7 Sep 2016 08:11
Sberbank / Miscellaneous - Medium PrioritySberbank: Sberbank releases Financial Highlights for 8M 2016 (under RAS;non-consolidated) 07-Sep-2016 / 09:10 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 releases Financial Highlights for 8M 2016 (under RAS;non-consolidated)Please note that the numbers are calculated in accordance with Sberbank'sinternal methodology.September 7, 2016Key highlights for August, 2016:* The Bank earned net profit of RUB47.8 bn in August* Retail loan portfolio increased by RUB150 bn in August - highest monthlyvolume since January 2015* Retail deposits excluding FX revaluation effect continued to showpositive dynamics increasing by 0.4%Deputy Chairman of Sberbank Alexander Morozov stated: 'Sound financial results and audit of the 2Q2016 net profit contributed tothe increase of Core Tier 1 and Tier 1 capital adequacy ratios to a newlevel of 8.7%. Another highlight of August was a record monthly volume ofnew issues of retail loans since the beginning of 2015.'Comments for 8M 2016:Net interest income came at RUB734.9 bn, up by 51.6% compared to 8M 2015:Interest income increased by 6.3%, mostly driven by the increase in volumesof working assets; Interest expenses came down by 21.3% due to thesubstitution of state funding with clients' funds and the decrease inmarket rates compared to last year.Fee and commission income was up by 22.8% to RUB198.4 bn, driven bytransactional business with bank cards, acquiring and bank insurance.Operating expenses increased by 11.2%, which was significantly slower thanpre-provision operating income growth (34.5%). The increase in operatingexpenses was driven by continuing indexation of wages. Cost-to-Income ratiodecreased from 39.5% for 8M 2015 to 32.6% for 8M 2016.Total provision charges decreased by RUB64.1 bn compared to 8M 2015 andamounted to RUB213.7 bn. The Bank continues to form loan-loss provisionsin-line with the requirements of the Central Bank of Russia. Loan-lossprovisions remained 2 times the overdue loans.Net profit before income tax came at RUB415.4 bn vs. RUB142.7 bn for 8M2015. Net profit totaled RUB322.8 bn, which was 3 times higher than theresult for 8M 2015.Total comprehensive income which includes the income from revaluation offinancial assets available-for-sale and held-to-maturity, amounted toRUB388.2 bn.Assets in August decreased by 1.1% to RUB21.9 trln mainly due torevaluation of the foreign currency denominated assets on the back of rubleappreciation.The Bank lent over RUB620 bn to corporate clients in August. Corporateloan issues from the beginning of the year were about RUB5.4 trln, whichwas 1.5X more than for 8M 2015. The loan portfolio ending balance decreasedby RUB284 bn, or by 2.4% to RUB11.7 trln as of September 1, 2016. Thedecrease was influenced by large volumes of redemptions as well as byrevaluation of earlier issued foreign currency denominated loans.The Bank lent RUB150 bn to retail clients in August. Retail loan issuesfrom the beginning of the year were RUB980 bn, which was by a third greaterthan for 8M 2015. Total retail loan portfolio increased by RUB37 bn inAugust to reach RUB4.26 trln as of September 1, 2016. The share ofmortgages in retail portfolio was 56%.Retail overdue loans of total loans remained at 4.2%. Corporate overdueloans of total loans were 3.2%. Overall the share of overdue loans of totalclients loans was 3.5%, which is substantially lower than the bankingsector's average (7.0% as of August 1, 2016).Securities portfolio was down by RUB73 bn in August due to redemptions ofOFZ bonds, sale of Eurobonds of the Russian Federation, as well revaluationof FX denominated part of the portfolio. The portfolio ending balance wasRUB2.38 trln as of September 1, 2016.Retail deposits and accounts in August decreased by RUB25 bn in nominalterms, whereas in real terms demonstrated an inflow of funds both in rublesand in foreign currencies. Corporate deposits and accounts were down byRUB180 bn due to both FX current accounts as well as FX revaluation. Totaldeposits and accounts decreased by RUB206 bn, or by 1.2%, to RUB16.9 trlnas of September 1, 2016.The share of funds borrowed from the Central Bank (excluding thesubordinated loan) in total liabilities remained immaterial at 0.4%.Core Tier 1 and Tier 1 capital (equal since Sberbank does not haveinstruments of additional capital) reached RUB2,045 bn as of September 1,2016 under preliminary calculations. The increase in Core Tier 1 and Tier 1capital was due to audited 2Q2016 net profit.Total capital amounted to RUB2,884 bn as of September 1, 2016, up by RUB70bn due to monthly net profit and revaluation of securities portfolio.Risk-weighted assets decreased by RUB344 bn in August mainly due to thedecrease of corporate loan portfolio.Capital adequacy ratios as of September 1, 2016 under preliminarycalculations were:* N1.1 - 8.7% (minimum adequacy level, required by the Central Bank ofRussia at 4.5%)* N1.2 - 8.7% (minimum adequacy level, required by the Central Bank ofRussia at 6.0%)* N1.0 - 12.2% (minimum adequacy level, required by the Central Bank ofRussia at 8.0%). Sberbank 8M 2016 Financial Highlights (under RAS, non-consolidated) --------------------------------------------------------------------------- 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, Moscow Category Code: MSCM TIDM: SBER Sequence Number: 3385 Time of Receipt: 07-Sep-2016 / 09:10 CET/CEST End of Announcement EquityStory.RS, LLC News Service --------------------------------------------------------------------------- 499589 07-Sep-2016UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.