© RIA Novosti, Vladimir Astapkovich
RIA Rating – 4 Mar. Ending in 2019, in the dynamics of the equity capital is issued for the Russian banking sector is rather weak. According to the Bank of Russia, the total volume of banking sector capital grew by 6.9% or by 0.7 trillion roubles, and on January 1, 2020 amounted to 11 trillion rubles. For comparison, in 2018, the capital gain was much more – +for 9.3. It is worth noting that over the last 10 years the rate of growth was less in 2016 and 2017. The average annual capital growth over the decade was just about 14%.
most Major banks increasing their capital
the Experts of RIA Rating prepared a ranking of banks by volume of own capital by January 1, 2020, which represents 395 banks and non-Bank credit organizations in Russia, which published statements according to forms No. 123 and 135 on the website of the Central Bank of the Russian Federation, and who had a valid license on 3 Mar 2020.
At the end of 2019 capital growth was characterized by a very low number of banks. According to research by RIA Rating, in 2020 the increase of capitalization was observed in 236 credit institutions or 59.7 per cent of the banks from rating. It is worth noting that the current annual result, the share of banks with the increase was the weakest result over the past decade.
Among different size groups of TOP 200 banks, ranked by equity capital and are divided into 50 banks, the share of banks with the increase fluctuated quite markedly in a wide range (from 54% to 78%). Thus, among banks, located of the TOP 50, the share of banks with capital gain was the biggest – 78%. In turn, the banks 51 to 100 and from 101 to 150 seats capital gains was observed in 70% of the banks each of the groups. The remaining banking groups with 151 to 200 seats, the share of growth capital was much less – 54%. The banks outside the TOP 200 (201 of 395 seats) only 53% of the banks were characterized by the increase of capital in 2019. Thus, the result of large and medium-sized banks was significantly better than small credit institutions. Overall capital grew mainly from the TOP 150 banks.
Capital growth from the major banks and a small decline is a consequence of the difference in profitability from them. According to analysts at RIA Rating, it is possible to speak about the closing of niches for small banks, and they eventually will, most likely, more to lose competition to larger credit institutions. This eventually leads to growth of concentration and withdrawal from the banking market of small players. Experts of RIA Rating expects that in 2020, the share of banks with capital gains will increase, which will be the consequence of high profitability, but will also be caused by a reduction in the number of small banks in the market.
16 banks have increased capital more than 10 billion rubles
The largest absolute increase of own capital in 2019 have demonstrated industry leader, Sberbank. His own capital for the year increased by 300 billion rubles, or 7%. Thus, one savings Bank has provided more than 40% of capital gains in 2019. The second absolute growth was the Bank VTB, whose capital over the past year increased by 82 billion rubles. Also a good result for the year showed the Bank FK Otkrytiye PAO, the capital of which increased by 79 billion rubles. It should be noted that part of the rise in capital of the Bank FK Otkrytiye PAO is associated with the integration with b & n in early 2019. In General, capital gains of more than 10 billion rubles by the end of the year showed a 16 credit institutions. For comparison, at the end of 2018, a growth rate of more than 10 billion rubles have also been 16 Bank. However, the total increase of capital of banks with capital growth of more than 10 billion rubles for the year decreased by almost 2 times from 1.7 to 0.8 trillion rubles.
In the TOP-50 on the size of banks ' capital the leader in relative growth rate was the Bank BUILDING.Of the Russian Federation, the amount of capital which in 2019 increased by 2.4 times, amounting to 60 billion rubles on January 1, 2020. Source of growth of this Bank is recapitalization by the shareholder represented by the state. Second, the relative dynamics in the TOP-50 was the Post Bank, the capital of which increased by 76.5 per cent to 76.4 billion rubles. The high growth rates of the two banks have influenced their position in the ranking. Thus, each of the banks for the year rose more than 10 places in the current ranking they occupy 22nd and 19th places respectively. Also high growth rates were the Bank CentroCredit, the capital of which grew by 64% to 35 billion rubles.
The greatest reduction of capital in absolute terms in 2019 was observed at the TRUST Bank, whose capital fell by 489 billion. The decrease in capital of other banks was much less. So, the capital of SKB-Bank has decreased only by 13 billion rubles. The third reduction of capital in 2019 became the Bank Russian Standard, the capital of the Bank decreased by 7 billion rubles.
According to the study of RIA Rating, in 2019 the greatest capital growth was characterized by private and foreign banks, which helped them to strengthen their position regarding state-owned banks. The increase in total capital by the end of 2019 from private and foreign banks were at the same level – +at 7.8%, against increase of 3% in state banks. It should be noted that the result of the state-owned banks is associated with a loss of rehabilitated banks, without which capital gains would be at 8.6%.
the capital Adequacy ratio of most banks declined
the Average for the banking system, the capital adequacy ratio N1.0 in 2019 increased to 12.33% vs 12,15% a year earlier. The growth of the standard relative to previous years was observed in only 188 credit institutions, or 48% of the total. Thus, the capital adequacy has increased, mainly at large banks, which ensured the growth of the average value, with most small banks were characterized by a reduction in the adequacy.
The number of banks with low capital adequacy at the end of 2019 is almost not changed. So, on January 1, 2020 presented in the rating of banks with positive capital, only 3 had the indicator of capital adequacy of less than 9%, against the two banks a year earlier. The low value of the ratio (N1.0) at the end of 2019 was characterized by KS BANK, IKANO Bank and Bank of East KB, for which the rate was 8.3 8.8 per cent and 8.96 per cent respectively. The low value of the ratio capital adequacy (N1.2 in the 6-7% range) in 2019 was characterized by three banks: Tavrichesky Bank, PERESVET Bank, and KS BANK.
According to experts RIA Rating, the current profitability of most banks, in General, allows to increase capital at the expense of profit. The median level of adequacy and core capital (for 24.4% and 18.6%, respectively) with a very large margin complies with the requirements of the regulator, thus, capital adequacy still is not a barrier for the growth of most banks.
The ranking of banks by volume of own capital by 1 January 2020 in PDF format >>
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