Fitch Publishes 2M14 Russian Banks Datawatch

Thu Mar 27, 2014 11:00am EDT

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(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Russian Banks Datawatch 2M14 here MOSCOW, March 27 (Fitch) Fitch Ratings has published the latest edition of the 'Russian Banks Datawatch', a monthly publication of spreadsheets with key data from Russian banks' statutory accounts. The latest issue includes balance sheet numbers as of 1 March 2014, as well as changes in February 2014. In addition, charts indicate changes in the last month for Russia's main state-related, privately-owned, foreign-owned and retail banks. Fitch notes the following key developments in February 2014: - Corporate lending increased by a moderate 1.3% for the whole system, or 0.7% net of exchange rate effects. - Retail lending slightly accelerated to 0.9% after the seasonal slow-down in January, but was still below the 3% monthly average for 2013. Most specialised retail banks reported moderate (1.1% on average) contractions of retail books, the exception being Tinkoff (0.5% growth). - Among the largest 50 banks (which are likely to be considered by the central bank as systemically important based on current draft criteria), VTB24, Sviaz-bank, Petrocommerce and Promsvyaz reported core tier 1 ratios slightly below 6.625% (the proposed minimum level for systemically important banks from 2016, according to new central bank proposals, which would introduce additional capital buffers). Novikombank and NB TRUST reported core tier 1 ratios below 5.5%, ie close to the current 5% minimum. - The total regulatory capital ratios (N1, 10% minimum) of the sample banks remained almost unchanged in February, as rouble and equity market volatility had only a moderate impact on profits. Ten banks reported an N1 ratio below 11%. - Profitability was generally reasonable (RUB138bn net profit for the whole sector in 2M14, 13% annualised ROAE), but diverged significantly among banks. Some retail banks reported losses in February (mainly due to loan impairment), including Orient Express (-1.2% of equity), Rencredit (-7.5%) and Svyaznoy (-3.8%). Among universal banks negative results were reported by Rosbank (-1.4%), Binbank (-2.9%), National Reserve Bank (-8%), and NB TRUST (-2.5%). - Retail deposits increased by RUB215bn (1.3%) during the month, while corporate funding grew by RUB712bn (3.9%). State banks accounted for over 75% of the total inflows, while banks outside top 100 experienced moderate outflows. The share of foreign currency deposits increased moderately (by about 5%) during the first two months of the year, partly reflecting conversions by customers in response to rouble depreciation. - Government funding moderately decreased by about RUB230bn or 4.5%. With effect from this edition of the datawatch, we have made certain improvements to the format by adding a section on foreign-currency positions, as well as aggregated figures for banks outside top 100 (except for a few small banks where no public regulatory accounts are available) and totals for the whole sector. There were also some minor reclassifications - including accrued interest reclassified to loans from other assets, and loans to private enterpreneurs reclassified to corporate loans from retail - to better align the methodology with IFRS. Contact: Anton Lopatin Director +7 495 956 70 96 Fitch Ratings CIS Limited 26 Valovaya Street Moscow 115054 Alexander Danilov Senior Director +7 495 956 24 08 James Watson Managing Director +7 495 956 6657 Media Relations: Julia Belskaya von Tell, Moscow, Tel: +7 495 956 9908, Email: julia.belskayavontell@fitchratings.com; Hannah Huntly, London, Tel: +44 20 3530 1153, Email: hannah.huntly@fitchratings.com. Additional information is available on www.fitchratings.com. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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