TKS Bank’s net profit plummets 40%

5 March 2015 (09:16)

March 5, 2015. Tinkoff (TKS) Bank’s net profit (calculated in accordance with the IAS) plunged by 41% in 2014 and came to 3.4bn RUR against 5.8bn RUR a year earlier. The bank’s pre-tax profit amounted to 4.9bn RUR against 7.5bn RUR in 2013, the bank’s report states.

The net interest income, however, rose by 15% and reached 30.8bn RUR, while the net interest margin decreased from 36.4% in 2013 down to 34.8% in 2014.

The bank’s share of non-performing loans doubled over last year and amounted to 14.5% against 7% in 2013.

In the last quarter of the year, the bank’s profit declined by 65%, down to 0.6bn RUR year-on-year; this was caused by the need to reserve more to back up bad debt.

Thus TKS Bank’s toxic loan reserves had to go up by 62%, up to 15.8bn RUR, last year.

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