Sberbank RAS 10M 2018: The Bank earned RUB72.8 bn in net profit in October

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Sberbank (SBER) 
Sberbank RAS 10M 2018: The Bank earned RUB72.8 bn in net profit in October 
 
08-Nov-2018 / 08:10 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 2018 (under RAS; 
non-consolidated) 
 
Please note that the numbers are calculated in accordance with Sberbank's 
internal methodology, the numbers for 2018 and 2017 are comparable. 
 
November 08, 2018 
 
             Key highlights for October 2018: 
 
  - The Bank earned RUB72.8 bn in net profit in October; 
 
  - The Bank issued RUB300 bn in loans to retail clients and RUB1 trln to 
  corporate clients in October. The amount of loans issued since the 
  beginning of the year exceeded the amount disbursed for the same period 
  last year by 29%; 
 
  - Net fee and commission income grew by 21% as compared to 10M 2017. 
 
             Deputy Chairman of Sberbank Alexander Morozov stated: 
 
"We keep on developing in line with our plans for the year. Operating income 
 growth over 10% y/y is supported by lending and transactional business. Our 
  retail loan book expanded to RUB6 trln, adding more than RUB1 trln year to 
             date." 
 
             Comments for 10M 2018: 
 
      Net interest income increased by 4.6% compared to 10M 2017 and totaled 
           RUB1,044 bn mostly driven by increasing amount of working assets. 
 
       Net fee and commission income grew by 21.0% to RUB348 bn. The largest 
       contributors to fee income growth were operations with bank cards and 
        acquiring, settlement transactions and fees from insurance products. 
 
   Operating expenses increased by 6.1% y/y, which was slower than growth in 
    operating income before provisions (10.3% y/y). The transition to a more 
       even allocation of accrued expenses throughout the year is under way. 
     Furthermore, the Bank continues the internal reorganization launched in 
    summer to move its subsidiary Sberbank Technologies JSC to Sberbank PJSC 
             without causing any changes to the headcount of Sberbank Group. 
 
Cost-to-income ratio for 10M 2018 improved to 28.9% as compared to 30.1% for 
             the same period a year ago. 
 
 Provision charges for 10M 2018 amounted to RUB229 bn, which was 12.3% lower 
    as compared to the same period a year ago. The charge in October came at 
   RUB10 bn. As of November 1, 2018, loan-loss provisions were 2.7 times the 
             overdue loans. 
 
      Net profit before income tax came at RUB847 bn for 10M 2018, while net 
           profit totaled RUB686 bn, including RUB72.8 bn earned in October. 
 
    Total assets increased by 1.9% in October to RUB25.9 trln, mainly due to 
        loan portfolio growth and funds' allocation with the Bank of Russia. 
 
 The Bank lent RUB1.0 trln to corporate clients in October, and RUB10.5 trln 
 year to date, which was more than the amount lent in the same period a year 
             ago by 23%. Corporate loan portfolio added 0.3% in October. 
 
  The Bank granted almost RUB300 bn in retail loans in October. As a result, 
  the amount of loans issued year to date exceeded RUB2.6 trln, which is 61% 
more than the amount for 10M 2017. Retail loan portfolio expanded by 2.1% in 
  October and by 21.8% year to date. Sberbank market share in retail lending 
             increased by 0.9 pp to 41.4% in January-September. 
 
  The Bank decreased its overdue loans in total loan portfolio from 2.36% to 
   2.34%, which is substantially below the rest of Russian banks (8.1% as of 
             October 1, 2018). 
 
 Securities portfolio decreased by 2.9% due to redemption of CBR bonds along 
             with corporate bonds. 
 
  Client deposits and accounts increased by 0.3% in October and by 6.8% year 
  to date or by 3.3% in real terms. Retail deposits grew by 1.9% in October, 
             while corporate funding reduced by 2.5%. 
 
 Core Tier 1 and Tier 1 capital were merely unchanged in October and totaled 
      RUB3,189 bn under preliminary calculations. Total capital increased to 
    RUB4,125 bn on the back of earned net profit in October. Core Tier 1 and 
         Tier 1 capital adequacy ratios were slightly down as of November 1, 
 reflecting a technical one-off in relation to settlement with international 
             payment systems. 
 
                                  1 1 Jan'18 1 Nov'18  1 Nov'18 
                  1 Nov'18*  Oct'18                 /         / 
                                             1 Oct'18  1 Jan'18 
 
Capital, RUB bn 
Core Tier 1           3,189   3,187    2,638     0.1%     20.9% 
capital N1.1 
Tier 1 capital        3,189   3,187    2,638     0.1%     20.9% 
N1.2 
Total capital         4,125   4,055    3,668     1.7%     12.5% 
N1.0 
Capital adequacy 
ratios, % 
Core Tier 1           11.8%   11.9%    10.7%  -0.1 pp    1.1 pp 
capital N1.1, 
min. 4,5% 
Tier 1 capital        11.8%   11.9%    10.7%  -0.1 pp    1.1 pp 
N1.2, min. 6,0% 
Total capital         15.2%   15.2%    14.9%        -    0.3 pp 
N1.0, min. 8,0% 
Risk-weighted        27,122  26,728   24,689     1.5%      9.9% 
assets, RUB bn 
 
             * preliminary calculations 
 
Attachment 
 
Document title: Table_Financial Highlights_10m 2018 RAS 
Document: http://n.eqs.com/c/fncls.ssp?u=AGMGESXHFY [1] 
 
ISIN:          US80585Y3080, RU0009029540, RU0009029557, US80585Y4070 
Category Code: MSCH 
TIDM:          SBER 
LEI Code:      549300WE6TAF5EEWQS81 
Sequence No.:  6464 
EQS News ID:   742993 
 
End of Announcement EQS News Service 
 
 
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=ebfc2f67d01c03271e47223b711908f1&application_id=742993&site_id=vwd&application_name=news 
 

(END) Dow Jones Newswires

November 08, 2018 02:10 ET (07:10 GMT)