Le Lézard
Classified in: Science and technology, Business
Subjects: ERP, ACC

Sovcombank's 9M 2019 IFRS Net Profit Goes up by 41% to RUB 22bn

MOSCOW, Dec. 12, 2019 /PRNewswire/ -- The Bank's sustainable profit excluding one-offs came in at RUB 17.4 bn, growing by 23% as part of the net profit. Net interest income increased by 19% to RUB 40.6 bn, while net fee and commission income rose by 23% to RUB 18 bn.


Year to date, the Bank's retail loan portfolio added 27% and reached RUB 242 bn, mainly on secured loans, which increased to RUB 156 bn. In 9M 2019, the share of secured lending in the retail lending portfolio increased to 64%. Car loans went up by 30% to RUB 94 bn, while mortgage loans grew by 11% to RUB 62 bn. In total, the net interest income and net fee and commission income increased by 75% y-o-y.

Sovcombank Logo

Sergey Khotimskiy, First Deputy CEO: "In 9M 2019, we saw a steady rise of earnings from regular business, as well as higher interest and fee and commission income in the retail segment. To us, this is an evidence of a right strategy in retail with a focus on secured lending and the Halva instalment card project."

Corporate banking

In 9M 2019, net profit of the Bank's corporate segment increased by 2.3x y-o-y to RUB 7 bn, primarily on higher fee and commission income (+57% vs 9M 2018). In Q3 2019, the Bank arranged 16 rouble-denominated bond issues for a total amount of RUB 93 bn.

Dmitry Gusev, Chairman of the Management Board: "In 2019, we have been able to fully capitalise on the synergies from last year's merger with Rosevrobank: SME lending is booming and commodity market departments are delivering excellent results, including in terms of precious metals. The integration at the team level has been completed, and the resulting entity is now functioning as a single whole."

Material events

In August?September 2019, the three international rating agencies and Russia's ACRA Credit Rating Agency upgraded Sovcombank's credit ratings. Fitch upgraded the Bank's rating to ??+, S&P to ??, Moody's to Ba2 on the international scale, and ACRA to ?+ on the national scale.

At the end of Q3 2019, Sovcombank issued its debut subordinated Eurobonds for USD 300 m with a maturity of 10.5 years. The issue received the ?? rating from Fitch.

SOURCE Sovcombank

These press releases may also interest you

at 04:05
Global digital financial services group BCB Group today announced that its core operating subsidiary, BCB Payments Limited, has secured its Authorised Payment Institution (API) licence from the UK's Financial Conduct Authority. This establishes BCB...

at 03:05
nCipher Security, an Entrust Datacard company and provider of trust, integrity and control for business critical information and applications, announces two new additions to its nShield® hardware security module (HSM) portfolio ? nShield Web Services...

at 03:05
Qumulo, the leading provider of enterprise-proven hybrid cloud file storage, today announced its 2020 data storage predictions. Qumulo's predictions are guided by the enterprise's realization that legacy scale-out and scale-up NAS storage solutions...

at 03:05
NEC Energy Solutions, Inc. (NEC ES), announced today the completion of a 4MW/2.8MWh energy storage system in Tusimice, Czech Republic for IBG Cesko, a supplier of comprehensive energy solutions. The battery energy storage system will be used to test...

at 02:50
OneConnect Financial Technology Co., Ltd. , a leading technology-as-a-service platform for financial institutions in China, today announced that it will release financial results for the fourth quarter and full year 2019 after the U.S. market close...

at 02:15
Hexagon AB, a global leader in sensor, software and autonomous solutions, today announced the signing of an agreement to acquire COWI's aerial mapping business. COWI is a leading international consulting group within engineering, economics and...

News published on 12 december 2019 at 20:30 and distributed by: