Sberbank (SBER) Sberbankreports 3Q 2017 Net Profit of RUB224.1bn, or RUB10.33perordinary share, under International Financial Reporting Standards (IFRS) 15 November2017, Moscow
Sberbank (hereafter "the Group") has released its interim condensed consolidated IFRS financial statements(hereafter "the Financial Statements") as at and for the 9 months ended 30September 2017, with review report by AO PricewaterhouseCoopers Audit. Alexander Morozov, Deputy Chairman of the Executive Board, CFO,commented: "Increased lending activity and strong focus on fee and commission income on the back of improving macro-economic environmentresulted in a solid quarter for the Group. Active asset and liability management allowed us to optimise our funding costs, sustain asset yields and thus report an improved margin. The Group started reporting its capital position under Basel III standard resulting in a common equity Tier 1 capital adequacy ratio of 11.0% at the end of the quarter."
The 3Q 2017Financial Highlights:
Selected Financial Results
*Total equity / total numbers of shares outstanding (ordinary + preferred). Unaudited Net interest incomereachedRUB375.0bnin 3Q 2017, up by 9.4% from the year-ago period:
The Group3Q 2017net fee and commission incomecame at RUB100.9bn, up by 13.9%from the year-ago period.The main drivers of this growth as compared to the same period a year ago were banking cards operations net of applicable expenses that increased by 19.6% in 3Q 2017 from 3Q 2016. Net provision chargefor loan impairment for 3Q 2017totaled RUB57.8bn compared to RUB102.1bn for 3Q 2016. This translated into the cost of riskof 120basis points for the quarterversus 213basis pointsa year ago.
The Groupoperating expenses for3Q 2017decreased to RUB160.4bn, down by 1.6% from the same period a yearagoas a result of cost discipline across main lines of the operating expenses.
Selected Balance Sheet Results
Total grossloansincreased by 2.5% to RUB19.5trnin 3Q 2017 as compared to 2Q 2017, supported by both corporate loan portfolio increase (up by 1.8% during the quarter) and continuingretail loan demand. Mortgages were up by 4.5%, consumer unsecured loan portfolio was up by 3.2%, while credit cards and overdrafts portfolio was up by 6.4% during the quarter.
Total customer deposits demonstrated an increase of 1.3% in 3Q 2017 as compared to 2Q 2017 driven by the inflow of funds from legal entities of 4.3%. The liquidity situation continued to be excellent. The net loans-to-deposits ratio improved to 92.4% within the targeted range of 90-100%.
Total NPL[2] ratioremained unchanged during the quarter at 4.6%. The coverage level of the NPL portfolio came at 157.2% of total NPLs during the quarter.
The share of restructured loan portfolio of total gross loan portfoliocame down to 6.1% in 3Q 2017 from 6.8% in 2Q 2017as a result of regular work with distressed assets. The provision coverage of total NPLs combined with restructured non-NPLs improved to80.6%in 3Q 2017, up from 77.1% in 2Q 2017.
Selected Equity Position Results
The Group totalequity increased by 15.8% to RUB3.3 trn during 9M 2017.
The Group started reporting capital ratios under Basel III standard effective 3Q 2017. The Group'stotal capital increased by 13.0% to RUB3.7trnduring 9M 2017mainlyas a result of retained net profit.
The Group's risk-weighted assetsincreased by6.8% to RUB28.9trn during 9M 2017, driven primarily by loan demand.The common equity Tier 1capital adequacy ratio increased by 80basis points to 11.0% during 9M 2017.The total capital adequacy ratio (Basel III) increasedby 70basis pointsto12.7% during 9M 2017.
[1]Other non-interest income consists of Net gains from trading securities; Net gains from securities designated as at fair value through profit or loss; Net gains from investment securities available-for-sale; Impairment of investment securities available-for-sale; Net gains / (losses)gains from trading in foreign currencies, operations with foreign currency derivatives and foreign exchange translation; Net gains /(losses) from operations with precious metals, precious metals derivatives and precious metals accounts translation; Net gains / (losses) from operations with other derivatives; Impairment of premises, equipment and intangible assets; Goodwill impairment; Net gains on initial recognition of financial instruments, loans restructuring and sale of loans; Net charge forother provisions; Revenue of non-core business activities; Cost of sales and other expenses of non-core business activities; Net premiums from insurance and pension fund operations; Net claims, benefits, change in contract liabilities and acquisition costs on insurance and pension fund operations; Other net operating income.
[2]Non-performing loans more than 90 days overdue |
ISIN: | US80585Y3080, RU0009029540, RU0009029557, US80585Y4070 |
Category Code: | QRT |
TIDM: | SBER |
LEI Code: | 549300WE6TAF5EEWQS81 |
Sequence No.: | 4861 |
End of Announcement | EQS News Service |
629361 15-Nov-2017