SBER.L Regulatory News (SBER)

SberBank selected RAS highlights for 12M 2022
The results in this press release are calculated in accordance with SberBank`s internal methodology.

The 2022 results do not include subsequent events post the results date. For comparison purposes, results for 2021 also exclude subsequent events.
 

January 17, Moscow

Herman Gref, Chairman of the Executive Board, CEO, stated:

“The 2022 year tested our endurance and strength to withstand external shocks, ability to quickly reshape our business and adapt technologies. The maturity of our platform and professionalism of our team ensured stability of the business and decent financial results. Our priority to provide excellent service to our clients, - the number of which increased by nearly 3 mn, - remained intact. We issued over RUB15 trn corporate and RUB4.8 trn retail loans, and improved our loan portfolio quality. Starting from the second half of the year we were able to return to the positive trajectory in earnings, increased our capital and capital adequacy, and delivered over RUB300 bn 1 net profit.”

Client activity metrics2

Number of retail clients reached 106.7 mn people, while the number of corporate clients exceeded 3 mn companies.

Client activity and engagement in digital channels remained high: DAU/MAU of SberBank Online was over 50%.

Number of SberPrime subscribers increased by 0.3 mn in December and by 1.5 mn in 2022 to exceed 5.7 mn.

Number of SberSpasibo loyalty program clients increased by 0.8 mn in December, or by 9.7 mn in 12M2022 to 66.2 mn users.

Retail loan portfolio rose by 1.7% in December, or 12.9% in 12M2022, to RUB12.0 trn. In December the Bank reported record retail loan origination volume of RUB625 bn.

• The main driver of growth were mortgages, the originations of which accelerated on the back of anticipated change in the terms of the state subsidy program. The origination volume in December was a historic high at RUB382 bn. Mortgage portfolio reached RUB7.7 trn5 at the end of 2022, up by more than 20%5 for the year.
• The Bank also reported a record volume of consumer unsecured loan originations for the year of RUB243 bn. Seasonal promos remained popular among clients, such as a consumer unsecured loan at an annual rate of 4.5% in the first month of a loan, or a loan for SberPrime+ subscribers with a 1.5% cashback of the loan rate in SberSpasibo loyalty program bonuses.

Total corporate loan portfolio increased by 0.5%3 in December, and by 12.4%3 in 12M2022 to RUB18.8 trn.

• Share of foreign currency denominated loans in the structure of the corporate loan portfolio came down by 10pp during 2022.

Loan portfolio asset quality remained stable. The share of overdue loans in total loan portfolio in December came down to 2.2%, which was lower than the level of the end of 2021.

Retail client funding exceeded RUB18.3 trn, up by 8.2%3 both in December and for 12M2022, to a large extent thanks to interesting seasonal promos for SberPrime+ suscribers and payroll clients.

• Share of foreign currency denominated deposits was almost halved during 2022.

Corporate client funding increased by 0.8%3 in December to RUB8.7 trn (-0.7%3 for 12M2022).

• Share of foreign currency denominated deposits in the corporate deposits structure was down by 18pp during 2022.

Key efficiency results for 2022 (excluding subsequent events)

Net interest income growth accelerated to 19.5% y-o-y in December 2022 to RUB176.5 bn, or by 5.2% y-o-y for 12M2022 on the back of working assets increase and normalization in funding rates.

Net fee and commission income increased by 16.7% y-o-y in December 2022 to RUB67.5 bn, or by 6.2% y-o-y for 12M2022 to RUB614.8 bn.

Cost of Risk in December came at 0.2%4, to a large extent thanks to a positive effect from bad loan recoveries. In the first half of the year, the Bank booked sizable provisions against the materialized risks. In the second half of the year the provisioning levels normalized. Overall, Cost of Risk for the year was 3.7%4.

Operating expenses in December 2022 declined by 12% y-o-y to RUB80.6 bn. The cost optimization program lowered expenses by 5% y-o-y for the year. The Bank expects immaterial impact from subsequent events on the overall operating expenses results.

In December the Bank earned RUB125.5 bn (+40.1% y-o-y) net profit, while the result for the year exceeded RUB300 bn.

Sberbank PJSC exceeds all management buffers to capital adequacy ratios that were set by the Supervisory Board in December 2021.

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.

1 excluding subsequent events post the results date

2 management accounts

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

5 including the securitization portfolio

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