Russian Standard Bank

At the beginning of 2018, the bank has one of the largest acquiring networks in the country. The bank is an issuer of cards of the largest payment systems in the world: VISA International, Mastercard WorldWide, American Express, Diners Club international. Among the first in Russia, the bank launched modern mobile payment services, providing customers with additional advantages of these convenient, fashionable and innovative technologies. The Russian Standard relies on the development of settlement services, high-tech financial services and offers solutions in the field of payments and transfers, as well as various remote channels.

Rustam Tariko is the main shareholder of Russian Standard Bank.

Performance indicators

2022: Profit - 6.1 billion rubles

Russian Standard Bank completed 2022 with a net profit of 6.1 billion rubles received during this period, while in 2021 there were net losses of 1.6 billion rubles. This is stated in the financial statements, which the credit institution disclosed in April 2023.

According to Interfax, citing materials from the Russian Standard, in 2022 the bank restored loan reserves by 4.4 billion rubles, while in 2021 the cost of reserves amounted to 7.6 billion rubles. The bank also restored reserves for other losses in 2022 - by 0.5 billion rubles (in 2021, expenses on such reserves amounted to 9.7 billion rubles).

"Russian Standard" earned 6.1 billion rubles of profit for the year

The bank's loan portfolio after deducting reserves in 2022 decreased by 4.2% (4.1 billion rubles) to 93.1 billion rubles. Assets as of December 31, 2022 amounted to 224.8 billion rubles, having decreased by 5.4% over the year.

Net interest income before reserves in 2022 decreased 2.3 times to 7.8 billion rubles, after reserves increased by 21.6% to 12.1 billion rubles. Commission income in 2022 increased by 6.9% to 15.3 billion rubles, commission expenses - by 26.3% to 11.6 billion rubles.

The bank in 2022 reduced operating expenses by 4.6% to 15.7 billion rubles. Customer funds in 2022 decreased by 24.6% to 140.5 billion rubles.

The press service of the Russian Standard stressed that the impact of the relaxation of the Central Bank of the Russian Federation on the bank's financial performance was insignificant. The restoration of reserves is associated with the repayment of assets, added to the credit institution.

The rating agency Expert RA revised the rating of Bank Russian Standard in connection with a change in methodology and assigned a rating at ruB +, a developing forecast was established according to the rating. Earlier, the bank had a rating of ruBB- with a stable forecast^[1]

2019

IFRS profit growth to RUB 8.6 bln

At the end of 2019, the Bank of Russian Standard increased profit under IFRS, exceeding 8.6 billion rubles. The bank announced this on June 3, 2020. For the third year in a row, the bank demonstrated profit growth (8.5 billion rubles for 2018, 2.4 billion rubles for 2017), which confirms the reliability, efficiency and stability of the selected business model. At the same time, the bank maintains a high return on capital: RoE in 2019 and 2018 - over 30%.

The portfolio of loans to individuals of the Russian Standard increased by 10.9 billion rubles. (14%) compared to December 31, 2018.

The steady growth of the loan portfolio as a whole, while maintaining its consistently high quality, indicates the success of the bank's business development strategy. Let me remind you that the low-risk business model of the Russian Standard does not imply an explosive growth in sales of credit products. The goal is a smooth, sustainable growth of a high-quality loan portfolio. The correctness of the choice of this strategy was also confirmed in the current situation of the pandemic, when a careful approach to assessing borrowers comes to the fore, comments Chairman of the Board of Russian Standard Bank Alexander Samokhvalov.

According to IFRS, the net interest income of Russian Standard Bank at the end of 2019 increased by 4.8 billion rubles. (25%). Interest income amounted to 41.0 billion rubles, which corresponds to an increase of 9% compared to the result of 2018. Interest expense amounted to 16.6 billion rubles, which is 8% lower compared to a year earlier.

At the end of 2019, net interest margin increased from 8.2% to 10.6% compared to the previous year.

In the context of a significant increase in the issuance of consumer loans to the population, there was practically no increase in operating expenses. Maintaining a policy of strict cost control allowed maintaining operating expenses at the end of 2019 almost at the level of previous years, allowing a slight increase of 4% (compared to 2018), they amounted to 15.6 billion rubles. Maintaining the Bank's expenses at the same level became possible, including due to the optimization of business processes and a balanced approach to business development.

A slight increase in the value of risk in the portfolio of individuals by the end of 2019 to 4.6% compared to 3.9% in 2018, combined with a noticeable increase while maintaining the quality of the portfolio, indicates the success of the bank's business development strategy.

In terms of debt recovery, the bank traditionally focused on the development of its own Collection service, which, combined with the optimization of credit procedures, made it possible to stabilize NPL's share. The share of overdue debts at the end of 2019 in the portfolio of individuals practically did not change, amounting to 7.9% compared to 7.4% at the end of the previous year. At the beginning of June 2020, NPL's coverage with reserves at Russian Standard Bank is one of the highest on the market and amounts to 162%.

In 2019, Russian Standard Bank fully repaid a subordinated loan in the amount of 5 billion rubles received in 2009 from ВЭБ.РФ, which was further evidence of the financial stability and effectiveness of the bank's business model.

The bank is focused on deposits of individuals as the main source of funding, and uses repo transactions to maintain short-term and medium-term liquidity. As of June 3, 2020, Russian Standard Bank has a significant liquidity reserve for business development.

Russian Standard Bank relies on the current customer base - more than 29 million people. A serious point of growth of the portfolio, as well as a guarantee of its quality, are secondary sales to customers already known to the bank. Thus, in consumer loans and credit cards, the bank focuses on pre-approved offers to customers with good payment discipline.

Шаблон:Quote 'author = notes Chairman of the Board of Russian Standard Bank Alexander Samokhvalov.

Within the framework of the conservative business model, Russian Standard Bank is neatly increasing the volume of consumer loans issued. In general, the volume of consumer loans issued in 2019 at Russian Standard Bank increased by 4.1% compared to 2018. More than 377 thousand consumer loans were issued for a total amount of more than 53.3 billion rubles. The amount of credit turnover on bank cards in 2019 exceeded 60.6 billion rubles. The portfolio of raising funds from individuals is maintained at a sufficient level - its volume exceeded 168 billion rubles. (as of January 1, 2020) for the group.

The past year 2019 was a highlight in the key areas of the Russian Standard Bank's work: business victories, which were also marked by the growth of the portfolio, the introduction of innovations that are changing the financial technology market. Among them, such noticeable as: biometric acquiring - this is a service for paying for purchases in stores using face recognition technology, which we introduced together with the company. " Rostelecom In addition, in 2019, Russian Standard Bank conducted the first transaction Russia in through a solution - SoftPOS this technology turns an ordinary smartphone online cashier with the function of accepting non-cash payments with cards or other devices. Together with the international payment system Visa Russia , many others launched a cashless tip payment service, says Alexander Samokhvalov, Chairman of the Board of Russian Standard Bank.

The first test transaction in Russia using a QR code was carried out through the Fast Payment System by Russian Standard Bank. Since August 2019, Russian Standard has been actively connecting its clients - legal entities, to the QR code payment service through the SBP. During this time, many well-known companies have introduced a payment tool into their work. And for individuals, transfers through the SBP became available even earlier.

In 2019, the Mobile Bank of the Russian Standard learned to do all popular operations with QR codes. The RSB Mobile application of Russian Standard Bank expands the possibilities of using QR codes, which are gaining rapid popularity in Russia, shared by Alexander Samokhvalov.

Online card shopping growth by 206%

On March 17, 2020, the Russian Standard reported the results of the study of consumer activity Russians for to cards everyone banks in its network Internetmerchant acquiring. According to to data the bank for 2019, the turnover and the number of purchases e-commerce in almost tripled.

The growing interest of the population in convenient purchases on the Internet is confirmed from year to year by the statistics of the Russian Standard Bank. So, for example, in 2019, the total number of online transactions on all cards compared to 2018 increased by 206%. Total online shopping turnover in 2019 increased by 182% compared to 2018, while in 2018 - by 47% compared to 2017. Prior to this, a surge in card payments in online trading occurred in 2014, it amounted to 127.1%. In subsequent years, growth in this segment was not so strong - in 2015 48.3%, and in 2016 - 39.5%.

In parallel with the increase in the number of online purchases from the population, the penetration of Internet acquiring is also growing dynamically, which in recent years has been actively taking away the share of classical trading acquiring. Thus, according to the Bank of Russian Standard, in 2019, e-commerce accounted for 39% of the total trade (ground) acquiring, while in 2018 - 13.5%. As a comparison, in 2017 this share was 8.5%, and in 2016 - 5.5%.

It is worth noting that the average check of one online purchase, according to the Russian Standard Bank, has decreased. So, in 2019 it amounted to 1862 rubles, while in 2018 it was 2021 rubles.

Among the priorities in its development, the Bank Russian Standard sets innovative improvements in acquiring, including in the e-commerce sector. For example, in 2019 alone, the bank introduced a number of profitable solutions to the market. From the mobile application Link in app for quickly accepting online payments with bank cards to the possibility of online purchases using a QR code using SBP technology. We do not see any obstacles to the further growth of Internet acquiring and expect that the market growth rate will be about 20-30% per year, emphasizes Inna Emelyanova, Director of Acquiring Department of Bank Russian Standard

Among the current and profitable innovative solutions for SMEs is mCassa equipment, which is a mobile POS system based on Android, which works on the principle of "All in One." It provides acceptance of payments at a retail outlet or at a courier, including all the necessary functionality for conducting both cash and non-cash transactions. The software of the mobile POS system makes it possible to create a catalog of goods and services and form a shopping cart for the buyer. The system allows customers of a retail outlet participating in a loyalty program to provide discounts and privileges.

Another example is SoftPOS technology. So, in October 2019, the provider of payment solutions INPAS and Bank Russian Standard made the first payment through a smartphone with SoftPOS technology. The technology turns a regular smartphone into a full-fledged online cashier with the function of accepting cashless payments with cards or other devices. The first recipient of payment through SoftPOS technology was the Ronald McDonald House charitable foundation.

Owners small business can use this solution in accordance with, 54-FZ despite the fact that there is no need to even buy trading acquiring. The smartphone itself with built-in SoftPOS technology and cash will ON cost entrepreneurs less than tablet online cash desks and will become a more convenient, pocket-sized solution.

Growth of turnover in the bank's Internet acquiring network by more than three times in the 1st half of the year

On August 15, 2019, Bank Russian Standard announced that it had studied statistics data on the growth dynamics of online operations performed on to cards all banks in its Internetmerchant acquiring network. Online shopping Russians activity more than tripled between January and June 2019.

According to the Russian Standard Bank, the growth in turnover in Internet acquiring amounted to 255% (compared to the same period in 2018), and the total number of online transactions increased by 283%. The turnover of online card purchases, for comparison, in 2018 increased by 47% compared to 2017. And before that, the surge in card payments in online trading occurred in 2014, it amounted to 127.1%. In subsequent years, growth in this segment was not so strong - in 2015 48.3%, and in 2016 - 39.5%.

The penetration of Internet acquiring is increasing quite actively, we can say that online payments in e-commerce confidently take part of trading acquiring. Thus, according to a study by the Russian Standard Bank, Internet acquiring accounted for 5.5% of total trade (ground) acquiring in 2016, 8.5% in 2017, 13.5% in 2018, and 32.3% in the first half of 2019.

At the same time, the average check for online operations decreased by 10%: from 2,316 rubles. in the first half of 2018 to 2,084 rubles. in the same period in 2019. The decrease in this indicator suggests that Russians began to make more small purchases on cards on the Internet.

According to the Russian Standard Bank, in the first 6 months of 2019, the Video Games segment became the most popular for online spending. The average check here is 1,603 rubles. In second and third place - payment for a taxi (402 rubles) and purchases in supermarkets (2 179 rubles) In turn, from January to June 2018, Russians most often paid for online taxi trips. The average amount in this category is 401 rubles. In second and third place was the replenishment of electronic wallets and payment for Internet providers - 450 rubles. and 1,266 rubles, respectively.

In the first half of 2019, the top 5 cities with the most active online buyers look like this:

• Moscow, average check - 2,035 rubles;
• St. Petersburg, 4,763 rubles;
• Kazan, 8,450 rubles;
• Yekaterinburg, 3 191 rubles;
• Sochi, 14,739 rubles.

Such a rapid growth in online payments in e-commerce is associated, among other things, with the connection of companies from the small and medium-sized business segment after making 54-FZ to Internet and mobile acquiring.

History

2021: Appointment of Sergei Berestovsky to the position of Chairman of the Russian Standard

At the end of January 2021, it became known about the appointment of Sergei Berestovoy to the post of chairman of the board of the Russian Standard. Previously, he held the post of first deputy chairman in the bank. Read more here.

2020

The court refused to transfer 49% of the bank to Citibank against debt on bonds

In January 2021, the Moscow arbitration refused to collect 49% of the Russian Standard Bank. Such a demand in court was put forward by London Citibank on behalf of bondholders who provided $450 million to Rustam Tariko's company in 2015.

Waiver of claims by Pala Assets Holding Limited and Aleia Trading

On July 16, 2020, it became known that the Moscow Arbitration Court dismissed the claims of Pala Assets Holding Limited and Aleia Trading Inc against shareholders and members of the board of directors of Russian Standard Bank.

The court concluded that the plaintiffs' claims were unfounded. The Russian Standard Group considers the decision of the Arbitration Court to be fair.

Pala Assets Holding Limited and Aleia Trading Inc are holders of bonds of Russian Standard Ltd., which is located outside the perimeter of Russian Standard Banking Holding and Rust Corporation, while the listed companies have no financial obligations to Pala Assets Holding Limited and Aleia Trading Inc.

In 2017, Russian Standard Ltd. offered Pala Assets Holding Limited to begin negotiations and agree on mutually acceptable repayment terms for all bondholders, but the proposal was not accepted.

In March 2018, Russian Standard Ltd. published an offer to redeem bonds at a value that then significantly exceeded the quotes of these securities, and also held a call with bondholders, many of whom were ready to accept the offer. As of July 2020, the issuer is in contact with all participants in the process and is still open to constructive negotiations for a mutually acceptable settlement of the situation with the entire issue of bonds. At the same time, the market price of bonds is considered the basis for negotiations on redemption.

Connecting to the Digital Profile service

On July 7, 2020, Bank Russian Standard, a member of the FinTech Association, announced its connection to the Digital Profile service.

Thanks to the "Digital Profile" when applying for a loan, you can not enter data manually, but apply autocomplete by logging in through the public services portal. All the necessary information will be downloaded automatically from government systems, which will allow you to perform legally significant actions without the need to provide original documents. The service is available to users of the public services portal who have a confirmed account.

The Bank recalled that in May the Ministry of Digital Development, Communications and Mass Media and the Bank of Russia launched the Digital Profile service into commercial operation. At the FinTech Association site, the banks participating in the project, together with the Association experts, worked out the service concept, business processes, and also formed lists of data necessary to fill out the digital profile of a citizen and provide financial services in a remote format.

As of July 2020, Digital Profile combines 30 types of information about a citizen: passport data, address, TIN, driver's license, place of work, etc. Their person can, at his discretion, provide various organizations online to perform legally significant actions.

Bank Russian Standard always strives to provide customers with the most convenient financial services and technologies. And our connection to the "Digital Profile" will allow customers to significantly simplify and speed up service in the bank, while maintaining a high level of security of operations, - comments the vice-president of the holding Russian Standard Eldar Bikmaev.

Providing an installment plan service for Visa card purchases

On June 1, 2020, Russian Standard Bank announced that it had become an acquiring bank providing an installment plan for to cards international installment plans at payment system Visa store tills.