Credit institutions earned more than 170 billion roubles to the committees on the operations of the population
Amid falling assets, corporate lending and weak growth of consumer crediting banks in the first nine months of the current year made a profit of five times more than the year before. Impressive growth was demonstrated, for example, fee and Commission income from transactions of individuals. They already formed nearly a quarter of the total Commission income of the banking sector — they accounted for 177 billion of 718 billion roubles of the total volume collected in the third quarter commissions. Such calculations conducted for “News” rating Agency RAEX (Expert). Analysts, in particular, noted an increase in the so-called other fee income that lenders receive from the sale of uncharacteristic for yourself products and services.
Specially for “Izvestia” RAEX made a rating of the banks that received the most income from commissions of natural persons. As noted in the Agency for this segment of the banking market is also characterized by a high concentration in the savings Bank. It saw more than 45% of all Commission income of physical persons for the first nine months of 2016. But this segment feels good not only the largest credit organization in Russia, formed a group of banks that receive a good income from the commissions.
“Even without a leader the focus of the commissions to individuals on a limited number of banks is extremely high. So, about 45% of the segment falls on the next, Sberbank 24 loan organization, and only about 10% of the Commission income distributed among the remaining six hundred banks,” indicate analysts RAEX.
They note that, despite the fact that banks provide to private individuals a broad range of services Commission income consists mainly of commissions from transactions related to cash and settlement services (for the first nine months of 2016 they form 37% of all fees received from individuals), the opening and maintenance of Bank accounts (19,5%), remittances (13.7 per cent) and the provision of Advisory and information services (11.9 percent). But it’s traditional activities for credit institutions.
The press service of Sberbank calculations RAEX agreed. However, the official representatives of credit organizations noted that given Agency statistics do not include income from card business, and this is the biggest and fastest growing article fee and Commission incomes of the savings Bank.
— If to take into account the income from the card business, perhaps a list of the top banks would have changed, although the savings Bank would have retained in the new list, — said Sberbank.
Other banks rankings, which responded to the request of “Izvestia”, said that they Commission income are one of the most important areas. Which is especially important when the prospects for other income in connection with the fall in corporate lending and a sluggish state of consumer is limited.
— For OTP Bank fee and Commission income are one of the key areas, because only the simultaneous development of credit products, Deposit products and commissions allows the Bank to differentiate income and be more sustainable in all economic conditions, even if credited by some reason reduced, — said the head of Department business development projects, OTP Bank, Marina Pushkareva.
Agree, and head of Commission products development at Alfa-Bank, Yana Blinova. According to her, in conditions of high credit risk, the Bank increases the volume of the Commission income is an important additional source of income.
— Fee income is a significant component of the operating income of the Bank and recently demonstrated a rapid growth. Thus, the net fee and Commission income increased by 18.1% in the first half of 2016, compared to the same period last year to more than 6.5 billion rubles (IFRS), which is about 20% of operating income, — have informed “news” in Raiffeisenbank, noting that they plan to further develop this segment.
However, credit institutions earn more on the not quite traditional operations and services. As pointed out by RAEX, the banking sector has seen a high proportion of Commission income from “other” operations (about 13.5% of the total Commission income from operations with individuals). In the III quarter of 2016 from 23,8 billion other fee and Commission income from individuals by just five banks account for 15.6 billion rubles, or 65.5% of all other Commission income from operations with physical persons, and the share of the 10 credit organizations is 85%.
“Overall, the market committees is not transparent since almost 14% of the income comes from other operations, as, for example, the Bank “Tinkoff” this figure is significantly higher — 43%”, — concluded the experts RAEX.
Analyst of the market of bonds of Raiffeisenbank Denis Poryvai explained that the major share of fee income Tinkoff Bank is the insurance in the “other income”, the Bank indicates cross-selling (e.g., selling their clients mortgages from other banks, it receives a Commission from the lending Bank — 642 million rubles for six months), reimbursement of legal costs in winning claims (232 million), a fee for cash withdrawals on credit cards, the fee for withdrawing money in a currency other than the currency and bills, and other fees.
In a press-service Tinkoff Bank confirmed that in the last year and a half actively working to increase fee income. And the main tool is a universal financial supermarket, where not only own products, but affiliate (mortgage and investment platform). However, the desire to earn on other products typical for other participants of the ranking.
— Assessing the positive effect of the cooperation with insurance companies, the Bank began to offer not only insurance-related lending and non-credit insurance (offered to Bank customers on a voluntary basis). The share of non-credit insurance in our Bank will increase in connection with the development of new Commission products: insurance, credit cards, property, family, medical and insurance and other, — says Yana Blinova.
As reported previously, the Central Bank, for January–September 2016, the Russian banks have earned 635 billion rubles of net profit. That’s five times more than in the same period last year, when it was received 127 billion. The net profit of one of Sberbank for the first nine months of this year amounted to 376,7 billion.
These figures were achieved against the background of the banking sector assets decreased by 4% (the same rate year to year was noted and in August), the total volume of credits to economy decreased by 5%, loans to non-financial institutions — 2.2%. Loans to individuals increased by just 0.4%.
— Share of fee income is still very small, the banks generally receive income from foreign currency transactions, interest income from legal entities and restoration of reserves. But the share of commissions General and from individuals, has been growing for the second quarter of that can be attributed to post-crisis recovery, — says a leading analyst RAEX Anastasia Lychagina.
Given the increasing interest in this source of income as well as fast growth segment, experts believe that the share of fee income will increase.
