Page 66 - bne IntelliNews Country Report: Russia Dec17

8.1.8 Bank news
Sberbank, Russia’s largest lender, beat market estimates with its largest-ever quarterly net profit of Rbs 224.1bn ($3.7bn), as the state-owned giant saw individual loan growth outpace corporate lending. The record profit is 20.7 per cent higher than its previous best, set in the last quarter, and 63.6 per cent higher than the same period a year previously, and smashed market expectations of Rbs 189.8bn, according to a Reuters poll.
Damage from cybercrime in Russia is estimated at RUB600-650bn ($11bn) annually by Sberbank Stanislav Kuznetsov, as cited by Vedomosti daily on November 28. Accumulated global damage from cybercrimes currently approaches $1 trillion on the estimates of the World Economic Forum, according to Kuznetsov. The deputy head of Russia's largest state-controlled bank urged to revise the legislation and renew the technological base of the law enforcement authorities to minimize the risks of cybercrimes in Russia. In August 2017 two medium-sized banks in Russia lost about RUB800mn due to cyber attacks, Kuznetsov noted.
VTB eyes an acquisition of a controlling stake in Tyumen-based Zapsibcombank , as reported by Kommersant. According to the Russian media, the transaction may be completed by the year-end 2017. Reportedly, VTB is interested in Zapsibcombank’s strong position in its home Tyumen region concerning the retail franchise (about 10% market share) and an access to local corporate clientele. Countrywide, the target bank had a top-60 rank with nearly RUB 120bn of total assets and RUB 11bn of CET1 capital as of 1 October 2017.
Two major Russian banks, Promsvyazbank (PSB) and the Credit Bank of Moscow (CBOM) need to boost their capital before the end of this year to comply with increased capital requirements, Fitch said in a report on the country's banking industry. As of January 1, capital requirements for major Russian lenders will were increased. If a lender fails to comply with the new requirements, it does not run the risk of loosing its licence, but it will face restrictions on dividend payments.
Russian lender Tinkoff Credit Systems (TCS) saw a 75% increase in net profit in July-September , year-on-year, which will result in extra dividends, TCS said on November 20. In other news, TCS said its main owner, entrepreneur Oleg Tinkov, planned to sell a 6.6% stake in the lender, which would leave him with an approximate 48% stake in the company. "Now that the prices for our shares have recovered, the time has come to sell a part of the stake back to the market, which I hope will help further increase the liquidity of our receipts," Tinkov said. Russia’s only purely online banker, TCS Group’s strong performance stood out from Russia’s wider banking industry, shaken by the recent collapse of two major lenders, Financial Corporation Otkritie , which went bust in August, and Binbank, which followed suit a month later.
Credit Bank of Moscow (CBOM) disclosed its Q3 2017 IFRS results. The bank earned a net profit of RUB 6.1bn (+12% q/q and +85% y/y), showing ROE of 15%. The quarter returned generally stable P&L metrics, with NIM at 2.6% (Q2 2017: 2.7%) and the cost of risk at 1.5% (Q2 2017: 1.4%). Net fee revenues have again declined (-8% q/q), however remaining above the levels of 2016 (+10% y/y). The bank’s balance sheet expanded by significant RUB
66 RUSSIA Country Report December 2017 www.intellinews.com