DGAP-News: Sberbank: Sberbank releases Financial Highlights for January-July 2014 (under RAS; non-consolidated)

DGAP-News: Sberbank: Sberbank releases Financial Highlights for January-July 
2014 (under RAS; non-consolidated)

Sberbank  / Key word(s): Miscellaneous/Miscellaneous

07.08.2014 08:40

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Please note that the numbers are calculated in accordance with Sberbank's
internal methodology.

August 7, 2014

Income Statement Highlights for January-July 2014 (as compared to
January-July 2013):

  - Net interest income increased by 23.7% y-o-y

  - Net fee and commission income grew by 23.0% y-o-y

  - Noncredit commission income grew by 25.9% y-o-y

  - Operating income before total provisions increased by 23.7% y-o-y

  - Total provision charge was RUB162.6 bn vs. RUB67.3 bn charge in
    January-July 2013

  - Operating expenses were up by 11.5% y-o-y

  - Net profit amounted to RUB222.1 bn. Please note that comparison to Net
    profit for the same period of 2013 is incorrect due to adjustments that
    reflect new CBR regulation on deferred tax assets and liabilities.
    Excluding the effect of the one-off change in accounting, net profit
    would have amounted to RUB232.4 bn vs. RUB220.3 bn in January-July

Net interest income came at RUB490.8 bn, up by 23.7% compared to
January-July 2013:

  - Interest income increased by RUB169.1 bn driven by both corporate and
    retail loan portfolio growth;

  - Interest expenses grew by RUB75.1 bn, mostly due to customer deposits
    growth and increase in CBR funding volumes and costs.

Net fee and commission income amounted to RUB148.1 bn; up by 23.0% y-o-y
compared to January-July 2013. Noncredit commission income growth remains
strong, up by 25.9%, mostly driven by bank cards, acquiring, cash
settlements, bank guaranties and documentary operations.

Net income from trading operations amounted to RUB16.9 bn vs. RUB16.5 bn
for January-July 2013. Revenues on conversion operations increased
significantly (+129.5%), while there was a reduction of income on the
securities market due to the general market situation.

Operating income before provisions that is generated by core operations of
the Bank, increased by 23.7% to reach RUB674.4 bn.

Operating expenses increased by 11.5%. C/I ratio for January-July 2014
improved to 34.4% vs. 38.1% a year earlier due to the Bank's cost
optimization program. Pre-provision operating income growth outpaced
operating expenses increase more than twice (23.7% vs. 11.5%).

Total provision charges amounted to RUB162.6 bn vs. RUB67.3 bn charge a
year earlier. The Bank continues to practice a conservative approach in
loan-loss provisioning based on requirements of the Central Bank of Russia.
Coverage ratio remained strong: loan-loss provisions are 2.1 times the
overdue loans.

Profit before tax for January-July 2014 totaled RUB280.1 bn. In May, 2014
deferred tax liability was reflected in the Balance Sheet (please note
Sberbank releases Financial Highlights for January-May 2014 (under RAS;
non-consolidated). Consequently, the net profit for January-July 2014
amounted to RUB222.1 bn, 0.8% more than the net profit for the
corresponding period last year. Excluding the effect of adjustments that
reflect new regulation, the net profit for January-July 2014 would have
totaled RUB232.4, up by 5,5% vs. January-July 2013.

Assets increased by RUB63 bn in July, or 0.4%. FX revaluation had
significant impact on the Balance Sheet items growth in July due to the
ruble depreciation against major foreign currencies. The assets growth YTD
came at RUB1.1 trln, or 6.7% primarily due to credit portfolio growth.

The Bank lent around RUB440 bn to corporate clients in July. In
January-July 2014 the Bank lent RUB4.1 trln, that was RUB0.8 trln more than
in January-July 2013. Corporate loan portfolio increased by RUB73 bn in
July. The increase was driven by both new lending and positive revaluation
of existing FX portfolio. Corporate portfolio growth YTD came at RUB863 bn,
or 10.1%, exceeding RUB9.4 trln.

The Bank lent more than RUB190 bn to retail clients in July; where around
RUB85 bn were mortgages. In January-July the Bank lent more than RUB1.15
trln to retail clients exceeding the amount for the corresponding period
last year (excluding credit cards turnover) by more than RUB250 bn. Retail
clients portfolio in July increased by RUB90 bn. YTD growth came at RUB451
bn, or 13.5% to reach RUB3.8 trln.

The Bank retains quality of its loan portfolio at a good level: overdue
loans stood at 2.5% as of August 1, 2014.

Securities portfolio decreased by RUB76 bn, or -4.0% in July due to OFZ
bonds sales, decrease in market prices of securities and also REPO
reflection peculiarities in accounting.

Corporate funds decreased by RUB80 bn in July, driven by current accounts.
Total corporate funds growth YTD came at RUB395 bn, or +12.7%, to reach
RUB3.5 trln.

Retail funds were up by RUB51 bn in July, primarily driven by FX deposits
revaluation. Total retail funds reduced by RUB29 bn, or -0.4% YTD, totaled
RUB8.0 trln.

Core Tier 1 and Tier 1 capital (equal since Sberbank does not have
instruments of additional capital) reached RUB1,480 bn as of August 1, 2014
under preliminary calculations. Total capital amounted to RUB2,207 bn on
the same date. Changes in total capital in July was driven by net profit
contribution (+RUB36 bn) and revaluation of investments in financial
subsidiaries (-RUB14 bn). As a result, total capital increased by RUB20 bn
in July.

Capital adequacy ratios under preliminary calculations as of August 1, 2014

  - N1.1 - 8.3% (minimum adequacy level, required by the Central Bank of
    Russia at 5.0%)

  - N1.2 - 8.3% (minimum adequacy level, required by the Central Bank of
    Russia at 5.5%)

  - N1.0 - 12.3% (minimum adequacy level, required by the Central Bank of
    Russia at 10.0%, considering Deposit Insurance Regulation).

Sberbank 7M 2014 Financial Highlights (under RAS, unconsolidated) 

07.08.2014 The EquityStory.RS, LLC Distribution Services include Regulatory
Announcements, Financial/Corporate News and Press Releases.
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Language:     English
Company:      Sberbank
              19 Vavilova St.
              117997 Moscow
Phone:        +7-495-957-57-21
E-mail:       media@sberbank.ru
Internet:     www.sberbank.ru
ISIN:         US80585Y3080, RU0009029540, RU0009029557, US80585Y4070
Listed:       Frankfurt in Open Market (Entry Standard) ; MICEX, RTS
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