- 1H 2019 Core banking revenues increased by 14.0% and amounted to RUB 14.7 billion;
- 1H 2019 Net F&C income amounted to RUB 3.3 billion (+21.0% compared with 1H 2018);
- Retail loan portfolio grew by 11.0% YTD and amounted to RUB 94.0 billion;
- In Summer 2019 the major credit rating agencies upgraded Bank’s ratings with Stable outlook:
- Fitch to ‘BB’ from ‘BB-‘
- Moody's to Ba3 from B1
- ACRA to A (RU) from A- (RU)
*Consolidated IFRS FS for 1H 2019.
Alexander Savelyev, Chairman of the Management Board, comments on the Bank’s 1H 2019 results:
”We are pleased to note that the Bank is showing a significant increase in its core business revenue, including an impressive 21% increase in Fees and Commissions Income. This is the main result of the first half of 2019. In addition, the stability of the Bank was reflected in the increase in our ratings by the largest rating agencies. We also amended the Strategy, giving an additional focus on corporates, further digitalizing the Bank and strengthening its position in the EXIM market. As a part of our new positioning as the Bank of the two capitals, we set ourselves aggressive goals for business growth in Moscow: transaction business in the small and medium segments, and also lending in the large segment”.
On July 31, 2019 the Supervisory Board of Bank Saint Petersburg has resolved to acquire 12,000,000 ordinary shares. The approved price of acquisition is RUB 53.5 per share. Shareholders' offers may be submitted to the Bank from September 6, 2019 to October 7, 2019.
The Bank’s Supervisory board has also approved amendments to the Bank’s Strategy 2018-2020. This document confirms the following additional strategic goals:
- To become the best private bank for corporates in the regions of operation;
- To become one of the leaders in terms of online sales and operations, while maintaining a position of the most efficient digital classic Russian bank;
- To become one of the leaders on the EXIM market.
The amendment of the Strategy provides for the positioning of the Bank as the Bank of two capitals, which implies the intensification of work in the Moscow region market in the direction of the transaction business of the small and medium segments, as well as with the growth of large corporate business with an increase in the share of Moscow from 30 to 40% of the corporate loan portfolio of the Bank.
Bank Saint Petersburg is ranked 15th in terms of assets and 15th in terms of retail deposits among Russian banks (Interfax ranking). As at July 1, 2019, the Bank provides services to 2 150 000 individuals and 50 000 corporates; the number of cards issued by the Bank reached 1 355 000; the Bank’s card network comprised of 802 ATMs. At present Internet Bank is used by 1 198 000 clients.
Results summary for 1H 2019
1H 2019 Net interest income (NII) amounted to RUB 11.1 billion (+7.3% compared with 1H 2018). Interest income for 1H 2019 increased by 9.5% compared with 1H 2018; interest income is comprised mostly of interest income on loans and advances to customers (71.9%) that increased by 11.8%. Interest expense increased by 9.6%: interest expenses on retail term deposits increased by 19.5% (40.0% of total interest expenses) while interest expenses on corporate term deposits increased by 11.7% (21.2% of total interest expenses). Net interest margin (NIM) for 1H 2019 amounted to 3.6% (3.7% for 1H 2018).
1H 2019 Net fee and commission income increased by 21.0% compared with 1H 2018 and amounted to RUB 3.3 billion. Compared with 1H 2018, income from plastic cards settlements increased by 12.6% (41.4% of total F&C income), income from cash and settlement transactions grew by 10.9% (40.3% of total F&C income).
1H 2019 Net trading loss amounted to RUB 0.1 billion (income of RUB 1.8 bn in 1H 2018). Income from operations with foreign currencies and derivatives amounted to RUB 0.5 billion, losses from operations with securities amounted to RUB 0.6 billion.
1H 2019 Revenues amounted to RUB 14.8 billion (-4.4% compared with 1H 2018).
The Bank’s Cost-to-Income Ratio for 1H 2019 stood at 47.0% (43.1% for 1H 2018). Operating costs for 1H 2019 increased by 4.2% compared with 1H 2018 and amounted to RUB 7.0 billion.
Net income for 1H 2019 amounted to RUB 3.5 billion (-20.9% compared with 1H 2018). The Bank’s return on equity (ROAE) for 1H 2019 amounted to 9.2% (12.4% for 1H 2018).
As at July 1, 2019, the Bank’s assets amounted to RUB 657.5 billion (-2.4% compared with January 1, 2019).
Liabilities. Customer deposits totalled RUB 399.8 billion (-3.6% compared with January 1, 2019). As at July 1, 2019, 62.1% of customer deposits belonged to individuals and 37.9% to corporate customers. During 1H 2019, the volume of retail deposits decreased by 0.3% compared with 1H 2018 and amounted to RUB 248.4 billion; the volume of corporate deposits decreased by 8.6% and amounted to RUB 151.4 billion.
Equity and capital. As at July 1, 2019, the shareholders equity amounted to RUB 76.7 billion (+1.4% compared with January 1, 2019). The Bank’s total capital amounted to RUB 92.6 billion (+0.9% compared with January 1, 2019). As at July 1, 2019, the Bank’s Tier 1 and total capital adequacy ratios were 13.8% and 17.6% respectively.
Loan portfolio before provisions totalled RUB 365.7 billion (-2.6% compared with January 1, 2019). Loans to corporate customers represented 72.9% of the loan portfolio, loans to individuals – 27.1%. During 1H 2019, corporate loan portfolio decreased by 6.6% to RUB 266.6 billion. During 1H 2019, retail loan portfolio increased by 10.4% to RUB 99.0 billion (mortgage loans grew by 9.9%, consumer loans grew by 13.7%, car loans grew by 23.6%).
Loan portfolio quality. As at July 1, 2019, the share of problem loans in the Bank’s portfolio amounted to 10.4% (10.8% as at January 1, 2019). The rate of provisions for loan impairment amounted to 9.9% (9.7% as at January 1, 2019). Provision charge for 1H 2019 amounted to RUB 3.2 billion. For 1H 2019, loans in the amount of RUB 4.1 billion were written off.
1H 2019 IFRS Financial Statements are available on the Bank’s website: