Net profit of Rosbank group amounted to 2.2 billion rub in Q1 2019 according to IFRS

    31 May

“The 1st quarter of 2019 was successful for ROSBANK GROUP* in terms of business metrics. The Group's net profit reached 2.2 billion RUB, increased more than one and a half times compared to the same period of 2018. We continue to focus on the development of digital products. «Digitalization» is one of the strategic directions in which we invest, as in the Russian market, the development of such conditions is critical for the successful banking business. An important event this year, which will contribute to the development of competition in the banking sector, was the creation of a System of fast payments (SFP), to which ROSBANK joined among the first. The service allows making money transfers in rubles to various banks – members of the SFP – using only mobile phone number of the recipient in round-the-clock mode without days off and holidays. Funds are credited online.

The 1st quarter was also successful for the Bank in terms of corporate business. ROSBANK's trade finance portfolio reached 140 billion RUB, increased by 38% compared to the 1st quarter of 2018. The share of ROSBANK in the market of import letters of credit increased to 12.2% in the first quarter against 5.8% in 2018. We are aimed at further development of this business and forecast good dynamics in 2019.”, - Ilya Polyakov, Rosbank CEO, commented on the financial results.

Financial result

The Net profit of Rosbank Group in the 1st quarter of 2019 increased more than one and a half times compared to the same period of 2018.

This result, in particular, is explained by the growth of net operating income from the Group's banking activities by 13% in the first quarter of 2019 compared to the first quarter of 2018. The greatest contribution to the improvement of the annual indicator was made by the growth of interest income by 19%: mainly due to the growth of interest income on loans both retail (+9%) and corporate business (+14%). The Net fee and Commission income showed a significant increase by 9 % in the first quarter of 2019 compared to the same period of the previous year.

Operating expenses of the Group show a moderate growth of 3% in the 1st quarter of 2019 compared to the 1st quarter of last year in accordance with the level of inflation in the Russia.

Main achievements in the retail business

In the 1st quarter of 2019, the volume of issuance of retail loans of Rosbank group increased by 27% compared with the 1st quarter of 2018.

The main drivers of sales in the 1st quarter of 2019 were car loans and mortgages, increased by 35% and 25% compared to the results of the 1st quarter of 2018, respectively. The volume of consumer loans increased by 16%. At the same time, the increase in the issuance of POS-loans reached 32%, which is significantly ahead of the market (market growth +9.6%).

The Group became the market leader in the segment of car loans with a share of 14.3%. In the mortgage segment, the Group continues to hold its position with a market share of 3%.

Main achievements in the corporate business

In the first quarter of 2019, ROSBANK continues to maintain its leading position in the Russian market in the service segment of the largest companies, focusing on the diversification of the customer base among both Russian and international companies.

In the first quarter, ROSBANK organized the issue of ruble bonds for the following clients - "RN Bank", "Volkswagen Bank", "Toyota Bank", "MTS", "New transportation company" for a total of more than 20 billion rubles.

RB Leasing and RB Factoring show stable positive dynamics, showing an increase of 23% and 30% compared to the same period last year, respectively.

Another priority direction of our business is the development of Commission products. Thus, in the first quarter, Commission income increased by 33% against the first quarter of 2018.

We continue to maintain the level of customer satisfaction at a high level (customer loyalty index (NPS) shows growth and remains at a high level for the second year in a row), including through the active digitalization of products and processes.

Ratings

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). The outlook on the long-term debt and deposit ratings remains stable.

24 April 2019 Analytical Credit Rating Agency (ACRA) affirmed the highest credit rating of Rosbank Group on the level of AAA (RU) by raising a standalone credit assessment of the bank up to aa+ due to the improvement of the rates within the capital adequacy factor. The forecast for the rating is “stable”, that presupposes the fact that the rating will be unchanged in the near 12-18 months with a high degree of probability.

Appendix

Key indicators of Statement of Financial position

 

Key indicators of Statement of Profit and Loss

 

* Rosbank, “DeltaCredit” bank, Rusfinance Bank and their subsidiaries

 

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