Center-invest Bank has reported its profits for 2020. Even at a time of crisis, the ESG banking business model is proving financially effective and resilient. Center-invest Bank’s profits for 2020 (applying RAS) were RUB1.6bn.
In the last year, the bank and its customers have undergone accelerated digitalisation and business transformation, resulting in a strong financial performance. According to preliminary unaudited data, Center-invest Bank’s profits for 2020 calculated using Russian Accounting Standards were RUB1.6bn. The bank’s balance sheet structure has remained balanced: assets RUB119.3bn; customer accounts RUB100.7bn; loan portfolio RUB92.2bn; capital RUB15.6bn.
In 2020, the whole world was affected by the coronavirus pandemic. Center-invest Bank made a rapid and smooth transition to remote working. It successfully maintained the quality of its services and increased the speed of customer interactions. It also offered attractive loan and card products for retail and business customers, through its own programmes and government-subsidised programmes. In addition, the bank has provided loan repayment holidays for the recovery period.
“Rather than chasing immediate profit, the bank always aims to establish long-term relationships with its customers,” says Lidia Simonova, chairman of Center-invest Bank’s Executive Board. “Our priority last year was to help our customers stay in business. We provided preferential tariffs and support programmes, and we gave up fee income in favour of mutual growth and success in the future. During the lockdown, banks were designated essential organisations, and so when everything was “frozen”, we continued to operate around the clock, offering a full range of services, with a focus on online.”
In 2020 Center-invest Bank lent its customers a total of RUB101.6bn: RUB77.6bn was invested in developing our SME customers’ businesses, while retail lending reached RUB24bn. The bank’s retail loan portfolio grew by RUB3bn to RUB58.2bn. Growth was driven by mortgage lending, including lending under government-subsidised programmes, such as the Rural Mortgage and New-Build Mortgage programmes.
With an extensive branch network, Center-invest Bank is able to replicate its unique banking products and solutions. Its 121 branches, located in six Russian regions, are undergoing organic transformation into universal sales channels.
Center-invest Bank’s performance in 2020 clearly demonstrates the effectiveness of the ESG banking model that underpins its operations: retail and SME lending, and working effectively in the interests of customers and shareholders.
In 2020 the Russian rating agency ACRA and Moody’s Investors Service upheld Center-invest Bank’s existing ratings: А (RU) and Ba3 (outlook stable), respectively. Moreover, in 2020 Center-invest Bank was recognised by the Euromoney magazine as Central and Eastern Europe’s best bank for corporate responsibility. An organically developing regional bank, Center-invest Bank is a shining example of the successful implementation of an ESG banking business model in Russia.