7 Aug 2014 08:12
Sberbank / Miscellaneous 07.08.2014 08:12 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. August 7, 2014 Income Statement Highlights for January-July 2014 (as compared toJanuary-July 2013): - Net interest income increased by 23.7% y-o-y - Net fee and commission income grew by 23.0% y-o-y - Noncredit commission income grew by 25.9% y-o-y - Operating income before total provisions increased by 23.7% y-o-y - Total provision charge was RUB162.6 bn vs. RUB67.3 bn charge in January-July 2013 - Operating expenses were up by 11.5% y-o-y - Net profit amounted to RUB222.1 bn. 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. Excluding the effect of the one-off change in accounting, net profit would have amounted to RUB232.4 bn vs. RUB220.3 bn in January-July 2013. Net interest income came at RUB490.8 bn, up by 23.7% compared toJanuary-July 2013: - Interest income increased by RUB169.1 bn driven by both corporate and retail loan portfolio growth; - Interest expenses grew by RUB75.1 bn, mostly due to customer deposits growth and increase in CBR funding volumes and costs. Net fee and commission income amounted to RUB148.1 bn; up by 23.0% y-o-ycompared to January-July 2013. Noncredit commission income growth remainsstrong, up by 25.9%, mostly driven by bank cards, acquiring, cashsettlements, bank guaranties and documentary operations. Net income from trading operations amounted to RUB16.9 bn vs. RUB16.5 bnfor January-July 2013. Revenues on conversion operations increasedsignificantly (+129.5%), while there was a reduction of income on thesecurities market due to the general market situation. Operating income before provisions that is generated by core operations ofthe Bank, increased by 23.7% to reach RUB674.4 bn. Operating expenses increased by 11.5%. C/I ratio for January-July 2014improved to 34.4% vs. 38.1% a year earlier due to the Bank's costoptimization program. Pre-provision operating income growth outpacedoperating expenses increase more than twice (23.7% vs. 11.5%). Total provision charges amounted to RUB162.6 bn vs. RUB67.3 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-July 2014 totaled RUB280.1 bn. In May, 2014deferred 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-July 2014amounted to RUB222.1 bn, 0.8% more than the net profit for thecorresponding period last year. Excluding the effect of adjustments thatreflect new regulation, the net profit for January-July 2014 would havetotaled RUB232.4, up by 5,5% vs. January-July 2013. Assets increased by RUB63 bn in July, or 0.4%. FX revaluation hadsignificant impact on the Balance Sheet items growth in July due to theruble depreciation against major foreign currencies. The assets growth YTDcame at RUB1.1 trln, or 6.7% primarily due to credit portfolio growth. The Bank lent around RUB440 bn to corporate clients in July. InJanuary-July 2014 the Bank lent RUB4.1 trln, that was RUB0.8 trln more thanin January-July 2013. Corporate loan portfolio increased by RUB73 bn inJuly. The increase was driven by both new lending and positive revaluationof existing FX portfolio. Corporate portfolio growth YTD came at RUB863 bn,or 10.1%, exceeding RUB9.4 trln. The Bank lent more than RUB190 bn to retail clients in July; where aroundRUB85 bn were mortgages. In January-July the Bank lent more than RUB1.15trln to retail clients exceeding the amount for the corresponding periodlast year (excluding credit cards turnover) by more than RUB250 bn. Retailclients portfolio in July increased by RUB90 bn. YTD growth came at RUB451bn, or 13.5% to reach RUB3.8 trln. The Bank retains quality of its loan portfolio at a good level: overdueloans stood at 2.5% as of August 1, 2014. Securities portfolio decreased by RUB76 bn, or -4.0% in July due to OFZbonds sales, decrease in market prices of securities and also REPOreflection peculiarities in accounting. Corporate funds decreased by RUB80 bn in July, driven by current accounts.Total corporate funds growth YTD came at RUB395 bn, or +12.7%, to reachRUB3.5 trln. Retail funds were up by RUB51 bn in July, primarily driven by FX depositsrevaluation. Total retail funds reduced by RUB29 bn, or -0.4% YTD, totaledRUB8.0 trln. Core Tier 1 and Tier 1 capital (equal since Sberbank does not haveinstruments of additional capital) reached RUB1,480 bn as of August 1, 2014under preliminary calculations. Total capital amounted to RUB2,207 bn onthe same date. Changes in total capital in July was driven by net profitcontribution (+RUB36 bn) and revaluation of investments in financialsubsidiaries (-RUB14 bn). As a result, total capital increased by RUB20 bnin July. Capital adequacy ratios under preliminary calculations as of August 1, 2014were: - N1.1 - 8.3% (minimum adequacy level, required by the Central Bank of Russia at 5.0%) - N1.2 - 8.3% (minimum adequacy level, required by the Central Bank of Russia at 5.5%) - N1.0 - 12.3% (minimum adequacy level, required by the Central Bank of Russia at 10.0%, considering Deposit Insurance Regulation). Sberbank 7M 2014 Financial Highlights (under RAS, unconsolidated) Contact: 07.08.2014 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: 2169Time of Receipt: Aug 07, 2014 08:12:45 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.