Stability and working for the future: Rosbank Group financial results for 3 months 2021 according to IFRS
- 31 May
«The positive results achieved in Q1 2021 once again confirmed the correctness of our chosen strategy in current difficult economic situation. We have ensured the growth of the Group's net profit: in Q1 2021 it amounted to RUB 4,6 bln1, which is 15% higher than in the same period of the previous year.
Our strategy and reasonable risk management policy are aimed to maintain stable market positions, which will allow to comply with all obligations to customers, continue to invest in digital transformation of banking services, human resources and increase of customer service quality in the post-pandemic conditions of market development, based on the principles of responsible financing and sustainable development», - Ilya Polyakov, Rosbank CEO, commented.
In the first quarter of 2021 Rosbank Group demonstrated growth across all business lines.
Wholesale business demonstrated strong results, increasing its operational revenues by 15% and net income by 32% compared to the first quarter of 2020. After a significant growth in 2020, portfolio of current accounts and term deposits of legal entities continued to grow in the first quarter of 2021, increasing by 7% compared to the end of 2020, which confirms a high level of trust of our clients.
One of the focuses of Wholesale strategy is digital development and in the first quarter Rosbank continued to implement new products and solutions for its clients. Together with Diasoft a new platform for automating settlement and credit services for legal entities was created, which significantly optimizes the processes of support of credit agreements of corporate clients and reduces the time of launching new products to the market. Group also introduced a service of immediate issuance of corporate cards.
Following its commitment to sustainable development, Rosbank registered a new RUB 60 bln social and green bonds program on Moscow Exchange. ESG-related initiatives and developments of Rosbank were also confirmed by ESG ratings: in the first quarter of 2021 Rosbank was recognized as #4 Russian bank in ESG ranking by RAEX-Europe.
On the retail side, in the Q1 2021, Rosbank confidently keeps the 1st place in terms of retail loan portfolio among foreign banks. At the same time, Rosbank continues to increase the volume of mortgage loans, holding the 5th place in the market in terms of the volume of the mortgage loan portfolio. In addition, the Group is among the leaders in car lending keeping the 2nd place in the market.
In the first quarter of 2021 Rosbank finalized the merger with Rusfinance Bank in form of a branch “Rosbank Auto” to enable further improvement of business efficiency through greater synergy and increased opportunities for cross-sells.
Rosbank Group's net profit for the first quarter of 2021 demonstrated a steady growth rate compared to the same period in 2020 (+ 15%). The growth was achieved due to a significant decrease in the level of cost of risk (-57% compared to the same period in 2020) as well as a stable level of interest and commission income of the Group.
The decrease in the level of cost of risk is a result of the favorable market conditions and adaptation of the Russian economy to the consequences of COVID-19.
In 2021, the Group adheres to a targeted policy to reduce operating costs, increase efficiency and optimize the organizational model. As a result, operating expenses for the first quarter of 2021 decreased by 3% compared to the same period in 2020.
Rosbank remains one of the most reliable banks in the country, which is confirmed by its highest available credit rating provided by four rating agencies (ACRA, Expert RA, Moody’s, Fitch). In March Forbes acknowledged Rosbank as one of the three most reliable banks in Russia for the fifth year in a row.
Key indicators of Statement of Financial position
Key indicators of Statement of Profit and Loss
1Excluding fx revaluation of open currency position