Sberbank (SBER)
Sberbank: Sberbank releases Financial Highlights for 11M 2017 (under RAS; non-consolidated)

07-Dec-2017 / 08:08 CET/CEST
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
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Sberbank releases Financial Highlights for 11M 2017 (under RAS; non-consolidated)

Please note that the numbers are calculated in accordance with Sberbank's internal methodology. There were some amendments to the methodology from January 1, 2017 and the numbers for 2016 were restated in accordance with the new methodology for comparability purposes.

December 7, 2017

Key highlights for November:

  • In November, the Bank earned net profit of RUB64.3 bn;
  • Client funds increased by RUB113 bn or 0.7% in real termsin November
  • The amount ofretail loans issued in November hit a record of about RUB240bn and over RUB1 trln were granted to corporate clients;
  • The Bank reduced client overdue debt in November by RUB14.4 bn.

 

Deputy Chairman of Sberbank Alexander Morozov stated:

 

"In November, the Bank issued a historical record of retail loans-around RUB240 bn - and posted a decent growth of corporate loan portfolio on the back of loan quality enhancement. The Bank also saw inflows of client funds both in corporate and retail segments as well as growth in net fee and commission income by more than 15%."

Commentsfor11M 2017:

Netinterest income increased by 7.9% compared to 11M2016 and came at RUB1.1 trln. The increase was due to such factors as lower rates on client funds and expansion of retail loan portfolio.

 

Net fee and commission income was up by 15.6% to RUB320bn,driven largely by operations with bank cards and bank insurance, which both grew by 28% as compared to 11M2016.

 

Operating income before provisions increased by 15.5% compared to 11M 2016, which outpaced operating expensesfor the same period by a significant margin of 9.6p.p. Growth in operating expenses by5.9%was due to introduction of accrual approach to spread costs more evenly through the year starting from 2017in addition to wage indexation.Excluding payroll costs, operating expenses fell 1.0% or RUB1.8 bn as compared to 11M 2016, as cost reduction measures implemented by the Bank took effect.Cost-to-Income ratio stood at 30.2% for 11M 2017, an improvement of2.7 p.p. as compared to 11M 2016.

Provision charges totaled RUB19.7 bn in November and amounted to RUB281bn for 11M 2017, which is 4.7% higher in comparison with 11M 2016. As of December 1, 2017, loan-loss provisions were 2.7 times overdue loans.

Net profit before income tax came at RUB780 bn. Net profit totaled RUB624 bn, including RUB64.3 bn inNovember.

Total assetsincreased by 0.7% in nominal terms and by 0.4% in real terms and exceeded RUB22.7 trln in November, driven mainly by customer loan portfolio expansion.

The Bank granted over RUB1 trln in loans to corporate clients in November or total overRUB9.6 trln from the beginning of the year, which is 22% higher than in 11M2016. Corporate loan portfolioincreased by1.7% in nominal terms and by 1.3% in real terms. The outstanding balance exceeded RUB12.1 trln.

The Bank set a new record in November by granting almost RUB240 bn inloans to retail clients. The previous records were overcome both in mortgage loans and consumer loans. Total amount of retail loans granted for 11M 2017 was RUB1.9 trln, or 35% more than in 11M2016. Retailloan portfolio expanded 2.0% to RUB4.84 trln.

Regular work with problem loans helped the Bank to reduce its overdue exposure by RUB14.4 bn in November. The share of overdue loans as percentage of total portfolio reduced in November by 0.1 p.p. to 2.6%. The indicator is substantially lower than the sector average (8.7% excl. Sberbank as of November 1, 2017).

Securities portfolioremained virtually unchanged in November -a slight increase of 0.4% - at RUB2.46 trln as of December 1. The portfolio consists of government securities, including those issued by the Bank of Russia, that represent 54% and corporate bonds that represent 37% of the total portfolio.

Customer deposits and accounts increased in November by 1.0%in nominal terms and by 0.7% in real terms. Growth spanned across all the corporate segments (+1.4% in real terms) as well as retail depositors (+0.3% in real terms). As of December 1, the balance of client funds amounted to RUB17.2 trln and accounted for 89% of liabilities.

 

Common Equity Tier 1 and Tier 1 capital (equal since Sberbank does not have instruments of additional capital) reached RUB2,658bn as of December 1, 2017 under preliminary calculations.

Total capital amounted to RUB3,653 bn for this date, with retained earnings being the main source of capital increase.

Risk-weighted assets added RUB289 bn in November to RUB24.8 trln, which was mainly due to loan portfolio.

Capital adequacy ratios as of December 1, 2017 under preliminary calculations were:

  • N1.1 - 10.8% (minimum adequacy level, required by the Central Bank of Russia at 4.5%)
  • N1.2 - 10.8% (minimum adequacy level, required by the Central Bank of Russia at 6.0%)
  • N1.0 - 14.8% (minimum adequacy level, required by the Central Bank of Russia at 8.0%).

 

 

Sberbank 11M 2017 Financial Highlights (under RAS, non-consolidated)

 

 



ISIN: US80585Y3080, RU0009029540, RU0009029557, US80585Y4070
Category Code: MSCM
TIDM: SBER
LEI Code: 549300WE6TAF5EEWQS81
Sequence No.: 4956

 
End of Announcement EQS News Service

636623  07-Dec-2017 

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