Russian Agricultural Bank Group (RusAg, the Group) has announced its interim condensed consolidated financial results for 9M 2020 according to International Financial Reporting Standards (IFRS).
“The first 9 months of 2020 were a period of flexible and effective decision-making for the Russian Agricultural Bank Group, which was reflected in the progressive development of the Group’s business in key market segments and the achievement of a positive financial result. We ensured the growth of all planned indicators, increased corporate and retail loan portfolios, improved their quality, strengthened the resource base, increased capital and earned a record in the Group's history profit of RUB 9.9 billion,” Kirill Levin, First Deputy Chairman of the Board at RusAg, said.
In 9M 2020, the Group’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.
The Group’s assets at the end of September 2020 amounted to RUB 3.471 trillion, an increase of 7.9% (+RUB 255.3 billion) over the reporting period.
Deposits and customer accounts in 9M 2020 grew by RUB 148.3 billion (+6%) and added up to RUB 2.634 trillion. As at 30 September 2020, corporate customer accounts amounted to RUB 1.332 trillion, an increase of RUB 37.4 billion (+2.9%) during the reporting period. Retail deposits and customer accounts increased by RUB 110.9 billion (+9.3%) and reached RUB 1.302 trillion in the first 9 months of this year. The balances on the current and settlement accounts of the Group’s clients increased in the reporting period by 44.7% to RUB 494.9 billion.
The share of customer funding in total liabilities stood at 81.1%. The Group’s loan-to-deposit (LTD) ratio stood at 107% as at 30 September 2020.
In 9M 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 Group’s Cost/income ratio (operating expenses divided by net operating income (before allowance for credit losses)) stood at 54% as of 30 September 2020.
In 9M 2020 the Group earned a net profit of RUB 9.9 billion compared to RUB 4.3 billion for the same period in 2019.
As of 30 September 2020, the Group’s equity (IFRS) amounted to RUB 222.6 billion 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.
“RusAg’s support of the national agribusiness has contributed to the outstripping growth rates of the industry, which is showing strong positive dynamics against the background of declining indicators in a number of other sectors of the economy. We have maintained our leading position in agricultural lending, managed to expand the tools aimed at increasing the volume of agricultural exports, and ensured the Bank’s large-scale participation in a number of important target programs, such as rural mortgage,” Kirill Levin, First Deputy Chairman of the Board emphasized.