Retail Loan Portfolio of Bank Saint Petersburg Shows a 18.3% Growth Reaching RUB 52.1 bn
The scheduled Supervisory Board Meeting of Bank Saint Petersburg was held on September 22 to review the 1H 2016 reports of the Bank’s key businesses and a number of other issues.
Mr. Alexander Savelyev, Chairman of the Management Board: “The Bank continues to demonstrate solid and stable results notwithstanding the current challenges. We noted today in particular the substantial growth of our retail and corporate businesses. I am pleased with the outstanding performance of these business units. As members of the Supervisory Board emphasized today, the Bank’s key priorities should be its efficiency and team strengthening”.
Compared with 1H 2015, the retail loan portfolio has gained 18.3% reaching RUB 52.1 bn, while mortgage loans rocketed by 31.0% to RUB 39.6 bn. The Bank is rapidly expanding its presence in the digital environment with the view to ensure long-term efficiency of its retail business. The Bank has already established itself as a digital sales leader. Payments and money transfers through digital channels account for 96% of the Bank’s overall customer payments. During 1H 2016 the share of consumer loans originated online comprised 83% of such loans. The share of deposits placed online reached 59% of the overall retail deposits. The reporting period saw a 34% increase in the number of active users of the Internet Bank. As demonstrated by the above figures, just in six months the Bank’s retail business has already reached its strategic targets for the current year.
The corporate business has demonstrated a 9% growth of the corporate loan portfolio and 45% growth of risk-free fee and commission income per 1 active customer y-o-y. The corporate business was simultaneously focused on increasing the revenues from its existing customer base and optimizing its loan portfolio: diversifying credit risks by attracting new borrowers and optimizing the industry structure of the portfolio. For the rest of the year the corporate business aims to retain its funding base, reinforce its market share and ensure further growth of fee and commission income share in its revenues, in particular from cross-border trade services and by broadening the range of ancillary products and services for corporate customers using the ‘financial supermarket’ approach.
The branch network management unit created in 2016 significantly improved the quality of customer services and contributed to the Bank’s financial performance. Treating the branch network as a single area of focus for management efforts allowed to introduce centralized planning, budgeting and administration, improve account opening time and operations quality, and cut waiting lines in customer service areas to the optimum level. Sales optimization and digitalization of a number of time-consuming front office operations brought about a larger customer base and a 10% increase in the number of transactions per 1 customer. Revenues per 1 branch network employee in 1H 2016 reached RUB 7.7 mln, while workforce productivity in transaction banking viewed as one of the Bank’s priorities and evaluated by net non-interest income per 1 employee demonstrated a 7% growth.
The Supervisory Board also reviewed the Bank’s remuneration policy and audit fees, specified certain details in the 2016-2018 strategy and analysed the Bank’s 2Q and 1H IFRS results. Mr. Maris Mancinskis, CEO, new member of the Bank’s management team whose extensive international experience will contribute to the Bank’s future achievements, was also presented to the Supervisory Board.