Sberbank (SBER)
Sberbank RAS 4M 2019: The Bank earned RUB75.2 bn in April, up 13.5% year
over year
14-May-2019 / 09:09 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 is solely responsible for the content of this announcement.
Sberbank releases Financial Highlights for 4M 2019 (under RAS;
non-consolidated)
Please note that the numbers are calculated in accordance with Sberbank's
internal methodology.
Also note that some changes became effective in the Russian accounting
standards in 2019 as part of convergence with IFRS, including transition to
IFRS 9.
May 14, 2019
Key highlights for April 2019:
- The Bank earned RUB75.2 bn in April, up 13.5% year over year;
- Loan issuance to retail clients exceeded RUB280 bn; retail portfolio
expanded by 1.7% to RUB6.5 trn, reaching 33.5% of total loan portfolio;
- Retail deposits grew by 2.8% to over RUB13.2 trn;
- Overdue loans decreased by RUB63.9 bn, which was partially due to
restructuring of the Agrokor debt.
Deputy Chairman of Sberbank Alexander Morozov stated:
"We earned a record net profit in April in the amount of RUB75.2 bn, as net
interest income gathered momentum and quality of our loan portfolio
improved. April performance was in line with our expectations. An increasing
share of retail lending in our loan portfolio remains a major long-term
driver of sustainably high return on equity, which stood at 22.3% for 4M
2019."
Comments for 4M 2019:
Net interest income growth accelerated as was largely expected - up by 0.6%
y-o-y to RUB406.3 bn. Meanwhile, monthly dynamics y-o-y accelerated to 4.8%.
Net fee and commission income was up by 7.9% to RUB138.8 bn, driven mainly
by operations with bank cards and settlement transactions. As part of
convergence with IFRS, starting from 2019 the Bank changed the methodology
of fees and commission accounting that affected the timing of their
recognition and will be largely absorbed by year end.
Operating expenses increased by 9.7%. OpEx dynamics in 1H2019 remains
affected by staff reshuffling from Sberbank Technologies JSC to Sberbank
PJSC that took place in the second half of 2018, as well as VAT rate
increase from January 1, 2019. Cost-to-income ratio came at 32.2%.
Restructuring of the Agrokor debt led to provision release in April in the
amount of RUB11.2 bn. Provision charges totaled RUB14.2 bn for 4M 2019. As
of May 1, loan-loss provisions were 2.9 times that of the overdue loans.
Impairment of loans at fair value amounted to RUB2.8 bn in 4M 2019.
Net profit before tax grew by 12.0% to RUB370.0 bn for 4M 2019. The Bank
made a final tax payment based on the taxable 1Q 2019 profit, in accordance
with the Russian legislation, that had a one-off impact on tax expenses. In
the meantime, effective tax rate for 4M was 20.7% vs 20.6% for the same
period a year before. Net profit increased by 11.9% to RUB293.4 bn.
Total assets increased by 1.0% in April to over RUB27.5 trn, led by retail
lending and securities.
The Bank lent RUB850 bn to corporate clients in April and RUB3.3 trn in 4M
2019. Corporate loan portfolio decreased by 1.5% in April to RUB12.9 trn.
Loan issuance to retail clients exceeded RUB280 bn in April and amounted to
about RUB1.0 trn year to date. Retail loan portfolio grew in April by 1.7%
to RUB6.5 trn.
Overdue loans decreased in April by RUB63.9 bn, given among other factors
restructuring of the Agrokor debt. The share of overdue loans in corporate
portfolio decreased from 2.36% to 1.89%, while overdues in the total
portfolio were down from 2.45% to 2.13%, which is substantially lower than
the banking sector's average (8.9% excl. Sberbank as of April 1, 2019).
Securities portfolio grew in April by 4.6% to around RUB3.3 trn, largely due
to purchases of short-term commercial papers and OFZs.
Client deposits and accounts added RUB359 bn or 2.8% in April, offsetting
the outflows from corporate accounts in the amount of RUB231 bn or 3.2%.
Combined client funding grew by 0.6% in April to over RUB20.2 bn.
Core Tier 1 and Tier 1 capital remained virtually unchanged in April. Total
capital increased by RUB60 bn.
Risk-weighted assets increased by RUB274 bn driven by retail lending
expansion and securities portfolio growth.
1 Apr'19 1 May'19*/ 1 Jan'19 1 May'19*/
1 May'19*
Capital, RUB 1 Apr'19 1 Jan'19
bn
Core Tier 1 3,476 3,475 0.03% 3,178 9.4%
capital N1.1
Tier 1 capital 3,476 3,475 0.03% 3,178 9.4%
N1.2
Total capital 4,347 4,287 1.4% 4,244 2.4%
N1.0
Capital
adequacy
ratios, %
Core Tier 1 11.76% 11.86% -0.11 pp 11.11% 0.65 pp
capital N1.1,
min. 4,5%
Tier 1 capital 11.76% 11.86% -0.11 pp 11.11% 0.65 pp
N1.2, min.
6,0%
Total capital 14.70% 14.64% 0.06 pp 14.84% -0.14 pp
N1.0, min.
8,0%
Risk-weighted 29,564 29,291 0.9% 28,596 3.4%
assets, RUB bn
* preliminary calculations
Attachment
Document title: Financial Highlights - Table
Document: http://n.eqs.com/c/fncls.ssp?u=IWFLUKSCRN [1]
ISIN: US80585Y3080, RU0009029540, RU0009029557, US80585Y4070
Category Code: MSCH
TIDM: SBER
LEI Code: 549300WE6TAF5EEWQS81
OAM Categories: 2.2. Inside information
Sequence No.: 8614
EQS News ID: 810773
End of Announcement EQS News Service
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May 14, 2019 03:10 ET (07:10 GMT)
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