Following the sustainable growth strategy: Rosbank group financial results for 6 months 2021 according to IFRS
- 19 August
“In the first half of 2021 Rosbank Group, as a part of Societe Generale, continued to strengthen its business in Russia by demonstrating solid results, both from a financial standpoint and in terms of socially-oriented projects, which are essential for us.
As a promoter of sustainable development values on the Russian market, we have not only helped Russian companies to attract financing in accordance with ESG principles, but have also tried to raise awareness of the community about the importance of this issue. In this regard, we held the joint conference of Rosbank and Kommersant, aimed at drawing attention to various ESG topics, attended by more than 1000 representatives of business and media, and supported the organization of the discussion session “Different people? Who really changes our lives…”, which was dedicated to the role of the inclusion in the society and business development and opened the second day of the St. Petersburg International Economic Forum 2021.
We positively assess banking sector developments as the economy recovers and overcomes the consequences of the pandemic, and observe the strengthening of market trends that have already been incorporated into our long-term strategy as key pillars of development: principles of client-centricity, sustainable development and continuous efficiency improvement. Thanks to these, we have once again demonstrated positive dynamics of the financial result: the Group's net profit according to IFRS amounted to RUB 10 bln with 38% increase compared to the same period of 2020”, Ilya Polyakov, Chairman of the Board of Rosbank, commented.
In the first half of 2021 Rosbank Group demonstrated the growth in all major business lines. Corporate business continued to strengthen its positions: portfolio of current accounts and term deposits of legal entities increased by 12% compared to the end of 2020 and exceeded RUB 650 bln, which confirms the status of Rosbank as a reliable and convenient bank for transactional business. In addition, the Bank retains its leading position on the retail market, increasing its retail loan portfolio by 6% (to RUB 569 bln), remaining the largest international bank in terms of retail loan portfolio. Rosbank remains one of the leaders on the secured lending market for individuals, where the Group holds the 2nd place in terms of the volume of auto loans with more than 11% market share, as well as 6th place in terms of the volume of the mortgage loan portfolio (according to FRG).
Rosbank Group's net profit for the first six months of 2021 amounted to RUB 10 bln, with 38% increase compared to the same period of 2020. Despite the decrease in the financial transactions result by more than half, Rosbank managed to maintain operating income level by increasing its net interest income by 3% and net commission income by 13% thanks to its stable business model. Another factor of net income growth was a decreased cost of risk (-75% till RUB 1.9 bln) on the back of Russian economy’s restoration after consequences of COVID-19.
High quality customer service is one of the key strategic priorities of the Bank. Achievements in this dimension were once again confirmed by the expert community with a number of awards in both the retail and corporate segments. Thus, Rosbank Securities Services was once again recognized as the best in the region of Central and Eastern Europe by Global Custodian magazine, and the mobile app for legal entities “Rosbank Business” was recognized as the best at the digital award ceremony Tagline Awards 2020-2021. Moreover, Rosbank became a laureate of CX World Аwards 2020/2021 in the nominations “Customer-Focused Corporate Culture” and “Innovations in CX”. The current experience of Rosbank in building a customer-centric corporate culture was commended by the jury of the CX World Аwards.
Another key strategic dimension of Rosbank is sustainable development. Societe Generale, including Rosbank, acted as one of the sustainable development coordinators in the largest syndicated loan for Uralkali in Russia and CIS, linked to sustainable development indicators. In May 2021 Rosbank acted as one of the coordinators in debut placement of “green” bonds of Moscow with special purpose – financing of ecological city projects. For 4th year Bank continues entrepreneurs’ support in the sphere of inclusion, through the project “Start differently”, which is helping social enterprises and nonprofit organizations. All together this led to acknowledgment of Rosbank as one of the ESG leaders – we hold 4th place among Russian banks in EGG Ranking of Russian companies from RAEX Europe.
Rosbank remains one of the most reliable banks in the country, which is confirmed by its highest available credit ratings on par with sovereign rating of the Russian Federation provided by four rating agencies (ACRA, Expert RA, Moody’s, Fitch).
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