Bank Loan portfolio analysis: the Case of Expobank JSC

Abstract

   The goal of any financial institution is to make profit. To date, credit institutions receive the main profit from interest and commission income. Interest income is mainly formed by issuing loans to individuals and legal entities. Commercial banks must constantly analyze the loan portfolio in order to maintain its “quality”. The main criterion for the success of a credit institution is the quality of the loan portfolio, since the quality of the loan portfolio determines how effective the work in the credit institution will be. This article analyzed the loan portfolio of a private credit organization Joint Stock Company “Expobank”. The study was based on federal acts, by-laws, regulations of the Bank of Russia, as well as statistical and financial reporting of Expobank JSC. The main indicators are analyzed that give an idea of the quality and dynamics of changes in the loan portfolio for the period 2019-2020. The overdue debt of the loan portfolio was considered, as well as the main coefficients of the loan portfolio were calculated, which show the share of risk: total credit activity, use of borrowed funds, doubtful debts, and others. Measures are given to minimize risks and increase the level of income of a credit institution. Since the degree of development of a credit institution largely depends on the quality of the loan portfolio.