28.05.2019

Bank Saint Petersburg earns RUB 1.3 billion in 1Q19

Financial highlights*:

  • 1Q 2019 Core banking revenues increased by 11.3% and amounted to RUB 7.0 billion;

  • 1Q 2019 Net interest income (NII)  amounted to RUB 5.7 billion (+13.5% compared with 1Q 2018);

  • 1Q 2019 Net fee and commission income amounted to RUB 1.4 billion (+2.8% compared with 1Q 2018);

  • Retil loan portfolio grew by 4.5% and amounted to RUB 88.2 billion.

*Consolidated IFRS FS for 1Q 2019.

Alexander Savelyev, Chairman of the Management Board, comments on the Bank’s 1Q 2019 results:

”We posted good results in the core banking, wherein revenues grew by 11%. This trend allows us to be confident in any situation on the market. In addition, the active growth of retail portfolio allowed the Bank to achieve 2020 strategic goal -  25% share of individuals in the total loan”.

Bank Saint Petersburg is ranked 15th in terms of assets and 15th in terms of retail deposits among Russian banks (Interfax ranking). As at April 1, 2019, the Bank provides services to 2 120 000 individuals and 50 000 corporates; the number of cards issued by the Bank reached 1 360 000; the Bank’s card network comprised of 800 ATMs. At present Internet Bank is used by 1 165 000 clients.

Results summary for 1Q 2019

1Q 2019 Net interest income (NII) amounted to RUB 5.7 billion (+13.5% compared with 1Q 2018). Interest income for 1Q 2019 increased by 17.2% compared with 1Q 2018; interest income is comprised mostly of interest income on loans and advances to customers (67.4%) that increased by 10.5%. Interest expense increased by 20.3%: interest expenses on retail term deposits increased by 16.5% (34.5% of total interest expenses) while interest expenses on corporate term deposits increased by 2.3% (18.6% of total interest expenses). Net interest margin (NIM) for 1Q 2019 amounted to 3.8% (3.6% for 1Q 2018).

1Q 2019 Net fee and commission income increased by 2.8% compared with 1Q 2018 and amounted to RUB 1.4 billion. Compared with 1Q 2018, income from plastic cards settlements increased by 4.3% (41.9% of total F&C income), income from cash and settlement transactions grew by 5.3% (40.2% of total F&C income).

1Q 2019 Net trading loss amounted to RUB 0.6 billion. (income of RUB 0.4 bn in 1Q 2018). Losses from operations with foreign currencies and derivatives amounted to RUB 0.4 billion, losses from operations with securities amounted to RUB 0.2 billion.

1Q 2019 Revenues amounted to RUB 6.9 billion (-3.8% compared with 1Q 2018).

The Bank’s Cost-to-Income Ratio for 1Q 2019 stood at 51.3% (41.0% for 1Q 2018). Operating costs for 1Q 2019 increased by 20.3% compared with 1Q 2018 and amounted to RUB 3.6 billion.

Net income for 1Q 2019 amounted to RUB 1.3 billion (-30.6% compared with 1Q 2018). The Bank’s return on equity (ROAE) for 1Q 2019 amounted to 6.9% (10.6% for 1Q 2018).

As at April 1, 2019, the Bank’s assets amounted to RUB 651.0 billion (-3.3% compared with January 1, 2019).

Liabilities. Customer deposits totalled RUB 405.3 billion (-2.3% compared with January 1, 2019). As at April 1, 2019, 59.7% of customer deposits belonged to individuals and 40.3% - to corporate customers. During 1Q 2019, the volume of retail deposits decreased by 2.9% compared with 1Q 2018 and amounted to RUB 241.8 billion; the volume of corporate deposits decreased by 1.3% and amounted to RUB 163.5 billion.

Equity and capital. As at April 1, 2019, the shareholders equity amounted to RUB 76.0 billion (+0.5% compared with January 1, 2019). The Bank’s total capital amounted to RUB 91.1 billion (+0.1% compared with January 1, 2019). As at April 1, 2019, the Bank’s Tier 1 and total capital adequacy ratios were 13.8% and 17.6% respectively.

Loan portfolio before provisions totalled RUB 335.3 billion (-1.0% compared with January 1, 2019). Loans to corporate customers represented 75.0% of the loan portfolio, loans to individuals – 25.0%. During 1Q 2019, corporate loan portfolio decreased by 1.9% to RUB 278.9 billion. During 1Q 2019, retail loan portfolio increased by 4.5% to RUB 88.2 billion (mortgage loans grew by 4.2%, consumer loans grew by 4.7%, car loans grew by 8.2%).

Loan portfolio quality. As at April 1, 2019, the share of problem loans in the Bank’s portfolio amounted to 10.6% (10.8% as at January 1, 2019). The rate of provisions for loan impairment amounted to 9.9% (9.7% as at January 1, 2019). Provision charge for 1Q 2019 amounted to RUB 1.7 billion. For 1Q 2019, loans in the amount of RUB 1.6 billion were written off.

1Q 2019 IFRS Financial Statements are available on the Bank’s website:

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