Dmitry Olyunin: Rosbank net profit in Q1 2016 totaled RUB 1.9 bln according to RAS
Rosbank showed a positive financial result for the first quarter of 2016, despite the continuing challenging situation on the banking market. Net profit amounted to 1.9 billion rubles in accordance with Russian Accounting Standards (RAS), compared with a loss of 5.3 billion rubles in the first quarter of last year. Rosbank's capital standard Basel III increased by 9% and amounted to 125.2 billion rubles.
According to the results of the 1st quarter 2016 net interest income increased by 76%, while the bank's interest expenses decreased by 30% compared to the same period last year.
The volume of consumer loans issued in the 1st quarter 2016 three times higher than the volume of the issued loans for the same period last year. At the same time due to continued reduction of demand for retail loans and the transfer of the mortgage business and car lending business to specialized subsidiary banks Delta Credit and Rusfinance respectively, at the end of Q1 2016 the bank’s retail loan portfolio decreased by 24% compared to the same period last year (from 224 to 170 billion rubles).
The decline of the retail loan portfolio was largely balanced by an increase of the credit portfolio of corporate clients. In the 1st quarter of 2016 the corporate credit portfolio of Rosbank showed a 20% growth compared to the same period last year, while its volume reached 261 billion rubles. We also enjoy decrease of NPL in corporate portfolio to the level of 6% or by 34% compared to the same period last year.
As of Q1 2016, Rosbank entered TOP-3 investment banks in Cbonds arrangers’ league table for Russian bonds issues and the 2d position in the league table for market issues. In Q1 2016, Rosbank has arranged 7 issues of 6 issuers totaling RUR 20.5 bln. Rosbank’s market share is 8.42%. The list of issuers includes Absolut Bank, DeltaCredit Bank, Rusfinance Bank, SIBUR Holding, Toyota Bank, Metalloinvest. Rosbank was ranked 2d in the league table for market issues with the market share of 14.98%.
"The business model chosen by Rosbank showed high stability and resilience in the overall crisis. Since the second half of 2015, we systematically improve financial performance and in the 1st quarter of 2016 showed 1.9 billion rubles net profit. This result was achieved thanks to the growth of the loan portfolio and reducing the cost of funding following the changes in the key interest rate of the Central Bank of the Russian Federation. In terms of inflation and profitability reduction our main purpose is the management of volume growth and the business cost, "- Dmitry Olyunin, Rosbank CEO commented.
Rosbank capital is sufficient to cover all risks and reach tactical and strategic aims of business development. Solvency ratios of capital liquidity is significantly higher than CBR requirements.
As of April 1, 2016:
N1.1 (CET1 CAR) = 8.83% (min 4.5%)
N1.2 (Tier1 CAR) = 8.83% (min 6.0%)
N1.0 (Total CAR) = 14.87% (min 8.0%)
The Bank of Russia included Rosbank in the list of 10 systemically important credit institutions.
On February 2d, 2016 Fitch Ratings has affirmed Rosbank’s Long-term Issuer Default Rating (IDR) at the country ceiling level of 'BBB-' with negative outlook. Short-term foreign currency IDR is affirmed at 'F3', National Long-term rating is affirmed at 'AAA(rus)'; outlook stable. At the same time the agency has affirmed the bank’s viability rating (VR) at 'bb+'. Support Rating is affirmed at '2'. The affirmation of the Rosbank’s National Rating reflects Fitch's view that Rosbank remains among the strongest credits in Russia. On April 26 Moody's Investors Service affirmed the ratings of Rosbank.