1H 2012 IFRS Results September 6, 2012
Jul 12, 2015
1H 2012 IFRS Results
September 6, 2012
Konstantin Balandin
Deputy Chairman of the Management Board
2
3
Summary – Bank Saint Petersburg at a glance
Regional leader
Focused on
North-West
Selected financial
and operational results
A leading privately-owned universal bank in St. Petersburg and the Leningrad region
St. Petersburg market share as at July 1, 2012*:
• Assets: 12.4%
• Loans: 14.4% - corporate, 4.3% - retail
• Deposits: 9.5% - corporate, 8.5% - retail
As at July 1, 2012
Client base: more than 1.2 million retail and 37.0 thousand corporate customers
38 branches and outlets (primarily in St. Petersburg), 528 ATMs
As at July 1, 2012:
15th largest bank by assets and 17th by retail deposits among the Russian banks**
Ratings: Moody’s Ba3 (Stable outlook)
Total assets: RUB 340.6 bn (USD 10.4 bn)
Total capital: RUB 46.7 bn (USD 1.4 bn)
Net income: RUB 237 mln (USD 7.2 mln)
Cost/Income ratio: 48.16%
ROAE: 1.20%
Total capital adequacy: 12.9%
2631 employees
* Association of North-West banks, Bank Saint Petersburg own estimates
** Interfax
Overview of Key Financials
In RUB bn Jan. 1, 2012 Jul. 1, 2012 YTD Jul. 1, 2011 Apr. 1, 2012 Jul. 1, 2012 q-o-q y-o-y
Total assets 330.03 340.59 +3.19% 292.06 340.70 340.59 -0.03% +16.62%
Gross Loans 231.26 244.06 +5.53% 217.96 232.11 244.06 +5.15% +11.97%
Customer Deposits* 236.06 226.86 -3.89% 212.23 224.47 226.86 +1.07% +6.89%
Total Capital 47.08 46.67 -0.86% 39.14 46.49 46.67 +0.39% +19.27%
1H 2011 1H 2012 2Q 2011 1Q 2012 2Q 2012 q-o-q y-o-y
Net Interest Income 6.79 5.96 -12.2% 3.52 2.92 3.04 +3.93% -13.69%
Net Fee and Commission
Income0.94 1.04 +10.3% 0.49 0.48 0.55 +14.86% +10.81%
Revenues** 8.45 7.08 -16.20% 5.06 3.63 3.45 -5.21% -31.88%
Net Income 4.50 0.24 -94.72% 2.40 0.12 0.11 -7.47% -95.26%
1H 2011 1H 2012 2Q 2011 1Q 2012 2Q 2012 q-o-q y-o-y
Net Interest Margin 5.07% 3.84% -1.23 PP 5.21% 3.75% 3.82% +0.07 PP -1.39 PP
Cost/Income Ratio 28.78% 48.16% +19.38 PP 30.15% 46.50% 49.92% +3.42 PP +19.77 PP
ROAE 29.80% 1.20% -28.60 PP 30.66% 1.24% 1.15% -0.09 PP -29.51 PP
* Customer accounts are calculated as a sum of customer deposits and promissory notes and bills of exchange (other debt secur ities in issue)
** Revenues calculation: gains from investment securities available for sale are excluded from revenues as one -off
4
Table of contents
I. Bank’s market position
II. Financial highlights and business overview
III. 2Q12 highlights
5
Strong Franchise
Client base, thouMarket share in St. Petersburg
as at July 1, 2012: Retail banking**
Market share in St. Petersburg
as at July 1, 2012: Corporate banking**Loans, market share as at July 1, 2012*
* Central Bank of Russia, Association of North-West banks, Bank Saint Petersburg own estimates
** Starting with April 1, 2012, the Bank changes its own methodology of the market share calculation. It is based on the correction of the St.
Petersburg market size according to the open sources data as well as the Bank’s own estimates. The figures for 2008-2012 are corrected
accordingly. 6
Table of contents
I. Bank’s market position
II. Financial highlights and business overview
III. 2Q12 highlights
7
Financial Highlights, 2011 – 1H 2012
Assets, RUB, bn
Income dynamics, RUB, mln Income and expenses data*, RUB, mln
Capital, RUB, bn
8
* Results calculation: the expenses /gains from recognition of loans granted at below market rates are included in provisions
Results for 1H 2012
Cost/income and NIM, %
Net income dynamics, RUB, mln Comments
Operating expenses, RUB, mln
9
• Revenues affected by NIM contraction
• 1H12 expenses on par with 2H11 as expected
• Provisions continue to put pressure on ROAE
26843443 3409
Financial Highlights, 2Q 2012
Assets, RUB, bn
Income dynamics, RUB, mln Income and expenses data**, RUB, mln
Capital, RUB, bn
10
* Trading Income and revenues for 3Q 2011 revised: MICEX dividends (RUB 322 mln) are excluded from the P&L and posted directly to comprehensive income
** Results calculation: the expenses /gains from recognition of loans granted at below market rates are included in provisions
Results for 2Q 2012
Cost/income and NIM, %
Net income dynamics, RUB, mln Comments
Operating expenses, RUB, mln
11
• Net Interest Income back to RUB 3+ bn per quarter
• NIM stabilized
• Expenses flat
Main Factors affected NIM in 2Q 2012
1Q 2012 NIM – 3.75%
2Q 2012 NIM – 3.82%
Average interest rate
Contribution to NIM change:
Loans and advances to customers +32 bp
Trading securities portfolio +11 bp
Due to banks -29 bp
Term retail deposits -7 bp
Total +7 bp
Average balance
Contribution to NIM change:
Loans and advances to customers +12 bp
Due to banks -18 bp
Term corporate deposits +15 bp
Term retail deposits -8 bp
Total +1 bp
12
Other factors -1 bp
Interest Rates and Assets/Liabilities Ratios
* Average assets: loans, due from banks, securities portfolio, correspondent accounts
** Average liabilities: due to banks, customer accounts including current accounts, debt securities in issue
Average interest rates on the assets side*
Average IEA and IBL (RUB bn)
Average interest rates on the liabilities side**
13
Comments
• Loans re-pricing started to catch up with deposits re-
pricing
• Loans/Deposits Ratio close to targeted 100%
Trends behind NIM stabilization
Corporate loan portfolio structure enhancement,
RUB bn
14
NIM adjustment due to trading operations
effect in 2Q12
Retail loan portfolio growth,
RUB bn
Comments
• Smaller tickets growth at the back of stable costs
• Visible growth of retail and SME portfolio
• Part of interest expenses has a trading nature
(compensated by FX income)
Due to banks Interest Expenses -RUB 144 mln
FX swap operations +RUB 144
mln
Total Interest Expenses RUB 3815
mln
(RUB 3959 mln – RUB 144 mln)
Adjusted NIM in 2Q12 3.82% 4.00%
Financial Summary (RUB), 2008 – 1H 2012
RUB bn 2008 2009 2010 2011 1H 2012
Loans and Advances to Customers 144.88 158.20 182.82 209.91 221.74
Total Assets 215.72 235.61 272.61 330.03 340.59
Customer Deposits 144.16 181.14 202.17 236.06 226.86
Total Liabilities 196.91 210.32 244.04 290.01 301.08
Total Shareholders’ Equity 18.81 25.28 28.56 40.02 39.51
Total Capital 24.23 33.22 35.87 47.08 46.67
Net profit 2.77 0.64 4.11 5.89 0.24
Net Interest margin 6.47% 5.22% 4.94% 4.78% 3.84%
Total Capital Adequacy 14.15% 15.19% 12.96% 13.92% 12.86%
Tier 1 9.69% 10.65% 9.60% 10.17% 9.33%
Cost-to-Income ratio 34.66% 24.62% 30.03% 36.12% 48.16%
Allowance for loan imp. / Gross loans 3.88% 9.14% 9.61% 9.23% 9.15%
Loans / Deposits 100.51% 87.36% 90.43% 88.92% 97.74%
ROAA 1.62% 0.28% 1.62% 1.95% 0.14%
ROAE 16.41% 2.90% 15.28% 17.16% 1.20%
15
Financial Summary (RUB), 2Q 2011 – 2Q 2012
RUB bn 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012
Loans and Advances to Customers 198.35 203.37 209.91 208.99 221.74
Total Assets 292.06 305.82 330.03 340.70 340.59
Customer Deposits 212.23 221.95 236.06 224.47 226.86
Total Liabilities 259.79 269.68 290.01 300.55 301.08
Total Shareholders’ Equity 32.27 36.14 40.02 40.15 39.51
Total Capital 39.14 43.60 47.08 46.49 46.67
Net profit 2.41 0.82 0.57 0.12 0.11
Net Interest margin 5.21% 4.98% 4.38% 3.75% 3.82%
Total Capital Adequacy 12.54% 13.45% 13.92% 13.51% 12.86%
Tier 1 9.70% 10.50% 10.17% 10.03% 9.33%
Cost-to-Income ratio 30.15% 45.85% 44.45% 46.50% 49.92%
Allowance for loan imp. / Gross loans 9.00% 9.09% 9.23% 9.96% 9.15%
Loans / Deposits 93.46% 91.63% 88.92% 93.11% 97.74%
ROAA 3.36% 1.09% 0.71% 0.15% 0.13%
ROAE 30.66% 9.52% 5.93% 1.24% 1.15%
16
Loan portfolio and quality
Loan portfolio and allowance
for loan impairment
Provision charge (RUB mln)* and
problem loans**, %Comments
Loan portfolio by sector, July 1, 2012
* Provision charge calculation: the losses / gains on loans granted at below market rates are included in provision charge
** Overdue loans and impaired not past due loans include the whole principle of loan at least one day overdue or impaired
17
• Loan portfolio growth in 1H 2012:
Before provisions: +5.5% compared with January 1, 2012
After provisions: +5.6% compared with January 1, 2012
• As at July 1, 2012:
Corporate overdue loans – 5.31% (5.68% as at January 1, 2012)
Retail overdue loans – 5.48% (6.16% as at January 1, 2012)
• RUB 2.34 bn of the loan portfolio written off in 1H 2012
Assets and liabilities structure
Assets structure, July 1, 2012 Liabilities structure, July 1, 2012
18
Trading securities portfolio
Securities portfolio*, July 1, 2012 Comments
* Securities portfolio includes trading securities and trading securities pledged under sale and repurchase agreements
19
● Conservative approach to risk:
- 90%+ of the debt securities belong to the CBR Lombard list
● Average duration is 1.1 years
● No exposure to problem European assets
Capital and funding
Capital adequacy, %
Risk-weighted assets (RWA), RUB, bn Comments
Repayment schedule for 2012-2020, USD, mln
20
171.2218.6
276.8338.1
362.9
• RAS N1 ratio (11.7% as at July 1, 2012) comfortable but
puts potential limitation on growth
• Dividends payment (RUB 818 mln) in 1H12 affected Tier
1 and total capital ratios
Table of contents
I. Bank’s market position
II. Financial highlights and business overview
III. 2Q12 highlights
21
2Q12 highlights
22
• First results of new strategy implementation:
Focus on retail:
• Retail loan portfolio growth
• Term retail deposits constitutes 52% of total term deposits
Focus on SME and mid-sized companies:
• Corporate loan portfolio diversification
• Growth in SME and mid-sized companies lending (decrease of big
tickets)
Number of credit decisions increased
New IT platform implementation generates first positive results
• NIM stabilization
• No costs growth
• Capital is still an obstacle for further growth but gives us an opportunity for internal improvements
23
Q&A SESSION