25 Nov 2015 07:57
Sberbank / MiscellaneousSberbank: Sberbank reports third-quarter 2015 IFRS results 25-Nov-2015 / 08:57 CET/CESTDissemination 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 reports third-quarter 2015 Net Profit of RUB65.1 bn, or RUB3.04per ordinary share, under International Financial Reporting Standards(IFRS) November 25, 2015 http://sberbank.com/common/img/uploaded/files/info/Word_Eng_9m2015tblfin.pdf Moscow, November 25, 2015 - Sberbank (hereafter 'the Group') has releasedits interim condensed consolidated IFRS financial statements (hereafter'the Financial Statements') as at and for the 9 months ended 30 September2015, with review report by Ernst & Young Vneshaudit. 'Continued recovery in the net interest income, higher mortgageoriginations and strong focus on operating efficiency contributed to ourstrongest quarterly earnings this year,' said Alexander Morozov, DeputyChairman of the Executive Board and Chief Financial Officer. The Q3 2015 Business Highlights: * Sberbank's net profit reached RUB65.1 bn, or RUB3.04 per ordinary share,for the quarter * Mortgages portfolio continued to grow to RUB2.5 trn, up by 4.4% in Q32015 compared to Q2 2015. Sberbank's domestic market share reached 55.1% * Client deposits growth up 15.4% to RUB18.3 trn in Q3 2015 compared to Q22015 * Net loan-to-deposit ratio came at 95.3% on the back of the improvingfunding base * The quarterly net fee and commission income came at RUB81.9 bn, a strong28.0% growth from the year-ago period * Cost-to-income ratio down to 39.6%, supported by disciplined cost controland improving revenue growth Net interest income was RUB263.4 bn in Q3 2015, up by 3.2% from theyear-ago period: * Interest income (up 25.0% to RUB574.2 bn compared to Q3 2014) was drivenby a moderate pick up in corporate lending and mortgages. Yield on totalloans increased by 40 basis points to 11.4% in Q3 2015. * Interest expenses including deposit insurance expenses increased by 52.2%from Q3 2014 to RUB310.8 bn. It was driven by the both higher volumes andcosts of client deposits. However, the cost of client deposits decreased by10 basis points to 5.4% in Q3 2015 relative to Q2 2015. The amount of fundsborrowed from the Central Bank of Russia was reduced by 51.0% in Q3 2015 toRUB1.0 trn. Improved access to liquidity allows Sberbank to be moreflexible in managing its cost of funding. The Group's Q3 2015 net fee and commission income came at RUB81.9 bn. Theincome from cash and settlement transactions business (RUB76.9 bn)accounted for a strong 77.5% share in total fees and commissions income inthe third quarter. Sberbank continued to strengthen its domestic marketshares in acquiring at 53% and credit cards at 36.5%. Income from thebanking cards operations increased by 21.8% in Q3 2015 from the same perioda year ago. Net provision charge for loan impairment for Q3 2015 totaled RUB128.4 bncompared to RUB102.7 bn for Q3 2014. This translated into the cost of riskof 279 basis points for the quarter versus 268 basis points a year ago. * Increase in the cost of risk was driven primarily by the need to createadditional provisions for the revaluation of foreign currency denominatedloans as Ruble devaluated during the quarter (Ruble devaluated 19.3%relative to USD) and for the Ukrainian assets due to high level of economicinstability. * Consequently, the cost of risk for corporate loans increased by 54 basispoints to 302 basis points in Q3 2015 relative to the previous quarter of2015. * The cost of risk for retail loans dropped by 86 basis points to 211 basispoints in Q3 2015 relative to the previous quarter of 2015 on improvingretail portfolio mix. The Group's operating expenses for Q3 2015 increased to RUB145.4 bn, up by9.1% from the same period a year ago. Sberbank standalone operatingexpenses increased by 9.8% from the same period a year ago to RUB112.5 bnunder internal calculations, which was significantly slower than thedomestic inflation of 15.7% for the same period. Total loans, net, increased by 7.1% to RUB17,948.7 bn in Q3 2015 ascompared to Q2 2015. The growth of the corporate loan portfolio was drivenby the Ruble denominated lending. The increase of retail loans was drivenby a healthy demand for mortgages. Client deposits demonstrated strong growth, which was achieved in bothretail and corporate segments, up by 9.1% and 26.0% respectively in Q3 2015as compared to the previous quarter of 2015. Current accounts increased by16.4% in the same period. Total NPL ratio increased to 5.4% in Q3 2015 from 4.9% in the previousquarter of 2015 mainly driven by the corporate segment. Coverage level ofthe NPL portfolio by provisions decreased to 1.1X in Q3 2015 from 1.2X inthe previous quarter as new non-performing loans were well covered bycollateral. Renegotiated loan portfolio increased by RUB573.4 bn, or up by 21.1% in Q32015 relative to the previous quarter of 2015 to RUB3.3 trn primarilydriven by Ruble devaluation and the increase in the corporate specializedloans segment (up by RUB420.2 bn in Q3 2015 relative to the previousquarter of 2015 to RUB1.9 trn). The increase in the latter is explained bythe extension of several project finance loans. The specific coverage ofnon-performing loans in the renegotiated loan portfolio remained high at78.6%, slightly up by 20 basis points relative to the coverage level in Q22015 of 78.4%. The Group's total capital increased by 4.3% to RUB3.0 trn in Q3 2015relative to Q2 2015 primarily as a result of retained net profit for thequarter. Revaluation of the subordinated debt and foreign currencytranslation reserve affected by Ruble devaluation were also supportive. The Group's risk-weighted assets increased by 8.3% in Q3 2015 from Q2 2015to RUB23.6 trn. The total capital adequacy ratio (Basel I) declined by 50basis points in Q3 2015 from Q2 2015 to 12.9%. The core capital adequacyratio decreased by 50 basis points in Q3 2015 from Q2 2015 to 9.1%. --------------------------------------------------------------------- 25-Nov-2015 The EquityStory.RS, LLC Distribution Services includeRegulatory Announcements, Financial/Corporate News and Press Releases.Media 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: MSC TIDM: SBER Sequence Number: 2925 Time of Receipt: 25-Nov-2015 / 08:26 CET/CEST End of Announcement EquityStory.RS, LLC News Service --------------------------------------------------------------------- 416059 25-Nov-2015UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.