15 Nov 2016 06:08
Sberbank / 3rd Quarter ResultsSberbank: Sberbank reports 3Q 2016 Net Profit of RUB137.0 bn, or RUB6.36 perordinary share, under International Financial Reporting Standards (IFRS) 15-Nov-2016 / 08:07 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 3Q 2016 Net Profit of RUB137.0 bn, or RUB6.36 per ordinaryshare, under International Financial Reporting Standards (IFRS)15 November 2016, Moscow Sberbank (hereafter 'the Group') has released its interim condensedconsolidated IFRS financial statements (hereafter 'the FinancialStatements') as at and for the 9 months ended 30 September 2016, withreview report by AO PricewaterhouseCoopers Audit.Alexander Morozov, Deputy Chairman of the Executive Board, CFO, commented:'Our results continued the positive trend set in the previous two quartersdriven by strong net interest income, stable asset quality and good costcontrol. Our improved performance for 9M 2016 establishes a strongfoundation for our team to continue delivering good results. ' The 3Q 2016 Financial Highlights: * The Group net profit reached RUB137.0 bn, or RUB6.36 per ordinary share,up by 110.4% compared to 3Q 2015. Normalized net profit in 3Q 2016excluding the one-off sales gain of the Sberbank Slovensko a.s. businesswould have been RUB134.0 bn, which compares to normalized 2Q 2016 netprofit of RUB133.2 bn excluding the one-off sales gain of NP JSC KrasnayaPolyana* The Group quarterly annualized return on equity (ROE) reached 20.5%, upfrom 11.8% in 3Q 2015* The quarterly Cost of Risk (CoR) came at 213 bp, compared to 279 bp for3Q 2015* The Group Cost-to-Income ratio improved to 37.3% from 39.5% in 3Q 2015* The level of non-performing loans (NPLs) of total loan portfolio cameflat at 4.9% from a quarter ago, while coverage level of NPLs improved to142% from 134% during the quarter* The Group capital position improved during the quarter, with core capitaladequacy ratio under Basel I up by 80 basis points to 11.2%, while totalcapital adequacy ratio reached 14.9%, up by 80 basis points during thequarter Selected Financial Results RUB bn, unless stated otherwise 3Q 2016 2Q 2016 3Q 2015 3Q16/2Q16, % change 3Q16/3Q15, % change 9M 2016 9M 2015 9M16/9M15,% changeNet interest income 342.8 339.3 263.4 1.0% 30.1% 1 007.6 690.8 45.9%Net fee and commission income 88.6 85.9 81.9 3.1% 8.2% 251.7 223.4 12.7%Other non-interest income / (expense) 3.6 17.6 22.2 (79.5%) (83.8%) (3.9)97.0 -Total revenues 435.0 442.8 367.5 (1.8%) 18.4% 1 255.4 1 011.2 24.1%Provision charge (101.7) (96.5) (130.1) 5.4% (21.8%) (282.1) (362.5)(22.2%)Operating expenses (163.0) (168.8) (145.4) (3.4%) (12.1%) (475.6) (431.7)10.2%Net profit 137.0 145.4 65.1 (5.8%) 110.4% 400.1 150.3 166.2%Earnings per ordinary share, RUB 6.36 6.62 3.04 (3.9%) 109.2% 18.46 6.96165.2%Total comprehensive income 130.6 149.3 80.0 (12.5%) 63.3% 404.4 232.174.2%Book value per share*, RUB 126.6 115.3 103.9 9.8% 21.8% Ratios Return on equity 20.5% 22.8% 11.8% 20.9% 9.4% Return on assets 2.1% 2.2% 1.1% 2.0% 0.8% Net interest margin 5.8% 5.6% 4.7% 5.6% 4.2% Cost of risk 2.1% 2.0% 2.8% 2.0% 2.6% Cost-to-income ratio 37.3% 38.5% 39.5% 37.5% 42.9% * Total equity / total numbers of shares outstanding (ordinary +preferred). UnauditedNet interest income reached RUB342.8 bn in 3Q 2016, up by 30.1% from theyear-ago period:* Interest income (up 2.9% to RUB591.1 bn compared to 3Q 2015) growth wasdriven by growth in interest received on the interbank markets as well asgrowth of the retail loan portfolio;* Interest expenses including deposit insurance expenses decreased by 20.1%from 3Q 2015 to RUB248.3 bn. The cost of liabilities decreased by 10 basispoints to 4.6% in 3Q 2016 relative to 2Q 2016, driven by corporate termdeposits, cost of which came down by 40 basis points to 3.9%.The Group's 3Q 2016 net fee and commission income came at RUB88.6 bn, up by8.2% from the year-ago period.* The fee and commission income grew by 13.1% to RUB112.2 bn from theyear-ago period. Income from the banking cards operations increased by10.2% in 3Q 2016 from 3Q 2015;* The fee and commission expense grew by 36.4% to RUB23.6 bn in part fromexpansion of banking cards business.Net provision charge for loan impairment for 3Q 2016 totaled RUB101.7 bncompared to RUB130.1 bn for 3Q 2015. This translated into the cost of riskof 213 basis points for the quarter versus 279 basis points a year ago.* The cost of risk for corporate loans amounted to 249 basis points in 3Q2016;* The cost of risk for retail loans amounted to 112 basis points in 3Q2016.The Group's operating expenses for 3Q 2016 increased to RUB 163.0 bn, up by12.1% from the same period a year ago. In 3Q 2016 Sberbank completed theexercise of indexation of salaries domestically. Selected Balance Sheet ResultsRUB bn, unless stated otherwise 30/09/16 30/06/16 31/12/15 9M16/6M16, % change 9M16/12M15, % changeTotal net loans 17 781.3 17 946.9 18 727.8 (0.9%) (5.1%)Total gross loans 19 096.6 19 220.5 19 924.3 (0.6%) (4.2%)Corporate loans 14 062.4 14 250.9 14 958.7 (1.3%) (6.0%)Retail loans 5 034.2 4 969.6 4 965.6 1.3% 1.4%Renegotiated loans 4 120.5 3 820.8 3 423.8 7.8% 20.3%Restructured loans 1 191.9 1 195.6 1 231.2 (0.3%) (3.2%)Securities portfolio 2 969.0 3 068.2 2 906.0 (3.2%) 2.2%Assets 25 531.6 25 794.0 27 334.7 (1.0%) (6.6%)Total customer deposits 18 609.9 18 787.3 19 798.3 (0.9%) (6.0%)Retail deposits 12 088.1 11 957.1 12 043.7 1.1% 0.4%Corporate deposits 6 521.8 6 830.2 7 754.6 (4.5%) (15.9%)Ratios Net loans-to-deposits ratio 92.7% 92.6% 91.9% NPL ratio 4.9% 4.9% 5.0% NPL coverage ratio 142% 134% 121% Renegotiated-to-gross loans 21.6% 19.9% 17.2% Restructured-to-gross loans 6.2% 6.2% 6.2% Total provision coverage of total NPLs + restructured non-NPLs 73% 69% 64% Total net loans decreased by 0.9% to RUB17.8 trn in 3Q 2016 as compared to2Q 2016. The decrease of the corporate loan portfolio was in partinfluenced by revaluation of foreign currency denominated loans. Thedynamics within the retail loan portfolio were influenced primarily by theincrease in mortgages (up 2.3% during the quarter); consumer unsecured loanportfolio also demonstrated quarterly growth for the first time during theyear. Client deposits demonstrated a decrease of 0.9% in 3Q 2016 as compared to2Q 2016 mainly driven by the outflow of corporate funds, down by 4.5%during the quarter, as a result of Ruble appreciation as well as the Bank'sstrong efforts to improve the cost of funding structure. The composition ofclient deposits remained merely unchanged during the quarter with the shareof current accounts in total deposits at 25.3%. Total NPL ratio remained unchanged at 4.9% in 3Q 2016 as compared to 2Q2016, while the coverage level of the NPL portfolio by provisions improvedto 142% in 3Q 2016 of total NPLs. The share of renegotiated loan portfolio amounted to 21.6% of total loanportfolio in 3Q 2016 reaching RUB4.1 trn, while the level of restructured loan portfolio (a new parameter introduced in 3Q 2016) was 6.2% of totalloan portfolio. The quarterly NPL ratio within the renegotiated loanportfolio decreased by 10 basis points to 8.2% from 8.3%, while the totalprovision coverage of total NPLs combined with restructured non-NPLsreached 73% in 3Q 2016, up from 69% in 2Q 2016. Selected Equity Position Results Under Basel IRUB bn, unless stated otherwise 30/09/16 30/06/16 31/12/15 9M16/6M16, % change 9M16/12M15, % changeTotal Tier 1 capital 2 585.0 2 448.3 2 226.7 5.6% 16.1%Total capital 3 444.4 3 315.6 3 151.2 3.9% 9.3%Risk-weighted assets 23 162.2 23 502.3 24 995.5 (1.4%) (7.3%)Equity 2 733.0 2 604.3 2 375.0 4.9% 15.1%Ratios Core capital adequacy ratio 11.2% 10.4% 8.9% Total capital adequacy ratio 14.9% 14.1% 12.6% The Group's total capital increased by 3.9% to RUB3.4 trn in 3Q 2016relative to 2Q 2016 primarily as a result of retained net profit. The Group's risk-weighted assets decreased by 1.4% in 3Q 2016 from 2Q 2016to RUB23.2 trn, driven by loan portfolio decrease and sale of assets. Thetotal capital adequacy ratio (Basel I) increased by 80 basis points to14.9% during 3Q 2016. The core capital adequacy ratio increased by 80 basispoints to 11.2% during 3Q 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, Moscow Category Code: QRT TIDM: SBER Sequence Number: 3598 Time of Receipt: 15-Nov-2016 / 08:07 CET/CEST End of Announcement EquityStory.RS, LLC News Service --------------------------------------------------------------------------- 520763 15-Nov-2016UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.