14 November 2024

Russian Agricultural Bank has published interim summary consolidated financial results for Q3 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 9 months of 2024, the Group’s net profit amounted to RUB 39.1 billion, which exceeds the result for the same period in 2023 by 1.6 times.

“RusAg Group has demonstrated positive dynamics in all key performance indicators in line with our goals and objectives. We ensured growth of the high-quality loan portfolio, a decrease in the level of overdue debt, and maintained the required volume and diversification of the resource base by sources and terms. We maintained the pace of financial support for the Group’s key business direction – agricultural industry. The loan portfolio in this segment increased by 10.4% during the reporting period and reached almost RUB 2.4 trillion. The Group continued the trend of increasing operating income, which also allowed it to increase stable revenues compared to the same period last year (from interest and commission transactions), significantly improve the financial result and increase operating efficiency indicators, in particular, return on equity and assets. RusAg achieved a record profit in its history for the first 9 months of the current year, exceeding the result for the whole of 2023 (RUB 31.8 billion),” said Kirill Levin, First Deputy Chairman of the Board at RusAg.

The Group’s assets as of 30 September 2024 amounted to RUB 5.444 trillion, having increased by RUB 697.9 billion (+14.7%) over 9 months.

The loan portfolio (before provisions) of RusAg Group increased by RUB 410 billion (+11%) within the reporting period and amounted to RUB 4.129 trillion. In particular, the corporate loan portfolio (including loans at fair value through profit or loss) grew during the 9 months of 2024 by RUB 381.2 billion (+12.1%) up to RUB 3.533 trillion. The growth of the retail loan portfolio amounted to RUB 28.9 billion (+5.1%), the volume of loans issued reached RUB 596.1 billion.

During 9 months of 2024, the Group provided further expansion of financial support for agribusiness clients. The Bank’s agribusiness loan portfolio increased by RUB 221.5 billion (+10.4%) and amounted to RUB 2.361 trillion as of 30 September 2024. The volume of loans issued by RusAg to agribusiness in 9 months increased by RUB 380.8 billion (+30.9%) compared to the same period last year and amounted to RUB 1.614 trillion. In particular, the volume of loans provided for seasonal work increased by 3.7% and amounted to RUB 654.6 billion. RusAg is the core bank of the agricultural industry, providing more than two thirds of the financing of seasonal work in the country.

Deposits and customer accounts grew by RUB 632.4 billion (+17.3%) during 9 months of 2024, and amounted to RUB 4.286 trillion. Corporate customer accounts increased by RUB 476.3 billion (+27.6%) and reached RUB 2.199 trillion. Retail deposits and customer accounts increased by RUB 156.1 billion (+8.1%) to RUB 2.087 trillion.

Loan-to-deposit ratio (LTD) stood at 96.3% as at 30 September 2024.

Net interest income by the end of Q3 2024 amounted to RUB 95.7 billion, which is 7.8% more than RUB 88.7 billion for the same period in 2023.

The Group’s net interest margin for 9 months of 2024 amounted to 2.6%. Cost-to-Income ratio (operating expenses divided by net operating income (before allowance for credit losses)) stood at 52%.

The Group’s equity (according to IFRS) as of 30 September 2024 amounted to RUB 307.0 billion, having increased by 3.0% in 9 months. The Bank’s capital adequacy ratio (N1.0) (under the Bank of Russia requirements) stood at 12.7% as at 1 October 2024.