15 Jan 2016 08:41
Sberbank / MiscellaneousSberbank: Sberbank releases Financial Highlights for 2015 excluding theeffect of subsequent events (under RAS; non-consolidated) 15-Jan-2016 / 09:41 CET/CESTDissemination of a Regulatory Announcement, transmitted by EquityStory.RS,LLC - a company of EQS Group AG.The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Sberbank releases Financial Highlights for 2015 excluding the effect ofsubsequent events (under RAS; non-consolidated) 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, 2015 but excluded from the numbersas of January 1, 2016. January 15, 2016 Key highlights for December, 2015: - The inflow of customer funds for the month demonstrated a historic high of RUB1.4 trln: - retail deposits growth exceeded 9% to amount RUB10.9 trln. - corporate deposits growth exceeded 7% to amount RUB6.7 trln. - Funds of the CBR and the Federal Treasury were reduced by RUB0.5 trln. - Net profit in December exceeded RUB33.8 bn. Deputy Chairman of Sberbank Alexander Morozov stated: The Bank earned RUB236.3 bn in net profit excluding the effect ofsubsequent events while operating in difficult conditions in 2015, whichaccounted for 76% of the 2014 net profit. By the end of the year Sberbankmanaged to reduce the gap with the 2014 results thanks to sustainableimplementation of the cost optimization program, as well as repayment ofthe state funding in the amount of RUB3 trln. Analysis of the Statement of Financial Position and Statement of Profit orLoss for 2015, as compared to 2014: - Interest income increased by 21.3% y-o-y, interest expenses increased by 59.5% y-o-y. Net interest income decreased by 11.1% y-o-y - Noncredit commission income grew by 17.0% y-o-y, net fee and commission income increased by 4.4% y-o-y - Operating income before total provisions decreased by 9.2% y-o-y - Total provision charge was RUB397.6 bn vs. RUB397.9 bn charge for 2014 - Operating expenses decreased by 1.0% y-o-y - Net profit before income tax reached RUB283.9 bn vs. RUB394.6 bn for 2014 - Net profit totaled RUB236.3 bn (excluding the effect of subsequent events) vs. RUB311.2 bn (including subsequent events) Comments: Net interest income came at RUB763.2 bn. The lag in the pace of netinterest income growth in 2015 relative to 2014 is contracting: 27.9% (for3M 2015) vs. 11.1% (for 12M 2015). - Interest income increased by 21.3%, driven by clients' loan portfolio growth as well as improving yields on corporate portfolio. - Interest expenses increased by 59.5%, due to the increase in market interest rates and inflow of funds. Interest expenses growth continues to subside as a result of the gradual decrease in the CBR's key interest rate and as well as Sberbank's reduction of state funding. Net fee and commission income was up by 4.4%. The Bank continued todemonstrate growth of net fees and commission income despite the decline incommission income from corporate lending and banking insurance. Noncreditcommission income growth in the year end came at 17.0%, driven mostly bytransactional business with bank cards. Net income from FX revaluation and trading operations on capital marketsamounted to RUB68.6 bn for 2015 compared to RUB81.1 bn for 2014. Operating expenses decreased by 1.0% y-o-y for 2015 due to the Bank's costoptimization program. Administrative costs were reduced by 4.7% for theyear. Total provision charges amounted to RUB397.6 bn for 2015 similar to theamount in 2014. In December amount of provision charge came at RUB27.4 bnmostly driven by ruble devaluation relative to FX that required to formadditional reserves for FX loans. The Bank continues to form loan-lossprovisions in-line with the requirements of the Central Bank of Russia.Loan-loss provisions are 1.9 times the overdue loans. Net profit before income tax came at RUB283.9 bn for 2015 vs. RUB394.6 bnin 2014. Net profit totaled RUB236.3 bn (excluding the effect of subsequentevents) vs. RUB311.2 bn (including subsequent events). Assets increased by RUB1.3 trln in December to exceed RUB23 trln. Asignificant portion of the December growth was attributed to therevaluation of the Balance Sheet items. Assets increased by 5.6% over theyear. The Bank lent more than RUB1.2 trln to corporate clients in December, orRUB6.8 trln during the year. The loan portfolio ending balance increased byRUB417 bln, or by 3.5%, in December, mostly driven by the revaluation. Total corporate loan portfolio reached RUB12.3 trln as of January 1, 2016. The Bank lent about RUB160 bn to retail clients in December, from thebeginning of the year was over RUB1.2 trln. Total retail loan portfolioincreased by RUB16 bn, or 0.4%, in December to exceed RUB4.1 trln as ofJanuary 1, 2016. The share of mortgages in total retail portfolio increasedto 54% from 48% over the year. Overdue loans of total loans decreased by 0.1p.p. to 3.3% in December. Thelevel of overdue loans at Sberbank remains substantially lower than thelevel of the banking sector's average (6.6% as of December 1, 2015). Securities portfolio was up by RUB265 bn in December, or by 13.1%,primarily due to purchases of corporate Eurobonds and FX revaluation. Theportfolio ending balance reached RUB2.3 trln as of January 1, 2016. Retail deposits and accounts increased by RUB908 bn in December, or up by9.1% (excluding the effect from FX revaluation the portfolio increased by6.7%). Overall retail deposits and accounts portfolio reached almostRUB10.9 trln as of January 1, 2016. Since the beginning of the year retailfunds increased by 27.5%, whereas the portfolio was up by 5.9% during thelast year. Corporate funding increased by RUB449 bn in December, or by 7.1%, due toinflow of ruble funds from deposits as well as FX revaluation. Overallcorporate clients' funding increased by 32.9% to reach RUB6.7 trln by theend of the year. A record inflow of ruble funding from clients in December allowed tominimize the volume of funds borrowed from the Central Bank. Their share(excluding the subordinated loan) in total liabilities fell to 1.3% inDecember from 2.7% (as of 1/1/2015 the share was 15.2%). Altogether theBank redeemed RUB3.0 trln of the Central Bank and Federal Treasury fundingduring the year. Core Tier 1 and Tier 1 capital (equal since Sberbank does not haveinstruments of additional capital) reached RUB1.753 trln as of January 1,2016 under preliminary calculations. Total capital amounted to RUB2.679trln on the same date, up by RUB39 bn in December primarily due to netprofit. Capital adequacy ratios under preliminary calculations as of January 1,2016 were: - N1.1 - 8.0% (minimum adequacy level, required by the Central Bank of Russia at 5.0%) - N1.2 - 8.0% (minimum adequacy level, required by the Central Bank of Russia at 6.0%) - N1.0 - 12.1% (minimum adequacy level, required by the Central Bank of Russia at 10.0%, considering Deposit Insurance Regulation). Sberbank 2015 Financial Highlights excluding the effect of subsequentevents (under RAS, non-consolidated) --------------------------------------------------------------------------- 15-Jan-2016 The EquityStory.RS, LLC Distribution Services include RegulatoryAnnouncements, Financial/Corporate News and Press Releases.Media archive at www.dgap.de/ukreg --------------------------------------------------------------------------- Language: English Company: Sberbank 19 Vavilova St. 117997 Moscow Russia Phone: +7-495-957-57-21 E-mail: media@sberbank.ru Internet: www.sberbank.ru ISIN: US80585Y3080, RU0009029540, RU0009029557, US80585Y4070 Listed: Open Market (Entry Standard) in Frankfurt ; London, MICEX, RTS Category Code: MSC TIDM: SBER Sequence Number: 2956 Time of Receipt: 15-Jan-2016 / 09:10 CET/CEST End of Announcement EquityStory.RS, LLC News Service --------------------------------------------------------------------------- 429645 15-Jan-2016UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.