RU
May 3, 2017
Consolidated net profit of FG FUTURE in 2016 amounted to RUB 4.5 bln

Moscow, May 3, 2017 – The Public Joint Stock Company FUTURE Financial Group announces the publication of its IFRS financial results for 2016.

The Company's core activities include non-state pension insurance (NPI) and compulsory pension insurance (CPI).

The Company's consolidated net profit in 2016 amounted to RUB 4.5 bln, compared to the loss of the previous year making RUB 6.3 bln. The generation of profit according to the results of the reporting period is due to a significant increase in operating profit from the investment activities in 2016, as well as a decrease in other costs upon the creation of a provision in 2015 for the impairment of claims to LLC Vneshprombank in the amount of RUB 7.4 bln.

At the end of 2016, the Company demonstrated high growth rates of operating profit from investment activities, which amounted to RUB 19.4 bln. An increase of 106% was mainly due to the growing accumulated coupon yield on corporate bonds in the amount of  RUB 13.1 bln, which is an increase of 99.9%, and the formation of profit in the reporting period from operations with financial instruments measured at fair value.

2016

2015

∆ 2016/2015 (%)

 

 

 

 

 

Assets 

RUB bln

348.1

303.1

14.8

Equity capital

RUB bln

55.9

46.5

20.2

Obligations on compulsory pension insurance (CPI)

RUB bln

260.0

226.9

14.6

Obligations on non-state pension insurance (NPI)

RUB bln

25.2

24.8

1.6

Operating result

RUB bln

19.4

9.4

106.4

Net profit

млрд руб.

4.5

(6.3)

-

The volume of CPI and NPI obligations for the reporting period amounted to RUB 260.0 bln and RUB 25.2 bln respectively; the total increase in pension liabilities in 2016 comprised RUB 33.6 bln or 13.3%.

Equity capital at the end of 2016 reached RUB 55.9 bln, the increment in the reporting period amounted to 20.2%, which was mainly due to a decrease in the accumulated loss from RUB 12.3 bln at the end of 2015 to RUB 4.9 bln at the end of 2016.


2016

2015

Profit from Pension Activities

(9.6)

(8.7)

Profit from Operating Activitie

19.4

9.4

G&A

(2.1)

(1.1)

At the end of 2016, the amount of pension activities comprised RUB 9.6 bln, which is by 10% less than in 2015 due to reduced contributions and increased payments on pension activities.

General and administrative expenses that showed a significant growth in 2016 are not comparable in the statements for 2016 and 2015 due to different periods of showing the affiliated funds’e expenses, while comparable expenses have been reduced by RUB 300 mln – the effect from the merger of NPF StalFond. A similar effect is expected from synergies in 2017.

Marina Rudneva, CEO of FUTURE Financial Group : "The company demonstrated strong financial results in 2016, showing a RUB of 4.5 bln net profit due to a 42% increase in interest income and a 106% increase in income from investment activities. The above result was achieved against the backdrop of the concurrent processes of consolidating non-state pension funds into the group's structure, which required significant costs and resources. In addition, it should be noted that the results of the 2016 engagement campaign will be reflected in the statements for 2017."

Detailed information of the Company's statements are available on our website in the "Shareholders and Investors" section at http://futurefg.ru/investoram/

The review of the financial results of PJSC FUTURE Financial Group is based on the Company's audited consolidated financial statements, developed under IFRS as of December 31, 2016 year-end.