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Main article: Sovcombank
2024
5th place in terms of IT mortgage issuance
Profit decline of 19% to ₽77 billion
PJSC Sovcombank recorded a decrease in net profit under IFRS by 19% in 2024 to ₽77 billion, which amounted to ₽3,73 per share. The bank published its financial results for 2024 on March 14, 2025.
According to the press service of Sovcombank, the drop in net profit is explained by significant one-time revenues in 2023, which were absent in the reporting period, as well as a one-time negative revaluation of the securities portfolio due to market volatility. At the same time, regular net profit (excluding one-time expenses) increased by 19% - from ₽64 billion to ₽76 billion.
Despite the decline in net profit, Sovcombank's revenue showed twofold growth, reaching ₽722 billion (₽395 billion in 2023). This growth was ensured by record volumes of lending, issuing bank guarantees, the development of the insurance business and an increase in commission income.
First Deputy Chairman of the Board of Sovcombank PJSC Sergei Khotimsky noted that the decline in net profit after a record 2023 was expected, given that the bank has historically not been a beneficiary of rate growth, and could not count on a significant result from irregular income on such an increase in rates.
Sovcombank's assets increased by 27% year-on-year and amounted to ₽4 trillion as of December 31, 2024. The growth came from both organic development and takeover deals. The bank's capital grew by 31% year-on-year, reaching ₽390 billion, taking into account subordinated debt of ₽57,8 billion, ₽23,5 billion dividends paid in July 2024, and ₽11,5 billion raised from 51 thousand investors during the IPO in December 2023.
Return on equity (ROE) was 26%, down 19 percentage points from 2023. Net interest margin (NIM) declined 1.1 percentage points to 5.4% and funding value (COF) rose 6.1 percentage points to 13.9%.
In the retail segment, Sovcombank increased revenue by 71% year-on-year to ₽347 billion. The retail loan portfolio grew 61% to ₽1,3 trillion. In the corporate segment, revenue increased 83% to ₽257 billion, while the loan portfolio grew 26% to ₽1,4 trillion.[1]
2023: Record profit - 95 billion rubles
At the end of 2023, Sovcombank's net profit reached 95 billion rubles, which is a record figure in the entire history of the organization. For comparison, in 2022, losses of 18.58 billion rubles were demonstrated. The share capital of the bank grew by 60% - to 264 billion rubles. This is stated in the financial report released on March 15, 2024.
 | In 2023, our bank showed a record financial result. A third of profits were irregular. These are revenues from trading operations that are difficult to predict, "says Dmitry Gusev, chairman of the board of Sovcombank. |  |
In 2023, Sovcombank's assets grew by 46% - to 3.2 trillion rubles. The dynamics is ensured by organic growth, a positive revaluation of the securities portfolio and the takeover of the large insurance company "Inlet Insurance." In 2023, the bank acquired 36 tons of gold from producers (10% of all gold mined in Russia in 2023) and sold them to individuals and exporters.
Sovcombank's retail loan portfolio in 2023 grew by 36% to 796 billion rubles. The increase was demonstrated mainly due to the growth of collateral lending: car loans rose by 65%, mortgage loans - by 36%. The corporate loan portfolio grew by 38%, amounting to 1.1 trillion rubles. Customer accounts and deposits showed an increase of 48% - up to 2.5 trillion rubles. Net interest income rose by 35% and amounted to 139 billion rubles.
Sovcombank's customer base grew to 6.5 million people as of the end of 2023 - thanks to the successful development of retail business and popular products, such as the Halva national installment plan system. The retail chain expanded to 1,886 offices and 982 points of sale: the organization's services are available to customers in 79 regions of Russia. The number of group employees increased by 13% and amounted to 29 thousand people at the end of 2023.[2]
2022: Net profit - 14.2 billion rubles
Net profit of Sovcombank in 2022 amounted to 14.2 billion rubles, having decreased 3.2 times compared to 2021. Such data are provided in the statements of the credit institution under RAS.
As Kommersant notes, Sovcombank managed to maintain a profit that was twice as bad as its own expectations. The bank explained the lag by the fact that "a number of indulgences that had to be abandoned from January [2023] (refusal of a fixed exchange rate and paper quotes) were decided to be removed in December [2022]," the newspaper writes.
| | In 2023, it will be necessary to additionally create several billion reserves. At the same time, taking into account the work already carried out and the planned activities, we hope that we will not have to create reserves for ten years in a row, "said Sergei Khotimsky, First Deputy Chairman of the Board of Sovcombank. | |
The bank's retail portfolio in 2022 grew by 86 billion rubles - to 601 billion rubles, corporate - by 65 billion rubles, to 970 billion rubles. Interest income, having decreased, almost equaled the commission, which, on the contrary, increased significantly. Sovcombank explained this growth by expanding its business, acquiring Vostochny Bank, as well as a wide range of operations both in retail and in corporate business. Expenses on reserves increased by 7.9 billion rubles - to 55.3 billion rubles, of which 51.3 billion rubles - on loans to individuals and legal entities.
The volume of funds of individuals in accounts and deposits increased in 2022 by 30.1%, to 721 billion rubles, and in January another 9 billion rubles were added to them. The funds of companies over the year increased by 22.3%, to 1.15 trillion rubles, but in January they decreased by 52 billion rubles. According to Khotimsky, the main contribution to capital growth was made by retained earnings.[3]
2018
Net profit - 18 billion rubles
Profit from regular business increased by 21% to 23.5 billion rubles. compared to 19.5 billion rubles. in 2017, according to the information letter of Sovcombank.
| | 'Sovcombank has maintained a strong return on capital despite lower market interest rates and intense competition with state-owned banks. Net profit for 2018 amounted to about 18 billion rubles. The reason for the decrease in profit compared to 2017 is a significant decrease in irregular income against the background of growth in income from the main business. In addition, the decline in net profit was influenced by the costs of the Halwa project. The project is developing better than our expectations, but requires initial investment, which will pay off in the next 2 years, 'the letter said. | |
The bank's capital grew by 34% from 85 billion rubles. as of January 1, 2018 to 114 billion rubles. as of January 31, 2018, mainly due to net profit for the year (18 billion rubles), attracting investments in the bank's capital by 10 billion rubles. and the placement of subordinated bonds.
The retail loan portfolio grew by 39% to 190 billion rubles. mainly due to low-risk collateral loans (car loans/mortgages). The corporate portfolio, including loans and bonds, grew by 20% to RUB 577 billion, mainly due to Rosevrobank joining Sovcombank in the second half of 2018.
Joining Rosevrobank. In 2018, the acquisition of 100% of Rosevrobank was completed. Managing shareholders of Rosevrobank - Ilya Brodsky and Andrei Suzdaltsev became shareholders of the combined bank. As a result of the transaction, Sovcombank's assets grew by 187 billion rubles.
| | Dmitry Gusev, Chairman of the Board of PJSC Sovcombank: "In 2018, the Bank was able to successfully and quickly integrate Rosevrobank's business into its structure, having received a significant synergistic effect in all key indicators. Largely thanks to this transaction, as well as a verified and effective strategy, several of the largest foreign sovereign wealth funds became shareholders of the Bank last year. The well-coordinated work of the team and an effective business model allowed us to increase capital by 34%, and assets - by 40%. Sovcombank already provides work for more than 16 thousand people and serves 4.4 million customers in 2.6 thousand offices throughout the country. " | |
The portfolio of Halva cards in 2018 grew from 4 to 17 billion rubles. Since the card entered the market, its portfolio has doubled every 6 months. By the end of 2018, about 2.8 million cards were issued, and Halva's partner network grew to 153 thousand stores.
The bank's customer base increased in all segments: the number of retail clients increased by 38% to 4.4 million people, clients of legal entities - by 18% to 200 thousand. The Bank's branch network grew by 10% to 2,648 offices in 75 constituent entities of the federation. Sovcombank provides access to 514 thousand small and medium-sized businesses to public procurement through its own digital platform.
16th place in terms of assets in Russia - 689 billion rubles
According to the results of the first quarter of 2018, Sovcombank took 14th place in terms of assets in the Interfax-100 ranking prepared by Interfax-CEA.
According to the reporting published on the Central Bank website, as of April 2018, the bank ranks 16th in terms of assets (689 billion rubles), the capital of the credit institution is 70 billion rubles.
The bank's service network includes 2,418 offices (including 2,087 mini-offices) located in 74 constituent entities of the Russian Federation, as well as 4,119 ATMs and cash reception terminals.
The Bank is one of the leaders of the debt market in the field of organizing bond issues, is one of the top 10 car loan banks, and also ranks 3rd in terms of loans to constituent entities of the Russian Federation and municipalities.
The Group serves 2.7 million borrowers (138.3 billion rubles) and 0.5 million depositors (301.5 billion rubles), as well as 170 thousand legal entities (loan portfolio - 80 billion rubles, deposit portfolio - 118, 4 billion rubles). The number of employees is 11,480 people.
Sovcombank provides work for more than 11.5 thousand people.
The reporting on IFRS Sovcombank for 2018 is audited by an international audit company (Ernst & Young Ernst & Young).
2017
Profit 29.5 billion rubles, capital growth by 34% to 85 billion rubles
Net profit of PJSC Sovcombank for 2017 under IFRS amounted to 29.5 billion rubles, and capital grew by 34% to 85 billion rubles. Return on equity (ROE) was 40% in 2017 (41% in 2016).
The bank's assets grew by 22% in 2017, mainly due to the growth of the securities portfolio - by 22%, as well as the growth of the loan portfolio - by 12%. As of December 31, 2017, assets amounted to 689 billion rubles.
Net profit for 2017 decreased by 12% compared to net profit for 2016 due to a smaller revaluation of the securities portfolio in 2017 (RUB 12 billion in 2017 compared to RUB 17 billion in 2016).
Net profit from the regular banking business (i.e. excluding non-recurring income) increased in 2017 by 19% to 20 billion rubles compared to 16 billion rubles in 2016. The growth of this indicator corresponds to the growth of assets. Sovcombank managed to maintain a high profitability of the business, despite a decrease in interest rates on the market. The growth of net interest income in 2017 amounted to 19% (this figure increased from 28 billion rubles in 2016 to 33 billion rubles in 2017), and net commission income - by 41% in 2017 (an increase from 13 billion rubles in 2016 to 18 billion rubles in 2017).
The cost of creating provisions for the loan portfolio decreased in 2017 to 4 billion rubles. from 5 billion rubles. in 2016, and the cost of risk in percentage terms in 2017 decreased to 1.7% (in 2016 - 2.3%). Coverage of bad loans with created reserves increased from 125% in 2016 to 141% in 2017.
| | Sergey Khotimsky, First Deputy Chairman of the Board of Sovcombank PJSC: "At the end of 2017, we note with satisfaction a significant increase in profit from regular operations, including interest and commission income in the retail business. In the market for collateral lending to individuals, the bank entered the top five largest car loan banks and the top 20 mortgage banks, while improving the quality of the loan portfolio. This allowed to maintain the high growth rates of the bank's assets and capital. " | |
In 2017, three rating agencies upgraded Sovcombank's credit ratings.
In July 2017, Moody's upgraded Sovcombank's credit rating to Ba3 on an international scale due to "consistently high financial results and strengthening the bank's business profile."
In October 2017, ACRA raised the bank's credit rating to "A" on the national scale. The agency justified the increase in the credit rating "the consistently high quality of Sovcombank's assets throughout the economic cycle."
In November 2017, S&P upgraded Sovcombank's credit rating to BB- on an international scale due to "an increase in the bank's market share and increased business diversification," as well as "stronger financial indicators than comparable banks, despite unfavorable macroeconomic conditions in Russia."
In September 2017, Fitch Ratings noted Sovcombank's "strong financial performance, in particular, its long history of maintaining assets of high quality and high profitability" and confirmed the bank's credit rating at "BB-." In March 2018, the agency improved its outlook on the Bank's rating from stable to positive.
| | Dmitry Gusev, Chairman of the Board of PJSC Sovcombank: "In recent years, we have managed to assemble a unique team at the Bank, capable of simultaneously solving three most important tasks: profitability, transparency and diversification of assets. Despite the difficult external environment, the bank continues to develop effectively and transparently. Thanks to the verified strategy, following the results of the past year, we were able to increase capital by 34%, and assets - by 21%. " | |
2100 branches in 75 regions of the Russian Federation
At the end of 2017, Sovcombank PJSC is one of the top 20 Russian banks in terms of net assets, has a network of more than 2,100 branches and offices in 75 regions of Russia. The Bank is one of the leaders of the debt market in the field of organizing bond issues, is one of the top 10 car loan banks, and also ranks 3rd in terms of loans to constituent entities of the Russian Federation and municipalities.
Notes
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