16 Jan 2015 07:35
Sberbank / Miscellaneous 16.01.2015 08:34 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 releases Financial Highlights for 2014 (under RAS;non-consolidated) excluding the effect of subsequent events 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 but excluded from the numbersas of January 1, 2015. January 16, 2015 Income Statement Highlights for 2014 (as compared to 2013): - Net interest income increased by 18.3% y-o-y - Net fee and commission income grew by 21.4% y-o-y - Noncredit commission income grew by 24.0% y-o-y - Operating income before total provisions increased by 26.8% y-o-y - Total provision charge was RUB397.7 bn vs. RUB104.8 bn in 2013 - Operating expenses were up by 9.6% y-o-y - Net profit before income tax decreased by 14.3% amounted to RUB400.1 bn. - Net profit totaled RUB305.7 bn (excluding the effect of subsequent events) vs. RUB377.7 bn in 2013 (including subsequent events). Significant provision charge for impairment, exclusion of revaluation of investments in foreign subsidiaries from Profit & Loss Statement and reflection of deferred tax liabilities due to the new CBR regulation that came into force since May 2014 were the main drivers of decrease in Net profit in 2014. Net interest income came at RUB853.7 bn, up by 18.3% compared to the yearearlier: - Interest income increased by RUB313.4 bn driven by both corporate and retail loan portfolio growth; - Interest expenses grew by RUB181.2 bn, due to customer deposits growth (both corporate and retail) and increase in CBR funding volumes and costs. Funding costs of Federal Treasury and CBR sources in particular increased significantly as a consequence to the key rate hike to 17% in December. Net fee and commission income amounted to RUB276.9 bn; up by 21.4% comparedto the year earlier. Noncredit commission income that was up by 24.0%,mostly driven by bank cards transactions and acquiring (+32.2%, or RUB30.7bn in 2014), in December coming to RUB14.9 bn. The main driver of bankcards transactions and acquiring income growth in December was significantincrease in volumes of transactions by cardholders. Commission income frombank guaranties, trade finance deals and documentary operations, insuranceand investment products also demonstrated accelerating growth in 2014. Net income from FX revaluation and trading operations on capital marketsamounted to RUB82.1 in 2014, 3.7 times higher than a year earlier. The maindriver was provisioning for FX loans against ruble devaluation relative tokey foreign currencies, even when these loans demonstrated no qualitydeterioration (around RUB48 bn in Q4, 2014). In accordance to regulation onthe open currency position, provisions related to revaluation of FX loansare reported as assets and liabilities to manage open currency position.Revaluation of this provisions as well as other FX assets and liabilitiesare reported as conversion income. As a result, the growth of income fromtrading operations was technically influenced by an increase in provisioncharges for FX loans. Operating income before provisions increased by 26.8% to exceed RUB1.25trln. Operating expenses increased by 9.6%. C/I ratio decreased by 5.8 ppt to36.6% due to the Bank's cost optimization program. Pre-provision operatingincome growth (26.8%) significantly outpaced operating expenses increase(9.6%). Total provision charges amounted to RUB397.7 bn vs. RUB104.8 bn charge ayear earlier. More than 45% of total provision charges for 2014 were madein Q4. During the period sharp ruble devaluation relative to key foreigncurrencies required to form additional reserves for FX loans, with nodeterioration of credit quality. In addition, worsening of themacroeconomic situation in the Ukraine required to form additional reservesfor some large Ukrainian borrowers. The Bank continues to practice a conservative approach in loan-lossprovisioning based on requirements of the Central Bank of Russia. Coverageratio remained strong: loan-loss provisions are 2.6 times the overdue loans(as of January 1, 2014 coverage ratio was 2.2). Net profit before income tax decreased by 14.3% amounted to RUB400.1 bn.Net profit totaled RUB305.7 bn (excluding the effect of subsequent events)vs. RUB377.7 bn for 2013 (including subsequent events). Assets increased by 33.2% to reach RUB21.8 trln for FY2014. Almost a thirdof the increase was attributed to positive revaluation of FX component onruble devaluation. The most growth in the Bank's Balance Sheet was in theending balances of corporate and retail loans. The Bank lent RUB1.4 trln to corporate clients in December. Total corporateloan issues for FY2014 reached around RUB8 trln, or by 8.8% more than ayear earlier. Total corporate loan portfolio increased by RUB893 bn inDecember driven by both new loan demand as well as positive revaluation ofpreviously issued FX loans. Total corporate loan portfolio for FY2014increased by RUB3.1 trln, or 36.3%, to reach RUB11.7 trln. The Bank lent over RUB200 bn to retail clients in December. Total retailloan issues for FY2014 reached RUB2 trln, which exceeded the amount ofissues for the same period last year (excluding the credit cards turnover)by 10%. Total retail loan portfolio increased by RUB55 bn in December andby RUB737 bn, or 22.1%, for FY2014 to reach almost RUB4.1 trln. Almost halfof the retail loan portfolio are mortgages. Overdue loans came at 2.0% of total loans (as of January 1, 2015), down by20bp for FY2014. Securities portfolio was reduced by RUB35.9 bn for FY2014, or by 1.8%, toreach RUB1.9 trln as of January 1, 2015. Corporate funding increased by RUB966 bn in December due to seasonal growthin term deposits and revaluation of clients' FX funds. Overall corporatedeposits and accounts portfolio increased by RUB1 949 bn, or 62.5%, forFY2014 to reach RUB5.1 trln as of January 1, 2015. Retail deposits and accounts increased by RUB192 bn in December frominflows of new funds as well as from revaluation of FX deposits. Overallretail deposits and accounts portfolio increased by RUB473 bn, or 5.9%, forFY2014 to reach RUB8.5 trln as of January 1, 2015. Core Tier 1 and Tier 1 capital (equal since Sberbank does not haveinstruments of additional capital) reached RUB1,630 bn as of January 1,2015 under preliminary calculations. Total capital amounted to RUB2,254 bnon the same date. Capital adequacy ratios under preliminary calculations as of January 1,2015 were: - N1.1 - 8.2% (minimum adequacy level, required by the Central Bank of Russia at 5.0%) - N1.2 - 8.2% (minimum adequacy level, required by the Central Bank of Russia at 5.5%) - N1.0 - 11.2% (minimum adequacy level, required by the Central Bank of Russia at 10.0%, considering Deposit Insurance Regulation). Sberbank 12M 2014 Financial Highlights (under RAS, non-consolidated)excluding the effect of subsequent events 16.01.2015 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: Frankfurt in Open Market (Entry Standard) ; MICEX, RTSCategory Code: MSCTIDM: SBERSequence Number: 2474Time of Receipt: Jan 16, 2015 08:34:44 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.