Page 66 - RusRPTSept20

§ NIM of 3.6% with NII RUB132bn (+21% y/y; +11% q/q) – mostly
inline with forecasts, supported as overall banking sector with key rate
cuts and DIA lower expenses. Yet, loan portfolio contracted by 1% q/q.
§ Net F&C declined in 2Q20, reflecting weak activity during lockdown
with RUB24.9bn (-4% y/y; -11% q/q) – mostly inline with expectations.
§ CoR came at 1.8%, above 1.6% BCSe, below 2.0% cons-s – as one
of the main unpredictable lines. Besides, R17.2bn negative revaluation
of investment property hit P&L, if added to CoR – the print is 2.4%.
§ OpEx came strong – 7%/4% beat to BCSe and cons-s with cost
optimization as the highest priority currently. Yet, CIR came high at
49.5%, given dampened revenues.
Banking TCS Group, which operates Russia's only online bank Tinkoff, reported net profit increase of 25% year on year and 13% quarter on quarter under IFRS in 2Q20, while maintaining a solid return on equity (ROE) of 13% and beating consensus expectations on bottom line by 34%. As reported by bne IntelliNews, previously in 1Q20 TCS showed resilience despite the early challenges in overall turbulent quarter. In addition to the coronavirus (COVID-19) crisis, its shares were under pressure, as the group's founder Oleg Tinkov is facing tax fraud charges in London and had to transfer its shares into a blind trust and step back from management after he was diagnosed with leukaemia. In 2Q20 TCS continued to show strong performance, with the bottom line supported by lower cost of risk (CoR), stronger fees and commissions, as well as RUB2.9bn investment gain on the bonds portfolio, BCS Global Markets commented on August 6. Net interest income rose in line with expectations by 19% y/y and 3% q/q, supported by stable loan mix and cost of borrowing decline to 4.4%, even given the loan portfolio decline of 1% q/q, given the conservative stance on weak macro background. But TCS gained on fees above expectations at RUB5.1bn (+18% y/y; +1% q/q), due to "solid growth of retail investments revenues of 87% q/q to Rb1.6bn," BCS GM notes. In the meantime TCS has reintroduced the 2020 guidance, aiming for RUB30bn-35bn net profit (RUB42bn previously), with net loan portfolio excepted to return to steady growth in 2H20, cost of risk at 12% area and cost of borrowing at 5% area.
The Moscow Exchange (MOEX) delivered pretty strong set of results with net income of RUBb6.8bn (+15% q/q and y/y; +8.6% y/y adj for IFRS9 partial provision release) – 2%/5% beat to BCSe and consensus with fees and commission achieved another record level, beating expectations and improving revenue mix, constituting for 67% of revenue in 2Q20 (70% MOEX’ LT target). Deposits marketplace is finally to be launched, given legislation adoption, thus OpEX guidance slightly shifted to 7.0-8.5% (from 6.0-8.5% previously). Moscow Exchange released strong 2Q20 IFRS results, beating expectations and updated 2020G on OpEx.
§ F&C showed another record high, despite trading volumes dynamics normalized in 2Q20, with RUB8.0bn (+22% y/y; +1% q/q), 4% beat to BCSe and consensus. F&C was strong across the markets with Money Market F&C achieved a record result in 2Q20 of RUB2bn.
§ NII of RUB4bn (-10% y/y, +1% q/q) – 6% below BCSe and 2% beat to consensus, as key rate cuts by the CBR affected the yield, yet another RUB210mn gain was realized in 2Q20.
66 RUSSIA Country Report September 2020 www.intellinews.com