interest income increased by 25% to 10.0 billion rubles. The growth was largely achieved by increased income from lending to customers due to higher loan portfolio and its reorientation towards more high-margin products.
Non-interest income of the Corporation increased by 24% to 13.3 billion rubles.
In the structure of fee income basic share held by brokerage commission (52%) and commercial banking operations – cash settlement, guarantees and letters of credit (42%), the structure of commission expenses – expenses related to transactions in securities (79%). Net fee and commission income from commercial banking operations increased in the Corporation’s strategy to develop a transactional business. Fee and commission income brokerage business remained the same, while fee and commission expense in this segment increased in proportion to the client turns. This is primarily due to the revision of tariffs for large customers, as well as expansion into new marketplaces. As a result, net fee and commission income decreased by 9% to 3.5 billion rubles.
Net income from investment securities at the end of 2012 amounted to 3.1 billion rubles. This indicator is provided sales of investment securities, including the sale of the shares of the Moscow Stock Exchange. Net income from derivative transactions have increased to 4.5 billion rubles. (From 2.3 billion rubles.) Thanks to an effective development strategy and the growth of a derivative DESC customers’ interest in derivative transactions.
Staff costs and administrative expenses increased by 11% to 14.4 billion rubles. within the planned budget. The structure of these costs 63%, or 9.0 billion rubles. Falls on wages and social benefits to employees of “discovery.” Their growth was also up 11% compared to last year, with the increase in the number of employees of the Corporation – by 10% to 7,970 people in connection with the expansion of business, particularly in retail banking, brokerage and insurance businesses.
Net provision charges for impairment losses on interest bearing assets amounted to 4.5 billion rubles. compared to 3.3 billion rubles. the previous year (an increase of 37%). Reserves in 2012 were mostly established in the loan portfolio growth.
Profit corporation in 2012 amounted to 1.0 billion rubles.
* By the end of 2012 FK “Opening” held a 19.9% stake Nomos, in connection with the performance of NOMOS-BANK is not consolidated in these financial statements of the Corporation.