RUB bln, unless specified otherwise |
3m2024 |
3m2023 |
Net interest income before charge for credit losses |
23.6 |
24.1 |
Net fee and commission income |
3.0 |
3.7 |
Operating income before credit loss allowances |
30.3 |
28.9 |
Operating expense |
(8.6) |
(8.3) |
Provisioning charges for debt financial assets |
(5.1) |
(4.7) |
Net Income |
14.0 |
13.0 |
Net interest margin (NIM) |
2.1% |
2.5% |
Cost-to-income ratio (CTI) |
28.1% |
27.3% |
Return on equity (ROAE) |
18.9% |
22.9% |
Return on assets (ROAA) |
1.2% |
1.3% |
Net income for 1Q2024 reached RUB 14.0 bln. Its year-on-year growth was 7.4%.
Robust financial results and operational efficiency support the return on equity and return on assets ratios, which reached 18.9% and 1.2% respectively as at the end of the 1st quarter.
Operating income before provisions increased by 4.8% yoy and amounted to RUB 30.3 bln.
The provisioning charges for debt financial assets amounted to RUB 5.1 bln, which corresponds to the cost of risk of 80 bps.
Net interest income for the 1st quarter of 2024 was RUB 23.6 bln, 2% down yoy due to the key rate hikes in 3-4Q2023. Net interest margin was 2.1% in the 1st quarter of 2024. Banking margins demonstrate stable levels for MKB's business model despite the existing sensitivity to interest rate changes and the revaluation of the funding costs in the 1st quarter of 2024.
Net fee and commission income was RUB 3.0 bln for 3M2024.
Operating expense stood at RUB 8.6 bln, and consisted mainly of employment benefits and administrative expenses. MKB stably demonstrates a high level of operational efficiency: its cost-to-income ratio (CTI) for the first three months of 2024 was 28.1%.
RUB bln, unless specified otherwise |
31.03.2024 |
31.12.2023 |
31.12.2022 |
Change ytd,% |
Assets |
4,826.9 |
4,667.0 |
3,973.1 |
+3.4% |
Total net loan portfolio |
2,466.6 |
2,349.9 |
1,845.4 |
+5.0% |
Net corporate loan portfolio |
2,266.1 |
2,149.3 |
1,648.5 |
+5.4% |
Net retail loan portfolio |
200.5 |
200.6 |
196.9 |
-0.1% |
Liabilities |
4,469.0 |
4,319.1 |
3,699.3 |
+3.5% |
Due to customers |
3,008.8 |
2,861.1 |
2,388.1 |
+5.2% |
Corporate accounts |
2,149.8 |
2,075.6 |
1,794.0 |
+3.6% |
Retail deposits |
859.0 |
785.5 |
594.1 |
+9.4% |
Equity |
357.8 |
347.9 |
273.8 |
+2.8% |
Financial Ratios |
||||
Loan-to-deposit ratio (LDR) |
82.0% |
82.1% |
77.3% |
Total assets expanded by 3.4% in 1Q2024 to RUB 4.8 tln, mainly because the loan portfolio increased by 5% (4.7% net of currency revaluation).
The net corporate loan portfolio expanded by 5.4% ytd (5.2% net of currency revaluation) to RUB 2,266.1 bln, driven by new quality borrowers in various sectors, including leasing of equipment, metals, finance, food and agricultural products, industrial and infrastructure construction.
The retail loan portfolio remained at the same level of RUB 200.5 bln as market interest rates are high and retail customers choose to save.
Customer deposits, representing 67% of the total liabilities or RUB 3,008.8 bln, expanded by 5.2%.
Corporate deposits increased by 3.6% (2.8% net of currency revaluation) in the reporting period to RUB 2,149.8 bln.
Retail deposits rose by 9.4% to RUB 859.0 bln. MKB continues to offer the best deposit terms in the market, as evidenced by strong demand from and influx of retail customers.
Loan-to-deposit ratio (LDR) stands at 82%.
Basel III capital grew by 1.8% ytd to RUB 423.0 bln driven by retained earnings. The core Tier 1 capital adequacy ratio was 9.7% as at 31 March 2024, the Tier 1 capital adequacy ratio was 11.5%, and the total capital adequacy ratio was 13.8%.
MKB enjoys a wide safety margin over the Bank of Russia's regulatory capital adequacy ratios.
[1] NPL (non-performing loan) means a loan overdue by more than 90 days.
[2] According to Cbonds “Russian bonds arrangers (market issues, net of proprietary ones), Jan-Mar 2024”.