- 1Q 2017 Net Income reached RUB 1.5 billion, the highest net income since 1Q 2011;
- 1Q 2017 ROAE reached 9.7%, the highest level in 3 years;
- 1Q 2017 Сost of risk decreased to 307 bp, the lowest level in 2 years.
*Consolidated IFRS FS for 1Q 2017.
Alexander Savelyev, Chairman of the Management Board, comments on the Bank’s 1Q 2017 results:
”The Bank has posted the best quarterly net profit in 6 years. Our efforts to reduce risk profile in the corporate book are starting to yield results. We believe the Bank has a strong potential for further cost of risk decrease and ROE recovery”.
Bank Saint Petersburg is ranked 18th in terms of assets and 18th in terms of retail deposits among Russian banks (Interfax ranking). As at April 1, 2017, the Bank provides services to 1 800 000 individuals and 52 000 corporates; the number of cards issued by the Bank is 1 057 000; the Bank’s card network comprised of 787 ATMs. At present Internet Bank is used by 809 000 clients.
On May 18, 2017, the Annual General Shareholders' Meeting approved RUB 464 million dividend payout, that corresponds to 20% of 2016 RAS Net income. The dividend record date is May 31, 2017.
Results summary for 1Q 2017
1Q 2017 Net interest income (NII) amounted to RUB 4.7 billion (-7.9% compared with 1Q 2016; -23,0% compared with 4Q 2016). Interest income for 1Q 2017 decreased by 6.1% compared with 1Q 2016; interest income is comprised mostly of interest income on loans and advances to customers (72.7%). Interest expense decreased by 4.9%: interest expenses on retail term deposits decreased by 12.7% (29.3% of total interest expenses) while interest expenses on corporate term deposits inreased by 5.8% (24.9% of total interest expenses). Net interest margin (NIM) for 1Q 2017 amounted to 3.5% (3.8% for 1Q 2016; 4.5% for 4Q 2016). The key factor behind the NII and NIM decline q-o-q were increased interest expenses related to funding of trading activities (RUB 0.8 billion) that demonstrated exceptionally high results; its impact on NIM amounted to -0.6%.
1Q 2017 Net fee and commission income increased by 3.8% compared with 1Q 2016 and amounted to RUB 1.2 billion. Compared with 1Q 2016, income from plastic cards settlements grew by 35.7% (38.6% of total F&C income), income from cash and settlement transactions grew by 8.8% (39.2% of total F&C income).
1Q 2017 Net trading income reached RUB 1.6 billion (+25.5% compared with 1Q 2016), the highest level in 5 quarters. 98% of the net trading income is comprised of gains from operations with foreign currencies and derivatives. Exceptionally high gains from trading operations allowed the Bank to fully outweigh trading-related interest expenses.
1Q 2017 Revenues remained at the level of 1Q 2016 and amounted to RUB 7.5 billion.
The Bank’s Cost-to-Income Ratio for 1Q 2017 stood at 39.6% (38.2% for 1Q 2016). Operating costs for 1Q 2017 increased by 3.6% compared with 1Q 2016 to RUB 3.0 billion.
Net income for 1Q 2017 amounted to RUB 1.5 billion (+26.3% compared with 1Q 2017), the highest net income since 1Q 2011, net of one-off incomes. The Bank’s return on equity (ROAE) for 1Q 2017 amounted to 9.7%.
As at April 1, 2017, the Bank’s assets amounted to RUB 553.0 billion (-4.7% compared with January 1, 2017).
Liabilities. Customer deposits totalled RUB 328.2 billion (-8.3% compared with January 1, 2017). As at April 1, 2017, 56.2% of customer deposits belonged to individuals and 43.8% - to corporate customers. During 1Q 2017, the volume of retail deposits decreased by 1.6%; the volume of corporate deposits decreased by 15.7%.
Equity and capital. As at April 1, 2017, the shareholders equity amounted to RUB 62.2 billion (+2.2% compared with January 1, 2017). The Bank’s total capital amounted to RUB 82.3 billion (+0.8% compared with January 1, 2017). As at April 1, 2017, the Bank’s Tier 1 and total capital adequacy ratios were 11.9% and 17.2% respectively.
Loan portfolio before provisions totalled RUB 347.5 billion (-1.9% compared with January 1, 2017). Loans to corporate customers represented 82.4% of the loan portfolio, loans to individuals – 17.6%. During 1Q 2017 corporate loan portfolio decreased by 2.6% to RUB 286.4 billion. During 1Q 2017 retail loan portfolio increased by 3.6% to RUB 56.4 billion (mortgage loans grew by 3.4%, consumer loans grew by 5.4%, car loans decreased by 4.1%).
Loan portfolio quality. As at April 1, 2017, the share of problem loans in the Bank’s portfolio (total share of overdue loans and impaired not past due loans) amounted to 15.7% (15.2% as at January 1, 2017). The share of overdue loans in the Bank’s portfolio amounted to 7.1% of the total volume of loans. The share of the corporate overdue loans amounted to 7.5% of the total corporate loans; the share of the overdue loans to individuals amounted to 5.0% of the total retail loans. As at April 1, 2017, impaired not past due loans constituted 8.6% of the total volume of loans. The rate of provisions for loan impairment amounted to 12.1% (11.2% as at January 1, 2017). Provision charge for 1Q 2017 amounted to RUB 2.7 billion. For 1Q 2017, loans in the amount of RUB 0.2 billion were written off.
1Q 2017 IFRS Financial Statements are available on the Bank’s website: