Sberbank (SBER)
Sberbank RAS 9M 2019: the Bank earned RUB72.1 bn in September
07-Oct-2019 / 09:21 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 9M 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.
October 07, 2019
Key highlights for September 2019:
- In September the Bank earned RUB72.1 bn.
- Net interest income increased by 1.5% compared to September 2018.
- The Bank issued RUB1.15 trn and RUB310 bln of loans to corporate and
retail clients respectively which was a maximum monthly amount issued this
year.
- Retail loan portfolio grew by 1.7% and corporate loan portfolio was up
by 0.7% adjusted for FX revaluation.
- Deposits and accounts of corporate and retail clients adjusted for FX
revaluation added 1.3% and 0.5% respectively.
Deputy Chairman of Sberbank Alexander Morozov stated:
"Return on equity for the first 9 months of the year totaled 22.0% driven by
acceleration of business expansion both on the assets and on the liabilities
side, supported by net interest and fee and commission income growth. The
performance was in line with our expectations."
Comments for 9M 2019:
Net interest income totaled RUB929.2 bn. As compared to 9M 2018, the
dynamics was affected by increased cost of client funding at the end of 2018
and the beginning of the current year. Meanwhile, monthly dynamics of net
interest income was positive due to the gradual decrease in clients' funding
costs. Net interest income in September increased by 1.5% compared to
September 2018 and by 2.6% compared to August 2019.
Fee and commission income growth accelerated to 13.7% driven mainly by
transactional business. Net fee and commission income for 9M 2019 amounted
to RUB334.5 bn. Growth rate remains affected by specifics of accounting for
the loyalty program costs given that the Bank started accruing these
expenses evenly from the beginning of the year as part of RAS convergence
with IFRS. The impact will largely be absorbed by the year end.
Operating expenses increased by 8.6%. As compared to 9M 2018, OpEx dynamics
was affected by annual wage increase effective in July as well as VAT rate
increase from January 1, 2019 and staff reshuffling from Sberbank
Technologies JSC to Sberbank PJSC over the second half of 2018.
Cost-to-income ratio for 9M 2019 came at 31.3%.
Total provision charges for loans amounted to RUB13.4 bn in September.
Meanwhile, the RUB3.3 bln total income from provision release including
revaluation of loans at fair value was driven by ruble strengthening and
revaluation of FX loan loss reserves.
Total provision charges including revaluation of loans at fair value were
RUB88.9 bn year to date. Lower charges in 2019 were caused by the opposite
directions of the FX rate dynamics for comparable periods as well as
restructuring of the Agrokor debt completed in June 2019. As of October 1,
loan-loss provisions were 2.8 times that of the overdue loans.
Negative result in net gain from FX revaluation and trading operations in
September was fully driven by reclassification of a number of loans at
amortized cost to loans at fair value as well as ruble strengthening without
affecting the Bank's financial result.
Net profit before tax grew by 10.8% to RUB834.0 bn as compared to 9M 2018.
Net profit increased by 8.6% to RUB665.4 bn.
Total assets increased by 0.4% in September. The dynamics of balance sheet
items in September was affected by ruble strengthening. Asset growth
adjusted for currency revaluation was 1.2%.
The volume of loan issuances continued to grow in September. The Bank lent
RUB1.15 trn to corporate clients in September, which was a maximum monthly
amount issued this year, and RUB7.8 trn year to date. Portfolio growth
adjusted for currency revaluation came at 0.7% or RUB96 bn in September.
Loan issuances to retail clients in September totaled more than RUB310 bn,
which was also the largest monthly volume this year. Retail loan issuances
were RUB2.4 trn year to date. Retail loan portfolio expanded by 1.7% in
September to RUB7.0 trn or more than 35% of the total loans.
Overdue loans decreased by RUB3.2 bn in September led by corporate segment.
The share of overdue loans improved by 0.03 pp to 2.21%.
Securities portfolio decreased by 6.4% in September on repayment of CBR
bonds and came at RUB3.2 trn as of October 1.
Deposits and accounts of corporate and retail clients increased by 1.3% and
0.5% respectively in September excluding foreign currency revaluation
effect. The total amount of client funds totaled RUB20.2 trn for 9 months
2019.
In September the bank issued two-year exchange-traded bonds in the amount of
RUB 25 bln.
Core Tier 1 and Tier 1 capital increased in September by RUB15 bln driven by
decrease of deductions for claims with deferred payments. Total capital grew
by RUB54 bln and was mainly supported by earnings, while its growth slowed
due to additional formation of a prudential reserve.
Risk-weighted assets increased by RUB177 bn in September, mainly driven by
retail loan portfolio expansion.
1 Sep'19 1 Oct'19*/ 1 Jan'19 1 Oct'19*/
1 Oct'19*
Capital, RUB 1 Sep'19 1 Jan'19
bn
Core Tier 1 3,344 3,329 0.43% 3,178 5.22%
capital N1.1
Tier 1 capital 3,344 3,329 0.43% 3,178 5.22%
N1.2
Total capital 4,437 4,384 1.23% 4,244 4.56%
N1.0
Capital
adequacy
ratios, %
Core Tier 1 11.22% 11.24% -0.02 pp 11.11% 0.11 pp
capital N1.1,
min. 4,5%
Tier 1 capital 11.22% 11.24% -0.02 pp 11.11% 0.11 pp
N1.2, min.
6,0%
Total capital 14.85% 14.76% 0.09 pp 14.84% 0.01 pp
N1.0, min.
8,0%
Risk-weighted 29,877 29,700 0.60% 28,596 4.48%
assets, RUB bn
* preliminary calculations
Attachment
Document title: Table_Sberbank Financial Highlights for 9m2019 RAS
Document: http://n.eqs.com/c/fncls.ssp?u=JNJMTUITJR [1]
ISIN: US80585Y3080, RU0009029540, RU0009029557, US80585Y4070
Category Code: MSCH
TIDM: SBER
LEI Code: 549300WE6TAF5EEWQS81
OAM Categories: 2.2. Inside information
Sequence No.: 22562
EQS News ID: 886005
End of Announcement EQS News Service
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=1145b8c3cd6c3d197533b31fa71d1035&application_id=886005&site_id=vwd&application_name=news
(END) Dow Jones Newswires
October 07, 2019 04:13 ET (08:13 GMT)
