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, RusAg’s network of 66 branches and over 14 thousand access points covers over 80% of the territory of the Russian Federation and ca. 100% of country’s rural areas. The Bank holds the third position among largest bank POS networks in Russia. 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 2021 RusAg’s gross loan portfolio add up RUB 84.3 billion (+2.8%) and amounted to RUB 3.055 trillion. Corporate loans (including loans to customers measured at fair value through profit or loss) rose by RUB 25.8 billion (+1.1%) from YE2020 and totaled RUB 2.433 trillion. Retail loans add up RUB 58.5 billion (+10.4%) to RUB 621.9 billion.
Deposits and customer accounts in 9M 2021 grew by RUB 139 billion (+4.9%) and totaled RUB 3.001 trillion. Corporate customer accounts came in at RUB 1.560 trillion, expanding by RUB 40 billion (+2.6%). Retail deposits and customer accounts grew by RUB 99 billion (+7.4%) from YE2020 and amounted to RUB 1.441 trillion.
The share of customer funding in the Bank’s total liabilities stood at 82.5%. Loan-to-deposit (LTD) ratio was 102% as of 30 September 2021.
In 9M 2021 RusAg’s assets totaled RUB 3.886 trillion (+1.7% or RUB 66.6 billion).
Net interest income for the three quarters of 2021 amounted to RUB 70.7 billion, which is 22.5% more than a year before (RUB 57.7 billion). Net fee and commission income increased by 45% and totaled RUB 22.4 billion compared to RUB 15.5 billion in 9M 2020. Net interest margin equaled 2.5%. Cost-to-Income ratio (operating expenses divided by net operating income (before allowance for credit losses)) as at 30 September 2021 stood at 55%.
In 9M 2020 RusAg earned a net profit of RUB 14.1 billion compared to RUB 9.9 billion for the same period in 2020.
The Bank’s equity (according to IFRS) as of 30 September 2021 amounted to RUB 247.7 billion, having increased by 5.5% in 9M 2021. Capital adequacy ratio (N1.0) (under the Bank of Russia requirements) stood at 14.96% as at 1 October 2021.
Russian Agricultural Bank is among top ten banks of the Russian Federation and ranked No. 270 among Top-1000 banks globally in terms of Tier 1 capital according to the July 2021 issue of “The Banker” magazine.
Source: IFRS Financial Statements as of 30 September 2021