OREANDA-NEWS. Fitch Ratings has published the latest edition of the 'Russian Banks Datawatch', a monthly publication of spreadsheets with key data from Russian banks' statutory accounts. The latest issue includes balance sheet figures as of 1 February 2015, as well as changes in January 2015. In addition, charts indicate changes in the last month for Russia's main state-related, privately-owned, foreign-owned and retail banks.

Fitch notes the following key developments in January 2015:

-Corporate loans increased by RUB2.2trn (6.5%) in nominal terms in January, but decreased by RUB342bn (-0.9%) after adjusting for 23% rouble depreciation against the US dollar

-Retail lending dropped by a moderate RUB46bn (-0.4%) in nominal terms, or by RUB127bn (-1.1%) adjusted for rouble depreciation. Among retail banks only Sovcombank and Tinkoff reported growth of, respectively, 2.5% and 1.3%, while most other players moderately deleveraged by 1%-4%

-Customer funding grew by RUB3.5trn (8.2%) in nominal terms, but fell slightly by RUB64bn (-0.1%) net of currency valuation effects as RUB328bn outflow from retail accounts was only partially compensated by RUB264bn inflow of corporate (excluding government entities) funding

-Banks repaid about RUB1trn of state funding in January, which had become expensive after the Central Bank of Russia (CBR) increased the key interest rate to 17% from 11.5% in December 2014 (before cutting it slightly to 15% in February 2015). This RUB1trn repayment was the result of a RUB1.6trn decrease of CBR funding offset by a RUB0.6trn increase in deposits from the Ministry of Finance, regional and federal budgets. The biggest net repayments to the CBR were by Sberbank (RUB786bn) and VTB group (RUB538bn). This trend is likely to continue unless the CBR lowers the key rate further, although utilisation of CBR funding may increase if banks are required to refinance lumpy external debt repayments of major corporates and/or the market experiences periods of higher turbulence again, as was the case in December 2014. CBR funding of the sector in foreign currency has become significant, totalling USD21bn (of which USD9.5bn was provided to Otkrytie) at 1 February 2015

-The sector reported a RUB34bn net loss in January (-6.2% annualised ROE). Alfa-bank significantly outperformed the sector with a net income of RUB30bn mainly due to FX-revaluation gains. Among state banks only Sberbank reported net income, at RUB3.7bn, while others were loss-making: VTB group had a loss of RUB21bn, Gazprombank RUB8bn and Russian Agricultural Bank RUB4bn

-Retail banks performed poorly, and most were loss-making: Home Credit reported a loss of RUB2.5bn, Orient Express RUB3.4bn, Rencredit RUB0.9bn, Sovcombank RUB1.3bn, OTP RUB0.3bn and Svyaznoy RUB0.6bn. Tinkoff was marginally profitable, while Russian Standard's RUB2.4bn net income was mainly due to a RUB1.9bn deferred tax gain

-The average total capital ratio (N1, 10% required minimum) of the 100 sample banks decreased by 54bps in January. As at end-1M15, seven banks in the sample (of those publishing capital ratios) had a total capital ratio below 11%: Ak Bars (10.7%), Bystrobank (10.7%), Bank of Moscow (10.5%), Krayinvestbank (10.4%), Moscow Industrial Bank (10.4%), Investtorgbank (10.4%) and Fondservisbank (10.4%, was put under CBR temporary administration in February). The announced state recapitalisation measures of over RUB2trn should moderately support banks' capitalisation, although these will be available primarily for larger banks.