Net profit generated by Alfa Bank in 2016 amounted to Rub 5.1 bln under RAS, the financial institution's press service told Banki.ru.
The Banki.ru news & analytical service pointed out that back on December 1, 2016 Alfa Bank's financial result was negative (minus Rub 2.6 bln).
"It should be noted that in 2015 the lending institution also reported losses during the first two quarters, but closed the fiscal year with RAS net profit of Rub 43.8 bln, taking the second place in terms of net profit among Russian lending institutions. One of the reasons behind a contraction in the lending institution's profit this year was heavy expenses incurred to compile loan loss provisions (Alfa Bank put aside Rub 518.4 bln in 2016), while profit from the restoration of provisions amounted to around Rub 453 bln. So, Alfa Bank's net provision costs totaled roughly Rub 65.4 bln in 2016," the Banki.ru news & analytical service noted.
Meanwhile, Alfa Bank itself, on the contrary, pointed to positive trends in the key areas of business. Specifically, net interest income (the bank's main profit earner) climbed 47% against 2015 primarily amid a drop in the cost of funds (the bank's cost side declined by more than 20%). Net commission income jumped 11.4% y-o-y, reflecting the bank's strategy aimed at cementing transaction business and increasing the share of risk-free income in the bank's operating income.
