26.08.2016

Bank Saint Petersburg Increased IFRS Net Income By 27%

Financial highlights*:

  • 1H 2016 Revenues increased by 22.0% compared with 1H 2015 to RUB 15.3 billion (USD 239 million);

  • 1H 2016 Net interest income increased by 26.0% compared with 1H 2015 to RUB 10.4 billion (USD 162 million);

  • 1H 2016 Net fee and commission income increased by 23.2% compared with 1H 2015 to RUB 2.3 billion (USD 36 million);

  • 1H 2016 Net income increased by 27.3% compared with 1H 2015 and amounted to RUB 2.0 billion (USD 31 million).

*Consolidated IFRS FS for 1H 2016.

The RUB-nominated figures are translated into USD at the official exchange rate quoted by the CBR for June 30, 2016 (USD 1.00 = RUB 64.26).

Alexander Savelyev, Chairman of the Management Board, commented on the Bank’s 1H 2016 results:

”Due to record interest and fee income and consistently strong trading results, the Bank continues to demonstrate significant revenues growth. Our net interest margin already exceeds pre-crisis level. However, challenging macroeconomic environment continues to considerably affect the financial market resulting in a higher level of provisions”.

As at July 1, 2016, Bank Saint Petersburg was ranked 16th in terms of assets and 14th in terms of retail deposits among the Russian banks (Interfax ranking). Today, the Bank provides services to 1,670,000 individuals and 56,000 corporates. As at July 1, 2016, the number of cards issued by the Bank exceeded 1,040,000; the Bank’s ATM network comprised of 752 units. Internet-Bank was actively used by 670,000 individuals.

On 26 May 2016 the Annual General Shareholders' Meeting approved RUB 462 mln dividend payout, that corresponds to 20% of 2015 RAS net income.

In 2Q 2016, Fitch Ratings has affirmed the Bank’s BB- rating with Stable outlook and Moody’s Investors Service has affirmed the Bank’s B1 rating with Stable outlook.

Results summary for 1H 2016

1H 2016 Net interest income increased by 26.0% compared with 1H 2015 and amounted to RUB 10.4 billion. Interest income for 1H 2016 increased by 4.5% compared with 1H 2015; interest income is comprised mostly of interest income on loans and advances to customers (74.6%). Interest expense decreased by 6.2%: interest expenses on retail term deposits increased by 1.3% (31.1% of total interest expenses) while interest expenses on corporate term deposits decreased by 22.3% (22.2% of total interest expenses). 2Q 2016 Net interest income increased by 4.8% compared with 1Q 2016 and amounted to RUB 5.3 billion. Net interest margin (NIM) for 1H 2016 and 2Q 2016 amounted to 3.9% and 4.0% respectively (3.5% in 1H 2015 and 3.8% in 1Q 2016).

1H 2016 Net fee and commission income increased by 23.2% compared with 1H 2015 and amounted to RUB 2.3 billion. Compared with 1H 2015, income from cash and settlement transactions grew by 33.3% (48.5% of total F&C income), income from plastic cards and cheque settlements grew by 17.8% (26.2% of total F&C income), income from guarantees and letters of credit issued grew by 23.8% (18.2% of total F&C income). 2Q 2016 Net fee and commission income increased by 3.5% compared with 1Q 2016 and amounted to RUB 1.2 billion.

1H 2016 Net trading income increased by 8.6% compared with 1H 2015 and amounted to RUB 2.5 billion. Gains from operations with foreign currencies and derivatives amounted to RUB 1.6 billion, gains from operations with securities amounted to RUB 0.9 billion. 2Q 2016 Net trading income remained at the level of 1Q 2016 and amounted to RUB 1.2 billion.

Revenues for 1H 2016 increased by 22.0% compared with 1H 2015 and amounted to RUB 15.3 billion. Revenues for 2Q 2016 grew by 3.4% compared with 1Q 2016 and reached RUB 7.8 billion.

The Bank’s Cost-to-Income Ratio for 1H 2016 stood at 39.1% (39.4% for 1H 2015), 2Q 2016 Cost-to-Income Ratio amounted to 40.0%. Operating costs for 1H 2016 increased by 20.9% compared with 1H 2015 to RUB 6.0 billion; operating costs for 2Q 2016 amounted to RUB 3.1 billion (+8.2% compared with 1Q 2016).

Net income for 1H 2016 amounted to RUB 2.0 billion (+27.3% compared with 1H 2015); net income for 2Q 2016 amounted to RUB 0.8 billion (-17.3% compared with 2Q 2015). The Bank’s return on equity (ROAE) for 1H 2016 amounted to 6.9%, ROAE for 2Q 2016 – 5.7%. Total comprehensive income for 1H 2016 reached RUB 2.7 billion.

As at July 1, 2016, the Bank’s assets amounted to RUB 574.6 billion (+2.1% compared with January 1, 2016; +2.3% compared with April 1, 2016).

Liabilities. Customer deposits totalled RUB 339.2 billion (-1.2% compared with January 1, 2016; +2.8% compared with April 1, 2016). As at July 1, 2016, 55.4% of customer deposits belonged to individuals and 44.6% - to corporate customers. During 1H 2016, the volume of retail deposits decreased by 0.1%; the volume of corporate deposits decreased by 2.5%.

Equity and capital. As at July 1, 2016, the shareholders equity amounted to RUB 59.1 billion (+4.1% compared with January 1, 2016; +2.0% compared with April 1, 2016). The Bank’s total capital amounted to RUB 81.8 billion (+0.9% compared with January 1, 2016; -1.2% compared with April 1, 2016). As at July 1, 2016, the Bank’s Tier 1 and total capital adequacy ratios were 15.6% and 10.1% respectively.

Loan portfolio before provisions totalled RUB 368.7 billion (-0.4% compared with January 1, 2016; +0.4% compared with April 1, 2016). Loans to corporate customers represented 84.5% of the loan portfolio, loans to individuals – 15.5%. During 1H 2016 corporate loan portfolio decreased by 1.7% to RUB 311.4 billion. During 1H 2016 retail loan portfolio increased by 6.9% to RUB 52.1 billion (mortgage loans grew by 11.8%, consumer loans decreased by 2.3%, car loans decreased by 21.8%). In 2Q 2016 retail loan portfolio grew by 2.1%.

Loan portfolio quality. As at July 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 15.3% (12.4% as at January 1, 2016). The share of overdue loans in the Bank’s portfolio amounted to 6.5% of the total volume of loans. The share of the corporate overdue loans amounted to 6.7% of the total corporate loans; the share of the retail overdue loans amounted to 5.3% of the total retail loans. As at July 1, 2016, impaired not past due loans constituted 8.8% of the total volume of loans. The rate of provisions for loan impairment amounted to 11.0% (9.4% as at January 1, 2016). Provision charge for 1H 2016 amounted to RUB 6.1 billion. In 1H 2016, loans in the amount of RUB 0.4 billion were written off.

1H 2016 IFRS Financial Statements are available on the Bank’s website:

https://www.bspb.ru/en/investors/financial-statements/IFRS/.

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