27.11.2019

Bank Saint Petersburg’s Net Profit amounted to RUB 5.5 billion for 9M 2019

Bank “Saint Petersburg”summed results for 3Q and 9M 2019 according to International Financial Reporting Standarts (IFRS). Finacial highlights according to IFRS Consolidated Statements:

  • 9M 2019 Core banking revenues increased by 12.3% and amounted to RUB 22.5 billion, including RUB 7.7 billion for
    3Q 2019 (+9.3% compared with 3Q 2018);

  • 9M 2019 Net interest income increased by 6.9% and amounted to RUB 16.9 billion, including RUB 5.9 billion for 3Q 2019 (+6.1% compared with 3Q 2018);

  • 9M 2019 Net F&C income increased by 23.3% and amounted to RUB 5.2 billion, including RUB 1.9 billion for 3Q 2019 (+27.6% compared with 3Q 2018);

  • Retail loan portfolio grew by 15.7% YTD and amounted to RUB 97.6 billion (+3.9% for 3Q 2019).

Alexander Savelyev, Chairman of the Management Board, comments on the Bank’s 9M 2019 results:

“The Bank shows stable results - in the third quarter we made a profit of RUB 2 billion, repeating the result of the previous quarter. The Bank achieved its first visible results in implementing the updated Strategy – loan portfolio grew by 8% in third quarter. We see the opportunities for future growth, including in Moscow, which brings us closer to achieving the Strategy goals.”

Bank Saint Petersburg is ranked 14th in terms of assets and 14th in terms of retail deposits among Russian banks (Interfax ranking). As at October 1, 2019, the Bank provides services to 2 215 000 individuals and 50 000 corporates. The number of cards issued by the Bank reached 1 440 000. At present Internet Bank is used by 1 250 000 clients.

In October 2019, the Bank completed all buy-back procedures and acquired 12 million shares at a price of 53.5 rubles per share. After the buyback the Bank's total treasury shares amounted to 24 million (4.8% of ordinary shares). The Bank confirms the intention to cancel the acquired shares.

In November 2019, the Bank’s Supervisory board approved opening a full-sized branch “Nevsky” in Novosibirsk. The Bank’s representative office has been there since 2016, focusing on attracting large corporates in Siberia and Far East regions. The branch opening allows expanding focus onto the new segments, namely SMEs and individuals in the region, as well as developing actively as a universal bank.

Results summary for 9M 2019

Net interest income (NII) amounted to RUB 16.9 billion for 9M 2019 (+6.9% compared with 9M 2018) and RUB 5.9 billion for 3Q 2019 (+6.1% compared with 3Q 2018). Interest income for 9M 2019 increased by 8.2% compared with 9M 2018; interest income is comprised mostly of interest income on loans and advances to customers (72.9%). Interest expense increased by 7.6%: interest expenses on retail term deposits decreased by 19.9% (41.2% of total interest expenses) while interest expenses on corporate term deposits increased by 8.6% (20.9% of total interest expenses). Net interest margin (NIM) amounted to 3.7% for 9M 2019 and 3.9% for 3Q 2019 (3.7% for 9M 2018; 3.8% for 3Q 2018).

Net fee and commission income amounted to RUB 5.2 billion for 9M 2019 (+23.3% compared with 9M 2018) and RUB 1.9 billion for 3Q 2019 (+27.6% compared with 3Q 2018). Compared with 9M 2018, income from plastic cards settlements grew by 12.5% (39.9% of total F&C income), income from cash and settlement transactions grew by 10.9% (40.3% of total F&C income).

Net trading loss for 9M 2019 amounted to RUB 0.6 billion.

Revenues amounted to RUB 22.3 billion for 9M 2019 (-3.9% compared with 9M 2018) and RUB 7.5 billion for 3Q 2019
(-2.7% compared with 3Q 2018).

Cost-to-Income Ratio stood at 46.1% for 9M 2019 (42.2% for 9M 2018) and 44.1% for 3Q 2019 (40.3% for 3Q 2018). Operating costs amounted to RUB 10.3 billion for 9M 2019 (+4.9% compared with 9M 2018) and RUB 3.3 billion for 3Q 2019 (+6.4% compared with 3Q 2018).

Net income for 9M 2019 amounted to RUB 5.5 billion (-15.0% compared with 9M 2018). Net income for 3Q 2019 amounted to RUB 2.0 billion (-2.5% compared with 3Q 2018). The Bank’s return on equity (ROAE) amounted to 9.5% for 9M 2019 (11.9% for 9M 2018) and 10.4% for 3Q 2019 (11.3% for 3Q 2018).

As at October 1, 2019, the Bank’s assets amounted to RUB 655.9 billion (-2.6% compared with January 1, 2019; -0.2% compared with July 1, 2019).

Customer deposits totalled RUB 417.0 billion (+0.5% compared with January 1, 2019; +4.3% compared with July 1, 2019). During 9M 2019, the volume of current and settlement accounts increased by 19.4%; the volume of term deposits decreased by 7.8%. As at October 1, 2019, 58.1% of customer deposits belonged to individuals and 41.9% – to corporate customers.

Equity and capital. As at October 1, 2019, the shareholders equity amounted to RUB 78.8 billion (+4.2% compared with January 1, 2019; +2.7% compared with July 1, 2019). The Bank’s total capital amounted to RUB 95.1 billion (+3.5% compared with January 1, 2019; +2.6% compared with July 1, 2019). As at October 1, 2019, the Bank’s Tier 1 and total capital adequacy ratios were 10.0% and 14.6% respectively.

Loan portfolio before provisions totalled RUB 390.8 billion (+4.1% compared with January 1, 2019; +6.9% compared with July 1, 2019). Loans to corporate customers represented 73.8% of the loan portfolio, loans to individuals – 26.2%. During 9M 2019, corporate loan portfolio increased by 1.1% to RUB 288.5 billion (+8.2 in 3Q 2019). During 9M 2019, retail loan portfolio increased by 13.9% to RUB 97.6 billion (+3.9 in 3Q 2019). During 9M 2019, mortgage loans grew by 11.6%, consumer loans grew by 23.7%, car loans grew by 37.7% (+1.6%, +8.8% and +11.4% in 3Q 2019 respectively).

Loan portfolio quality. As at October 1, 2019, the share of problem loans in the Bank’s portfolio amounted to 10.7% (10.8% as at January 1, 2019; 10.4% as at July 1, 2019). The rate of provisions for loan impairment amounted to 9.2% (9.7% as at January 1, 2019). Provision charge for 9M 2019 amounted to RUB 4.9 billion (RUB 1.7 billion for 3Q 2019). For 9M 2019, loans in the amount of RUB 6.4 billion were written off (RUB 2.3 billion for 3Q 2019).

9M 2019 IFRS Financial Statements are available on the Bank’s website:

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

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