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Sberbank / Miscellaneous - Medium Priority
Sberbank: Sberbank releases Financial Highlights for 4M 2017 (under RAS;
non-consolidated)
10-May-2017 / 09:05 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 4M 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. _
May 10, 2017
*Key highlights for April, 2017:*
*- *The Bank earned net profit of RUB52.1 bn in April
- Corporate loan portfolio increased by 1.3%, retail loan portfolio - by
0.9%
- Corporate deposits were up by 1.1%, retail deposits - by 0.7%
Deputy Chairman of Sberbank Alexander Morozov stated:
'In April, we saw a revival of demand, reflected in the growth of lending to
both corporate and retail clients. The growth of volumes along with strict
cost control contributes to the further improvement of the Bank's efficiency
and profitability metrics. According to the results of 4 months of 2017,
Return on Assets came at 2.93% Return on Equity - at 21.5%, and Cost to
Income ratio was less than 30%'_._
*Comments for 4M 2017:*
*Net interest income *increased by 5.0% compared to 4M 2016 and came at
RUB376.9 bn, mainly due to decrease in interest rates on clients' funds.
*Fee and commission income* was up by 10.5% to RUB104.9 bn, mainly driven by
bank card operations, including acquiring, and income from bank insurance.
In April the Bank gained from a one-off sale of Visa shares. The gain was
reflected in Securities trading line. This supported *operating income
before provisions*, which was up by 19.5% for 4M 2017.
*Operating expense *was up by 11.7% to RUB153.0 bn. The increase was driven
by two factors: methodology changes (effective 2017 the Bank is using
accrual method in costs accounting to spread them more evenly across the
year) and wage indexation in 2Q-3Q 2016. Operating expenses were up just by
0.3% in April, compared to April last year. Cost-to-Income ratio came at
29.9% for 4M 2017, better than for 4M 2016 (32.0%).
*Total provision charges *amounted to RUB43.3 bn, largely due to additional
loan-loss provisions for a large borrower - international retailer.
Provision charges amounted to RUB92.1 bn for 4M 2017, down by 17.6% compared
to 4M 2016 due to portfolio quality stabilization. Loan-loss provisions are
2.7 times the overdue loans as of May 1, 2017.
*Net profit before income tax *came at RUB267.0 bn. *Net profit* totaled
RUB207.1 bn, including RUB52.1 bn in April.
*Total assets* in April increased by 1.1% to RUB21.5 trln mainly due to
credit portfolio and securities portfolio growth. FX effect on the growth of
balance sheet items was insignificant.
Disbursements of *corporate loans* amounted to about RUB800 bn in April and
more than RUB2.6 trln from the beginning of the year. The corporate loan
portfolio was up by 1.3% to RUB11.05 trln in April.
The Bank lent over RUB150 bn to *retail clients* in April, or RUB0.5 trln
from the beginning of the year. Retail loan portfolio increased by 0.9% and
exceeded RUB4.4 trln. The mortgage loans remained the main growth driver -
their share in total retail loans was up to 57.8%.
The share of *overdue loans* in total loans decreased by 0.02 p.p. to 2.59%
in April, which is substantially lower than the banking sector's average
(7.0% as of April 1, 2017).
*Securities portfolio* was up by 4.3% to RUB2.14 trln in April as a result
of purchases of government and corporate bonds including European commercial
papers.
*Retail deposits *in April increased by RU75 bn, or by 0.7%. *Corporate
deposits and accounts *were up by RUB54 bn, or by 1.1%. Total customer funds
ending balance was RUB16.5 trln as of May 1, 2017.
CoreTier 1 and Tier 1 *capital* (equal since Sberbank does not have
instruments of additional capital) reached RUB2,498 bn as of May 1, 2017
under preliminary calculations. *Total capital* amounted to RUB3,380 bn as
of May 1, 2017, up mainly due to earned net profit.
Risk-weighted assets decreased by RUB22 bn and came at RUB22.3 trln in
April.
Capital adequacy ratios as of May 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 - 15.1% (minimum adequacy level, required by the Central Bank of
Russia at 8.0%).
Sberbank 4M 2017 Financial Highlights (under RAS, non-consolidated)
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 (Basic Board) in Frankfurt; London, Moscow
Category Code: MSCM
TIDM: SBER
LEI Code: 549300WE6TAF5EEWQS81
Sequence No.: 4173
End of Announcement EquityStory.RS, LLC News Service
571723 10-May-2017
(END) Dow Jones Newswires
May 10, 2017 03:06 ET (07:06 GMT)
