Sovcombank net profit to IFRS falls 63% to 5 bln rubles in Q2

MOSCOW. Aug 15 (Interfax) - Sovcombank saw net profit to International Financial Reporting Standards (IFRS) fall 63% year-on-year to 5 billion rubles in the second quarter of 2025, compared with 13.7 billion rubles a year previously, it follows from a press release by the bank.

This result was below the consensus forecast by analysts, who predicted that net profit would decrease 35.6% in the period to 8.8 billion rubles.

The bank's net profit decreased 45.5% YoY to 17.5 billion rubles in the first half, compared to 38.7 billion rubles the year before. Return on equity declined to 9.9% from 21.7% in H1 2024.

"The quarter turned out weaker than our expectations, as the effects of the rate cut had not yet materialized, while economic cooling negatively impacted growth, margins and retail risk," Sovcombank Board Chairman Dmitry Gusev was quoted as saying.

Among the factors affecting the results, the bank cited an increase in provisions for unsecured retail loans amid economic cooling and regulatory restrictions by the Central Bank of Russia, compression of the net interest margin due to high interest rates, rising expenses against the backdrop of growing assets and revenue and an increase in the corporate income tax rate from 20% to 25%.

The bank's net interest income amounted to 38.3 billion rubles in Q2, down 10% compared to the same period last year. In H1, the figure stood at 73.2 billion rubles, declining 6%.

Net fee and commission income reached 11.6 billion rubles in Q2, up 13% YoY. The bank's net fee income grew 30% YoY in H1 to 20.4 billion rubles.

Net profit from the group's non-banking activities amounted to 12.8 billion rubles in Q2, up 1.5-fold YoY, and totaled 26 billion rubles for H1 (up 2.1-fold).

Provisions for credit losses in Q2 amounted to 25 billion rubles, compared to 15.1 billion rubles a year earlier. The bank allocated 37 billion rubles in provisions for credit losses in H1 (compared to 32.3 billion rubles in January-June 2024).

The retail loan portfolio as of the end of June reached 1.4 trillion rubles, growing 2.9% since the beginning of the year. Corporate loans and bonds increased 0.8%, to 1.4 trillion rubles.

Client current accounts and deposits have decreased 4.6% since the start of the year, to 2.9 trillion rubles.

As of Q2 2025, Sovcombank ranked ninth in terms of assets in the Interfax-100 ranking compiled by Interfax-CEA.