As of 31 December 2018, the bank’s operating expense increased by RUB 1.8 bln, or 9.3%, to RUB 21.2 bln from RUB 19.4 bln as of 31 December 2018. This was primarily due to increases in salaries and employment benefits.
|RUB mln||%||RUB mln||%|
|Salaries and employment benefits||14,167||66.7%||12,290||63.3%|
|Depreciation of property and equipment||1,903||9.0%||1,051||5.4%|
|Cost-to-income ratio (%)||51.6%||29.8%|
Salaries and Employment Benefits
Salaries and employment benefits increased by RUB 1.9 bln, or 15.3%, to RUB 14.2 bln for the year ended 31 December 2019 from RUB 12.3 bln for the year ended 31 December 2018. This increase was primarily due to salary increases resulting from the overall development of the bank’s business and growing competition among employers.
The decrease primarily reflects a more than fivefold reduction, by RUB 1.0 bln, in occupancy expenses in 2019 due to the new, IFRS 9-related accounting rule.