Financial indicators of Otkritie Bank

Main article: Bank Otkritie

2022: Drop in net profit by 4 times to 21.7 billion rubles

The net profit of Otkritie Bank under RAS in 2022 amounted to 21.7 billion rubles, which is four times less than the profit a year ago (85.5 billion rubles). Such data of the credit institution were released on April 6, 2023.

It also follows from the bank's materials that in 2022 the volume of Otkritie's assets increased by 5%, amounting to 3.37 trillion rubles. The loan portfolio increased by 12%, to 2.29 trillion rubles. Thus, loans to legal entities amounted to 1.56 trillion rubles at the end of 2022, an increase of 7% over the year. Loans to individuals reached 734 billion rubles, an increase of 25% over the year.

Net profit of Otkritie Bank in 2022 amounted to 21.7 billion rubles

The volume of funds of clients of Otkritie Bank at the end of 2022 reached 2.49 trillion rubles, an increase of 6% over the year, while funds of legal entities increased by 5%, to 1.36 trillion rubles, and funds of individuals - by 7%, to 1.13 trillion rubles.

In addition, the message of Otkritie Bank notes that the number of active retail clients has reached 3.7 million (+ 14%), and the number of clients - legal entities and entrepreneurs - more than 640 thousand (+ 11%).

Net interest income of Otkritie in 2022 increased by 6% compared to the previous year, amounting to 102.2 billion rubles. At the same time, the cost of reserves on loans amounted to 31.6 billion rubles, a year earlier the bank, on the contrary, received income from the restoration of provisions in the amount of 1.4 billion rubles. Operating expenses of the bank in 2022 increased by 21% and reached 104.1 billion rubles.

In February 2023, the former head of Otkritie FC Mikhail Zadornov predicted that the bank's net profit under RAS in 2022 would exceed the December expectations of top management by one and a half to two billion rubles. Thus, according to him, it was supposed to amount to about 42 billion rubles, despite the fact that about 40 billion was expected in December.^[1]

2020: Net profit growth by 73%, to 81.5 billion rubles

Otkritie Bank's net profit in 2020 jumped 73% to 81.5 billion rubles. In 2019, the indicator was measured at 47.2 billion rubles.

The regulatory capital of the credit institution in 2020 rose by 24 billion rubles (+ 8%), to 336 billion rubles, due to a positive financial result.

Otkritie's loan portfolio before provisions in 2020 increased by 273 billion rubles (+ 15% excluding currency revaluation) to 1.7 trillion rubles. The share of the loan portfolio minus reserves in assets increased to 56% as of January 1, 2021 (against 50% as of January 1, 2020).

Net profit of Otkritie Bank in 2020 increased by 73%

The loan portfolio of legal entities grew in 2020 by 153 billion rubles to 1.2 trillion rubles (+ 9% excluding currency revaluation). The volume of corporate loans issued in 2020 amounted to 1,192 billion rubles, which is 27% higher than in 2019; the volume of loans issued to customers of the small and medium-sized business segment amounted to 160 billion rubles (+ 13% compared to last year).

The loan portfolio of individuals grew in 2020 by 120 billion rubles (+ 32% excluding currency revaluation) to 495 billion rubles. In 2020, the bank issued more than 280 billion rubles of retail loans, which is 20% more compared to 2019.

By the end of 2020, the bank's securities portfolio decreased by 128 billion rubles and amounted to 671 billion rubles, or 26% of the bank's assets. The decrease is due to the disposal of non-core assets.

The total amount of customer funds at the end of 2020 increased by 173 billion rubles to 1.9 trillion rubles (+ 7% excluding currency revaluation). At the same time, the funds of legal entities increased by 110 billion to 941 billion rubles (+ 10% excluding currency revaluation). Private customer funds increased by 64 billion to 970 billion rubles (+ 3% excluding currency revaluation).

In the structure of customer funds, the share of current accounts amounted to 39% (27% at the end of 2019), which allows the bank to optimize the cost of funding.^[2]

2019:44 billion rubles of net profit

According to Mikhail Zadornov, President-Chairman of the Board of Otkritie Bank, at a press conference held on January 29, the net profit of the credit institution under RAS in 2019 amounted to 44 billion rubles, the bank's assets minus the reserve increased 1.7 times and exceeded 2.3 trillion rubles.

In 2019, Otkritie Bank increased its retail loan portfolio by 83%, to 340 billion rubles. The bank's share in the Russian market for lending to individuals over the year increased by more than one and a half times, to 1.9%. The issuance of retail loans increased by 170%, to 234 billion rubles.

The bank also increased corporate lending at a rapid pace. In 2019, he issued 213% more corporate loans than in 2018 and brought the volume of loans to 938 billion rubles. The corporate loan portfolio grew by 56% over the year, to 891 billion rubles. Otkritie's share in the loan market for legal entities increased from 2 to 2.5%.

The Bank and the Otkritie Group actively developed their investment business in 2019. The bank entered the top 6 largest organizers of the placement of issues of subfederal and municipal bonds and in the top 7 organizers of the placement of corporate bonds. In addition, after a significant break in 2019, Otkritie Bank successfully placed its own bonds for 10 billion rubles, and the demand for them exceeded the volume of issue by 4.5 times.

The credit institution retained its position among the leaders of Russian private banking. The volume of the client portfolio of this segment (investments and savings) for the year increased by 28% to 365 billion rubles.

In lending to SMEs, the bank entered the top 5 in terms of the number of customers. For the first time in history, the bank's share in lending to small and medium-sized businesses reached 5.5%. Since the launch of the SME lending program, the bank has issued 200 billion rubles to enterprises in this segment. The SME loan portfolio for 2019 grew by 67% to 127 billion rubles.

Otkritie Bank carried out a large-scale transformation of the network, fully completed the integration of the former Binbank's business, brought the number of regions of presence to 73 and entered the top 5 in terms of the number of regional branches. The credit institution's own ATM network reached 5,300 units, and together with partner bank ATMs - 36,500.

The result of large-scale investments in technological development, which amounted to 19 billion rubles in 2019, was a significant reduction in operating costs and the elimination of more than 300 IT systems inherited by Otkritie Bank as a result of integration with the former Binbank group. Of the 546 such systems, 215 remained, and the number of processing centers was reduced by three times - from 6 to 2.

The plans of the credit institution for 2020 include the growth of all key business indicators at a rate higher than market ones. Retail lending is planned to increase by 46% and bring the portfolio to almost 500 billion rubles, and the number of clients to 3.5 million people. Corporate lending should grow by 38% (the loan portfolio will exceed 1.2 trillion rubles), SME lending - by 90%.

The goal number one for the bank in 2020 M. Zadornov called the preparation for the IPO, which is scheduled for 2021. Work is already underway in close contact with the shareholder of Otkritie. "We must make the bank as attractive as possible for both customers and potential investors, both Russian and foreign," he said.

2018

Mortgage portfolio growth by 37%

On March 29, 2019, information appeared that the volume of Otkritie Bank's mortgage portfolio at the end of 2018 amounted to 67.6 billion rubles, which was 37% higher than in 2017.^[3]

About 1 million salary cards issued

On February 7, 2019, information appeared that in 2018 Otkritie Bank issued about 1 million salary cards. According to Mikhail Zadornov, President and Chairman of the Opening Board, this is one of the key areas through which the bank plans to attract new customers.

As he said, within the framework of the retail business, Otkritie Bank made a complete restart of the consumer lending cycle. Credit policies, pricing, product line, CRM systems were revised. The number of loans issued to individuals increased 5 times. And the volume of loans issued in December 2018 is comparable to the level of sales in all of 2017.

In terms of mortgage loans issued, Otkritie Bank entered the top 5 for the first time. At the end of the year, the volume of cash loans issued amounted to 53.6 billion rubles, and mortgages - 33.8 billion.

Penetration of Internet and mobile banking increased 1.8 times over the year. All remote banking systems have been transferred to modern platforms.

Speaking about plans for 2019, Mikhail Zadornov said that the network of bank branches will grow from 745 to 759, and the ATM network will increase from 5,710 to 6,195 ATM.^[4]

Net profit - 90 billion rubles under IFRS

On February 7, 2019, it became known that the net profit of Otkritie Bank in 2018 amounted to 90 billion rubles under IFRS. The chairman of the bank's board, Mikhail Zadornov, explained this profit by three factors.

First, we restored reserves when the bank of non-core assets "Trust" was separated from the group and became an independent bank. This interbank loan was reserved, that is, it was a release of reserves. The second factor was that only on the balance sheet of Otkritie Bank non-core and problematic debt in 2018, about 70 billion rubles were repaid... The third is the operating activities of the bank itself, somewhere since the end of the third or fourth quarter it has reached a plus, despite the rather serious volume of investments both in the network and in the process of preparing the integration of Otkrytie and Binbank.

At the end of 2018, the portfolio of loans to small and medium-sized businesses exceeded 74 billion rubles^[5].

Growth in the volume of cash loans issued by 5 times

On February 13, 2019, it became known that Otkritie Bank doubled sales of retail loans in 2018. Thus, the volume of cash loans issued since the beginning of the year has increased 5 times - from 4.4 billion rubles. in the 1 quarter to 26.62 billion rubles. as of December 31, 2018. Similarly, sales of mortgage loans increased - from 6.43 billion rubles. up to 23.84 billion rubles.

In 2018, we implemented a global relaunch of retail lending at the bank. The credit pipeline was launched, risk policies and pricing principles were revised, another product line was formed, the processes of forming targeted offers and personal communications to bank customers were debugged. This allowed us to make a truly competitive supply and ensure that demand for our products increased.

Otkritie Bank's retail portfolio in 2018 grew by more than 43% to 190.31 billion rubles. Otkritie plans to almost double the growth of the loan portfolio to 351.6 billion rubles, update the product line and further digitalization of services, which will make the service of borrowers even faster and more comfortable^[6].

2017: Loss under IFRS 426.8 billion rubles

In 2017, Otkritie FC's net loss under IFRS amounted to 426.8 billion rubles. A year earlier, the net profit of the financial corporation was 1.5 billion rubles, Interfax testifies with reference to the bank's consolidated statements.

The main reason for Otkritie's losses was an increase in reserve costs: provisions for loan impairment increased to 360 billion rubles from 34.3 billion rubles in 2016, expenses on other types of impairment and reserves - to 94.5 billion rubles from 2.3 billion rubles.

In addition, the bank reflected a loss of 50.3 billion rubles from trading operations and a loss of 22.2 billion rubles from changes in contractual conditions.

Last year, Otkritie reflected almost 6 billion rubles of net loss from insurance activities and losses of 23.3 billion rubles from pension activities, Interfax reports.

The group's results were supported by a Central Bank deposit of 380 billion rubles, issued at a non-market rate of 0.51%. The fair value of the deposit was translated at a market rate of 11.91%, which allowed Otkritie to reflect income from initial recognition of funds in the amount of 19.7 billion rubles.

The loan portfolio of Otkritie after deducting reserves for the year decreased 2.6 times - to 716.2 billion rubles from 1.8 trillion rubles at the end of 2016. Corporate loans issued under repo agreements decreased to 74.3 billion rubles from 970.5 billion rubles in the previous year.

The volume of non-standard loans in the bank's corporate portfolio increased to 366.8 billion rubles from 27.7 billion rubles at the end of 2016.

The volume of dubious loans to legal entities also increased and amounted to 297.9 billion rubles, compared with 120 billion rubles a year earlier.

Customer funds in bank accounts decreased last year to 870.1 billion rubles from almost 1.2 trillion rubles.

See also

• Sberbank's financial performance
• VTB's financial performance

Notes