Page 77 - RusRPTDec20
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 8.1.7 ​Banks specific issues
       The Russian life insurance market maintained 4% growth to RUB320bn ($4.2bn) in 9M20​,​ ​Vedomosti​ ​daily reported citing the data from the Pan-Russian Union of Insurers (VSS). At the same time the trend on slower sales of the investment life insurance continued, with the segment down by 6%in9M20.Asreportedby​​bneIntelliNews,​ afterabriefboom, investment-grade insurance products in 2019 saw a decline​ ​due to the saturation of premium clients' segments, as well as tougher regulation of underwriting. Notably, overall the interest in life insurance has been maintained even during the coronacrisis, with high interest for long-term products observed at the market. As such, the savings life insurance policies sold 29% more, at RUB94.3bn. VVS commented to​ ​Vedomosti t​ hat three main market trends currently are low deposit rates, high volatility on the investment and currency markets, as well as shifts in consumer preferences that opt for insurance and medical protection during the pandemic. Sberbank Life Insurance remained the market leader with a 24.5% share, with the five largest players accounting for 73.4% of the market.
  8.1.8 ​Sberbank news
       Sberbank​ released 10M20/October RAS financial results. October was a record month for earnings​, given strong lending activity, further provision charge decline, but note 14% m/m OpEx growth. Ruble appreciated by 1% for the month and by 23.5% ytd, affecting financials.
§ NIM remains strong at 5.8% in October, quite resilient on the back of cost of funding decrease as well as good lending activity with a new record in mortgage issuance of RUB280bn in October. Thus, NII comprised RUB131bn (+19% y/y). 10M20 NII of RUB1,186bn (+14% y/y), also driven by strong loan growth of 18% y/y.
§ Fees showed marginal +1% m/m, yet +10% y/y and +9% y/y for 10M20 – on the back of stronger financial markets operations by clients, bank guarantees and trade finance. Inline with 2020G IFRS of “around 10%”.
§ CoR down to 1.4% in October and 2.9% for 10M20 with overdue loans mostly unchanged at 3.24%.
§ OpEx showed a large uptick with +14% m/m, but +6% y/y and +4% y/y for 10M20, that looks good with CIR at 27.3%, -5ppt y/y.
§ CAR levels were mostly affected by RUB422bn dividend payment, decreasing ratios by 1.3ppt over the month.
  77 ​RUSSIA Country Report​ December 2020 www.intellinews.com
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