7 Oct 2014 08:44
Sberbank / Miscellaneous 07.10.2014 08:44 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. October 7, 2014 Income Statement Highlights for January-September 2014 (as compared toJanuary-September 2013): - Net interest income increased by 22.3% y-o-y - Net fee and commission income grew by 23.5% y-o-y - Noncredit commission income grew by 25.0% y-o-y - Operating income before total provisions increased by 24.8% y-o-y - Total provision charge was RUB217.9 bn vs. RUB83.5 bn charge in January-September 2013 - Operating expenses were up by 11.8% y-o-y - Net profit before income tax amounted to RUB359.8 bn, up by 2.7% vs. January-September 2013. Net profit totaled RUB286.7 bn, or up by 0.2% vs. January-September 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 RUB295.7 bn, up by 3.3% vs. January-September 2013. Net interest income came at RUB633.7 bn, up by 22.3% compared toJanuary-September 2013: - Interest income increased by RUB219.2 bn driven by both corporate and retail loan portfolio growth; - Interest expenses grew by RUB103.9 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 RUB195.9 bn; up by 23.5% y-o-ycompared to January-August 2013. Noncredit commission income growth remainsstrong, up by 25.0%, 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 RUB32.6 bn vs. RUB17.6 bnfor January-September 2013. Revenues on conversion operations increasedsignificantly (RUB44.8 bn vs. RUB10.2 bn). There were also gains arisingfrom revaluation of foreign investments while income dynamics on thesecurities market remained negative, due to the market situation. Operating income before provisions increased by 24.8% to reach RUB884.5 bn. Operating expenses increased by 11.8%. C/I ratio for January-September 2014decreased by 4 ppt to 34.7%. The Bank managed to maintain the trend whenpre-provision operating income growth (24.8%) significantly outpacedoperating expenses increase (11.8%). Total provision charges amounted to RUB217.9 bn vs. RUB83.5 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 are 2.2 times theoverdue loans. Profit before tax for January-September 2014 totaled RUB359.8 bn. As ofthis year deferred tax liability was reflected in the Balance Sheet (pleasenote Sberbank releases Financial Highlights for January-May 2014 (underRAS; non-consolidated). Consequently, net profit for January-September 2014amounted to RUB286.7 bn. Excluding the effect of adjustments that reflectnew regulation, net profit for January-September 2014 would have increasedby 3.3% vs. corresponded period a year earlier, totaled RUB295.7 bn. In September assets increased by 3.5%, or RUB618 bn. The growth of theBalance Sheet was further influenced by positive revaluation of FXcomponent on ruble devaluation compared to key foreign currencies. Exchangerate of USD to RUB increased by 6.6% to RUB39.4, of EUR - by 2.7% toRUB50.0. Assets growth for 9M 2014 reached RUB1.85 trln, or up by 11.3%,mainly due to total loan portfolio growth. The Bank lent over RUB660 bn to corporate clients in September. Totalcorporate loan issues for 9M 2014 reached RUB5.3 trln, or by 17% more thanfor the same period last year. Total corporate loan portfolio increased byRUB218 bn in September driven by both new loan demand as well as positiverevaluation of previously issued FX loans. Total corporate loan portfoliofor 9M 2014 increased by RUB1.24 trln, or 14.5%, to exceed RUB9.8 trln. The Bank lent over RUB150 bn to retail clients in September. Total retailloan issues for 9M 2014 reached over RUB1.5 trln, which exceeded the amountof issues for the same period last year (excluding the credit cardsturnover) by 22%. Total retail loan portfolio increased by RUB56 bn inSeptember to exceed RUB3.9 trln, over half of which are mortgages. Theincrease of the retail loan portfolio for 9M 2014 amounted to RUB586 bn, orup 17.6%. The Bank keeps the quality of its loan portfolio at a good level: overdueloans came at 2.3% of total loans (as of October 1, 2014). Securities portfolio increased by RUB15.0 bn, or 0.8% in September due topurchases of OFZ bonds. Corporate funding increased by RUB167.8 bn in September due to both currentaccounts and term deposits. Corporate deposits and accounts portfolioincreased by RUB452 bn, or 14.5%, for 9M 2014. Retail deposits and accounts decreased by RUB33.9 bn in September. Retaildeposits and accounts portfolio reached about RUB8.1 trln, up 0.2% for9M2014. Core Tier 1 and Tier 1 capital (equal since Sberbank does not haveinstruments of additional capital) reached RUB1,623 bn as of October 1,2014 under preliminary calculations. Total capital amounted to RUB2,259 bnon the same date, increased by RUB31 bn in September. Capital adequacy ratios under preliminary calculations as of October 1,2014 were: - N1.1 - 8.9% (minimum adequacy level, required by the Central Bank of Russia at 5.0%) - N1.2 - 8.9% (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 9M 2014 Financial Highlights (under RAS, non-consolidated) Contact: 07.10.2014 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: 2310Time of Receipt: Oct 07, 2014 08:44:09 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.