16 November 2023

Russian Agricultural Bank has published interim disclosed consolidated financial information in accordance with International Financial Reporting Standards (IFRS) for 9M 2023.

According to the financial results of Russian Agricultural Bank Group (RusAg Group, the Group) for 9M 2023, the Group’s net profit amounted to RUB 23.8 billion, exceeding the result for the entire 2022 by almost 5 times.

“In the reporting period, the positive trend in all key indicators of the RusAg Group remained. In accordance with our goals and objectives, the growth of the high-quality loan portfolio continued, provided by both a well-diversified resource base in terms of sources and terms, and the strengthening of the Group’s capital. We maintained the pace of support for the Russian agribusiness, sought to increase operating income, which allowed us to get a record profit. All this shows that the Group’s activities are being conducted in the right direction and the results achieved correspond to our plans,” said Kirill Levin, First Deputy Chairman of the Board at RusAg.

The Group’s assets as of 30 September 2023 amounted to RUB 4.679 trillion, having increased by RUB 417.4 billion (+9.8%) over three quarters.

The Group’s loan portfolio (before provisions) increased by RUB 190.8 billion (+5.6%) compared to the beginning of the year and amounted to RUB 3.604 trillion. Corporate loan portfolio (including loans at fair value through profit or loss) increased over three quarters of the current year by RUB 218.2 billion (+7.7%) to RUB 3.042 trillion. Retail loan portfolio slightly declined (-4.7%), which corresponded to the risk approaches of the Group and the priority of lending to agribusiness customers.

In January-September 2023, the Group provided further expansion of financial support to agribusiness customers. RusAg’s agribusiness loan portfolio increased within nine months of 2023 by RUB 64.2 billion (+3.2%) and amounted to RUB 2.066 trillion as of 30 September 2023. The volume of loans provided for seasonal work increased compared to the results of nine months of last year by 2.9% to RUB 631.0 billion; the volume of loans issued for the purchase of agricultural machinery and equipment increased by 46.5% and amounted to RUB 47.9 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 300.3 billion (+8.9%) during 9M 2023, and amounted to RUB 3.663 trillion. Corporate customer accounts (including state authorities) increased by RUB 105.5 billion (+6.2%) and amounted to RUB 1.805 trillion. Deposits and current accounts of the population increased since the beginning of the year by RUB 194.9 billion (+11.7%) to RUB 1.858 trillion.

Loan-to-deposit ratio (LTD) stood at 98% as at 30 September 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 9M 2023 amounted to RUB 95.9 billion. The Group's net interest margin stood at 2.8%, which is a growth from 1.8% in the same period last year. Cost-to-Income Ratio (operating expenses divided by net operating income (before allowance for credit losses)) improved compared to the same period in 2022 and amounted to 47%.

The Group’s equity (according to IFRS) as of 30 September 2023 amounted to RUB 290.5 billion, having increased by 4.0% 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 16.33% as at 1 October 2023.