Sberbank / Key word(s): Monthly Figures/Monthly Figures
07.07.2016 09:38

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Sberbank releases Financial Highlights for 6M 2016 (under RAS; non-consolidated)
Please note that the numbers are calculated in accordance with Sberbank's internal methodology.
July 7, 2016
Key highlights for June, 2016:
* The Bank earned net profit of RUB45.1 bn in June * Corporate overdue ratio declined from 2.9% to 2.8% and retail overdue ratio decreased from 4.2% to 4.1% due to planned actions in resolving problem debts
* The Bank reduced the share of government funding in liabilities to 0.4% (excluding subordinated debt)
* The Bank paid RUB45 bn in dividends to its shareholders in June Deputy Chairman of Sberbank Alexander Morozov stated: "The 2015 dividend distribution in June temporarily delayed the recovery of the capital adequacy ratio of the Bank. Overall the situation develops according to our expectations. The continued recovery of revenues, as well as expected 2Q2016 net profit audit should provide for capital replenishment."

Comments for 6M 2016:
Net interest income came at RUB542.9 bn, up by 62.6% compared to 6M 2015: Interest income increased by 7.6%, mostly driven by the increase in volumes of working assets; Interest expenses came down by 22.2% due to the decrease in market rates and the substitution of state funding with clients' funds. Fee and commission income was up by 25.9% to RUB147.5 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 to -RUB33.8 bn, in June coming at -RUB9.5 bn due to the fx revaluation of the Balance sheet items as a result of ruble appreciation. Operating expenses increased by 12.9%, which was significantly slower than pre-provision operating income growth of 42.5%. The increase in operating expenses was driven by indexation of wages and amortization, as well as timing differences in accounting in 2015 and 2016. Cost-to-Income ratio decreased from 42.3% for 6M 2015 to 33.5% for 6M 2016. Total provision charges amounted to RUB146.2 bn vs. RUB175.9 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 RUB300.0 bn vs. RUB96.0 bn for 6M 2015. Net profit totaled RUB229.4 bn, which was 2.8 times higher than the result for 6M 2015.
Total comprehensive income which includes the income from revaluation of financial assets available-for-sale and held-to-maturity, amounted to RUB295.1 bn.
Assets in June decreased by 1.0% mainly due to revaluation of the foreign currency denominated assets on the back of ruble appreciation. The Bank lent about RUB730 bn to corporate clients in June. Corporate loan issues from the beginning of the year exceeded RUB4.0 trln. The amount of issues in June was comparable to the amount of redemptions during the month, however the loan portfolio ending balance decreased by RUB137 bn due to the ruble appreciation, or by 1.1% to reach RUB11.8 trln. The Bank lent about RUB125 bn to retail clients in June. Retail loan issues from the beginning of the year exceeded RUB700 bn. Total retail loan portfolio increased by RUB13 bn in June to exceed RUB4.2 trln as of July 1, 2016. The share of mortgages in retail portfolio exceeds 55%. Thanks to a number of undertaken measures the level of corporate overdue loans was reduced by RUB10.8 bn in June, and by RUB50 bn from the beginning of the year. Retail overdue loans also came down in June by RUB2.6 bn. Overdue loans of total loans remained at 3.2% in June, which is substantially lower than the level of the banking sector's average (6.9% as of June 1, 2016).
Securities portfolio was down by RUB26 bn in June due to redemptions of corporate bonds as well as ruble appreciation. The portfolio ending balance was RUB2.36 trln as of July 1, 2016.
Retail deposits and accounts increased by RUB112 bn in June to RUB10.87 trln, while corporate deposits and accounts were down by RUB305 bn to RUB6.2 trln. Total deposits and accounts reached RUB17.1 trln and remain the main source of funding for the Bank.
The Bank reduced the volume of more expensive funds borrowed from the Central Bank by RUB61 bn in June. Their share (excluding the subordinated loan) in total liabilities was immaterial at 0.4% as of July 1, 2016. These are special refinancing instruments.
Core Tier 1 and Tier 1 capital (equal since Sberbank does not have instruments of additional capital) reached RUB1,890 bn as of July 1, 2016 under preliminary calculations. Total capital amounted to RUB2,764 bn as of July 1, 2016, down by RUB15 bn on the back of dividend payment for 2015 and investments in share capital of financial subsidiaries. Risk-weighted assets decreased by RUB110 bn in June under preliminary calculations mainly due to the decrease of corporate loan portfolio. Capital adequacy ratios under preliminary calculations as of July 1, 2016 were:
* N1.1 - 8.1% (minimum adequacy level, required by the Central Bank of Russia at 4.5%)
* N1.2 - 8.1% (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%, considering Deposit Insurance Regulation).
Sberbank 6M 2016 Financial Highlights (under RAS, non-consolidated)

07.07.2016 The EquityStory.RS, LLC Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at 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
 
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