Financial highlights for FY 2013*:
- FY 2013 Net income increased 5 times compared with FY 2012 and amounted to RUB 6.7 billion (USD 205 million), revenues amounted to RUB 20.5 billion (USD 626 million);
- 4Q 2013 Net income amounted to RUB 3.1 billion (USD 94 million) with RUB 3.8 billion of net interest income (USD 117 million);
- Loan portfolio grew by 12.3% compared with January 1, 2013 to RUB 276.8 billion (USD 8.5 billion);
- Retail loan portfolio (mortgages, car and consumer loans) grew by 75.7% compared with January 1, 2013 to RUB 32.1 billion (USD 1.0 billion);
- Capital increased by 18.7% compared with January 1, 2013 to RUB 58.0 billion (USD 1.8 billion).
*The RUB-nominated figures are translated into USD at the official exchange rate quoted by the CBR for December 31, 2013 (USD 1.00 = RUB 32.73).
Alexander Savelyev, Chairman of the Management Board, commented on the Bank’s FY 2013 results: “We are pleased with our 2013 results. The Bank has demonstarated decent dynamics and we have exceeded most of our targets. Our growth in the strategically important retail lending segment amounted to 76%, which is well ahead of the the market. 2014 is obviously not going to be easy, but we have laid a solid foundation for the future development of our business”.
Bank Saint Petersburg is ranked 14th in terms of assets and 15th in terms of retail deposits among the Russian banks (Interfax ranking). Today the Bank provides services to more than 1,360,000 individuals and 43,000 corporates. As at January 1, 2014, the number of cards issued by the Bank is 793,000. The number of ATMs and POS terminals increased in the reporting year to 600 and 8,000 respectively. The Internet-Bank is actively used by 263,000 clients.
In 2013 Bank Saint Petersburg continued developing its retail business. During 2013, the Bank increased it’s market share of mortgages in St. Petersburg from 7.8% to 10.4%. New state-of-the-art Internet-Bank was ranked number one in Russia by Global Banking and Finance Review Awards.
Among the most significant events of 2013 were the new shares issue, which resulted in the Bank’s Tier 1 capital increase by RUB 3 billion as well as the placement of 3-year RUB 5 billion domestic bonds and the placement of 5.5-year USD 100 million subordinated Eurobonds.
Results summary for FY 2013
Net interest income increased by 11.6% compared with FY 2012 and amounted to RUB 13.4 billion. Interest income for FY 2013 increased by 12.7%; interest income comprises mostly of interest income on loans and advances to customers (83.1%). Interest expenses increased by 13.5%: interest expenses on retail term deposits grew by 20.7% (33.3% of total interest expenses) while interest expenses on corporate term deposits decreased by 1.7% (29.6% of total interest expenses). Net interest margin (NIM) for FY 2013 remained at the 2012 level and amounted to 3.9% (for 4Q 2013 - 4.1%).
Net fee and commission income increased by 14.0% compared with FY 2012 and amounted to RUB 2.7 billion. Compared with FY 2012, income from settlement transactions grew by 11.2% (40.0% of total F&C income), income from guarantees and letters of credit issued grew by 16.2% (26.6% of total F&C income), income from plastic cards and cheque settlements grew by 19.8% (26.5% of total F&C income). Net fee and commission income for 4Q 2013 amounted to RUB 800.5 million (+22.9% compared with 3Q 2013).
Net trading income. In FY 2013 an aggregate result from financial markets operations amounted to RUB 4.4 billion. Gains from operations with foreign currencies amounted to RUB 2.0 billion (RUB 693 million for FY 2012), gains from operations with securities amounted to RUB 2.3 billion (RUB 175 million for FY 2012).
Revenues for FY 2013 amounted to RUB 20.5 billion (+35.4% compared with FY 2012). Revenues for 4Q 2013 reached an all-time high amount of RUB 7.2 billion.
The Bank’s Cost-to-Income Ratio for FY 2013 stood at 37.4% (47.6% for FY 2012), 4Q 2013 Cost-to-Income Ratio amounted to 31.4%. Operating costs for FY 2013 increased by 6.5% compared with FY 2012 to RUB 7.7 billion; operating costs for 4Q 2013 amounted to RUB 2.3 billion (+14.8% compared with 3Q 2013).
Net income for FY 2013 amounted to RUB 6.7 billion (increased 5 times compared with FY 2012); net income for 4Q 2013 amounted to RUB 3.1 billion. The Bank’s return on equity (ROAE) for FY 2013 amounted to 15.2%, ROAE for 4Q 2013 - 26.1%.
The Bank’s financials for 2013 significantly benefited from a one-off gain from disposal of investment securities available-for-sale in the amount of RUB 2.6 billion (RUB 2.0 billion in 4Q 2013). Excluding this one-off, net income for FY 2013 amounted to RUB 4.1 billion (RUB 1.1 billion for 4Q 2013), revenues – RUB 17.9 billion (RUB 5.2 billion for 4Q 2013), net trading income – RUB 1.8 billion (RUB 0.6 billion for 4Q 2013), ROAE – 9.4% (9.3% for 4Q 2013), Cost-to-Income Ratio – 42.8% (43.3% for 4Q 2013).
As at January 1, 2014, the Bank’s assets amounted to RUB 409.4 billion (+16.5% compared with January 1, 2013).
Liabilities. Customer deposits totalled RUB 261.6 billion (+14.7% compared with January 1, 2013). As at January 1, 2014, 52.1% of customer deposits belonged to corporate customers and 47.9% - to individuals. During 2013, the volume of retail customer accounts increased by 23.8%; the volume of corporate customer accounts increased by 7.5%. As at January 1, 2014, the share of wholesale funding in liabilities amounted to 6.8%.
Equity and capital. As at January 1, 2014, the shareholders equity increased by 18.2% compared with January 1, 2013 to RUB 47.7 billion. The Bank’s total capital amounted to RUB 58.0 billion (+18.7% compared with January 1, 2013). The rise in the Bank’s capital is primarily attributed to the following factors: retained earnings (RUB 3.3 billion), the ordinary shares issue (which resulted in the Bank’s Tier 1 capital increase by RUB 3 billion) and the placement of 5.5-year USD 100 million subordinated Eurobonds. As at January 1, 2014, the Bank’s Tier 1 and total capital adequacy ratios were 10.8% and 14.3% respectively.
Loan portfolio before provisions totalled RUB 276.8 billion (+12.3% compared with January 1, 2013). As at January 1, 2014, loans to corporate customers represented 86.4% of the loan portfolio, loans to individuals – 13.6%. During FY 2013 corporate loan portfolio grew by 6.8% to RUB 239.1 billion. During FY 2013 retail loan portfolio grew by 75.7% to RUB 32.1 billion (mortgage loans grew by 74.9%, consumer loans – by 93.9%, car loans – by 50.6%).
Loan portfolio quality. During 2013, the share of problem loans in the Bank’s portfolio (total share of overdue loans and impaired not past due loans) decreased from 13.6% to 12.9%. As at January 1, 2014, the share of overdue loans in the Bank’s portfolio amounted to 7.2% of the total volume of loans. The share of the corporate overdue loans amounted to 7.7% of the total corporate loans; the share of the retail overdue loans amounted to 3.5% of the total retail loans. As at January 1, 2014, impaired not past due loans constituted 5.7% of the total volume of loans. The rate of provisions for loan impairment decreased to 9.4% (9.8% as at January 1, 2013). Provision charge for FY 2013 amounted to RUB 4.5 billion. In 2013, loans in the amount of RUB 2.7 billion were written off.
FY 2013 IFRS Financial Statements are available on the Bank’s website: