Net profit of Rosbank Group increased by 12 % in H1 2019 according to IFRS

    19 August
Ilya Polyakov

Rosbank CEO

In the 1st half of 2019 Rosbank Group* showed steady growth in all key financial indicators. The Group's net profit increased by 12% compared to the same period of 2018 and reached 6 billion RUB.

We grow in line with our business strategy targets. Following the key trends of the international and Russian banking sector all banks have to transform delivering to the customers more suitable products and services with high quality.

In June we successfully merged with our subsidiary bank Deltacredit, called Rosbank Dom now. We will continue to build mortgage ecosystem, providing the customers with convenient online services such as preliminary decision on the mortgage for users of the service "CIAN. Mortgage" in 2 minutes or mortgage chat-bot.

In the 1st half of 2019 Bank had achievements as well in terms of corporate business. Rosbank showed outstanding results on the syndicated loans market, keeping the 1st position of the rating in terms of volume and quantity of deals. Another priority of our business is the constant development of cash management offer. Thus, commission income increased by 20% compared to the 1st half of 2018. Rosbank continues to maintain the 3rd place in Euromoney cash management ranking of banks

*Rosbank, Rusfinance Bank and their subsidiaries

Financial result

Net profit of Rosbank Group in the 1st half of 2019 increased by 12 % 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 13% in the first half of 2019 compared to the first half of 2018. The greatest contribution to the indicator improvement was made by the increase of interest income by 14%: mainly because of the growth of interest income on loans both retail and corporate business. Net fee and Commission income significantly increased – by 13% in the first half of 2019 compared to the same period of the previous year.

Operating expenses of the Group showed a growth of 5,7% in the 1st half of 2019 compared to the 1st half of previous year which corresponds to the level of inflation in Russia.

Main achievements in the retail business

In the 1st half of 2019, the production volume of retail loans of Rosbank group increased by 16% compared to the 1st half of 2018.

The main drivers of sales in the 1st half of 2019 were car loans and mortgages, increased by 41% and 13% compared to the results of the 1st half 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 15.2%.

Retail liabilities have grown by 8% (excl. FX effect) year to date in particular thanks to increased volume of term deposit portfolio by 15% (excl. FX effect) since end of 2018.

Additionally as of today retail premium clients can benefit from extended offer of capital guaranteed investment products such as structured asset management with fixed digital coupon and new strategies of investment insurance with lookback option.

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.

In the 1st half of 2019, Rosbank participated in 15 commercial issues of ruble bonds for a total of more than 120 billion rubles, for such clients as Eurochem, Rostelecom, EDC, Severstal, Magnit. That result helped to get higher in the rating of corporate bond market – 3rd place (vs 4th in 2018)**.

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.

Corporate liabilities substantially grew by 21% (excl. FX effect) compared to the end of 2018.

The volume of trade finance portfolio as of the end of June 2019 increased by 17% compared to the end of 2018. Our market share in Import letters of credit grew up to 18% from 5,8% in 2018. We continue to maintain 6th position in Russian Trade Finance market.

RB Factoring portfolio demonstrated positive dynamics, showing an increase of more than 10% compared to the end of 2018. According to Association of Factoring companies, Rosbank remaines in the 1st place in the volume of international factoring.

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.

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


**Excluding issues under international measures

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