7 Aug 2015 09:51
Sberbank / Miscellaneous/Monthly Figures 07.08.2015 09:50 Dissemination of a Regulatory Announcement, transmitted byEquityStory.RS, LLC - a company of EQS Group AG.The issuer is solely responsible for the content of this announcement.--------------------------------------------------------------------------- Sberbank releases Financial Highlights for 7M, 2015 (under RAS;non-consolidated) Please note that the numbers are calculated in accordance with Sberbank'sinternal methodology. August 7, 2015 Key highlights for July, 2015: - Corporate loan portfolio increased by 2.8% m-o-m; retail loan portfolio grew by 0.6% m-o-m - Retail deposits and accounts increased by 3% m-o-m and 10% ytd that allowed to lower the share of the CBR funding in total liabilities to 7.9% and reduce the net Loan-to-Deposit ratio by 1.1 p.p. to 99.2% in July - Financial efficiency demonstrates further improvement: Cost-to-Income ratio decreased to 34.6% in July Deputy Chairman of Sberbank Alexander Morozov stated: 'In July, the bankgenerated the highest pre-tax profit of RUB31.8 bn since the beginning ofthe year. The gradual recovery in net interest income along withsustainable program of cost optimization allow the bank to reduce theimpact of negative external factors on the business.' Analysis of the Statement of Financial Position and Statement of Profit orLoss for 7M, 2015, as compared to the same period a year earlier (includingcomments): - Interest income increased by 25.5% y-o-y, interest expenses increased by 84.3% y-o-y. Net interest income decreased by 20.1% y-o-y - Noncredit commission income grew by 17.4% y-o-y, net fee and commission income increased by 2.5% y-o-y - Operating income before total provisions decreased by 12.7% y-o-y - Total provision charge was RUB220.7 bn vs. RUB162.5 bn charge for 7M, 2014 - Operating expenses decreased by 0.1% y-o-y (please, see the comment) - Net profit before income tax reached RUB127.8 bn vs. RUB280.6 bn for 7M, 2014 - Net profit totaled RUB92.5 bn vs. RUB222.1 bn for 7M, 2014 Comments: Net interest income came at RUB393.9 bn, down by 20.1% compared to that for7M, 2014. The pace of net interest income growth in 2015 is catching up to2014 rate. - Interest income increased by RUB223.1 bn, or 25.5%, driven mostly by loan portfolio growth and improving yield. - Interest expenses increased by RUB322.4 bn, or 84.3%, due to the increase in market interest rates and inflow of funds. The strongest impact on interest expense for 7M, 2015 came from the CBR funding and client deposits. Slowdown in interest expenses growth continues due to gradual decrease in the CBR's key interest rate since the beginning of 2015. Net fee and commission income came at RUB151.8 bn, up by 2.5%. The lowgrowth rate is explained by the decline in commission income from corporatelending and insurance due to lending slowdown. Noncredit commission incomeincreased by 17.4%. Transactions with bank cards and acquiring remain themain drivers of commission income growth. Furthermore, there was asignificant increase in income from cash settlements and bank guaranties. Net income from FX revaluation and trading operations on capital marketsamounted to RUB36.2 bn for 7M, 2015. The income growth in July was drivenmostly by FX revaluation due to significant ruble devaluation. Operating expenses decreased by 0.1% y-o-y for 7M, 2015 due to the Bank'scost optimization program. Effective 2015 the Bank started to apply theaccrual method in accounting for employee compensation expenses in order tosmoothen the expenses distribution across the year. For comparison purposesthe same accounting principle was applied to staff costs for 2014.Excluding the accrual effect in accounting for employee compensationexpenses for the same period of 2014, operating expenses increased by 3.8%. Total provision charges amounted to RUB220.7 bn for 7M, 2015 vs. RUB162.5bn a year earlier. Amount of provisions in July (RUB44.8 bn) was due byruble devaluation relative to key foreign currencies that required to formadditional reserves for FX loans with no deterioration of credit quality.The Bank continues to practice a conservative approach in loan-lossprovisioning based on requirements of the Central Bank of Russia. Coverageratio remained strong: loan-loss provisions are 2.0 times the overdueloans. Net profit before income tax came at RUB31.8 bn in July and RUB127.8 bn for7M, 2015 vs. RUB280.6 bn a year earlier. At the same time, in July theincome tax surcharge for the 2nd quarter and advance payment of tax payablein the 3rd quarter were reflected in the Bank's costs. Increase in taxliabilities was associated with different accounting of securitiesdenominated in foreign currencies in financial and tax accounting. Netprofit for 7M, 2015 totaled RUB92.5 bn vs. RUB222.1 bn for 7M, 2014. Assets increased by 1.0% in July to reach RUB20.7 trln driven by positiverevaluation of FX component due to ruble devaluation. The Bank lent about RUB520 bln to corporate clients in July. Loan issuesfrom the beginning of the year exceeded RUB2.8 trln. For the first timesince the beginning of the year the volume of new monthly issues exceededthe volume of redemptions. Total corporate loan portfolio in Julyincreased by RUB303 bln, or by 2.8%, to RUB11.2 trln. The Bank continues to grow its retail lending volumes. The Bank lent overRUB120 bn to retail clients in July, from the beginning of the year wasover RUB640 bln. Total retail loan portfolio increased by RUB25 bln, or0.6%, in July to reach the level of the beginning of the year, RUB4.07trln. The share of mortgages continues to increase to reach 51.5%. Overdue loans increased by 0.2p.p. to 3.04% of total loans in July.Nonetheless the level of overdue loans at Sberbank is half the level of thebanking sector's average. Securities portfolio was down by RUB26 bn in July, or by 1.5%, due toredemptions and repayments of OFZ bonds. The portfolio ending balance wasRUB1.68 trln as of August 1, 2015. Retail deposits and accounts increased by RUB272 bn in July, or up by 3.0%.Overall retail deposits and accounts portfolio reached RUB9.4 trln as ofAugust 1, 2015. Since the beginning of the year retail funds increased byRUB0.9 trln, or by 10.1%, while the portfolio was down by 0.4% during thesame period last year. Corporate funding increased by RUB192 bn in July, or by 3.8%, due to termdeposits. Overall corporate clients' funding reached RUB5.2 trln as ofAugust 1, 2015. Inflow of clients' funding allowed the Bank to optimize its fundingstructure and lower the average cost of funding sources by means ofreducing the volume of the CBR funding. The share of the CBR funding(excluding the subordinated loan) in the Bank liabilities was down to 7.9%in July from 8.3% a month earlier. Core Tier 1 and Tier 1 capital (equal since Sberbank does not haveinstruments of additional capital) reached RUB1,708 bn as of August 1, 2015under preliminary calculations. Total capital amounted to RUB2,531 bn onthe same date, up by RUB10 bn in July due to net profit. Risk-weighted assets increased by RUB912 bn in July mainly due to higher FXrates applicable to FX denominated assets since July 1, 2015 in accordancewith the Central Bank letter #211-T on forbearance measures. Capital adequacy ratios under preliminary calculations as of August 1, 2015were: - N1.1 - 8.24% (minimum adequacy level, required by the Central Bank of Russia at 5.0%) - N1.2 - 8.24% (minimum adequacy level, required by the Central Bank of Russia at 6.0%) - N1.0 - 12.17% (minimum adequacy level, required by the Central Bank of Russia at 10.0%, considering Deposit Insurance Regulation). Sberbank 7M 2015 Financial Highlights (under RAS, non-consolidated) 07.08.2015 The EquityStory.RS, LLC Distribution Services include RegulatoryAnnouncements, Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: EnglishCompany: Sberbank 19 Vavilova St. 117997 Moscow RussiaPhone: +7-495-957-57-21Fax: E-mail: media@sberbank.ruInternet: www.sberbank.ruISIN: US80585Y3080, RU0009029540, RU0009029557, US80585Y4070Listed: Open Market (Entry Standard) in Frankfurt ; London, MICEX, RTSCategory Code: MSCTIDM: SBERSequence Number: 2777Time of Receipt: Aug 07, 2015 09:19:53 End of Announcement EquityStory.RS, LLC News-Service ---------------------------------------------------------------------------UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.