The largest banks increase assets

newsletter 13/08/2014

In spite of the policy on «clearance» of the banking sector from shady credit organizations, carried out by the Central Bank, and weak enough macroeconomic indicators of the beginning of the year, the banking sector presents double-digit growth rates.

Events in the Ukraine also have their impact on the banking community. Sanctions, introduced by the USA toward a number of the largest credit institutions (Bank Rossiya, Gazprombank), which also forbid them to take on credits in the west, have led to consolidation of their assets and guarantees of support of the state. Increased worries of the public toward depreciation rates of the national currency have initiated a substantial growth of mortgage lending.

There are 821 operating banks in Russia (except non-banking credit companies and banks with revoked license) as of the 1st July 2014. The sum of their assets has reached 60 096 433,1 mln RUB, what is by 19% more than the similar period of the previous year (50 521 972,9 mln RUB). Besides 429 of them are registered in Moscow with total assets 47 329 535,7 mln RUB, or 78,8% of assets of all banking sector of the country. This fact points to over-centralization of financial flows in the capital. The Assets of Saint-Petersburg banks – next region on this indicator - 7 832 354,0 mln RUB, or 13% from all assets. Regional banks accumulate only 8,2% of assets.

Except centralization, the banking sector of Russia is characterized by a high concentration level – 78,5% of assets are accounted for the first TOP-30 banks, besides the leader’s share – of the Savings Bank of Russia – is 29,7%.

Among TOP-30 for the expired year following banks have increased their assets most of all: Natsionalny Kliringovy Tsentr (+268,7%), FK Otkrytie (+45,1%), VTB 24 (+35,9%), however MDM Bank, Uralsib and KHKF Bank have decreased their assets by 2,5%, 13,5% and 14,5% respectively.

Financial result of activity – the sum of net profit (loss) after taxation – is extremely non-uniform in the banking sector, Sberbank Rossii (the Savings Bank of Russia) has fixed the decrease of profit by 2,8% up to 186 416 mln RUB, what hadn’t prevented it from remaining a leader also on this indicator, on the other hand Bank Moskvy (Bank of Moscow) has increased profit by 653,9% up to 12 437 mln RUB.

The total capital of 821 banks of Russia as of the 1st July 2014 has reached 6 931 101,3 mln RUB, what is by 11,9% more than the similar value of the previous year. Among TOP-30 following banks had been most of all successful in increasing of the capital: Natsionalny Kliringovy Tsentr (+102,6%), Binbank (+35,9%) and VTB 24 (+31,6%).

Table 1. TOP-30 banks on value of assets, their capital and net profit (loss) ratio
NameAssets as of 1.07.14 in mln RUBChange by 1.07.13 in %Net profit (loss), as of 1.07.14 in mln RUBChange by 1.07.13 in %Capital as of 1.07.14 in mln RUBChange by 1.07.13 in %
1 Sberbank Rossii 17 853 466 20,8 186 416 -2,8 2 085 597 14,2
2 VTB 6 421 716 27,3 57 955 26,3 624 500 -6,2
3 Gazprombank 3 814 396 18,5 22 164 88,8 378 418 2,5
4 VTB 24 2 374 047 35,9 10 747 3,8 227 532 31,6
5 Bank Moskvy 2 067 123 28,0 12 437 653,9 146 870 -9,7
6 Rosselkhozbank 1 883 096 5,4 1 014 3,0 242 379 24,3
7 Alfa-Bank 1 608 017 13,4 16 072 5,3 214 144 15,4
8 FK Otkrytie 1 010 146 45,1 5 022 152,0 113 734 22,7
9 Yunikredit Bank 947 737 18,9 5 695 12,1 131 098 10,5
10 Natsionalny Kliringovy Tsentr 933 306 286,7 4 318 49,5 33 200 102,6
11 Promsvyazbank 797 326 7,0 3 008 -24,6 95 110 6,9
12 Rosbank 774 233 5,7 3 453   89 934 4,3
13 Raiffaizenbank 751 606 7,3 9 248 21,7 88 975 10,4
14 Moskovsky Kreditny Bank 493 715 31,7 5 555 66,6 63 754 20,4
15 Bank "Sankt-Peterburg" 468 301 16,3 3 067 179,0 49 908 13,5
16 Rossiya 446 231 21,3 4 022 26,1 н.д. -
17 Russky Standart 413 515 10,3 1 540 22,7 н.д. -
18 AK Bars 392 959 11,7 184 -45,6 49 608 1,1
19 Uralsib 374 796 -13,5 1 054 280,9 48 209 -6,1
20 Sitibank 353 356 1,9 2 940 -11,3 53 119 -1,1
21 MDM Bank 351 045 -2,5 558   34 364 -5,1
22 Khanty-Mansiisky Bank 348 576 9,3 1 299 38,9 41 828 6,5
23 Svyaz-Bank 342 909 20,2 841 99,9 42 244 4,2
24 KHKF Bank 341 127 -14,5 703 -85,3 58 806 2,1
25 Nordea Bank 305 673 13,2 4 056 161,3 34 925 14,1
26 Bank Zenit 266 626 11,6 522 123,0 35 122 7,3
27 Petrokommerts 265 285 7,2 2 246   21 470 -14,9
28 Vostochny 261 344 4,2 -1 309 -332,1 32 376 13,4
29 Globeks 257 246 8,4 -2 121   33 595 -9,6
30 Binbank 246 180 24,8 583 56,8 29 908 35,9

Processes, occurring inside the country, as well as deteriorating geopolitical environment, leads to that we observe a new restructuring of the banking sector. Shady credit organizations, which do not comply with standards of the Central bank and conduct illegal money-laundering transactions, withdraw from the market. Forming Eurasian Economic Union will open up new possibilities for our financial institutions for business operations in Belorussia and Kazakhstan. Creation of the national payment system should lead to that banks will emit and serve domestic bank cards inside the country, what, anyway, will expand their business.