LETTER FROM THE MANAGEMENT

Dear customers, investors and partners,

Year 2020 became a dividing line for the world “before” and the world “after”. Global coronavirus pandemic affected more or less any state, company or person, changing the lifestyle we’re used to. Our main focus became the safety of our customers and employees. A series of measures aimed at both safety and uninterrupted operations was implemented.

Customer support was also a big priority for us. Imposed limitations in order to mitigate coronavirus infection spread led to decrease of revenues in SME business, as well as their employees’ income. Drop in raw materials prices and in economic activity resulted in large corporates revenues decrease. In these difficult times we’ve successfully relied upon our measured approach, which, coupled with vast management experience, allowed us to provide much-needed support to our customers and minimize negative influence triggered by the pandemic. The Bank posted RUB 10.8 bn of net income for the last year – an outstanding result.

Last year’s robust financials allowed us to fully keep our promises given to the Bank’s shareholders. In November 2020 the Bank’s shareholders took a decision to pay out 2019 dividends in full.

In the end of 2020 we’ve summed the results of three-year Strategy 2018-2020. All the initial volumes growth goals were exceeded. On the strategic horizon we were able to outperform the market, or at least be on par with it, on all key business directions. The loan portfolio grew by 28% over 2018-2020, customer accounts by 33%. It indicates that over the last three years we’ve remained a competitive and reliable partner for our customers

Last three years have also confirmed high levels of customer confidence – we’ve achieved 34% retail customer accounts growth significantly ahead of the market, with our funding costs remaining among the lowest on the market. Thus, we were able to maintain cheap funding source, remaining independent of the capital markets borrowing.

99% of corporate customers and around 60% of retail customers already are active digital platforms users. The share of digital sales amounted to 64% of total mass sales, while customer operations online share amounted to 82% of total operations volume.

Be the time the limitations were implemented, the Bank was quite well-prepared for what was to come and achieved advanced level of digitalization. Within the shortest terms we’ve made the most of services and products available online, eliminating the need for the branch visit, thereby establishing ourselves as a contemporary digital bank.

The Bank is also making strides in regional development – we’ve put on our maps two new representative offices in Krasnodar and Rostov-on-Don.

We are actively involved in our city’s activities. In 2020 we’ve reached an agreement with the Administration of Saint Petersburg, implying taking part in social projects and helping towards dissemination of the cutting-edge banking technologies, as well as active development of local SME business.

The Bank is constantly developing and improving. We are grateful to our customers, partners and investors for our mutually beneficial cooperation in the last year and are hopeful for the same in the next year as well!

Elena Ivannikova
Chairperson of the Supervisory Board

Alexander Savelyev
Chairman of the Management Board