Stability and Working for The Future: Rosbank Group Financial Results for 6 Months 2020 according to IFRS
- 21 August
In the first half of the year ROSBANK group1 maintained a strong position on the market. The Group’s net profit for 6 months 2020 amounted to RUB 7,2 bln, increased by 21% compared to the same period of 2019.
In 1H 2020 the number of corporate active clients of ROSBANK increased by 8%. The portfolio of current accounts and term deposits of legal entities increased by 22%. The bank’s trade finance portfolio at the end of 2Q 2020 amounted to RUB 182 bln, which is 10% higher than at the end of 2019. Rosbank is the leader in terms of the volume of international factoring transactions in the first half of 2020, according to the Association of Factoring Companies. Societe Generale Group, which includes Rosbank, maintains a leading position in the debt capital markets, being included in the top 5 arrangers of Eurobond issues in Russia and the CIS during the first 6 months of 2020, as well as in the top 5 in terms of the volume of syndicated lending transactions in Russia and CIS in the first half of 2020 (according to CBonds).
In terms of retail business ROSBANK keeps the fifth place on Russian market (according FRG) in the volume of retail loan portfolio, which showed moderate growth. At the same time, Rosbank continues to increase the volume of mortgage portfolio, shows mortgage production growth and keeps the 5th place in mortgage portfolio volume. The Group maintains its leading position in the car lending market, occupying the first position terms of sales, as well as becoming the market leader in terms of the car loan portfolio. In the first half of 2020, we recorded an almost double growth in the share of online sales, compared to the same period in 2019, as well as an increase in the volume of non-credit types of income by more than 10%.
The second quarter of 2020 was heavily affected by the Covid-19 coronavirus pandemic and its economic fallout. Thus, the Group's deductions to reserves for 6 months of 2020 amounted to about 7.6 billion rubles, almost doubling the level of 6 months of 2019. The main reason for the growth was a reflection of the global economic situation amid the pandemic, which provoked a deterioration in the paying capacity of retail clients and led to a moderate increase in late payments. In addition, the Group has created an allowance for potential losses associated with uncertainties about the magnitude and duration of the Covid-19 pandemic.
«We see the first half of 2020 as successful. We managed to promptly respond to the challenges that the Covid-2019 pandemic posed to the Group and the entire financial community. We focused on accelerating the pace of business digitalization, for example, having carried out the first for us and one of the first mortgage transactions on the Russian market completely online. The stable positions of the Group are recognized by both Russian and international rating agencies. We maintain significant levels of capital adequacy and liquidity, use effective risk management to minimize the impact of external shocks. Our strategy and conservative risk policy are aimed at maintaining a stable position on the market, which will allow, in the context of the ongoing Covid-2019 pandemic, to fully comply with obligations to customers, continue to invest in the digital transformation of banking services, in human capital and improving the quality of customer service», - Ilya Polyakov, chairman of Rosbank management board.
It should be noted that the Group’s net operating income amounted to RUB 34 bln* for 6 months 2020, which is 13% higher than for the same period of the previous year. Net interest income demonstrates steady growth: in 1H 2020 increased by 6% compared to the same period of the previous year.
Operating expenses of the Group decreased by 5% for 6 months of 2020 compared to 6 months of 2019 which is explained by optimization of the Group's expense structure and improvement of the cost planning system.
Key indicators of Statement of Financial position
Key indicators of Statement of Profit and Loss
1 Rosbank, Rusfinance bank and subsidiaries