26 Aug 2015 11:11
Sberbank / Quarter Results/Quarter Results 26.08.2015 11:11 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 Interim Condensed Consolidated Financial Statements inaccordance with International Financial Reporting Standards (IFRS) as at 30June 2015 and for the six months then endedSberbank (hereafter 'the Group') has released its interim condensedconsolidated IFRS financial statements (hereafter 'the FinancialStatements') as at 30 June 2015 and for the six months ended 30 June 2015,with review report by Ernst & Young Vneshaudit. 'One of the key achievements in the reporting period was the 13.4% increasein capital adequacy ratio. This improvement was mainly driven by a 78.4%growth in quarterly net profit, which amounted to RUB 54.6 bn. The abilityto organically increase capital in tough economic conditions once againhighlights Sberbank solid fundamentals' - stated Alexander Morozov, DeputyChairman of the Board. Income Statement and Total Comprehensive Income highlights: - Net profit for Q2, 2015 increased by 78.4%, to RUB 54.6 bn (RUB 2.50 per ordinary share) compared to RUB 30.6 bn (RUB 1.42 per ordinary share) for Q1, 2015. - Net profit for the six months ended 30 June 2015 decreased to RUB 85.2 bn (RUB 3.92 per ordinary share) compared to RUB 170.4 bn (RUB 7.79 per ordinary share) for 1H 2014. - Total comprehensive income for 1H 2015 remained stable at RUB 152.1 bn compared to RUB 149.4 bn for 1H 2014. - Net interest income for 1H 2015 declined by 12.8% to RUB 427.4 bn, compared to RUB 489.9 bn for 1H 2014. - Net fee and commission income for 1H 2015 increased by 17.3% to RUB 146.8 bn, compared to RUB 125.1 bn for 1H 2014. - The Group's operating income before provision charge for impairment of debt financial assets for 1H 2015 increased by 3.6% to RUB 643.7 bn compared to RUB 621.1 bn for 1H 2014. - Operating expenses for 1H 2015 increased by 12.4% year-on-year while Cost to Income ratio in Q2, 2015 improved to 43.3% compared to 45.8% in Q1, 2015. This ratio for 1H 2015 was equal to 44.5% versus 41.0% in 1H 2014. - Net provision charge for loan impairment for 1H 2015 amounted to RUB 232.4 bn, translating to Cost of risk of 250 basis points. Statement of financial position highlights: - As of 30 June 2015, the Group's total assets reached RUB 23,657.0 bn showing a 6.1% decline compared to the 2014 year end. - For 1H 2015, net loans and advances to customers decreased by 5.6% to RUB 16,755.9 bn compared to RUB 17,756.6 bn at 2014 year end. - The proportion of gross non-performing loans in Group's total gross loans increased to 4.9% as of 30 June 2015 (31 December 2014: 3.2%). - Customer deposits increased by 1.8% to RUB 15,850.1 bn compared to RUB 15,562.9 bn at the 2014 year end. - Loan to deposit ratio reached 102.2% as of 30 June 2015 as compared to 110.8% at 2014 year end. - The Group's Equity increased for 1H 2015 by 7.1% to RUB 2,162.6 bn. - The total capital adequacy ratio (Basel I) improved by 130 basis points for 1H 2015 to 13.4%. The core capital adequacy ratio increased by 100 basis points to 9.6%. Financial and Operating Review: Interest income for 1H 2015 increased by 29.1% year-on-year to RUB 1,106.5bn. The increase was attributable to higher interest rates on corporateloans and higher volume of interest earning assets. Interest expenses (including deposit insurance expenses) for 1H 2015increased by 84.8% year-on-year to RUB 679.1 bn driven by cost ofcorporate term deposits and borrowings from the Central Bank of Russia. InQ2, 2015 those expenses decreased by RUB 62.6 bn as compared to Q1, 2015. Net interest income for 1H 2015 totaled RUB 427.4 bn, a 12.8% decreaseyear-on-year. The decrease is caused by the outpacing growth of interestexpenses over income due to the rapid rise of funding costs. During Q2,2015 net interest income increased by 13.4% as compared to Q1, 2015. The Group's net fee and commission income for 1H 2015 totaled RUB 146.8 bn,a 17.3% increase year-on-year. Income from cash and settlement transactionsof individuals and legal entities and acquiring were key drivers of growthfurther supported by commission income from operations in foreigncurrencies. Total operating income before provision charge for impairment of debtfinancial instruments for 1H 2015 reached RUB 643.7 bn compared to RUB621.1 bn for 1H 2014, a 3.6% increase year-on-year. Net provision charge for loan impairment for 1H 2015 totaled RUB 232.4 bncompared to RUB 150.9 bn for 1H 2014 translating into Cost of risk of 250basis points versus 210 basis points for 1H 2014. The main drivers of theprovision charge growth were general deterioration of the loan quality inview of slowdown of the Russian economy and creation of provisions forUkrainian borrowers due to further deterioration of the Ukrainian economy. The Group's operating expenses for 1H 2015 increased by 12.4% year-on-yearto RUB 286.3 bn. The growth of operating expenses is primarily explained bythe increased rouble equivalent of operating expenses of foreignsubsidiaries. The Group's net profit for 1H 2015 reached RUB 85.2 bn versus RUB 170.4 bnfor 1H 2014, a RUB 85.2 bn decrease year-on-year. This decrease isexplained mostly by net interest income dynamic and a RUB 81.5 bn increasein net provision charge for loan impairment as compared to 1H 2014. Netprofit for Q2, 2015 increased by 78.4%, to RUB 54.6 bn compared to RUB 30.6bn for Q1, 2015 mainly due to decrease in cost of funding. Total comprehensive income for 1H 2015 remained stable at RUB 152.1 bncompared to RUB 149.4 bn for 1H 2014 due to positive revaluation ofportfolio of investment securities availiable-for-sale. As of 30 June 2015, the Group's total assets reached RUB 23,657.0 bn, a6.1% decrease since 31 December 2014. In 1H 2015, the Group's gross loan portfolio before provision for loanimpairment decreased by 4.5%. Gross loans to corporate clients decreased by5.5% to RUB 13,019.4 bn due to the decrease in quality solvent demand;total loans to individuals decreased by 1.8% to RUB 4,761.6 bn, thus volume of mortgage loans within total loans to individuals increased by4.8%. 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) increased to 4.9% as at 30 June2015 compared to 3.2% at the 2014 year end. The NPL coverage ratio (totalprovisions for loan impairment to non-performing loans) decreased to 1.2for 1H 2015 due to the recognition within NPL of loans which weresignificantly provided for impairment in earlier periods. Provision for loan impairment increased for 1H 2015 by 17.9% reaching RUB1,025.1 bn. As of 30 June 2015, the proportion of provisions for loanimpairment to total gross loans was 5.8% compared to 4.7% at 2014 year end. As of 30 June 2015, the Group's total liabilities amounted to RUB 21,494.4bn, a 7.3% decrease in 1H 2015 while retail deposits totaled RUB 9,981.0bn (7.0% increase). Retail deposits remain the core source of the Group'sfunding, accounting for 46.4% of the Group's total liabilities. Corporatedeposits decreased by 5.9% in 1H 2015 to RUB 5,869.1 bn as at 30 June 2015being more expensive and short-term source or funds, while their share intotal liabilities was 27.3%. As of 30 June 2015, the Group's amounts due to banks totaled 2,023.6 bn, a44.4% decrease since the beginning of 2015. The increase in customeraccounts of the Group in 1H 2015 allowed a RUB 1,497.7 bn reduction of itsexposure to the Central Bank of Russia, being one of the most expensivesource of the Group's funding. Loan to deposit ratio improved in 1H 2015 to 102.2% as compared to 2014year end (110.8%) following the increase in retail deposits on the back ofloan portfolio contraction. The Group's equity amounted to RUB 2,162.6 bn as at 30 June 2015, a 7.1%increase for 1H 2015. The main sources for the increase were gains onrevaluation of securities available-for-sale and net profit earned for thereporting period. The Group's total capital adequacy ratio as per Basel Ireached 13.4% and the Tier 1 ratio was 9.6%. The improvement of the capitaladequacy ratios as of 30 June 2015 is mostly explained by an increase inequity and reduction of risk weighted assets. Sberbank Group's Financial Highlights for the six months ended 30 June 2015 26.08.2015 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: IRTIDM: SBERSequence Number: 2816Time of Receipt: Aug 26, 2015 10:40:37 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.