7 Feb 2014 07:15
Sberbank / Miscellaneous 07.02.2014 08:15 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.--------------------------------------------------------------------------- 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, 2014. February 7, 2014 Income Statement Highlights for 1M 2014 (as compared to 1M 2013): - Net interest income grew by 24.9% y-o-y - Net fee and commission income grew by 26.3% y-o-y - Non-credit commission income grew by 24.5% y-o-y - Operating income before total provisions increased by 26.0% y-o-y - Total provision charge was RUB28.5 bn vs. a RUB11.5 bn charge in 1M 2013 - Operating expenses were up by 11.6% y-o-y - Profit before tax amounted to RUB38.4 bn vs. RUB39.2 bn for 1M 2013 - Net profit amounted to RUB31.6 bn vs. RUB31.8 bn for 1M 2013 Net interest income came at RUB72.2 bn, up 24.9% compared to 1M 2013: - Interest income increased by RUB22.3 bn driven by loan portfolio growth (both retail and corporate). - Interest expenses grew by RUB7.9 bn, more than a half of what was attributed to retail deposit expenses. Net fee and commission income amounted to RUB16.8 bn. The growth rate ofthis item remains high: 26.3% compared to 1M 2013. The bank increases theF&C income primarily due to Noncredit commission, which was highlycontributed by transactions with bank cards and acquiring. The Noncreditcommission growth rate has been accelerated since September 2013. Noncreditcommission income for 1M 2014 was 24.5% higher than for 1M 2013. Net income from trading operations amounted to RUB0.7 bn, which is betterthan last year. In common Operating income before provisions increased by 26.0% y-o-y andamounted to RUB90.4 bn. Operating expenses for 1M 2014 increased by 11.6% in comparison to expensesfor 1M 2013. C/I ratio for 1M 2014 was 26.0% vs. 29.3% for 1M 2013, howeverthis ratio on a month horizon is not representative enough due to variationof generated income and expenses. Nevertheless the improvement trend in C/Iratio is maintained by the Bank's cost optimization program. Total provision charges amounted to RUB28.5 bn for 1M 2014 vs. RUB11.5 bncharge a year earlier. The growth in provision charges can be explained bythe growth of the total loan portfolio, as well as the significantdepreciation of the Ruble against the major foreign currencies in 1M 2014,what also caused a significant increase in provisions for foreign currencyloans. Working in the time of current macroeconomic uncertainty, the Bankcontinues to maintain a conservative approach to provision forming forpossible losses, based on the requirements of the CBR. Sberbank maintainsan adequate level of the Coverage ratio: 2.2 times. Sberbank's Financial results for 1M 2014 are comparable with the resultsfor 1M 2013: Profit before tax amounted to RUB38.4 bn, Net profit wasRUB31.6 bn. Assets increased by RUB353 bn in January, or 2.2%, and amounted RUB16.7trn. The main growth drivers were corporate loans, securities and interbankloans. The Bank lent more than RUB600 bn to corporate clients in January, which isa record volume for Januaries. As a result Corporate loan portfolioincreased by 4.2% up to RUB8.9 trn. About RUB90 bn were lent to retail clients in January. Retail loanportfolio grew by RUB3.1 bn, or 0.1%, in January and exceeded RUB3.3 trn.In January there were seasonal repayment of consumer loans, while thecontinued strong growth in mortgage lending. With the loan portfolio growth the Bank retained its quality at a goodlevel: overdue loans was 2.27% as of February 1, 2014. Securities portfolio increased by RUB73 bn, or 3.7%, in January mainly dueto investment in Russia eurobonds and corporate bonds. Partially theincrease was associated with reflection peculiarities of REPO-operations. Amount of Cash, that the Bank highly maintained during New Year holidays,decreased by RUB157 bn as of February 1, 2014. The clients' funds remain the core source of funding the Bank's operations,it was 68% of the Bank's Balance as of February 1, 2014: Retail deposits and accounts decreased by RUB322 bn, or 4.0%, and amountedto RUB7.7 trn in January. Outflow in Januaries is the traditional beginning for the year: almost allthe outflow came throw the bank cards in the New Year holidays. Inaddition, the deposits volume decrease in January 2014 was the result of arecord deposits growth in December 2013, when clients got pensions-paymentsfor the two months at once: for December 2013 and January 2014. Corporate deposits and accounts demonstrated seasonal growth (+RUB458 bn or+14.7%) and amounted to about RUB3.6 trn. Effective from January 1, 2014 are changes to capital level calculationunder CBR regulation No 395-P and instruction No 139-I.The new methodologyunderlines three levels of capital - core tier 1, tier 1 and total - andcorresponding capital adequacy ratios: N1.1, N1.2 and N1.0. The amounts ofcore tier 1 and tier 1 capital as of February 1, 2014 for Sberbank were thesame, since Sberbank does not have instruments of additional capital, andunder preliminary calculations reached RUB1,347 bn. Total capital amountedto RUB2,051 bn. Compared to amount of total capital calculated under the previousmethodology (under CBR regulation No. 215-P) as of January 1, 2014, totalcapital increased by RUB48 bn as a result of net profit contribution aswell as change in calculation methodology. Capital adequacy ratios under preliminary calculations and not accountingfor net profit for 2013 to be included in capital post audit were: - N1.1 - 8.2% (minimum adequacy level, required by the Central Bank of Russia at 5.0%) - N1.2 - 8.2% (minimum required level at 5.5%) - N1.0 - 12.6% (minimum required level with Deposit insurance agency requirement at 11%). - - 07.02.2014 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: 1880Time of Receipt: Feb 07, 2014 08:15:32 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.