5 Dec 2014 07:37
Sberbank / Miscellaneous 05.12.2014 08:37 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-November 2014 (underRAS; non-consolidated) Please note that the numbers are calculated in accordance with Sberbank'sinternal methodology. December 5, 2014 Income Statement Highlights for January-November 2014 (as compared toJanuary-November 2013): - Net interest income increased by 21.1% y-o-y - Net fee and commission income grew by 20.9% y-o-y - Noncredit commission income grew by 23.1% y-o-y - Operating income before total provisions increased by 28.8% y-o-y - Total provision charge was RUB377.9 bn vs. RUB113.5 bn charge in January-November 2013 - Operating expenses were up by 11.9% y-o-y - Net profit before income tax amounted to RUB381.4 bn, down by 11.5% vs. January-November 2013. Net profit totaled RUB295.0 bn, down by 15.8% vs. January-November 2013. Revaluation of investments in foreign subsidiaries excluded from Profit & Loss Statement in November (-RUB9.7 bn), reflection of deferred tax liabilities (-RUB12.1 bn) due to the new CBR regulation that came into force since May 2014 and significant provision charge for impairment were the main drivers of decrease in Net profit. Net interest income came at RUB790.1 bn, up by 21.1% compared toJanuary-November 2013: - Interest income increased by RUB278.6 bn driven by both corporate and retail loan portfolio growth; - Interest expenses grew by RUB140.8 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 RUB240.1 bn; up by 20.9% y-o-ycompared to January-November 2013. Noncredit commission income was up by23.1%, mostly driven by bank cards transactions and acquiring (+32.1%).Commission income from bank guaranties, trade finance deals and documentaryoperations, insurance, pension and investment products also demonstratedstrong growth. Net income from trading operations amounted to RUB67.4, down by RUB5.7 bnvs. January-October 2014, mostly driven by the following factors: 1) As per new CBR regulation №385-P the amount of revaluation of investments in foreign subsidiaries accumulated from the beginning of 2014 was partially (-RUB29.5 bn) excluded from Net income from trading operations in November. Also, in November some portion of negative revaluation, accumulated since the subsidiaries have been acquired before 2014 (+RUB19.9 bn), was recovered in other operating income (Income/expenses of previous years). An aggregated impact on the financial result came at -RUB9.7 bn. 2) In November, ruble devaluation relative to key foreign currencies required to form additional reserves for FX loans, even when the latter demonstrated no quality deterioration. In accordance with regulation for the open currency position, provisions related to revaluation of FX loans are reported as assets and liabilities for the open currency position management. Revaluation of this provisions as well as other FX assets and liabilities are reported as conversion income. As a result, the growth of income from trading operations was technically influenced by an increase in provision charges for FX loans (+RUB24 bn). Generally operating income before provisions increased by 28.8% to exceedRUB1.1 trln. Operating expenses increased by 11.9%. C/I ratio for January-November 2014decreased by 5.1 ppt to 33.8%. The general trend of C/I improvement y-o-yis achieved by the Bank's cost optimization program. The Bank managed tomaintain the trend when pre-provision operating income growth (28.8%)significantly outpaced operating expenses increase (11.9%). Total provision charges amounted to RUB377.9 bn vs. RUB113.5 bn charge ayear earlier. Almost 40% of total provision charges were made in October(please note Sberbank releases Financial Highlights for January-October2014 (under RAS; non-consolidated) and in November. In November provisioncharges came at RUB66.4 bn. This significant increase in provisions wasmostly driven by the sharp ruble devaluation relative to key foreigncurrencies (in November: +RUB5.9 per 1$ and +RUB6.8 per 1EUR) required toform additional reserves for FX loans (~RUB24 bn), with no deterioration ofcredit quality. In addition, worsening of the macroeconomic situation inthe Ukraine required to form additional reserves for some large Ukrainianborrowers. The Bank continues to practice a conservative approach in loan-lossprovisioning based on requirements of the Central Bank of Russia. Coverageratio remained strong: loan-loss provisions are 2.4 times the overdueloans. Profit before tax for January-November 2014 totaled RUB381.4 bn, down by11.5%. Net income came at RUB295.0 bn, down by 15.8%. In November assets increased by RUB1,153 bn, or up by 6.2%. A half of thisgrowth was influenced by positive revaluation of FX component on rubledevaluation. Assets growth for 11M 2014 reached RUB3.5 trln, or up by21.6%, mainly due to total loan portfolio growth. The Bank lent around RUB650 bn to corporate clients in November. Totalcorporate loan issues for 11M 2014 reached around RUB6.6 trln, or by 11%more than for the same period last year. Total corporate loan portfolioincreased by RUB640 bn in November driven by both new loan demand as wellas positive revaluation of previously issued FX loans. Total corporate loanportfolio for 11M 2014 increased by RUB2.2 trln, or 25.9%, to reach RUB10.8trln. The Bank lent around RUB135 bn to retail clients in November. Total retailloan issues for 11M 2014 reached RUB1.8 trln, which exceeded the amount ofissues for the same period last year (excluding the credit cards turnover)by 13%. Total retail loan portfolio increased by RUB39 bn in November andby RUB682 bn, or 20.5%, for 11M2014 to exceed RUB4.0 trln as of December 1,2014. Overdue loans came flat at 2.4% of total loans (as of December 1, 2014). Securities portfolio changed insignificantly by RUB6 bn, or 0.3%, inNovember. Corporate funding increased by RUB353 bn in November due to rubledenominated current accounts and revaluation of FX clients' funds.Corporate deposits and accounts portfolio increased by RUB983 bn, or 31.5%,for 11M 2014. Retail deposits and accounts increased by RUB140 bn in November, and up byRUB281 bn, or 3.5%, for 11M2014. The substantial growth in November wasinfluenced by FX revaluation. Core Tier 1 and Tier 1 capital (equal since Sberbank does not haveinstruments of additional capital) reached RUB1,613 bn as of December 1,2014 under preliminary calculations. Total capital amounted to RUB2,266 bnon the same date, up by RUB15 bn, due to retained earnings, revaluation ofthe subordinated debt and the transition in accounting for investments insubsidiaries with their historical prices (CBR's regulation №385-P). Capital adequacy ratios under preliminary calculations as of December 1,2014 were: - N1.1 - 8.1% (minimum adequacy level, required by the Central Bank of Russia at 5.0%) - N1.2 - 8.1% (minimum adequacy level, required by the Central Bank of Russia at 5.5%) - N1.0 - 11.4% (minimum adequacy level, required by the Central Bank of Russia at 10.0%, considering Deposit Insurance Regulation). Sberbank 11M 2014 Financial Highlights (under RAS, non-consolidated) Contact: 05.12.2014 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: 2435Time of Receipt: Dec 05, 2014 08:37:15 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.