Russian Agricultural Bank
Russian Agricultural Bank (Russian: Россельхозбанк) Russian Agricultural Bank (RusAg) is a 100% state-owned bank regulated by the Bank of Russia. RusAg is one of the leading financial institutions providing lending support to Russian agribusiness.
 | |
Native name | Россельхозбанк |
|---|---|
| Type | Public |
| Industry | Financial services |
| Founded | 2000 |
| Founder | Russian Government |
| Headquarters | Moscow , |
| Services | Banking |
| Revenue | (2020) |
| RUB 2.8 billion (2020) | |
| RUB 1.4 billion (2020) | |
| Total assets | RUB 3.3 trillion (2020) |
| Total equity | RUB 198.5 billion (2020) |
| Owner | Federal Agency for State Property Management (72.4%)[1] |
| Rating | Ba2 (Moody's), BB+ (Fitch) (2017)[2] |
| Website | www |
Russian Agricultural Bank has a unique mandate to act as the State agent to implement the Government’s financial policy in the domestic agribusiness sector. RusAg plays a key role in the implementation of the State Program on Agribusiness Development. The Bank’s development role is based on its good knowledge of the Russian agribusiness sector. RusAg offers a diversified product range designed to satisfy the demand of the target market segment and to match its wide regional coverage. The Bank also engages in other Government sustainability programs focused on social aspects.
Today, Russian Agricultural Bank’s network of 66 regional branches and about 1,300 additional offices covers over 60% of territory of the Russian Federation and is among top 3 largest branch networks in the country. RusAg’s local presence provides a significant marketing advantage and access to regional client base.
Russian Agricultural Bank provides banking services nationwide to over 6.6 million clients. The Bank’s policy is to make the whole range of banking services available to its clients both in urban and rural areas.
In H1 2020 RusAg’s gross loan portfolio went up 7% (+RUB 172 billion) reaching RUB 2.643 trillion. Corporate loans (including loans to customers measured at fair value through profit or loss) rose by 8.2% (+RUB 164.2 billion) from YE2019 and totaled RUB 2.162 trillion. Retail loans grew by 1.7% (+RUB 7.8 billion) to RUB 480.8 billion from YE2019. Deposits and customer accounts in 6M 2020 grew by 1.8% (+RUB 44 billion) and added up to RUB 2.530 trillion. Corporate customer accounts amounted to RUB 1.284 trillion, retail deposits and customer accounts grew 4.6% (+RUB 54.7 billion) from YE2019 and amounted to RUB 1.246 trillion.
The share of customer funding in the RusAg’s total liabilities stood at 81.8%. The Bank’s loan-to-deposit (LTD) ratio stood at 104% as at 30 June 2020.
As at 30 June 2020 RusAg’s assets totaled RUB 3.293 trillion (+2.4% or RUB 77.2 billion).
In H1 2020 net interest and fee and commission income grew by 7.5% to RUB 47.8 billion from RUB 44.5 billion year-on-year. Net interest margin stayed flat year-on-year. In the reporting period, the Bank’s Cost/income ratio (operating expenses divided by net operating income (before allowance for credit losses)) stood at 56%.
In H1 2020 RusAg earned a net profit of RUB 1.4 billion.
The Bank’s equity amounted to RUB 198.6 billion as at 30 June 2020.
Russian Agricultural Bank is among top ten banks of the Russian Federation and ranked No. 224 among Top-1000 banks globally in terms of Tier 1 capital according to the July 2020 issue of “The Banker” magazine.
History
Modern agribusiness production systems are capital intensive. As such, a large portion of capital used in agribusiness is borrowed. Credit is necessary to facilitate input purchases and can be a significant cost of production. The availability and use of credit plays a significant role in the sustained profitability of agribusiness enterprises.
The agrarian credit system in Russia goes back to 1882 when the first specialized banks –‘Peasant Land Bank’ and ‘Gentry Land Bank’ – were established. During the Soviet period about 90% of all long-term loans were extended to agribusiness. At that time the sector included 35,000 offices all over the USSR and employed 110,000 people.
Russian Agricultural Bank (RusAg) was set up in 2000 under the special Decree of the President of the Russian Federation with the mission to be the conductor of the state credit and financial policy in agribusiness sector, to facilitate a strong performance by clients, to invest in the core businesses and technology and to be the basis of the national credit and financial system of agribusiness in the Russian Federation.
100% of RusAg’s shares are controlled by the Russian Federation acting through the Federal Agency for Managing State Property which holds the Bank’s issued and outstanding ordinary shares (78.66% from total share capital (31 December 2018: 77.11% from total share capital)), the Ministry of Finance of the Russian Federation which holds the Bank’s issued and outstanding preference shares (5.69% from total share capital (31 December 2018: 6.1% from total share capital)) and the State Corporation “Deposit Insurance Agency” which holds the Bank’s issued and outstanding preference shares (15.65% from total share capital (31 December 2018: 16.79% from total share capital)).
Since its establishment in 2000, Russian Agricultural Bank has made considerable efforts to grow from the unknown newly established Bank to one of the top 5 financial institutions of the Russian Federation. It has established one of the largest branch networks in the country and became a leader in agribusiness lending. Through its regional branches and additional offices RusAg offers a highly varied range of financial services and products. Such a position nearby its broad customer base coupled with the diversity of its activities enables RusAg to achieve stable results and to respond to the changing needs of its clients.
References
- "Список аффилированных лиц". e-disclosure.ru. Retrieved 28 August 2017.
- "Рейтинг банков - 2017 (таблица)". Forbes.ru. 23 March 2017. Retrieved 1 May 2017.
Annual report 2019 https://www.rshb.ru/en/investor_relations/annual_reports/
Meeting with Rosselkhozbank (Russian Agricultural Bank) Board Chairman Boris Listov http://en.kremlin.ru/events/president/news/64248
Russian Agricultural Bank from Moscow, Russia is ranked in the Top 1000 World Banks by Tier 1 2020 https://www.thebankerdatabase.com/index.cfm/banks/3944/Russian-Agricultural-Bank
Russian Agricultural Bank shrugs off crisis thanks to specialist focus https://www.reuters.com/article/health-coronavirus-russia-agribank-idUSL8N2D84KI
Russian Agricultural Bank to get $137 million capital injection https://www.reuters.com/article/russia-banks-agribank-idUSL8N2CU60Y