Russian Bank Saint Petersburg (BSPB) posted Russian Accounting Standards (RAS) profit of RUB15.6bn and RUB40.5bm ($0.4bn) its 3Q24 and 9M24, respectively, making a return on equity (ROE) of 32% and 29%. 

As followed by bne IntelliNews, last month the bank approved a 1H24 dividend of RUB27.26 per ordinary share and RUB0.22 per preference share, making a total amount of funds earmarked for dividends a record RUB12.2bn (50% of 1H24 IFRS net profit).

Despite the payment of record dividends in September, total capital adequacy (N1.0) of BSPB in 3Q24 increased by 1.6 percentage points to an “incredible” 22.5%, Renaissance Capital commented on October 15.

In 3Q24, BSPB’s loan portfolio grew by 3.1% (up 6.5% year to date), with most of the growth coming from the bank's key corporate segment. Customer deposits declined by 5.3% (down 4.8% in 9M24), with outflows in both retail and corporate segments.

“Despite a notable increase in loan-to-deposit ratio in 3Q24, net interest income did not grow significantly, which may indicate a decline in net interest margin relative to 1H24,” RenCap analysts commented.

Nevertheless, continued high net interest income, coupled with higher income from financial market operations (up 115% quarter on quarter) and normalisation of cost of risk (0.6%), contributed to BSPB’s revenue and net profit growth in 3Q24, the analysts note.

As followed by bne IntelliNews, the bank's profit for 2023 overall amounted to RUB47.3bn, flat year on year and making an ROE of 30%. BSPB posted net profit under Russian Accounting Standards (RAS) in 2Q24 and 1H24 of RUB10.5bn and RUB24.9bn respectively, down by 22% y/y and 12% y/y and implying returns on equity of 23% and 28%. 

Previously the analysts argued that BSBP is a beneficiary of key rate hikes in July and September due to its balance sheet structure (emphasis on corporate lending at floating rates and a high share of current accounts).