Loco bank financial condition. About bank

the date credit opinion 29.11.2018
Validity of recommendations - 1 year

1. Full name of the issuer

Commercial Bank "LOKO-Bank" ( joint-stock company)

Reg. number: 2707

The table shows the final rating.

Main components:

• Bank's own rating in a stable situation - B.
• Bank's rating in a stressful situation (without taking into account the support of the main shareholder) - B.
• The expected level of support is low.

Based on the results of the conducted risk assessment, we recommend to carry out placement operations Money in the financial instruments of the Bank within the limits of the sum insured by SC "DIA" - 1.4 million rubles.

3. SWOT analysis

Key positive points:

CB "LOKO-Bank" (JSC) is a small Russian bank (76th in terms of assets and 66th in terms of equity as of November 1, 2018).

• The bank has a medium-sized network: 5 branches, 23 additional offices, 19 operational offices.
• Good margin in terms of capital adequacy ratios (H1.0 = 15.818%, H1.1 = 14.996% as of November 1, 2018, with thresholds of 8% and 4.5%, respectively).
• Profitable activity for over 10 years.
• Low concentration of loan portfolio and resource base.
• A good position in terms of liquidity (25.08% of assets is a portfolio of securities and 7.41% - cash balances and correspondent accounts, 3.38% - interbank loans).

Key negative points:

• Poor quality of the SME loan portfolio (according to IFRS as of January 1, 2018, the share of overdue loans was more than 30 - 15.72%).
• More than 60% of the loan portfolio is accounted for by unsecured retail loans, which are potentially subject to deterioration in quality, given the decrease in the solvency of the population.
• Low probability of support from major shareholders.
• Significant share of deposits individuals in funds raised from clients (72.17% of funds raised under RAS as of November 1, 2018) - creates a potential threat to liquidity due to the possibility of early withdrawal provided for by law (the threat is partially offset by a significant share of balances less than the sum insured of GC DIA).

4. Ownership structure

• 30,508% - Boguslavsky S.I. (father) and 7,80% - Boguslavskaya Ya. S. (daughter).
• 13,30% - Rabinovich M. D,
• 9,999% - East Capital Financials Fund AB
• 9,99% - treasury shares repurchased
• 9,884% - Obukhova N.V.
• 8,706% - Davydik V. Yu.
• 4,313% - Serilov A.V.
• 2,716% - Mezhibovsky V. M.
• 1,284% - Davydik I.V.
• 0,75% - Elskene T. Yu.
• 0,75% - Mineev A. A.

4.1. Primary ultimate beneficiary

The Bank does not have a controlling shareholder. The largest share (38.31%) is controlled by the family of Boguslavsky S.I.

4.2. Likelihood of shareholder support in the event of a crisis

The likelihood of the Bank's support from major shareholders is assessed as low.

5. Analysis of the main financial indicators

Bank statements as of November 01, 2018 (billion rubles, changes over 10 months) under RAS (data and interpretations under IFRS for 2017 and 1H 2018 are also used).

Capital - 15.033 billion rubles. (+0.818 billion rubles)by 123form.

Assets - 88.064 billion rubles. (-0.092 billion rubles), including:

6.533 billion rubles (-1.052 billion rubles.) - cash desk and correspondent accounts.

2.979 billion rubles(+0.728 billion rubles)- interbank loans.

22.119 billion rubles (-3.456 billion rubles)- investments in securities.

8.740 billion rubles loanslegalpersons (-6.554 billion rubles), including balance sheet overdue debt -1.369 billion rubles. (15.66%). As of January 1, 2018, according to IFRS reporting, the share of loans with overdue payments of more than 30 days of loans was 14.71%.

44.180 billion rubles loansphysicalindividuals (+9.586 billion rubles), including balance sheet overdue debt -1.438 billion rubles. (3.25%). As of 01/01/2018, according to IFRS reporting, the share of loans with overdue payments for more than 30 days was 5.48%.

0.150 billion rubles(-0.038 billion rubles) - property (fixed assets, capital investments, etc.).

Liabilities:

11.885 billion rubles (-1.757 billion rubles) - means of legal. persons.

As of September 30, 2018 and December 31, 2017, the Group had no balances on current accounts and customer deposits, which accounted for more than 10% of total balances on current accounts and customer deposits.

48.431 billion rubles (+1.664 billion rubles) - contributions of individuals. persons.

6.401 billion rubles (-1.015 billion rubles)- Funds of credit institutions and the Central Bank.

5.219 billion rubles (+0.566 billion rubles) - formed reserves.

Profit / loss (according to RAS):

Profit for 10 months of 2018 amounted to +0.849 billion rubles. For 2017 - profit amounted to 1.953 billion rubles. (For 2016 - profit of 1.809 billion rubles, for 2015 - net profit of 2.900 billion rubles).

Annex 1. Dynamics of the values ​​of the main mandatory ratios (liquidity and capital).

Annex 1. Dynamics of the values ​​of the main mandatory ratios (liquidity and capital)

Dynamics of capital adequacy and capital ratios

Dynamics of liquidity ratios

Annex 2. Dynamics of the composition of assets, including the structure of the loan portfolio.

Composition of assets

Loan portfolio

Appendix 3. Loan portfolio quality (RAS and IFRS).

The quality of the RAS loan portfolio (overdue debt and reserves, %).

Loan portfolio quality under IFRS as of 01.09.2018

Annex 4. Dynamics of the composition of liabilities (including borrowed funds) and profitability indicators.

Composition of liabilities

Involved funds

Annex 5. Main indicators according to RAS, thousand rubles

Subsidiaries and related companies

Concept Leasing LLC, 100% subsidiary

Annex 7. Sectoral structure of the loan portfolio and concentration of customer funds under IFRS

Sectoral structure of the Group's loan portfolio under IFRS (01.09.2018)

Customer accounts (by type) in IFRS liabilities (as of September 1, 2018)

Appendix 8Dynamics of financial results and assets of the Bank since 2008.

Dynamics of financial results (million rubles)

Dynamics of assets (million rubles) and their growth rates (year-on-year, %).

Appendix 9. Scheme of relationships between the bank and persons under whose control or significant influence the bank is

Rating moneyzzz(together with @riskovik) :

• A - No restrictions - High level of reliability
• B - Limitations within the DIA - Medium level of reliability
• C - Do not place - Low level of reliability

Under the reliability of the bank, we mean a set of factors under which the bank is able to fulfill its obligations, have an adequate margin of safety in crisis situations, and not violate the standards and laws established by the Bank of Russia.

It should be borne in mind that only on the basis of reporting it is impossible to accurately determine the degree of reliability of the bank, so the study below is indicative.

Bank stability is the ability to withstand any external influences. Dynamics over a certain period may show stability (either improvement or deterioration) of various indicators, which may also indicate the stability of the bank.

Commercial Bank "LOKO-Bank" (joint stock company) is large Russian bank and among them ranks 61st in terms of net assets.

As of the reporting date (January 01, 2020), the net assets of LOCKO-BANK amounted to 117.08 billion rubles In a year assets increased by 34.19%. Growth of net assets positively affected the return on assets ROI: over the year, the net return on assets increased from 1.65% to 3.41% .

In terms of services rendered, the bank mainly attracts client money and more funds population(i.e. in this sense it is a retail client). The bank specializes in investments in securities(investment bank).

LOKO-BANK - has the right to work with non-state pension funds that provide mandatory pension insurance , and can attract pension savings and savings for housing for military personnel; has the right to open accounts and deposits in accordance with the law 213-FZ of July 21, 2014. , i.e. organizations of strategic importance for the military-industrial complex and security of the Russian Federation; to a credit institution appointed authorized representatives of the Bank of Russia.

• Moody's: Long-term international withdrawn (was B1); Forecast withdrawn (was positive);

Liquidity and reliability

The bank's liquid assets are those bank funds that can be quickly turned into cash in order to return them to depositor customers. To assess liquidity, consider a period of approximately 30 days, during which the bank will be able (or not able) to fulfill part of its financial obligations (because no bank can repay all obligations within 30 days). This "part" is called the "proposed outflow". Liquidity can be considered an important component of the concept of bank reliability.

Brief Structure highly liquid assets present in the form of a table:

From the table of liquid assets, we see that the amounts of funds on accounts with the Bank of Russia, highly liquid securities of banks and governments have slightly changed, the amounts of highly liquid securities of the Russian Federation have greatly increased, the amounts of funds on hand, NOSTRO correspondent accounts in banks (net), interbank loans, placed for up to 30 days, while the volume of highly liquid assets, taking into account discounts and adjustments (based on Ordinance No. 3269-U dated May 31, 2014), increased over the year 16.83 to 28.64 billion rubles

Share of highly liquid securities of the Russian Federation quite significant in the highly liquid assets of the bank, which causes some suspicion. This can probably be explained by the investment nature of the bank's activities.

Structure current liabilities is shown in the following table:

During the period under review, what happened to the resource base was that the amounts of deposits of individuals with a period of more than a year, other deposits of individuals (including individual entrepreneurs) (for a period of up to 1 year), deposits and other funds of legal entities changed slightly ( up to 1 year), incl. current funds of legal entities (without individual entrepreneurs), interest payment obligations, delinquencies, accounts payable and other debts, the amounts of interbank loans received for up to 30 days have greatly increased, the amounts of own securities have decreased, the amounts of LORO correspondent accounts of banks have significantly decreased, while expected cash outflow increased over the year from 7.80 to 33.62 billion rubles

At the moment under consideration, the ratio of highly liquid assets (funds that are easily available to the bank over the next month) and the estimated outflow of current liabilities gives us the value 85.17% , which means insufficient supply strength to overcome a possible outflow of customers, however, the bank is large and so significant churn is unlikely.

In correlation with this, the standards of instant (H2) and current (H3) liquidity are important for consideration, the minimum values ​​of which are set at 15% and 50%, respectively. Here we see that the H2 and H3 standards are now at sufficient level.

Now let's track the dynamics of change liquidity indicators during a year:

According to the median method (discarding sharp peaks): the amount of the standard current liquidity H3 and expert reliability of the bank during year and last semester tends to decrease, and the amount of the norm of instant liquidity H2 during of the year tends to increase, but in recent half a year tends to decrease.

Other coefficients for assessing the liquidity of the bank CB "LOKO-BANK" (JSC) can be seen at this link.

Structure and dynamics of the balance sheet

The volume of assets generating income for the bank is 92.07% in total assets, and the volume of interest-bearing liabilities is 79.47% in total liabilities. However, the amount of earning assets exceeds the average indicator for large Russian banks (84%).

Structure earning assets at the moment and a year ago:

We see that the amounts of Loans to individuals, Promissory notes, Investments in leasing transactions and acquired rights of claim have slightly changed, the amounts of Investments in securities have greatly increased, the amounts of Interbank loans, Loans to legal entities have decreased, and the total amount of income assets increased by 39.9% from 77.06 to 107.79 billion rubles

Analytics by degree of security issued loans, as well as their structure:

The specifics of the bank's business is strongly related to retail lending, which does not allow assessing the degree of security of loans.

Brief structure interest liabilities(i.e. for which the bank usually pays interest to the client):

We see that the amounts of legal funds have changed slightly. individuals, deposits of individuals. persons, the amounts of funds of banks (interbank loans and correspondent accounts) increased significantly, and the total amount of interest-bearing liabilities increased by 42.0% from 65.53 to 93.04 billion rubles

The structure of assets and liabilities of the bank CB "LOKO-BANK" (JSC) can be considered in more detail.

Profitability

Profitability of sources of own funds (calculated according to balance sheet data) increased over the year from 8.33% to 17.20%. At the same time, the return on equity ROE (calculated on forms 102 and 134) increased over the year from 9.89% to 22.25%(here and below, data are given in percent per annum for the nearest quarterly date).

Net interest margin decreased over the year from 6.64% to 5.58%. Profitability of lending operations decreased over the year from 18.60% to 16.62%. The cost of funds raised has changed little over the year from 5.94% to 6.04%. The cost of borrowed funds from banks increased over the year from 6.27% to 7.21%. The cost of household funds (individuals) decreased over the year With

Registration number: 2707

Date of registration by the Bank of Russia: 21.02.1994

BIC: 044525161

Main state registration number: 1057711014195 (23.11.2005)

Authorized capital: RUB 2,790,310,000

License (date of issue/last replacement) Banks with a basic license are banks that have a license with the word “basic” in the name. All other operating banks are banks with a universal license:
License to attract deposits and placement of precious metals (14.09.2015)
General license for banking operations (14.09.2015)
Licenses

Participation in the deposit insurance system: Yes

In the first years of operation, Loko-bank serviced the business processes of industrial and commercial enterprises owned by the businessmen who organized it.

Starting from 2008, Loko-bank began to work with individuals in the field of lending. Today, as part of the retail block, Loko-bank provides an expanded range of banking products:

• Credit and debit cards;
• Mortgage and;
• and deposit programs;
• Insurance;
• Remote service services - Internet banking and Private banking.

Currently, Loko-bank belongs to the category of universal financial institutions providing services to corporate clients, as well as operating in the segment of lending to small and medium-sized businesses.

CB Loko-Bank (JSC) is a universal commercial bank founded in 1994. Loko-Bank provides a wide range of financial services: comprehensive services for small and medium-sized businesses, consumer lending, raising funds for deposits, servicing wealthy clients and working on the securities market.

The bank is included in:

• TOP-60 banks by assets as of July 1, 2019 (according to RIA Rating);
• TOP-35 by size net profit as of April 1, 2019 (according to Banki.ru);
• TOP-60 of the most reliable banks in the Russian Federation for 2019 (according to Forbes);
• TOP-65 largest banks of the Russian Federation in terms of loan portfolio as of January 1, 2019 (according to RIA Rating);

The reliability of the Bank is confirmed at the international level by the largest agency Fitch Ratings (BB-), as well as the Russian rating agency ACRA (BBB+). Since 2004, the bank has been a member of the deposit insurance system, and since 2014 - the agent bank of the Deposit Insurance Agency for the payment of insurance compensation to depositors of other banks, which provides customers with an additional guarantee of the safety of deposits of individuals.

In 2015-2016, Loko-Bank was three times a finalist in DIA competitions for compensation payments to depositors of troubled banks.

In 2016, Loko-Bank adopted an updated strategy and began a process of deep transformation of business processes, which ensured the transition of the bank to a digital model focused on remote customer service. Also, as part of the strategy, Loko-Bank adopted an investment plan to develop the IT infrastructure. The ultimate goal is to modernize the bank in the medium term into the format of an IT company, to form a range of products available in digital channels.

Loko-Bank has a wide network of offices, numbering more than 48 branches in 21 regions Russian Federation. The bank's clients are more than 290,000 individuals and more than 30,000 enterprises representing dozens of sectors of the Russian economy.

Participation of international investment funds in the capital of the bank for more than 10 years has contributed to maintaining high standards of corporate governance and risk management, as well as improving key business processes. Loko-Bank continues to focus on the best world practices, and annual indicators demonstrate the constant dynamics of the bank's business development.

Key performance indicators for 9 months of 2019 in accordance with the standards of the international financial reporting(IFRS):

• Net interest income made up 4,1 billion rubles, having increased by 3,2% compared to the same period last year.
• Net profit grew by 2,1% compared to the same period last year to 1,2 billion rubles.
• Net interest margin stays stable high level and is 6,3% .
• operating income increased by 18,4% compared to the same period last year and amounted to 6,8 billion rubles.
• Share of net fee and commission income in the structure of operating income remains at a consistently high level and amounts to 30% .
• Gross loan portfolio, net of allowance for expected credit losses grew up on 3,9% and made 56,2 billion rubles.
• Basel capital adequacy ratio made up 20,3% .

How many rumors will not appear in the near future: and what Bank Uralsib is closing in 2020 and Home Credit Bank will close soon and Russian Standard Bank has already closed and Vostochny Express Bank is closing in 2020. Such conversations are more a consequence of the client's unpleasant experience in the bank than plausible statements.

Judging by the reviews and comments of users, the banks are to blame, even if the client himself overdue the payment or signed an unprofitable agreement with an overestimated loan interest. Yes, banks take advantage of financial illiteracy and arrogance of clients, but let's be honest: we ourselves are to blame for our troubles.

How to understand that the bank will close

Often determine which of the credit financial institutions closes, leaks from the Central Bank of Russia help, namely:

• news of the upcoming license revocation of financial institutions,
• rumors about the introduction of an interim administration,
• downgrading of rating agencies that are directly subordinate to the Central Bank of Russia,
• problems with getting cash from ATMs and cash desks of financial organizations, etc.

The Central Bank as a mega-regulator has much more leverage and forecasting tools than we used to think. On the example of organizations that make up rating scores one can already guess about the problems of the bank or about the attitude of the Central Bank of the Russian Federation towards it. They don’t just cancel licenses, this is preceded by clear events: poor reporting by credit organizations, “holes” in the balance sheet, the flight of directors with capital abroad, difficulties in obtaining cash, etc. Therefore, when assessing the possible bankruptcy of a bank, evaluate the likelihood of revocation of the license on the above points.

List of reliable banks for 2020

Below we give a forecast of which banks will not close in 2020 in Russia. The list was compiled on the basis of the deposits of each bank, the network of branches, the volume of assets and loans issued. The rating will be useful, first of all, to depositors in bank deposits.

Bank rating by assets:

1. Sberbank of Russia
2. GazPromBank
3. VTB 24
4. FC Otkritie
5. Rosselkhozbank
6. Alfa Bank
7. Bank of Moscow
8. National Clearing Center
9. UniCredit Bank

It is unlikely that the listed banks will close in the near future. Mergers are possible, but the license of these banks will certainly not be revoked. It is noteworthy that in terms of profit rating the list of banks remains the same, with the exception of the National Clearing Center, ousted by RosBank.

From this list strong commercial bank Alfa-Bank stands out, the bank's management has no plans to close this year, besides, this bank is in the top three in terms of cash turnover in ATMs - right after Sberbank and VTB.

Rating of banks on consumer loans:

1. Sberbank of Russia
2. VTB 24
3. GazPromBank
4. Rosselkhozbank
5. Bank of Moscow
6. Alfa Bank
7. RaifFaisenBank
8. RosBank
9. HCF Bank
10. Eastern Express Bank

In this list, we see loans issued to ordinary users for consumption. Looks apart among the giants of the market Orient Express. Whether the bank closes in 2018 or not, we will wait and see, but we must carefully read loan and deposit agreements, monitor the financial statistics of banks, including the ratio of loans and attracted deposits.

Full list of banks

It is not easy to predict the closure of banks in Russia in 2020, the list of unreliable banks changes every 2-4 weeks. We will share statistics, on the basis of which you yourself will decide whether the bank will go bankrupt in the near future or not.

Bank reliability rating by assets