Page 5 - bne magazine September 2021_20210901

bne September 2021 Companies & Markets I 5
Highest in history
Chairman of the management board of Bank Otkritie Mikhail Zadornov said: “For the first six months of 2021, Otkritie reported a net profit of RUB38bn – the highest half-year result in the Group’s recent history. The Group’s return on tangible equity (ROTE) for the period stood at 19%.”
Citing improvements in operating efficiency, Zadornov went on to say “These results were achieved thanks to growth of Otkritie’s core banking income, which increased by 39% y/y and accounted for more than 70% of operating income. The results were also positively impacted by a reduction in the cost of risk, as well as continued stability in the quality of the loan portfolio and high loan loss provision coverage.”
Bank Otkritie has returned strongly since its 2017 collapse and subsequent bailout by the central bank, cleaning up its balance sheet by ridding itself of toxic assets.
The bank’s profit of RUB38bn ($282mn) for the first half of this year is an increase of 2.6x y/y. Return on tangible equity (ROTE), rose from 8.3% for 1H20 to 18.9% in 1H21 driven by rapid growth of regular banking income.
The group’s revenue (operating income before impairment of assets) for 1H21 increased to RUB100bn, up by 23% y/y. Operating expenses grew by 6%, resulting in a reduction of the cost-to-income ratio (CIR) from 59% in 1H 2020 to 51%
Yukos shareholders claim $5bn appeal award from Russia
bne IntelliNews
The Permanent Court of Arbitration in The Hague has awarded Yukos Capital $5bn in compensation in its case against Russia, including interest and legal costs, RBC business portal reported on July 29 citing an announcement from the shareholders of the dismantled Russian oil giant Yukos.
Reportedly, the case concerns the loans between Yukos Capital and Yukos, and is separate from the over $50bn case being pursued by former shareholders of Yukos, a more than decade- old legal battle followed by bne IntelliNews.
Initially Yukos Capital claimed $13bn in damages in the "second wave" of cases against Russia that followed the first
in 1H21. In addition to rising costs, the cost of risk (COR) was 0.5% for 1H21, a significant decrease y/y from 1.6% in 1H 2020.
According to the bank’s own balance sheet, the Group’s total assets grew by 6% and reached RUB3,684bn as of June 30, 2021, with working assets comprising RUB2,552bn, or 69% of the total, the bank said in a statement.
The gross loan portfolio grew by 11% to RUB1,900bn as of June 30, 2021, mainly due to significant growth of lending to individuals and SMEs.
The group increased its volume of loans granted to SME borrowers in 1H 2021, growing by 65% year-on-year to RUB81bn. The number of active SME customers of Otkritie bank and Tochka bank reached 528,000 as of June 30, 2021.
Customer deposits and accounts are the core source of the group’s funding structure, accounting for 66% of total liabilities or RUB2,086bn as of June 30, 2021, up by 6% in 1H 2021.
The total capital adequacy ratio (Basel III) as of June 30, 2021, amounted to 14.5% (15.3% as of December 31, 2020) due to continuing growth of the group’s business and risk weighted assets (RWA). RWA and regulatory capital grew by 10% and 4% to RUB 3.1 trillion and RUB452bn as of June 30, 2021, the bank reported.
A former Yukos building in Moscow.
cases in Dutch courts. Yukos Capital claims that loans issued to Yukos and its subsidiaries had not been repaid after the bankruptcy and the liquidation of the private oil major.
Yukos was once Russia’s biggest oil producer and briefly its most valuable company, having accumulated a number of major Siberian oilfields during privatisation deals in the 1990s, including the controversial loans-for-shares scheme. The company’s fortunes changed in 2003, when the government accused it of owing $27bn in back taxes. In October of that year its owner Mikhail Khodorkovsky, once Russia’s richest man, was arrested on charges of fraud and put in prison.
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