| For the year, RUB bln |
| Operating income before provisions | 915.3 | 1,094.8 | 1,300.7 | 1,429.8 | 1,697.5 | 18.7 |
| Provision charge for loan impairment | (21.5) | (133.5) | (357.0) | (473.1) | (342.4) | –27.6 |
| Operating income | 893.8 | 959.9 | 939.3 | 954.6 | 1,355.1 | 42.0 |
| Operating expenses | (445.9) | (504.2) | (565.1) | (623.4) | (677.6) | 8.7 |
| Profit before tax | 447.9 | 455.7 | 374.2 | 331.2 | 677.5 | 104.6 |
| Net profit | 347.9 | 362.0 | 290.3 | 222.9 | 541.9 | 143.1 |
| As of 31 December, rub bln |
| Loans and advances to customers, net | 10,499 | 12,934 | 17,757 | 18,728.0 | 17,361.0 | –7.3 |
| Loans and advances to customers before provision for loan impairment | 11,064 | 13,544 | 18,626 | 19,924.0 | 18,665.0 | –6.3 |
| Total assets | 15,097 | 18,210 | 25,201 | 27,335 | 25,369 | –7.2 |
| Due to individuals and corporate customers | 10,179 | 12,064 | 15,563 | 19,798.0 | 18,685.0 | –5.6 |
| Total liabilities | 13,474 | 16,329 | 23,181 | 24,960.0 | 22,547.0 | –9.7 |
| Total equity | 1,624 | 1,881 | 2,020 | 2,375 | 2,822 | 18.8 |
| Per share, rub per share |
| Basic and diluted earnings per ordinary share | 16.03 | 16.78 | 13.45 | 10.36 | 25.0 | 141.3 |
| Dividends per ordinary share declared during the year | 2.08 | 2.57 | 3.2 | 0.45 | 1.97 | 337.8 |
| Net assets per ordinary share | 75.2 | 87.5 | 94.0 | 110.5 | 131.3 | 18.8 |
| Financial ratios, % |
| Profitability ratios |
| Return on assets (ROA) | 2.7 | 2.2 | 1.4 | 0.9 | 2.1 | 1.2 p.p. |
| Return on equity (ROE) | 24.2 | 20.8 | 14.8 | 10.2 | 20.8 | 10.6 p.p. |
| Spread (return on assets less cost of funds) | 5.8 | 5.7 | 5.5 | 4.1 | 5.3 | 1.2 p.p. |
| Net interest margin (net interest income to average earning assets) | 6.1 | 5.9 | 5.6 | 4.4 | 5.7 | 1.3 p.p. |
| Operating expenses to operating income before provisions | 48.7 | 46.0 | 43.2 | 43.7 | 39.7 | –4.0 p.p. |
| Net loans and advances to customers to current accounts and term deposits of individuals and corporate customers and savings sertificates (net loans-to-deposits ratio) | 100.9 | 104.2 | 110.8 | 91.9 | 90.6 | –1.3 p.p. |
| Capital adequacy ratios, % |
| Core capital ratio (Tier I) | 10.4 | 10.6 | 8.6 | 8.9 | 12.3 | 3.4 p.p. |
| Total capital ratio (Tier I and Tier II) | 13.7 | 13.4 | 12.1 | 12.6 | 15.7 | 3.1 p.p. |
| Equity to total assets | 10.8 | 10.3 | 8.0 | 8.7 | 11.1 | 2.4 p.p. |
| Asset quality ratios |
| Non-performing loans to total loans outstanding (NPL ratio) | 3.2 | 2.9 | 3.2 | 5.0 | 4.4 | –0.6 p.p. |
| Provision for loan impairment to non-performing loans (NPL coverage) (times) | 1.6 | 1.5 | 1.4 | 1.2 | 1.6 | 0.4 |
| Provision for loan impairment to total gross loans to customers | 5.1 | 4.5 | 4.7 | 6.0 | 7.0 | 1.0 p.p. |
I find enhanced performance to be the most important result of 2016: the cost to income ratio improved to 39.7%, and coverage of operating costs with the net commission income increased to 51.5%. In total, this considerably reduces the sensitivity of the bank to a possible reduction in the marginality of the banking business and allows us to look to 2017 with optimism.Alexander Morozov Deputy Chairman of the Executive Board