Page 100 - RusRPTSept21

guidance update are:
Loan book growth, which was at 22% YoY at the end of 2Q21 vs. the guidance of more than 12% YoY for YE21.
Net fee income growth, which comprised 27% YoY in 1H21 vs. the guidance of more than 15% YoY for FY21.
Cost of risk, which came in at 1.7% in 1H21 vs. the guidance of below 2% for FY21.
Top ten commercial bank Sovcombank reported profits up by 87% in the first half of this year to RUB24bn ($330mn) that included the results of Vostochny bank that it acquired earlier this year for the first time, the bank said in a statement on September 1.
A successful commercial up and comer, Sovcombank has been growing in recent years basing its initial business in the regions but has since become a federal level player with assets of RUB1.9 trillion ($26bn) according to its IFRS accounts.
The Bank employs 24,500 people in 2,942 offices located in 1,037 communities in 77 regions of Russia. And it serves 11.9mn customers, including 11.1mn borrowers, 600,000 depositors and 200,000 legal entities.
Vostochny Bank was acquired from the private equity fund Baring Vostok after its lead manager Michael Calvey was arrested as part of a corporate dispute with his Russian partners. Calvey was convicted and given a 5.5-year suspended sentence in August but will not serve any jail.
Vostochny is another fast growing bank that specialises in providing services in Russia’s regions. Vostochny contributed almost half (RUB1.4bn) to Sovcombank Group’s profit. All-in-all net profit for the first half of the year increased by 2.7x year-on-year.
The Bank’s assets in the first half of the year grew by 25% to RUB1.9 trillion, both due to organic growth associated with the economic recovery following the pandemic and in connection with the purchase of Vostochny Bank, Sovcombank said in a statement.
The Bank’s equity capital grew by 10% in 1H 2021 to RUB207bn and
100 RUSSIA Country Report September 2021 www.intellinews.com