27 Nov 2013 06:32
Sberbank / Miscellaneous 27.11.2013 07:32 Dissemination of a UK Regulatory Announcement, transmitted byEquityStory.RS, LLC - a company of EQS Group AG.The issuer is solely responsible for the content of this announcement.--------------------------------------------------------------------------- Sberbank (hereafter 'the Group') has released its interim condensedconsolidated IFRS financial statements (hereafter 'the FinancialStatements') as at 30 September 2013 and for nine months ended 30 September2013, with an review report by Ernst & Young Vneshaudit. Income Statement highlights: - Net profit for nine months ended 30 September 2013 reached RUB 268.3 bn (or RUB 12.40 per ordinary share) compared to RUB 262.8 bn (or RUB 12.13 per ordinary share) for the the same period of 2012. - Net interest income increased by 23.7% for 9m 2013 to RUB 623.3 bn, compared to RUB 503.8 bn for 9m 2012. Excluding the effect of DenizBank acquisition in 3Q 2012, the Group's Net interest income increased for 9m 2013 by 15.6% year-on-year. - Net interest margin for 9m 2013 declined by 20 basis points as compared to 9m 2012 but remained strong at 5.8%. - Net fee and commission income increased by 28.2% for 9m 2013 to RUB 154.0 bn, compared to RUB 120.1 bn for 9m 2012. Excluding the effect of DenizBank acquisition in 3Q 2012, the Group's Net fee and commission income increased for 9m 2013 by 21.0% year-on-year. - The Group's operating income before provision for loan impairment increased by 22.5% to RUB 808.6 bn as compared to RUB 660.0 bn for 9m 2012 and was driven mainly by growth of net interest income, net fee and commission income and supported by DenizBank acquisition. Excluding the effect of DenizBank acquisition in 3Q 2012, the Group's operating income before provision for loan impairment increased for 9m 2013 by 13.5% year-on-year. - Operating expenses increased by 17.2% year-on-year, slower than operating income. As a result, Cost to Income ratio improved to 44.8% versus 46.8% for 9m 2012. Excluding the effect of DenizBank acquisition in 3Q 2012, the Group's operating expenses increased for 9m 2013 by 9.4% year-on-year and Cost to Income ratio would have been 45.0%. - Net provision charge for loan impairment amounted to RUB 106.8 bn and was translated to annualized Cost of risk of 120 basis points for 9m 2013. Statement of financial position highlights: - As of 30 September, 2013, the Group's total assets reached RUB 16,689.4 bn showing a 10.5% (14.0% annualized) growth compared to 2012 year end, the main driver for the growth being an increase in loans to customers. - For 9m 2013, loans and advances to customers increased by 12.0% (16.0% annualized) to RUB 11,760.6 bn compared to RUB 10 499.3 bn at 2012 year end. - In 9m 2013, the proportion of non-performing loans in Group's total gross loans remains stable and accounted to 3.3% as of 30 September 2013 (31 December 2012: 3.2%). - Customer deposits increased by 10.6% to RUB 11,258.4 bn compared to RUB 10,179.3 bn at 2012 year end. - The Group's Equity increased for 9m 2013 by 10.8% to RUB 1,799.5 bn, with net profit for the period being the major driver for increase which was partly offset by a dividend payout. - The total capital adequacy ratio remained unchanged as at 30 September 2013 compared to 2012 year end and accounted to 13.7%. The core capital adequacy ratio improved for 9m 2103 by 20 basis points up to 10.6%. Financial and Operating Review: Interest income for 9m 2013 increased by 32.0% year-on-year to RUB 1,077.7bn. The increase is attributable mostly to a significant expansion ofvolumes of both corporate and retail loans in 2012 and the expansion ofretail lending for 9m 2013, and, to a lesser degree, to higher yields onloans. Interest expenses for 9m 2013 increased by 45.2% year-on-year to RUB 454.4bn. The largest component of interest expenses was related to retaildeposits, which are the core source of funds for the Group. AlthoughSberbank started decreasing interest rates payable on retail time deposits,the cost of retail deposits increased for 9m 2013 and reached 5.6%, ascustomers were able to add funds to the earlier opened deposits with highinterest rates. Net interest income for 9m 2013 totaled RUB 623.3 bn, a 23.7% increaseyear-on-year. The increase is driven by growth of interest earning assetsin 2012 and 9m 2013, primarily loans, and DenizBank acquisition. Netinterest income remains the main component of the Group's operating incomeaccounting for 77.1% of total operating income before provision charges forloan impairment. The Group's net fee and commission income for 9m 2013 totaled RUB 154.0 bn,a 28.2% increase year-on-year. Income from operations with bankcards wasthe key driver of the growth, expanding by 55.2% year-on-year. Customercash and settlement transactions also remained core source of fee andcommission income, their share in fee and commission income being 44.9% for9m 2013. Other operating income, which includes amongst others net gains fromoperations with securities, foreign exchange, derivatives and preciousmetals and other items, equaled to 3.9% of Operating income beforeprovisions and decreased by 13.3% year-on-year. The main driver for thedecrease is a reduction of profit from non-financial business activities by86.2% year on year following the sale of significant non-financialoperations at the end of 2012 - beginning 2013. Total operating income before provision for loan impairment for 9m 2013reached RUB 808.6 bn compared to RUB 660.0 bn for 9m 2012, a 22.5% increaseyear-on-year. The growth was driven primarily by the expansion of theGroup's core banking business, as net interest income and net fee andcommission income together totalled to more than 96.1% of total operatingincome. The acquisition of DenizBank in 3Q 2012 brought a significantvolume of operating income to the Group. Net provision charge for loan impairment for 9m 2013 totaled RUB 106.8 bncompared to RUB 10.6 bn for 9m 2012 and was translated into a 120 basispoints of the annualized cost of risk. This result represents a gradualreturn to a more normalized level of the cost of risk by the end of therecovery cycle. The Group's operating expenses for 9m 2013 increased by 17.2% year-on-yearto RUB 362.1 bn. The main driver of this growth was the acquisition ofDenizBank which accounts for 47.5% of the increase. Since operating incomegrowth outpaced the growth of operating expenses, the Group's cost toincome ratio for 9m 2013 decreased to 44.8% versus 46.8% for 9m 2012. The Group's net profit for 9m 2013 reached RUB 268.3 bn versus RUB 262.8 bnfor 9m 2012, a 2.1% increase year-on-year. Slow growth of net profit for 9m2013 as compared to the same period a year ago is explained by an increasein provisioning for loan impairment. As of 30 September 2013, the Group's total assets reached RUB 16,689.4 bn,a 10.5% (14.0% annualized) increase since 31 December 2012. During 9m 2013, the Group's gross loan portfolio before provision for loanimpairment grew by 11.8% as a result of demand for loans primarily fromindividual clients in Russia, Turkey and CIS. Gross loans to corporateclients started to pick up only in the 2nd and 3rd quarters of 2013 andgrew by 8.7% to RUB 8,942.6 bn compared to 2012 year-end, and loans toindividuals increased by 21.0% to RUB 3,432.3bn for the same period. The portion of non-performing loans (NPL), defined as loans for whichpayment of principal and/or interest is overdue by more than 90 days, inthe total loan portfolio (the NPL ratio) remained stable in 2013 andaccounted to 3.3% as at 30 September 2013 compared to 3.2% at the beginningof 2013. The NPL coverage ratio (total provisions for loan impairment tonon-performing loans) decreased from 1.6 times at the beginning of 2013 to1.5 times at 30 September 2013. Provisions for loan impairment increasedfor 9m 2013 by 8.7% reaching RUB 614.3 bn. As of 30 September 2013, theproportion of provision for loan impairment to total gross loans was 5.0%compared with 5.1% at the beginning of the 2013. As at 30 September 2013, the Group's total liabilities amounted to RUB14,889.9 bn, a 10.5% (14% annuaized) increase since 31 December 2012.Retail deposits, totaling RUB 7,593.1 bn as at 30 September 2013, increasedby 8.7% since 31 December 2012 and remain the core source of the Group'sfunding, accounting for 51.0% of the Group's total liabilities. Corporatedeposits also increased during the discussed period and amounted to RUB3,665.3 bn as at 30 September 2013 showing a 14.7% growth, while theirshare in total liabilities amounted to 24.6%. Loan portfolio continuing pick up and some slow down of customer depositgrowth in 3Q 2013 resulted in a slight increase of the loan to depositratio to 101.5% at 30 September 2013 (31 December 2012: 100.9%). As at 30 September 2013, the Group's amounts due to banks totaled 1,348.4bn, a 7.2% decrease since the beginning of 2013. The Group's equity amounted to RUB 1,799.5 bn as at 30 September 2013, a10.8% increase for 9m 2013. As at 30 September 2013, the Group's totalcapital adequacy ratio (Tier 1 and Tier 2) as per Basel 1 was 13.7%, wellabove the 8% minimum requirement, and the Tier 1 ratio was 10.6%. Theincrease in Tier 1 ratio since the beginning of 2013 was primarily drivenby the growth of Tier 1 capital primarily due to faster increase inretained earnings than the growth of RWA. Sberbank Group's Financial Highlights for the nine months ended 30September 2013 27.11.2013 EquityStory.RS, LLC's 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, RU0009029557Listed: Frankfurt in Open Market (Entry Standard) ; MICEX, RTSCategory Code: MSCLSE Ticker: SBERSequence Number: 1784Time of Receipt: Nov 27, 2013 07:31:22 End of Announcement EquityStory.RS, LLC News-Service ---------------------------------------------------------------------------UK-Regulatory-announcement transmitted by DGAP - a company of EQS Group AG.The issuer is solely responsible for the content of this announcement.