Bank “Saint Petersburg”summed results for 1Q 2020 according to International Financial Reporting Standarts (IFRS). Finacial highlights according to IFRS Consolidated Statements:
- 1Q 2020 Net interest income amounted to RUB 6.2 billion (+8.7% compared with 1Q 2019);
- 1Q 2020 Net F&C income amounted to RUB 1.7 billion (+32.5% compared with 1Q 2019);
- Core banking revenues increased by 13.3% y-o-y up to RUB 7.8 bn in 1Q 2020;
- Loan portfolio grew by 8.2% YTD (+4.0% without ForEx revaluation);
Alexander Savelyev, Chairman of the Management Board, comments on the Bank’s 1Q 2020 results:
“In the current situation, we are taking all necessary measures to ensure the most secure interaction between customers and Bank’s employees, primarily through digital channels. The focus on digitalization allowed us to quickly and efficiently adapt to the current situation, maximizing the transfer of interaction towards online. At the same time, the results for the 1st quarter of 2020 confirm that we are in very good shape to cope with COVID challenges. The Bank maintains a high degree of stability and capital adequacy, which allows us to remain confident in the face of uncertainty.”
Bank Saint Petersburg is ranked 15th in terms of assets and 15th in terms of retail deposits among Russian banks (Interfax ranking). As at April 1, 2020, the Bank provides services to 2 154 000 individuals and 50 000 corporates. The number of cards issued by the Bank reached 1 538 000. At present Internet Bank is used by 1 333 000 clients.
Cargo Terminal Pulkovo deal was closed in 1Q 2020 with total net income of RUB 522 mln (incl. RUB 351 mln of one-off net income in 1Q 2020), with total ROI 87% and IRR 24%.
Results summary for 1Q 2020
Ruble depreciation significantly influenced 1Q 2020 financials, inclunding loans, provisions, revenues, net income etc.
Net interest income (NII) amounted to RUB 6.2 billion for 1Q 2020 (+8.7% compared with 1Q 2019). Interest income for 1Q 2020 decreased by 12.3% compared with 1Q 2019; interest income is comprised mostly of interest income on loans and advances to customers (80.0%). Interest expense decreased by 31.4%: interest expenses on retail term deposits decreased by 14.0% (46.0% of total interest expenses) while interest expenses on corporate term deposits decreased by 23.9% (22.0% of total interest expenses). Net interest margin (NIM) amounted to 4.1% for 1Q 2020 (3.8% for 1Q 2019).
Net fee and commission income amounted to RUB 1.7 billion for 1Q 2020 (+32.5% compared with 1Q 2019). Compared with 1Q 2019, income from plastic cards settlements grew by 14.4% (38.0% of total F&C income), income from cash and settlement transactions grew by 21.2% (41.0% of total F&C income).
Net trading losses for 1Q 2020 amounted to RUB 0.03 billion (loss of RUB 0.09 bn in 1Q 2019). Income from operations with foreign currencies and derivatives amounted to RUB 0.04 billion, losses from operations with securities amounted to RUB 0.07 billion.
Revenues amounted to RUB 8.3 billion for 1Q 2020 (+12.2% compared with 1Q 2019).
Cost-to-Income Ratio stood at 49.7% for 1Q 2020 (48.0% for 1Q 2019). Operating costs amounted to RUB 4.1 billion for 1Q 2020 (+16.4% compared with 1Q 2019).
Net income for 1Q 2020 amounted to RUB 1.6 billion (+23.4% compared with 1Q 2019). The Bank’s return on equity (ROAE) amounted to 7.9% for 1Q 2020 (6.9% for 1Q 2019).
As at April 1, 2020, the Bank’s assets amounted to RUB 668.7 billion (-0.7% compared with January 1, 2020).
Customer deposits totalled RUB 434.7 billion (+4.1% compared with January 1, 2020; -1.5% without ForEX revaluation). During 1Q 2020, the volume of current and settlement accounts increased by 13.3%; the volume of term deposits decreased by 0.9%. As at April 1, 2020, 58.9% of customer deposits belonged to individuals and 41.1% – to corporate customers.
Equity and capital. As at April 1, 2020, the shareholders equity amounted to RUB 81.6 billion (+2.0% compared with January 1, 2020). The Bank’s total capital amounted to RUB 97.1 billion (+1.1% compared with January 1, 2020). As at April 1, 2020, the Bank’s Tier 1 and total capital adequacy ratios were 10.4% and 13.5% respectively.
Loan portfolio before provisions totalled RUB 434.3 billion (+8.2% compared with January 1, 2020; +4.0% without ForEX revaluation). Loans to corporate customers represented 75.9% of the loan portfolio, loans to individuals – 24.1%. During 1Q 2020, corporate loan portfolio increased by 10.4% to RUB 329.5 billion. During 1Q 2020, retail loan portfolio increased by 1.6% to RUB 100.7 billion. During 1Q 2020, mortgage loans grew by 0.9%, consumer loans grew by 3.2%, car loans grew by 2.6%.
Loan portfolio quality. As at April 1, 2020, the share of problem loans in the Bank’s portfolio amounted to 9.8% (9.2% as at January 1, 2020). The rate of provisions for loan impairment amounted to 8.7% (8.3% as at January 1, 2020). Provision charge for 1Q 2020 amounted to RUB 2.6 billion. For 1Q 2020, loans in the amount of RUB 0.8 billion were written off.
1Q 2020 IFRS Financial Statements are available on the Bank’s website: