Financial highlights for FY 2014*:
- FY 2014 Net income amounted to RUB 4.8 billion (USD 85 million), revenues amounted to RUB 23.0 billion (USD 409 million);
- Net interest income increased by 38.4% compared with FY 2013 and amounted to RUB 18.5 billion (USD 329 million);
- Net fee and commission income increased by 38.9% compared with FY 2013 and amounted to RUB 3.7 billion (USD 66 million);
- Loan portfolio grew by 24.2% compared with January 1, 2014 to RUB 343.7 billion (USD 6.1 billion);
- Retail loan portfolio (mortgages, car and consumer loans) grew by 37.8% compared with January 1, 2014 to RUB 44.3 billion (USD 787 million).
*The RUB-nominated figures are translated into USD at the official exchange rate quoted by the CBR for December 31, 2014 (USD 1.00 = RUB 56.26).
Vladislav Guz, Chairman of the Management Board, commented on the Bank’s FY 2014 results: “In spite of the challenging environment, the Bank has demonstrated strong results, having substantially increased interest and fee and commission income. We met the crisis with a significant capital cushion and a stable liquidity position. 2015 is not going to be an easy one, but we are well prepared to face all the challenges it may bring”.
Bank Saint Petersburg is ranked 16th in terms of assets and 17th in terms of retail deposits among the Russian banks (Interfax ranking). Today the Bank provides services to 1,400,000 individuals and 55,000 corporates. The number of cards issued by the Bank increased in the reporting year to 947,000. As at January 1, 2015, the number of ATMs and POS terminals are 658 and 6,500 respectively. The Internet-Bank is actively used by 408,000 clients.
In 2014, the Bank continued developing its technologies and remote customer services – launched a conceptually new Internet-Bank for corporate customers recognized as a unique solution in the market. Internet-Bank for individuals was ranked number one in Russia by Global Banking and Finance Review Awards. The Bank was also recognized as the most efficient retail bank in the market in 2014.
A milestone event of 2014 was the acquisition of the Kaliningrad-based Bank Evropeisky, which by the end of the year was successfully merged into Bank Saint Petersburg.
Results summary for FY 2014
Net interest income increased by 38.4% compared with FY 2013 and amounted to RUB 18.5 billion. Interest income for FY 2014 increased by 25.7%; interest income comprises mostly of interest income on loans and advances to customers (78.5%). Interest expenses increased by 16.0%: interest expenses on retail term deposits grew by 2.0% (29.3% of total interest expenses) while interest expenses on corporate term deposits decreased by 5.1% (24.2% of total interest expenses). Net interest margin (NIM) for FY 2014 increased by 56 bp and amounted to 4.4% (for 4Q 2014 - 5.0%).
Net fee and commission income increased by 38.9% compared with FY 2013 and amounted to RUB 3.7 billion. Compared with FY 2013, income from cash and settlement transactions grew by 53.0% (44.0% of total F&C income), income from plastic cards and cheque settlements grew by 40.9% (26.8% of total F&C income), income from guarantees and letters of credit issued grew by 8.0% (20.6% of total F&C income). Net fee and commission income for 4Q 2014 amounted to RUB 1.1 billion (+11.4% compared with 3Q 2014).
Net trading income. In FY 2014 an aggregate loss from financial markets operations amounted to RUB 123 million (gain of RUB 4.4 billion in FY 2013), including a one-off gain from disposal of investment securities available-for-sale in the amount of RUB 265 million. Gains from operations with foreign currencies and derivatives amounted to RUB 4.0 billion, losses from operations with securities amounted to RUB 4.1 billion.
Revenues for FY 2014 amounted to RUB 23.0 billion (+12.4% compared with FY 2013). Revenues for 4Q 2014 amounted to RUB 6.8 billion.
The Bank’s Cost-to-Income Ratio for FY 2014 stood at 41.9% (37.4% for FY 2013), 4Q 2014 Cost-to-Income Ratio amounted to 42.4%. Operating costs for FY 2014 increased by 25.8% compared with FY 2013 to RUB 9.7 billion; operating costs for 4Q 2014 amounted to RUB 2.9 billion (+23.2% compared with 3Q 2014).
Net income for FY 2014 amounted to RUB 4.8 billion (-28.4% compared with FY 2013); net income for 4Q 2014 amounted to RUB 691 million. The Bank’s return on equity (ROAE) for FY 2014 amounted to 9.7%, ROAE for 4Q 2014 - 5.3%.
The Bank’s financial results for FY 2014 benefited from one-off gain from acquisition of Bank Evropeisky in the amount of RUB 489 million and the effect from its consolidation: revenues – RUB 1.2 billion, net interest income – RUB 572 million, net fee and commission income – RUB 413 million, operating costs – RUB 533 million.
As at January 1, 2015, the Bank’s assets amounted to RUB 521.6 billion (+27.4% compared with January 1, 2014).
Liabilities. Customer deposits totalled RUB 324.9 billion (+24.2% compared with January 1, 2014). As at January 1, 2015, 52.0% of customer deposits belonged to corporate customers and 48.0% - to individuals. During 2014, the volume of retail customer accounts increased by 24.5%; the volume of corporate customer accounts increased by 23.9%. As at January 1, 2015, the share of wholesale funding in liabilities amounted to 5.7%.
Equity and capital. As at January 1, 2015, the shareholders equity increased by 7.6% compared with January 1, 2014 to RUB 51.3 billion. The Bank’s total capital amounted to RUB 62.7 billion (+8.1% compared with January 1, 2014). As at January 1, 2015, the Bank’s Tier 1 and total capital adequacy ratios were 10.2% and 13.3% respectively.
Loan portfolio before provisions totalled RUB 343.7 billion (+24.2% compared with January 1, 2014). As at January 1, 2015, loans to corporate customers represented 84.9% of the loan portfolio, loans to individuals – 15.1%. During FY 2014 corporate loan portfolio grew by 22.1% to RUB 292.0 billion. During FY 2014 retail loan portfolio grew by 37.8% to RUB 44.3 billion (mortgage loans grew by 44.8%, consumer loans grew by 40.0%, car loans decreased by 2.0%).
Loan portfolio quality. During 2014, the share of problem loans in the Bank’s portfolio (total share of overdue loans and impaired not past due loans) decreased from 12.9% to 10.0%. As at January 1, 2015, the share of overdue loans in the Bank’s portfolio amounted to 4.6% of the total volume of loans. The share of the corporate overdue loans amounted to 4.7% of the total corporate loans; the share of the retail overdue loans amounted to 3.8% of the total retail loans. As at January 1, 2015, impaired not past due loans constituted 5.4% of the total volume of loans. The rate of provisions for loan impairment decreased to 8.3% (9.4% as at January 1, 2014). Provision charge for FY 2014 amounted to RUB 7.3 billion, including RUB 1.3 billion from the provisions revaluation for FX-denominated loans. In 2014, loans in the amount of RUB 5.7 billion were written off.
FY 2014 IFRS Financial Statements are available on the Bank’s website: