Page 84 - RusRPTOct21

On the balance sheet, gross loans were up 1.8% m/m in July (retail and corporate goth up 1.8%) and up 9.1% YTD (9.8% adjusted for FX), with retail loans up 14.6% and corporate up 6.8%. Deposits rose 17.2% YTD (17.8% adjusted for FX), with corporate up 27.6% and retail up 4.4% on the back of a substantial increase in savings account balances, combined with a decrease in funds invested in term deposits.
On the corporate news side, Interfax reported yesterday that VTB is set to regain control over Pochta Bank via the purchase of two shares from Pochtaank's CEO, Dmitry Rudenko, which will take its stake up to 50% + 1 share.
Meanwhile, Prime has reported that VTB does not intend to purchase a stake in Otkritieank, though it is reportedly interested in the retailusiness of Citibank, Citi Group's Russian subsidiary. Citibank's retail loan portfolio stands at only 1.3% of VTB's retail portfolio.
One of Kazakhstan’s largest banks, First Heartland Jysanank, has submitted a surprise alongside the offers of Russian lenders to buy Russia’s Asian-Pacificank (APB), three anonymous sources informed Reuters. The winner is due to be announced on September 17. Russia’s central bank haseen attempting to sell off mid-sized lender APB, which has exposure to Russia’s remote far eastern region bordering China, since it was taken over as part of bailout in 2018. Otheridders include Russia’s Sovcombank, a private bank which haseen expanding, and state-run Promsvyazbank.
Qiwi has announced it has completed the sale of its 40% stake in Tochka Bank to Otkritie for RUB4.95bn. According to our estimates, Qiwi might have had some RUB10bn of net cash as of the end of 2Q21. Coupled with proceeds from the Tochka deal, this might bring its own net cash to around $200mn, which compares with the company's MCap of $539mn. We also note that our forecasts, which already capture the negative effect of the loss of a significant portion of revenues, imply that Qiwi will generate adjusted EBITDA of RUB10.2bn ($140mn under the current rate) in 2021F and RUB9.2bn ($127mn) in 2022F. This implies EV/EBITDA multiples of around 2.4x.We also project the next 12-month dividend yield at over 9%. We see Qiwi's valuation as attractive, although we concede that any rerating of the stock might require more comfort about regulatory risks and the long-term outlook. Qiwi announced the deal to sell its stake in Tochka in late July. According to Qiwi, the price of the deal could be adjusted based on Tochka's 2021 audited results, with Qiwi seeing upside risks to the announced deal value. Qiwi's total
84 RUSSIA Country Report October 2021 www.intellinews.com