Net profit of Moscow credit Bank (ICB) for the first 9 months of 2019 11.9 bn (us$184,5 million), while directly over the third quarter, the Bank earned 9.7 billion rubles ($150,9 million), above the same period last year by 32.3%. The positive effect on profits in the third quarter of 2019 helped the growth of business volumes with improved risk indicators, and improvement of performance indicators.
The Bank’s interest income increased by 6.4% compared to the nine months of 2018 and totaled 109.1 billion roubles ($1.7 billion). Net interest margin was 2.1% in the first 9 months of 2019, while for the third quarter this indicator increased in comparison with the second quarter by 0.7 percentage points to 2.6%.
Return on equity increased in the third quarter by 7.7 points (from 2.9% at the end of 6 months to 10.6% in the first 9 months of 2019) directly for the third quarter, ROE reached a record level of 25.6%. Shareholders ‘ equity increased by 4.1% since the beginning of 2019 to 199,1 bln ($3.1 billion).
The assets of the Bank increased during the reporting period by 1.8% and amounted to 2.2 trillion rubles ($33.9 billion), mainly due to the increase in the loan portfolio.
Total loan portfolio before provisions increased by 4.4% compared to the end of 2018 and amounted to 772,6 bn ($12.0 bn). In the third quarter loan growth was 9.6%. Corporate loan portfolio increased in the first 9 months 3.8% (7.1 per cent excluding foreign exchange revaluation) before 667,8 billion rubles due to the growth in the third quarter by 10.6% or 63.7 billion RUB Portfolio of retail loans increased by 8.5% to 104,8 billion rubles due to the growth of unsecured consumer lending by 7.6% to 77.7 billion and mortgage credit by 13.0% to 23.4 billion rubles.
Accounts and deposits from retail customers increased by 22.4% YTD and reached 459,2 billion rubles ($7.1 billion) due to the increase as term deposits and demand deposits.
The capital adequacy ratio remained at a high level and amounted to 20.2%, a-1 capital ratio of a level of 13.3%.
In November 2019 in the framework of a public placement of additional issue shares on the Moscow exchange, the Bank attracted RUB 14.7 billion in the base capital. Also in November 2019 IBC bought back subordinated Eurobonds CBOM’27 and subordinated perpetual Eurobonds CBOM-perp 100, and $ 50 million. The United States respectively. According to the results of a partial redemption of these issues of Eurobonds in circulation remained Eurobonds CBOM’27 in the amount of 440 million U.S. dollars, and perpetual Eurobonds in the amount of 540 million U.S. dollars. The effect of the above-described transactions will be reflected in the financial statements of the Bank in the fourth quarter of 2019.