FINANCIAL HIGHLIGHTS

The principal factors that influenced the Bank’s 2020 financial results included:

  • FY 2020 Net profit amounted to record-high RUB 10.8 billion (+36.9% compared with FY 2019), including RUB 4.5 bn in 4Q 2020 (+86.3% compared with 4Q 2019);
  • FY 2020 ROAE up to 12.9% (10.2% in FY 2019), 4Q 2020 ROAE up to 20.3% (12.1% in 4Q 2019);
  • Loan portfolio grew by 14.4% YTD, including +15.2% in corporate and +12.0% in retail portfolios.
Revenues structure*, RUB mln
Financial Result

NET INTEREST INCOME

The Bank’s interest income decreased by 10.4% in 2020 to RUB 43.4 bn, compared to RUB 48.5 bn in 2019. Customer lending contributed to 82.1% of the total interest income: interest income from loans and advances to customers amounted to RUB 35.6 bn. Interest income from other operations, principally from securities, decreased by 36.7%, amounting to RUB 7.8 bn in 2020, compared to RUB 12.3 bn in 2019. Overall, this interest income component still comprises an insignificant amount of 17.9%.

Interest expense decreased by 28.9%, amounting to RUB 16.7 bn in 2020, compared to RUB 23.4 bn in 2019. Interest expense on retail term deposits decreased by 22.0% and amounted to RUB 7.5 bn (45.3% of total interest expenses). Interest expenses on corporate term deposits increased by 29.1% and amounted to RUB 3.5 bn (21.2% of total interest expenses). Interest expenses on due to banks decreased by 36.4% and amounted to RUB 4.7 bn (28.4% of total interest expenses).

Net interest income increased by 9.6% to RUB 25.5 bn, compared to RUB 23.3 bn in 2019. The main factor behind the NII increase is the lending expansion in the FY 2020 with interest rates on liabilities decreasing.

NET FEE AND COMMISSION INCOME

The Bank’s fee and commission income increased by 10.8% in 2020, reaching RUB 9.9 bn, compared to RUB 8.9 bn in 2019. Plastic cards settlements (35.8% of total fee and commission income) increased by 3.1% and amounted to RUB 3.6 bn. Cash and settlement operation fees (40.6% of the total fee and commission income) increased by 11.0% to RUB 3.6 bn compared to 2019. Fees for issuing guarantees and letters of credit (15.3% of the total fee and commission income) increased by 49.0% and stood at RUB 1.5 bn.

Fee and commission expense increased by 11.4% in 2020 to RUB 2.4 bn, compared to RUB 2.2 bn in 2019. The aggregate of commissions on plastic cards settlements (including loyalty programs), securities and settlement transactions amounted to RUB 2.2 bn, or 91.3% of the total fee and commission expenses.

In 2020, the net fee and commission income increased by 10.6% to RUB 7.5 bn (RUB 6.8 bn for 2019).

TRADING INCOME RESULT

In 2020, net trading loss amounted to RUB 2.5 bn. Gains from operations with foreign currencies and derivatives amounted to RUB 2.8 bn, while losses from operations with securities amounted to RUB 0.3 bn. Results from operations in financial markets were driven by the active increase of the low-risk flow trading income share.

From 2007 onwards, Bank Saint Petersburg has been among the leaders in the most important segments of the Russian financial market and an active trader on foreign stock exchanges. The Bank is systematically included in the activity ratings of the MOEX currency derivatives market and the MOEX futures and options market. The Bank's currency futures trading volume currently represents a sizeable share of the total trading volume of the Chicago Mercantile Exchange. The Bank is also a major participant in the REPO market and a partner of leading domestic and international financial institutions. The Bank contributes to the interest rate indicators calculated by the National Securities Market Association and is a market maker for interest-bearing instruments of the Moscow Exchange.

COST EFFICIENCY

Staff costs is a major component of the Bank’s operating expenses, comprising 49.8% of all costs. Staff costs increased by 17.4% and amounted to RUB 7.6 bn.

The Bank’s expenses related to premises and equipment amounted to RUB 2.3 bn in 2020, a 7.5% increase compared to 2019.

The Bank’s other operating expenses include rental payments, administrative costs, professional services, security, transportation, delivery and other expenses. In 2020, these expenses decreased by 3.7% to RUB 5.3 bn.

Operating Expenses*, RUB mln

KEY FINANCIAL INDICATORS

The core banking margin remains at a historically high level.

Core banking revenues increased by 9.0% and amounted to RUB 33.3 bn in FY 2020. Net income amounted to RUB 10.8 bn for FY 2020. The Bank’s return on equity (ROAE) amounted to 12.9% for FY 2020 (10.2% for FY 2019).

Core banking margin dynamics
Net income dynamics*RUB mln
ROAE & ROA
Net Income dynamics

BALANCE STRUCTURE


The Bank’s assets increased by 8.4% in 2020, reaching RUB 730.2 bn, compared to RUB 673.7 bn as at January 1, 2020.

Gross loans increased by 14.4% in 2020 and stood at RUB 459.3 bn, compared to RUB 401.4 bn as at January 1, 2020. The share of loans and advances to customers comprised 57.4% of total assets.

Securities portfolio decreased by 16.9% in 2020 and amounted to RUB 82.1 bn, compared to RUB 98.7 bn as at January 1, 2020. The share of the securities portfolio comprised 11.2% of total assets.

Amounts under reverse repo increased in 2020 by 9.3% to RUB 104.3 bn, compared to RUB 95.4 bn as at January 1, 2020. The share of the amounts under reverse repo comprised 14.3% of total assets.

The volume of customer deposits (customer accounts and promissory notes and deposit certificates issued) increased in 2020 by 14.7% to RUB 479.1 bn, compared to RUB 417.6 bn as at January 1, 2020. The share of customer deposits comprised 65.6% of the liabilities and equity total.

The volume of due to banks increased in 2020 by 11.0% to RUB 141.1 bn, compared to RUB 158.6 bn as at January 1, 2020. The share of due to banks comprised 19.3% of the liabilities and equity total.

As at January 1, 2020, the share of funds attracted from capital markets was 0.4% of the liabilities and equity total, compared to 0.7% as of January 1, 2020.

Assets and liabilities structure,
January 1, 2021, RUB bn

LOAN PORTFOLIO QUALITY


Since lending constitutes the majority of the Bank’s assets, the Bank focuses on maintaining the high quality of its loan portfolio.

In 2020, the volume of loans to customers (gross loans) increased by 14.4% and stood at RUB 459.3 bn. The provision charge for FY 2020 decreased by 14.0% and amounted to RUB 9.0 bn (RUB 6.3 bn without macro factors recalculation). As at January 1, 2021, the allowance for loan impairment amounted to 8.7% of the loan portfolio (compared to 8.3% as of January 1, 2020).

As at January 1, 2021, the share of problem loans in the Bank’s portfolio (Stage 3 loans and POCI) amounted to 10.4% (compared to 9.2% as at January 1, 2020). The share of corporate problem loans amounted to 12.4% of the total corporate loans; the share of retail problem loans amounted to 4.4% of the total retail loans.

Provisions for the coverage of problem loans were 83%. In 2020, the volume of loans written off amounted to RUB 6.2 bn.

As at January 1, 2020, corporate loans comprised 74.9% of the loan portfolio, its volume increased by 15.2% in 2020 to RUB 344.0 bn. The breakdown of the Bank’s corporate portfolio by sector reflects St. Petersburg’s economic structure, which has a high proportion of construction, allowing the Bank to benefit from all the advantages of the region’s economic structure, as well as to contribute to its development.

Loan portfolio quality

In 2020, the retail loan portfolio (mortgage, car and consumer loans) increased by 11.9% and amounted to RUB 110.9 bn. As of January 1, 2021, loans to individuals amounted to RUB 115.3 bn (up 12.0% compared to January 1, 2020). The share of loans to individuals in the loan portfolio amounted to 25.1% as at January 1, 2021 (compared to 25.6% in the previous year).

Loan portfolio by sector, January 1, 2020

Retail loan portfolio dynamics, RUB bn

Cost-of-Risk dynamics

CUSTOMER DEPOSITS


The volume of customer deposits (customer accounts and promissory notes and deposit certificates issued) increased in 2020 by 14.7%, reaching RUB 479.1 bn (RUB 417.6 bn as of January 1, 2020). As of January 1, 2021, 57.6% of customer accounts belonged to individuals and 40.4% belonged to corporate customers.

Retail customer deposits increased by 10.9%, amounting RUB 276.0 bn. In 2020 corporate customer deposits increased by 20.4% to RUB 203.0 bn.

Retail term deposits decreased by 2.0% and stood at RUB 171.3 bn. During 2020, corporate term deposits went up by 10.2% to RUB 97.9 bn.

Customer deposits, RUB bn

SHAREHOLDERS EQUITY AND CAPITAL


As of January 1, 2021, the Bank’s shareholders’ equity (EFRS) stood at RUB 88.7 bn (up11.7% compared to January 1, 2020). The Bank’s total capital (RAS, Basel III) amounted to RUB 85.7 bn (up 4.8% compared to January 1, 2020). In compliance with Basel Committee requirements (RAS, Basel III), as of January 1, 2021, the Bank’s total capital adequacy stood at 13.3% and Tier 1 capital adequacy stood at 10.6%.

Capital Adequacy Ratio (RAS, BASEL III)


The Bank increases capital per share for its shareholders. As of January 1, 2021, the Bank’s book value per share has reached RUB 187.

The Bank increases capital per share for its shareholders