29 May 2014 08:44
Sberbank / Miscellaneous 29.05.2014 08:44 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 31March 2014 and for the three months then ended Sberbank (hereafter 'the Group') has released its interim condensedconsolidated IFRS financial statements (hereafter 'the FinancialStatements') as at 31 March 2014 and for the three months ended 31 March2014, with an independent review report by Ernst & Young Vneshaudit. Income Statement highlights: - Net profit for the three months ended 31 March 2014 reached RUB 72.9 bn (or RUB 3.41 per ordinary share) compared to RUB 88.5 bn (or RUB 4.10 per ordinary share) in Q1, 2013. The decline in net profit was mainly driven by provision charge for loan impairment. - Net interest income increased by 19.7% in Q1, 2014 to RUB 239.6 bn, compared to RUB 200.2 bn in Q1, 2013. - Net interest margin in Q1, 2014 declined by 20 basis points as compared to Q1, 2013 to reach 5.7%. - Net fee and commission income increased by 30.9% in Q1, 2014 to RUB 58.0 bn, compared to RUB 44.3 bn in Q1, 2013. - The Group's operating income before provision charge for loan impairment increased by 16.5% to RUB 296.0 bn compared to RUB 254.1 bn in Q1, 2013 and was driven by growth of net interest income and net fee and commission income. - Operating expenses increased by 11.4% year-on-year, slower than operating income. As a result, Cost to Income ratio improved to 42.1% versus 44.0% in Q1, 2013. - Net provision charge for loan impairment amounted to RUB 77.1 bn, translating to Cost of risk of 220 basis points in Q1, 2014. Statement of financial position highlights: - As of 31 March, 2014, the Group's total assets reached RUB 19,109.6 bn showing a 4.9% growth (19.6% annualized) compared to 2013 year end, the main driver of the growth being an increase in loans to customers. - In Q1, 2014, net loans and advances to customers increased by 6.4% (25.6% annualized) to RUB 13,760.2 bn compared to RUB 12,933.7 bn at 2013 year end. - In Q1, 2014, the share of non-performing loans in Group's total gross loans increased to 3.2% as of 31 March 2014 (31 December 2013: 2.9%). - Customer deposits increased by 4.2% (16.8% annualized) to RUB 12,566.4 bn compared to RUB 12,064.2 bn at 2013 year end with the corporate deposits being the main driver of the growth. - The Group's Equity increased in Q1, 2014 by 2.4% (9.6% annualized) to RUB 1,925.7 bn, with net profit being the major driver. - The total capital adequacy ratio (Basel 1) decreased by 10 basis points to 13.3% as at 31 March 2014. The core capital adequacy ratio decreased by 20 basis points to 10.4%. Financial and Operating Review: Interest income in Q1, 2014 increased by 20.2% year-on-year to RUB 414.2bn. The increase is attributable to a significant expansion in volumes ofboth corporate and retail loans. Interest expenses in Q1, 2014 increased by 20.9% year-on-year to RUB 174.6bn. The largest component of interest expenses was related to retaildeposits, which are the core source of funds for the Group. In Q1, 2014cost of retail deposits remained stable as compared to 4Q, 2013 staying at5.3%. The average cost of corporate term deposits was also stable at 5.4%in comparison with 4Q, 2013. Net interest income in Q1, 2014 totaled RUB 239.6 bn, a 19.7% increaseyear-on-year. The increase is driven by growth of interest earning assetsin Q1, 2014, primarily loans. Net interest income remains the maincomponent of the Group's operating income accounting for 80.9% of totaloperating income before provision charges for loan impairment. Net interestmargin was under pressure mostly due to shift in loan book structure. The Group's net fee and commission income in Q1, 2014 totaled RUB 58.0 bn,a 30.9% increase year-on-year. Income from operations with bankcards wasthe key driver of the growth, expanding by 36.6% year-on-year. Customercash and settlement transactions also remained an important source of feeand commission income with share in fee and commission income 45.7% in Q1,2014. Other net losses, which include net gains / (losses) from operations withsecurities, foreign exchange, derivatives and precious metals and otheritems, totaled 1.6 bn versus 9.6 bn of other net gains in Q1, 2013. Themain driver for the losses were losses from operations with securities andprovision charge for other assets, contingencies and credit relatedcommitments. Total operating income before provision charge for loan impairment in Q1,2014 reached RUB 296.0 bn compared to RUB 254.1 bn in Q1, 2013, a 16.5%increase year-on-year. The growth was driven primarily by the expansion ofthe Group's core banking business. Net provision charge for loan impairment in Q1, 2014 totaled RUB 77.1 bncompared to RUB 31.8 bn in Q1, 2013 translating into Cost of risk of 220basis points versus 110 basis points in Q1, 2013. The Group's operating expenses in Q1, 2014 increased by 11.4% year-on-yearto RUB 124.6 bn. The main driver of this growth is increase in staff costsas a result of further business growth. Since operating income growthoutpaced the growth of operating expenses, the Group's cost to income ratioin Q1, 2014 decreased to 42.1% versus 44.0% in Q1, 2013. The Group's net profit in Q1, 2014 reached RUB 72.9 bn versus RUB 88.5 bnin Q1, 2013, a 17.6% decrease year-on-year. Decrease in net profit in Q1,2014 as compared to Q1, 2013 is explained mostly by a significant increasein cost of risk. As of 31 March 2014, the Group's total assets reached RUB 19,109.6 bn, a4.9% (19.6% annualized) increase since 31 December 2013. In Q1, 2014, the Group's gross loan portfolio before provision for loanimpairment increased by 6.6% (26.4% annualized). Gross loans to corporateclients increased by 7.4% (29.6% annualized) to RUB 10,517.3 bn; loans toindividuals increased by 4.6% (18.4% annualized) to RUB 3,920.0 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) increased in Q1, 2014 to 3.2% asat 31 March 2014 compared to 2.9% at the 2013 year end. The increase isexplained by overall economic turbulence in Q1, 2014. The NPL coverageratio (total provisions for loan impairment to non-performing loans)remained stable during Q1, 2014 at 1.5. Provisions for loan impairmentincreased in Q1, 2014 by 10.9% (43.6% annualized) reaching RUB 677.1 bn. Asof 31 March 2014, the proportion of provisions for loan impairment to totalgross loans was 4.7% compared with 4.5% at 2013 year end. As at 31 March 2013, the Group's total liabilities amounted to RUB 17,183.9bn, a 5.2% (20.8% annualized) increase for the first quarter. Retaildeposits, totaling RUB 8,303.5 bn as at 31 March 2014, decreased by 1.6%(-6.4% annualized). The growing political uncertainty and volatility offorex exchange rates cumulatively resulted in some outflow of retaildeposits in March from Russian banking system as a whole includingSberbank. Retail deposits remain the core source of the Group's funding,accounting for 48.3% of the Group's total liabilities. Corporate depositsincreased to RUB 4,262.9 bn as at 31 March 2014 showing a 17.5% (70.0%annualized) growth for the quarter, while their share in total liabilitiesamounted to 24.8%. As at 31 March 2014, the Group's amounts due to banks totaled 2,116.3 bnand remained stable versus 2013 year end. The Group's equity amounted to RUB 1,925.7 bn as at 31 March 2014, a 2.4%(9.6% annualized) increase in Q1, 2014. As at 31 March 2014, the Group'stotal capital adequacy ratio as per Basel 1 reached at 13.3%, well abovethe 8% minimum requirement, and the Tier 1 ratio was 10.4%. The decrease inthe ratios since 2013 year end explained by the RWA growth outpacingincrease in retained earnings. Sberbank Group's Financial Highlights for the three months ended 31 March2014 29.05.2014 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: 2063Time of Receipt: May 29, 2014 08:44:11 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.