7 Jul 2014 08:26
Sberbank / Miscellaneous 07.07.2014 08:25 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. July 7, 2014 Income Statement Highlights for 6M 2014 (as compared to 6M 2013): - Net interest income increased by 24.5% y-o-y - Net fee and commission income grew by 24.0% y-o-y - Noncredit commission income grew by 26.4% y-o-y - Operating income before total provisions increased by 22.5% y-o-y - Total provision charge was RUB136.9 bn vs. RUB47.5 bn charge for 6M 2013 - Operating expenses were up by 11.1% y-o-y - Net profit amounted to RUB186.4 bn. Please note that the comparison to Net profit for the same period of 2013 is incorrect due to adjustments that reflect the new CBR regulation on deferred tax assets and liabilities. Excluding the effect of the one-off change in accounting, net profit would have amounted to RUB196.8 bn vs. RUB191.8 bn for 6M 2013. Net interest income came at RUB415.1 bn, up by 24.5% compared to that ofJanuary-June 2013: - Interest income increased by RUB144.2 bn driven by both corporate and retail loan portfolio growth; - Interest expenses grew by RUB62.6 bn, mostly due to customer deposits growth and increase in CBR funding volumes and costs; - The growth rate of interest income outpaces the growth rate of interest expenses by 50bp. Net fee and commission income amounted to RUB125.6 bn; up by 24.0% y-o-ycompared to that of January-June 2013, contributed primarily by noncreditcommission income that was up by 26.4%, mostly driven by bank cardstransactions, acquiring, cash settlements as well as guarantees issuanceand trade finance. Net income from trading operations amounted to RUB4.6 bn vs. RUB13.7 bn forJanuary-June 2013. The dynamics is mostly associated with a reduction ofincome on the securities market due to the general market situation. Netincome on conversion operations increased by 17.8%. Operating income before provisions that is generated by core operations ofthe Bank, increased by 22.5% to reach RUB558.7 bn. Operating expenses increased by 11.1%. C/I ratio for 6M 2014 improved to34.8% from 38.4% a year earlier. The improvement in C/I ratio is attributedto the Bank's cost optimization program. Pre-provision operating incomegrowth significantly exceeds operating expenses growth (22.5% vs. 11.1%). Total provision charges amounted to RUB136.9 bn vs. RUB47.5 bn charge ayear earlier. The Bank continues to practice a conservative approach inloan-loss provisioning based on requirements of the Central Bank of Russia.Coverage ratio remained strong: loan-loss provisions were 2.2 times theoverdue loans. Profit before tax for 6M 2014 totaled RUB227.4 bn. As per new CBRregulation No 409-P Sberbank made an accounting reporting change in May inits Balance Sheet to reflect a deferred tax liability (please see FinancialHighlights for 5M 2014 press release). As a result of the change, the netprofit for January-June 2014 amounted to RUB186.4 bn, 2.8% less than thenet profit for the corresponding period last year. Excluding the effect ofthe accounting one-off, the net profit for 6M 2014 would have reachedRUB196.8 bn, or 2.6% higher than the net profit for the correspondingperiod last year. Assets growth for 6M 2014 exceeded a trillion rubles, or 6.3%, mainly dueto total loan portfolio growth. In June assets decreased by 0.6% on thedecrease of amounts due to banks. The Bank lent over RUB560 bn to corporate clients in June. Total corporateloan issues for 6M 2014 reached RUB3.6 tln, or RUB1 tln more than for thesame period last year. Total corporate loan portfolio decreased by RUB37 bnin June on revaluation of FX loans. Total corporate loan portfolio for 6M2014 increased by RUB790 bn, or 9.2% to reach RUB9.4 tln. The Bank lent about RUB175 bn to retail clients in June, of which overRUB70 bn were mortgages. Total retail loan issues for 6M 2014 reached aboutRUB1 tln, which exceeded the amount of issues for the same period last year(excluding the credit cards turnover) by more than RUB200 bn. Total retailloan portfolio increased by RUB74 bn in June to reach RUB3.7 tln. Theincrease of the retail loan portfolio for 6M 2014 amounted to RUB361 bn, orup 10.8% YTD. The Bank keeps the quality of its loan portfolio at a good level: overdueloans improved to 2.4% from 2.5% of total loan portfolio in June. Securities portfolio decreased by RUB13.2 bn, or 0.7% in June due toredemptions of sub-federal and corporate bonds. The clients' funds remain the core source of funding for the Bank'soperations. Retail deposits and accounts increased by RUB75 bn in June. Asof 23rd of June Sberbank started to offer more attractive terms on itsonline retail deposits and certificates. Retail deposits and accountsportfolio decreased by RUB79 bn, or 1.0%, for 6M 2014 to about RUB8 tln. Corporate funding decreased by RUB270 bn in June mainly due to termdeposits, as well as revaluation of FX deposits. Corporate deposits andaccounts portfolio increased by RUB475 bn, or 15.2% to RUB3.6 tln for 6M2014. To finance its current operations the Bank received a subordinated loanfrom the Central Bank of Russia for RUB200 bn, as well as issued its firstEURO denominated Eurobond for EUR1 bn at 3.35% for 5.5 years. The creditrating of the issue corresponds to the country rating of Russia (Baa1/BBB). Core Tier 1 and Tier 1 capital (equal since Sberbank does not haveinstruments of additional capital) reached RUB1,494 bn as of July 1, 2014under preliminary calculations. Total capital amounted to RUB2,183 bn onthe same date. Key constituents to affect total capital in June weredividend payment for 2013 as per AGM decision (-RUB72.3 bn), net profitcontribution (+RUB31.1 bn) and revaluation of investments in subsidiaries(+RUB7.8 bn). As a results, total capital decreased by RUB37 bn in June. Capital adequacy ratios under preliminary calculations as of July 1, 2014were: - N1.1 - 8.4% (minimum adequacy level, required by the Central Bank of Russia at 5.0%) - N1.2 - 8.4% (minimum adequacy level, required by the Central Bank of Russia at 5.5%) - N1.0 - 12.2% (minimum adequacy level, required by the Central Bank of Russia at 10.0%, considering Deposit Insurance Regulation). Sberbank 6M 2014 Financial Highlights (under RAS, unconsolidated) 07.07.2014 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: 2106Time of Receipt: Jul 07, 2014 08:25:49 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.