Sberbank  / Statement/Miscellaneous

12.05.2015 09:41

Dissemination of a Regulatory Announcement, transmitted by EquityStory.RS, LLC - a company of EQS Group AG.
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Sberbank releases Financial Highlights for 4M, 2015 (under RAS; non-consolidated)

Please note that the numbers are calculated in accordance with Sberbank's internal methodology.

May 12, 2015

Income Statement Highlights for 4M, 2015 (as compared to 4M, 2014):
- Interest income increased by 29.4% y-o-y, but interest expenses increased by 104.0% y-o-y. Net interest income decreased by 27.0% y-o-y
- Noncredit commission income grew by 14.9% y-o-y, net fee and commission     income decreased by 3.6% y-o-y

- Operating income before total provisions decreased by 23.9% y-o-y
- Total provision charge was RUB104.1 bn vs. RUB106.0 bn charge for 4M,     2014

  - Operating expenses were up by 5.4% y-o-y

- Net profit before income tax reached RUB55.2 bn vs. RUB149.9 bn for 4M,     2014

- Net profit totaled RUB48.8 bn vs. RUB129.8 bn for 4M, 2014. Increase in cost of the CBR's funding and cost of client funds (mostly corporate funds) were the main drivers for the decline in Net profit.
Net interest income came at RUB201.2 bn, down by 27.0% compared to that for 4M, 2014:

- Interest income increased by RUB142.4 bn, or 29.4% driven by loan portfolio growth and increase in corporate loan interest rates.
- Interest expenses increased by RUB216.9 bn, or 104.0% due to inflow of funds as well as increase of market interest rates. The strongest effect on interest expense came from the CBR funding and client deposits (mostly corporate) that reacted at a faster pace upon the increase in the key interest rate. Slowdown on interest expenses growth in April continued driven by the gradual decrease in the key interest     rate by the CBR from the beginning of 2014.

Net fee and commission income came at RUB79.7 bn in 4M, 2015 that was 3.6% lower than in 4M, 2014, driven by decline in commission income from corporate lending due to lending slowdown. On the contrary, noncredit commission income increased by 14.9%. Transactions with bank cards and acquiring remain main drivers in noncredit commission income growth. Also, there was significant increase in income from cash settlements and bank guaranties.

Net income from FX revaluation and trading operations on capital markets amounted to RUB4.1 bn for 4M, 2015.

Operating expenses increased by 5.4% y-o-y for 4M, 2015 due to the increase in staff costs. Other operating costs decreased by 12.1% due to the Bank's cost optimization program. Marketing, cash settlement and cash collection expenses demonstrated the most decline.

Please note, that comparison of 2015 staff costs to staff costs for the same period of 2014 is not quite correct. Effective 2015 the Bank uses accrual method in staff costs accounting to spread these costs more evenly across the year. Excluding the effect of this adjustment, operating expenses for 4M, 2015 decreased by 1.9% y-o-y.

Total provision charges amounted to RUB104.1 bn for 4M, 2015 vs. RUB106.0 bn a year earlier. The Bank continues to practice a conservative approach in loan-loss provisioning based on requirements of the Central Bank of Russia. Coverage ratio remained strong: loan-loss provisions are 2.1 times the overdue loans.

Net profit before income tax came at RUB55.2 bn for 4M, 2015 vs. RUB149.9 bn a year earlier. Net profit totaled RUB48.8 bn vs. RUB129.8 bn.
Assets decreased by 3.5% in April to reach RUB20.0 trln. The decrease was mostly driven by negative revaluation of FX component on ruble appreciation.

The Bank lent about RUB380 bln to corporate clients in April, while issues from the beginning of the year reached about RUB1.5 trln. Total corporate loan portfolio decreased by 5.1% in April to RUB10.8 trln from both negative revaluation of previously issued FX loans and repayments exceeding new issues.

The Bank lent about RUB90 bn to retail clients in April, which exceeded average monthly issues of 1Q by nearly a third. In total the volume of new loan issues to retail clients from the beginning of the year was about RUB300 bln. Total retail loan portfolio remained relatively flat over the month (-0.1%) at RUB4.0 trln. Overall the structure of retail loan portfolio continues to change: the share of mortgages is increasing (about 60% of issued loans), while the share of consumer unsecured loans is contracting (about 60% of repaid loans).

Overdue loans increased by 0.4p.p. to 2.8% of total loans in April, which reflects current macroeconomic situation in the country. Nonetheless the level of overdue loans at Sberbank is nearly half the level of the banking sector's average.

Securities portfolio was down by RUB86 bn in April, or by 4.7%, mainly from volumes decrease and revaluation effect of FX denominated Eurobonds of corporate clients. The portfolio ending balance was RUB1.75 trln as of May 1, 2015.

Retail deposits and accounts increased by RUB164 bn in April, or up by 1.9%. Should there have not been the revaluation effect the portfolio would have increased by about RUB350 bn, which is double the biggest monthly increase since the beginning of 2014. The inflow of funds was both to ruble and FX deposits as well as savings certificates. Overall retail deposits and accounts portfolio reached RUB8.8 trln as of May 1, 2015.
Corporate funding decreased by RUB237 bn in April, or down by 4.5%, solely from FX revaluation effect. Should there have not been the revaluation effect the portfolio would have increased by about RUB50 bn on FX funds. Overall corporate clients' funding reached RUB5.0 trln as of May 1, 2015.
The CBR and Federal Treasury funding decreased by RUB317 bn, or 12.2%, in April. This source of liquidity remains the most expensive, and, in order to reduce the overall cost of fund the Bank continuously replaces it with clients' funds. The share of the CBR funding (excluding the subordinated loan) in the Bank liabilities reached 10.0% as of May 1, 2015, down from 15.2% as of January 1, 2015.

Core Tier 1 and Tier 1 capital (equal since Sberbank does not have instruments of additional capital) reached RUB1,724 bn as of May 1, 2015 under preliminary calculations. Total capital amounted to RUB2,515 bn on the same date.

Risk-weighted assets decreased by RUB341 bn in April mainly due to lowered credit risk on Balance Sheet items (by RUB118.5 bn) from the contraction of the loan portfolio, and from lowered credit risk on derivative instruments (by RUB232 bn) from strengthening of ruble.

Capital adequacy ratios under preliminary calculations as of May 1, 2015 were:

- N1.1 - 9.0% (minimum adequacy level, required by the Central Bank of     Russia at 5.0%)

- N1.2 - 9.0% (minimum adequacy level, required by the Central Bank of     Russia at 6.0%)

- N1.0 - 13.0% (minimum adequacy level, required by the Central Bank of Russia at 10.0%, considering Deposit Insurance Regulation).
Sberbank 4M 2015 Financial Highlights (under RAS, non-consolidated)

12.05.2015 The EquityStory.RS, LLC Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:           English
Company:            Sberbank
                    19 Vavilova St.
                    117997 Moscow
                    Russia
Phone:              +7-495-957-57-21
Fax:                
E-mail:             media@sberbank.ru
Internet:           www.sberbank.ru
ISIN: US80585Y3080, RU0009029540, RU0009029557, US80585Y4070 Listed: Open Market (Entry Standard) in Frankfurt ; London,                     MICEX, RTS
Category Code:      MSC
TIDM:               SBER
Sequence Number:    2664
Time of Receipt:    May 12, 2015 09:10:44
 
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