Annual report 2016

Consolidated statement

Consolidated Statement of Profit or Loss for the Year Ended December 31, 2016 (in millions of Russian rubles)
Notes Year ended December 31, 2016 Year ended December 31, 2015
Fee and commission income 5 19 797,6 17 784,0
Interest and other finance income 6 22 730,6 27 050,0
Interest expense (118,5) (122,9)
Net gain / (loss) on financial assets available-for-sale 7 1 425,3 (280,7)
Foreign exchange gains less losses 8 (342,4) 1 438,5
Other operating income 74,6 121,1
Operating Income 43 567,2 45 990,0
Administrative and other operating expenses 9 (6 312,3) (5 488,7)
Personnel expenses 10 (5 947,1) (5 783,2)
Operating Profit 31 307,8 34 718,1
Share of profits of associates - 1,2
Profit before Tax 31 307,8 34 719,3
Income tax expense 11 (6 125,2) (6 867,2)
Net Profit 25 182,6 27 852,1
Attributable to:
Equity holders of the parent 25 178,1 27 908,8
Non-controlling interest 4,5 (56,7)
Earnings per share
Basic earnings per share, rubles 24 11,22 12,51
Diluted earnings per share, rubles 24 11,16 12,44
Chairman of the Executive Board Afanasiev A.K.

March 2, 2017
Moscow

Chief Financial Officer, Management Board Member Fetisov E.E.

March 2, 2017
Moscow

Consolidated Statement of Comprehensive Income for the Year Ended December 31, 2016 (in millions of Russian rubles)
Notes Year ended December 31, 2016 Year ended December 31, 2015
Net profit 25 182,6 27 852,1
Other comprehensive income that may be reclassified subsequently to profit or loss:
Exchange differences on translating foreign operations (26,6) (119,5)
Net income resulting from revaluation of investments available-for-sale 1 686,7 2 506,2
Net (gain) / loss on investments available-for sale reclassified to profit or loss 7 (1 425,3) 280,7
Income tax relating to items that may be reclassified (52,3) (557,3)
Other comprehensive income that may be reclassified subsequently to profit or loss 182,5 2 110,1
Total comprehensive income 25 365,1 29 962,2
Attributable to:
Equity holders of the parent 25 378,1 30 112,3
Non-controlling interest (13,0) (150,1)
Total comprehensive income 25 365,1 29 962,2
Consolidated Statement of Financial Position as at December 31, 2016 (in millions of Russian rubles)
Notes December 31, 2016 December 31, 2015
Assets
Cash and cash equivalents 12 380 516,6 992 696,1
Financial assets at fair value though profit or loss 0,4 0,4
Due from financial institutions 13 63 842,7 44 403,8
Central counterparty financial assets 14 1 733 263,8 518 509,3
Investments available-for-sale 15 218 496,2 167 472,3
Property and equipment 16 7 706,4 6 795,8
Intangible assets 17 18 357,9 18 029,4
Goodwill 18 15 971,4 15 971,4
Current tax prepayments 51,9 420,4
Assets held for sale 122,5
Deferred tax asset 11 1 776,5 114,7
Other assets 19 1 954,1 1 781,5
Total assets 2 441 937,9 1 766 317,6
Liabilities
Balances of market participants 20 574 590,1 1 119 097,5
Central counterparty financial liabilities 14 1 733 263,8 518 509,3
Distributions payable to holders of securities 2 952,3 6 138,4
Margin account under reverse repo 13 417,7
Current tax payables 990,5 384,4
Liabilities related to assets held for sale 1,4
Deferred tax liability 11 3 165,6 5 017,3
Other liabilities 21 3 592,0 3 142,0
Total liabilities 2 318 554,3 1 652 708,0
Equity
Share сapital 22 2 498,1 2 498,1
Share premium 22 32 286,2 32 471,1
Treasury shares 22 (2 271,9) (2 921,8)
Foreign currency translation reserve (21,4) (16,5)
Reserves relating to assets held for sale (72,1)
Investments revaluation reserve 1 110,5 901,4
Share-based payments 413,1 504,6
Retained earnings 89 177,8 79 991,0
Total equity attributable to owners of the parent 123 192,4 113 355,8
Non-controlling interest 191,2 253,8
Total equity 123 383,6 113 609,6
Total liabilities and equity 2 441 937,9 1 766 317,6
Consolidated Statement of Cash Flows for the Year Ended December 31, 2016 (in millions of Russian rubles)
Notes Year ended December 31, 2016 Year ended December 31, 2015
Cash flows from / (used in) operating activities:
Profit before tax 31 307,8 34 719,3
Adjustments for:
Depreciation and amortisation charge 9 2 294,3 1 799,7
Net change in deferred commission income (12,5) 395,8
Accrued expenses 28,2
Fair value adjustment on securities at fair value through profit or loss 58,3
Share-based payment expense 10 255,3 289,9
Unrealized loss/(gain) on foreign exchange operations 151,7 (207,7)
Share of profits of associates (1,2)
(Gain) / Loss on disposal of investments available-for-sale 7 (1 425,3) 280,7
Net change in interest accruals 764,4 (2 540,3)
Net loss on disposal of property and equipment and intangible assets 9 9,5 26,1
Impairment of other assets 19 2,8 19,3
Impairment related to assets held for sale 9 106,0
Loss on disposal of assets held for sale 9 52,4
Changes in operating assets and liabilities:
Due from financial institutions (30 590,7) 30 884,2
Financial assets at fair value through profit or loss 11 226,7
Central counterparty financial assets (1 214 754,5) (378 899,5)
Other assets (152,6) (733,5)
Balances of market participants (429 489,5) (330 346,6)
Central counterparty financial liabilities 1 214 754,5 378 899,5
Distributions payable to holders of securities (3 186,1) (214,6)
Margin account under reverse repo (417,7) 417,7
Other liabilities (132,3) (91,2)
Cash flows used in operating activities before taxation (430 568,5) (253 883,2)
Income tax paid (8 720,9) (7 101,3)
Cash flows used in operating activities (439 289,4) (260 984,5)
Consolidated Statement of Cash Flows for the Year Ended December 31, 2016 (Continued) (in millions of Russian rubles)
Notes Year ended December 31, 2016 Year ended December 31, 2015
Cash flows from / (used in) investing activities:
Purchase of investments available-for-sale (183 585,0) (154 789,3)
Proceeds from disposal of investments available-for-sale 116 623,9 78 486,0
Purchase of property and equipment and intangible assets (3 548,3) (2 208,1)
Proceeds from disposal of property and equipment and intangible assets 5,3 7,6
Proceeds from sale of investments in associates 34,2
Disposal of subsidiaries, net of cash disposed 46,5
Cash flows used in investing activities (70 423,4) (78 503,8)
Cash flows from / (used in) financing activities:
Dividends paid (15 994,8) (8 653,5)
Uncalled dividends returned 162,3
Sale of treasury shares 355,1 163,6
Acquisition of non-controlling interest in subsidiaries (5,5)
Acquisition of treasury shares (236,9)
Сash flows used in financing activities (15 719,8) (8 489,9)
Effect of changes in foreign exchange rates on cash and cash equivalents (85 847,9) 175 992,2
Net decrease in cash and cash equivalents (611 280,5) (171 986,0)
Cash and cash equivalents, beginning of period 12 991 797,1 1 163 783,1
Cash and cash equivalents, end of period 12 380 516,6 991 797,1

Interest received by the Group during the year ended December 31, 2016, amounted to RUB 23 497,0 million (December 31, 2015: RUB 24 439,3 million).

Interest paid by the Group during the year ended December 31, 2016, amounted to RUB 116,0 million (December 31, 2015: RUB 122,9 million).

Consolidated Statement of Changes in Equity for the Year Ended December 31, 2016 (in millions of Russian rubles)
Share capital Share premium Treasury shares Invest-ments revaluation reserve Share-based payments Foreign currency translation reserve Reserves relating to assets held for sale Retained earnings Total equity attributable to owners of the parent Non-controlling interest Total equity
December 31, 2014 2 498,1 32 528,0 (3 365,0) (1 328,2) 437,4 (62,5) - 60 735,6 91 443,4 404,0 91 847,4
Net profit 27 908,8 27 908,8 (56,7) 27 852,1
Other comprehensive income 2 229,6 (26,1) 2 203,5 (93,4) 2 110,1
Total comprehensive income for the period 2 229,6 (26,1) 27 908,8 30 112,3 (150,1) 29 962,2
Foreign currency translation reserve relating to Assets held for sale 72,1 (72,1)
Transactions with owners
Dividends declared(Note 23) (8 653,4) (8 653,4) (0,1) (8 653,5)
Share-based payments (56,9) 443,2 67,2 453,5 453,5
Total transactions with owners (56,9) 443,2 67,2 (8 653,4) (8 199,9) (0,1) (8 200,0)
December 31, 2015 2 498,1 32 471,1 (2 921,8) 901,4 504,6 (16,5) (72,1) 79 991,0 113 355,8 253,8 113 609,6
Net profit 25 178,1 25 178,1 4,5 25 182,6
Other comprehensive income 209,1 (4,9) (4,2) 200,0 (17,5) 182,5
Total comprehensive income for the period 209,1 (4,9) (4,2) 25 178,1 25 378,1 (13,0) 25 365,1
Transactions with owners
Dividends declared(Note 23) (15 994,7) (15 994,7) (0,1) (15 994,8)
Share-based payments (99,9) 801,8 (91,5) 610,4 610,4
Repurchase of treasury shares (85,0) (151,9) (236,9) (236,9)
Sale of business in Ukraine 76,3 76,3 (40,6) 35,7
Acquisition of non-controlling interest 3,4 3,4 (8,9) (5,5)
Total transactions with owners (184,9) 649,9 (91,5) 76,3 (15 991,3) (15 541,5) (49,6) (15 591,1)
December 31, 2016 2 498,1 32 286,2 (2 271,9) 1 110,5 413,1 (21,4) 89 177,8 123 192,4 191,2 123 383,6