Rosselkhozbank has reported a noteworthy increase in its net interest income, showcasing the bank's solid financial performance in the latest quarter. According to the bank, the net interest income after deducting reserves surged by 21.2%, reaching a substantial 99.65 billion rubles. This impressive figure reflects the bank's ongoing efforts to enhance profitability amidst a competitive financial landscape.
Additionally, the bank observed a 3% increase in its net commission income, amounting to 22.32 billion rubles. The additional income also stemmed from revaluation of currency and operations involving financial instruments, contributing 19.4 billion rubles to their overall financial gains. Such strategic maneuvers have allowed Rosselkhozbank to further solidify its position in the banking sector.
Administrative expenses increased by 9% to 87.46 billion rubles, which the bank attributed to investments in operational efficiency and service improvements. Despite higher expenses, the net interest margin played a pivotal role, sitting at 2.7%, showcasing effective income management relative to interest-bearing assets.
On the asset management front, Rosselkhozbank experienced a 17% increase in total assets, which now stand at 5.57 trillion rubles. The loan portfolio, excluding reserves, reflected a healthy 13% growth, amounting to 4.15 trillion rubles, emphasizing the bank's focus on expanding its lending activities.
Breaking down the loan distribution, loans to legal entities saw a robust growth of 15%, reaching 3.57 trillion rubles. In contrast, the retail loan portfolio experienced a smaller increase of 2.3%, totaling 580 billion rubles. However, consumer loans witnessed a noticeable decline of 25.2%, decreasing to 110 billion rubles. Meanwhile, the mortgage segment performed well, with the portfolio expanding by 12% to reach 470 billion rubles.
Additionally, the bank reported significant improvements in its risk profile, notably in loan loss provisions. Expenses associated with these provisions were remarkably reduced by 30%, dropping to 33 billion rubles. This strategic reduction reflects the bank's commitment to prudent financial management and risk mitigation.
Moreover, the ratio of overdue debt decreased significantly from 3.1% to 2.2%, while the cost of risk was also reduced from 1.2% to 0.8%. These metrics illustrate Rosselkhozbank's effective strategies in managing credit risk and enhancing the overall quality of its loan portfolio.
On the deposits side, there were favorable trends as well. Deposits and current accounts held by the population increased by 12.4%, totaling 2.17 trillion rubles. Concurrently, deposits from legal entities surged by an impressive 27.6%, reaching 1.62 trillion rubles, evidencing growing trust from businesses in the banking institution.
However, not all segments performed uniformly. Deposits from government bodies saw a decline, dropping from 377 billion rubles to 318 billion rubles, indicating potential shifts in government funding strategies. This change, while impactful, highlights the adaptability of Rosselkhozbank in the face of evolving economic conditions.
In conclusion, Rosselkhozbank's financial report showcases a strong performance marked by significant gains in net interest income, growth in assets, and an improved risk profile. As the bank navigates through challenges in various loan segments, the current financial indicators point towards a bright future, with continued efforts to maintain operational efficiency and customer trust.
