July 5, 2017 / 1:41 PM / 7 months ago

Fitch Publishes 5M17 Russian Banks Datawatch

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Russian Banks Datawatch 5M17 - Excel File here MOSCOW, July 05 (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 publication includes: - Balance sheet numbers as of 1 June 2017, as well as changes during May 2017 and since 1 January 2017 - Charts illustrating balance-sheet changes in 5M17 for the main state-related, privately owned, foreign-owned and retail banks Fitch notes the following key developments in the banking sector in May 2017: Corporate loans nominally decreased by RUB30 billion (0.1%), but after adjusting for a minor rouble appreciation against the dollar grew by RUB62 billion (0.2%). The largest FX-adjusted increases were reported by VTB group (RUB82 billion, 1.4%), Russian Agricultural Bank (Rusag, RUB33 billion, 2.2%), Sberbank of Russia (RUB31 billion, 0.3%), Credit Bank of Moscow (RUB51 billion, 5.4%, but was partly offset by a RUB35 billion decrease of reverse repo exposure in subsidiary SKS-Bank), VBRR and Trust (each by RUB17 billion, 13%), while considerable decreases occurred in National Clearing Centre (RUB50 billion, 8%, all corporate reverse repo), Gazprombank Joint-Stock Company) (RUB43 billion, 1.3%), Promsvyazbank (RUB23 billion, 3.4%) and AO Raiffeisenbank (RUB19 billion, 5.5%). Retail loans grew a moderate RUB76 billion (0.7%), with VTB group achieving a higher 1.5% and accounting for 40% of sector growth. Among the specialised retail banks Tinkoff Bank and Rencredit grew 2%-3%, Home Credit & Finance Bank and Russian Standard were around stable, while Joint Stock Company OTP Bank deleveraged by 1.5%. As the Ministry of Finance (Minfin) did not sell FX reserves in January-May, there was no rouble issuance by the Central Bank of Russia (CBR), but customer funding inflow was still significant in May. Adjusting for rouble appreciation customer accounts (excluding those from government entities) grew RUB576 billion (1.2%), of which RUB516 billion was from corporate and RUB60 billion from retail clients. Large FX-adjusted corporate account inflows occurred in VTB group (RUB185 billion, 3.5%), Sberbank (RUB82 billion, 1.5%), Joint Stock Company Alfa-Bank (Alfa, RUB58 billion, 7%), Credit Bank of Moscow (RUB51 billion, 9%), AO UniCredit Bank (RUB55 billion, 9%), Rosbank (RUB36 billion, 14%) and Moscow Exchange group's National Clearing Centre and National Reserve Depositary (together RUB63 billion). Considerable outflows were seen in Gazprombank (RUB109 billion, 3.8%) and Rusag (RUB49 billion, 4.6%). Retail funding inflow was skewed towards VTB group and Rusag, which managed to attract, respectively, RUB35 billion (1.3%) and RUB25 billion (3.7%), making up the majority of the sector's monthly growth. State funding decreased RUB380 billion after adjusting for currency moves. This was a net result of repayments of RUB424 billion to CBR and RUB85 billion to Minfin and borrowing of RUB129 billion from regional and federal budgets. VTB group made the largest net repayment of RUB318 billion, returning RUB316 billion to CBR and RUB105 billion to Minfin, while borrowing RUB103 billion from regional and federal budgets. A further RUB75 billion was repaid by Alfa, mainly to CBR and MinFin. Gazprombank borrowed RUB68 billion, mainly from regional and federal budgets. Sector liquidity was generally sound (highly liquid assets, including cash, short-term bank placements and unpledged government bonds accounted for 19% of sector assets at end-May), although unevenly distributed. Sberbank and most foreign and large private banks had surplus liquidity as they have repaid the majority of CBR funding and kept RUB0.6 trillion on interest-bearing deposits with CBR. However, VTB group, Gazprombank and Rusag were still reliant on state funding, accounting for 74% of the RUB2.4 trillion still outstanding. Some smaller banks experienced tight liquidity, including Moscow Industrial Bank (6% of highly liquid assets, covering customer accounts by 8%) and Jugra (4%, 5%), which also had limited volumes of unpledged securities. The sector reported a moderate RUB75 billion net profit in May (annualised ROAE of 11%). Sberbank outperformed the sector earning RUB55 billion (22%). Large losses were reported by PJSC Sovcombank (RUB6.6 billion, 13% of end-April equity, mostly reversal of a similar technical gain in April) and Jugra (RUB2.8 billion, 10%, presumably due to creation of extra reserves). Among the specialised retail banks, Russian Standard reported high RUB2.8 billion net income (6% of end-April equity, but the nature of this profit is unclear), Tinkoff earned 4%, Home Credit and Rencredit about 2% and OTP was break-even. The sampled banks' average capital ratios were stable in May as lending growth was compensated by internal capital generation. All 10 systemically important banks complied with capital requirements including buffers (core Tier 1 ratio of 6.1%, Tier 1 ratio of 7.6% and total ratio of 9.6%); however, Promsvyazbank had only a minimal cushion with a Tier 1 ratio of 7.7%. Non-systemically important banks' requirements (including buffers) are slightly lower at 5.75%, 7.25% and 9.25%, respectively. Six of the sampled banks (excluding failed and rescued banks and those not reporting capital ratios) had capital ratios above the minimum capital requirements, but did not meet the regulatory buffers. These are Post Bank, Bank Rossiysky Capital, UBRIR, Moscow Industrial Bank, Orient Express Bank and PJSC Asian Pacific Bank. An inability to meet buffer requirements by the end of the quarter could lead to limitations on dividend payments, but would not represent grounds for a license withdrawal. In addition, Uraltransbank was in breach not only of the buffer but also the minimum Tier 1 capital requirement itself for 18 days in May (reported ratio 4.7% at end-May vs. required minimum of 6%), which according to Russian legislation may result in regulatory intervention. We estimated that at end-5M17 the capital buffers (excluding potential future profits) of 27 of the sampled banks (excluding failed and rescued banks, and those not reporting capital ratios) were sufficient to absorb potential losses equal to less than 5% of loans (based on minimal capital requirements) and five could absorb less than 1%. The latter are Post Bank, SKS-bank, UBRIR, Moscow Industrial and Uraltransbank. The latest Datawatch is available at www.fitchratings.com or by clicking the above link. Contact: Anton Lopatin Director +7 495 956 70 96 Fitch Ratings CIS Limited 26 Valovaya Street Moscow 115054 Ruslan Bulatov Associate Director +7 495 956 99 82 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; Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: peter.fitzpatrick@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 WEB SITE AT 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. DIRECTORS AND SHAREHOLDERS RELEVANT INTERESTS ARE AVAILABLE here. 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. Copyright © 2017 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. In issuing and maintaining its ratings and in making other reports (including forecast information), Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. The manner of Fitch’s factual investigation and the scope of the third-party verification it obtains will vary depending on the nature of the rated security and its issuer, the requirements and practices in the jurisdiction in which the rated security is offered and sold and/or the issuer is located, the availability and nature of relevant public information, access to the management of the issuer and its advisers, the availability of pre-existing third-party verifications such as audit reports, agreed-upon procedures letters, appraisals, actuarial reports, engineering reports, legal opinions and other reports provided by third parties, the availability of independent and competent third- party verification sources with respect to the particular security or in the particular jurisdiction of the issuer, and a variety of other factors. Users of Fitch’s ratings and reports should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings and its reports, Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings and forecasts can be affected by future events or conditions that were not anticipated at the time a rating or forecast was issued or affirmed. The information in this report is provided “as is” without any representation or warranty of any kind, and Fitch does not represent or warrant that the report or any of its contents will meet any of the requirements of a recipient of the report. A Fitch rating is an opinion as to the creditworthiness of a security. This opinion and reports made by Fitch are based on established criteria and methodologies that Fitch is continuously evaluating and updating. Therefore, ratings and reports are the collective work product of Fitch and no individual, or group of individuals, is solely responsible for a rating or a report. The rating does not address the risk of loss due to risks other than credit risk, unless such risk is specifically mentioned. Fitch is not engaged in the offer or sale of any security. All Fitch reports have shared authorship. Individuals identified in a Fitch report were involved in, but are not solely responsible for, the opinions stated therein. The individuals are named for contact purposes only. A report providing a Fitch rating is neither a prospectus nor a substitute for the information assembled, verified and presented to investors by the issuer and its agents in connection with the sale of the securities. Ratings may be changed or withdrawn at any time for any reason in the sole discretion of Fitch. Fitch does not provide investment advice of any sort. Ratings are not a recommendation to buy, sell, or hold any security. Ratings do not comment on the adequacy of market price, the suitability of any security for a particular investor, or the tax-exempt nature or taxability of payments made in respect to any security. Fitch receives fees from issuers, insurers, guarantors, other obligors, and underwriters for rating securities. Such fees generally vary from US$1,000 to US$750,000 (or the applicable currency equivalent) per issue. In certain cases, Fitch will rate all or a number of issues issued by a particular issuer, or insured or guaranteed by a particular insurer or guarantor, for a single annual fee. Such fees are expected to vary from US$10,000 to US$1,500,000 (or the applicable currency equivalent). The assignment, publication, or dissemination of a rating by Fitch shall not constitute a consent by Fitch to use its name as an expert in connection with any registration statement filed under the United States securities laws, the Financial Services and Markets Act of 2000 of the United Kingdom, or the securities laws of any particular jurisdiction. Due to the relative efficiency of electronic publishing and distribution, Fitch research may be available to electronic subscribers up to three days earlier than to print subscribers. For Australia, New Zealand, Taiwan and South Korea only: Fitch Australia Pty Ltd holds an Australian financial services license (AFS license no. 337123) which authorizes it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below