25 May 2016 08:47
Sberbank / Miscellaneous - Medium PrioritySberbank: Sberbank reports 1Q 2016 Net Profit of RUB117.7 bn, or RUB5.49 perordinary share, under International Financial Reporting Standards (IFRS) 25-May-2016 / 09:47 CET/CESTDissemination of a Regulatory Announcement, transmitted by EquityStory.RS,LLC - a company of EQS Group AG.The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Sberbank reports 1Q 2016 Net Profit of RUB117.7 bn, or RUB5.49 per ordinaryshare, under International Financial Reporting Standards (IFRS)25 May 2016 Moscow, 25 May 2016 - Sberbank (hereafter 'the Group') has released itsinterim condensed consolidated IFRS financial statements (hereafter 'theFinancial Statements') as at and for the 3 months ended 31 March 2016, withreview report by Ernst & Young.'Improvement in our return on equity in the first quarter of this year wasattributable to continued recovery of net interest income, reduction in thecost of risk and tight control over operating expenses on the back ofmoderate stabilization of macroeconomic environment,' said AlexanderMorozov, Deputy Chairman of the Executive Board, CFO. The 1Q 2016 Financial Highlights: * The Group net profit reached RUB117.7 bn, or RUB5.49 per ordinary share,up by 284.6% compared to 1Q 2015* The Group quarterly annualized return on equity (ROE) reached 19.3%, upfrom 5.9% in 1Q 2015* The quarterly Cost of Risk (CoR) came at 170 bp, down by 60 basis pointscompared to 4Q 2015* The Group Cost to Income ratio resulted at 36.7%, compared to 46.2% for1Q 2015* The Group capital position improved during the quarter, with core capitaladequacy ratio up by 80 basis points to 9.7%, while total capital adequacyratio reached 13.4%, up by 80 basis points during the quarter* Net Loan to Deposit ratio improved by 110 basis points to 93.0% comparedto 4Q 2015 Selected Financial Results RUB bn, unless stated otherwise 1Q 2016 4Q 2015 1Q 2015 1Q16/4Q15 1Q16/1Q15Net interest income 325.5 297.2 200.3 9.5% 62.5%Net fee and commission income 77.2 95.6 69.0 (19.2%) 11.9%Other non-interest income / (expense) (25.1) 25.8 35.6 Total revenues 377.6 418.6 304.9 (9.8%) 23.8%Net provision charge for impairment of debt financial assets (83.9) (112.7)(115.3) (25.6%) (27.2%)Operating expenses (143.8) (191.7) (139.7) (25.0%) 2.9%Net profit 117.7 72.6 30.6 62.1% 284.6%Earnings per ordinary share, RUB 5.49 3.40 1.42 61.5% 286.6%Total comprehensive income 124.5 133.7 75.2 (6.9%) 65.6%Book value per ordinary share, RUB 115.8 110.0 97.1 5.3% 19.3%Ratios Return on equity 19.3% 12.6% 5.9% 6.7 pp 13.4 ppReturn on assets 1.7% 1.1% 0.5% 0.6 pp 1.2 ppNet interest margin 5.3% 4.9% 3.7% 0.4 pp 1.6 ppCost of risk 1.7% 2.3% 2.5% (0.6 pp) (0.8 pp)Cost-to-income ratio 36.7% 45.8% 46.2% (9.1 pp) (9.5 pp) Net interest income was RUB325.5 bn in 1Q 2016, up by 62.5% from theyear-ago period:* Interest income (up 9.1% to RUB613.0 bn compared to 1Q 2015) was drivenby corporate lending, mortgages and securities portfolio;* Interest expenses including deposit insurance expenses decreased by 20.5%from 1Q 2015 to RUB287.5 bn. The cost of liabilities decreased by 30 basispoints to 5.0% in 1Q 2016 relative to 4Q 2015, driven by both corporate andretail term deposits, cost of which came down by 50 basis points to 4.5%and by 20 basis points to 6.5% respectively.The Group's 1Q 2016 net fee and commission income came at RUB77.2 bn, up by11.9% from the year-ago period.* The fee and commission income grew by 13.4% to RUB94.6 bn from theyear-ago period. Income from the banking cards operations increased by15.9% in 1Q 2016 from 1Q 2015;* The fee and commission expense grew by 20.8% to RUB17.4 bn in part byexpansion of banking cards business.Net provision charge for loan impairment for 1Q 2016 totaled RUB84.3 bncompared to RUB114.9 bn for 1Q 2015. This translated into the cost of riskof 170 basis points for the quarter versus 250 basis points a year ago.* The cost of risk for corporate loans halved to 146 basis points in 1Q2016 relative to 4Q 2015, in part attributed to recovery progress onproblem loans, refining provisioning methodology as well as rubleappreciation during the quarter;* The cost of risk for retail loans increased by 194 basis points to 243basis points in 1Q 2016 relative to 4Q 2015, mostly affected by theadjustment in provisions related to methodology changes and seasonality.Other non-interest expense came in at RUB25.1 bn mostly affected by netcharge for other provisions of RUB15.8 bn for 1Q 2016 relating to change inestimation methodology for credit related and other commitments as well asnet losses arising from trading operations and foreign currency translationprimarily on treasury operations.The Group's operating expenses for 1Q 2016 increased to RUB 143.8 bn, up by2.9% from the same period a year ago; headcount decreased by 0.9% duringthe quarter.Effective tax rate in 1Q 2016 reached 21.5%, down from 36.4% in 4Q 2015. Selected Balance Sheet ResultsRUB bn 31/03/16 31/12/15 3M16-12M15Total net loans 18 501.9 18 727.8 (1.2%)Total gross loans 19 740.2 19 924.3 (0.9%)Corporate loans 14 785.6 14 958.7 (1.2%)Retail loans 4 954.6 4 965.6 (0.2%)Renegotiated loans 3 521.3 3 423.8 2.8%Securities portfolio 2 957.7 2 906.0 1.8%Assets 26 571.7 27 334.7 (2.8%)Total deposits 19 285.2 19 798.3 (2.6%)Retail deposits 11 660.1 12 043.7 (3.2%)Corporate deposits 7 625.1 7 754.6 (1.7%)Ratios Net loans-to-deposits ratio 93.0% 91.9% (1.1 pp)NPL ratio 5.2% 5.0% 0.2 ppNPL coverage ratio 1.2X 1.2X unchRenegotiated-to-gross loans 17.8% 17.2% 0.6 pp Total loans, net, decreased by 1.2% to RUB18.5 trn in 1Q 2016 as comparedto 4Q 2015. The decrease of the corporate loan portfolio was influenced byrevaluation of foreign currency denominated loans. Excluding the effectfrom the revaluation, the real loan portfolio demonstrated slightlypositive growth. The dynamics within retail loan portfolio were influencedprimarily by an increase in mortgages (up 1.8% during the quarter) andcontraction in volume of consumer unsecured loans (portfolio down by 3.9%during the quarter). Client deposits demonstrated a drop during the quarter in both retail andcorporate segments, down by 3.2% and 1.7% respectively in 1Q 2016 ascompared to 4Q 2015, in large as a result of ruble appreciation as well asseasonality. The structure of client deposits improved during the quarteras the share of current accounts in total deposits increased by 90 basispoints to 25.0%. Total NPL ratio increased to 5.2% in 1Q 2016 from 5.0% in 4Q 2015 mainly asa result of total loan portfolio contraction. Coverage level of the NPLportfolio by provisions remained unchanged at 1.2X in 1Q 2016 from 4Q 2015. The share of renegotiated loan portfolio increased to 17.8% of total loanportfolio in 1Q 2016 relative to 4Q 2015, reaching RUB3.5 trn. The mainsector affecting the increase was metals and mining. The quarterly NPLratio within the renegotiated loan portfolio increased slightly by 30 basispoints to 11.3% from 11.0%. Selected Equity Position Results Under Basel IRUB bn 31/03/16 31/12/15 3M16-12M15Total Tier 1 capital 2 345.8 2 226.7 5.3%Total capital 3 233.5 3 151.2 2.6%Risk-weighted assets 24 118.1 24 995.5 (3.5%)Equity 2 499.7 2 375.0 5.3%Ratios Core capital adequacy ratio 9.7% 8.9% 0.8 ppTotal capital adequacy ratio 13.4% 12.6% 0.8 pp The Group's total capital increased by 2.6% to RUB3.2 trn in 1Q 2016relative to 4Q 2015 primarily as a result of retained net profit. The Group's risk-weighted assets decreased by 3.5% in 1Q 2016 from 4Q 2015to RUB24.1 trn, driven mainly by currency fluctuations. The total capitaladequacy ratio (Basel I) increased by 80 basis points to 13.4% during 1Q2016. The core capital adequacy ratio increased by 80 basis points to 9.7%during 1Q 2016. --------------------------------------------------------------------------- 25-May-2016 The EquityStory.RS, LLC Distribution Services include RegulatoryAnnouncements, Financial/Corporate News and Press Releases.Archive at www.dgap.de/ukreg --------------------------------------------------------------------------- Language: English Company: Sberbank 19 Vavilova St. 117997 Moscow Russia Phone: +7-495-957-57-21 E-mail: media@sberbank.ru Internet: www.sberbank.ru ISIN: US80585Y3080, RU0009029540, RU0009029557, US80585Y4070 Listed: Open Market (Entry Standard) in Frankfurt ; London, MICEX, RTS Category Code: MSCM TIDM: SBER Sequence Number: 3176 Time of Receipt: 25-May-2016 / 09:16 CET/CEST End of Announcement EquityStory.RS, LLC News Service --------------------------------------------------------------------------- 466451 25-May-2016UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.