29.11.2017

Bank Saint Petersburg posted the all-time best IFRS profit

Financial highlights*:

  • Net Income reached the all-time best RUB 5.7 billion for 9M 2017, including RUB 2.4 billion for 3Q 2017;
  • ROAE reached 11.8% for 9M 2017 and 14.4% for 3Q 2017;
  • Сost of risk decreased to 2.3% for 3Q 2017, the lowest level in 3 years;
  • Retail loan portfolio increased by 21.9% during 9M 2017 to RUB 66.3 billion.

*Consolidated IFRS FS for 9M 2017.

Alexander Savelyev, Chairman of the Management Board, comments on the Bank’s 9M 2017 results:

”The Bank earned the all-time best IFRS profit of RUB 5.7 bn for 9M 2017. It is especially important that we achieved these results during arguably the most challenging time for the Russian banking sector. We improved our capital position through the successful share issue, we keep breaking records in retail lending, while our customers confirmed their confidence in the Bank – customer deposits increased by RUB 12.9 bn during the quarter. All this proves the sustainability of our business model”.

Bank Saint Petersburg is ranked 18th in terms of assets and 15th in terms of retail deposits among Russian banks (Interfax ranking). As at October 1, 2017, the Bank provides services to 1 890 000 individuals and 51 000 corporates; the number of cards issued by the Bank is 1 160 000; the Bank’s card network comprised of 803 ATMs. At present Internet Bank is used by 900 000 clients.

Among the key events of 9M 2017, is decision of the Annual General Shareholders Meeting to distribute 20% of FY 2016 RAS net profit for dividends.

In 3Q 2017, the Bank successfully completed the placement of 60 mln new ordinary shares, thus increasing its capital by RUB 3.2 bn. The transaction drew strong interest from existing and new institutional investors: more than 50 funds took part in the placement by exercising their pre-emptive rights or through open subscription.

Results summary for 9M 2017

Net interest income (NII) amounted to RUB 14.6 billion for 9M 2017 (-9.2% compared with 9M 2016) and RUB 5.4 billion for 3Q 2017 (+17.8% compared with 2Q 2017). Interest income for 9M 2017 decreased by 9.4% compared with 9M 2016; interest income is comprised mostly of interest income on loans and advances to customers (76.0%). Interest expense decreased by 9.6%: interest expenses on retail term deposits decreased by 9.0% (31.6% of total interest expenses) while interest expenses on corporate term deposits decreased by 14.3% (20.9% of total interest expenses). Net interest margin (NIM) amounted to 3.6% and 4.0% for 9M and 3Q 2017 respectively (4.1% for 9M 2016; 3.4% for 2Q 2017).

Net fee and commission income for 9M 2017 increased by 7.8% compared with 9M 2016 and amounted to RUB 3.7 billion. Compared with 9M 2016, income from plastic cards settlements grew by 32.5% (39.9% of total F&C income), income from cash and settlement transactions grew by 6.9% (40.5% of total F&C income), income from guarantees and letters of credit issued decreased by 12.5% (13.9% of total F&C income).

Net trading income for 9M 2017 reached RUB 5.5 billion (+58.1% compared with 9M 2016), a record high for the Bank. 83% of the net trading income is comprised of gains from operations with foreign currencies and derivatives

Revenues amounted to RUB 24.7 billion for 9M 2017 (+6.1% compared with 9M 2016) and RUB 8.5 billion for 3Q 2017 (-1.9% compared with 2Q 2017).

Cost-to-Income Ratio stood at 39.9% for 9M 2017 (39.3% for 9M 2016). Operating costs amounted to RUB 9.8 billion for 9M 2017 (+7.8% compared with 9M 2016) and RUB 3.4 billion for 3Q 2017 (-0.7% compared with 2Q 2017).

Net income reached the all-time best RUB 5.7 billion for 9M 2017 (+89.3% compared with 9M 2016), including RUB 2.4 billion for 3Q 2017 (+30.6% compared with 2Q 2017). The Bank’s return on equity (ROAE) amounted to 11.8% for 9M 2017 (6.9% for 9M 2016) and 14.4% for 3Q 2017 (11.7% for 2Q 2017).

As at October 1, 2017, the Bank’s assets amounted to RUB 572.8 billion (-1.3% compared with January 1, 2017; +2.3% compared with July 1, 2017).

Customer deposits totalled RUB 335.7 billion (-6.2% compared with January 1, 2017; +4.0% compared with July 1, 2017). The volume of current and settlement accounts amounted to RUB 108.0 billion (+3.7% compared with January 1, 2017; +1.3% compared with July 1, 2017). The volume of term deposits amounted to RUB 227.7 billion (-10.2% compared with January 1, 2017; +5.4% compared with July 1, 2017). As at October 1, 2017, 57.5% of customer deposits belonged to individuals and 42.5% - to corporate customers.

Equity and capital. As at October 1, 2017, the shareholders equity amounted to RUB 69.1 billion (+13.6% compared with January 1, 2017; +7.9% compared with July 1, 2017). The Bank’s total capital amounted to RUB 88.1 billion (+7.9% compared with January 1, 2017; +6.2% compared with July 1, 2017). As at October 1, 2017, the Bank’s Tier 1 and total capital adequacy ratios were 17.8% and 13.0% respectively.

Loan portfolio before provisions totalled RUB 350.3 billion (-1.1% compared with January 1, 2017; -1.4% compared with July 1, 2017). Loans to corporate customers represented 79.7% of the loan portfolio, loans to individuals – 20.3%. During 9M 2017, corporate loan portfolio decreased by 5.1% to RUB 279.2 billion. During 9M 2017 retail loan portfolio increased by 21.9% to RUB 66.3 billion (mortgage loans grew by 18.7%, consumer loans grew by 36.9%, car loans grew by 9.1%).

Loan portfolio quality. As at October 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 15.6% (15.2% as at January 1, 2017). The share of overdue loans in the Bank’s portfolio amounted to 7.7% of the total volume of loans. The share of the corporate overdue loans amounted to 8.6% of the total corporate loans; the share of the overdue loans to individuals amounted to 4.2% of the total loans to individuals. As at October 1, 2017, impaired not past due loans constituted 7.9% of the total volume of loans. The rate of provisions for loan impairment amounted to 12.8% (11.2% as at January 1, 2017). Provision charge for 9M 2017 amounted to RUB 7.2 billion. For 9M 2017, loans in the amount of RUB 2.1 billion were written off.

9M 2017 IFRS Financial Statements are available on the Bank’s website:

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

Tags: IR News