Bank Saint Petersburg’s Net Profit amounted to RUB 7.9 billion in FY 2019
Bank “Saint Petersburg”summed results for 4Q and FY 2019 according to International Financial Reporting Standarts (IFRS). Finacial highlights according to IFRS Consolidated Statements:
- Corporate loan portfolio increased by 4.5% YTD following mid-year strategy review and amounted to RUB 298.5 bn (+3.4% in 4Q 2019);
- FY 2019 Net F&C income increased by 28.9% and amounted to RUB 6.8 billion, including RUB 2.0 billion for 4Q 2019 (+31.3% compared with 4Q 2018);
- FY 2019 Core banking revenues increased by 13.6% and amounted to RUB 30.5 billion, including RUB 8.4 billion for
4Q 2019 (+15.1% compared with 4Q 2018);
- 4Q 2019 Net income reached RUB 2.4 billion, implying 4Q 2019 ROAE of 12.0%;
Alexander Savelyev, Chairman of the Management Board, comments on the Bank’s FY 2019 results:
“Core banking business growth was our biggest achievement in 2019, namely lending and settlement services to corporate and retail customers. Transaction business, being one of key strategic priorities, provided sizable income, leading to increase in net fees and commissions income by 29%. We are also welcoming the changing trend in corporate lending, as a result of which the Bank increased its loan portfolio by 12% in second half of the year, demonstrating our competitive potential amidst the downward interest rates trend”.
Bank Saint Petersburg is ranked 14th in terms of assets and 14th in terms of retail deposits among Russian banks (Interfax ranking). As at January 1, 2020, the Bank provides services to 2 232 000 individuals and 50 000 corporates. The number of cards issued by the Bank reached 1 513 000. At present Internet Bank is used by 1 297 000 clients.
In December 2019, the Bank opened 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.
On March 2nd, 2020, the Bank opened a representative office in Rostov-on-Don. Representative office is focused on corporate customers, building up a loan portfolio and providing EXIM services. Other than that, on March 4th the Bank’s Supervisory Board resolved to open a new representative office in Krasnodar.
Results summary for FY 2019
Net interest income (NII) amounted to RUB 23.3 billion for FY 2019 (+6.3% compared with FY 2018) and RUB 6.4 billion for 4Q 2019 (+5.0% compared with 4Q 2018). Interest income for FY 2019 increased by 5.3% compared with FY 2018; interest income is comprised mostly of interest income on loans and advances to customers (74.7%). Interest income from corporates increased by 11.0% and amounted to RUB 24.0 bn; interest income from retail customers increased by 11.0% and amounted to RUB 12.2 bn. Interest expense increased by 2.4%: interest expenses on retail term deposits decreased by 14.3% (41.2% of total interest expenses) while interest expenses on corporate term deposits increased by 6.6% (21.2% of total interest expenses). Net interest margin (NIM) amounted to 3.7% for FY 2019 and 4.2% for 4Q 2019 (3.6% for FY 2018; 4.1% for 4Q 2018).
Net fee and commission income amounted to RUB 6.8 billion for FY 2019 (+28.9% compared with FY 2018) and RUB 2.0 billion for 4Q 2019 (+31.3% compared with 4Q 2018). Compared with FY 2018, income from plastic cards settlements grew by 13.6% (38.8% of total F&C income), income from cash and settlement transactions grew by 11.4% (40.8% of total F&C income).
Net trading loss for FY 2019 amounted to RUB 0.7 billion.
Revenues amounted to RUB 30.9 billion for FY 2019 (-5.7% compared with FY 2018) and RUB 8.7 billion for 4Q 2019
(-10.0% compared with 4Q 2018).
Cost-to-Income Ratio stood at 45.5% for FY 2019 (39.8% for FY 2018) and 44.2% for 4Q 2019 (34.0% for 4Q 2018). Operating costs amounted to RUB 14.1 billion for FY 2019 (+8.0% compared with FY 2018) and RUB 3.8 billion for 4Q 2019 (+17.1% compared with 4Q 2018).
Net income for FY 2019 amounted to RUB 7.9 billion (-12.6% compared with FY 2018). Net income for 4Q 2019 amounted to RUB 2.4 billion (-6.6% compared with 4Q 2018). The Bank’s return on equity (ROAE) amounted to 10.2% for FY 2019 (12.3% for FY 2018) and 12.0% for 4Q 2019 (13.6% for 4Q 2018).
As at January 1, 2020, the Bank’s assets amounted to RUB 673.7 billion (no change compared with January 1, 2019; +2.7% compared with October 1, 2019).
Customer deposits totalled RUB 417.6 billion (+0.7% compared with January 1, 2019; +0.1% compared with October 1, 2019). During FY 2019, the volume of current and settlement accounts increased by 15.4%; the volume of term deposits decreased by 5.8%. As at January 1, 2020, 59.6% of customer deposits belonged to individuals and 40.4% – to corporate customers.
Equity and capital. As at January 1, 2020, the shareholders equity amounted to RUB 80.1 billion (+5.8% compared with January 1, 2019; +1.6% compared with October 1, 2019). The Bank’s total capital amounted to RUB 96.1 billion (+4.6% compared with January 1, 2019; +1.1% compared with October 1, 2019). As at January 1, 2020, the Bank’s Tier 1 and total capital adequacy ratios were 9.7% and 14.8% respectively.
Loan portfolio before provisions totalled RUB 401.5 billion (+7.0% compared with January 1, 2019; +2.7% compared with October 1, 2019). Loans to corporate customers represented 74.4% of the loan portfolio, loans to individuals – 25.6%. During FY 2019, corporate loan portfolio increased by 4.5% to RUB 298.5 billion (+3.4% in 4Q 2019). During FY 2019, retail loan portfolio increased by 17.5% to RUB 99.1 billion (+1.6% in 4Q 2019). During FY 2019, mortgage loans grew by 11.7%, consumer loans grew by 28.7%, car loans grew by 50.0% (+0.1%, +4.1% and +8.9% in 4Q 2019 respectively).
Loan portfolio quality. As at January 1, 2020, the share of problem loans in the Bank’s portfolio amounted to 9.2% (10.8% as at January 1, 2019; 10.7% as at October 1, 2019). The rate of provisions for loan impairment amounted to 8.3% (9.7% as at January 1, 2019; 9.2% as at October 1, 2019). Provision charge for FY 2019 amounted to RUB 7.0 billion (RUB 1.8 billion for 4Q 2019). For FY 2019, loans in the amount of RUB 10.6 billion were written off (RUB 4.2 billion for 4Q 2019).
FY 2019 IFRS Financial Statements are available on the Bank’s website:
https://www.bspb.ru/en/investors/financial-statements/IFRS/.