SBER.L Regulatory News (SBER)

SberBank selected RAS highlights for 10M 2022

November 10, 2022

Clients activity metrics1

106.0 mn

+ 2.2 mn in 10M22

Active retail clients

5.1 mn

+ 0.8 mn in 10M22

SberPrime subscribers

3.0 mn

+ 0.1% mn in 10M22

Active corporate clients

The results in this press release are calculated in accordance with SberBank`s internal methodology.
 

• Number of retail clients reached 106 mn people, while the number of corporate clients exceeded       3 mn companies.
• Client activity and engagement in digital channels remains high: DAU/ MAU of SberBank Online is at 50%, even when the service became unavailable in certain application stores.
• The number of SberPrime subscribers increased by 0.8 mn in 10M22 to 5.1 mn. The SberPrime+ subscription was the main growth driver; the number of its subscribers increased more than threefold from the beginning of the year. The SberPrime+ subscription was recognized as the most valuable in Russia by services offered and client satisfaction.2
• The number of SberSpasibo loyalty program clients increased by 8.1 mn in 10M22 to 64.6 mn users.

• The retail loan portfolio reached RUB11.6 trn, up by 9% in 10M22, driven by strong dynamics within the mortgage portfolio (+14.9%, including the securitization portfolio) and credit cards (+23.5%). The mortgage approval rate returned to the pre-crisis level.
• Total mortgage production for 10M 2022 reached RUB1.9 trn. The mortgage demand remained stable on the back of declining loan rates on new originations, as well as thanks to different campaigns with developers and state subsidized programs.
• The positive dynamics in consumer lending became noticeable starting from the end of 2Q22 on the back of declining interest rates in the economy. Total consumer unsecured loan production in October was RUB238 bn.
• Total corporate loan portfolio added 11.9% 3 in 10M22 to RUB18.0 trn. Corporate loan production returned to the levels of 2H21.
• The loan portfolio asset quality remained stable. The share of overdue loans in total loan portfolio was 2.2%, which was lower than the level at the end of last year.
• Retail client funding reached RUB16.7 trn, up by 0.2% 3 in 10M22, to a large extent thanks to seasonal promos, including SberPrime Deposit at special rate, Best Interest, Favourable Timing. The share of foreign currency deposits for 10M22 was halved. The clients preferred to save in Roubles or foreign currencies of friendly jurisdictions.
• Corporate client funding increased by 3.4% 3 for 10M22 to RUB8.7 trn. There was a shift away from funding in US dollars and Euros. During 10M22 their share in total corporate funding was 16%, down from 36% in the beginning of the year.
• The share of assets in US dollars and Euros was reduced by almost half during 10M22. A higher share of Ruble assets reduces risks and is margin accretive.

Key Ratios for October 2022

3.9 %

Return
on Assets

0.7%

Cost of Risk4
(COR)

23.7%

Cost-to-Income
Ratio

• Net interest income increased by 9.8% y-o-y
• in October 2022 to RUB158.8 bn, or by 2.7% y-o-y for 10M22.
• Net interest margin in July-October 2022 was higher than the 2021 average due to more favorable cost of funding on the back of improving interest rate environment and higher share of Ruble assets.
• Net fee and commission income increased by 17.3% y-o-y in October 2022 to RUB56.8 bn, or by almost 4% y-o-y for 10M22 to RUB490 bn.
• The total volume of transfers, payments and acquiring increased by 21% y-o-y during 10M22.
• The Bank booked sizable provisions against the materialized risks in 1H22. Starting from 2H22 the provisioning level was comparable to the average pre-crisis levels.
• Operating expenses in October 2022 remained stable y-o-y at RUB64.4 bn. The expenses for 10M22 were lowered by 4.4% y-o-y on the back of implemented cost optimization program.
• The net profit in October 2022 reached RUB122.8 bn and exceeded RUB50 bn for 10M22.
• Such results were achieved without applying the Central Bank’s forbearance measures that were available to Russian financial institutions, including predetermined foreign exchange rate and revaluation price of securities, lower provisioning against certain companies and other.  
• Sberbank PJSC exceeds all the management buffers to capital adequacy ratios that were set by the Supervisory Board in December 2021.

1 management accounts

2 based on Frank RG research

3 excluding the effect of FX revaluation
4 Cost of Risk excludes the effect of FX revaluation

Disclaimer

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