Russian Agricultural Bank JSC (Omsk branch is the Omsky Biocluster member) has published interim condensed consolidated financial statements in accordance with international financial reporting standards for the Q1 2019.
"The updated State Program for the Development of Agriculture to 2025 poses serious challenges for the industry: to ensure food security, increase value added, to ensure the growth of exports and investment in fixed assets. The RusAg value as the chief financial assistant of farmers in this process is essential. Interest rate subsidies remain one of the key tools to support the industry. The volume of disbursements under the concessional lending program is growing, as is the financing of the agro-industry as a whole. We will continue to comprehensively promote the growth of the industry, increasing the efficiency of investments in the agricultural sector," First Deputy Chairman of the RusAG Board Kirill Levin said.
During the reporting period, the Group demonstrated the growth of its business volume both in corporate and retail lending, and in attracting client funds, which contribute to the formation of a sustainable diversified resource base, and also provided the necessary operational efficiency and profitability.
The loan portfolio of the Group (before provisions) for the Q1 2019 increased by 2.8% (RUR +65 billion, $ 1.01 billion) and amounted to RUR 2.355 trillion ($ 36.46 trillion). The growth was due to an increase in the loan portfolio of legal entities (including loans recorded at fair value through profit or loss) by 3.4% (RUR +63.2 billion, $ 0.98 billion) to RUR 1.919 trillion ($ 29.71 trillion) compared to the beginning of the year. The loan debt of individuals at the end of the reporting quarter amounted to RUR 436 billion ($ 6.75 billion). The size of the Group's assets at the end of the Q1 2019 amounted to RUR 3.264 trillion ($ 50.53 trillion), an increase over the three months by 4.8% (RUR +149.5 billion, $ 2.31 billion).
During the Q1 2019, deposits and balances in customer accounts increased by RUR 216.5 billion (+ 8.9%, $ 3.35 billion) and amounted to RUR 2.688 trillion ($ 41.61 trillion), including funds of organizations increased by RUR 184.6 billion (+ 13.3%, $ 2.86 billion) to RUR 1.571 trillion ($ 24.32 trillion). Deposits and balances in organizations have grown since the beginning of the year by RUR 31.9 billion (+ 3.1%, $ 0.49 billion) to RUR 1.067 trillion ($ 16.52 trillion). At the same time, the balances on current and settlement accounts of customers of the Group increased by 8.2% over the reporting period.
The share of client funds in the total volume of attracted resources increased by the end of the Q1 2019 to 84.7% compared with 81.7% at the end of 2018. The loan to deposit ratio as of March 31, 2019 was 89.3%. Net interest income for the three months of 2019 amounted to RUR 16.7 billion ($ 0.26 billion).
Net commission income in the Q1 2019 remained at the level of the same period of 2018 (RUR 4.7 billion, $ 72.76 million). The ratio of expenses to net operating income before the creation of reserves (Cost / Income) was 52.6% for the Q1 2019.
The Group's net profit for the Q1 2019 amounted to RUR 553 million ($ 8.56 million).
As of March 31, 2019, the Group's own capital (by balance) amounted to RUR 150.2 billion. Capital adequacy ratio N1.0 as of 04/01/2019 (in accordance with the requirements of the Bank of Russia) was 14.7%.
Information: Russian Agricultural Bank JSC (RusAg) is the basis of the national credit financial system, specializing in banking services for agricultural sector in Russia. The bank was established in 2000 and is a key creditor of the country’s agribusiness. It ranks among the top major banks of the country in terms of assets and is one of the leaders of the Russian bank reliability rating. 100% of the voting shares of the Bank belong to the Russian Federation.
