27.01.2010

Bank YE 2009 preliminary results under the Russian accounting standards (RAS)

Bank Saint Petersburg summarized its performance for the YE 2009 under RAS.

Alexander Savelyev, the Chairman of the Management Board, comments:
“2009 was a difficult year for the Russian banking sector; at the same time it re-examined our activities, proved our business relations and contributed to the professional level of the Bank’s team. We are pleased that even in this uneasy year our resources allowed us not only to cope with the crisis but also to invest in our development. In December 2009, we attracted around USD 200 million through the public offering of the convertible preferred shares. The successful placement proved investor confidence in Bank Saint Petersburg and our prospects”.

Financial highlights for YE 2009 under RAS*

- Total capital grew by 45.7% to RUB 33.1 billion compared to January 1, 2009;

- Revenues increased by 53.8% to RUB 34.7 billion compared to YE 2008;

- Income before profit tax amounted to RUB 1.8 billion;

- Net income amounted to RUB 1.4 billion.

As at October 1, 2009, Bank Saint Petersburg was ranked 13th in terms of retail deposits and 17th in terms of assets among the Russian banks (Interfax ranking). As at January 1, 2010, the number of cards issued by the Bank exceeded 674,000 (+94,000 cards); the Bank’s card network comprised of 434 ATMs. As at January 1, 2010, Internet-Bank was actively used by 50,500 clients.

Among the most significant events of the previous year were the deals to enhance the Bank’s capital. In June, the Bank received the 10.5 years USD 75 million subordinated loan from EBRD; in August, it received the RUB 1,466 million subordinated loan from Vnesheconombank. In December 2009, the Bank attracted ca. USD 200 million through the offering of class A preferred shares. As a result of these deals the Bank’s capital adequacy ratio increased to 15.1% as at January 1, 2010.

In 2009, two Eurobond issues in the amount of USD 200 million, the RUB 1 billion bond issue as well as of syndicated and bi-lateral loans in the amount of USD 113.7 million were repaid.

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.

On December 31, 2009, Bank Saint Petersburg and Russian Bank for Development (RBD) signed an agreement on joint implementation of the Government SME Lending Support Program. Under this program RBD extends a loan to the Bank in the amount of RUB 300 million. The agreement provides that the Bank will utilize these funds for lending to small and medium enterprises of Saint Petersburg for the tenor of up to three years at 15%.

Bank’s assets grew by +10.9% to RUB 239.3 billion compared to RUB 215.8 billion as at January 1, 2009.

Bank’s total capital calculated under the Bank of Russia methodology increased by 45.7% to RUB 33.1 billion compared to January 1, 2009. As a result the capital adequacy as at January 1, 2010 increased to 15.1% (+1.4 percentage points compared to October 1, 2009; +2.1 percentage points compared to January 1, 2009).

Financial result before profit tax for YE 2009 amounted to RUB 1.8 billion (-63.4% compared to the previous year result). The main factor to determine the financial result before tax is the substantial growth in provisions to RUB 13.5 billion as at January 1, 2010 from RUB 4.4 billion as at January 1, 2009 (+208.8%).

Bank’s revenues for YE 2009 increased by 53.8% compared with the previous year result and amounted to RUB 34.7 billion. Interest income increased by 36.1% and amounted to RUB 26.0 billion. Commission income increased by 5.2% compared with the previous year result and amounted to RUB 1.8 million. Net income amounted to RUB 1.4 billion.

Liabilities. Customer accounts amounted to RUB 185.6 billion (+19.4% compared to January 1, 2009). As at January 1, 2010, the corporate customer accounts amounted to RUB 126.4 billion (+17.9% compared to January 1, 2009). Retail customer accounts amounted to RUB 59.1 billion (+22.8% compared to January 1, 2009). As at January 1, 2010, the Central Bank of Russia funding amounted to RUB 8.6 billion from RUB 29.4 billion as at January 1, 2009 (-70.8%).

Loan portfolio. As at January 1, 2010, the loan portfolio amounted to RUB 166.0 billion (+14.7% compared to January 1, 2009). As at January 1, 2010, the share of the overdue loans amounted to 4.61% (0.47% as at January 1, 2009); the level of coverage of the overdue loans by provisions made up 176%.

* These results may be subject to change following the accounting results of the events after the balance sheet date and the annual audit for YE 2009. The numbers as at January 1, 2009 include the effect of the events after the balance sheet date; the numbers as at January 1, 2010 do not include the effect of the events after the balance sheet date.

Financial statements under RAS are available on the Bank’s website.