Net interest income
Net interest income earned in 2012 totaled 704.8 bln RUB, increasing 25.6% for the year (or 20.4% excluding 2012 acquisitions).
The net interest margin declined by 0.3 pp y-o-y to 6.1%. The margin was negatively affected by
- the rising share of relatively expensive corporate term deposits, which increased the absolute figure for interest expenses as well as the ratio of interest-bearing liabilities to interest-earning assets;
- increased debt from other banks that is dominated by relatively expensive repo loans from CBR; and
- decreased yields on loans. On the other hand, increased share of loans in interest-earning assets structure supported NIM.
THE FOLLOWING FACTORS AFFECTED NIM IN 2012
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| 2011 NIM | 6.4% |
| Return on corporate loans | — |
| Return on retail loans | -0.1% |
| Return on amounts due from other banks | — |
| Return on securities | 0.1% |
| Structure of interest-earning assets | 0.3% |
| Costs of amounts due to corporate customers | -0.3% |
| Costs of amounts due to individuals | -0.1% |
| Costs of amounts due to other banks | -0.1% |
| Costs of issued securities and subordinated debt | — |
| Structure of interest-bearing liabilities | — |
| Ratio of interest-earning assets to interest-bearing liabilities | -0.1% |
| 2012 NIM | 6.1% |
