19 May 2023

Russian Agricultural Bank has published interim disclosed consolidated financial information in accordance with International Financial Reporting Standards (IFRS) for the Q1 2023.

According to the financial results of Russian Agricultural Bank Group (RusAg Group, the Group) for the first three months of 2023, the Group’s net profit amounted to RUB 10.9 billion – this is more than a twofold increase compared to the result for the whole year 2022.

“In the reporting period, RusAg Group ensured the target growth of its loan portfolio while maintaining its quality, supported the required volume and diversification of the resource base, increased operating income and earned a record profit in the last few years in the first quarter. The financial result of the first three months allows us to expect that the positive dynamics of profit will continue at the end of the year,” said Kirill Levin, First Deputy Chairman of the Board at RusAg.

The Group’s assets as of 31 March 2023 amounted to RUB 4.474 trillion, having increased by RUB 212.8 billion (+5.0%) over three months.

The Group’s loan portfolio (before provisions) increased by RUB 70.5 billion (+2.1%) compared to the beginning of the year and amounted to RUB 3.484 trillion. Corporate loan portfolio (including loans at fair value through profit or loss) increased over the first three months of the current year by RUB 86.9 billion (+3.1%) to RUB 2.91 trillion. Retail loan portfolio decreased by RUB 16.4 billion (-2.8%) and amounted to RUB 573.2 billion, which was due to the conservative risk policy of RusAg Group and the priority of financial support to agribusiness.

In Q1 2023, RusAg Group continued to provide uninterrupted lending to agricultural producers – seasonal work financing is provided in the required amounts: the volume of loans issued increased by 17% compared to the same period last year and exceeded RUB 193 billion. As part of concessional lending, the Group continued to work on all programs that provide state support for the agricultural sector: the volume of concessional loans to agribusiness increased by 26% compared to the Q1 2022 and exceeded RUB 118 billion.

Deposits and customer accounts grew by RUB 313.1 billion (+9.3%) during Q1 2023, and amounted to RUB 3.676 trillion. Corporate customer accounts (including state authorities) increased by RUB 289.9 billion (+17.1%) and amounted to RUB 1.990 trillion. Corporate funds (excluding funds of state authorities) increased by RUB 162.9 billion (+11.7%) compared to the end of 2022, and amounted to RUB 1.556 trillion. Deposits and current accounts of the population increased since the beginning of the year by RUB 23.2 billion (+1.4%) to RUB 1.686 trillion.

Loan-to-deposit ratio (LTD) stood at 95% as at 31 March 2023.

Net interest income as for Q1 2023 amounted to RUB 29.7 billion, the volume of net fee and commission income amounted to RUB 4.6 billion. The Group’s net interest margin showed a steady trend towards recovery after a jump in market rates in 2022 and amounted to 2.6%, having increased by 0.7 percentage points during the first quarter. Cost / Income ratio (operating expenses divided by net operating income (before allowance for credit losses)) stood at 50% as of 31 March 2023.

The Group’s equity (according to IFRS) as of 31 March 2023 amounted to RUB 290.9 billion, having increased by 4.2% in three months, primarily due to the growth of net profit. Capital adequacy ratio (N1.0) (under the Bank of Russia requirements) stood at 14.6% as at 1 April 2023.