6 Feb 2015 07:45
Sberbank / Monthly Figures/Miscellaneous 06.02.2015 08:45 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 1M 2015 (under RAS;non-consolidated) Please note that the numbers are calculated in accordance with Sberbank'sinternal methodology. Also note that the effect of subsequent events isexcluded from the numbers as of January 1, 2015. February 6, 2015 Income Statement Highlights for 1M 2015 (as compared to 1M 2014): - Net interest income decreased by 33.6% y-o-y. Interest income increased by 34.3% y-o-y, but interest expenses increased by 131.7% y-o-y on more expensive cost of funding from the CBR and corporate deposits - Noncredit commission income grew by 9.5% y-o-y, net fee and commission income decreased by 7.8% y-o-y - Operating income before total provisions decreased by 2.9% y-o-y - Total provision charge was RUB54.9 bn vs. RUB28.5 bn charge for 1M 2014 - Operating expenses were down by 1.6% y-o-y - Net profit before income tax reached RUB9.8 bn vs. RUB38.4 bn for 1M 2014 - Net profit totaled RUB3.7 bn vs. RUB31.6 bn for 1M 2014. Significant increase in cost of the CBR's funding and cost of corporate deposits, as well as creation of provisions for impairment were the main drivers for the decline in Net profit. Net interest income came at RUB47.9 bn, down by 33.6% compared to that for1M 2014: - Interest expenses increased by RUB66.4 bn, due to inflow of funds as well as increases of market interest rates. The strongest effect on interest expense came from the short-term CBR funding that was immediately repriced in-full upon the increase in the key interest rate. The cost of short-term corporate funding was another burden to interest expense. In order to optimize its funding structure as well as lower the average cost of funding, Sberbank reduced its CBR funding by RUB787 bn in January. The share of the CBR funding (excluding the subordinated debt) in total liabilities was reduced from 15.2% to 10.9% in January. The recent decrease in the key interest rate by the CBR, effective February 2, 2015, would have a positive effect on the cost of funding. - Interest income increased by RUB42.1 bn y-o-y compared to January 2014 driven by corporate and retail loan portfolio growth. Overall the assets yield repricing occurs at a slower pace relative to growth in liabilities costs since their duration is longer. Furthermore, Sberbank kept a substantial amount of cash reserves that did not generate interest income during New Year holidays. Net fee and commission income came at RUB15.5 bn in January, down by 7.8%y-o-y. Negative growth was driven by commission income from corporatelending as well as insurance products as lending overall slowed down.Noncredit commission income that was up by 9.5% as nearly all productslines performed well, particularly bank cards transactions, bankguaranties, trade finance deals and documentary operations. Net income from FX revaluation and trading operations on capital marketsamounted to RUB23.1 in January. The main driver was provisioning for FXloans against ruble devaluation relative to key foreign currencies, evenwhen these loans demonstrated no quality deterioration. As per opencurrency position Regulation, provisions related to revaluation of FX loansare reported as currency assets and liabilities to manage open currencyposition. Revaluation of this provisions as well as other FX assets andliabilities are reported as conversion income. As a result, the growth inincome from trading operations was greater due to increase in provisioncharges for FX loans. Operating expenses decreased by 1.6% y-o-y in January. Sberbank continuesto realize its cost optimization program. Total provision charges amounted to RUB54.9 bn vs. RUB28.5 bn charge inJanuary last year. Similarly to 4Q2014, ruble devaluation relative to keyforeign currencies required to form additional provisions for FX loans atno 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 2.2 times the overdueloans. Net profit before income tax came at RUB9.8 bn in January vs. RUB38.4 bn ayear earlier. Net profit totaled RUB3.7 bn vs. RUB31.6 bn for 1M 2014. Theamount of income tax paid was based on the 3Q2014 income. Assets increased by 2.8% in January to reach RUB22.4 trln. The increase wasattributed to positive revaluation of FX component on ruble devaluation. The Bank lent about RUB320 bln to corporate clients in January. Totalcorporate loan portfolio increased by RUB797 bn in January driven bypositive revaluation of previously issued FX loans to reach RUB12.5 trln. The Bank lent over RUB70 bn to retail clients in January, 70% of the issueswere mortgages. Retail loan portfolio decreased by RUB9.9 bn in Januaryprimarily due to consumer unsecured loans; mortgages portfolio continued togrow. Overall total retail loan portfolio reached about RUB4.1 trln as ofFebruary 1, 2015. The reduction in lending volumes in January were explained by severalfactors, including seasonality and drop in demand for loans as marketinterest rates increased and a sizable portion of consumer demand wasalready realized in December 2014. Overdue loans came at 2.3% of total loans (as of February 1, 2015), up by30bp in January. Corporate overdues reached 2.2%, while retail - 2.6%. Securities portfolio was down by RUB43.6 bn in January, or by 2.3%, fromredemption of corporate bonds as well as accounting reporting specifics ofREPO transactions. The portfolio ending balance was RUB1.87 trln as ofFebruary 1, 2015. Corporate funding increased by RUB519 bn in January, or up by 10.2%, due toinflow of FX funding and revaluation of clients' FX funds. Overallcorporate deposits and accounts portfolio reached RUB5.6 trln as ofFebruary 1, 2015. Retail deposits and accounts increased by RUB98 bn in January, or up by1.1%, from inflows of savings certificates and FX funds, as well as fromsizable revaluation of FX deposits. Seasonal outflow of ruble retaildeposits in January was not as strong as was in January 2014. Overallretail deposits and accounts portfolio reached RUB8.6 trln as of February1, 2015. Core Tier 1 and Tier 1 capital (equal since Sberbank does not haveinstruments of additional capital) reached RUB1,631 bn as of February 1,2015 under preliminary calculations. Total capital amounted to RUB2,211 bnon the same date. Total capital decreased by RUB67 bn in January due tocontinued adoption of Basel 3 methodology in capital calculation underRegulation 395-P. Another factor that influenced capital decrease wasamortization of CBR subordinated debt and partial write-off of subordinatedloans that did not meet Basel 3 requirements. Risk weighted assets increased by 5% in January primarily from substantialdevaluation of ruble. Capital adequacy ratios under preliminary calculations as of February 1,2015 were: - N1.1 - 7.8% (minimum adequacy level, required by the Central Bank of Russia at 5.0%) - N1.2 - 7.8% (minimum adequacy level, required by the Central Bank of Russia at 6.0%) - N1.0 - 10.6% (minimum adequacy level, required by the Central Bank of Russia at 10.0%, considering Deposit Insurance Regulation). Sberbank 1M 2015 Financial Highlights (under RAS, non-consolidated) 06.02.2015 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: Frankfurt in Open Market (Entry Standard) ; London, MICEX, RTSCategory Code: MSCTIDM: SBERSequence Number: 2511Time of Receipt: Feb 06, 2015 08:14:26 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.