Stable growth and strong positions: Rosbank Group financial results for 12 months 2020 according to IFRS
- 23 March
The results achieved in the current difficult situation for the entire economy in general and the banking sector in particular confirm the financial stability of the Rosbank Group. In 2020, Rosbank Group maintained a strong position on the market. The Group's net profit in 2020 amounted RUB 12.6 bln1, which is 2% higher than in 2019.
Aware of our systemic importance to the industry, the Group ensured continuity of operations during the period of restrictive measures related to the COVID-19 pandemic: our offices continued to operate and serve customers. At the same time, first of all we took all the necessary organizational and preventive measures in the interests of the safety and well-being of our customers, partners and employees. During the first three weeks of the pandemic, we have moved 86% of the employees working in our head office in Moscow and hubs around the country to a remote working format, and implemented remote employees hiring.
We continue to focus on digital solutions development, processes optimization, and service quality improvement. At the same time, we pay special attention to supporting our clients in order to overcome possible difficulties of the current period together
In 2020, there was a growth in the performance of all Rosbank's business lines. Corporate loan portfolio (including interbank lending) and leasing portfolio increased by 4%. Factoring portfolio increased by 37%, which allowed Rosbank to maintain its strong market positions, get 6th place in factoring market (according to the Association of Factoring Companies). Trade finance also showed strong results: trade finance portfolio increased by 27%, which is more than 3 times above the market growth. At the same time, the portfolio of current accounts and term deposits of legal entities increased by 21%, which shows clients trust and confirms the high reliability of Rosbank.
In 2020 Rosbank as a part of Societe Generale Global Transaction Banking is recognized as the best transaction bank in Eastern Europe for financial institutions by EMEA Finance magazine. The bank took a leading position in the "Best Transactional Bank for Financial Institutions in Europe and CEE" category. Rosbank Depositary was announced as the Best Provider of Custodial Services in Russia based on the results of «The Best Sub-custodian Banks Award 2020» of Global Finance magazine.
In retail business, Rosbank continues to maintain leadership positions in terms of collateral lending. In 2020 Rosbank keeps the sixth place (according FRG) in the volume of retail loan portfolio. In 2020 Rosbank increased the volume of mortgage portfolio by more than 15% and kept the 5th place in mortgage portfolio volume and 1st place among non-state banks. The Group maintains its leading position in the car lending market, occupying the second position in terms of both sales and car loan portfolio on Russian market2.
In 2020, the Rosbank decided to merge Rusfinance Bank in form of a branch “Rosbank Auto” in order to further improve the efficiency of the business through greater synergy and increased opportunities for cross-sells.
In 2020 Rosbank continued implementation of new retail products and development of service channels to provide clients with modern and convenient solutions. In 2020 share of online sales showed more than a double growth compared to 2019 due to the active development of remote services.
In 2020 Rosbank was one of the first in the Russian market to conduct a mortgage transaction completely online, including with customers located outside of Russia, also a completely remote process for car loans issue was launched.
Net operating income of Rosbank Group showed an increase for 12 months of 2020 (+8% compared to 2019) Due to the steady growth of the loan portfolio In 2020 net interest income showed stable growth - 5% compared to the previous year. The net result on financial operations amounted to RUB 4 bln, significantly exceeding the level of 2019 (an increase of more than 75%).
Operating expenses of the Group decreased by 8% compared to 12 months previous year, as a result of the Group's targeted policy to reduce costs, increase efficiency and optimize the organizational model.
Cost of risk for 2020 amounted RUB 16.3 bln, which is above double increase compared to 2019. The main reason for such growth remains the economic situation caused by the Covid-19 pandemic.
1 Excluding fx revaluation of open currency position (15.5 including fx revaluation of open currency position)
2 As of January 2021 Rusfinance bank was #1 in car loan portfolio among Russian banks (as a separate legal entity)