Profile

Russian Agricultural Bank

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 has a unique mandate to act as the State agent to implement the Government’s financial policy in the domestic agribusiness sector. RusAg 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 diversified product range designed to satisfy the demand of the target market segment and to match its wide regional coverage. The Bank also engages in other Government sustainability programs focused on social aspects.

Today, Russian Agricultural Bank’s network of 66 regional branches and about 1,300 additional offices covers over 60% of territory of the Russian Federation and is among top 3 largest branch networks 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 over 6.6 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.

In 9M 2020 RusAg’s gross loan portfolio went up 13.9% (+RUB 344 billion) reaching RUB 2.815 trillion. Corporate loans (including loans to customers measured at fair value through profit or loss) rose by 15% (+RUB 298.8 billion) from YE2019 and totaled RUB 2.297 trillion. Retail loans grew by 9.6% (+RUB 45.2 billion) to RUB 518.3 billion from YE2019.

Deposits and customer accounts in 9M 2020 grew by 6% (+RUB 148.3 billion) and added up to RUB 2.634 trillion. Corporate customer accounts amounted to RUB 1.332 trillion (+2.9% or RUB 37.4 billion), retail deposits and customer accounts grew 9.3% (+RUB 110.9 billion) from YE2019 and amounted to RUB 1.302 trillion.

The share of customer funding in the RusAg’s total liabilities stood at 81.1%. The Bank’s loan-to-deposit (LTD) ratio stood at 107% as at 30 September 2020.

In 9M 2020 RusAg’s assets totaled RUB 3.471 trillion (+7.9% or RUB 255.3 billion).

As of 30 September 2020 net interest and fee and commission income grew by 4.1% to RUB 73.2 billion from RUB 70.3 billion year-on-year. Net interest margin stayed flat year-on-year (2.3%). In the reporting period, the Bank’s Cost/income ratio (operating expenses divided by net operating income (before allowance for credit losses)) stood at 54%.

In 9M 2020 RusAg earned a net profit of RUB 9.9 billion compared to RUB 4.3 billion for the same period in 2019.

The Bank’s equity (IFRS) amounted to RUB 222.6 billion as at 30 September 2020 against RUB 199.3 billion at YE2019 – an increase of 11.7%. The growth of the Group’s capital is related to additional capitalization of RusAg in July 2020 in the amount of RUB 20 billion.

Capital adequacy ratio (N1.0) stood at 15.1% as of 1 October 2020.

Russian Agricultural Bank is among top ten banks of the Russian Federation and ranked No. 224  among Top-1000 banks globally in terms of Tier 1 capital according to the July 2020  issue of “The Banker” magazine.  

Source: IFRS Financial Statements as of 30 September 2020