Sberbank (SBER)
Sberbank RAS 11M 2019: the Bank earned RUB74.7 bn in November
06-Dec-2019 / 08:23 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 11M 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.
December 06, 2019
Key highlights for November 2019:
- The Bank earned RUB74.7 bn in November.
- Loans issued to retail clients totaled RUB323 bn, which was the highest
monthly origination for the year.
- On the corporate side, loan issuance hit its highest over the past two
years at RUB1.6 trn.
- Loan portfolio grew by 1.4% for retail clients and by 1.2% for corporate
ones.
Deputy Chairman of Sberbank Alexander Morozov stated:
"Net interest income accelerated in November, driven by lower cost of
funding and growth of the loan portfolio. "Green day" campaign was a strong
highlight of November, with 7 million clients participating and 760K loan
applications submitted. As a result, the Bank granted RUB323 bn of retail
loans in November. The campaign had also positive implications for the
Group's non-interest income. We are well positioned to deliver our targets
for 2019 and optimistic on the Strategy 2020 expectations.
Comments for 11M 2019:
Net interest income increased by 0.3% and exceeded RUB1.1 trln. The dynamics
was affected by increased cost of client funding at the end of 2018 and the
beginning of the current year. However, cost of liabilities keeps on
declining due to Sberbank's initiatives, which is in line with our
expectations.
Fee and commission income growth accelerated further started in summer to
14.9% led by transactional business. Brokerage services are among the
fastest growing segments: the number of brokerage accounts opened with
Sberbank exceeded 1 million with market share over 27%. Net fee and
commission income for 11M 2019 was up by 9.6% to RUB418.8 bn. The dynamics
is affected by accounting for the loyalty program costs and fees paid to
payment systems as the Bank started accruing these expenses evenly from the
beginning of the year.
Operating expenses increased by 9.1%. As compared to 11M 2018, OpEx dynamics
was affected by annual wage increase in July as well as VAT rate increase
from January 1, 2019 and transfer of employees from Sberbank Technologies
JSC to Sberbank PJSC over the second half of 2018. Cost-to-income ratio for
11M 2019 came at 31.9%.
Total provision charge including the fair value revaluation and impairments
related to purchased or originated credit-impaired assets amounted to
RUB14.6 bn in November and RUB118.0 bn year to date, which is half the
amount booked for 11M 2018. This decrease was due to the opposite directions
of FX rate dynamics for comparable periods as well as restructuring of the
Agrokor debt completed in June 2019. As of December 1, loan-loss provisions
were 2.9 times that of the overdue loans.
Net profit before tax grew by 8.3% to over RUB1 trn for 11M 2019. Net profit
increased by 7.3% to RUB814.1 bn.
Total assets were barely changed in November and stood at RUB27.9 trn. In
the meantime, the Bank continued lending expansion in November, which led
combined loan portfolio up by 1.3%.
The Bank granted RUB1.6 trn in loans to corporate clients, which is the
highest issuance over the past two years. Year to date, the Bank originated
RUB10.8 trn in loans to corporate clients. Corporate loan portfolio grew by
1.2% or RUB154 bn in November.
Loan issuance to retail clients was the highest for the year in November at
RUB323 bn and exceeded RUB3 trn year to date. Retail loan portfolio expanded
by 1.4% in November to RUB7.2 trn.
The share of overdue loans improved from 2.24% to 2.21% led by the corporate
segment.
Securities portfolio increased by 3.5% in November on purchases of CBR bonds
along with sovereign Eurobonds and exceeded RUB3.3 trn as of December 1.
Combined client deposits and accounts increased by 2.1% for 11M2019
excluding the impact of FX revaluation: retail accounts were up by 1.8%,
while corporate accounts added 2.6%. Retail accounts grew by 0.1%, while
corporate accounts decreased by 0.7% for the month.
In November, Sberbank issued RUB15 bn of two-year exchange-traded bonds with
a historically low coupon rate of 6.4% p.a. At the same time, November saw
an expiration of EUR1 bn Eurobond of 2014 year with a coupon rate of 3.352%
p.a. Both developments are positive for the net interest income.
Core Tier 1 and Tier 1 capital remained virtually unchanged in November.
Earnings for the period of April-November 2019 will be accounted for in
capital calculation as soon as annual audit is completed. Total capital
increased by RUB64 bn or 1.4% in November, driven mainly by net profit for
the period.
Risk-weighted assets increased in November by RUB177 bn, due to the loan
portfolio expansion.
1 Nov'19 1 Dec'19*/ 1 Jan'19 1 Dec'19*/
1 Dec'19*
Capital, RUB 1 Nov'19 1 Jan'19
bn
Core Tier 1 3 339 3 342 -0.1% 3 178 5.1%
capital N1.1
Tier 1 capital 3 339 3 342 -0.1% 3 178 5.1%
N1.2
Total capital 4 508 4 444 1.4% 4 244 6.2%
N1.0
Capital
adequacy
ratios, %
Core Tier 1 11.05% 11.13% -0.08 pp 11.11% -0.06 pp
capital N1.1,
min. 4.5%
Tier 1 capital 11.05% 11.13% -0.08 pp 11.11% -0.06 pp
N1.2, min.
6.0%
Total capital 14.89% 14.76% 0.13 pp 14.84% 0.05 pp
N1.0, min.
8.0%
Risk-weighted 30 279 30 102 0.6% 28 596 5.9%
assets, RUB bn
* preliminary calculations
Sberbank Financial Highlights for 11M 2019 (under RAS, non-consolidated)
Attachment
Document title: Table_Financial Highlights for 11m2019 RAS
Document: http://n.eqs.com/c/fncls.ssp?u=HYCAJNWMMI [1]
ISIN: US80585Y3080, RU0009029540, RU0009029557, US80585Y4070
Category Code: MSCH
TIDM: SBER
LEI Code: 549300WE6TAF5EEWQS81
OAM Categories: 2.2. Inside information
Sequence No.: 33811
EQS News ID: 930023
End of Announcement EQS News Service
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(END) Dow Jones Newswires
December 06, 2019 02:23 ET (07:23 GMT)
