12 May 2015 09:41
Sberbank / Statement/Miscellaneous 12.05.2015 09:41 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 4M, 2015 (under RAS;non-consolidated) Please note that the numbers are calculated in accordance with Sberbank'sinternal methodology. May 12, 2015 Income Statement Highlights for 4M, 2015 (as compared to 4M, 2014): - Interest income increased by 29.4% y-o-y, but interest expenses increased by 104.0% y-o-y. Net interest income decreased by 27.0% y-o-y - Noncredit commission income grew by 14.9% y-o-y, net fee and commission income decreased by 3.6% y-o-y - Operating income before total provisions decreased by 23.9% y-o-y - Total provision charge was RUB104.1 bn vs. RUB106.0 bn charge for 4M, 2014 - Operating expenses were up by 5.4% y-o-y - Net profit before income tax reached RUB55.2 bn vs. RUB149.9 bn for 4M, 2014 - Net profit totaled RUB48.8 bn vs. RUB129.8 bn for 4M, 2014. Increase in cost of the CBR's funding and cost of client funds (mostly corporate funds) were the main drivers for the decline in Net profit. Net interest income came at RUB201.2 bn, down by 27.0% compared to that for4M, 2014: - Interest income increased by RUB142.4 bn, or 29.4% driven by loan portfolio growth and increase in corporate loan interest rates. - Interest expenses increased by RUB216.9 bn, or 104.0% due to inflow of funds as well as increase of market interest rates. The strongest effect on interest expense came from the CBR funding and client deposits (mostly corporate) that reacted at a faster pace upon the increase in the key interest rate. Slowdown on interest expenses growth in April continued driven by the gradual decrease in the key interest rate by the CBR from the beginning of 2014. Net fee and commission income came at RUB79.7 bn in 4M, 2015 that was 3.6%lower than in 4M, 2014, driven by decline in commission income fromcorporate lending due to lending slowdown. On the contrary, noncreditcommission income increased by 14.9%. Transactions with bank cards andacquiring remain main drivers in noncredit commission income growth. Also,there was significant increase in income from cash settlements and bankguaranties. Net income from FX revaluation and trading operations on capital marketsamounted to RUB4.1 bn for 4M, 2015. Operating expenses increased by 5.4% y-o-y for 4M, 2015 due to the increasein staff costs. Other operating costs decreased by 12.1% due to the Bank'scost optimization program. Marketing, cash settlement and cash collectionexpenses demonstrated the most decline. Please note, that comparison of 2015 staff costs to staff costs for thesame period of 2014 is not quite correct. Effective 2015 the Bank usesaccrual method in staff costs accounting to spread these costs more evenlyacross the year. Excluding the effect of this adjustment, operatingexpenses for 4M, 2015 decreased by 1.9% y-o-y. Total provision charges amounted to RUB104.1 bn for 4M, 2015 vs. RUB106.0bn a year earlier. The Bank continues to practice a conservative approachin loan-loss provisioning based on requirements of the Central Bank ofRussia. Coverage ratio remained strong: loan-loss provisions are 2.1 timesthe overdue loans. Net profit before income tax came at RUB55.2 bn for 4M, 2015 vs. RUB149.9bn a year earlier. Net profit totaled RUB48.8 bn vs. RUB129.8 bn. Assets decreased by 3.5% in April to reach RUB20.0 trln. The decrease wasmostly driven by negative revaluation of FX component on rubleappreciation. The Bank lent about RUB380 bln to corporate clients in April, while issuesfrom the beginning of the year reached about RUB1.5 trln. Total corporateloan portfolio decreased by 5.1% in April to RUB10.8 trln from bothnegative revaluation of previously issued FX loans and repayments exceedingnew issues. The Bank lent about RUB90 bn to retail clients in April, which exceededaverage monthly issues of 1Q by nearly a third. In total the volume of newloan issues to retail clients from the beginning of the year was aboutRUB300 bln. Total retail loan portfolio remained relatively flat over themonth (-0.1%) at RUB4.0 trln. Overall the structure of retail loanportfolio continues to change: the share of mortgages is increasing (about60% of issued loans), while the share of consumer unsecured loans iscontracting (about 60% of repaid loans). Overdue loans increased by 0.4p.p. to 2.8% of total loans in April, whichreflects current macroeconomic situation in the country. Nonetheless thelevel of overdue loans at Sberbank is nearly half the level of the bankingsector's average. Securities portfolio was down by RUB86 bn in April, or by 4.7%, mainly fromvolumes decrease and revaluation effect of FX denominated Eurobonds ofcorporate clients. The portfolio ending balance was RUB1.75 trln as of May1, 2015. Retail deposits and accounts increased by RUB164 bn in April, or up by1.9%. Should there have not been the revaluation effect the portfolio wouldhave increased by about RUB350 bn, which is double the biggest monthlyincrease since the beginning of 2014. The inflow of funds was both to rubleand FX deposits as well as savings certificates. Overall retail depositsand accounts portfolio reached RUB8.8 trln as of May 1, 2015. Corporate funding decreased by RUB237 bn in April, or down by 4.5%, solelyfrom FX revaluation effect. Should there have not been the revaluationeffect the portfolio would have increased by about RUB50 bn on FX funds.Overall corporate clients' funding reached RUB5.0 trln as of May 1, 2015. The CBR and Federal Treasury funding decreased by RUB317 bn, or 12.2%, inApril. This source of liquidity remains the most expensive, and, in orderto reduce the overall cost of fund the Bank continuously replaces it withclients' funds. The share of the CBR funding (excluding the subordinatedloan) in the Bank liabilities reached 10.0% as of May 1, 2015, down from15.2% as of January 1, 2015. Core Tier 1 and Tier 1 capital (equal since Sberbank does not haveinstruments of additional capital) reached RUB1,724 bn as of May 1, 2015under preliminary calculations. Total capital amounted to RUB2,515 bn onthe same date. Risk-weighted assets decreased by RUB341 bn in April mainly due to loweredcredit risk on Balance Sheet items (by RUB118.5 bn) from the contraction ofthe loan portfolio, and from lowered credit risk on derivative instruments(by RUB232 bn) from strengthening of ruble. Capital adequacy ratios under preliminary calculations as of May 1, 2015were: - N1.1 - 9.0% (minimum adequacy level, required by the Central Bank of Russia at 5.0%) - N1.2 - 9.0% (minimum adequacy level, required by the Central Bank of Russia at 6.0%) - N1.0 - 13.0% (minimum adequacy level, required by the Central Bank of Russia at 10.0%, considering Deposit Insurance Regulation). Sberbank 4M 2015 Financial Highlights (under RAS, non-consolidated) 12.05.2015 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: Open Market (Entry Standard) in Frankfurt ; London, MICEX, RTSCategory Code: MSCTIDM: SBERSequence Number: 2664Time of Receipt: May 12, 2015 09:10:44 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.