IFRS Financial Statements

Russian Agricultural Bank announces its 9M 2016 IFRS results

Russian Agricultural Bank (the Group, RusAg) announces its interim condensed consolidated financial results for 9M 2016 under International Financial Reporting Standards (IFRS).

In the reporting period, the Group worked towards building a high quality loan portfolio, in particular by issuing new loans to agribusiness and other priority sectors, expanding its funding base, and maintaining strong capital adequacy ratios.

As at 30 September 2016, RusAg’s gross loans amounted to RUB 1.826 trillion expanding by 1.1% from YE 2015. Retail loans grew by 8.1% up to RUB 320.8 billion. This was mainly driven by an increase in mortgage and consumer lending. A sustainable growth of retail loans was underpinned by higher consumer demand supported by gradual stabilization of macroeconomic conditions in overall terms and also by the state subsidized mortgage lending program.

RusAg’s corporate loan portfolio stayed almost flat as compared to YE 2015 (RUB 1.5 trillion). Additionally, in the reporting period the Bank increased lending to the prioritized economic sectors in line with the commitments under of the Agreement with the State Corporation ‘Deposit Insurance Agency’ (the DIA).

In 9M 2016, RusAg’s assets rose 5.2% as compared to YE 2015 and exceeded RUB 2.470 trillion.

In 9M 2016, the Group’s customer accounts being the core funding source grew 27.8% and amounted to RUB 1.521 trillion. Corporate customer accounts increased 35.2% up to RUB 950.6 billion, retail accounts – 17.2% up to RUB 570.1 billion. RusAg worked towards building a stable and diversified funding base by developing modern client services with a focus on the high quality of its product offering. These steps contributed to a further increase in the share of customer accounts in total liabilities, which went up from 55% at YE 2015 to 66% as at 30 September 2016.

The growing deposits and customer accounts secured a gradual substitution of borrowings earlier raised in the international capital markets. At the same time, the Group worked to reduce its reliance on international wholesale funding and attract cheaper funding sources. To achieve this, in early July 2016 the Group exercised the call option to redeem its subordinated USD 800 million Eurobond before maturity. Overall, in 2016, the Group repaid an equivalent of RUB 96 billion due under its international debt issues. In 9M 2016, the share of international debts in total liabilities went down to 16.8% from 24.4%.

In 9M 2016, the Bank decreased its borrowings from the Bank of Russia by 43% - from RUB 41.7 billion at YE 2015 down to RUB 23.8 billion.

In 9M 2016, RusAg grew its income at a high rate while efficiently managing costs. Interest and fee and commission income rose 26.6% year-on-year. In 9M 2016, the Group increased its net interest income threefold up to RUB 42.8 billion as compared to RUB 14.9 billion in the same period of 2015. On the back of net interest income growth RusAg’s net interest margin rose from 1% to 2.5% in 9M 2016 year-on-year.

The expanding client base and transaction business which involved a full-scale rollout and replication of modern banking technologies across the branch network contributed to a sustainable upward dynamics of the Bank’s fee and commission income. Net fee and commission income increased 18.4% - to RUB 10.2 billion in 9M 2016 versus RUB 8.6 billion in 9M 2015.

The Group’s cost-to-income ratio (operating expenses divided by net operating income before provisions) has significantly improved from 106.6% in 9M 2015 down to 57.6% in 9M 2016.

As a result of consistent steps to maintain the loan book quality against the background of a mild stabilization of macroeconomic environment, the Group in the reporting period decreased charges for loan impairment provisions down to RUB 59.2 billion from 69.4 billion a year earlier. This resulted in an improvement of the Group’s bottom-line performance. Net loss for the period decreased by half from RUB 67.9 billion in 9M 2015 to RUB 35.1 billion in 9M 2016.

In the reporting period, RusAg maintained a strong capital adequacy. The Group accumulated a comfortable capital cushion thanks to both a direct capital replenishment worth RUB 8 billion made in April 2016 by the Government and the capital market instruments compliant with the criteria for inclusion in Tier 1 capital, which were introduced and for the first time ever offered to the domestic market by the Group. In July and October 2016, RusAg placed local perpetual subordinated bonds totaling RUB 15 billion. Capital adequacy ratio (N1.0) at 1 October 2016 stood at 16.02%.

The Group will further work towards expanding lending to priority economic sectors while retaining an undisputed leadership in servicing agribusiness. RusAg will keep a special focus on ensuring fast-paced import substitution and the country’s food independence.

Russian Agricultural Bank announces its 1H 2016 IFRS results

Russian Agricultural Bank (RusAg) announces its interim condensed consolidated financial results for 1H 2016 under International Financial Reporting Standards (IFRS).

In 1H 2016, the Bank’s interest and fee and commission income reached an all-time high totaling RUB 127.7 billion.

Backed by a gradual recovery of interest margin during 1H 2016, facilitated by the easing of the Bank of Russia’s monetary policy and optimization of the Bank’s funding costs, RusAg grew its net interest income fourfold up to RUB 26.7 billion from RUB 7 billion in 1H 2015. Net interest margin rose from 0.8% in 1H2015 to 2.3% in 1H 2016.

Transaction business development, alongside points-of-sale upgrading and customer service quality enhancement contributed to a significant growth of the Bank’s fee and commission income. The most substantial growth in fees and commissions was generated by cash and settlement services, insurance products sales, guarantee issuance and bank card transactions. RusAg’s net fee and commission income increased 28% - to RUB 6.6 billion in 1H 2016 against RUB 5.2 billion in 1H 2015.

In 1H 2016, the Bank’s assets rose 3.1% (by RUB 72 billion) as compared to YE2015 and exceeded RUB 2.42 trillion.

The Bank substantially increased new loan issuance to its target industries – agribusiness and related sectors. In January – June 2016, the Bank extended more than 267,000 loans under the State Program for Agribusiness Development and Regulation of Farm Produce, Raw Materials and Foodstuffs Markets for 2013-2020 totaling RUB 389 billion, which is twice as much as in 1H 2015. Additionally, the Bank fulfilled its commitments to increase lending to the economic sectors prioritized by the Government under of the Agreement with the State Corporation ‘Deposit Insurance Agency’ (the DIA).

In 1H 2016, the Bank continued to actively grow its corporate and retail customer accounts with a view to diversifying the Bank’s liabilities, cutting funding costs and gradually substituting the borrowings earlier raised on the international capital markets. In the reporting period, customer accounts increased 18.2% to RUB 1.407 trillion. Corporate customer accounts grew 21.9% to RUB 857 billion, retail accounts – 12.8% to RUB 549 billion. The share of customer accounts in total liabilities grew to 63% from 55% at YE2015.

In 1H 2016, the Bank decreased its borrowings from the Bank of Russia by 48.8% - from RUB 41.7 billion at YE2015 down to RUB 21.4 billion at 30 June 2016.

Further improvements in customer relationship management and cost optimization helped the Bank to secure a Cost-to-income ratio of 58.3%.

In 1H 2016, in view of positive signs in the sector and favourable conditions in agribusiness markets, RusAg engaged in clearing up its balance sheet from problem assets. Charges for loan impairment provisions, related to these procedures, amounted to RUB 40.8 billion. Combined with a gradual margin recovery to 2014 levels, this led to a loss for the period in the amount of RUB 25.3 billion. However, compared to 1H 2015 this figure went down almost twice (against RUB 45.4 billion).

While creating its loan impairment provisions in the appropriate amounts, RusAg maintains a strong capital adequacy. Capital adequacy ratio (N1.0) at 01.07.2016 stood at 16.7% versus 16.3% at YE2015.

In general terms, in 1H 2016 Russian Agricultural Bank was successful in providing financial support to Russian agribusiness taking into account the Government’s target to ensure fast-paced import substitution and also increased lending to other priority economic sectors as part of the Agreement with the DIA. At the same time, the Bank continued its efforts to increase operational efficiency and loan portfolio quality. 

Russian Agricultural Bank announces its 1Q 2016 IFRS results

Russian Agricultural Bank (RusAg) announces its interim condensed consolidated financial results for 3M 2016 according to International Financial Reporting Standards (IFRS).

During 1Q 2016, amid gradual stabilization of the economic environment and the financial market, the Bank has ensured loan growth and increase in customer accounts. RusAg’s loan portfolio increased RUB 16.6 billion (+1%) in 1Q 2016 and amounted to RUB 1.821 trillion before provisions for loan impairment. Corporate loans grew RUB 10.5 billion (+0,7%) and reached RUB 1.519 trillion, retail loans - RUB 6 billion (+2%) – to RUB 302.9 billion.

The Bank’s assets increased 4.4% (by RUB 102.7 billion) and amounted to RUB 2.451 trillion as of 1Q 2016.

In 1Q 2016, the Bank continued to increase the share of customer accounts in its liabilities structure for the purpose of substitution of the amortizing funds raised on international capital markets. The share of customer accounts in total liabilities grew to 61% against 55% as of YE 2015. In the reporting period customer accounts increased 16.2% and amounted to RUB 1.383 trillion, including corporate customer accounts - 22% to RUB 859 billion, retail deposits - 8% to RUB 524 billion.

The proportion of funds raised on the international capital market in total liabilities of the Bank decreased in 1Q 2016 from 24.4% to 20%.

RusAg’s capital adequacy ratio (N1) is maintained at the level that ensures financial strength and prospective development of the Bank. As of 01.04.2016 the ratio stood at 16.4%.

Outperforming growth rates of the Bank’s lending business as compared to the market contributed to a significant increase in interest income. Against the backdrop of the structure and cost optimization of the Bank’s funding base that has led to a four-fold increase in net interest income – to RUB 13.3 billion compared to RUB 3.6 billion in 1Q 2015. Net interest margin grew from 0.8% in 1Q 2015 to 2.7% in 1Q 2016.

Advanced customer relations management and product line enhancement has led to a significant increase in fee and commission income across the entire range of the Bank’s commercial operations, such as cash and settlement services, insurance products sales, guarantee issuance, bank cards transactions etc. Net fee and commission income of the Bank increased 51% to RUB 3.2 billion in 1Q 2016, as compared to RUB 2.1 billion in 1Q 2015.

The Banks total comprehensive income, including loss for the period (RUB 4,023 million) and positive revaluation of securities at fair value (RUB 4,417 million), amounted to RUB 394 billion against the total comprehensive loss of RUB 15.6 billion in 1Q 2015.

Following the results of Q1 2016, Russian Agricultural Bank has successfully completed the task of increasing the volume of lending to Russian agribusiness as well as the additional commitments for providing financial support to other priority sectors of the Russian economy.

Russian Agricultural Bank announces its FY2015 IFRS results

Russian Agricultural Bank (RusAg) announces its FY2015 consolidated financial results according to International Financial Reporting Standards (IFRS).

In 2015, RusAg not only increased lending to priority industries of the Russian economy but also achieved a growth rate outpacing that of the banking system while maintaining conservative approaches to risk management.

In 2015, the Bank’s gross loan portfolio increased by RUB 250.9 billion (16.1%) and amounted to RUB 1.805 trillion. Corporate loans increased by RUB 235.2 billion (18.5%) up to RUB 1.508 trillion. In 4Q2015, total loans increased by RUB 46.4 billion (4.1%), with corporate loans growing by RUB 33 billion.

During the reporting period, retail loans grew 15.7 billion (5.6%) up to RUB 296.8 billion. Following a drop in 1H2015 caused by diminished economic activity of population, retail lending growth resumed in 2H2015. During 2H2015, retail loans increased by 10%, or RUB 27.2 billion, adding RUB 13.3 billion in 4Q2015. The rise was driven both by a decline in the market interest rates and implementation of state programs for retail lending stimulation, and the Bank’s measures towards higher operational efficiency.

As at 31 December 2015, RusAg’s total assets grew by 22.6% and totaled RUB 2.348 trillion.

During the reporting period, amid market volatility the Bank maintained strong liquidity ratios. A substantial rise in customer accounts contributed to further decrease in the Bank’s reliance on international capital markets and diversification of its domestic funding sources in terms of cost and maturities. In 2015, customer accounts increased by 56.2% and totaled RUB 1.190 trillion, with 79.3 billion attracted in 4Q2015. Corporate customer accounts grew 54.6% up to RUB 703.3 billion. Retail customer accounts increased by 58.6% and amounted to RUB 486.5 billion. The enhancement of the product range and consistent measures taken towards higher POS efficiency resulted in the share of customer accounts in total liabilities expanding to 55% as compared to 44% at YE2014.

High funding costs combined with a shortage in available funding sources and the slow key rate reduction by the Bank of Russia after its spike at the end of 2014 resulted in a 2.5 times decline of net interest income to RUB 23.9 billion in 2015 year-on-year. Starting from 2Q2015 the Bank’s net interest margin gradually recovered. Moreover, new client attraction, product offering enhancement drove a rise of net fee and commission income, which grew 37.5% up to RUB 12.1 billion. In the past year, fee and commission income was primarily generated by cash and settlement services, insurance products sales and guarantee issuance.

In 2015, given the negative forecasts, conservative approach to assessing the borrowers’ debt service quality in line with the consistent application of risk management policies the Bank increased charges to loan impairment provisions, which grew RUB 90.4 billion in 2015. Alongside rising funding costs these factors resulted in a net loss of RUB 94.2 billion for 2015.

Targeting the expansion of efficient financial support of agribusiness, a priority sector of the domestic economy, while ensuring a capital cushion needed for creating loan impairment provisions in challenging macroeconomic environment, the Bank in 2015 raised capital both from the shareholder and market sources. The Bank’s share capital was increased by RUB 78.8 billion, with RUB 68.8 billion coming from the Deposit Insurance Agency (the DIA) as part of Russian banks’ capital replenishment program. Tier 2 capital has been substantially strengthened by a market placement of subordinated bonds and attracting deposits in the amount of RUB 40 billion and USD 1.15 billion respectively. Total capital adequacy ratio under Basel III requirements as at 31 December 2015 stood at 16.3% (YE2014 – 13.0%).

In 2015, against the background of economic recession and crisis developments in the banking sector RusAg successfully accomplished the task of providing financial support to Russian agribusiness, fast-paced substitution of imported foodstuffs, and ensuring the country’s food security while having strongly reinforced its capital base and liquidity.

04/12/2015

Russian Agricultural Bank announces its 9 months 2015 IFRS results

Russian Agricultural Bank (RusAg) announces its interim condensed consolidated financial results for 9M2015 according to International Financial Reporting Standards (IFRS).

During the reporting period the Bank’s loan portfolio expanded, with the highest growth achieved in 3Q2015. This was driven by a moderate recovery of loan demand in 2H2015 on the back of market rates decrease, as well as by the Government support measures of the national agribusiness enterprises.

In 9M2015, the Bank’s loan portfolio grew by RUB 204.5 billion and amounted to RUB 1.758 trillion before provisions for loan impairment. Corporate loan portfolio increased by 202.1 billion (15.9%) and totaled RUB 1.475 billion.

In 3Q2015, total loans expanded by 6.9%, with corporate loans rising by 7.3%. In 3Q2015, the Bank resumed retail lending growth, which compensated for the negative dynamics in this segment in 1H2015 and reached 5.1%, or RUB 13.8 billion. In 9M2015, retail loans grew RUB 2.4 billion (0.9%) up to RUB 283.5 billion.

As of 30 September 2015, the Bank’s total assets expanded 13.7% and amounted to RUB 2.179 trillion.

During the reporting period the Bank maintained a strong liquidity position. Customer accounts growth reduced the Bank’s reliance on funding from international capital markets, while ensuring gradual replacement of these resources in the Bank’s liabilities. In 9M2015, customer accounts increased by 45.8% totaling RUB 1.111 billion. Corporate customer accounts, excluding state and public organizations, rose 15.3% up to RUB 407.7 billion. Accounts of state and public organizations grew 2.8 times totaling RUB 280.9 billion. Retail customer accounts expanded 37.5% up to RUB 421.9 billion. The Bank effectively leveraged its deposit attraction opportunities, thus reducing the share of liabilities due to other banks’ in total liabilities. Borrowings from other banks, including the Bank of Russia, decreased by 33% as compared to YE2014, down to RUB 190.2 billion.

Net interest income grew up to RUB 14.9 billion as of 30 September 2015. In 3Q2015, net interest income amounted to RUB 7.9 billion, rising 2.3 times quarter-on-quarter. The client base expansion generated higher net fee and commission income coming, in the first place, from cash and settlement operations and guarantees. For 9M2015 year-on-year, net commission income rose by 39.2% up to RUB 8.9 billion. In view of tough operating environment, which puts pressure on borrowers’ financial position and debt service quality, the Bank in 2015 has substantially increased charges to provisions for loan impairment, which amounted to RUB 68 billion for 9M2015.

The growth of charges to loan impairment provisions resulted in a net loss of RUB 67.9 billion for the reporting period.

The most significant events after the reporting date were the attraction of a long-term subordinated deposit in the amount equivalent to RUB 73 billion in October 2015 and the placement by the Bank of preferred shares in November 2015 for the amount of RUB 68.8 billion, which were acquired by the State Corporation “Deposit Insurance Agency”. By completing these projects the Bank has materially strengthened its equity and increased its capital adequacy ratios, thereby creating additional opportunities for expansion of lending to Russian agribusiness, which in its turn promotes faster import substitution and the country’s food independence.

28/08/2015

Russian Agricultural Bank announces its 1H2015 IFRS results

Russian Agricultural Bank (RusAg) announces its interim condensed consolidated financial results for 1H2015 according to International Financial Reporting Standards (IFRS).

Amid the macroeconomic volatility and the banking sector lending contraction RusAg continued its loan portfolio expansion.

In 1H2015, the Bank’s gross loan portfolio increased by RUB 90.5 billion (5.8%) and amounted to RUB 1.644 trillion. The growth was driven by corporate loans which increased by RUB 101.9 billion (8.0%) up to RUB 1.375 trillion. In the retail segment, loans decreased by RUB 11.4 billion (4.1%) to RUB 269.6 billion as a result of lower borrowers’ demand at the year start on the back of diminished consumer economic activity.

In 1H2015, total assets grew by RUB 92.5 billion (4.8%) and exceeded RUB 2 trillion.

During the reporting period, customer accounts increased by RUB 259.6 billion (34.1%) and totaled RUB 1.021 billion as the Bank needed to replace gradually maturing international capital market funds with local market customer deposits. In particular, accounts of state and public organizations in 1H2015 grew 2.7 times up to RUB 268.7 billion. While the system-wide corporate customer accounts contracted, RusAg’s corporate customer accounts, excluding state and public organizations, grew 5.4% and totaled RUB 372.8 billion. Retail customer accounts increased 23.8% up to RUB 379.7 billion.

Net interest income amounted to RUB 7 billion. At the same time, the Bank increased its net fee and commission income by 34.5% as compared to 1H2014 - up to RUB 5.2 billion. The growth was generated by income from cash and settlement operations and guarantees.

In view of deterioration of borrowers’ debt service quality triggered by a fall in production, investment activity and household income, in 1H2015 the Bank created charges to provisions for loan impairment totaling RUB 44 billion.

As a result of lower net interest income and increased charges to provisions for loan impairment the Bank incurred a net loss of RUB 45.4 billion in 1H2015.

To expand lending to agribusiness the Government resolved to allocate RUB 10 billion to the Bank’s share capital in June 2015 in the framework of the State Program on Agribusiness Development and Regulation of Farm Produce, Raw Materials and Foodstuffs Markets for 2013-2020.

Besides, the necessary corporate procedures are currently underway to increase the Bank’s share capital by RUB 68.8 billion through the Deposit Insurance Agency as part of the Russian banks’ capital replenishment program. These funds will allow RusAg to increase lending support to agricultural producers and to maintain sufficient capital adequacy levels given the Bank’s focus on agribusiness sector. The financial support of agricultural producers extended by the Bank will promote faster import substitution and the country’s food independence.

03/04/2015

Russian Agricultural Bank announces its 2014 IFRS results

Russian Agricultural Bank (RusAg) announces its consolidated financial results for the year 2014 according to International Financial Reporting Standards (IFRS).

Amid the macroeconomic environment challenges that emerged in 2014, sanctions imposed by the US, EU and a number of other countries, RusAg ensured positive dynamics of its key business lines while maintaining sufficient capital adequacy levels.

In 2014, the Bank’s loan portfolio increased by RUB 179 billion (13%) and amounted to RUB 1.554 trillion. Corporate loan portfolio grew by RUB 148 billion (13%) up to RUB 1.273 trillion, retail loan portfolio — by RUB 31 billion (12%) and reached RUB 281 billion. Total assets grew by RUB 245 billion (15%) and amounted to 1.916 trillion.

Customer accounts grew 6% and totaled RUB 762 billion, with retail customer accounts increasing 23% up to RUB 307 billion.

The rise of financial markets interest rates on the back of the Central Bank key rate increase in 2014 and a spike in funding costs led to a contraction of the Bank’s net interest income by 8% year-on-year down to RUB 60 billion. Notwithstanding the unfavourable market environment, the Bank expanded its customer base, continued to develop transaction services, which drove a 6% increase in its net fee and commission income - up to RUB 9 billion.

Russian economic recession, rouble devaluation, rates increase and the ensuing rise in debt burden added to the deterioration of the financial position of agribusiness enterprises. The Bank took adequate measures aimed at mitigating higher credit risks and created additional loan loss provisions. Given the worsening non-financial sector operating conditions, that put additional pressure on the borrowers’ financial standing, loan impairment charges were increased more than twice year-on-year (up to RUB 56 billion), which affected the Bank’s profits and resulted in a moderate capital decrease. Financial markets turbulence caused a revaluation of the available-for-sale securities portfolio, despite its high quality, which also affected the Bank’s capital dynamics. Loss for the year 2014 made up RUB 47.9 billion, total equity - RUB 198 billion.

At the same time, the Bank maintained the necessary capital adequacy levels. Total and Tier I capital adequacy ratios in accordance with Basel II stood at 13.0% and 9.9%, respectively.

RusAg is a bank of systemic importance and the key Government agent providing financial support to Russian agribusiness. Despite the unprecedented limitations on attracting funds in international capital markets used to expand the loan book, in the past year the Bank provided more than RUB 454 billion to agricultural producers in the framework of the State Program on Agribusiness Development.

In 2015, as part of the Government anti-crisis plan and steps to support RusAg and its lending to the priority industries the Russian authorities will allocate RUB 10 billion to the Bank’s share capital, and another RUB 68.8 billion are stipulated for capital replenishment in the form of federal loan bonds through the Deposit Insurance Agency.

These measures combined with the expenses optimization program implemented in 2015, relating to branch network, business processes and administrative costs, will keep up an expansion of RusAg’s lending to agricultural producers, aimed at higher efficiency of the national agribusiness, faster import substitution and the country’s food independence.

08/09/2014

Russian Agricultural Bank announces its 1H 2014 IFRS financial results

Russian Agricultural Bank (RusAg) has published its Interim Condensed Consolidated Financial Statements with Independent Auditor’s Report on Review for the period ended 30 June 2014.

For the first six months of 2014 the Bank’s gross loan portfolio grew by RUB 37 billion up to RUB 1,412 billion. Corporate loans increased by RUB 30.5 billion and amounted to RUB 1,144 billion. Retail loans rose by RUB 4.5 billion and totaled RUB 255 billion. Customer accounts exceeded RUB 743.5 billion.

In 1H 2014 RusAg ensured effective control of expenses, restraining their growth within the CPI rate while increasing its income at a faster rate. Net interest income as compared to 1H 2013 rose 13% and amounted to RUB 35.3 billion, net fee and commission income totaled RUB 3.8 billion. Net profit for 1H 2014 amounted to RUB 236 million.

Under current limited access to international capital markets, RusAg has fully accomplished the set task of financing the priority sector of the Russian economy - agribusiness. During 8 months of 2014, RusAg extended more than RUB 250 billion under the State Program on Agribusiness Development.

The Bank will continue its work aimed at increasing of lending to agricultural producers, branch network efficiency, expansion of product range thereby contributing to higher performance in domestic agribusiness, faster import substitution and the country’s food security.

03/04/2014

Russian Agricultural Bank announces its 2013 IFRS results

Russian Agricultural Bank (RusAg) announces its audited consolidated financial results for the year 2013 according to International Financial Reporting Standards (IFRS).

In 2013, RusAg demonstrated positive dynamics of its main business indicators. The Bank’s loan portfolio increased by RUB 207 billion (18%) and amounted to RUB 1.375 trillion as of 31 December 2013. Corporate loan portfolio grew by RUB 156 billion (16%) up to RUB 1.125 billion, retail loan portfolio — by RUB 51 billion (26%) and reached RUB 251 billion. Customer accounts increased RUB 165 billion (30%) and totaled RUB 722 billion, with retail customer accounts rising by RUB 61 billion up to RUB 249 billion (32%).

Net interest income of the Bank went up 16% year-on-year and totaled RUB 65 billion, net fee and commission income — 33% up to RUB 8 billion.

Profit of Russian Agricultural Bank for the year 2013 made up RUB 729 million. RusAg`s assets increased by RUB 242 billion (17%) up to RUB 1.671 trillion as of 31 December 2013. The Bank`s equity grew by RUB 30 billion (15%) and reached RUB 228 billion as of 31 December 2013 following a capital increase of RUB 30 billion in December 2013 in the form of an additional share issue.

“The funds allocated by the state to the Bank’s capital are multiplied by resources attracted in financial markets and extended for increasing agribusiness credit support, said Dmitry Patrushev, Chairman of the Board and CEO. – While providing comprehensive support to agricultural producers, the Bank offers a complete range of high quality services to population in small towns and rural areas. Demand for these services is evidenced by significant loan and deposit growth. In 2013, Russian Agricultural Bank has accomplished all tasks of effective agribusiness support, set by the state, and demonstrated good financial results.”

19/09/2013

Russian Agricultural Bank announces 1H 2013 IFRS financial results

Russian Agricultural Bank (RusAg) has published its Interim Condensed Consolidated Financial Statements with Independent Auditor’s Report on Review for the period ended 30 June 2013.

During the reporting period, RusAg further strengthened its key financial and operating results. For the first six months of 2013 gross loan portfolio grew 8.8% up to RUB 1 271.3 billion. In 1H 2013 loans to corporate clients increased 8.4 % and amounted to RUB 1 049.9 billion. Loans to individuals rose 10.9% and added up to RUB 221.4 billion. Total assets at 30 June 2013 grew 7.9% up to RUB 1 541.2 billion. Customer accounts totaled RUB 678.1 billion, a 21.6% increase as compared to 31 December 2012. Net profit for 1H 2013 amounted to RUB 603 million.

Expansion of lending and development of fee-based banking products contributed to further income growth. Net interest income as compared to 1H 2012 rose 12.5% and amounted to RUB 31.3 billion, net fee and commission income grew by 52.7% to RUB 3.8 billion.

The Bank will continue its work aimed at fulfilling the priority task of building up national agribusiness capacity with special focus on key industry development directions: investment projects implementation, small businesses fostering, agricultural machinery upgrade, and seasonal field works financing.