PROMSVYAZ : PSB Publishes Preliminary 2016 RAS Results

According to preliminary financial reports under the Russian Accounting Standards (RAS), net profit of Promsvyazbank (PSB) for 2016 amounted to RUB12.1 billion, compared to a profit of RUB10.9 billion for the previous year1. The net profit was driven by an increase in interest and fee and commission income, essentially in the second half of the year, against the background of the expansion of high-quality customer business volumes and an inflow of new customers, and recovery of provisions on some loans, which were fully or partially repaid in 4Q'16.

PSB preliminary RAS results for the first 11 months of 2016 were audited by the Bank's auditors PricewaterhouseCoopers Audit, enabling to include 11M net profit into core capital. As at 1 January 2017, capital adequacy ratios including buffers for systemically important financial institutions were well above minimum regulatory requirements (N 1.1.: 6.75%, N1.2.: 8.1%, N1.0.: 13.45%).

In terms of customer segments, the SME segment was the most important growth generator in 2016. The number of active SME customers increased to 184 thousand. A continuing inflow of new customers and deepening cooperation with the existing loyal customer base drove an increase in demand deposit balances for the year by more than 30%, and fees and commission growth according to bank's management accounts in 4Q'16 vs 4Q'15 exceeded 50%.

PSB liquidity remains traditionally strong. N2 and N3 ratios were 108.18% and 139.72%, respectively. PSB complies with the short-term liquidity requirement and its prescribed increase for systemically important banks from 70% to 80%.

PSB Deputy Chairman of the Management Board, CFO Vladimir Mamakin: «We view both Q4 and full-year results as a success. PSB delivered growth across all key business segments, while maintaining liquidity and operating costs at a comfortable level. 2016 milestones include successful implementation of the strategic projects - consolidation of Pervobank and bail-out of Avtovazbank. PSB complies with minimum regulatory requirements for systemically important financial institutions with a significant margin.

The professional community acknowledges our success. Specifically, PSB has been recognized as the best bank in Russia in the field of cash management in 2016, according to the international financial magazine Euromoney. PSB mobile bank for SME customers entered the top 10, according to the research agency Markswebb Rank & Report, while PSB Internet Bank has been recognized as Russia's best by Global Business Outlook magazine in 2016. In addition, PSB won the SPEAR'S Russia Wealth Management Award 2016 in the category «Best Service in Private Banking and Wealth Management».