DGAP-Regulatory: Sberbank: Sberbank releases Financial Highlights for 4M 2016 (under RAS; non-consolidated)

11 May 2016 09:42

Sberbank / Miscellaneous - Medium PrioritySberbank: Sberbank releases Financial Highlights for 4M 2016 (under RAS;non-consolidated) 11-May-2016 / 09:42 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 4M 2016 (under RAS;non-consolidated)Please note that the numbers are calculated in accordance with Sberbank'sinternal methodology.May 11, 2016Key highlights for April, 2016:* The Bank earned a net profit of RUB41.9 bn in April* Client deposits inflow came at RUB242 bn, or +2.3%, excluding the FXrevaluation effect* Corporate overdue loans decreased by RUB23 bn in April due to plannedactions in resolving problem debts, which also had a positive impact onprovision chargesDeputy Chairman of Sberbank Alexander Morozov stated: Net profit for 4M 2016 reached RUB142.3 bn. Current trends in net interestincome and fee and commission income growth support the continued recoveryof the Bank's profitability. Furthermore, we are satisfied with theprogress achieved in working out problematic assets in April.Comments for 4M 2016:Net interest income came at RUB358.2 bn, by 69.4% compared to 4M 2015:Interest income increased by 8.1%, mostly driven by the increase in volumesof working assets; Interest expenses decreased by 22.6% due to the decreasein market rates and the substitution of state funding with clients' funds.Fee and commission income was up by 31.5% to RUB95.5 bn, driven bytransactional business with bank cards and acquiring, cash settlements aswell as bank insurance (commissions from which were weak a year ago, giventhe reduced demand for lending).Net income from FX revaluation and trading operations on capital marketsamounted to -RUB30.0 bn compared to RUB4.1 bn for 4M 2015 mostly due to thefx revaluation of the Balance sheet items as a result of rubleappreciation, as well as SWAP transactions for efficient liquiditymanagement.Operating expenses growth came at 7.9%, that was significantly slower thanpre-provision operating income growth (+50.0%).Total provision charges amounted to RUB113.1 bn vs. RUB104.0 bn a year ago.The Bank continues to form loan-loss provisions in-line with therequirements of the Central Bank of Russia. Loan-loss provisions are 2.1times the overdue loans.Net profit before income tax came at RUB179.9 bn vs. RUB55.7 bn for 4M2015. Net profit totaled RUB142.3 bn, that is almost 3 times higher thanthe result for 4M 2015 (RUB48.8 bn). The difference between the amount oftaxes to be paid for 1Q 2016 and the advance payments based on 3Q 2015 taxbase resulted in additional income tax expense that was recorded in April.Also, additional tax expenses resulted from differences in accounting andtaxation principles.Total comprehensive income amounted to RUB185.5 bn. In addition to the Netprofit, this item includes the net income from revaluation of financialassets available-for-sale and held-to-maturity.Assets in April 2016 decreased by 0.8%. The negative revaluation of the FXcomponent due to ruble strengthening had the main impact on the BalanceSheet items.The Bank lent about RUB580 bn to corporate clients in April. Corporateloan issues from the beginning of the year reached about RUB2.8 trln. Theloan portfolio ending balance decreased by RUB287 bn, or by 2.4% in April,due to the revaluation of the FX loans as well as the volumes of theredemptions exceeding the new issues. Total corporate loan portfolio wasat RUB11.9 trln as of May 1, 2016.The Bank lent about RUB130 bn to retail clients in April. Retail loanissues from the beginning of the year reached about RUB460 bn. Total retailloan portfolio increased by RUB24 bn, or 0.6%, in April to reach RUB4.18trln as of May 1, 2016. The share of mortgages in the retail portfoliocontinues to increase reaching 55.1% as of May 1, 2016 (was 53.8% as ofJanuary 1, 2016).Overdue loans of total loans remained at 3.3% in April. The level ofoverdue loans at Sberbank remains substantially lower than the level of thebanking sector's average (6.8% as of April 1, 2016).Securities portfolio was down by RUB19 bn in April, or by 0.8% due to theEurobonds of the Russian Federation and corporate bonds. The portfolioending balance was RUB2.34 trln as of May 1, 2016.Retail deposits and accounts increased by RUB135 bn in April, or by 1.3% toRUB10.6 trln. Corporate deposits and accounts decreased by RUB372 bn or by5.5% for the same period to RUB6.4 trln. The dynamic was explained by thenegative revaluation of the FX deposits.Core Tier 1 and Tier 1 capital (equal since Sberbank does not haveinstruments of additional capital) reached RUB1,859 bn as of May 1, 2016under preliminary calculations. Total capital amounted to RUB2,764 bn onthe same date, up by RUB32 bn in April primarily due to net profit earned.Risk-weighted assets decreased by RUB112 bn mainly due to the decrease inthe corporate loan portfolio.Capital adequacy ratios under preliminary calculations as of May 1, 2016were:* N1.1 - 7.9% (minimum adequacy level, required by the Central Bank ofRussia at 4.5%)* N1.2 - 7.9% (minimum adequacy level, required by the Central Bank ofRussia at 6.0%)* N1.0 - 11.7% (minimum adequacy level, required by the Central Bank ofRussia at 8.0%, considering Deposit Insurance Regulation). Sberbank 4M 2016 Financial Highlights (under RAS, non-consolidated) --------------------------------------------------------------------------- 11-May-2016 The EquityStory.RS, LLC Distribution Services include RegulatoryAnnouncements, Financial/Corporate News and Press Releases.Media 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, MICEX, RTS Category Code: MSCM TIDM: SBER Sequence Number: 3148 Time of Receipt: 11-May-2016 / 09:11 CET/CEST End of Announcement EquityStory.RS, LLC News Service --------------------------------------------------------------------------- 462393 11-May-2016

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