7 Apr 2014 08:21
Sberbank / Miscellaneous 07.04.2014 08:21 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 isincluded in the numbers as of January 1, 2014. April 7, 2014 Income Statement Highlights for 1Q 2014 (as compared to 1Q 2013): - Net interest income increased by 26.3% y-o-y - Net fee and commission income grew by 26.7% y-o-y - Noncredit commission income grew by 29.4% y-o-y - Operating income before total provisions increased by 25.5% y-o-y - Total provision charge was RUB70.3 bn vs. RUB25.4 bn charge in 1Q 2013 - Operating expenses were up by 14.9% y-o-y - Profit before tax amounted to RUB121.5 bn vs. RUB121.1 bn for 1Q 2013 - Net profit amounted to RUB99.3 bn vs. RUB97.4 bn for Q1 2013 Net interest income came at RUB205.8 bn, up by 26.3% compared to 1Q 2013: - Interest income increased by RUB68.8 bn driven by total loan portfolio growth. - Interest expenses grew by RUB26.0 bn, due to customer deposits growth. Net fee and commission income amounted to RUB58.8 bn; up by 26.7% y-o-ycompared to 1Q 2013. Noncredit commission income provides such high growthrates, up by 29.4%, mostly driven by bank cards and acquiring. Cashsettlements also contribute significantly. Net income from trading operations amounted to RUB4.0 bn vs. RUB7.2 bn for1Q 2013. The dynamics is mostly associated with a reduction of income onthe securities market due to the general market situation. Net income onconversion operations increased 2 times, amounted to RUB11.9 bn. Operating income before provisions that comes from core operations of theBank, increased by more than a quarter and amounted to RUB276.7 bn. Operating expenses increased by 14.9%. C/I ratio for 1Q 2014 was 30.7% vs.33.6% a year earlier. The improvement in C/I ratio is maintained by theBank's cost optimization program. Total provision charges amounted to RUB70.3 bn vs. RUB25.4 bn charge a yearearlier. The growth in provision charges can be explained by the growth ofthe total loan portfolio, as well as significant Ruble depreciation againstmajor foreign currencies in 1Q 2014 that caused a significant increase inprovisions for foreign currency loans. The Bank continues to practice aconservative approach in loan-loss provisioning based on requirements ofthe Central Bank of Russia. Coverage ratio remained strong: loan-lossprovisions are 2.1 times the overdue loans. Profit before tax for 1Q 2014 totaled to RUB121.5 bn and net profitamounted to RUB99.3 bn. Both figures exceeded results for the same periodof 2013. Assets increased by RUB200 bn in March, or 1.2%, and exceeded RUB17 trn.The main growth drivers were loans, particularly corporate. The assetsgrowth YTD reached 4.7%; the positive reevaluation due to Ruble devaluationagainst prime foreign currencies (+3.0 RUB / USD and +4.1 RUB / EUR duringthe quarter) supported growth of balance sheet items with FX component. The Bank lent over RUB770 bn to corporate clients in March, exceeding theaverage monthly lending volume in 2013 by a quarter. Corporate loanportfolio increased by 1.8% to RUB9.2 trn: new demand significantlyexceeded redemptions. More than RUB170 bn were lent to retail clients in March. Retail loanportfolio increased by RUB67.5 bn, or 2.0% in March, to reach RUB3.45 trn,driven by mortgages. The Bank retains quality of its loan portfolio at a good level: overdueloans were 2.4% as of April 1, 2014. Securities portfolio decreased by RUB78 bn, or 3.9%, in March mainly due toredemptions of OFZ bonds and repayments of corporate bonds. The clients' funds remain the core source of funding for the Bank'soperations: the deposits and accounts increased by RUB476 bn, or 4.3% YTD,the portfolio exceeding RUB11.6 trn as of April 1, 2014. The growth wasdriven by corporate current accounts, and fully netted the outflow ofretail funds in 1Q2014. The 2013 net profit audit by Ernst & Young Vneshaudit allowed reclassifying2H2013 net profit from Tier 2 to Tier 1 capital. Consequently, Core Tier 1and Tier 1 capital growth (equal since Sberbank does not have instrumentsof additional capital) reached RUB180 bn. The Core Tier 1 and Tier 1capital as of April 1, 2014 amounted to RUB1,564 bn under preliminarycalculations. Total capital amounted to RUB2,182 bn on the same date. Totalcapital increased by RUB29 bn in March as a result of net profitcontribution. Capital adequacy ratios under preliminary calculations as of April 1, 2014were: - N1.1 - 9.3% (minimum adequacy level, required by the Central Bank of Russia at 5.0%) - N1.2 - 9.3% (minimum required level at 5.5%) - N1.0 - 12.9% (minimum required level with Deposit Insurance Regulation at 10.0%). Sberbank 1Q 2014 Financial Highlights (under RAS, unconsolidated) 07.04.2014 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: 1980Time of Receipt: Apr 07, 2014 08:21:18 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.