BALANCE STRUCTURE


The Bank’s assets increased by 11.0% in 2018, reaching RUB 673.4 bn, compared to RUB 606.9 bn as at January 1, 2018.

Gross loans increased by 4.9% in 2018 and stood at RUB 375.3 bn, compared to RUB 357.7 bn as at January 1, 2018. The share of loans and advances to customers comprised 50.3% of total assets.

Securities portfolio increased by 21.2% in 2018 and amounted to RUB 137.4 bn, compared to RUB 113.4 bn as at January 1, 2018. The share of the securities portfolio comprised 20.4% of total assets.

Amounts under reverse repo increased in 2018 by 29.9% to RUB 88.1 bn, compared to RUB 67.8 bn as at January 1, 2018. The share of the amounts under reverse repo comprised 13.1% of total assets.

The volume of customer deposits (customer accounts and promissory notes and deposit certificates issued) increased in 2018 by 15.2% to RUB 414.8 bn, compared to RUB 360.2 bn as at January 1, 2018. The share of customer deposits comprised 61.6% of the liabilities and equity total.

The volume of due to banks decreased in 2018 by 0.7% to RUB 147.8 bn, compared to RUB 148.9 bn as at January 1, 2018. The share of due to banks comprised 22.0% of the liabilities and equity total.

As at January 1, 2019, the share of funds attracted from capital markets was 2.3% of the liabilities and equity total, compared to 1.5% as of January 1, 2018.

Assets and liabilities structure,
January 1, 2019, RUB bn

LOAN PORTFOLIO QUALITY

Since lending constitutes the majority of the Bank’s assets, the Bank focuses on maintaining the high quality of its loan portfolio.

In 2018, the volume of loans to customers (gross loans) increased by 4.9% and stood at RUB 375.3 bn. The provision charge for FY 2018 decreased by 19.4% and amounted to RUB 7.7 bn. As at January 1, 2019, the allowance for loan impairment amounted to 9.7% of the loan portfolio (compared to 11.0% as of January 1, 2018).

Loan portfolio quality

As at January 1, 2019, the share of problem loans in the Bank’s portfolio (Stage 3 loans and POCI) amounted to 10.8% (compared to 14.3% as at January 1, 2018). The share of corporate problem loans amounted to 12.7% of the total corporate loans; the share of retail problem loans amounted to 4.7% of the total retail loans.

Provisions for the coverage of problem loans were 90%. In 2018, the volume of loans written off amounted to RUB 8.0 bn.

Provision charge and Cost-of-Risk

As at January 1, 2019, corporate loans comprised 76.1% of the loan portfolio, the volume of which decreased by 1.3% in 2018 to RUB 285.5 bn. The breakdown of the Bank’s corporate portfolio by sector reflects St. Petersburg’s economic structure, which has a high proportion of construction, real estate, trade and production, allowing the Bank to benefit from all the advantages of the region’s economic structure, as well as to contribute to its development.

Loan portfolio by sector, January 1, 2019



In 2018, the retail loan portfolio (mortgage, car and consumer loans) increased by 18.5% and amounted to RUB 84.4 bn. As of January 1, 2019, loans to individuals amounted to RUB 89.7 bn (up 18.4% compared to January 1, 2018). The share of loans to individuals in the loan portfolio amounted to 23.9% as at January 1, 2019 (compared to 21.2% in the previous year).

Retail loan portfolio dynamics, RUB bn

CUSTOMER DEPOSITS


The volume of customer deposits (customer accounts and promissory notes and deposit certificates issued) increased in 2018 by 15.1%, reaching RUB 414.8 bn (RUB 360.2 bn as of January 1, 2018). As of January 1, 2019, 60.1% of customer accounts belonged to individuals and 39.9% belonged to corporate customers.

Retail customer deposits increased by 21.2%, amounting RUB 249.1 bn. In 2018 сorporate customer deposits increased by 7.1% to RUB 165.7 bn.

Retail term deposits went up by 19.7% and stood at RUB 183.4 bn. During 2018, corporate term deposits went up by 6.3% to RUB 96.2 bn.

Customer deposits, RUB bn

SHAREHOLDERS EQUITY AND CAPITAL


As of January 1, 2019, the Bank’s shareholders’ equity stood at RUB 71.5 bn (up 8.6% compared to January 1, 2018). The Bank’s total capital amounted to RUB 91.8 bn (up 3.2% compared to January 1, 2018). The capital growth was mainly driven by record net income of RUB 9.0 bn. In compliance with Basel Committee requirements, as of January 1, 2019, the Bank’s total capital adequacy stood at 17.2% and Tier 1 capital adequacy stood at 13.4%.

Capital Adequacy Ratio