Bank Saint Petersburg’s Net Profit amounted to RUB 3.6 billion for 1H2020
Bank “Saint Petersburg”summed results for 1H 2020 according to International Financial Reporting Standarts (IFRS). Finacial highlights according to IFRS Consolidated Statements:
- 1H 2020 Net profit amounted to RUB 3.6 billion (+3.6% compared with 1H 2019);
- 1H 2020 Net interest income amounted to RUB 12.3 billion (+11.2% compared with 1H 2019);
- 1H 2020 Net F&C income amounted to RUB 3.3 billion (+10.0% compared with 1H 2019);
- Core banking revenues increased by 9.3% y-o-y up to RUB 15.8 bn in 1H 2020;
- Loan portfolio grew by 3.9% YTD (+2.2% in retail and +4.5% in corporate) in 1H2020.
Alexander Savelyev, Chairman of the Management Board, comments on the Bank’s 1H 2020 results:
“Like the whole world economy, we faced a serious challenge this year. However sustainability of our business model and well-coordinated work of the bank allowed us not just to overcome the lockdown period and support our clients, but also to post net profit growth compared to last year figures. As of now, clients’ activity has already recovered and reached the February-March levels that makes us cautiously optimistic about further positive dynamics of our results”
Bank Saint Petersburg is ranked 15th in terms of assets and 15th in terms of retail deposits among Russian banks (Interfax ranking). As of July 1, 2020, the Bank provides services to 2 038 000 individuals and 50 000 corporates. The number of cards issued by the Bank reached 1 516 000 with 805 in-network ATMs and 1 356 000 active online banking users.
Results summary for 1H 2020
Net interest income (NII) amounted to RUB 12.3 billion for 1H 2020 (+11.2% compared with 1H 2019) including RUB 6.1 bn for 2Q 2020 (+13.8% compared with 2Q 2019). Interest income for 1H 2020 decreased by 10.0% compared with 1H 2019; interest income is comprised mostly of interest income on loans and advances to customers (81.7%). Interest expense decreased by 27.1%: interest expenses on retail term deposits decreased by 19.3% (44.3% of total interest expenses) while interest expenses on corporate term deposits decreased by 21.3% (22.9% of total interest expenses).
Net interest margin (NIM) amounted to 4.0% for 1H 2020 (3.6% for 1H 2019) and 4.0% for 2Q 2020 (3.5% for 2Q 2019).
Net fee and commission income amounted to RUB 3.3 billion for 1H 2020 (+10.0% compared with 1H 2019) including RUB 1.6 bn for 2Q 2020 (-6.3% compared with 2Q 2019). Compared with 1H 2019, income from cash and settlement transactions grew by 8.3% (40.1% of total F&C income), income from plastic cards settlements decreased by 1.3% (37.2% of total F&C income).
Net trading income for 1H 2020 amounted to RUB 0.4 billion (-19.0% compared with 1H 2019) including RUB 0.4 bn for 2Q 2020 and is comprised mostly of income from operations with foreign currencies and derivatives in the amount of RUB 0.5 bn.
Revenues amounted to RUB 17.0 billion for 1H 2020 (+10.5% compared with 1H 2019) including RUB 8.7 bn for 2Q 2020 (+8.9% compared with the 2Q 2019).
Cost-to-Income Ratio stood at 44.4% for 1H 2020 (45.2% for 1H 2019) including 39.2% for 2Q 2020 (42.6% for the 2Q 2019). Operating costs amounted to RUB 7.5 billion for 1H 2020 (+8.5% compared with 1H 2019) ) including RUB 3.4 bn for 2Q 2020 (+0.2% for the 2Q 2019).
Net income for 1H 2020 amounted to RUB 3.6 billion (+3.6% compared with 1H 2019) including RUB 2.0 bn for 2Q 2020 (-7.9% compared with the 2Q 2019). The Bank’s return on equity (ROAE) amounted to 8.8% for 1H 2020 (9.2% for 1H 2019) and 9.8% for 2Q 2020 (11.5% for the 2Q 2019).
As of July 1, 2020, the Bank’s assets amounted to RUB 671.4 billion (-0.3% compared with January 1, 2020 and +0.4% compared with April 1, 2020).
Customer deposits totalled RUB 432.2 billion (+3.5% compared with January 1, 2020; -0.6% compared with April 1, 2020). During 1H 2020, the volume of current and settlement accounts increased by 16.6%; the volume of term deposits decreased by 3.6%. As of July 1, 2020, 57.8% of customer deposits belonged to individuals and 42.2% – to corporate customers.
Equity and capital. As of July 1, 2020, the shareholders equity amounted to RUB 83.7 billion (+4.5% compared with January 1, 2020 and +2.5% compared with April 1, 2020). The Bank’s total capital amounted to RUB 99.1 billion (+3.1% compared with January 1, 2020 and +2.0% compared with April 1, 2020). As of July 1, 2020, the Bank’s Tier 1 and total capital adequacy ratios were 10.8% and 14.8% respectively.
Loan portfolio before provisions totalled RUB 417.2 billion (+3.9% compared with January 1, 2020; -3.9% compared with April 1, 2020). Loans to corporate customers represented 74.8% of the loan portfolio, loans to individuals – 25.2%. During 1H 2020, corporate loan portfolio increased by 4.5% to RUB 311.9 billion. During 1H 2020, retail loan portfolio increased by 2.2% to RUB 101.3 billion. During 1H 2020, mortgage loans grew by 2.8%, consumer loans grew by 1.1%, car loans grew by 0.8%.
Loan portfolio quality. As of July 1, 2020, the share of problem loans in the Bank’s portfolio amounted to 10.5% (9.2% as of January 1, 2020). The rate of provisions for loan impairment amounted to 9.3% (8.3% as of January 1, 2020). Provision charge for 1H 2020 amounted to RUB 5.2 billion (RUB 2.6 bn for 2Q 2020). For 1H 2020, loans in the amount of RUB 1.5 billion (RUB 0.7 bn for 2Q 2020) were written off.
1H 2020 IFRS Financial Statements are available on the Bank’s website:
https://www.bspb.ru/en/investors/financial-statements/IFRS/.