26 Nov 2014 07:07
Sberbank / Miscellaneous 26.11.2014 08:07 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 30September 2014 and for the nine months then endedSberbank (hereafter 'the Group') has released its interim condensedconsolidated IFRS financial statements (hereafter 'the FinancialStatements') as at 30 September 2014 and for the nine months ended 30September 2014, with an independent review report by Ernst & YoungVneshaudit. Income Statement highlights: - Net profit for the nine months ended 30 September 2014 reached RUB 241.3 bn (or RUB 11.13 per ordinary share) compared to RUB 268.3 bn (or RUB 12.40 per ordinary share) for 9m 2013. The decline in net profit was mainly driven by provision charge for loan impairment. - Net interest income for 9m 2014 increased by 19.5% to RUB 745.1 bn, compared to RUB 623.3 bn for 9m 2013. - Net interest margin for 9m 2014 declined by 10 basis points as compared to 9m 2013 to 5.7%. - Net fee and commission income for 9m 2014 increased by 24.9% to RUB 192.3 bn, compared to RUB 154.0 bn for 9m 2013. - The Group's operating income before provision charge for impairment of debt financial assets for 9m 2014 increased by 18.8% to RUB 960.6 bn compared to RUB 808.6 bn for 9m 2013 and was driven by growth of net interest income and net fee and commission income. - Operating expenses for 9m 2014 increased by 10.2% year-on-year, slower than operating income. As a result, Cost to Income ratio improved to 41.5% versus 44.8% for 9m 2013. - Net provision charge for loan impairment for 9m 2014 amounted to RUB 253.6 bn, translating to Cost of risk of 231 basis points. Statement of financial position highlights: - As of 30 September 2014, the Group's total assets reached RUB 20,678.9 bn showing a 13.6% growth (18.1% annualized) compared to the 2013 year end, the main driver of the growth being an increase in loans to customers. - For 9m 2014, net loans and advances to customers increased by 16.4% (21.9% annualized) to RUB 15,060.4 bn compared to RUB 12,933.7 bn at 2013 year end. - For 9m 2014, the proportion of non-performing loans in Group's total gross loans increased to 3.5% as of 30 September 2014 (31 December 2013: 2.9%). - Customer deposits increased by 9.5% (12.7% annualized) to RUB 13,210.1 bn compared to RUB 12,064.2 bn at the 2013 year end, with corporate deposits being the main driver of the growth. - The Group's Equity increased for 9m 2014 by 7.0% (9.4% annualized) to RUB 2,013.8 bn, with net profit being the major driver. - The total capital adequacy ratio (Basel 1) improved by 60 basis points for 9m 2014 to 14.0%. The core capital adequacy ratio decreased by 50 basis points to 10.1%. Financial and Operating Review: Interest income for 9m 2014 increased by 22.2% year-on-year to RUB 1,316.7bn. The increase is attributable to a significant expansion in volumes ofboth corporate and retail loans. Interest expenses (including deposit insurance expenses) for 9m 2014increased by 25.8% year-on-year to RUB 571.6 bn. The largest component ofinterest expenses was related to retail deposits, which are the core sourceof funds for the Group. In 3Q 2014, the cost of term retail depositsremained stable at 5.2% as in 2Q 2014, while the average cost of termcorporate deposits in 3Q 2014 decreased to 5.4% versus 5.8% in 2Q 2014. Yetthe largest driver of interest expenses growth in 2014 were borrowings frombanks (primarily from the Central Bank of Russia) because of their largervolumes and higher costs. As a result, interest expenses on borrowings frombanks increased by 126.8% year-on-year and on subordinated debt by 33.3%. Net interest income for 9m 2014 totaled RUB 745.1 bn, a 19.5% increaseyear-on-year. The increase is driven by growth of interest earning assets,primarily loans. Net interest income remains the main component of theGroup's operating income accounting for 77.6% of total operating incomebefore provision charges for impairment of debt financial assets. Netinterest margin declined by 10 basis points to 5.6% in 3Q 2014 followingthe funding cost increase. The Group's net fee and commission income for 9m 2014 totaled RUB 192.3 bn,a 24.9% increase year-on-year. Income from operations with bank cards wasthe key driver of the growth, expanding by 34.6% year-on-year. Customercash and settlement transactions also remained an important source of feeand commission income, their share in fee and commission income for 9m 2014is 43.3%. Other operating income for 9m 2014, which includes net results fromoperations with securities, foreign exchange, derivatives and preciousmetals and other items, totaled 23.2 bn versus 31.3 bn for 9m 2013, andcomprised 2.4% of Operating income before provision. The main components ofother operating income were gains from foreign exchange and derivatives. Total operating income before provision charge for impairment of debtfinancial instruments for 9m 2014 reached RUB 960.6 bn compared to RUB808.6 for 9m 2013, an 18.8% increase year-on-year. The growth was drivenprimarily by the growth of net interest income and net fee and commissionincome. Net provision charge for loan impairment for 9m 2014 totaled RUB 253.6 bncompared to RUB 106.8 bn for 9m 2013 translating into Cost of risk of 231basis points versus 123 basis points for 9m 2013. The main drivers of thecost of risk were general deterioration of the loan quality in view ofslowdown of the Russian economy and in particular creation of one-offprovisions against some large borrowers; depreciation of the Rouble whichmeant creating additional provisions in Rouble terms against foreigncurrency loans even though their quality remained unchanged; creation ofprovisions against Ukrainian borrowers because of deterioration of theUkrainian economy. The Group's operating expenses for 9m 2014 increased by 10.2% year-on-yearto RUB 399.0 bn. The main driver of this growth is an increase in staffcosts as a result of business growth. Since operating income growthoutpaced the growth of operating expenses, the Group's cost to income ratiofor 9m 2014 decreased to 41.5% versus 44.8% for 9m 2013. The Group's net profit for 9m 2014 reached RUB 241.3 bn versus RUB 268.3 bnfor 9m 2013, a 10.1% decrease year-on-year. The decrease in net profit for9m 2014 as compared to 9m 2013 is explained mostly by the significantincrease in net provision charge for loan impairment. As of 30 September 2014, the Group's total assets reached RUB 20,678.9 bn,a 13.6% (or 18.1% annualized) increase since 31 December 2013. For 9m 2014, the Group's gross loan portfolio before provision for loanimpairment increased by 17.1% (or 22.8% annualized). Gross loans tocorporate clients increased by 16.3% (21.7% annualized) to RUB 11,393.0 bn;loans to individuals increased by 19.3% (25.8% annualized) to RUB 4,472.0bn. Mortgage loan portfolio grew up by 28.2% for 9m 2014 (37.5% annualized)and was the main driver for retail loan portfolio growth. 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 for 9m 2014 to 3.5% asat 30 September 2014 compared to 2.9% at the 2013 year end. The NPLcoverage ratio (total provisions for loan impairment to non-performingloans) remains stable at 1.5 for 9m 2014. Provisions for loan impairmentincreased for 9m 2014 by 31.8% (42.4% annualized) reaching RUB 804.6 bn. Asof 30 September 2014, the proportion of provisions for loan impairment tototal gross loans was 5.1% compared with 4.5% at 2013. As of 30 September 2014, the Group's total liabilities amounted to RUB18,665.1 bn, a 14.3% (19.1% annualized) increase for 9m 2014 while retaildeposits, totaling RUB 8,608.3 bn. Retail deposits remain the core sourceof the Group's funding, accounting for 46.1% of the Group's totalliabilities. Corporate deposits increased to RUB 4,601.8 bn as at 30September 2014 showing a 26.8% (35.8% annualized) growth for the 9m 2014,while their share in total liabilities amounted to 24.7%. As of 30 September 2014, the Group's amounts due to banks totaled 2,472.2bn, a 17.1% (22.8% annualized) increase since the beginning of 2014. At 30 September 2014, the Group's exposure to Ukrainian risk amounted toapproximately 0.6% of total consolidated assets; this represents a 0.2percentage point decrease as compared to 0.8% at 31 December 2013. The Group's equity amounted to RUB 2,013.8 bn as at 30 September 2014, a7.0% (9.4% annualized) increase for 9m 2014. As at 30 September 2014, theGroup's total capital adequacy ratio as per Basel 1 reached 14.0%, wellabove the 8% minimum requirement, and the Tier 1 ratio was 10.1%. Theimprovement of total capital adequacy ratio as of 30 September 2014 ismostly explained by an increase in subordinated debt received from theCentral Bank of Russia in 2Q 2014. Sberbank Group's Financial Highlights for the nine months ended 30September 2014 26.11.2014 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) ; MICEX, RTSCategory Code: MSCTIDM: SBERSequence Number: 2419Time of Receipt: Nov 26, 2014 08:07:34 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.