Key financial performance indicators
The core capital increased by 17.0% y-o-y to RUB 170.2 bln. The capital structure was strengthened by a RUB 14.7 bln SPO carried out on the Moscow Exchange in November 2019. The Tier 1 capital ratio calculated in accordance with Basel III rose from 10.7% as at end-2018 to 11.9% as at end-2019.
The bank’s total capital according to the Basel III standards rose by 1.8% y-o-y to RUB 302.9 bln. The additional and tier 2 capitals declined because of currency revaluation and partial buyback and cancellation of subordinated Eurobonds CBOM27 and CBOM-perp in November 2019. The total capital adequacy ratio reduced from 21.9% to 21.2%.
Net income for 2019 was RUB 12.0 bln. It fell largely because the rouble exchange rate continued to climb in 4Q2019, which was reflected in the FX-nominated perpetual subordinated Eurobonds revaluation, and because net interest income shrank while risk indicators remained at their 2018 levels.
Net interest income decreased by 6.5% y-o-y to RUB 45.3 bln as interest income rose by 6.8% and interest expense by 14.0% in 2019 due to a faster growth of retail deposits and repricing of large corporate deposits in the first half of 2019.