Sberbank / Miscellaneous - Medium Priority
Sberbank: Sberbank releases Financial Highlights for 8M 2016 (under RAS; non-consolidated)
07-Sep-2016 / 09:10 CET/CEST
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Sberbank releases Financial Highlights for 8M 2016 (under RAS;
Please note that the numbers are calculated in accordance with Sberbank's
September 7, 2016
Key highlights for August, 2016:
* The Bank earned net profit of RUB47.8 bn in August
* Retail loan portfolio increased by RUB150 bn in August - highest monthly
volume since January 2015
* Retail deposits excluding FX revaluation effect continued to show
positive dynamics increasing by 0.4%
Deputy Chairman of Sberbank Alexander Morozov stated:
'Sound financial results and audit of the 2Q2016 net profit contributed to
the increase of Core Tier 1 and Tier 1 capital adequacy ratios to a new
level of 8.7%. Another highlight of August was a record monthly volume of
new issues of retail loans since the beginning of 2015.'
Comments for 8M 2016:
Net interest income came at RUB734.9 bn, up by 51.6% compared to 8M 2015:
Interest income increased by 6.3%, mostly driven by the increase in volumes
of working assets; Interest expenses came down by 21.3% due to the
substitution of state funding with clients' funds and the decrease in
market rates compared to last year.
Fee and commission income was up by 22.8% to RUB198.4 bn, driven by
transactional business with bank cards, acquiring and bank insurance.
Operating expenses increased by 11.2%, which was significantly slower than
pre-provision operating income growth (34.5%). The increase in operating
expenses was driven by continuing indexation of wages. Cost-to-Income ratio
decreased from 39.5% for 8M 2015 to 32.6% for 8M 2016.
Total provision charges decreased by RUB64.1 bn compared to 8M 2015 and
amounted to RUB213.7 bn. The Bank continues to form loan-loss provisions
in-line with the requirements of the Central Bank of Russia. Loan-loss
provisions remained 2 times the overdue loans.
Net profit before income tax came at RUB415.4 bn vs. RUB142.7 bn for 8M
2015. Net profit totaled RUB322.8 bn, which was 3 times higher than the
result for 8M 2015.
Total comprehensive income which includes the income from revaluation of
financial assets available-for-sale and held-to-maturity, amounted to
Assets in August decreased by 1.1% to RUB21.9 trln mainly due to
revaluation of the foreign currency denominated assets on the back of ruble
The Bank lent over RUB620 bn to corporate clients in August. Corporate
loan issues from the beginning of the year were about RUB5.4 trln, which
was 1.5X more than for 8M 2015. The loan portfolio ending balance decreased
by RUB284 bn, or by 2.4% to RUB11.7 trln as of September 1, 2016. The
decrease was influenced by large volumes of redemptions as well as by
revaluation of earlier issued foreign currency denominated loans.
The Bank lent RUB150 bn to retail clients in August. Retail loan issues
from the beginning of the year were RUB980 bn, which was by a third greater
than for 8M 2015. Total retail loan portfolio increased by RUB37 bn in
August to reach RUB4.26 trln as of September 1, 2016. The share of
mortgages in retail portfolio was 56%.
Retail overdue loans of total loans remained at 4.2%. Corporate overdue
loans of total loans were 3.2%. Overall the share of overdue loans of total
clients loans was 3.5%, which is substantially lower than the banking
sector's average (7.0% as of August 1, 2016).
Securities portfolio was down by RUB73 bn in August due to redemptions of
OFZ bonds, sale of Eurobonds of the Russian Federation, as well revaluation
of FX denominated part of the portfolio. The portfolio ending balance was
RUB2.38 trln as of September 1, 2016.
Retail deposits and accounts in August decreased by RUB25 bn in nominal
terms, whereas in real terms demonstrated an inflow of funds both in rubles
and in foreign currencies. Corporate deposits and accounts were down by
RUB180 bn due to both FX current accounts as well as FX revaluation. Total
deposits and accounts decreased by RUB206 bn, or by 1.2%, to RUB16.9 trln
as of September 1, 2016.
The share of funds borrowed from the Central Bank (excluding the
subordinated loan) in total liabilities remained immaterial at 0.4%.
Core Tier 1 and Tier 1 capital (equal since Sberbank does not have
instruments of additional capital) reached RUB2,045 bn as of September 1,
2016 under preliminary calculations. The increase in Core Tier 1 and Tier 1
capital was due to audited 2Q2016 net profit.
Total capital amounted to RUB2,884 bn as of September 1, 2016, up by RUB70
bn due to monthly net profit and revaluation of securities portfolio.
Risk-weighted assets decreased by RUB344 bn in August mainly due to the
decrease of corporate loan portfolio.
Capital adequacy ratios as of September 1, 2016 under preliminary
* N1.1 - 8.7% (minimum adequacy level, required by the Central Bank of
Russia at 4.5%)
* N1.2 - 8.7% (minimum adequacy level, required by the Central Bank of
Russia at 6.0%)
* N1.0 - 12.2% (minimum adequacy level, required by the Central Bank of
Russia at 8.0%).
Sberbank 8M 2016 Financial Highlights (under RAS, non-consolidated)
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