Rosbank Group consolidated results for 6 months 2016 as prepared in accordance with IFRS
In H1 2016 Rosbank Group* (further “the Group”) continued to improve its performance.
Thus, the net loss decreased to RUB 0.4 bln in H1 2016, showing a significant rebound in comparison with H2 2015 (net loss of RUB 3.3 bln). At the same time, in Q2 2016 the financial result went to the profit zone (RUB 105 mln), despite the additional expenses that the Group incurs as a result of the foreign currency mortgage portfolio refinancing. The size of these non-recurring items amounted to RUB 1.2 bln in H1 2016.
By the end of June 2016 as a result of the successful refinancing program implementation the total volume of foreign currency mortgages in the portfolio of the Group decreased by 60% compared to December 2014.
Despite the crisis market conditions, characterized by low consumption, high interest rates and rouble exchange rate volatility, the Group's activity in the Russian market largely recovered compared to 2015. In particular, an active customer base growth has resumed, the volume of lending to individuals is returning to pre-crisis levels, to legal entities – even exceeding it.
In these conditions Rosbank and its subsidiaries maintain a strong liquidity position and capital ratios that significantly exceed mandatory standards set by the regulator. International rating agencies Fitch Ratings and Moody's Investors Service confirmed the ratings of Rosbank, Rusfinance Bank and DeltaCredit Bank at the level of the sovereign rating in 2016.
Highlights in Retail business line
- The Group lending production volumes increased by 50% compared to 2015 in all major products (cash loans, mortgages and car loans).
- The Group demonstrates a higher growth than the market in consumer loan production. In H1 2016 production volumes are 22% higher than in H2 2015, as a result the Group strengthen its market positions by increasing its share to 2,5% for 6 month 2016.
- The Group keeps leading position both in mortgage and car loans among other things thanks to successfully originated loans under various state subsidy programs. During Q1 2016 DeltaCredit Bank is ranked Top-4 in mortgage production volumes (based on analytical center Rusipoteka), market share 3.5%. 5% of new cars sold during S1 2016 was financed by Rusfinance Bank.
- Steady growth of individuals liabilities is continuing. Retail deposits increased by more than 20%* during the last 12 months. Worth noting remarkable trend on sights accounts increased by cca +25%, which is fully in line with the Group’s target to develop its transactional business.
Highlights in Corporate business line
- Rosbank keeps increasing its penetration in largest corporate companies in Russia and MNCs.
- The main transactions with Tier1 clients during H1 2016 were as follows:
- PJSC Rosbank and Societe Generale acted as one of the Mandated Lead Arrangers of the pre-export finance facility for SUEK Group in total amount exceeding US$ 1 bln with an option to increase the amount up to US$ 1.3 bln.
- Rosbank together with Societe Generale acted as one of the Coordinating Mandated Lead Arrangers and Bookrunners of the loan agreement for Uralkali in the amount of US$1.2 bln with 16 international banks.
- Societe Generale, PJSC Rosbank acted as Coordinating Mandated Lead Arrangers, whi