Page 68 - RusRPTAug19

appreciating within a quarter around 2%. NIM started to recover, adding 20bp over quarter to 5.2%, still 40bp down y/y. Retail loan growth of 4.2% q/q as well as yield improvement, driven by interest rate increase in the beginning of the year were the main supportive factors. Thus, NII grew 5% q/q and 1% y/y to RUB353.1bn, mostly inline with expectations. Fees came 3%/5% below BCSe and consensus and showed just 4% y/y growth (vs mid-teens guidance), but 13% q/q. F&C weak performance is partly explained by elevated base of 2Q18 in documentary operations, excluding this factor the growth came 8.1% y/y. Full CoR (incl. revaluation of loans at FV) was just 0.2% vs 0.5% BCSe / consensus, mostly driven by release of provisions on Agrokor. Thus, total provision charge was just RUB8.8bn – 68%/72% below BCSe/consensus. Low CoR is subject for guidance revision, given Sberbank’s current expectations of ~130bp vs 55bp for 1H19. OpEx of RUB169bn +10% y/y and +11% q/q – mostly inline with BCSe and consensus. Elevated growth of opex was driven by a change of capitalization principles of IT expenses. CIR came 34.6% for 2Q19. Sberbank‘s 2Q19 results came strong 7%/9% ahead BCSe and consensus – RUB250.3bn net income and 25% ROE (+16% y/y, +10% q/q). The beat mainly came from very low CoR – just 0.2% vs 0.5% expected, driven by Agrokor debt restructuring. Besides, NIM grew by 20bp q/q on strong retail loan growth and yield improvement. Fee and opex dynamics came a bit weaker, although distorted by one-offs.
8.1.8 Bank news
Danske Bank has outlined plans to quit Russia by January next year after the Danish bank was rocked by allegations its Estonian branch was involved in a mind-boggling $230bn money laundering scandal, bne IntelliNews can reveal. In a memo to his contacts, Russia Country Manager Edvin Kornelius yesterday said “goodbye to our Moscow corporate team” as well as part of the bank’s remaining St Petersburg personnel. Kornelius said the remaining Moscow-based clients will be supported out of St Petersburg until the lender’s full closure in January next year. “Preparations for voluntarily and orderly closure goes on time with about 100 corporate customer groups remaining out of 325 six months ago,” said Kornelius, who has been in charge of the Russia operation since 2006.
Russia’s state-owned “defence bank” Promsvyazbank that was nationalised in the autumn of 2017 expects to earn RUB3bn net profit, and four years later RUB42bn, the bank said. This is the base forecast provided by the bank’s development strategy for 2019–2023, which was approved by its supervisory board on May 31. Under the optimistic scenario, the bank's profit may be significantly higher - up to RUB6bn this year and up to RUB50bn in 2023. With the pessimistic, the bank will earn RUB1.7bn and RUB33.4bn according to the bank’s plans. From 2022 Promsvyazbank intends to pay dividends, it says there. How much the bank will pay, the government will decide, said the representative of Promsvyazbank, noting that dividends could be about 30bn. The profitability of the bank’s capital in the baseline scenario in 2023 will reach 12.4% versus 1.9% this year.
The Central Bank of Russia (CBR) completed the restructuring of the Financial Corporation Otkritie and sued the founder of the bank Vadim Belyaev for the RUB290bn ($4.6bn) the regulator had to invested in bailing out of the bank, Vedomosti daily reported on July 3 citing the regulator. Otkritie was one of the so-called Garden Ring banks that got into trouble in September 2017 and were eventually taken over by the CBR. It was one of the largest of
68 RUSSIA Country Report August 2019 www.intellinews.com