Key Results
[1] NPL (non-performing loan) means a loan overdue by more than 90 days.
[2] https://asfact.ru/wp-content/uploads/afc-y2023_open_upd.pdf
Income Statement Analysis
RUB bln, unless specified otherwise |
2023 |
2022 |
2021 |
Net interest income before charge for credit losses |
116.2 |
60.4 |
79.6 |
Net fee and commission income |
16.6 |
12.7 |
16.8 |
Operating income before credit loss allowances |
137.7 |
69.6 |
70.2 |
Operating Expense |
(40.3) |
(35.2) |
(29.6) |
Provisioning charges for debt financial assets |
(24.1) |
(25.9) |
8.1 |
Net Income |
59.8 |
7.5 |
26.2 |
Net interest margin (NIM) |
2.8% |
1.8% |
2.6% |
Cost-to-income ratio (CTI) |
28.6% |
47.3% |
39.5% |
Return on equity (ROAE) |
23.4% |
3.7% |
12.6% |
Return on assets (ROAA) |
1.4% |
0.2% |
0.8% |
Net income for 2023 reached RUB 59.8 bln, mainly driven by active business expansion and an influx of active corporate customers.
Strong financial results and operational efficiency supported the return on equity and return on assets ratios, which reached all-time high 23.4% and 1.4% as at the end of the year, respectively.
Net interest income for 2023 reached RUB 116.2 bln, driven by the rising key rate and the expanding loan portfolio. Banking business margins remain stable; net interest margin was 2.8% for 2023. Throughout 2023, MKB limited the growth of its balance sheet interest rate risk: by both optimising its funding structure and increasing the share of floating-rate corporate loans, it mitigated the adverse effect of the rising key rate on its financial result.
The provisioning charges for debt financial assets amounted to RUB 24.1 bln, which corresponds to the cost of risk of 100 bps.
Net fee and commission income reached RUB 16.6 bln primarily on the back of transaction business development. Operating income before provisions was RUB 137.7 bln.
Operating expense stood at RUB 40.3 bln, and consisted mainly of employment benefits and administrative expenses. MKB demonstrates a high level of operational efficiency: its cost-to-income ratio (CTI) for 2023 was 28.6%.
Balance Sheet Analysis
RUB bln, unless specified otherwise |
31.12.2023 |
30.06.2023 |
31.12.2022 |
Change ytd,% |
Assets |
4,667.0 |
4,397.1 |
3,973.1 |
+17.5% |
Total net loan portfolio |
2,349.9 |
2,113.9 |
1,845.4 |
+27.3% |
Net corporate loan portfolio |
2,149.3 |
1,913.8 |
1,648.5 |
+30.4% |
Net retail loan portfolio |
200.6 |
200.1 |
196.9 |
+1.9% |
Liabilities |
4,319.1 |
4,095.4 |
3,699.3 |
+16.8% |
Due to customers |
2,861.1 |
2,696.7 |
2,388.1 |
+19.8% |
Corporate accounts |
2,075.6 |
2,068.7 |
1,794.0 |
+15.7% |
Retail deposits |
785.5 |
628.1 |
594.1 |
+32.2% |
Equity |
347.9 |
301.7 |
273.8 |
+27.1% |
Financial Ratios |
|
|
||
Loan-to-deposit ratio (LDR) |
82.1% |
78.4% |
77.3% |
Total assets increased by 17.5% in 2023 to RUB 4.7 tln, mainly because the loan portfolio increased by 27% (24% net of currency revaluation) driven by corporate loans.
The net corporate loan portfolio grew by 30.4% (26.6% net of currency revaluation) to RUB 2,149.3 bln in 2023, driven by new quality borrowers in various sectors, including leasing of equipment, food and agricultural products, transport services, by stronger credit demand and by intensified business with existing customers.
The retail loan portfolio grew by 1.9% to RUB 200.6 bln.
Customer deposits, representing 66% of the total liabilities or RUB 2,861.1 bln, expanded by 19.8%. The corporate deposit base was mainly driven by large and medium-sized companies, who were offered appropriate deposit and settlement products. Corporate deposits increased by 15.7% (8.4% net of currency revaluation) in the reporting period to RUB 2,075.6 bln.
Retail deposits rose by 32.2% to RUB 785,5 bln. This was mainly driven by term deposits and accumulation accounts benefiting from the Bank of Russia’s rising key rate.
The loan-to-deposit ratio (LDR) grew from 78% to 82%.
Basel III capital grew by 20.3% in 2023 to RUB 415.5 bln driven by retained earnings. The core Tier 1 capital adequacy ratio was 9.6% as at 31 December 2023, the tier 1 capital adequacy ratio was 11.4%, and the total capital adequacy ratio was 13.8%.
The total capital adequacy decreased slightly in 2023 as the risk-weighted assets grew faster than the capital (22.9% vs 20.3%). MKB enjoys a wide safety margin over the Bank of Russia's regulatory capital adequacy ratios.