Russian Agricultural Bank (RusAg, the Group) announces its interim condensed consolidated financial results for 3M 2021 according to International Financial Reporting Standards (IFRS).
“In Q1 2021, Russian Agricultural Bank Group provided targeted growth of the loan portfolio with an increase in its quality, supported the necessary volume and diversification of the funding base, and also increased net interest and commission income. The positive effect of digital transformation and the implementation of the ‘More than just a Bank’ concept was an increase in the number of transactions conducted by retail and corporate clients via remote channels, which ensured the development of the transaction business and the growth of the Group’s fee and commission income. Financial result of the first three months allows us to expect positive dynamics of profit to maintain at the end of the year,” Kirill Levin, First Deputy Chairman of the Board at RusAg, said.
In 3M 2021 the Group’s gross loan portfolio grew by RUB 22.3 billion (+1%) reaching RUB 2.993 trillion. Corporate loans (including loans to customers measured at fair value through profit or loss) rose by RUB 2.8 billion (+0.1%) from YE2020 and totaled RUB 2.410 trillion. Retail loans add up RUB 19.5 billion (+3.5%) to RUB 582.9 billion.
As at 31 March 2021 the Group’s assets totaled RUB 3.861 trillion. In Q1 2021 the Group’s assets grew by RUB 41.4 billion (+1.1%).
Deposits and customer accounts in 3M 2021 grew by RUB 93.2 billion (+3.3%) and totaled RUB 2.956 trillion. Corporate customer accounts came in at RUB 1.583 trillion, expanding by RUB 63.1 billion (+4.2%). Retail deposits and customer accounts grew by RUB 30.1 billion (+2.2%) from YE2020 and amounted to RUB 1.373 trillion.
The share of customer funding in the Group’s total liabilities stood at 81.5%. Loan-to-deposit (LTD) ratio stood at 101.3% as at 31 March 2021.
In Q1 2021, net interest income amounted to RUB 21.4 billion, which is 10.4% more than a year before (RUB 19.4 billion). Net fee and commission income totaled RUB 9.7 billion, compared to RUB 4.3 billion in Q1 2020.
The Group’s net interest margin was 2.3% as at 31 March 2021. Cost-to-Income ratio (operating expenses divided by net operating income (before allowance for credit losses)) stood at 61%.
The Group’s net profit for the Q1 2021 amounted to RUB 5.5 billion, compared to RUB 0.6 billion for the same period in 2020.
The Group’s equity amounted to RUB 233.9 billion as at 31 March 2021. Capital adequacy ratio (N1.0) (under the Bank of Russia requirements) stood at 14.1% as at 1 April 2021.