Russian Agricultural Bank announces its interim condensed consolidated financial results for 9M 2021 according to International Financial Reporting Standards (IFRS).
“The results of Russian Agricultural Bank Group for 9 months of 2021 are marked by positive dynamics in all key performance indicators. The Bank achieved the planned growth of its loan portfolio both in the priority segment – agribusiness, and in corporate and retail business in general, significantly improved the quality of its assets, and expanded the resource base diversified by sources and terms of attraction. The increase in interest and fee and commission income of the Group and a significant growth of the net profit contributed to a further increase in the return on equity, assets and other operating efficiency indicators. In the reporting period, the Group also successfully achieved the goal of increasing its capital. I especially want to note that good financial results are shown against the backdrop of the Bank’s branch network expansion in rural areas and the active digital transformation of internal and client processes”, Kirill Levin, First Deputy Chairman of the Board at RusAg, said.
In 9M 2021, the Group’s gross loan portfolio grew by RUB 84.3 billion (+2.8%) reaching 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.
As at 30 September 2021, the Group’s assets totaled RUB 3.886 trillion. In 9M 2021, the Group’s assets grew by RUB 66.6 billion (+1.7%).
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 Group’s total liabilities stood at 82.5%. Loan-to-deposit (LTD) ratio stood at 102% as at 30 September 2021.
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. The return on equity, compared to the results of 9M 2020, increased by 1.4 p.p. up to 7.9%. The return on assets stood at 0.5%, which is an increase by 0.1 p.p. compared to the same period of last year.
The Group’s 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%.
The Group’s net profit for the 9M 2021 amounted to RUB 14.1 billion, compared to RUB 9.9 billion for the same period in 2020.
The Group’s equity (according to IFRS) as of 30 September 2021 amounted to RUB 247.7 billion, having increased by 5.5% in 9M 2021. The growth of the Group’s capital was due to the additional capital injection in the third quarter of 2021 in the amount of RUB 10 billion.
Capital adequacy ratio (N1.0) (under the Bank of Russia requirements) stood at 14.96% as at 1 October 2021.