Sberbank / Miscellaneous - Medium Priority
Sberbank: Sberbank releases Financial Highlights for 9M 2016 (under RAS; non-consolidated)
07-Oct-2016 / 09:06 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EquityStory.RS, LLC - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
Sberbank releases Financial Highlights for 9M 2016 (under RAS;
Please note that the numbers are calculated in accordance with Sberbank's
October 7, 2016
Key highlights for September, 2016:
* The Bank earned net profit of RUB53.9 bn in September
* Corporate overdue ratio decreased from 3.2% to 2.4% due to planned
actions in resolving problem debts, retail overdue ratio also decreased
from 4.2% to 4.0% in September
Deputy Chairman of Sberbank Alexander Morozov stated:
'The focus of the Bank has been and continues to be on increasing
efficiency and productivity, as well as expanding the base of fee income,
improving asset quality and strengthening the bank's capital adequacy'
Comments for 9M 2016:
Net interest income came at RUB829.5 bn: Interest income increased by 5.6%,
mostly driven by the increase in volume of working assets; Interest expense
came down by 21.9% due to substitution of state funding with clients' funds
and decrease in market rates compared to 9M 2015.
Fee and commission income was up by 21.7% to RUB227.5 bn compared 9M 2015,
driven by transactional business with bank cards and acquiring, where
volumes increased both due to the growing number of cards issued by the
bank, and due to increased penetration of digital services. Income from
bank insurance also contributed to Fee and commission income.
Operating expense increased by 13.3%, which was significantly slower than
pre-provision operating income growth (32.9%). The increase in operating
expenses was driven by continuing wages indexation. Cost-to-Income ratio
decreased from 38.9% for 9M 2015 to 33.2% for 9M 2016.
Total provision charges amounted to RUB4.5 bn in September. Significant
impact on the reserves in September was due to the strengthening of the
ruble against major foreign currencies, as well as progress in resolving
problem debts. Total provision charge for 9M 2016 amounted to RUB218.2 bn,
or 72% of 9M 2015 figure. The Bank continues to form loan-loss provisions
in-line with the requirements of the Central Bank of Russia.
Net profit before income tax came at RUB487.4 bn. Net profit totaled
Total comprehensive income which includes the income from revaluation of
financial assets available-for-sale and held-to-maturity, amounted to
Total assets in September increased by 0.2% to RUB21.9 trln. The growth of
assets was hindered by revaluation of the foreign currency denominated
assets on the back of ruble appreciation.
The Bank lent over RUB870 bn to corporate clients in September. Corporate
loan issues from the beginning of the year were about RUB6.25 trln, which
was 1.5X more than for 9M 2015. The loan portfolio ending balance decreased
by 0.9% during the month. The decrease was largely influenced by
revaluation of earlier issued foreign currency denominated loans.
The Bank lent RUB140 bn to retail clients in September, including about 35
ths mortgage loans for a total amount of over RUB60 bn. Retail loan issues
from the beginning of the year were RUB1.1 trln, which was almost a third
greater than for 9M 2015. Total retail loan portfolio increased by RUB17 bn
in September to reach RUB4.28 trln as of October 1, 2016.
The bank undertook a number of measures that led to a decrease of corporate
overdue loans by RUB98.5 bn in September. Retail overdue loans also came
down by RUB6.7 bn. Overall the share of overdue loans of total loans was
down to 2.8% from 3.5%, which is substantially lower than the banking
sector's average (7.1% as of September 1, 2016).
Securities portfolio was down by RUB70 bn in September due to redemptions
of European Commercial Papers as well revaluation of FX denominated part of
the portfolio. The portfolio ending balance was RUB2.3 trln as of October
Retail deposits and accounts in nominal terms remained nearly unchanged in
September, whereas in real terms demonstrated an inflow of funds both in
Rubles, U.S. dollars and Euros. Retail deposits and accounts ending balance
was RUB11.0 trln as of October 1, 2016.
Corporate deposits and accounts were down by RUB171 bn due to both funds
outflow as well as FX revaluation. Corporate deposits and accounts ending
balance decreased by 2.9% to RUB5.8 trln as of October 1, 2016.
The share of state funding (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 RUB2,044 bn as of October 1,
2016 under preliminary calculations. Total capital amounted to RUB2,928 bn
as of October 1, 2016, up by RUB53 bn due to earned net profit.
Risk-weighted assets decreased by RUB404 bn in September mainly due to the
decrease of foreign currency risk, which is part of capital calculation.
Capital adequacy ratios as of October 1, 2016 under preliminary
* N1.1 - 8.8% (minimum adequacy level, required by the Central Bank of
Russia at 4.5%)
* N1.2 - 8.8% (minimum adequacy level, required by the Central Bank of
Russia at 6.0%)
* N1.0 - 12.5% (minimum adequacy level, required by the Central Bank of
Russia at 8.0%).
Sberbank 9M 2016 Financial Highlights (under RAS, non-consolidated)
The EquityStory.RS, LLC Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de/ukreg