NSPK’s Net Profit in 2018 Amounted to 4.8 Billion Rubles
NSPK published its 2018 financial statements prepared in accordance with the Russian Accounting Standards (RAS).
At year-end 2018, NSPK’s net profit amounted to 4.8 billion rubles. Thus, this indicator increased almost by half (43%) YoY. Similar to the previous year, the revenue growth factored significantly in the net profit markup.
In 2018, the company’s proceeds amounted to 11.9 billion rubles, 50% more than in 2017; in absolute terms, NSPK’s revenue grew by almost 4 billion rubles.
Such a significant growth in revenue resulted, in particular, from the ongoing development of the cashless payments market. According to the Bank of Russia’s official data, the number of transactions performed by individuals in the Russian cashless payments* market in 2018 increased by more than 40% (from 20.6 to 29 billion transactions); in monetary terms, the market grew almost by 38% (from 35.1 to 48.4 trillion rubles).
Moreover, the growth in the company’s revenue was influenced by the launch of new Mir products and services and the continuing increase in the Mir card issuing; at year-end 2018, the number of national payment cards issued by Russian banks exceeded 53 million.
In 2018, NSPK’s expenses amounted to 6.2 billion rubles, which was 51% more as compared to 2017. The increase in expenses was due to the expansion of the range of services provided by the company and the introduction of new services to international payment systems and Mir participant banks. For example, last year NSPK connected a second pool of banks to Samsung Pay and prepared the infrastructure required to launch the Instant Payments System early in 2019, in which the Bank of Russia acts as the operator and the settlement center, and NSPK acts as the operations, payment and clearing center.
During 2018, NSPK continued to invest a significant part of its own funds in the development of Mir. As a result, new products and services for citizens were launched and promoted in the market.
The Profits tax for the reporting period amounted to 1.34 billion rubles.
In 2018, NSPK maintained the traditionally high level of return on equity having increased this indicator by 1.8 percentage points up to 38.5%.
During the reporting period, the company neither received any additional financing on account of the increase in the authorized capital by the shareholder nor attracted loan proceeds. All operating and investment expenditures in 2018 were made from its own funds.
NSPK chose FinExpertiza as its auditor in 2018. Transition to a company that was not a member of the international accounting network was laid down in the NSPK’s development roadmap at the moment unique innovative projects had appeared.
*Transactions performed in Russia and abroad with payment cards issued by banking institutions. They include information on the amount of transactions performed with debit and credit cards, information on customs payment transactions, as well as transactions not related to payment for goods and services. Excluding information on prepaid cards and cash withdrawal transactions.