OREANDA-NEWS. In 1H 2017 AK BARS Bank reached net profit of RUB 3.4 bln., which is 16.7% higher YoY according to IFRS financial statements. 

"Following the results of AK BARS Bank’s performance in 1H 2017 we were able to secure and improve our achievements. The results of 6 months of 2017 determined by market environment, interest margin growth and fee income. As we expected, the rates of portfolio provision reduced, while the ratio of liquid assets increased. The dynamic of indicators is the evidence of the right direction of the strategy chosen. – commented The Chairman of the Management Board of AK BARS Bank Zufar Garaev. – We are planning to retain the tendency of growing operation efficiency both through improving ratios of traditional banking products and through implementing innovative digital products and services." 

Net interest margin increased to 2.9% in the reporting period from 2.0% compared to the same period last year. 

Net interest income (before provision) increased by 31.7% to RUB 4 bln, in comparison with the corresponding period within progressing reduction in interest expenses. 

Administrative costs increased by 17.0% compared to the same period in 2016, which can be determined by investments in IT and implementation of new online platforms and new banking services. 

As of 30 June 2017, total assets of the Bank amounted to RUB 393.9 bln. that is 2.3% less as compared to the beginning of the reporting period. 

At the beginning of the year AK BARS Bank’s total loan portfolio after provision changed insignificantly: the growth was 0.7% amounting to RUB 238.00 bln. Thus, loan portfolio of corporate clients (before provision) rose by 2.7% to RUB 169.4 bln. and retail loan portfolio decreased by 3.8% to RUB 68.6 bln. 

From the beginning of the year net total loan portfolio decreased by 1.3%, to RUB 209.5 bln. 

Since the beginning of 2017 the provision share in the total loan portfolio increased by 1.7 p.p., to 11.9%.