Net profit of PJSC SAFMAR Financial investments in accordance with IFRS for 1Q 2018 amounted to RUB 3.2bn

Holding company SAFMAR Financial investments (SFI; MOEX: SFIN) announced 1Q 2018 results according to IFRS. In accordance with the consolidated statements (unaudited) for three months of 2018, the net profit of the holding company amounted to RUB 3.2bn.

This achievement resulted from the efficient performance of the holding’s subsidiary companies, which substantially increased their operating performance and generated profits for the first quarter of 2018:

Leasing company Europlan:

·         Leasing portfolio increased by 5.4% from RUB 40.6bn as of 31.12.2017 up to RUB 42.8bn as of 31.03.2018.

·         Operating income for the leasing segment increased by 26.4% from RUB 1.5bn for 1Q 2017 up to RUB 1.9bn for 1Q 2018.

·         Net profit for 1Q 2018 amounted to RUB 0.7bn.

·         Return on equity (RoAE) as of 31.03.2018 amounted to 28.6%. 

VSK Insurance Group:

·         Net profit for 1Q 2018 more than doubled compared year-on-year and amounted to RUB 2.8bn.

·         Group’s gross written premiums for the reporting period increased by 76% up to RUB 24bn.

·         Group’s insurance payments decreased by 7% down to RUB 6.8bn.

·         VSK Group’s assets amounted to RUB 110bn, and its equity exceeded RUB 23bn. 

Non-Governmental Pension Fund (NPF) SAFMAR:

·         In 1Q 2018, NPF SAFMAR generated the net profit amounting to RUB 0.9bn in accordance with IFRS, which is four times higher compared to the result of the same period last year.

·         The Fund generated RUB 3.8bn of investment income against RUB 2bn for the same period last year. 

·         The Fund’s assets as of 31.03.2018 exceeds RUB 200bn, and the equity capital (accumulated profit of prior periods included) amounts to RUB 24.9bn.

·         Return on equity (RoAE) as of 31.03.2018 amounted to 14.7%.

Therefore, the major part of the SFI profit for the reporting period belongs to profit from insurance activities (37.5% or RUB 1.2bn), and the major part of income – to income from leasing activities (33.9% or RUB 1.8bn). The equity of holding company SAFMAR Financial investments for the first quarter increased up to RUB 86.4bn from RUB 84.6bn. Return on equity for 1Q 2018 amounted to 14.8%.

Whereas the holding company’s assets as of 31 March 2018 amount to RUB 315bn, which is 5.4% higher compared year-on-year.

Avet Mirakyan, CEO of SFI, evaluated financial results of the holding company for the first quarter as positive and commented: ‘The holding group companies achieved truly efficient results for the first three months of 2018. VSK Insurance House almost doubled its profit compared year-on-year, and the same may be said about the gross income of NPF SAFMAR. Europlan significantly increased its business volume with no losses in efficiency, which often results in rapid quantitative growth. Europlan generated RUB 0.7bn of net profit for 1Q 2018. As for subsidiary companies and the holding company in general, we observe the tendency for growing operating results year-on-year and hope that it will last for the whole year’.


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