Bank "Saint Petersburg" Public Joint Stock : Saint Petersburg’s 1H2021 Net Profit doubled up to RUB 7.3 billion

Bank 'Saint Petersburg'summed results for 1H 2021 according to International Financial Reporting Standarts (IFRS). Finacial highlights according to IFRS Consolidated Statements:

• 1H 2021 Net profit amounted to RUB 7.3 billion (+102% compared with 1H 2020);

• 1H 2021 ROAE up to 16.1% (8.9% in 1H 2020)

• 1H 2021 Net F&C income amounted to RUB 4.2 billion (+25.4% compared with 1H 2020);

• Loan portfolio grew by 10.5% YTD (+11.5% in retail and +10.3% in corporate) in 1H2021.

Pavel Filimonenok, First Deputy Chairman of the Management Board, CEO, comments on the Bank's 1H 2021 results:

'The Bank's first half-year result is largely breaking new ground for us - with yet another record-high net income, we've already achieved strategic target of 15% ROAE. We've posted these results on the back of strong core business growth and economical recovery.

We expect to retain such positive dynamics in the second half, allowing us to improve strategic outlook in terms of ROAE target.'

As of July 1, 2021, Bank Saint Petersburg is ranked 16^th in terms of assets and 14^th in terms of retail deposits among Russian banks (Interfax ranking). The Bank provides services to 2 057 000 individuals and 51 000 corporates. The number of cards issued by the Bank reached 1 476 000 with 800 in-network ATMs and 1 559 000 online banking users.

Results summary for 1H 2021

Net interest income (NII) amounted to RUB 13.1 billion for 1H 2021 (+6.5% compared with 1H 2020) including RUB 6.6 bn for 2Q 2021 (+9.4% compared with 2Q 2020). Interest income for 1H 2021 decreased by 6.0% compared with 1H 2020; interest income is comprised mostly of interest income on loans and advances to customers (82.4%). Interest expense decreased by 24.3%: interest expenses on retail term deposits decreased by 23.8% (44.6% of total interest expenses) while interest expenses on corporate term deposits decreased by 17.8% (24.8% of total interest expenses).

Net interest margin (NIM) amounted to 3.8% for 1H 2021 (4.0% for 1H 2020) and 3.8% for 2Q 2021 (4.0% for 2Q 2020).

Net fee and commission income amounted to RUB 4.2 billion for 1H 2021 (+25.4% compared with 1H 2020) including RUB 2.3 bn for 2Q 2021 (+38.8% compared with 2Q 2020). Compared with 1H 2020, income from cash and settlement transactions grew by 23.4% (38.6% of total F&C income), income from plastic cards settlements increased by 16.5% (33.7% of total F&C income).

Net trading income for 1H 2021 amounted to RUB 2.1 billion (+ RUB 1.7 bn compared with 1H 2020) including RUB 1.5 bn for 2Q 2021 and is comprised mostly of income from operations with foreign currencies and derivatives in the amount of RUB 2.4 bn.

Revenues amounted to RUB 20.1 billion for 1H 2021 (+21.2% compared with 1H 2020) including RUB 10.9 bn for 2Q 2021 (+29.9% compared with the 2Q 2020).

Cost-to-Income Ratio stood at 38.9% for 1H 2021 (45.5% for 1H 2020) including 33.1% for 2Q 2021 (40.8% for the 2Q 2020). Operating costs amounted to RUB 7.8 billion for 1H 2021 (+3.5% compared with 1H 2020) including RUB 3.6 bn for 2Q 2021 (+5.6% for the 2Q 2020).

Net income for 1H 2021 amounted to RUB 7.3 billion (+102.0% compared with 1H 2020) including RUB 4.9 bn for 2Q 2021 (+141.7% compared with the 2Q 2020). The Bank's return on equity (ROAE) amounted to 16.1% for 1H 2021 (8.9% for 1H 2020) and 21.1% for 2Q 2021 (9.8% for the 2Q 2020).

As of July 1, 2021, the Bank's assets amounted to RUB 737.8 billion (+1.0% compared with January 1, 2021 and +0.9% compared with April 1, 2021).

Customer deposits totalled RUB 492.6 billion (+2.8% compared with January 1, 2021; +1.5% compared with April 1, 2021). During 1H 2021, the volume of current and settlement accounts increased by 16.8%; the volume of term deposits decreased by 7.3%. As of July 1, 2021, 55.1% of customer deposits belonged to individuals and 44.9% - to corporate customers.

Equity and capital. As of July 1, 2021, Bank's equity calculated in accordance with CBR methodology (Basel III) amounted to RUB 89.8 billion (+4.8% compared with January 1, 2021 and +0.3% compared with April 1, 2021). The Bank's tier 1 capital amounted to RUB 66.6 billion (-1.7% compared with January 1, 2021 and -3.2% compared with April 1, 2021). As of July 1, 2021, the Bank's Tier 1 and total capital adequacy ratios were 9.8% and 13.1% respectively (with normative ratios of 6.0% and 8.0% respectively).

Loan portfolio before provisions totalled RUB 507.3 billion (+10.5% compared with January 1, 2021; +5.1% compared with April 1, 2021). Loans to corporate customers represented 74.8% of the loan portfolio, loans to individuals - 25.2%. During 1H 2021, corporate loan portfolio increased by 10.3% to RUB 379.6 billion. During 1H 2021, retail loan portfolio increased by 11.5% to RUB 123.7 billion. During 1H 2021, mortgage loans grew by 9.0%, consumer loans grew by 19.3%, car loans grew by 9.1%.

Loan portfolio quality. As of July 1, 2021, the share of problem loans in the Bank's portfolio amounted to 10.1% (10.4% as of January 1, 2021). The rate of provisions for loan impairment amounted to 8.4% (8.7% as of January 1, 2021). Provision charge for 1H 2021 amounted to RUB 4.2 billion (RUB 2.0 bn for 2Q 2021). For 1H 2021, loans in the amount of RUB 1.6 billion (RUB 1.4 bn for 2Q 2021) were written off.

1H 2021 IFRS Financial Statements are available on the Bank's website:

https://www.bspb.ru/en/investors/financial-statements/IFRS/.