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

Income Statement Highlights for 6M, 2015 (as compared to 6M, 2014):

  • Interest income increased by 26.3% y-o-y, interest expenses increased by 88.9% y-o-y. Net interest income decreased by 23.1% y-o-y
  • Noncredit commission income grew by 17.0% y-o-y, net fee and commission income increased by 2.2% y-o-y
  • Operating income before total provisions decreased by 15.6% y-o-y
  • Total provision charge was RUB176.0 bn vs. RUB136.9 bn charge for 6M, 2014
  • Operating expenses were up by 3.1% y-o-y
  • Net profit before income tax reached RUB95.0 bn vs. RUB227.4 bn for 6M, 2014
  • Net profit totaled RUB81.6 bn vs. RUB186.4 bn for 6M, 2014. Increase in cost of the CBR's funding and cost of client funds, as well as creation of provisions for impairment were the main drivers for the decline in Net profit.

Net interest income came at RUB319.2 bn, down by 23.1% compared to that for 6M, 2014. The pace of net interest income growth in 2015 is catching up to 2014 rate.

  • Interest income increased by RUB195.7 bn, or 26.3% driven mostly by loan portfolio growth and increase in corporate loan interest rates.

  • Interest expenses increased by RUB291.6 bn, or 88.9% due to the increase in market interest rates and inflow of funds. The strongest effect on interest expense came from the CBR funding and client deposits. Slowdown on interest expenses growth continued driven by the gradual decrease in the key interest rate by the CBR from the beginning of 2015. The increase in interest expense on deposits in June m-o-m is related to transfer of contributions to the Deposit Insurance Agency for the quarter (RUB 8.2 bn).

Net fee and commission income came at RUB128.4 bn in 6M, 2015, up by 2.2% than in 6M, 2014. Due to substantial increase in June, net fee and commission income for 6M, 2015 exceeded the figure for the same period last year for the first time since the beginning of this year. The low growth rate was driven by decline in commission income from corporate lending due to lending slowdown. Noncredit commission income increased by 17.0%. Transactions with bank cards and acquiring remain main drivers in noncredit commission income growth. Also, there was significant increase in income from cash settlements and bank guaranties.

Net income from FX revaluation and trading operations on capital markets amounted to RUB17.8 bn for 6M, 2015. The income growth in June was driven by FX revaluation due to significant ruble devaluation.

Operating expenses increased by 3.1% y-o-y for 6M, 2015 due to the increase in staff costs. Other operating costs decreased by 3.8% due to the Bank`s cost optimization program.

Please note, that comparison of 2015 staff costs to staff costs for the same period of 2014 is not quite correct. Effective 2015 the Bank uses accrual method in staff costs accounting to spread these costs more evenly across the year. Excluding the effect of this adjustment, operating expenses for 6M, 2015 decreased by 0.4% y-o-y.

Total provision charges amounted to RUB176.0 bn for 6M, 2015 vs. RUB136.9 bn 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.

Net profit before income tax came at RUB95.0 bn for 6M, 2015 vs. RUB227.4 bn a year earlier. Net profit totaled RUB81.6 bn vs. RUB186.4 bn.

Assets increased by 4.1% in June to reach RUB20.5 trln. The increase was partially attributed to positive revaluation of FX component on ruble devaluation.

The Bank lent about RUB470 bln to corporate clients in June. Loan issues from the beginning of the year reached over RUB2.2 trln. Total corporate loan portfolio in June increased by RUB144 bn (+1.3%) to RUB10.9 trln.

Retail lending volumes are gradually recovering. The Bank lent over RUB115 bn to retail clients in June and more than RUB0.5 trln from the beginning of the year. Total retail loan portfolio increased by RUB22 bn, or +0.6%, came at over RUB4.0 trln. The share of mortgages in the structure of retail loan portfolio reached 51% and continues to increase.

Overdue loans decreased by 0.06 p.p. to 2.85% of total loans in June. The level of overdue loans at Sberbank is half the level of the banking sector's average.

Securities portfolio decreased by RUB63 bn in June, or by 3.5%, driven by OFZ and sub-federal bonds repayments. The portfolio ending balance was RUB1.7 trln as of July 1, 2015.

Retail deposits and accounts increased by RUB194 bn in June, or up by 2.2% to reach RUB9.1 trln as of July 1, 2015. Overall retail deposits and accounts portfolio increased by RUB0.6 trln (+6.9%) for 6M, 2015 whereas there was a decrease by 1.0% for the same period last year.

Corporate funding increased by RUB127 bn in June, or up by 2.6%, from term deposits. Overall corporate clients' funding amounted to RUB5.0 trln as of July 1, 2015.

Core Tier 1 and Tier 1 capital (equal since Sberbank does not have instruments of additional capital) stood at RUB1,708 bn as of July 1, 2015 under preliminary calculations. Total capital amounted to RUB2,521 bn on the same date.

The key constituents to affect total capital in June were net profit contribution (+RUB22 bn) and dividend payment (-RUB10 bn). Overall total capital increased by RUB13 bn in June.

Risk-weighted assets increased by RUB635 bn in June mainly due to recalculation of operational risk after 2014 financial statement approval by the AGM in accordance with the requirements of the CBR.

Capital adequacy ratios under preliminary calculations as of July 1, 2015 were:

  • N1.1 - 8.6% (minimum adequacy level, required by the Central Bank of Russia at 5.0%)
  • N1.2 - 8.6% (minimum adequacy level, required by the Central Bank of Russia at 6.0%)
  • N1.0 - 12.65% (minimum adequacy level, required by the Central Bank of Russia at 10.0%, considering Deposit Insurance Regulation).

Sberbank 6M 2015 Financial Highlights (under RAS, non-consolidated)

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