August 20, 2021, Blagoveshchensk-Moscow - Asian Pacific Bank (the "Bank") has reported a positive financial result in accordance with the interim condensed consolidated financial statements for the first 6 months ended June 30, 2021. According to International Financial Reporting Standards net income amounted to RUB 1.275 bn.
“We have seen a recovery in business activity in the first half of the year, which was reflected in a convincing increase in APB's financial performance in the retail and, in particular, the corporate segment. Corporate lending has increased by almost a quarter since the beginning of the year.
A completely revamped mobile bank is a good illustration of APB's digital transformation. The management is consistently implementing the cost management strategy by centralizing and automating a number of key functions. As a result, we managed to noticeably improve operational efficiency, reducing the ratio of operating expenses to operating income by 10.7 points,” commented Alexey Korovin, Chairman of the Management Board.
The Bank's performance indicators:
First half of 2021 |
First half of 2020 |
|
Return on assets (ROA) |
1.98% |
1.89% |
Return on equity (ROE) |
13.93% |
11.66% |
Net interest margin (NIM) |
8.53% |
8.88% |
Operating efficiency (CIR) |
55.59% |
66.25% |
The dynamics of APB's assets and liabilities are stable.
Interest and fee and commission income showed excellent positive dynamics. The largest growth in the reporting period was demonstrated by the Bank's net fee and commission income - up to 43.9% year-on-year to RUB 1.5 bn. Net interest income grew by 21.8% to RUB 4.1 bn.
Loans to individuals before provisions increased to RUB 72.1 bn (+9.4%). Loans to individuals increased to RUB 72.1 bn (+9.4%), loans to corporate customers rose to
RUB 23.3 bn (+24.5%). (+24,5%).
The Bank's equity grew by 4.7% to RUB 18.8 bn at the end of the period. During the reporting period, the Bank complied with all established capital adequacy ratios and their increments. The capital adequacy ratio was 11.9% and the Tier 1 capital adequacy ratio was 10.4%.
On July 21, 2021, the international agency Fitch revised the Bank's long-term credit rating and upgraded it by one notch to B+ with a stable outlook. The upgrade was driven by the Bank’s strengthened market position, improved asset quality and sustained profitability on the back of increased operational efficiency and successful achievement of its strategic objectives. APB has successfully weathered the impact of the pandemic.
According to Frank RG as of July 1, 2021 in its home territory, APB ranks 6th in retail lending and 8th in deposits, showing positive growth in portfolios.