Bank Saint Petersburg Summarized Performance for 9M 2010 under RAS
OREANDA-NEWS. October 28, 2010.
Alexander Savelyev, the Chairman of the Management Board, comments:
“The Bank’s 9M 2010 results generally fall in line with our expectations. In 3Q 2010, our loan portfolio grew significantly, which we consider a very good result proving the Bank’s capability to grow in spite of the accelerating competition in the sector. We are sure that 3Q 2010 is the last period with high provisions under RAS. In October, Moody’s has changed the outlook on the Bank’s ratings to stable from negative. The rating action reflects recently stabilized asset quality and gradual relieving of the loan loss provision burden. We expect our net profit for FY 2010 to exceed the net profit for FY 2009”, reported the press-centre of Bank Saint Petersburg.
Financial highlights for 9M 2010 under RAS
- Loan portfolio increased by 13.5% to RUB 188.4 bn;
- Net Interest Income for 9M 2010 increased by 17.0% compared with 9M 2009 and mounted to RUB 8.9 billion;
- Net Fee and Commission Income increased by 46.4% compared with 9M 2009 and amounted to RUB 1.1 billion;
- Income Before Tax increased by 22.7% compared with 9M 2009 and amounted to RUB 1.5 billion (RUB 360.5 million for 3Q 2010).
As at April 1, 2010, Bank Saint Petersburg was ranked 14th in terms of retail deposits and 16th in terms of assets among the Russian banks (Interfax ranking). As at October 1, 2010, the number of cards issued by the Bank exceeded 689 thousand; the Bank’s card network comprised of 450 ATMs. Today, the Bank provides services for over than 1 million individuals and 35 thousand corporates. As at October 1, 2010, Internet-Bank was actively used by 71 thousand clients.
Among the latest most significant events is the RUB 5 billion domestic bond placement. Based upon the book building results, the Bank decided to set the coupon rate on the bonds at 7.5% p. a.; the issue terms imply a 1.5-year put option. Over the course of book building, 64 orders were submitted while overall demand amounted to RUB 11 billion.
On October 12, 2010, Moody’s Investors Service has changed the outlook on the D- bank financial strength rating and Ba3 long-term global foreign currency deposit rating to stable from negative. The outlook on Bank’s senior unsecured debt rating of Ba3 and the Bank’s subordinated debt rating of B1 was also changed to stable from negative.
During 9 months 2010 Bank’s assets increased by 4.1% to RUB 249.1 billion compared with RUB 239.2 billion as at January 1, 2010.
Bank’s total capital calculated under the Bank of Russia methodology amounted to RUB 32.8 billion (-3.5 % compared with January 1, 2010). As a result the capital adequacy as at October 1, 2010 amounted to 13.3% with the regulatory ratio of 10%.
Net Interest Income for 9M 2010 improved by 17.0% compared with the 9M 2009 result to RUB 8.9 billion. Net interest income for 3Q 2010 amounted to RUB 2.9 billion (-1.3% compared with 3Q 2009). Net Fee and Commission Income for 9M 2010 increased by 46.6% compared with 9M 2010 and amounted with RUB 1.1 billion; net fee and commission income for 3Q 2010 amounted to RUB 320.3 million (-1.5% compared with 3Q 2009). Profit before tax for 9M 2010 amounted to RUB 1.5 million (+22.7% compared to 9M 2009). Profit before tax for 3Q 2010 amounted to RUB 360.5 million (+36.5% compared with 3Q 2009). Net income for 9M 2010 amounted to RUB 181.8 million (-71.2% compared with 9M 2009); the decrease mainly resulted from the expenses for the provisions (RUB 593.5 million) created to cover VAT, which will arise when the Bank’s new building will be put on the Bank’s balance sheet.
Liabilities. Customer accounts amounted to RUB 191.8 billion (+3.3% compared with January 1, 2010; +4.0 compared with July 1, 2010). As at October 1, 2010, the corporate customer accounts amounted to RUB 126.6 billion (+0.1% compared with January 1, 2010; +5.6% compared with July 1, 2010). Retail customer accounts amounted to RUB 65.2 billion (+10.3% compared to January 1, 2010; +1.0% compared with July 1, 2010).
Loan portfolio. The loan portfolio grew by 13.5% to RUB 188.4 billion from RUB 166.0 billion as at January 1, 2010; most intensive growth is attributed to 3Q 2010. Provisions amounted to RUB 18.5 billion (+37.3% compared with January 1, 2010; +10.4% compared with July 1, 2010). In 3Q 2010, the provision charge remained at the level of 2Q 2010 and amounted to RUB 1.9 billion; at the same time the level of the overdue loans decreased: as at October 1, 2010, the share of the overdue loans amounted to 4.88% (4.61% as at January 1, 2010; 5.64% as at April 1, 2010; 5.94% as at July 1, 2010). As a result the level of coverage of the overdue loans by provisions increased to 201.8%.
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