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Bank Saint Petersburg 1H2012 IFRS Results

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Bank Saint Petersburg 1H2012 IFRS Results

  1. 1. 1H 2012 IFRS Results September 6, 2012
  2. 2. Konstantin BalandinDeputy Chairman of the Management Board 2
  3. 3. Summary – Bank Saint Petersburg at a glance  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% Regional leader • Loans: 14.4% - corporate, 4.3% - retail • Deposits: 9.5% - corporate, 8.5% - retail Focused on As at July 1, 2012  Client base: more than 1.2 million retail and 37.0 thousand corporate customers North-West  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) Selected financial  Total capital: RUB 46.7 bn (USD 1.4 bn)  Net income: RUB 237 mln (USD 7.2 mln)and operational results  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 3
  4. 4. Overview of Key FinancialsIn RUB bn Jan. 1, 2012 Jul. 1, 2012 YTD Jul. 1, 2011 Apr. 1, 2012 Jul. 1, 2012 q-o-q y-o-yTotal 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-yNet Interest Income 6.79 5.96 -12.2% 3.52 2.92 3.04 +3.93% -13.69%Net Fee and Commission 0.94 1.04 +10.3% 0.49 0.48 0.55 +14.86% +10.81%IncomeRevenues** 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-yNet Interest Margin 5.07% 3.84% -1.23 PP 5.21% 3.75% 3.82% +0.07 PP -1.39 PPCost/Income Ratio 28.78% 48.16% +19.38 PP 30.15% 46.50% 49.92% +3.42 PP +19.77 PPROAE 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
  5. 5. Table of contents I. Bank’s market position II. Financial highlights and business overview III. 2Q12 highlights 5
  6. 6. Strong Franchise Market share in St. Petersburg Client base, thou as at July 1, 2012: Retail banking** Market share in St. Petersburg Loans, market share as at July 1, 2012* as at July 1, 2012: Corporate banking** * 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 6 accordingly.
  7. 7. Table of contents I. Bank’s market position II. Financial highlights and business overview III. 2Q12 highlights 7
  8. 8. Financial Highlights, 2011 – 1H 2012 Assets, RUB, bn Capital, RUB, bn Income dynamics, RUB, mln Income and expenses data*, RUB, mln* Results calculation: the expenses /gains from recognition of loans granted at below market rates are included in provisions 8
  9. 9. Results for 1H 2012 Cost/income and NIM, % Operating expenses, RUB, mln 3443 3409 2684 Net income dynamics, RUB, mln Comments • Revenues affected by NIM contraction • 1H12 expenses on par with 2H11 as expected • Provisions continue to put pressure on ROAE 9
  10. 10. Financial Highlights, 2Q 2012 Assets, RUB, bn Capital, RUB, bn Income dynamics, RUB, mln Income and expenses data**, RUB, mln* 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 10
  11. 11. Results for 2Q 2012 Cost/income and NIM, % Operating expenses, RUB, mln Net income dynamics, RUB, mln Comments • Net Interest Income back to RUB 3+ bn per quarter • NIM stabilized • Expenses flat 11
  12. 12. Main Factors affected NIM in 2Q 2012 1Q 2012 NIM – 3.75%Average interest rate Average balanceContribution to NIM change: Contribution to NIM change:Loans and advances to customers +32 bpTrading securities portfolio +11 bp Loans and advances to customers +12 bpDue to banks -29 bp Due to banks -18 bpTerm retail deposits -7 bp Term corporate deposits +15 bp Term retail deposits -8 bpTotal +7 bp Total +1 bp Other factors -1 bp 2Q 2012 NIM – 3.82% 12
  13. 13. Interest Rates and Assets/Liabilities Ratios Average interest rates on the assets side* Average interest rates on the liabilities side** Average IEA and IBL (RUB bn) Comments • Loans re-pricing started to catch up with deposits re- pricing • Loans/Deposits Ratio close to targeted 100%* Average assets: loans, due from banks, securities portfolio, correspondent accounts** Average liabilities: due to banks, customer accounts including current accounts, debt securities in issue 13
  14. 14. Trends behind NIM stabilizationCorporate loan portfolio structure enhancement, Retail loan portfolio growth, RUB bn RUB bn NIM adjustment due to trading operations Comments effect in 2Q12 Due to banks Interest Expenses -RUB 144 mln • Smaller tickets growth at the back of stable costs FX swap operations +RUB 144 • Visible growth of retail and SME portfolio mln • Part of interest expenses has a trading nature Total Interest Expenses RUB 3815 (compensated by FX income) mln (RUB 3959 mln – RUB 144 mln) Adjusted NIM in 2Q12 3.82% 4.00% 14
  15. 15. Financial Summary (RUB), 2008 – 1H 2012RUB bn 2008 2009 2010 2011 1H 2012Loans and Advances to Customers 144.88 158.20 182.82 209.91 221.74Total Assets 215.72 235.61 272.61 330.03 340.59Customer Deposits 144.16 181.14 202.17 236.06 226.86Total Liabilities 196.91 210.32 244.04 290.01 301.08Total Shareholders’ Equity 18.81 25.28 28.56 40.02 39.51Total Capital 24.23 33.22 35.87 47.08 46.67Net profit 2.77 0.64 4.11 5.89 0.24Net 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
  16. 16. Financial Summary (RUB), 2Q 2011 – 2Q 2012RUB bn 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012Loans and Advances to Customers 198.35 203.37 209.91 208.99 221.74Total Assets 292.06 305.82 330.03 340.70 340.59Customer Deposits 212.23 221.95 236.06 224.47 226.86Total Liabilities 259.79 269.68 290.01 300.55 301.08Total Shareholders’ Equity 32.27 36.14 40.02 40.15 39.51Total Capital 39.14 43.60 47.08 46.49 46.67Net profit 2.41 0.82 0.57 0.12 0.11Net 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
  17. 17. Loan portfolio and quality Loan portfolio and allowance Loan portfolio by sector, July 1, 2012 for loan impairment Provision charge (RUB mln)* and Comments problem loans**, % • 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* 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
  18. 18. Assets and liabilities structure Assets structure, July 1, 2012 Liabilities structure, July 1, 2012 18
  19. 19. Trading securities portfolio Securities portfolio*, July 1, 2012 Comments ● 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* Securities portfolio includes trading securities and trading securities pledged under sale and repurchase agreements 19
  20. 20. Capital and funding Capital adequacy, % Repayment schedule for 2012-2020, USD, mln Risk-weighted assets (RWA), RUB, bn Comments • RAS N1 ratio (11.7% as at July 1, 2012) comfortable but puts potential limitation on growth 362.9 276.8 338.1 • Dividends payment (RUB 818 mln) in 1H12 affected Tier 218.6 171.2 1 and total capital ratios 20
  21. 21. Table of contents I. Bank’s market position II. Financial highlights and business overview III. 2Q12 highlights 21
  22. 22. 2Q12 highlights • 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 22
  23. 23. Q&A SESSION 23

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