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Sberbank (SBER)
Sberbank: Sberbank releases Financial Highlights for 10M 2017 (under RAS;
non-consolidated)
08-Nov-2017 / 08:09 CET/CEST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer / publisher is solely responsible for the content of this
announcement.
Sberbank releases Financial Highlights for 10M 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.
November 8, 2017
Key highlights for October 2017:
? In October, the Bank earned net profit of RUB64.0 bn
? The amount of retail loans issued in October hit a record of RUB227 bn
? In October, the Bank issued exchange-traded bonds worth of RUB40 bn, its
largest issue on record.
Deputy Chairman of Sberbank Alexander Morozov stated:
"The Bank has increased issuances of retail loans by almost a third in the
current year. For a single month in October, the Bank issued retail loans
for the amount of RUB227 bn, including RUB124 bn in mortgages. This enhances
the structure of the working assets, supporting revenue growth and forming a
solid foundation that enables the Bank to achieve long-term strategic
goals".
Comments for 10M 2017:
Net interest income increased by 7.4% compared to 10M 2016 and came at
RUB998 bn, which was mainly due to the decrease in interest rates on
clients' funds and growth of the retail loan portfolio.
Net fee and commission income was up by 14.6% to RUB287 bn, driven largely
by operations with bank cards and bank insurance, which grew 28% and 25%,
respectively.
Operating income before provisions increased by 16.1% compared to 10M 2016,
outpacing operating expenses for the same period by a significant margin of
10.6 p.p. Growth in operating expenses by 5.5% owed to introduction of
accrual approach to spread costs more evenly through the year starting from
2017 along with wage indexation. Excluding payroll costs, operating expenses
fell 1.5% or RUB2.6 bn as compared to 10M 2016, thus evidencing cost
containment incentives run in the Bank. Cost-to-Income ratio stood at 30.1%
for 10M 2017, an improvement of 3.0 pp as compared to 10M 2016.
Provision charges totaled RUB13 bn in October and amounted to RUB261 bn for
10M 2017, which is 6.2% higher as compared to 10M 2016. As of November 1,
2017, the loan-loss provisions are 2.6 times the overdue loans.
Net profit before income tax came at RUB699 bn. Net profit totaled RUB560
bn, including RUB64.0 bn in October.
Total assets increased 0.8% and exceeded RUB22.5 trln in October, driven
mainly by customer loan portfolio growth.
The Bank granted over RUB0.8 trln in loans to corporate clients in October
or total over RUB8.5 trln from the beginning of the year, which is 21%
higher than in 10M2016. Corporate loan portfolio increased by 0.4% to over
RUB11.9 trln in October.
The Bank granted RUB227 bn in loans to retail clients in October, which was
the largest ever issued for a month. Mortgage lending was the key driver,
where issuance reached RUB124 bn in October. The total amount of retail
loans granted for 10M 2017 was over RUB1.6 trln, or 31% more than in
10M2016. Retail loan portfolio expanded 2.0% to RUB4.74 trln in October.
The share of overdue loans as percentage of total remained unchanged at 2.6%
in October. The indicator is substantially lower than the sector average
(8.7% excl. Sberbank as of October 1, 2017).
Securities portfolio remained virtually unchanged in October and stood at
RUB2.45 trln as of November 1. The portfolio consists of 54% government
securities, including those issued by the Bank of Russia, and 39% corporate
bonds.
Customer deposits and accounts increased by 0.6% in October, led by the
corporate segment (up 2.5%). As of November 1, the balance of customer funds
exceeded RUB17.0 trln and accounted for 88% of liabilities.
In October, Sberbank issued exchange-traded bonds worth RUB40 bln for 3
years and 2 months. The bid book was more than twice oversubscribed. More
than three-fourths of the issuance was acquired by individuals.
Core Tier 1 and Tier 1 capital (equal since Sberbank does not have
instruments of additional capital) reached RUB2,685 bn as of November 1,
2017 under preliminary calculations.
Total capital amounted to RUB3,612 bn for this date and retained earnings
were the main source of capital increase.
Risk-weighted assets added RUB308 bn in October to RUB24.7 trln, which was
mainly due to credit portfolio.
Capital adequacy ratios as of November 1, 2017 under preliminary
calculations were:
? N1.1 - 10.9% (minimum adequacy level, required by the Central Bank of
Russia at 4.5%)
? N1.2 - 10.9% (minimum adequacy level, required by the Central Bank of
Russia at 6.0%)
? N1.0 - 14.6% (minimum adequacy level, required by the Central Bank of
Russia at 8.0%).
Sberbank 10M 2017 Financial Highlights (under RAS, non-consolidated)
ISIN: US80585Y3080, RU0009029540, RU0009029557, US80585Y4070
Category Code: MSCH
TIDM: SBER
LEI Code: 549300WE6TAF5EEWQS8
Sequence No.: 4819
End of Announcement EQS News Service
626379 08-Nov-2017
(END) Dow Jones Newswires
November 08, 2017 02:09 ET (07:09 GMT)
