EQS-Regulatory: Sberbank: Sberbank releases Financial Highlights for 9M 2016 (under RAS; non-consolidated)

7 Oct 2016 08:06

Sberbank / Miscellaneous - Medium PrioritySberbank: Sberbank releases Financial Highlights for 9M 2016 (under RAS;non-consolidated) 07-Oct-2016 / 09:06 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 9M 2016 (under RAS;non-consolidated)Please note that the numbers are calculated in accordance with Sberbank'sinternal methodology.October 7, 2016Key highlights for September, 2016:* The Bank earned net profit of RUB53.9 bn in September* Corporate overdue ratio decreased from 3.2% to 2.4% due to plannedactions in resolving problem debts, retail overdue ratio also decreasedfrom 4.2% to 4.0% in SeptemberDeputy Chairman of Sberbank Alexander Morozov stated: 'The focus of the Bank has been and continues to be on increasingefficiency and productivity, as well as expanding the base of fee income,improving asset quality and strengthening the bank's capital adequacy'Comments for 9M 2016:Net interest income came at RUB829.5 bn: Interest income increased by 5.6%,mostly driven by the increase in volume of working assets; Interest expensecame down by 21.9% due to substitution of state funding with clients' fundsand decrease in market rates compared to 9M 2015.Fee and commission income was up by 21.7% to RUB227.5 bn compared 9M 2015,driven by transactional business with bank cards and acquiring, wherevolumes increased both due to the growing number of cards issued by thebank, and due to increased penetration of digital services. Income frombank insurance also contributed to Fee and commission income.Operating expense increased by 13.3%, which was significantly slower thanpre-provision operating income growth (32.9%). The increase in operatingexpenses was driven by continuing wages indexation. Cost-to-Income ratiodecreased from 38.9% for 9M 2015 to 33.2% for 9M 2016.Total provision charges amounted to RUB4.5 bn in September. Significantimpact on the reserves in September was due to the strengthening of theruble against major foreign currencies, as well as progress in resolvingproblem debts. Total provision charge for 9M 2016 amounted to RUB218.2 bn,or 72% of 9M 2015 figure. The Bank continues to form loan-loss provisionsin-line with the requirements of the Central Bank of Russia.Net profit before income tax came at RUB487.4 bn. Net profit totaledRUB376.7 bn.Total comprehensive income which includes the income from revaluation offinancial assets available-for-sale and held-to-maturity, amounted toRUB444.8 bn.Total assets in September increased by 0.2% to RUB21.9 trln. The growth ofassets was hindered by revaluation of the foreign currency denominatedassets on the back of ruble appreciation.The Bank lent over RUB870 bn to corporate clients in September. Corporateloan issues from the beginning of the year were about RUB6.25 trln, whichwas 1.5X more than for 9M 2015. The loan portfolio ending balance decreasedby 0.9% during the month. The decrease was largely influenced byrevaluation of earlier issued foreign currency denominated loans.The Bank lent RUB140 bn to retail clients in September, including about 35ths mortgage loans for a total amount of over RUB60 bn. Retail loan issuesfrom the beginning of the year were RUB1.1 trln, which was almost a thirdgreater than for 9M 2015. Total retail loan portfolio increased by RUB17 bnin September to reach RUB4.28 trln as of October 1, 2016.The bank undertook a number of measures that led to a decrease of corporateoverdue loans by RUB98.5 bn in September. Retail overdue loans also camedown by RUB6.7 bn. Overall the share of overdue loans of total loans wasdown to 2.8% from 3.5%, which is substantially lower than the bankingsector's average (7.1% as of September 1, 2016).Securities portfolio was down by RUB70 bn in September due to redemptionsof European Commercial Papers as well revaluation of FX denominated part ofthe portfolio. The portfolio ending balance was RUB2.3 trln as of October1, 2016.Retail deposits and accounts in nominal terms remained nearly unchanged inSeptember, whereas in real terms demonstrated an inflow of funds both inRubles, U.S. dollars and Euros. Retail deposits and accounts ending balancewas RUB11.0 trln as of October 1, 2016.Corporate deposits and accounts were down by RUB171 bn due to both fundsoutflow as well as FX revaluation. Corporate deposits and accounts endingbalance decreased by 2.9% to RUB5.8 trln as of October 1, 2016.The share of state funding (excluding the subordinated loan) in totalliabilities remained immaterial at 0.4%.Core Tier 1 and Tier 1 capital (equal since Sberbank does not haveinstruments of additional capital) reached RUB2,044 bn as of October 1,2016 under preliminary calculations. Total capital amounted to RUB2,928 bnas of October 1, 2016, up by RUB53 bn due to earned net profit.Risk-weighted assets decreased by RUB404 bn in September mainly due to thedecrease of foreign currency risk, which is part of capital calculation.Capital adequacy ratios as of October 1, 2016 under preliminarycalculations were:* N1.1 - 8.8% (minimum adequacy level, required by the Central Bank ofRussia at 4.5%)* N1.2 - 8.8% (minimum adequacy level, required by the Central Bank ofRussia at 6.0%)* N1.0 - 12.5% (minimum adequacy level, required by the Central Bank ofRussia at 8.0%). Sberbank 9M 2016 Financial Highlights (under RAS, non-consolidated) --------------------------------------------------------------------------- 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: MSCM TIDM: SBER Sequence Number: 3470 Time of Receipt: 07-Oct-2016 / 09:06 CET/CEST End of Announcement EquityStory.RS, LLC News Service --------------------------------------------------------------------------- 509587 07-Oct-2016

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