Net profit of Rosbank Group amounted to 8.9 billion RUB for 9 months of 2019 according to IFRS
- 22 November
“The 3rd quarter was successful for Rosbank Group1 in terms of business dynamics and growth of key financial indicators. The Group is focused on continuous work to offer customers the best service and to improve the quality of service.
In the retail business, we continue to strengthen our position in collateral lending. In the future, car loans and mortgages will continue to be the drivers of further development of Rosbank Group's retail business. In addition, we are actively developing transactional and investment products for all customer segments. Rosbank is also one of the leaders in the efficiency of attracting customers in the segments of small and medium businesses.
We are successfully moving towards the goal of business digitalization by investing in the development of digital services. One million customers are already active users of our mobile app and online banking, 50% of savings accounts are opened online, and one in three retail customers2 during the 9 months of 2019 was attracted through digital channels.
The main strategic initiatives of the corporate business are focused on using the strengths of the Rosbank Group: maintaining business and increasing the share of "wallet" in the largest Russian companies, development of business with multinational companies, as well as diversification of client segments. In 9 months of 2019 Rosbank with SG Group showed outstanding results on the syndicated loans market, international factoring in Russia, and continues to be one of the leading players on Trade Finance market in Russia.
We look positively at the end of 2019 and expect growth in net banking income of all key business lines (compared to 2018) and, accordingly, of the entire Bank”, - Ilya Polyakov, Rosbank CEO, commented on the financial results.
Net profit of Rosbank Group for 9 months of 2019 amounted to RUB 8.9 bln increased by 1.4 % compared to the same period of 2018.
This result, in particular, is explained by the increase of net operating income from the Group's banking activities, which is 10% for 9 months of 2019 compared to 9 months of 2018. The greatest contribution to the indicator improvement was made by the increase of interest income by 11%: mainly because of the growth of interest income on loans both retail and corporate business. Net fee and Commission income increased by 6% for 9 months of 2019 compared to the same period of the previous year.
Operating expenses of the Group showed a growth of 6% for 9 months of 2019 compared to 9 months of 2018 which is comparable to the level of inflation in Russia.
Main achievements in the retail business
For 9 months of 2019, the production volume of retail loans of Rosbank group increased by 11% compared to the 9 months of 2018.
The main drivers of sales over 9 months of 2019 were car loans and mortgages, increased by 40% and 7% compared to the results of 9 months of 2018, respectively. The volume of consumer loans production stayed almost stable.
The Group keeps its market leader position in the segment of car loans production with a share of 14.6%.
Rosbank continue to adopt retail products and channels to client needs providing modern and convenient solutions:
- now our client can benefit from new Credit card with GP 120 days and opportunity to get online approval on web-site,
- new “Digital” debit card allowing client to issue debit card instantly in Rosbank online,
- we continue to develop mortgage ecosystem, providing the customers with new online services.
Main achievements in the corporate business
Rosbank continues to maintain its leading position in the segment of the largest Russian companies, focusing on the diversification of the customer base among both Russian and international companies.
During 9m of 2019, Rosbank participated in 22 commercial issues of ruble bonds, for such clients as Eurochem, Rostelecom, EDC, Severstal, Magnit, Lenta, NorNickel, Metalloinvest.
SG Group/Rosbank showed outstanding results on the syndicated loans market, proving its leading position and taking 1st place in syndicated loans ranking for Russian and CIS published by Cbonds for 1H 2019.
RB Factoring portfolio demonstrated positive dynamics, showing an increase of more than 7% compared to 9m of 2018. According to Association of Factoring companies, Rosbank remains in the 1st place in the volume of international factoring.
Rosbank continues to be one of the leading players on Trade Finance market in Russia. For the first 9 months of the year, the Bank’s Trade Finance portfolio has grown by 25% reaching a new peak of RUB 170 bln.
Rosbank has highest available credit ratings from four agencies: ACRA, Fitch, Moody’s, and RAEX.
On 18 August 2019, following Russia’s sovereign rating upgrade from BBB- to BBB, Fitch has upgraded Rosbank’s issuer default ratings (IDRs) and debt ratings by one notch (from BBB- to BBB for LT ratings, from F-3 to F-2 for ST ratings).
On 5 June 2019 RAEX (Expert RA) has confirmed the highest credit rating of Rosbank at the ruAAA level with stable outlook. Such assessment of Bank’s performance is attributable to strong market positions, robust capital buffer and liquidity position, as well as fairly high assets quality and strong corporate governance.
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). The outlook on the long-term debt and deposit ratings remains stable.
On 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.
Key indicators of Statement of Financial position
Key indicators of Statement of Profit and Loss
1Rosbank, Rusfinance Bank and their subsidiaries
2Except payroll customers