Dmitry Olyunin comments on SG Russia financial results in Q2 2015

Despite the continuing challenging environment in the banking sector, the Q2 2015 results contribution of Rosbank Group (includes Rosbank, DeltaCredit Bank and Rusfinance) to Societe Generale International Retail Banking activity are in line with the plans of Societe Generale Group in Russia and have significantly improved compared to Q1 of this year*. During this period, NBI increased by 16%, operating expenses reduced by 7%, cost of risk decreased by 44%. The remaining high quality of the corporate banking portfolio has allowed to partially diminish reserves previously created on it. Trade Finance operations increased by 8%, continuing the growth registered over the past quarters. With the decrease of the key rate by the Bank of Russia retail customers' demand for loans is recovering, thus the production of retail loans in Rosbank increased by 37% compared to the previous quarter.


By the end of Q2 Rosbank successfully completed the transfer of its mortgage business and car loan business at dealers throughout Russia to its specialized subsidiaries DeltaCredit and Rusfinance. The positive effect of the increasing specialization strengthened Rosbank Group's position as the fourth player in the mortgage market and the second player in the car loan market. As a result of the measures taken and active participation in the car loans subsidizing state program the Group's share in the lending market for the new cars purchase reached a historically high level of 7.4%.

In 2015 Rosbank continued implementing its strategic model of the universal bank. In 2015 the key drivers for the growth are the improvement of outlets’ production capacity and increase of operational efficiency, focus on service quality, extension of product offer and risk control. In the H1 2015 we have launched a number of new products and services, including individual payroll offering, renewed banking services’ packages, ‘ROSBANK Online’ mobile application, risk-based pricing loans and others.

The important fact for our customers in Q2 2015 was the fact that Rosbank Group had been included by the Bank of Russia in the list of Russia’s 10 systemically important banks (SIBs), which is a confirmation of its high level of financial reliability and soundness. Rosbank’s and the Group’s indicators fully meet the regulatory requirements including the higher ones on capital and liquidity which are to be further introduced.

*All percentages are calculated on a like-for-like basis.