23.07.2010

Bank 1H 2010 results under the Russian accounting standards (RAS)

Bank Saint Petersburg summarized its performance for 1H 2010 under RAS.

Alexander Savelyev, the Chairman of the Management Board, comments:

“Since the beginning of the year the Bank’s net interest income increased significantly being a sign of our ability to perform effectively with the interest rates going down. In the 2Q 2010 the pace of the overdue loans growth has slowed, the provision charge has decreased. These tendencies prove the stable development of the Bank’s business and its prospects to recover its profitability”.

Financial highlights for 1H 2010 under RAS

- Net Interest Income for 1H 2010 increased by 28.3% compared with 1H 2009 and mounted to RUB 6.1 billion;

- Net Fee and Commission Income increased by 84.3% compared with 1H 2009 and amounted to RUB 759.1 million;

- Income Before Tax increased by 18.8% compared with 1H 2009 and amounted to RUB 1.1 billion (RUB 524.6 million for 2Q 2010);

- Net Income amounted to RUB 264.0 million.

As at April 1, 2010, 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 July 1, 2010, the number of cards issued by the Bank exceeded 685,000; the Bank’s card network comprised of 447 ATMs. Today, the Bank provides services for over 973,000 individuals and 34,900 corporates. As at July 1, 2010, Internet-Bank was actively used by 64,400 clients.

During the first 6 months 2010 Bank’s assets increased by 2.6% to RUB 245.6 billion compared with RUB 239.3 billion as at January 1, 2010.

Bank’s total capital calculated under the Bank of Russia methodology amounted to RUB 33.0 billion (-3.0 % compared with January 1, 2010). As a result the capital adequacy as at July 1, 2010 amounted to 15.0% with the regulatory ratio of 10%.

Net Interest Income for 1H 2010 improved by 28.3% compared with the 1H 2009 result to RUB 6.1 billion. Net interest income for 2Q 2010 amounted to RUB 3.1 billion (+9.0% compared with 2Q 2009; +3.6% compared with 1Q 2010). Net Fee and Commission Income for 1H 2010 increased by 84.3% compared with 1H 2010 and amounted to RUB 759.1 million; net fee and commission income for 2Q 2010 amounted to RUB 419.8 million (+57.4% compared with 2Q 2009; +23.7% compared with 1Q 2010). Profit before tax for 1H 2010 amounted to RUB 1.1 million (+18.8% compared to 1H 2009).  Profit before tax for 2Q 2010 amounted to RUB 524.6 million (+136.6% compared with 2Q 2009; -12.1% compared with 1Q 2010). Net income for 1H 2010 amounted to RUB 264.0 million (-13.2% compared with 1H 2009).

Liabilities. Customer accounts amounted to RUB 184.4 billion (-0.6% compared to January 1, 2010; +5.0 compared with April 1, 2010). As at July 1, 2010, the corporate customer accounts amounted to RUB 119.8 billion (-5.2% compared to January 1, 2010; +4.8 compared with April 1, 2010). Retail customer accounts amounted to RUB 64.6 billion (+9.2% compared to January 1, 2010; +5.3 compared with April 1, 2010).

Loan portfolio. The loan portfolio remained at the level of the beginning of the year – RUB 166.0 billion. Provisions amounted to RUB 16.8 billion (+24.4% compared with January 1, 2010; +6.0% compared with April 1, 2010). The provision charge decreased from RUB 2.7 billion in 1Q 2010 to RUB 1.9 billion in 2Q 2010; at the same time the pace of the overdue loans growth slowed down: as at July 1, 2010, the share of the overdue loans amounted to 5.94% (4.61% as at January 1, 2010; 5.64 as at April 1, 2010). As a result the level of coverage of the overdue loans by provisions increased to 170%.

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