27 Mar 2014 07:03
Sberbank / Miscellaneous 27.03.2014 08:03 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 publishes Annual Consolidated Financial Statements in accordancewith International Financial Reporting Standards (IFRS) as at 31 December2013 and for the year then ended Sberbank (hereafter 'the Group') has released its consolidated IFRSfinancial statements (hereafter 'the Financial Statements') as at 31December 2013 and for the year ended 31 December 2013, with an independentaudit report by Ernst & Young Vneshaudit. Income Statement highlights: - Net profit for the year ended 31 December 2013 reached RUB 362.0 bn (or RUB 16.78 per ordinary share) compared to RUB 347.9 bn (or RUB 16.03 per ordinary share) for 2012. - Net interest income increased by 22.3% for 2013 to RUB 862.2 bn, compared to RUB 704.8 bn for 2012. Excluding the effect of DenizBank acquisition in 3Q 2012, the Group's Net interest income increased for 2013 by 16.8% year-on-year. - Net interest margin for 2013 declined by 20 basis points as compared to 2012 but remained strong at 5.9%. - Net fee and commission income increased by 29.4% for 2013 to RUB 220.3 bn, compared to RUB 170.3 bn for 2012. Excluding the effect of DenizBank acquisition in 3Q 2012, the Group's net fee and commission income increased for 2013 by 24.1% year-on-year. - The Group's operating income before provisions for loan impairment increased by 19.9% to RUB 1,103.8 bn as compared to RUB 920.8 bn for 2012 and was driven mainly by growth of net interest income, net fee and commission income and supported by DenizBank acquisition. Excluding the effect of DenizBank acquisition in 3Q 2012, the Group's operating income before provisions for loan impairment increased for 2013 by 13.5% year-on-year. - Operating expenses increased by 14.0% year-on-year, slower than operating income. As a result, Cost to Income ratio improved to 46.6% versus 49.0% for 2012. Excluding the effect of DenizBank acquisition in 3Q 2012, the Group's operating expenses increased for 2013 by 8.0% year-on-year and Cost to Income ratio would have been 46.8%. - Net provision charge for loan impairment amounted to RUB 133.5 bn, translating to Cost of risk of 110 basis points for 2013. Statement of financial position highlights: - As of 31 December, 2013, the Group's total assets reached RUB 18,210.3 bn showing a 20.6% growth compared to 2012 year end, the main driver of the growth being an increase in loans to customers. - For 2013, net loans and advances to customers increased by 23.2% to RUB 12,933.7 bn compared to RUB 10,499.3 bn at 2012 year end. - In 2013, the proportion of non-performing loans in Group's total gross loans decreased to 2.9% as of 31 December 2013 (31 December 2012: 3.2%). - Customer deposits increased by 18.5% to RUB 12,064.2 bn compared to RUB 10,179.3 bn at 2012 year end. - The Group's Equity increased for 2013 by 15.9% to RUB 1,881.4 bn, with net profit being the major driver. - The total capital adequacy ratio decreased by 30 basis points to 13.4% as at 31 December 2013. The core capital adequacy ratio improved by 20 basis points up to 10.6%. Financial and Operating Review: Interest income for 2013 increased by 27.8% year-on-year to RUB 1,478.6 bn.The increase is attributable to a significant expansion in volumes of bothcorporate and retail loans in 2013. Interest expenses for 2013 increased by 37.1% year-on-year to RUB 587.8 bn.The largest component of interest expenses was related to retail deposits,which are the core source of funds for the Group. Cost of retail depositsdemonstrated growth in 1H2013 with subsequent reduction in 4Q2013, as aresult the average cost of retail deposits increased for 2013 and reached5.5% compared to 5.0% for 2012, as customers were able to add funds to theearlier opened deposits with high interest rates. At the same time theaverage cost of corporate term deposits decreased from 5.4% to 5.1% for2013. Net interest income for 2013 totaled RUB 862.2 bn, a 22.3% increaseyear-on-year. The increase is driven by growth of interest earning assetsin 2013, primarily loans, and DenizBank acquisition. Net interest incomeremains the main component of the Group's operating income accounting for78.1% of total operating income before provision charges for loanimpairment. The Group's net fee and commission income for 2013 totaled RUB 220.3 bn, a29.4% increase year-on-year. Income from operations with bankcards was thekey driver of the growth, expanding by 47.6% year-on-year. Customer cashand settlement transactions also remained an important source of fee andcommission income, their share in fee and commission income being 44.8% for2013. Other operating income, which includes amongst others net gains fromoperations with securities, foreign exchange, derivatives and preciousmetals and other items, equaled to 1.9% of Operating income beforeprovisions and decreased by 53.4% year-on-year. The main driver of thedecrease is a reduction of profit from non-financial business activities by89.7% year on year following the disposal of significant non-financialoperations at the end of 2012 - beginning 2013. Total operating income before provisions for loan impairment for 2013reached RUB 1,103.8 bn compared to RUB 920.8 bn for 2012, a 19.9% increaseyear-on-year. The growth was driven primarily by the expansion of theGroup's core banking business, as net interest income and net fee andcommission income jointly amounted to over 98.1% of total operating income. Net provision charge for loan impairment for 2013 totaled RUB 133.5 bncompared to RUB 21.5 bn for 2012 translating into Cost of risk of 110 basispoints. This represents a gradual reversion to a normalized level of thecost of risk as post-crisis asset quality recovery cycle comes to an end. The Group's operating expenses for 2013 increased by 14.0% year-on-year toRUB 514.6 bn. The main driver of this growth was the acquisition ofDenizBank which accounts for 44.0% of the increase. Since operating incomegrowth outpaced the growth of operating expenses, the Group's cost toincome ratio for 2013 decreased to 46.6% versus 49.0% for 2012. The Group's net profit for 2013 reached RUB 362.0 bn versus RUB 347.9 bnfor 2012, a 4.1% increase year-on-year. Slow growth of net profit for 2013as compared to 2012 is explained by a significant increase in cost of risk. As of 31 December 2013, the Group's total assets reached RUB 18,210.3 bn, a20.6% increase since 31 December 2012. In 2013, the Group's gross loan portfolio before provision for loanimpairment increased by 22.4%. Gross loans to corporate clients resumedgrowth after the 1st quarter of 2013 and increased by 19.1% to RUB 9,796.0bn; loans to individuals increased by 32.1% to RUB 3,748.0 bn. The proportion of non-performing loans (NPL), defined as loans for whichpayment of principal and/or interest is overdue by more than 90 days, inthe total loan portfolio (the NPL ratio) decreased in 2013 to 2.9% as at 31December 2013 compared to 3.2% at the beginning of 2013. The decrease isexplained by the fast growth of the Group's loan portfolio in 2013. The NPLcoverage ratio (total provisions for loan impairment to non-performingloans) decreased in 2013 to 1.5 as compared to 1.6 at 31 December 2012.Provisions for loan impairment increased in 2013 by 8.0% reaching RUB 610.3bn. As of 31 December 2013, the proportion of provisions for loanimpairment to total gross loans was 4.5% compared with 5.1% at thebeginning of the 2013. As at 31 December 2013, the Group's total liabilities amounted to RUB16,328.9 bn, a 21.2% increase for the year. Retail deposits, totaling RUB8,435.8 bn as at 31 December 2013, increased by 20.8%; they remain the coresource of the Group's funding, accounting for 51.7% of the Group's totalliabilities. Corporate deposits also increased and amounted to RUB 3,628.4bn as at 31 December 2013 showing a 13.5% growth for the year, while theirshare in total liabilities amounted to 22.2%. As at 31 December 2013, the Group's amounts due to banks totaled 2,111.3bn, a 45.4% growth since the beginning of 2013. The growth is explained bya 51.4% increase in borrowings under sale and repurchase agreements. The Group's equity amounted to RUB 1,881.4 bn as at 31 December 2013, a15.9% increase for 2013. As at 31 December 2013, the Group's total capitaladequacy ratio as per Basel 1 stood at 13.4%, well above the 8% minimumrequirement, and the Tier 1 ratio was 10.6%. The increase in Tier 1 ratiosince the beginning of 2013 was primarily driven by the growth of Tier 1capital mostly due to retained earnings increasing faster than RWA. Sberbank Group's Financial Highlights for the year ended 31 December 2013 27.03.2014 EquityStory.RS, LLC's 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, RU0009029557Listed: Frankfurt in Open Market (Entry Standard) ; MICEX, RTSCategory Code: MSCTIDM: SBERSequence Number: 1959Time of Receipt: March 27, 2014 08:03:06 End of Announcement EquityStory.RS, LLC News-Service ---------------------------------------------------------------------------UK-Regulatory-announcement transmitted by DGAP - a company of EQS Group AG.The issuer is solely responsible for the content of this announcement.