10.03.2021

Bank Saint Petersburg earned the record-high Net Profit in FY 2020

Bank Saint Petersburg summed results for 4Q and FY 2020 according to International Financial Reporting Standards (IFRS). Financial highlights according to IFRS Consolidated Statements:

  • FY 2020 Net profit amounted to record-high RUB 10.8 billion (+36.9% compared with FY 2019), including RUB 4.5 bn in 4Q 2020 (+86.3% compared with 4Q 2019);

  • FY 2020 ROAE up to 12.9% (10.2% in FY 2019), 4Q 2020 ROAE up to 20.3% (12.1% in 4Q 2019);

  • Loan portfolio grew by 14.4% YTD, including +15.2% in corporate and +12.0% in retail portfolios.

Alexander Savelyev, Chairman of the Management Board, comments on the Bank’s FY 2020 results:

“Previous year was full of challenges for all of us – the more gratifying it is to realize that we posted record-high net income amidst the difficult environment. It confirms stability and efficiency of our business model, as well as professionalism and well-coordinated work of the Bank’s team. Successful digital transformation also played a vital role in our results, which was conducted throughout the recent years. Inkeeping with our inherent prudence and healthy conservatism, we view our 2021 prospects with confidence”.

Bank Saint Petersburg is ranked 16th in terms of assets and 15th in terms of retail deposits among Russian banks (Interfax ranking) as of January 1, 2021. The Bank provides services to 2 077 000 individuals and 50 000 corporates. The number of cards issued by the Bank reached 1 459 000 with 810 in-network ATMs and 1 482 000 active online banking users.

Results summary for FY 2020

Net interest income (NII) amounted to RUB 25.5 billion for FY 2020 (+9.6% compared with FY 2019) including RUB 7.2 bn for 4Q 2020 (+12.9% compared with 4Q 2019). Interest income for FY 2020 decreased by 10.4% compared with FY 2019; interest income is comprised mostly of interest income on loans and advances to customers (82.1%). Interest expense decreased by 29.0%: interest expenses on retail term deposits decreased by 22.0% (45.3% of total interest expenses) while interest expenses on corporate term deposits decreased by 29.1% (21.2% of total interest expenses).

Net interest margin (NIM) amounted to 3.9% for FY 2020 (3.7% for FY 2019) and 4.2% for 4Q 2020 (4.2% for 4Q 2019).

Net fee and commission income amounted to RUB 7.5 billion for FY 2020 (+10.6% compared with FY 2019) including RUB 2.3 bn for 4Q 2020 (+13.1% compared with 4Q 2019). Compared with FY 2019, income from cash and settlement transactions grew by 11.0% (40.6% of total F&C income), income from plastic cards settlements increased by 3.1% (35.8% of total F&C income).

Net trading income for FY 2020 amounted to RUB 2.5 billion (+ RUB 2.3 bn compared with FY 2019) including RUB 1.5 bn for 4Q 2020 and is comprised mostly of income from operations with foreign currencies and derivatives in the amount of RUB 2.8 bn.

Revenues amounted to RUB 37.9 billion for FY 2020 (+18.9% compared with FY 2019) including RUB 11.3 bn for 4Q 2020 (+26.5% compared with the 4Q 2019).

Cost-to-Income Ratio stood at 40.1% for FY 2020 (36.9% for FY 2019) including 38.2% for 4Q 2020 (42.9% for the 4Q 2019). Operating costs amounted to RUB 15.2 billion for FY 2020 (+7.9% compared with FY 2019)) including RUB 4.3 bn for 4Q 2020 (+12.7% for the 4Q 2019).

Net income for FY 2020 amounted to RUB 10.8 billion (+36.9% compared with FY 2019) including RUB 4.5 bn for 4Q 2020 (+86.3% compared with the 4Q 2019). The Bank’s return on equity (ROAE) amounted to 12.9% for FY 2020 (10.2% for FY 2019) and 20.3% for 4Q 2020 (12.1% for the 4Q 2019).

As of January 1, 2021, the Bank’s assets amounted to RUB 730.2 billion (+8.4% compared with January 1, 2020 and +1.3% compared with October 1, 2020).

Customer deposits totaled RUB 479.1 billion (+14.7% compared with January 1, 2020; +0.9% compared with October 1, 2020). During FY 2020, the volume of current and settlement accounts increased by 37.4%; the volume of term deposits increased by 2.4%. As of January 1, 2021, 57.6% of customer deposits belonged to individuals and 42.4% – to corporate customers.

Equity and capital. As of January 1, 2021, the shareholders equity amounted to RUB 88.7 billion (+11.7% compared with January 1, 2020 and +2.5% compared with October 1, 2020). As of January 1, 2021, the Bank’s total capital calculated under the CBR regulations (Basel III) amounted to RUB 86.8 bn (+6.2% compared with January 1, 2020, -1.9% compared with October 1, 2020). As of January 1, 2021, the Bank’s Tier 1 capital amounted to RUB 62.7 bn (-0.9% compared with January 1, 2020 and October 1, 2020 levels). As a result, the Tier 1 capital adequacy ratio (N1.2) as of January 1, 2021 amounted to 9.6% (required regulatory minimum is 6.0%) and the total capital adequacy ratio (N1.0) as of January 1, 2021 amounted to 13.5% (required regulatory minimum is 8.0%).

Loan portfolio before provisions totaled RUB 459.3 billion (+14.4% compared with January 1, 2020; -2.0% compared with October 1, 2020). Loans to corporate customers represented 74.9% of the loan portfolio, loans to individuals – 25.1%. During FY 2020, corporate loan portfolio increased by 15.2% to RUB 344.0 billion. During FY 2020, retail loan portfolio increased by 11.9% to RUB 110.9 billion. During FY 2020, mortgage loans grew by 16.8%, consumer loans grew by 1.5%, car loans grew by 2.0%.

Loan portfolio quality. As of January 1, 2021, the share of problem loans in the Bank’s portfolio amounted to 10.4% (9.2% as of January 1, 2020). The rate of provisions for loan impairment amounted to 8.7% (8.3% as of January 1, 2020). Provision charge for FY 2020 amounted to RUB 9.0 billion (RUB 1.8 bn for 4Q 2020). For FY 2020, loans in the amount of RUB 6.2 billion (RUB 3.0 bn for 4Q 2020) were written off.

FY 2020 IFRS Financial Statements are available on the Bank’s website:

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

Tags: IR News