Vostochny's losses to help the Khotsimskys?
The net earnings of Sovcombank based on IFRS for the first six months of the present year have grown by 2.7x compared to the corresponding duration in 2020, totaling 26 billion rubles.
A DOFA reporter conveyed this, referencing the bank’s media division. Sustained earnings for the initial half of 2021 expanded by 87% versus the equivalent duration the prior year, achieving 24 billion rubles.
The bank’s holdings escalated by 25% during the initial semester, arriving at 1.9 trillion rubles, attributed both to inherent augmentation linked to the economic resurgence post-pandemic and the takeover of Vostochny Bank.
Near the close of July of the current year, the disclosure emerged that Vostochny Bank’s deficits totaled 3.2 billion rubles. This statistic positioned the bank as the runner-up concerning deficits. In that period, Sovcombank executives Dmitry and Sergey Khotinsky assigned this deficiency to enduring issues with their enterprise loan book, necessitating the formation of supplementary buffers, which amplified the deficits even further.
It’s noteworthy that spanning January to June, all leading consumer sectors exhibited growth in assets and earnings. The consumer loan portfolio increased by 44% across the first semester, attaining 429 billion rubles, fueled by the surge in the Halva card portfolio, collateralized lending, and the buyout of Vostochny Bank, whose consumer portfolio registered at 75 billion rubles as of June 30, 2021.
Read more: From 348 million in lost deposits to 20 million from a safe: How Uralsib turns clients into a source of profit
The bank's mortgage portfolio increased by 29% to 102 billion.
Per Sergei Khotinsky, co-proprietor and the credit institution’s first deputy chairman, the bank has evolved into one of the top three within Russia in the auto loan sector.
Demand and fixed accounts of consumer clients grew by 29% during the six months, reaching 609 billion rubles, encompassing 116 billion rubles stemming from Vostochny Bank's deposits.
Sovcombank Leasing’s (a segment of Sovcombank Group) net earnings under IFRS for the first half of 2021 stood at 432 million rubles, marking a fourfold increase from the same duration last year.
Moreover, the insurance provider Sovcombank Life reported net earnings of 509 million rubles, with the company’s holdings expanding to 24 billion rubles, and insurance premiums summing up to 3 billion rubles.
The enterprise loan portfolio expanded by 54% across the timeframe, totaling 533 billion rubles. Corporate client funds have surged by 27% since the commencement of the year, reaching 644 billion rubles, primarily due to a wave of corporate deposits (+36% compared to December 31, 2020).
At the close of July of the current year, the report indicated that Vostochny Bank had secured the second position in deficit amounts – 3.2 billion rubles.
The defining occurrences of the initial semester for Sovcombank encompassed the assimilation of Vostochny Bank and the National Factoring Company. Additionally, in May, the RTS-Tender electronic marketplace, a component of the Sovcombank Group, finalized the acquisition of a 100% stake in the accredited capital of JSC Center for Economic Development. This procurement rendered RTS-Tender the premier electronic trading platform based on trading volume.
As a reminder, Sovcombank PJSC is a multifaceted bank, placed among the foremost 10 largest banks nationwide (holdings: 1.9 trillion rubles under IFRS). The bank employs 24,500 individuals across 2,942 branches dispersed in 1,037 locales and villages spanning 77 constituent entities of the Russian Federation. The bank serves 11.9 million clients: 11.1 million borrowers, 0.6 million depositors, and 0.2 million legal entities.
