May 30, 2014 / 2:42 PM / 3 years ago

Fitch Publishes 4M14 Russian Banks Datawatch

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Russian Banks Datawatch 4M14 here MOSCOW, May 30 (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 May 2014, as well as changes in April 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 April 2014: - Corporate lending continued to grow strongly by 1.9% (and by a rather high 7.3% in 4M14) with state-related banks accounting for 91% of the monthly rise; - Retail lending growth slightly accelerated to 1.8% (only 4.6% in 4M14), but was still behind a 3% monthly average for 2013. Among specialised retail banks Tinkoff, Sovcombank, OTP grew in line with market, Orient Express showed lower growth, while Rencredit, Home Credit and Russian Standard moderately contracted their loan books; - Customer funding (excluding funds of state-related entities, which we consider as part of the government funding) increased by only RUB51bn in April, as strong inflows of retail deposits of RUB282bn were offset by RUB231bn outflows of corporates. The largest outflows of corporate funding were reported by Sberbank (RUB82bn, not an issue due to this being less than 0.7% of the bank's customer funding) and Nomos group (RUB78bn, offsetting most of the inflows in 1Q14), while few banks had significant inflows, namely VTB group (RUB160bn, 5%) and Alfa (RUB36bn, 8%). Of the April increase of retail deposits state-banks accounted for over 80%; - As loans increased by RUB717bn and customer funding grew by only RUB51bn, banks borrowed further RUB607bn from the government to cover most of the gap. As a result state funding reached a record RUB6.4trn or 12.6% of sector total liabilities; - Banks earned RUB63bn net income in April (12% annualised ROAE), although profits were mainly concentrated in Sberbank (RUB30bn) and VTB group (RUB21bn), while 37 banks from the sample reported losses, including, among the bigger banks, Alfa (minus RUB4.7bn, not a major issue as overall result for 4M14 was a positive RUB6.2bn), Promsvvyaz (minus RUB2.7bn) and Globex (minus RUB2.2bn). Most specialised retail banks also had bleak results. Rencredit's strong positive result was solely due to financial aid received from shareholder, accounted as income in local accounts; - Capitalisaiton tightened slightly. As of 1 May, 14 banks from the sample had total capital ratios (N1, 10% minimum) below 11%, including four below 10.5%. These were Promsvyaz (10.1%), Rossiysky Capital (10.2%), Moscow Industrial Bank (10.3%) and Tatfondbank (10.3%). Also Novikombank and NB TRUST reported core tier 1 ratios below 5.5%, close to the current 5% minimum. The full report, ''Russian Banks Datawatch 4M14", is available on www.fitchratings.com or by clicking on the link above. 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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