Net Profit of Rosbank Group amounted to 10.9 billion RUB for 2019 according to IFRS

    19 March
Ilya Polyakov

Rosbank CEO

ROSBANK group continues to conduct responsible business with a focus on customer needs. The rapid development of the Russian banking market is characterized by a high level of competition, and in order to maintain a stable position, banks need to maintain constant communication with customers to meet their needs and respond flexibly to them. In addition, one of the most important tasks for us is to maintain a high level of resistance to macroeconomic and social challenges.

For this purpose, in 2019 we created a solid base to achieve greater synergy and expand opportunities for cross-selling. On June 1, 2019 the reorganization procedure was completed in the form of joining JSC CB DeltaCredit with the opening of ROSBANK Dom branch. L'hermitage Wealth Management Club was created for VIP clients – an exclusive club that became a new stage in the development of private banking in ROSBANK, which provided access to the global expertise of SG Private Banking at the Russian market.

We also strive to meet the dynamic technological development of the market by participating in key projects of CBR, such as Fast Payment System, and expanding our own digital capabilities based on them. In 2019 ROSBANK, X5 Retail Group and National Payment Card System carried out the first successful payment via Fast Payment System using a dynamic QR code.

In addition, last year we continued full-scale implementation of ESG principles and plan to strengthen this direction.

Financial result

Net profit of Rosbank Group for 2019 amounted to RUB 10.9 bln decreased by 7 % compared to 2018.

The Group adhere to conservative policy of credit losses provisioning, while maintaining a consistently high quality of assets. Expenses to provisions creation in 2019 increased by 42% compared to 2018.

Net operating income from the Group's banking activities increased by 5% for 2019. The greatest contribution to the indicator improvement was made by the increase of interest income by 10%: mainly because of the growth of interest income on loans both retail and corporate business. Net fee and Commission income increased by 3% for 2019.

By the end of 2019, a smooth growth in the Group’s operating expenses was observed, amounting to 6% compared to 2018. The increase, in addition to the inflation rate, is explained by the growth of deposits base and, as a result, pay hikes to the Deposit Insurance Agency, as well as the rise of costs related to the business digitalizing as part of the transformation program.

Rosbank Group remains financially stable, has a sufficient liquidity level, and meets all capital adequacy requirements with a buffer:

  • thus, the Group's equity adequacy ratio was 13.42% as of 01.01.2020 (14.64% as of 01.01.2019), with a requirement of at least 8%; 
  • the Group's short-term liquidity ratio was 145.11% as of 01.01.2020 (146.8% as of 01.01.2019), with a requirement of at least 100%.

Transformation program

In 2019 ROSBANK launched a transformation program aimed at changing the Bank's internal processes in order to increase the efficiency of resource use, improve the quality of products and services, and accelerate the pace of bringing new services and products to the market.

Within the framework of the program, among other things, the Bank implements DevOps practices, as well as Agile methods.


In 2019 ROSBANK continued to follow the principles of responsible business conduct. The Bank actively developed an accessible environment – ATMs with built-in options to use audio assistance and  headphones, tactile keyboard, large font and high-contrast colors were introduced; alternative service channels for people with hearing disabilities were introduced (online chat); the site was adapted for the visually impaired clients (contrasting text, font size, disabling drawings , etc.).

The Bank offered investment products with a charity component to VIP clients.

ROSBANK also seeks to reduce the direct impact of its activities on the environment. In particular, the Bank was included in the project of Societe Generale group to neutralize the carbon footprint.


Rosbank has highest credit ratings from national agencies and high credit ratings from international rating agencies constrained by the Russian Country Ceiling: Fitch (BBB), Moody’s (Baa3), ACRA (AAA(RU)) and Expert RA (ruAAA). Such assessment of Bank’s performance is attributable to strong market positions, increase of profitability, high assets quality and adequate liquidity position. Also ratings reflect strong corporate governance, robust capital buffer and high assets quality.

On 19 August 2019 an international rating agency Fitch Ratings upgraded a long-term issuer default rating of Rosbank in national and foreign currency from BBB- to BBB, a short-term issuer default rating in foreign currency from F3 to F2, a long-term rating for senior unsecured bonds was upgraded from BBB- to BBB and a short-term rating for senior unsecured bonds was upgraded from F3 to F2. On 10 December 2019 Fitch upgraded the Viability Ratings of Rosbank to 'bbb-' from 'bb+'.

On 23 May 2019 Moody's Investors Service ("Moody's") upgraded the baseline credit assessment (BCA) of PJSC ROSBANK (Rosbank) to ba2 from ba3, adjusted BCA to baa3 from ba1, deposit ratings to Baa3/Prime-3 from Ba1/Not-Prime, counterparty risk ratings (CRRs) to Baa2/Prime-2 from Baa3/Prime-3 as well as senior unsecured rating and senior unsecured credit facility to Baa3 from Ba1. Concurrently, Moody's has upgraded its the Counterparty Risk Assessment (CR Assessment) to Baa2(cr)/Prime-2(cr) from Baa3(cr)/Prime-3(cr).

In 2019 Analytical Credit Rating Agency (ACRA) affirmed the highest credit rating of Rosbank Group on the level of AAA (RU) with stable outlook. Also RAEX (Expert RA) has confirmed the highest credit rating of Rosbank at the ruAAA level with stable outlook.

Banks of Rosbank Group are included to the highest group of the annual rating of the most reliable banks in Russia according to Forbes magazine. Rosbank is consistently included in the TOP-3 of the most reliable banks in Russia.




Key indicators of Statement of Financial position

Key indicators of Statement of Profit and Loss