5 Sep 2014 08:22
Sberbank / Miscellaneous 05.09.2014 08:22 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 January-August 2014 (under RAS;non-consolidated) Please note that the numbers are calculated in accordance with Sberbank'sinternal methodology. September 5, 2014 Income Statement Highlights for January-August 2014 (as compared toJanuary-August 2013): - Net interest income increased by 22.5% y-o-y - Net fee and commission income grew by 22.4% y-o-y - Noncredit commission income grew by 24.8% y-o-y - Operating income before total provisions increased by 23.7% y-o-y - Total provision charge was RUB189.2 bn vs. RUB74.1 bn charge in January-August 2013 - Operating expenses were up by 11.2% y-o-y - Net profit before income tax amounted to RUB317.5 bn, up by 2.2% vs. January-August 2013. Net profit totaled RUB252.6 bn, or down by 0.5% vs. January-August 2013. Please note that comparison to Net profit for the same period of 2013 is incorrect due to adjustments that reflect new CBR regulation on deferred tax assets and liabilities that came into force in 2014. Excluding the effect of the one-off change in accounting, net profit would have amounted to RUB261.6 bn, up by 3.1% vs. RUB253.8 bn in January-August 2013. Net interest income came at RUB565.9 bn, up by 22.5% compared toJanuary-August 2013: - Interest income increased by RUB192.6 bn driven by both corporate and retail loan portfolio growth; - Interest expenses grew by RUB88.5 bn, due to customer deposits growth (both corporate and retail) and increase in CBR funding volumes and costs. Net fee and commission income amounted to RUB170.2 bn; up by 22.4% y-o-ycompared to January-August 2013. Noncredit commission income growth remainsstrong, up by 24.8%, mostly driven by bank cards and acquiring. Commissionincome from insurance, pension and investment products, bank guaranties anddocumentary operations becomes more significant. Net income from trading operations amounted to RUB22.0 bn vs. RUB16.3 bnfor January-August 2013. Revenues on conversion operations increasedsignificantly (RUB32.8 bn vs. RUB10.0 bn), while there was a reduction ofincome on the securities market, as well as in July, due to the generalmarket situation. Operating income before provisions increased by 23.7% to reach RUB779.1 bn. Operating expenses increased by 11.2%. C/I ratio for January-August 2014decreased to 35.0% vs. 38.9% a year earlier. The general trend of C/Iimprovement y-o-y is achieved by the Bank's cost optimization program. TheBank managed to maintain the trend when pre-provision operating incomegrowth (23.7%) significantly outpaced operating expenses increase (11.2%). Total provision charges amounted to RUB189.2 bn vs. RUB74.1 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 are 2.1 times theoverdue loans. Profit before tax for January-August 2014 totaled RUB317.5 bn. As of thisyear deferred tax liability was reflected in the Balance Sheet (please noteSberbank releases Financial Highlights for January-May 2014 (under RAS;non-consolidated). Consequently, the net profit for January-August 2014amounted to RUB252.6 bn. Excluding the effect of adjustments that reflectnew regulation, the net profit for January-August 2014 would have increasedby 3.1% vs. corresponded period a year earlier, totaled RUB261.6 bn. In August assets increased by 0.8%, or RUB140 bn. The growth of the BalanceSheet in August, just like in July, was influenced by positive revaluationof FX component on ruble devaluation compared to key foreign currencies.Assets growth for January-August 2014 reached RUB1.2 trln, or 7.5%, mainlydue to total loan portfolio growth. The Bank lent over RUB460 bn to corporate clients in August. Totalcorporate loan issues for January-August 2014 reached RUB4.6 trln, or by19% more than for the same period last year. Total corporate loan portfolioincreased by RUB163 bn in August driven by both new loan demand as well aspositive revaluation of previously issued FX loans. Total corporate loanportfolio for January-August 2014 increased by over RUB1 trln, or 12.0%, toexceed RUB9.6 trln. The Bank lent about RUB180 bn to retail clients in August, of which about43% were mortgages. Total retail loan issues for January-August 2014reached over RUB1.3 trln, which exceeded the amount of issues for the sameperiod last year (excluding the credit cards turnover) by more than aquarter. Total retail loan portfolio increased by RUB79 bn in August toexceed RUB3.86 trln. The increase of the retail loan portfolio forJanuary-August 2014 amounted to RUB529 bn, or up 15.9%. The Bank keeps the quality of its loan portfolio at a good level: overdueloans remained at 2.5% level (as of September 1, 2014) for the past 12months. Securities portfolio slightly decreased (by RUB7.0 bn, or 0.4%) in Augustdue to redemptions of OFZ bonds as well as reduction of market values ofthe securities portfolio. Corporate funding decreased by RUB111 bn in August mainly due todemand/current accounts. Retail deposits and accounts increased by RUB79 bnin August, mainly from ruble deposits. For the first time in 2014 theirending balance exceeded that from the beginning of the year. The clients' funds remain the core source of funding for the Bank'soperations and reached RUB11.5 trln, or 65% of the Bank's liabilities, asof September 1, 2014. Core Tier 1 and Tier 1 capital (equal since Sberbank does not haveinstruments of additional capital) reached RUB1,460 bn as of September 1,2014 under preliminary calculations. Total capital amounted to RUB2,209 bnon the same date. Key constituents to affect total capital in August werenet profit contribution (+RUB31 bn) and revaluation of investments insubsidiaries (according to accounting methodology these investments loweredthe capital by RUB29 bn). As a result, total capital increased by RUB4 bnin August. Capital adequacy ratios under preliminary calculations as of September 1,2014 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 5.5%) - N1.0 - 12.0% (minimum adequacy level, required by the Central Bank of Russia at 10.0%, considering Deposit Insurance Regulation). Sberbank 8M 2014 Financial Highlights (under RAS, non-consolidated) Contact: 05.09.2014 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: 2232Time of Receipt: Sep 05, 2014 08:22:18 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.