Profile of the Bank
Bank Saint Petersburg is the largest privately-owned universal bank in Northwest Russia and plays an important and constructive role in the development of the Russian banking system, established in the same year as the Bank. As of January 1, 2017, Bank Saint Petersburg was the 16th largest bank by assets and the 14th largest by retail deposits among Russian banks.
Bank Saint Petersburg is the largest Russian regional bank with a strong and positive brand that has won the trust and support of its customers: today, the Bank provides services to 1 770 000 individuals and 52 000 corporates, including major companies located in St. Petersburg. As of January 1, 2017, the Bank’s customer service network comprises 61 outlets (52 in St. Petersburg), 8 mortgage lending centres, 3 car lending centres and 781 ATMs.
The Bank’s business remains primarily focused on St. Petersburg, which has a market comparable in capacity and size to Paris or a medium-sized European country, such as Denmark or Finland. Bank Saint Petersburg maintains a stable position across all major banking service markets. As of the end of 2016, the Bank held the following market shares in St. Petersburg: 16.9% of the SME lending market, 8.6% of the corporate deposits market, 7.8% of the retail lending market, and 8.6% of the retail deposits market.
St. Petersburg accounts for 74% of loans and 91% of deposits of the Bank. Bank Saint Petersburg has expert knowledge of the region, responding promptly to customer needs and market changes. The Moscow branch accounts for 24% of loans and 6% of deposits and the Evropeisky Branch in Kaliningrad accounts for 2% and 3% respectively. Business is also diversified by industry and lending volumes.
Bank Saint Petersburg is the first bank in the last 100 years that has designed and built its own headquarters in St. Petersburg. The ultramodern Head Office was opened in 2011 and became an embodiment of the most advanced technologies in the fields of engineering solutions and customer service.
The Bank is one of the national leaders in the application of high technology solutions. When opening new offices, the Bank is introducing its "office of the future" concept and, at the same time, is actively developing its business in a digital environment. The number of individuals who signed up for Internet Bank showed a growth of more than 20% in 2016: from 600 000 to 770 000, representing 1/4 of the economically active population of St. Petersburg, and every eighth person in this population group uses the mobile banking application, with the number of downloads exceeding 200 000.
Bank Saint Petersburg became the first privately-owned Russian bank to complete an IPO at the end of 2007, as this guaranteed not only new equity, but also a new level of reliability and reputation. Today, Bank Saint Petersburg is listed on the Moscow Exchange. To this day, the IPO of Bank Saint Petersburg maintains its status as one of the most successful IPOs among Russian banks.
First and foremost, Bank Saint Petersburg is a city bank whose task is to contribute to St. Petersburg’s future by providing high quality banking services to the residents of the city and its local companies. The Bank pays special attention to the financing programs related to the city life of St. Petersburg by providing loans to all spheres of industry and production facilities, as well as actively developing credit programs focused on small and medium enterprises (SMEs). The Bank follows the principles of corporate social responsibility and supports city programs aimed at improving the social and economic climate of St. Petersburg.
STRATEGY 2016 – 2018
Following the updates made by the Supervisory Board in September 2016, the key priority of BSPB’s Strategy for 2016–2018 has been efficiency. The new “Efficiency Over Growth” concept envisions the reallocation of capital to the most efficient businesses and reflects the fact that current challenges prompt the Bank to prioritize growth in those areas that boost its efficiency.
The key financial goal remains the long-term growth of shareholder value and ROAE recovery to 15%. Return on equity is to be recovered through raising the share of retail loans in the loan portfolio to 20%, increasing the share of demand deposits in liabilities and the continued growth of the risk-free fee and commission income share in revenues.
The Bank maintains its focus on retail business, aiming to further broaden its customer base both in the home region and beyond. Digital banking innovations also remain strategically important, keeping the Bank at the cutting edge of technology both today and on the mid-term horizon.
The focus on efficiency also means maintaining control over expenses and cost of risk, as well as the net interest margin growth.
Story of Strategic Development