DGAP-Regulatory: Sberbank: Sberbank releases Financial Highlights for 6M 2016 (under RAS; non-consolidated)

7 Jul 2016 08:41

Sberbank / Miscellaneous - Medium PrioritySberbank: Sberbank releases Financial Highlights for 6M 2016 (under RAS;non-consolidated) 07-Jul-2016 / 09:41 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 6M 2016 (under RAS;non-consolidated)Please note that the numbers are calculated in accordance with Sberbank'sinternal methodology.July 7, 2016Key highlights for June, 2016:* The Bank earned net profit of RUB45.1 bn in June* Corporate overdue ratio declined from 2.9% to 2.8% and retail overdueratio decreased from 4.2% to 4.1% due to planned actions in resolvingproblem debts* The Bank reduced the share of government funding in liabilities to 0.4%(excluding subordinated debt)* The Bank paid RUB45 bn in dividends to its shareholders in June Deputy Chairman of Sberbank Alexander Morozov stated: 'The 2015 dividend distribution in June temporarily delayed the recovery ofthe capital adequacy ratio of the Bank. Overall the situation developsaccording to our expectations. The continued recovery of revenues, as wellas expected 2Q2016 net profit audit should provide for capitalreplenishment.' Comments for 6M 2016:Net interest income came at RUB542.9 bn, up by 62.6% compared to 6M 2015:Interest income increased by 7.6%, mostly driven by the increase in volumesof working assets; Interest expenses came down by 22.2% due to the decreasein market rates and the substitution of state funding with clients' funds.Fee and commission income was up by 25.9% to RUB147.5 bn, driven bytransactional business with bank cards and acquiring, cash settlements aswell as bank insurance.Net income from FX revaluation and trading operations on capital marketsamounted to -RUB33.8 bn, in June coming at -RUB9.5 bn due to the fxrevaluation of the Balance sheet items as a result of ruble appreciation.Operating expenses increased by 12.9%, which was significantly slower thanpre-provision operating income growth of 42.5%. The increase in operatingexpenses was driven by indexation of wages and amortization, as well astiming differences in accounting in 2015 and 2016. Cost-to-Income ratiodecreased from 42.3% for 6M 2015 to 33.5% for 6M 2016.Total provision charges amounted to RUB146.2 bn vs. RUB175.9 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 remained2.1 times the overdue loans.Net profit before income tax came at RUB300.0 bn vs. RUB96.0 bn for 6M2015. Net profit totaled RUB229.4 bn, which was 2.8 times higher than theresult for 6M 2015.Total comprehensive income which includes the income from revaluation offinancial assets available-for-sale and held-to-maturity, amounted toRUB295.1 bn.Assets in June decreased by 1.0% mainly due to revaluation of the foreigncurrency denominated assets on the back of ruble appreciation.The Bank lent about RUB730 bn to corporate clients in June. Corporate loanissues from the beginning of the year exceeded RUB4.0 trln. The amount ofissues in June was comparable to the amount of redemptions during themonth, however the loan portfolio ending balance decreased by RUB137 bn dueto the ruble appreciation, or by 1.1% to reach RUB11.8 trln.The Bank lent about RUB125 bn to retail clients in June. Retail loan issuesfrom the beginning of the year exceeded RUB700 bn. Total retail loanportfolio increased by RUB13 bn in June to exceed RUB4.2 trln as of July 1,2016. The share of mortgages in retail portfolio exceeds 55%.Thanks to a number of undertaken measures the level of corporate overdueloans was reduced by RUB10.8 bn in June, and by RUB50 bn from the beginningof the year. Retail overdue loans also came down in June by RUB2.6 bn.Overdue loans of total loans remained at 3.2% in June, which issubstantially lower than the level of the banking sector's average (6.9% asof June 1, 2016).Securities portfolio was down by RUB26 bn in June due to redemptions ofcorporate bonds as well as ruble appreciation. The portfolio ending balancewas RUB2.36 trln as of July 1, 2016.Retail deposits and accounts increased by RUB112 bn in June to RUB10.87trln, while corporate deposits and accounts were down by RUB305 bn toRUB6.2 trln. Total deposits and accounts reached RUB17.1 trln and remainthe main source of funding for the Bank.The Bank reduced the volume of more expensive funds borrowed from theCentral Bank by RUB61 bn in June. Their share (excluding the subordinatedloan) in total liabilities was immaterial at 0.4% as of July 1, 2016. Theseare special refinancing instruments.Core Tier 1 and Tier 1 capital (equal since Sberbank does not haveinstruments of additional capital) reached RUB1,890 bn as of July 1, 2016under preliminary calculations. Total capital amounted to RUB2,764 bn as ofJuly 1, 2016, down by RUB15 bn on the back of dividend payment for 2015 andinvestments in share capital of financial subsidiaries.Risk-weighted assets decreased by RUB110 bn in June under preliminarycalculations mainly due to the decrease of corporate loan portfolio.Capital adequacy ratios under preliminary calculations as of July 1, 2016were:* N1.1 - 8.1% (minimum adequacy level, required by the Central Bank ofRussia at 4.5%)* N1.2 - 8.1% (minimum adequacy level, required by the Central Bank ofRussia at 6.0%)* N1.0 - 11.8% (minimum adequacy level, required by the Central Bank ofRussia at 8.0%, considering Deposit Insurance Regulation). Sberbank 6M 2016 Financial Highlights (under RAS, non-consolidated) --------------------------------------------------------------------------- 07-Jul-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, MICEX, RTS Category Code: MSCM TIDM: SBER Sequence Number: 3248 Time of Receipt: 07-Jul-2016 / 09:08 CET/CEST End of Announcement EquityStory.RS, LLC News Service --------------------------------------------------------------------------- 479205 07-Jul-2016

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