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Sberbank / Miscellaneous - Medium Priority
Sberbank: Sberbank releases Financial Highlights for 1Q 2017 (under RAS;
non-consolidated)
07-Apr-2017 / 09:22 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EquityStory.RS,
LLC - a company of EQS Group AG.
The issuer / publisher is solely responsible for the content of this
announcement.
*Sberbank releases Financial Highlights for 1Q 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. _
April 7, 2017
*Key highlights for March, 2017:*
*- *In March 2017, the Bank posted RUB50.4 bn in net profit.
- Overdue loans were reduced by RUB7.5 bn during the month;
- Core Equity Tier 1 and Tier 1 capital ratios increased by 0.7 p.p. to
11.2% on the back of the audited result for 2016.
Deputy Chairman of Sberbank Alexander Morozov stated:
_'Despite the ongoing market volatility and occasionally unfavorable
environment, we see a revival in loan demand and a pickup in lending, driven
by the mortgage segment. New issuance of retail loans amounted to more than
RUB150 bn, more than half of which were mortgages. Lending revival could be
a trigger for business growth and beneficial for the profitability of the
Bank.' _
*Comments for 1Q 2017:
Net interest income *increased by 4.0% compared to 1Q 2016 and came at
RUB281.1 bn. A decrease in interest rates on deposits and accounts along
with lower balance of funds raised from legal entities had a positive impact
on net interest income..
*Net fee and commission income* was up by 14.2% to RUB76.6 bn, mainly driven
by bank card operations, including acquiring, and income from bank
insurance.
*Securities trading *posted a solid gain of USD9.7 bn in March, largely due
to a one-off sale of MasterCard shares. This supported *operating income
before provisions*, which was up by 16.9%.
*Operating expense *came at RUB112.8 bn, up by 16.3% year on year which owed
to two factors: methodology change in costs accounting effective in 2017 (a
switch to accrual method to spread costs more evenly throughout the year)
and wage indexation in 2Q-3Q 2016. Cost-to-Income ratio for 1Q2017 improved
to 30.3%.
*Total provision charges *amounted to RUB23.8 bn in March. The Bank formed
sufficient loan-loss provisions for a large borrower - international
retailer. The amount of provisions in March and in 1Q 2017 was also affected
by ruble appreciation and consequent recovery of FX loan-loss provisions.
Provision charges amounted to RUB48.8 bn in 1Q 2017, decreasing 2.2-folds
year on year due to portfolio quality stabilization. Overdue loans are
covered by loan-loss provisions by 2.6 times.
*Net profit before income tax *came at RUB210.9 bn. *Net profit* totaled
RUB155.0 bn, including RUB50.4 bn for March.High effective tax rate for 1Q
2017 is caused by the advance payment system and will normalize in 2Q.
*Total assets* in March decreased by 1.2% to RUB21.3 trln mainly as a result
of revaluation of the foreign currency denominated assets on the back of
Ruble appreciation. This also influenced the dynamics within the *corporate
loan portfolio *that came down by 1.7% to RUB10.9 trln. Corporate loan
issues in March exceeded RUB820 bn, or RUB1.8 trln from the beginning of the
year.
The Bank lent over RUB150 bn to *retail clients* in March, which was close
to pre-crisis volumes of 2014. Total retail loan portfolio increased by
0.7%, or by RUB31 bn, during the month. The major driver of growth was
mortgage loans, the share of which of total retail loans came at 57.5%.
The Bank reduced the volume of overdue loans by RUB7.5 bn in March by means
of regular recovery processes with both corporate and retail clients. The
share of *overdue loans* of total loans came down by 2bp to 2.61% in March,
which is substantially lower than the banking sector's average (6.7% as of
March 1, 2017).
*Securities portfolio* was down by 2.5% in March as a result of redemptions
of the OFZ bonds as well as negative revaluation of foreign currency
denominated portfolio, as well repayments and redemptions of FX denominated
Eurobonds. The portfolio ending balance was RUB2.05 trln as of April 1,
2017.
*Retail deposits and accounts* in March decreased by RU57 bn, or by 0.5%.
Corporate deposits and accountswere down by RUB144 bn, or by 2.8%. The main
reason for the balances contraction was Ruble appreciation. In real terms, a
decrease in retail deposits and accounts was meager - less than 0.1%. Total
deposits and accounts ending balance was RUB16.4 trln as of April 1, 2017.
In March, the Bank repaid its earlier *issued bonds* in the amount of
USD1.25 bn as per maturity schedule. Repayments over during 1Q 2017 took the
share of international borrowings from 4.0% to 3.0% of the Bank's
liabilities.
*Core Tier 1* and *Tier 1 capital* (equal since Sberbank does not have
instruments of additional capital) reached RUB2,473 bn as of April 1, 2017
under preliminary calculations. The increase in Core Tier 1 and Tier 1
capital in March was attributed to the inclusion of 4Q2016 net profit after
audit of the Bank 2016 net profit.
*Total capital* amounted to RUB3,308 bn as of April 1, 2017, up mainly due
to earned net profit.
Risk-weighted assets decreased by RUB364 bn in March mainly due to corporate
loans to reach RUB22.2 trln.
Capital adequacy ratios as of April 1, 2017 under preliminary calculations
were:
- N1.1 - 11.2% (minimum adequacy level, required by the Central Bank of
Russia at 4.5%)
- N1.2 - 11.2% (minimum adequacy level, required by the Central Bank of
Russia at 6.0%)
- N1.0 - 14.9% (minimum adequacy level, required by the Central Bank of
Russia at 8.0%).
Sberbank 1Q 2017 Financial Highlights (under RAS, non-consolidated)
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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 (Basic Board) in Frankfurt; London, Moscow
Category Code: MSCM
TIDM: SBER
LEI Code: 549300WE6TAF5EEWQS81
Sequence No.: 4042
End of Announcement EquityStory.RS, LLC News Service
563165 07-Apr-2017
(END) Dow Jones Newswires
April 07, 2017 03:23 ET (07:23 GMT)
