14 August 2024

Russian Agricultural Bank has published interim summary consolidated financial results for H1 2024 in accordance with International Financial Reporting Standards (IFRS).

According to the financial results of Russian Agricultural Bank Group (hereafter – RusAg Group, the Group, RusAg or the Bank) for the first half of 2024, the Group’s net profit amounted to RUB 26.03 billion exceeding the result for the same period of 2023 by 70%.

“Financial results of RusAg Group in the first half of 2024 are characterized by positive dynamics of all key performance indicators. The growth of a high-quality loan portfolio, provided by a well-diversified resource base through terms and sources, and the strengthening of the Group’s capital, which corresponded to our goals and objectives. We maintained the pace of agribusiness support and continued the trend towards increasing operating income while improving the quality of the loan portfolio. This allowed us to increase stable income (from interest and commission transactions) compared to the first half of last year, significantly increase the financial result and improve operating efficiency indicators, in particular, return on equity and assets. Thus, our expectations of maintaining positive profit dynamics were confirmed,” said Kirill Levin, First Deputy Chairman of the Board at RusAg.

The Group’s assets as of 30 June 2024 amounted to RUB 4.956 trillion, having increased by RUB 210.3 billion (+4.4%) over 6 months.

The Group’s loan portfolio (before provisions) increased by RUB 132 billion (+3.6%) within the H1 2024 and amounted to RUB 3.851 trillion. In particular, the corporate loan portfolio (including loans at fair value through profit or loss) grew during the first half of 2024 by RUB 123.8 billion (+3.9%) up to RUB 3.276 trillion. The growth of the retail loan portfolio amounted to RUB 8.2 billion (+1.4%), the volume of loans issued reached RUB 575.5 billion.

In the first half of 2024, the Group provided further expansion of financial support for agribusiness clients. The Bank’s agribusiness loan portfolio in H1 2024 increased by RUB 157.5 billion (+7.4%) and amounted to RUB 2.297 trillion as of June 30. The volume of loans issued by RusAg to agribusiness in 6 months increased by RUB 235.2 billion (+28.5%) compared to the same period last year and amounted to RUB 1.061 trillion. In particular, the volume of loans provided for seasonal work increased by 14.2% and amounted to RUB 471.2 billion. RusAg is the core bank of the agricultural industry, providing a third of lending to agribusiness and more than 70% of seasonal work financing in the country.

Deposits and customer accounts grew by RUB 332.5 billion (+9.1%) during H1 2024, and amounted to RUB 3.986 trillion. Corporate customer accounts (including state authorities) increased by RUB 206.9 billion (+12.0%) and reached RUB 1.93 trillion. Corporate funds excluding funds of state authorities grew by RUB 166.5 billion (+12.4%) compared to the end of 2023, and amounted to RUB 1.512 trillion. Retail deposits and customer accounts increased by RUB 125.6 billion (+6.5%) to RUB 2.056 trillion.

Loan-to-deposit ratio (LTD) stood at 96.6% as at 30 June 2024.

Net interest income as for H1 2024 amounted to RUB 62.2 billion, which is 12.0% more than RUB 55.5 billion for the same period in 2023.

The Group’s net interest margin for the first half of 2024 amounted to 2.6%. Cost-to-Income ratio (operating expenses divided by net operating income (before allowance for credit losses)) stood at 54%.

The Group’s equity (according to IFRS) as of 30 June 2024 amounted to RUB 306.7 billion, having increased by 2.9% in 6 months. The Bank’s capital adequacy ratio (N1.0) (under the Bank of Russia requirements) stood at 14.4% as at 1 July 2024.