Bank Saint Petersburg doubled IFRS net income for 1Q 2016
- 1Q 2016 Revenues increased by 36.2% compared with 1Q 2015 and amounted to RUB 7.5 billion (USD 112 million);
- 1Q 2016 Net interest income increased by 22.9% compared with 1Q 2015 and amounted to RUB 5.1 billion (USD 75 million);
- 1Q 2016 Net fee and commission income increased by 34.8% compared with 1Q 2015 and amounted to RUB 1.1 billion (USD 17 million);
- 1Q 2016 Net income doubled to RUB 1.2 billion (USD 17 million);
- Supervisory Board recommended General Shareholders' Meeting to pay dividends in the amount of RUB 462 million (20% of FY 2015 RAS Net income).
*The RUB-nominated figures are translated into USD at the official exchange rate quoted by the CBR for March 31, 2016 (USD 1.00 = RUB 67.61).
Vladislav Guz, Chairman of the Management Board, commented on the Bank’s 1Q 2016 results: “Once again the Bank demonstrated significant revenues increase across all business lines. We are particularly pleased with the net interest income growth, which confirms that the Bank overcame the consequences of interest rate risk shock in late 2014/early 2015. Our strong financial performance and successful buyback lead the way to the Bank’s share price recovery, ensuring a 20% rise since the beginning of the year”.
Bank Saint Petersburg is ranked 17th in terms of assets and 15th in terms of retail deposits among the Russian banks (Interfax ranking). Today the Bank provides services to 1,635,000 individuals and 56,000 corporates. The number of cards issued by the Bank reached 1,000,000. As at April 1, 2016, the number of ATMs increased to 737. The Internet Bank is actively used by 630,000 clients.
In April 2016, the rating agency Moody's Investors Service affirmed the Bank’s rating B1 with stable outlook. The Bank also has the rating BB- from Fitch Ratings with stable outlook.
Results summary for 1Q 2016
Net interest income increased by 22.9% compared with 1Q 2015 and amounted to RUB 5.1 billion. Compared with 1Q 2015, interest income increased by 5.0%; interest income comprises mostly of interest income on loans and advances to customers (73.9%). Interest expenses decreased by 4.0%: interest expenses on retail term deposits grew by 12.9% (31.9% of total interest expenses) while interest expenses on corporate term deposits decreased by 19.1% (22.4% of total interest expenses). Compared with FY 2015, net interest margin (NIM) for 1Q 2016 increased by 27 bp and amounted to 3.8%.
Net fee and commission income increased by 34.8% compared with 1Q 2015 and amounted to RUB 1.1 billion. Compared with 1Q 2015, income from cash and settlement transactions grew by 29.2% (49.1% of total F&C income), income from plastic cards and cheque settlements grew by 15.1% (24.8% of total F&C income), income from guarantees and letters of credit issued increased by 116% (20.2% of total F&C income).
Net trading income. In 1Q 2016 an aggregate gain from financial markets operations amounted to RUB 1.3 billion (RUB 502 million in 1Q 2015). Gains from operations with securities amounted to RUB 0.7 billion, gains from operations with foreign currencies and derivatives amounted to RUB 0.6 billion.
Revenues for 1Q 2016 amounted to RUB 7.5 billion (+36.2% compared with 1Q 2015).
The Bank’s Cost-to-Income Ratio for 1Q 2016 stood at 38.2% (41.0% for 1Q 2015). Operating costs for 1Q 2016 increased by 26.9% compared with 1Q 2015 to RUB 2.9 billion.
Net income for 1Q 2016 amounted to RUB 1.2 billion (+106% compared with 1Q 2015). The Bank’s return on equity (ROAE) for 1Q 2016 amounted to 8.2%.
As at April 1, 2016, the Bank’s assets amounted to RUB 561.5 billion (-0.2% compared with January 1, 2016).
Liabilities. Customer deposits totalled RUB 330.1 billion (-3.9% compared with January 1, 2016). As at April 1, 2016, 55.9% of customer deposits belonged to individuals and 44.1% - to corporate customers. During 1Q 2016, the volume of retail deposits decreased by 1.9%; the volume of corporate deposits decreased by 6.3%. As at April 1, 2016, the share of wholesale funding in liabilities amounted to 3.6%.
Equity and capital. As at April 1, 2016, the shareholders equity increased by 2.0% compared with January 1, 2016 to RUB 57.9 billion. The Bank’s total capital amounted to RUB 82.8 billion (+2.1% compared with January 1, 2016). As at April 1, 2016, the Bank’s Tier 1 and total capital adequacy ratios were 10.0% and 15.9% respectively.
Loan portfolio before provisions totalled RUB 367.1 billion (-0.9% compared with January 1, 2016). As at April 1, 2016, loans to corporate customers represented 84.7% of the loan portfolio, loans to individuals – 15.3%. During 1Q 2016 corporate loan portfolio decreased by 1.9% to RUB 310.8 billion. During 1Q 2016 retail loan portfolio increased by 4.7% to RUB 51.0 billion (mortgage loans increased by 7.1%, consumer loans – by 0.8%, car loans decreased by 12.2%).
Loan portfolio quality. As at April 1, 2016, the share of overdue loans in the Bank’s portfolio amounted to 6.4% of the total volume of loans. The share of the corporate overdue loans amounted to 6.6% of the total corporate loans; the share of the retail overdue loans amounted to 5.3% of the total loans to individuals. Impaired not past due loans constituted 7.0% of the total volume of loans. As at April 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 13.4%. The rate of provisions for loan impairment amounted to 10.3% (9.4% as at January 1, 2016). Provision charge for 1Q 2016 amounted to RUB 2.9 billion. In 1Q 2016, loans in the amount of RUB 0.2 billion were written off.
1Q 2016 IFRS Financial Statements are available on the Bank’s website: