Bank Sankt Peterburg : FY 2017 RAS profit of Bank Saint Petersburg has doubled

Bank Saint Petersburg announces its preliminary FY 2017 RAS results (non-сonsolidated financials calculated in accordance with BSPB`s internal methodology based on RAS) which may be subject to change following the subsequent events. The financials as at January 1, 2017 include the effect of the subsequent events; the numbers as at January 1, 2018 do not include the effect of the subsequent events.

Financial highlights for FY 2017:

- Net Income for FY 2017 increased by 82% compared with FY 2016 and amounted to RUB 4.2 bn;

- Net Fee and Commission Income for FY 2017 amounted to RUB 5.1 bn (+10.4% compared with FY 2016);

- Loans to individuals increased for FY 2017 by 30% and amounted to RUB 72.7 bn;

- Retail deposits increased for FY 2017 by 10% and amounted to RUB 203.8 bn.

Bank Saint Petersburg is ranked 18^th in terms of assets and 15^th in terms of retail deposits among the Russian banks (Interfax ranking). As at January 1, 2018, the Bank provides services to 1 930 000 individuals and 50 000 corporates; the number of cards issued by the Bank is 1 300 000; the Bank's card network comprised of 804 ATMs. At present Internet Bank is used by 960 000 clients.

Alexander Savelyev, Chairman of the Management Board, comments on the Bank's FY 2017 results:

'Bank Saint Petersburg continues to demonstrate good results and boost its profit in the challenging financial market. The Bank's stable position is undoubtful which is confirmed by high credit ratings of independent rating agencies'.

In 2017, the Bank successfully placed 60 mln new ordinary shares, thus increasing its capital by RUB 3.2 bn. The transaction drew strong interest from existing and new institutional investors: more than 50 funds took part in the placement by exercising their pre-emptive rights or through open subscription.

In June 2017, Fitch Ratings affirmed the Bank's Long-Term Foreign and Local Currency Issuer Default Ratings at 'BB-' with Stable outlook. In December 2017, rating agency ACRA affirmed the Bank's credit rating A- (RU) with Stable outlook.

Results summary for FY 2017

Net Interest Income for FY 2017 amounted to RUB 19.4 bn (-9.6% compared with FY 2016). Net Fee and Commission Income for FY 2017 increased by 10.4% compared with FY 2016 and amounted to RUB 5.1 bn. Net Trading Income for FY 2017 amounted to RUB 6.7 bn (+83% compared with FY 2016). Revenues for FY 2017 amounted to RUB 32.1 bn, remaining at the previous year's level.

Operating expenses for FY 2017 remained at the previous year's level and amounted to RUB 13.1 bn. Cost-Income Ratio for FY 2017 amounted to 40.9%.

Net Income for FY 2017 amounted to RUB 4.2 bn (+82% from RUB 2.3 bn for FY 2016).

Bank's assets amounted to RUB 594.5 bn as at January 1, 2018 (+5.3 % compared with January 1, 2017).

Liabilities. As at January 1, 2018, customer deposits totalled RUB 359.2 bn (+1.2% compared with January 1, 2017). Сorporate deposits amounted to RUB 155.4 bn (-8.3% compared with January 1, 2017). Retail deposits amounted to RUB 203.8 bn (+9.9% compared with January 1, 2017).

As at January 1, 2018, the Bank's total capital calculated under the CBR regulations (Basel III) amounted to RUB 71.1 bn (+4.3% compared with January 1, 2017). As a result, the Tier 1 capital adequacy ratio (N1.2) as at January 1, 2018 amounted to 10.1% (required regulatory minimum is 6.0%) and the total capital adequacy ratio (N1.0) as at January 1, 2018 amounted to 14.3% (required regulatory minimum is 8.0%).

Loan portfolio totalled RUB 354.0 bn as at January 1, 2018 (+1.6% compared with January 1, 2017). Corporate loan portfolio amounted to RUB 281.3 bn (-3.8% compared with January 1, 2017). Loans to individuals amounted to RUB 72.7 bn (+30.1% compared with January 1, 2017). As at January 1, 2018, the share of the overdue loans amounted to 4.2%.