Bank 1H 2009 Results under the Russian accounting standards (RAS)
Bank Saint Petersburg summarized its performance for the 1H 2009 under RAS.
“In spite of the uneasy market environment the Bank continuously demonstrates an ability to resist the negative economic trends and to generate substantial revenues. The Bank remains profitable even with the increased provisioning, and the level of the overdue loans is kept on the appropriate level,” — Alexander Savelyev, the Chairman of the Management Board, comments, — “I would like to stress that we continue to support our clients — during the first six months 2009 our loan portfolio increased by RUB 4.1 billion”.
As at April 1, 2009, Bank Saint Petersburg was ranked 12th in terms of retail deposits and 16th in terms of assets among the Russian banks (Interfax ranking). As at July 1, 2009 the number of cards issued by the Bank exceeded 661,000 (+71,000 cards); the Bank’s card network comprised of 441 ATMs. Today it provides services for over 35,900 corporate customers and 862,000 individuals. As at July 1, 2009, Internet-Bank was actively used by 38,500 clients. Bank Simultaneously the Bank continues to develop its branch network: in May a new branch in Kirishi was opened.
Financial highlights for 1H 2009 under RAS
- Total capital grew by 15.3% to RUB 26.2 billion compared to January 1, 2009
- Revenues increased by 85.7% to RUB 17.1 billion compared to 1H 2008
- Income before tax amounted to RUB 822.6 million
- Net income amounted to RUB 304.2 million
In the first half of 2009, the Bank has paid particular attention to strengthening its’ capital position. In June 2009, Bank received the USD 75 million subordinated loan from EBRD. On July 8, 2009, the RUB 1,466 million subordinated loan agreement with Vneshekonombank was signed.
On July 22, 2009, Extraordinary Shareholders Meeting approved amendments to the Bank’s Charter announcing the new type of the preferred stock which will provide for the Bank more flexibility in terms of the possible Tier 1 capital increase.
In May 2008, the Bank refinanced the USD 20 million tranche of the syndicated loan; in June 2009, the RUB 1 billion bond issue was repaid. In 1H 2009, Eurobonds worth USD 115 million were bought back.
Starting with May 2009, the Bank participates in the program aimed to provide financing to the SMEs having prior right to purchase the rented premises by the Committee for the Administration of State Property; since June 2009, it participates in the state pension payment program and maternity capital payment program.
Bank’s total capital calculated under the Bank of Russia methodology increased by 15.3% to RUB 26.2 billion compared to January 1, 2009. The growth is mainly attributed to the USD 75 million EBRD loan received. As a result the capital adequacy as at July 1, 2009 increased by 1.4 percentage points to 13.8% compared to January 1, 2009.
Financial result before profit tax for 6 months 2009 amounted to RUB 822.6 million (-67% compared to the previous year result). The main factor to determine the financial result before tax is the substantial growth in provisions (+93.2% compared to January 1, 2009).
Bank’s revenues for the 1H 2009 increased by 85.7% compared with the same period of the previous year and amounted to RUB 17.1 billion. Interest income increased by 57.3% and amounted to RUB 12.4 billion. Commission income increased by 29.3% compared with the 1H 2008 and amounted to RUB 949.4 million. Net interest income amounted to RUB 304.2 million (-84.3% compared to the 1H 2008).
Liabilities. Customer accounts amounted to RUB 152.7 billion (-1.7% compared to January 1, 2009; +14% compared to July 1, 2008). As at July 1, 2009, the corporate customer accounts amounted to RUB 98.5 billion (-8.1 compared to January 1, 2009; +5.8 compared to July 1, 2008). Retail customer accounts amounted to RUB 54.2 billion (+12.5 compared to January 1, 2009; +32.5 compared to July 1, 2009). As at July 1, 2009, the Central Bank of Russia unsecured funding decreased by 78.7% to RUB 5 billion from RUB 23.5 as at January 1, 1009.
Loan portfolio. During the first 6 months 2009 an amount of net lending receivables (incl. interbank loans) increased by 1.7% compared to January 1, 2009 and amounted to RUB 161.2 billion. As at July 1, 2009, the loan portfolio amounted to RUB 148.8 billion (+2.8% compared to January 1, 2009). Facing the global worsening of the economic situation the Bank increased its provisions by 93.2% to RUB 8.5 billion. As at July 1, 2009, the share of the overdue loans amounted to 3.24% (0.47% as at January 1, 2009); the level of coverage of the overdue loans by provisions made up 176%.
1H 2009 IFRS Financial Statements under RAS are available on the Bank’s website.