15 August 2023

Russian Agricultural Bank has published interim disclosed consolidated financial information in accordance with International Financial Reporting Standards (IFRS) for the 1H 2023.

According to the financial results of Russian Agricultural Bank Group (RusAg Group, the Group) for the 1H 2023, the Group's net profit amounted to RUB 15.3 billion, which is more than three times higher than the result for the whole year 2022.

“In the reporting period, RusAg Group showed a positive trend in all key indicators. The growth of a high-quality loan portfolio, supported by a well-diversified resource base in terms of sources and maturity, and the strengthening of the Group's capital, was in line with our goals and objectives. We maintained our pace of supporting agribusiness and continued to increase operating income while restraining cost growth, and achieved a record profit result. Thus, our expectations to maintain positive earnings dynamics were confirmed,” said Konstantin Styrin, Deputy Chairman of the Board at RusAg.

The Group's assets as of 30 June 2023 amounted to RUB 4.559 trillion, having increased by RUB 297.7 billion (+7.0%) over six months.

The Group's loan portfolio (before provisions) increased by RUB 179.9 billion (+5.3%) compared to the beginning of the year and amounted to RUB 3.593 trillion. Corporate loan portfolio (including loans at fair value through profit or loss) increased over the first half of the current year by RUB 205.3 billion (+7.3%) to RUB 3.029 trillion. Retail loan portfolio slightly declined (-4.3%), which corresponded to the risk approaches of the Group and the priority of lending to agribusiness customers.

In 1H 2023, the Group provided further expansion of financial support to agribusiness customers. RusAg's agribusiness loan portfolio increased within the first six months of 2023 by RUB 85.4 billion (+ 4.3%) and amounted to RUB 2.087 trillion as of 30 June 2023. In particular, the portfolio of loans issued to export-oriented agricultural companies increased by RUB 59.7 billion (+ 10.5%) and amounted to RUB 627.6 billion. The volume of loans provided for seasonal work grew in 1H 2023 by 5.9% compared to the same period last year and exceeded RUB 412.5 billion. Russian Agricultural Bank is the core bank of the agricultural industry, providing a third of agribusiness lending and more than 70% of financing seasonal work in the country.

Deposits and customer accounts grew by RUB 213.0 billion (+6.3%) during 1H 2023, and amounted to RUB 3.576 trillion. Corporate customer accounts (including state authorities) increased by RUB 115.7 billion (+6.8%) and amounted to RUB 1.816 trillion (corporate accounts excluding funds of state authorities increased by RUB 36.2 billion (+2.6%) to RUB 1.429 trillion). Deposits and current accounts of the population increased since the beginning of the year by RUB 97.3 billion (+5.8%) to RUB 1.760 trillion.

Loan-to-deposit ratio (LTD) stood at 100.5% as at 30 June 2023.

Growth in lending while maintaining the quality of the loan portfolio contributed to a significant increase in the Group's interest income: net interest income as for 1H 2023 amounted to RUB 60.3 billion against RUB 39.3 billion a year earlier. The Group's net interest margin in 1H 2023 was 2.6%, up from 1.8% in the same period last year. Cost / Income ratio (operating expenses divided by net operating income (before allowance for credit losses)) improved compared to the same period in 2022 from 53% to 49%.

The Group's equity (according to IFRS) as of 30 June 2023 amounted to RUB 295.4 billion, having increased by 5.8% since the beginning of the year, primarily due to the growth of net profit. Capital adequacy ratio (N1.0) (under the Bank of Russia requirements) stood at 16.73% as at 1 July 2023.