Russian Agricultural Bank (RusAg) is a 100% state-owned bank regulated by the Bank of Russia. RusAg is one of the leading financial institutions providing lending support to Russian agribusiness.
Russian Agricultural Bank acts as a Government agent providing financial services to agribusiness and rural population, which makes up about 30% of the total population. Russian Agricultural Bank plays a key role in the implementation of the State Program on Agribusiness Development. The Bank’s development role is based on its good knowledge of the Russian agribusiness sector. RusAg offers a large product range oriented on the target market segment and its wide regional coverage.
Today, Russian Agricultural Bank’s network of 72 regional branches and about 1,200 additional offices covers the whole territory of the Russian Federation and is the second largest regional branch network in the country. RusAg’s local presence provides a significant marketing advantage and access to regional client base.
Russian Agricultural Bank provides banking services nationwide to 6.1 million clients. The Bank’s policy is to make the whole range of banking services available to its clients both in urban and rural areas.
RusAg’s gross loan portfolio rose 0.2% as compared to YE2015 totaling RUB 1.808 trillion. Corporate loans showed a slight decline of 1.8% as compared to YE2015, due to the fast-paced settlement and write-off of non-performing loans. In 2016, RusAg’s retail loans increased 10.2% up to RUB 327.1 billion, significantly outperforming the market average.
In 2016, RusAg’s deposit and customer accounts grew 32.6% reaching RUB 1.578 trillion, with corporate customer accounts rising 37.2% up to RUB 964.7 billion and retail customer accounts – 26% up to RUB 613 billion. A record growth in deposits and customer accounts resulted in significant improvement of the RusAg’s long-term liquidity ratios. Loan-to-deposit ratio dropped to 114.6% by YE2016 from 151.7% at YE2015.
Russian Agricultural Bank increased its net interest income 2.4x times up to RUB 56.5 billion as compared to RUB 23.9 billion in 2015. Driven by growing net interest income RusAg’s net interest margin widened from 1.2% to 2.4% in 2016. Net fee and commission income increased 19.1% up to RUB 14.4 billion in 2016 versus RUB 12.1 billion in 2015.
Russian Agricultural Bank is among top ten banks of the Russian Federation and ranked No. 342 among Top-1000 banks globally in terms of Tier 1 capital according to the July 2016 issue of «The Banker» magazine.
Source: Audited IFRS Financial Statements as of December 31, 2016