(The following statement was released by the rating agency)
Link to Fitch Ratings' Report: Russian Banks Datawatch 2M14
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.
charts indicate changes in the last month for Russia's main
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
January, but was still below the 3% monthly average for 2013.
retail banks reported moderate (1.1% on average) contractions of
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),
Sviaz-bank, Petrocommerce and Promsvyaz reported core tier 1
below 6.625% (the proposed minimum level for systemically
important banks from
2016, according to new central bank proposals, which would
capital buffers). Novikombank and NB TRUST reported core tier 1
5.5%, ie close to the current 5% minimum.
- The total regulatory capital ratios (N1, 10% minimum) of the
remained almost unchanged in February, as rouble and equity
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
Some retail banks reported losses in February (mainly due to
including Orient Express (-1.2% of equity), Rencredit (-7.5%)
(-3.8%). Among universal banks negative results were reported by
(-1.4%), Binbank (-2.9%), National Reserve Bank (-8%), and NB
- Retail deposits increased by RUB215bn (1.3%) during the month,
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
With effect from this edition of the datawatch, we have made
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 -
interest reclassified to loans from other assets, and loans to
enterpreneurs reclassified to corporate loans from retail - to
better align the
methodology with IFRS.
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