The loss of the Bank “Russian Standard” in accordance with IFRS for the first quarter of 2016 amounted to RUB 2.3 billion. This is almost six times less than in the same period last year (in the first quarter of 2015, the Bank recorded a loss of 13.62 billion rubles). Despite the reduction of the loss, the interest income of the Bank remained almost at the same level as a year ago (13.7 billion rubles), while Commission income decreased from 1.9 to 1.7 billion RUB.
“The Russian standard” has brought profit of foreign currency transactions. To them, the Bank earned 1.1 billion RUB compared to net loss of 600 million in the first quarter of 2015, 1.7 times increase in the income of “Russian standard” for transactions in debt securities to 3.17 billion rubles According to the report, on March 31, 2016 the Bank on balance were securities in the amount of RUB 216 billion (mainly investment portfolio consisted of securities held to maturity — 160 billion rubles), which, as noted by Sberbank CIB analyst Ekaterina Sidorova, laid almost entirely on short-term REPO transactions. Basically, the Bank attracted funds from other credit institutions and financial companies, debt to the Central Bank in the first quarter of 2016 has more than halved — to 45 billion rubles.
Credit portfolio of “Russian standard” has dropped in the first quarter by 9%, 6 to 106 billion rubles. Due to the decrease in the loan portfolio, the Bank managed to cut costs on building up reserves (from 16.5 to 5.9 billion rubles.), which had an impact on the Bank’s costs and allowed him to reduce the loss. Support to the Bank also had a decrease in borrowing costs (by reducing the rate of the Central Bank) and by reducing administrative costs. Personnel costs in the 1st quarter of 2016 was decreased from 3.4 to 2.5 billion rubles.
Sidorov said in the review of Sberbank CIB, the reduction of liquidity from “Russian standard”: his own cash and cash equivalents decreased during the quarter by 1.7 times and amounted to 20.2 billion rubles. continued outflow of clients ‘ funds, the volume of which amounted to 177,3 billion RUB compared 183,8 billion rubles a year earlier. According to reports, the norm of instant liquidity (N2) at “the Russian standard” in January-March declined significantly — from 222,6% to 138% and the current liquidity ratio fell more than doubled to 61.8% if you set the regulator at least 50%.
“In the current situation progress to the creditors of the Bank would be to minimize losses,” says Sidorova. She noted that the capital of “Russian Standard”, which was expanded in 2015, including through restructuring of the Bank’s Eurobonds, continues to decline. “Currently, the subordinated Eurobonds of the Bank of the old model with maturity in December 2016 are listed in the area of 90-92% of the nominal value, and notes of Russian Standard Ltd maturing in 2022 at 22-25% of the nominal value, reflecting the high risks associated with investments in these tools,” she points out in her review.
On March 31, 2016 the capital of the Bank Rustam Tariko amounted to RUB 15.8 billion While the capital adequacy ratio of the Bank (N 1.0.) decreased from 13.5 to 11%. Analyst of the Agency Alexander Proklov Moodys believes that the pressure on the capital could be higher due to problem loans for which the Bank would have to dosdat reserves. “Apparently, in order not to eat into capital, the Bank has decided to reduce lending to customers. Otherwise difficult to explain why a portfolio of securities of the Bank double its credit portfolio, ” he said.