- Record Revenues both for FY 2015 and 4Q 2015: RUB 28.0 billion (USD 384 million) and RUB 8.2 billion (USD 113 million), with 21.6% and 13.5% growth respectively;
- FY 2015 Net trading income amounted to RUB 6.2 billion (USD 85 million);
- FY 2015 Net income amounted to RUB 3.6 billion (USD 50 million);
- FY 2015 Total comprehensive income reached RUB 5.6 billion (USD 78 million) and exceeded FY 2014 result by 23.6%;
- Retail loan portfolio grew by 10.1% in FY 2015 to RUB 48.7 billion (USD 669 million), retail deposits grew by 20.5% to RUB 188.1 billion (USD 2.6 billion).
*Consolidated IFRS FS for FY 2015.
The RUB-nominated figures are translated into USD at the official exchange rate quoted by the CBR for December 31, 2015 (USD 1.00 = RUB 72.88).
Alexander Savelyev, Chairman of the Supervisory Board, commented on the Bank’s FY 2015 results: ”As promised, we posted one of the best results in the sector, marking the year of the Bank’s 25th anniversary with record revenues and decent profit. This result confirms the Bank’s ability to work efficiently in the most challenging conditions".
Vladislav Guz, Chairman of the Management Board, commented on the Bank’s FY 2015 results: ”Our revenues increased by more than 20% to record RUB 28 billion, exceeding all expectations. The Bank continues its dynamic development: we entered the Top 5 Russian banks by mortgages, our Internet Bank is the recognized market leader. We are focused on growth and further expansion of our customer base and distribution network".
As at January 1, 2016, Bank Saint Petersburg was ranked 17th in terms of assets and 14th in terms of retail deposits among the Russian banks. Today, the Bank provides services to 1,600,000 individuals and 56,000 corporates. The number of cards issued by the Bank exceeded 1,000,000; the Bank’s ATM network comprised of 728 units. Internet-Bank was actively used by 600,000 clients.
One of the 2015 highlights for the Bank was mortgage lending. At year-end 2015, Bank Saint Petersburg was ranked 3rd in Russia within the State Mortgage Subsidy Program and 8th in terms of new mortgages issued. The Bank’s share in new mortgage lending in St. Petersburg reached 18% in 2015.
In the reporting year, the Bank strengthened its capital position by means of subordinated funds attracted from the Deposit Insurance Agency (DIA) in the amount of RUB 14.6 billion within the State Capitalization Support Program for credit institutions. As a result, total capital adequacy ratio was strengthened by 2.3PP.
In December 2015, the Supervisory Board approved the Bank’s Strategy for 2016-2018, with the focus on sustainable growth, both organic and by potential mergers and acquisitions. The key financial goal remains the same - a long-term growth of shareholder value and ROAE recovery to 15%.
In February 2015, the Supervisory Board approved a Dividend Policy. The document establishes the Bank's intention to maintain dividend payout ratio of 20%+ of the Bank's RAS net profit (RUB 2.3 billion for FY 2015).
Results summary for FY 2015
FY 2015 Net interest income amounted to RUB 17.5 billion (-5.6% compared with FY 2014). Interest income for FY 2015 increased by 31.0% compared with FY 2014; interest income is comprised mostly of interest income on loans and advances to customers (76.7%). Interest expense increased by 64.5%: interest expenses on retail term deposits grew by 71.8% (30.6% of total interest expenses) while interest expenses on corporate term deposits grew by 76.3% (25.9% of total interest expenses). 4Q 2015 Net interest income increased by 26.3% compared with 3Q 2015 to RUB 5.2 billion. Net interest margin (NIM) for FY 2015 and 4Q 2015 amounted to 3.5% and 4.0% respectively (4.4% in FY 2014 and 3.4% in 3Q 2015).
FY 2015 Net fee and commission income increased by 8.6% compared with FY 2014 and amounted to RUB 4.0 billion. Compared with FY 2014, income from cash and settlement transactions grew by 17.6% (47.9% of total F&C income), income from plastic cards and cheque settlements grew by 11.7% (27.7% of total F&C income), income from guarantees and letters of credit issued decreased by 5.3% (18.1% of total F&C income). 4Q 2015 Net fee and commission income increased by 10.6% compared with 3Q 2015 and amounted to RUB 1.1 billion.
FY 2015 Net trading income amounted to RUB 6.2 billion (-RUB 123 million in FY 2014). Gains from operations with foreign currencies and derivatives amounted to RUB 4.9 billion, gains from operations with securities amounted to RUB 1.3 billion. 4Q 2015 Net trading income amounted to RUB 1.8 billion (RUB 2.0 billion in 3Q 2015). In FY 2015 the Bank posted through capital account an additional gain from revaluation of investment securities available-for-sale that contributed RUB 2.0 billion to total comprehensive income in FY 2015 and RUB 0.1 billion in 4Q 2015.
Revenues for FY 2015 increased by 21.6% compared with FY 2014 and amounted to RUB 28.0 billion. Revenues for 4Q 2015 grew by 13.5% compared with 3Q 2015 and reached RUB 8.2 billion.
The Bank’s Cost-to-Income Ratio for FY 2015 stood at 38.7% (41.9% for FY 2014), 4Q 2015 Cost-to-Income Ratio amounted to 41.1%. Operating costs for FY 2015 increased by 12.2% compared with FY 2014 to RUB 10.8 billion; operating costs for 4Q 2015 amounted to RUB 3.4 billion (+34.2% compared with 3Q 2015).
Net income for FY 2015 amounted to RUB 3.6 billion (-24.5% compared with FY 2014); net income for 4Q 2015 amounted to RUB 0.9 billion. The Bank’s return on equity (ROAE) for FY 2015 amounted to 6.7%, ROAE for 4Q 2015 - 6.6%. Total comprehensive income for FY 2015 reached RUB 5.6 billion (+23.6% compared with FY 2014 result).
As at January 1, 2016, the Bank’s assets amounted to RUB 562.5 billion (+7.8% compared with January 1, 2015; +6.6% compared with October 1, 2015).
Liabilities. Customer deposits totalled RUB 343.4 billion (+5.7% compared with January 1, 2015; +4.6% compared with October 1, 2015). As at January 1, 2016, 54.8% of customer deposits belonged to individuals and 45.2% - to corporate customers. During FY 2015, the volume of retail deposits increased by 20.5% to RUB 188.1 billion; the volume of corporate deposits decreased by 8.0% to RUB 155.3 billion. As at January 1, 2016, the share of wholesale funding in liabilities amounted to 3.9%.
Equity and capital. As at January 1, 2016, the shareholders equity amounted to RUB 56.8 billion (+10.7% compared with January 1, 2015; +1.9% compared with October 1, 2015). The Bank’s total capital amounted to RUB 81.1 billion (+29.3% compared with January 1, 2015; +1.5% compared with October 1, 2015). The capital growth was mainly driven by subordinated funds attracted from DIA in the amount of RUB 14.6 billion. As at January 1, 2016, the Bank’s Tier 1 and total capital adequacy ratios were 9.9% and 15.6% respectively.
Loan portfolio before provisions totalled RUB 370.3 billion (+7.7% compared with January 1, 2015; +5.0% compared with October 1, 2015). Loans to corporate customers represented 85.6% of the loan portfolio, loans to individuals – 14.4%. During FY 2015 corporate loan portfolio increased by 8.5% to RUB 316.8 billion. During FY 2015 retail loan portfolio increased by 10.1% to RUB 48.7 billion (mortgage loans grew by 20.4%, consumer loans decreased by 2.6%, car loans decreased by 31.9%). In 4Q 2015 retail loan portfolio grew by 4.2%.
Loan portfolio quality. As at January 1, 2016, the share of problem loans in the Bank’s portfolio (total share of overdue loans and impaired not past due loans) amounted to 12.4% (10.0% as at January 1, 2015). The share of overdue loans in the Bank’s portfolio amounted to 5.9% of the total volume of loans. The share of the corporate overdue loans amounted to 6.0% of the total corporate loans; the share of the retail overdue loans amounted to 5.3% of the total retail loans. As at January 1, 2016, impaired not past due loans constituted 6.6% of the total volume of loans. The rate of provisions for loan impairment amounted to 9.4% (8.3% as at January 1, 2015). Provision charge for FY 2015 amounted to RUB 12.3 billion. In FY 2015, loans in the amount of RUB 5.7 billion were written off.
FY 2015 IFRS Financial Statements are available on the Bank’s website: