Sberbank / Miscellaneous - Medium Priority
Sberbank: Sberbank reports 1Q 2016 Net Profit of RUB117.7 bn, or RUB5.49 per ordinary share, under International
Financial Reporting Standards (IFRS)
25-May-2016 / 09:47 CET/CEST
Dissemination 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 reports 1Q 2016 Net Profit of RUB117.7 bn, or RUB5.49 per ordinary share, under International Financial
Reporting Standards (IFRS) 25 May 2016
Moscow, 25 May 2016 - Sberbank (hereafter 'the Group') has released its interim condensed consolidated IFRS financial
statements (hereafter 'the Financial Statements') as at and for the 3 months ended 31 March 2016, with review report by
Ernst & Young.
'Improvement in our return on equity in the first quarter of this year was attributable to continued recovery of net
interest income, reduction in the cost of risk and tight control over operating expenses on the back of moderate
stabilization of macroeconomic environment,' said Alexander Morozov, Deputy Chairman of the Executive Board, CFO.
The 1Q 2016 Financial Highlights:
* The Group net profit reached RUB117.7 bn, or RUB5.49 per ordinary share, up by 284.6% compared to 1Q 2015
* The Group quarterly annualized return on equity (ROE) reached 19.3%, up from 5.9% in 1Q 2015
* The quarterly Cost of Risk (CoR) came at 170 bp, down by 60 basis points compared to 4Q 2015
* The Group Cost to Income ratio resulted at 36.7%, compared to 46.2% for 1Q 2015
* The Group capital position improved during the quarter, with core capital adequacy ratio up by 80 basis points to
9.7%, while total capital adequacy ratio reached 13.4%, up by 80 basis points during the quarter * Net Loan to Deposit
ratio improved by 110 basis points to 93.0% compared to 4Q 2015
Selected Financial Results
RUB bn, unless stated otherwise 1Q 2016 4Q 2015 1Q 2015 1Q16/ 4Q15 1Q16/
1Q15
Net interest income 325.5 297.2 200.3 9.5% 62.5% Net fee and commission income 77.2 95.6 69.0 (19.2%) 11.9% Other
non-interest income / (expense) (25.1) 25.8 35.6 Total revenues 377.6 418.6 304.9 (9.8%) 23.8% Net provision charge for
impairment of debt financial assets (83.9) (112.7) (115.3) (25.6%) (27.2%)
Operating expenses (143.8) (191.7) (139.7) (25.0%) 2.9% Net profit 117.7 72.6 30.6 62.1% 284.6% Earnings per ordinary
share, RUB 5.49 3.40 1.42 61.5% 286.6% Total comprehensive income 124.5 133.7 75.2 (6.9%) 65.6% Book value per ordinary
share, RUB 115.8 110.0 97.1 5.3% 19.3% Ratios
Return on equity 19.3% 12.6% 5.9% 6.7 pp 13.4 pp Return on assets 1.7% 1.1% 0.5% 0.6 pp 1.2 pp Net interest margin 5.3%
4.9% 3.7% 0.4 pp 1.6 pp Cost of risk 1.7% 2.3% 2.5% (0.6 pp) (0.8 pp) Cost-to-income ratio 36.7% 45.8% 46.2% (9.1 pp)
(9.5 pp)
Net interest income was RUB325.5 bn in 1Q 2016, up by 62.5% from the year-ago period:
* Interest income (up 9.1% to RUB613.0 bn compared to 1Q 2015) was driven by corporate lending, mortgages and securities
portfolio; * Interest expenses including deposit insurance expenses decreased by 20.5% from 1Q 2015 to RUB287.5 bn. The
cost of liabilities decreased by 30 basis points to 5.0% in 1Q 2016 relative to 4Q 2015, driven by both corporate and
retail term deposits, cost of which came down by 50 basis points to 4.5% and by 20 basis points to 6.5% respectively.
The Group's 1Q 2016 net fee and commission income came at RUB77.2 bn, up by 11.9% from the year-ago period.
* The fee and commission income grew by 13.4% to RUB94.6 bn from the year-ago period. Income from the banking cards
operations increased by 15.9% in 1Q 2016 from 1Q 2015;
* The fee and commission expense grew by 20.8% to RUB17.4 bn in part by expansion of banking cards business.
Net provision charge for loan impairment for 1Q 2016 totaled RUB84.3 bn compared to RUB114.9 bn for 1Q 2015. This
translated into the cost of risk of 170 basis points for the quarter versus 250 basis points a year ago. * The cost of
risk for corporate loans halved to 146 basis points in 1Q 2016 relative to 4Q 2015, in part attributed to recovery
progress on problem loans, refining provisioning methodology as well as ruble appreciation during the quarter;
* The cost of risk for retail loans increased by 194 basis points to 243 basis points in 1Q 2016 relative to 4Q 2015,
mostly affected by the adjustment in provisions related to methodology changes and seasonality. Other non-interest
expense came in at RUB25.1 bn mostly affected by net charge for other provisions of RUB15.8 bn for 1Q 2016 relating to
change in estimation methodology for credit related and other commitments as well as net losses arising from trading
operations and foreign currency translation primarily on treasury operations.
The Group's operating expenses for 1Q 2016 increased to RUB 143.8 bn, up by 2.9% from the same period a year ago;
headcount decreased by 0.9% during the quarter.
Effective tax rate in 1Q 2016 reached 21.5%, down from 36.4% in 4Q 2015.
Selected Balance Sheet Results
RUB bn 31/03/16 31/12/15 3M16-12M15
Total net loans 18 501.9 18 727.8 (1.2%) Total gross loans 19 740.2 19 924.3 (0.9%) Corporate loans 14 785.6 14 958.7
(1.2%) Retail loans 4 954.6 4 965.6 (0.2%)
Renegotiated loans 3 521.3 3 423.8 2.8% Securities portfolio 2 957.7 2 906.0 1.8% Assets 26 571.7 27 334.7 (2.8%)
Total deposits 19 285.2 19 798.3 (2.6%) Retail deposits 11 660.1 12 043.7 (3.2%) Corporate deposits 7 625.1 7 754.6
(1.7%) Ratios
Net loans-to-deposits ratio 93.0% 91.9% (1.1 pp) NPL ratio 5.2% 5.0% 0.2 pp
NPL coverage ratio 1.2X 1.2X unch
Renegotiated-to-gross loans 17.8% 17.2% 0.6 pp
Total loans, net, decreased by 1.2% to RUB18.5 trn in 1Q 2016 as compared to 4Q 2015. The decrease of the corporate loan
portfolio was influenced by revaluation of foreign currency denominated loans. Excluding the effect from the
revaluation, the real loan portfolio demonstrated slightly positive growth. The dynamics within retail loan portfolio
were influenced primarily by an increase in mortgages (up 1.8% during the quarter) and contraction in volume of consumer
unsecured loans (portfolio down by 3.9% during the quarter).
Client deposits demonstrated a drop during the quarter in both retail and corporate segments, down by 3.2% and 1.7%
respectively in 1Q 2016 as compared to 4Q 2015, in large as a result of ruble appreciation as well as seasonality. The
structure of client deposits improved during the quarter as the share of current accounts in total deposits increased by
90 basis points to 25.0%.
Total NPL ratio increased to 5.2% in 1Q 2016 from 5.0% in 4Q 2015 mainly as a result of total loan portfolio
contraction. Coverage level of the NPL portfolio by provisions remained unchanged at 1.2X in 1Q 2016 from 4Q 2015.
The share of renegotiated loan portfolio increased to 17.8% of total loan portfolio in 1Q 2016 relative to 4Q 2015,
reaching RUB3.5 trn. The main sector affecting the increase was metals and mining. The quarterly NPL ratio within the
renegotiated loan portfolio increased slightly by 30 basis points to 11.3% from 11.0%.
Selected Equity Position Results
Under Basel I
RUB bn 31/03/16 31/12/15 3M16-12M15
Total Tier 1 capital 2 345.8 2 226.7 5.3% Total capital 3 233.5 3 151.2 2.6%
Risk-weighted assets 24 118.1 24 995.5 (3.5%) Equity 2 499.7 2 375.0 5.3%
Ratios
Core capital adequacy ratio 9.7% 8.9% 0.8 pp Total capital adequacy ratio 13.4% 12.6% 0.8 pp
The Group's total capital increased by 2.6% to RUB3.2 trn in 1Q 2016 relative to 4Q 2015 primarily as a result of
retained net profit.
The Group's risk-weighted assets decreased by 3.5% in 1Q 2016 from 4Q 2015 to RUB24.1 trn, driven mainly by currency
fluctuations. The total capital adequacy ratio (Basel I) increased by 80 basis points to 13.4% during 1Q 2016. The core
capital adequacy ratio increased by 80 basis points to 9.7% during 1Q 2016.
25-May-2016 The EquityStory.RS, LLC Distribution Services include Regulatory Announcements, 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, MICEX, RTS
Category Code: MSCM
TIDM: SBER
Sequence Number: 3176
Time of Receipt: 25-May-2016 / 09:16 CET/CEST
End of Announcement EquityStory.RS, LLC News Service
466451 25-May-2016
(END) Dow Jones Newswires
May 25, 2016 03:47 ET (07:47 GMT)
