Sberbank / Miscellaneous - Medium Priority

05-Aug-2016 / 09:36 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 7M 2016 (under RAS; non-consolidated)
Please note that the numbers are calculated in accordance with Sberbank's internal methodology.
August 5, 2016
Key highlights for July, 2016:
* The Bank earned net profit of RUB45.6 bn in July * Corporate loan portfolio increased by RUB249 bn in July, retail loan portfolio - by RUB15 bn
* Loan To Deposit Ratio (LDR) increased by 1.3% to 88.9% in July Deputy Chairman of Sberbank Alexander Morozov stated: 'Net profit exceeded RUB45 bn in July. The result was driven by growth in customer businesses, resulting in the growth of the bank's market share in major markets: loans to individuals (+1.1 ppt in the first half of the year), loans to legal entities (+0.3 ppt), retail deposits (+0.3 ppt)' Comments for 7M 2016:
Net interest income came at RUB640.4 bn, up by 57.3% compared to 7M 2015: Interest income increased by 7.4%, mostly driven by the increase in volumes of working assets; Interest expenses came down by 21.5% due to the substitution of state funding with clients' funds and the decrease in market rates compared to 7M 2015.
Fee and commission income was up by 23.5% to RUB171.4 bn, driven by transactional business with bank cards and acquiring, cash settlements as well as bank insurance.
Net income from FX revaluation and trading operations on capital markets amounted RUB11.3 bn in July due to the fx revaluation of the balance sheet items as a result of ruble devaluation.
Operating expenses increased by 10.1%, which was significantly slower than pre-provision operating income growth (37.3%). The increase in operating expenses was driven by continuing indexation of wages and amortization. Cost-to-Income ratio decreased from 40.7% for 7M 2015 to 32.7% for 7M 2016. Total provision charges amounted to RUB193.9 bn vs. RUB220.7 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 remained 2.1 times the overdue loans.
Net profit before income tax came at RUB349.7 bn vs. RUB127.8 bn for 7M 2015. Net profit totaled RUB275.0 bn, which was 3 times higher than the result for 7M 2015.
Total comprehensive income which includes the income from revaluation of financial assets available-for-sale and held-to-maturity, amounted to RUB329.3 bn.
Assets in July increased by 0.4% mainly due to revaluation of the foreign currency denominated assets on the back of ruble depreciation. The Bank lent about RUB700 bn to corporate clients in July. Corporate loan issues from the beginning of the year exceeded RUB4.7 trln, up by 61% compared to 7M 2015. The loan portfolio ending balance increased by RUB249 bn, or by 2.1% to exceed RUB12.0 trln as of August 1, 2016. The growth was driven by new issues as well as by revaluation of earlier issued foreign currency denominated loans.
The Bank lent about RUB120 bn to retail clients in July. Retail loan issues from the beginning of the year exceeded RUB830 bn, up by 31% compared to 7M 2015. Total retail loan portfolio increased by RUB15.2 bn in July and stood at RUB4.2 trln as of August 1, 2016. The share of mortgages in retail portfolio continues to grow and reached 56% as of August 1, 2016. Overdue loans of total loans remained at 3.2% in July, which is substantially lower than the level of the banking sector's average (6.9% as of July 1, 2016).
Securities portfolio was up by RUB94 bn in July mainly due to increase in OFZ bonds portfolio as well as foreign currency and rate revaluation of the portfolio. The portfolio ending balance was RUB2.45 trln as of August 1, 2016.
Retail deposits and accounts increased by RUB157 bn in July to exceed RUB11.0 trln, while corporate deposits and accounts were down by RUB114 bn to RUB6.1 trln. Total deposits and accounts increased marginally (by 0.3%) to RUB17.1 trln as of August 1, 2016.
The share of funds borrowed from the Central Bank (excluding the subordinated loan) in total liabilities remained immaterial at 0.4% as of August 1, 2016.
Core Tier 1 and Tier 1 capital (equal since Sberbank does not have instruments of additional capital) reached RUB1,894 bn as of August 1, 2016. Total capital amounted to RUB2,812 bn as of August 1, 2016, up by RUB36 bn due to the net profit earned.
Risk-weighted assets increased by RUB262 bn in July mainly due to the growth of corporate loan portfolio.
Capital adequacy ratios as of August 1, 2016 were: * N1.1 - 8.0% (minimum adequacy level, required by the Central Bank of Russia at 4.5%)
* N1.2 - 8.0% (minimum adequacy level, required by the Central Bank of Russia at 6.0%)
* N1.0 - 11.8% (minimum adequacy level, required by the Central Bank of Russia at 8.0%).

Sberbank 7M 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, Moscow Category Code: MSCM TIDM: SBER Sequence Number: 3297 Time of Receipt: 05-Aug-2016 / 09:36 CET/CEST  
   
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