7 Jun 2016 08:45
Sberbank / Miscellaneous - Medium PrioritySberbank: Sberbank releases Financial Highlights for 5M 2016 (under RAS;non-consolidated) 07-Jun-2016 / 09:45 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 5M 2016 (under RAS;non-consolidated) Please note that the numbers are calculated in accordance with Sberbank'sinternal methodology.June 7, 2016Key highlights for May, 2016:* The Bank earned net profit of RUB42.0 bn in May* Profitability improvement continues thanks to net interest income and feeand commission income growth* Inflow of clients' funds in the amount of RUB271 bn allowed the Bank toreduce the share of government funding in liabilities to 0.7% (excludingsubordinated debt)* Corporate overdue loans continued to decline (-RUB11 bn in May) due toplanned actions in resolving problem debtsDeputy Chairman of Sberbank Alexander Morozov stated: 'Operating income growth on the back of stabilization of the loan portfolioquality and strict cost control ensured organic capital creation. Thesefactors should continue to support capital creation going forward to enableus to achieve capital adequacy ratio target for the year.' Comments for 5M 2016:Net interest income came at RUB446.8 bn, by 63.2% compared to 5M 2015:Interest income increased by 7.6%, mostly driven by the increase in volumesof working assets; Interest expenses came down by 21.7% due to the decreasein market rates and the substitution of state funding with clients' funds.Fee and commission income was up by 28.6% to RUB118.7 bn, driven bytransactional business with bank cards and acquiring, cash settlements aswell as bank insurance.Net income from FX revaluation and trading operations on capital marketsamounted to -RUB24.3 bn, in May coming at RUB5.8 bn.Operating expenses increased by 8.5%, which was significantly slower thanpre-provision operating income growth (+48.0%). The increase in operatingexpenses was driven by indexation of wages.Total provision charges amounted to RUB138.3 bn vs. RUB139.5 bn a year ago.The Bank continues to form loan-loss provisions in-line with therequirements of the Central Bank of Russia. Loan-loss provisions are 2.1times the overdue loans.Net profit before income tax came at RUB238.2 bn vs. RUB71.8 bn for 5M2015. Net profit totaled RUB184.3 bn, which was 3.1 times higher than theresult for 5M 2015.Total comprehensive income amounted to RUB229.1 bn (this item, in additionto net profit, includes net income from revaluation of financial assetsavailable-for-sale and held-to-maturity).Assets in May decreased immaterially, by 0.3%. The Bank lent about RUB540 bn to corporate clients in May. Corporate loanissues from the beginning of the year reached RUB3.3 trln. The loanportfolio ending balance increased by RUB56 bn; total corporate loanportfolio reached RUB11.9 trln.The Bank lent about RUB120 bn to retail clients in May. Retail loan issuesfrom the beginning of the year exceeded RUB580 bn. Total retail loanportfolio increased by RUB14 bn in May to reach RUB4.2 trln as of June 1,2016. The share of mortgages in retail portfolio exceeds 55%.Thanks to a number of undertaken measures the level of corporate overdueloans was reduced by RUB11 bn in May, and by RUB38 bn, or by 10%, since thebeginning of the year. Overdue loans of total loans were down to 3.2% inMay from 3.3%. The level of overdue loans at Sberbank remains substantiallylower than the level of the banking sector's average (6.9% as of May 1,2016).Securities portfolio was up by RUB39 bn in May due to corporate bonds. Theportfolio ending balance was RUB2.4 trln as of June 1, 2016.Total deposits and accounts increased by RUB271 bn in May, or by 1.6%.Retail deposits and accounts increased by RUB119 bn to RUB10.8 trln, whilecorporate deposits and accounts increased by RUB153 bn to RUB6.5 trln.Inflow of client funds allowed to reduce the volume of more expensive fundsborrowed from the Central Bank and Federal Budget in the amount of RUB311bn in May. Their share (excluding the subordinated loan) in totalliabilities was 0.7% as of June 1, 2016.Core Tier 1 and Tier 1 capital (equal since Sberbank does not haveinstruments of additional capital) reached RUB1,954 bn as of June 1, 2016under preliminary calculations. The audited net profit for 1Q2016 was themajor growth factor of Core Tier 1 and Tier 1 capital in May. Total capitalamounted to RUB2,770 bn as of June 1, 2016.Risk-weighted assets increased by RUB126 bn in May under preliminarycalculations mainly due to the increase of corporate loan portfolio and AFSsecurities.Capital adequacy ratios under preliminary calculations as of June 1, 2016were:* N1.1 - 8.3% (minimum adequacy level, required by the Central Bank ofRussia at 4.5%)* N1.2 - 8.3% (minimum adequacy level, required by the Central Bank ofRussia at 6.0%)* N1.0 - 11.8% (minimum adequacy level, required by the Central Bank ofRussia at 8.0%, considering Deposit Insurance Regulation). Sberbank 5M 2016 Financial Highlights (under RAS, non-consolidated) --------------------------------------------------------------------------- 07-Jun-2016 The EquityStory.RS, LLC Distribution Services include RegulatoryAnnouncements, Financial/Corporate News and Press Releases.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: MSCM TIDM: SBER Sequence Number: 3194 Time of Receipt: 07-Jun-2016 / 09:14 CET/CEST End of Announcement EquityStory.RS, LLC News Service --------------------------------------------------------------------------- 469661 07-Jun-2016UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.