Belgazprombank key performance results for 8M 2020

Press office.

On 31 August, Belgazprombank finalized its IFRS financial statements (unaudited) for a 6-month period ended 30 June 2020.

Belgazprombank key performance results for 8M 2020

The period under review was challenging. Operating conditions deteriorated for the banking system due to the fallout from the coronavirus pandemic. Moreover, on 15 June 2020 the National Bank introduced temporary administration at Belgazprombank for a maximum of six months and suspended subsequently the bank’s management board. This regulatory action, not connected with the bank’s financial standing, resulted from the temporary inability of a number of top managers to act and, as the National Bank stated, was aimed at ensuring the bank’s corporate governance and its financial consistency in the absence of the quorum for executive decisions.

The licensing powers of Belgazprombank remain in full force and effect. This authorizes the bank to the fullest extent provided by the Belarusian law to make all types of financial operations, including attracting deposits, providing loans and executing international payments of legal entities and individuals through its correspondent accounts in Belarus and abroad.

Despite the above challenges, during the reporting period the bank’s Basel II Tier 1 CAR and total CAR amounted to 14.2% and 15.6% at end 2Q 2020 falling slightly from 14.9% and 16.8% at end 2019. Still this ensured the bank a comfortable headroom above the regulatory thresholds (4% and 8% respectively) to pursue its strategic objectives, meet requirements of its shareholders, investors, banking supervisory and regulatory authorities. The regulatory capital of Belgazprombank, remaining one of the highest across the banking system, amounted to BYN 750.6 mln (equivalent USD 312.6 mln) at 2Q 2020 decreasing by 8.2% from end 2019.

Following the introduction of the temporary administration Belgazprombank faced increase in the volatility of customer deposits and subsequent pressures on its liquidity. These were effectively managed through deleveraging (loans decreased by 17% in 2Q 2020, net of FX effects, with the trend continuing in July-August) and interbank borrowings in the domestic market, including borrowings from the National Bank amounting to BYN 215 mln in June. The National Bank confirmed its readiness to provide further liquidity support to the bank, if needed.

A set of other measures taken by the bank also helped slow down deposit outflows and stabilized them at BYN 2 193.7 mln (due to customers) at end 2Q 2020 from BYN 3 010.6 mln at end 2019 (decrease by 27.1%). As a result, the growth was recorded in balances on corporate accounts by 5.8% in July and on current accounts by more than 14% in August. Part of deposit outflows was substituted for interbank borrowings (due to banks and other financial institutions) totaling BYN 1 147.4 mln at end 2Q 2020 (up from BYN 884.3 mln at end 2019 or a 29.8% increase).

Traditionally high quality of the bank’s loan portfolio backed its financial position as well. Impaired (IFRS 9 Stage 3) loans were a minor 4.3% of loans while Stage 2 loans amounted to 33,9% of loans at 2Q 2020.

For 6 months 2020 Belgazprombank earned IFRS profit of BYN 15.3 mln (equivalent USD 6,4 mln). In periods to follow as per local GAAP Belgazprombank also was one of the most profitable banks in Belarus making BYN 10.3 mln in July (101% of annual income plan) and BYN 6.6 mln in August (105% of annual income plan).

As per local GAAP as of 1 August 2020 Belgazprombank, meeting all the regulatory requirements, retained its position as one of the largest Belarusian financial institutions by main financial indicators: top 7 by assets, top 6 by income, top 5 by regulatory capital and top 3 by authorized fund. The bank’s profitability was above the Belarusian banking system average: ROAA made 1.9% against the average of 1.3%, ROAE equaled 13.4% against the average of 9.2%. The bank decreased effectively operational costs, which affected positively CIR reducing it to 42.7% against the system average of 46.7%.

For more detailed information, please contact Financial Institutions by or tel. + 375 17 218 36 55.

Fitch Ratings places Belgazprombank’s ratings on watch
Press office.

Fitch Ratings has kept Belgazprombank’s ratings unchanged placing them on watch. The action follows the decision of the National Bank of the Republic of Belarus to introduce on 15 June 2020 (for a maximum six months) the temporary administration at Belgazprombank and suspension of powers of the management board of Belgazprombank for the period of the temporary administration.

Fitch affirms Belgazprombank at ‘B’, Outlook Stable
Press office.

Fitch Ratings affirmed Belgazprombank’s Long-Term Issuer Default Rating (IDR) at 'B' with Stable Outlook.

Belgazprombank 2020 General Shareholders' Meeting
Press office.

The General Shareholders Meeting of Belgazprombank was held on 27 March 2020 and approved the bank’s 2019 performance results. The difficult epidemiological situation in the world caused by the coronavirus pandemic has made its adjustments. The meeting was held using a video conference system.

Fitch Affirms Belgazprombank at "B", Outlook Stable
Press office.
Fitch Ratings affirmed the Long-term Issuer Default Ratings (IDR) of Belgazprombank at 'B' with Stable Outlook.
Belgazprombank 2019 General Shareholders' Meeting held in Minsk
Press office.

The bank's 2019 performance results were approved by the General Shareholders' Meeting of Belgazprombank held on 22 March 2019 in Minsk in the conference hall of Hotel "Europe". The bank's activities in 2018 were aimed at achieving the indicators defined by the Strategic Development Plan for 2017-2020.

Belgazprombank is the first to issue cards of international payment system UnionPay
Press office.

Belgazprombank became the first bank in Belarus which started issuing cards of international payment system UnionPay. This was announced at the press-conference held on February 21, 2019 at the gallery Art-Belarus, which was attended by the Main Representative of UnionPay International in Russia and Belarus Sasha Fanj, the Deputy Chairman of the Managing Board of Belgazprombank Kiryl Badzei and the Director of Retail Business Development and Support Department Dmitry Furs.

Belgazprombank and Swiss bank entered into funded participation
Press office.

The funded participation (consortium) agreement provides for the pooling of resourses provided by Belgazprombank, Gazprombank (Switzerland) Ltd and other foreign investors in order to participate in the funding of Belarusian companies. Purposes for which the loans can be provided are not limited and include, for instance, the financing of working capital, investment projects and trade financing.

Changes in the list of main Nostro accounts for payments in KZT
Press office.

Dear Customers! Herewith please be kindly informed about the change in the correspondent account number of Belgazprombank for payments in KZT.

Information about changes in the list of main Nostro accounts
Press office.

Dear Clients! Please be kindly advised of the changes in the list of main Nostro correspondent accounts of Belgazprombank in USD and EUR.

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