Sberbank (SBER)
Sberbank RAS 6M 2019: The Bank earned RUB75.1 bn. Return on Equity (ROE)
came at 22.2% for 6M 2019
05-Jul-2019 / 09:23 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 6M 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.
July 05, 2019
Key highlights for June 2019:
- The Bank earned RUB75.1 bn. Return on Equity (ROE) came at 22.2% for 6M
2019;
- The FX adjusted inflow of retail clients' funds exceeded RUB109 bn in
June and reached RUB331 bn for 6M 2019;
- The Bank reduced the amount of corporate overdue loans by RUB7.7 bn;
- The Bank issued more than RUB250 bn loans to retail clients; Retail loan
portfolio increased by 1.3%;
- The Bank paid a record dividend for 2018 in the amount of RUB361 bn,
which led to a temporary decrease in capital adequacy ratio.
Deputy Chairman of Sberbank Alexander Morozov stated:
"For the first half of the year the bank earned RUB444.2 bn up by 11.7% year
over year, posting 22.2% ROE. Analyzing the current results, it is necessary
to take into account the significant impact of changes in the accounting
methodology for interest income related to the implementation of IFRS 9, as
well as changes in the methodology for recognition of net fee and ?ommission
income and operating expenses ensuring gradual convergence with IFRS.
Further optimization of the cost of funds and the structure of the working
assets will allow the bank to achieve the return on equity target for the
year."
Comments for 6M 2019:
Net interest income decreased by 0.8% to RUB615.1 bn compared to 6M 2018.
The growth of the loan portfolio by 5.5% y-o-y substantially mitigated the
negative effect of an increase in cost of funding.
Fee and commission income grew by 12.9% driven by transactional business.
Net fee and commission income was up by 6.6% to RUB212.3 bn. The slowdown in
June was due to the loyalty program costs recognition. 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. This effect will be largely absorbed by year end.
Operating expenses increased by 8.4%. OpEx dynamics remains affected by the
VAT rate increase from January 1, 2019, as well as the transfer of IT
specialists from JSC Sberbank Technologies to PJSC Sberbank that took place
in the second half of 2018. Should we exclude these factors, OpEx growth
would have slowed to 1.5%. Cost-to-income ratio came at 31.6%.
Provision charges amounted to RUB1.1 bn in June including the effect of
provisions release as part of the Agrokor debt restructuring completion. The
charge for 6M 2019 came at RUB30.9 bn, which is RUB100.7 bn less than a year
ago, caused by the opposite direction in FX rate dynamics for comparable
periods. As of July 1, loan-loss provisions were 2.8 times that of the
overdue loans. Positive revaluation of loans at fair value amounted to
RUB3.6 bn for 6M 2019.
Net profit before tax grew by 12.2% compared to 6M 2018 to RUB566.3 bn. Net
profit increased by 11.7% to RUB444.2 bn.
Total assets remained at RUB27.5 trn. The Bank issued RUB787 bn loans to
corporate clients in June and RUB4.8 trn in 1H 2019. Corporate loan
portfolio decreased by 1.5% in June to RUB12.67 trn.
The Bank issued more than RUB250 bn loans to retail clients in June and
around RUB1.5 trn year to date, which is 2.7% higher than in 1H 2018. Retail
loan portfolio went up by 1.3% in June to RUB6.67 trn or 34.5% of total loan
portfolio.
Overdue loans went down by RUB6.4 bn in June due to decrease in overdue
loans to corporate clients. The share of overdue loans in Sberbank's total
loan portfolio amounts to 2.24%, which is substantially lower than the
Russian banking sector's average (9.0% excl. Sberbank as of June 1, 2019).
Securities portfolio increased in June by 5.3% to RUB3.4 trn due to purchase
of OFZ bonds and coupon Bank of Russia bonds.
Retail deposits and accounts increased by 0.4% to RUB13.2 trn in June.
Corporate deposits and accounts went down by 1,4% to RUB7,0 trn, while RUB
denominated corporate deposits were up by RUB52 bn. Total client deposits
remained at RUB20.2 trn as of June.
In June Sberbank repaid Eurobonds in the amount of USD1 bn. The share of
wholesale funding in total liabilities of the Bank decreased below 1.5%.
Core Tier 1 and Tier 1 capital decreased in June due to payment of dividends
for 2018 partially compensated by recognition of audited 1Q 2019 net income
as Core Tier 1 capital component. 2Q 2019 net income will be included into
Core Tier 1 capital after its audit. Total capital was also affected by
dividend payment.
Risk-weighted assets decreased by RUB659 bn in June due to the
implementation of a new regulation #5072-U introduced by the Bank of Russia
for credit risk calculation under IRB (internal ratings-based) approach as
well as decrease in corporate loan portfolio.
1 June'19 1 July'19*/ 1 Jan'19 1 July
1 July'19* 19*/
Capital, RUB 1 June'19
bn 1
Jan'19
Core Tier 1 3,303 3,487 -5.27% 3,178 3.93%
capital N1.1
Tier 1 capital 3,303 3,487 -5.27% 3,178 3.93%
N1.2
Total capital 4,137 4,399 -5.97% 4,244 -2.52%
N1.0
Capital
adequacy
ratios, %
Core Tier 1 11.31% 11.68% -0.37 ?.?. 11.11% 0.20
capital N1.1, ?.?.
min. 4,5%
Tier 1 capital 11.31% 11.68% -0.37 ?.?. 11.11% 0.20
N1.2, min. ?.?.
6,0%
Total capital 14.17% 14.74% -0.57 ?.?. 14.84% -0.67
N1.0, min. ?.?.
8,0%
Risk-weighted 29 189 29 848 -2.21% 28 596 2.08%
assets, RUB bn
* preliminary calculations
Attachment
Document title: Table_Sberbank Financial Highlights for 6m 2019 RAS
Document: http://n.eqs.com/c/fncls.ssp?u=MFMILGCWNW [1]
ISIN: US80585Y3080, RU0009029540, RU0009029557, US80585Y4070
Category Code: MSCH
TIDM: SBER
LEI Code: 549300WE6TAF5EEWQS81
OAM Categories: 2.2. Inside information
Sequence No.: 12501
EQS News ID: 836853
End of Announcement EQS News Service
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=3664e5de408198590afcf7b8368974b6&application_id=836853&site_id=vwd&application_name=news
(END) Dow Jones Newswires
July 05, 2019 03:23 ET (07:23 GMT)
