Sberbank / Miscellaneous - Medium Priority

11-May-2016 / 09:42 CET/CEST
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 2016 (under RAS; non-consolidated)
Please note that the numbers are calculated in accordance with Sberbank's internal methodology.
May 11, 2016
Key highlights for April, 2016:
* The Bank earned a net profit of RUB41.9 bn in April * Client deposits inflow came at RUB242 bn, or +2.3%, excluding the FX revaluation effect
* Corporate overdue loans decreased by RUB23 bn in April due to planned actions in resolving problem debts, which also had a positive impact on provision charges
Deputy Chairman of Sberbank Alexander Morozov stated: Net profit for 4M 2016 reached RUB142.3 bn. Current trends in net interest income and fee and commission income growth support the continued recovery of the Bank's profitability. Furthermore, we are satisfied with the progress achieved in working out problematic assets in April. Comments for 4M 2016:
Net interest income came at RUB358.2 bn, by 69.4% compared to 4M 2015: Interest income increased by 8.1%, mostly driven by the increase in volumes of working assets; Interest expenses decreased by 22.6% due to the decrease in market rates and the substitution of state funding with clients' funds. Fee and commission income was up by 31.5% to RUB95.5 bn, driven by transactional business with bank cards and acquiring, cash settlements as well as bank insurance (commissions from which were weak a year ago, given the reduced demand for lending).
Net income from FX revaluation and trading operations on capital markets amounted to -RUB30.0 bn compared to RUB4.1 bn for 4M 2015 mostly due to the fx revaluation of the Balance sheet items as a result of ruble appreciation, as well as SWAP transactions for efficient liquidity management.
Operating expenses growth came at 7.9%, that was significantly slower than pre-provision operating income growth (+50.0%).
Total provision charges amounted to RUB113.1 bn vs. RUB104.0 bn a year ago. The Bank continues to form loan-loss provisions in-line with the requirements of the Central Bank of Russia. Loan-loss provisions are 2.1 times the overdue loans.
Net profit before income tax came at RUB179.9 bn vs. RUB55.7 bn for 4M 2015. Net profit totaled RUB142.3 bn, that is almost 3 times higher than the result for 4M 2015 (RUB48.8 bn). The difference between the amount of taxes to be paid for 1Q 2016 and the advance payments based on 3Q 2015 tax base resulted in additional income tax expense that was recorded in April. Also, additional tax expenses resulted from differences in accounting and taxation principles.
Total comprehensive income amounted to RUB185.5 bn. In addition to the Net profit, this item includes the net income from revaluation of financial assets available-for-sale and held-to-maturity.
Assets in April 2016 decreased by 0.8%. The negative revaluation of the FX component due to ruble strengthening had the main impact on the Balance Sheet items.
The Bank lent about RUB580 bn to corporate clients in April. Corporate loan issues from the beginning of the year reached about RUB2.8 trln. The loan portfolio ending balance decreased by RUB287 bn, or by 2.4% in April, due to the revaluation of the FX loans as well as the volumes of the redemptions exceeding the new issues. Total corporate loan portfolio was at RUB11.9 trln as of May 1, 2016.
The Bank lent about RUB130 bn to retail clients in April. Retail loan issues from the beginning of the year reached about RUB460 bn. Total retail loan portfolio increased by RUB24 bn, or 0.6%, in April to reach RUB4.18 trln as of May 1, 2016. The share of mortgages in the retail portfolio continues to increase reaching 55.1% as of May 1, 2016 (was 53.8% as of January 1, 2016).
Overdue loans of total loans remained at 3.3% in April. The level of overdue loans at Sberbank remains substantially lower than the level of the banking sector's average (6.8% as of April 1, 2016). Securities portfolio was down by RUB19 bn in April, or by 0.8% due to the Eurobonds of the Russian Federation and corporate bonds. The portfolio ending balance was RUB2.34 trln as of May 1, 2016. Retail deposits and accounts increased by RUB135 bn in April, or by 1.3% to RUB10.6 trln. Corporate deposits and accounts decreased by RUB372 bn or by 5.5% for the same period to RUB6.4 trln. The dynamic was explained by the negative revaluation of the FX deposits.
Core Tier 1 and Tier 1 capital (equal since Sberbank does not have instruments of additional capital) reached RUB1,859 bn as of May 1, 2016 under preliminary calculations. Total capital amounted to RUB2,764 bn on the same date, up by RUB32 bn in April primarily due to net profit earned. Risk-weighted assets decreased by RUB112 bn mainly due to the decrease in the corporate loan portfolio.
Capital adequacy ratios under preliminary calculations as of May 1, 2016 were:
* N1.1 - 7.9% (minimum adequacy level, required by the Central Bank of Russia at 4.5%)
* N1.2 - 7.9% (minimum adequacy level, required by the Central Bank of Russia at 6.0%)
* N1.0 - 11.7% (minimum adequacy level, required by the Central Bank of Russia at 8.0%, considering Deposit Insurance Regulation).
Sberbank 4M 2016 Financial Highlights (under RAS, non-consolidated)

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Language: English Company: Sberbank 19 Vavilova St. 117997 Moscow Russia Phone: +7-495-957-57-21 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: MSCM TIDM: SBER Sequence Number: 3148 Time of Receipt: 11-May-2016 / 09:11 CET/CEST  
   
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