Page 76 - RusRPTJun19

Bank Saint Petersburg "look good" noted that the operating cost growth of 17% y/y was mostly inline with consensus at RUB3.6bn. The analysts maintained a Buy recommendation for bank's shares with a target price of RUB72 per share. Bank Saint Petersburg previously sold shares in 2007, 2013, and 2017. In July 2017 the bank help an SPO a 13.6% stake on MOEX at RUB53 per share.
Moscow Exchange has reported 1Q19 earnings of RUB3.1bn, down 28% y/y, but 4% ahead of the consensus, driven by stronger fees and better cost control. Excluding the pre-guided RUB2.4bn commodity market provision, the results were strong. EBTDA was up 0.6% y/y (margin +2.2pp q/q to 72%), 4% and 5% ahead of the consensus and VTBC. We see the results as strong in the context of the low volatility, and supportive of our FY19 forecasts. We thus expect a positive stock reaction. VBTC unchanged 12-month Target Price of RUB120 implies a 51% ETR; Buy reiterated.
8.2 Central Bank policy rate
There was no change to the policy rate this month, although analysts are speculating that due to the very slow economic growth and mild inflationary pressure from the VAT hike in January that the CBR could cut rates at the next policy meeting.
76 RUSSIA Country Report June 2019 www.intellinews.com