Dmitry Olyunin: We closed the year 2015 with positive financial results
According to the monthly balance sheet as at 31.12.2015 under Russian accounting standards (RAS) Rosbank capital under Basel III was RUB 126.9bn, up by 15% compared to the previous year. The Bank's financial result for 2015 totaled RUB 3.6m.
The volatility of the economic situation influenced significantly the volume of retail products sales in 2015. The retail loan portfolio volume amounted to RUB 182bn, down -26% compared to December 2014, due to amortization of the current loan portfolio and the technical transfer of competence centers for mortgages and car loans to our specialized subsidiaries, DeltaCredit and Rusfinance Bank. The successful implementation of the transformation project and the development of synergies between the banks have already had a positive impact: The group is ranked #2 in Russian car loans market, and #3 in mortgage loans (Source: Banki.ru ratings, December 2015).
At the same time the corporate loan portfolio volume amounted to RUB 274bn, up by 12% compared to December 2014, and the level of non-performing loans in the corporate portfolio decreased by 25% to 6%. Due to the increase in the corporate loan portfolio and volume growth in capital market operations the bank has been able to grow net interest income by 4% compared to 2014.
The volume of customer deposits reached RUB 492 bln, up by 10% compared to the previous year (RUB 449bn at end 2014):
- the volume of retail customer deposits increased by 18%, amounting to RUB 192 bn,
- the volume of corporate customer deposits increased by 5%, amounting to RUB 300 bn, with growth mainly in current accounts.
Thanks to strong deposit collection, the bank has been able to fully implement the self-funding strategy that was begun in 2012 and confirmed by the Societe Generale Group in 2014.
While the cost of funding increased substantially following the market turmoil at the end of 2014, resulting in a +54% increase in interest expenses, funding costs have decreased over the course of 2015, following CBR key interest rate cuts, e.g. the average rate of retail ruble term deposits decreased by 2% and the average rate of corporate ruble term deposits decreased by 5% in Q4 vs Q1 2015.
Operational expenses decreased in 2015 by 6% due to the strict cost control environment.
Capital adequacy ratios under preliminary calculations as of January 1, 2016 were:
- N1.1 (CET1 CAR) – 8.51% (minimum adequacy level, required by the Central Bank of Russia at 5%)
- N1.2 (Tier1 CAR) – 8.51% (minimum adequacy level, required by the Central Bank of Russia at 5.5%)
- N1.0 (Total CAR) – 15.33% (minimum adequacy level, required by the Central Bank of Russia at 10.0%, considering Deposit Insurance Regulation).
Rosbank’s CEO Dmitry Olyunin commented:
«Despite the still challenging situation in the Russian economy and the banking sector, we closed the year 2015 with positive financial results. These achievements are completely in line with our goals: Controlled growth in our priority areas of business, risk monitoring and cost control. We have focused on the further development of transactional banking and a full range client services.
Our fee revenues increased by 6% in 2015, mainly driven by volume growth in trade finance and settlement operations, while our comprehensive approach to client service in the corporate business line made possible the 12% increase in our corporate loan portfolio, with a simultaneous reduction by one quarter in the proportion of non-performing loans.
Rosbank’s solvency and liquidity ratios are completely in line with the regulations and significantly higher than CBR requirements. In 2016 we will continue to develop key-business segments to reach our strategic targets.»