Sberbank (SBER)
Sberbank: RAS 2M 2020: the Bank earned RUB 76.4 bn in February
06-March-2020 / 10:12 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Sberbank releases Financial Highlights for 2 months of 2020 (under RAS;
non-consolidated)
The numbers are calculated in accordance with Sberbank's internal
methodology.
Please note that some minor changes became effective in Sberbank's internal
methodology starting from January 1, 2020. Therefore, the numbers for 2019
have been recalculated to make them comparable.
The effect of subsequent events is excluded from the numbers as of January
1, 2020.
March 6, 2020
Key highlights for February 2020:
- The Bank earned RUB76.4 bn;
- Total loan production hit a record for February, including RUB285 bn to
retail clients and RUB1.2 trn to corporate clients;
- Client deposits and accounts increased by 2.3% for the month.
Deputy Chairman of Sberbank Alexander Morozov stated:
"Real growth of the corporate and retail loan portfolios along with an
increase of fee income led to higher profitability. The start of
implementation of the new IRB models for the credit risk assessment of
mortgages and the introduction of regulatory classification criteria for
project financing were noticeable developments in February. This benefited
our capital adequacy despite the increased volatility on the financial
markets"
Comments for 2M 2020:
Net interest income increased by 10.7% as compared to 2M 2019 and amounted
to RUB216.2 bn. The increase was driven by retail loan portfolio expansion
and gradual decline in the cost of funding.
Net fee and commission income was up by 14.1% to RUB72.3 bn. The largest
contributors to fee income growth were operations with bank cards and
settlement transactions for corporate clients, benefiting from the Bank's
initiatives in 2H2019 to support these business activities.
Operating expenses increased by 8.5% y/y, which owned mainly to expenditures
related to the digital platform: development, licenses, amortization of
equipment. Furthermore, OpEx remains affected by wage increase in July 2019.
Cost-to-income ratio came in at 25.2% vs 29.9% a year ago.
Total credit risk charge including fair-value revaluation amounted to
RUB43.1 bn in February. The charge was noticeably impacted by a weaker
ruble, which was offset by the respective positive revaluation in trading
income and had no impact on the bottom line. For the period 2M 2020,
provisions totaled RUB69.4 bn vs RUB14.6 bn a year ago, which was mainly a
result of the opposite directions in FX dynamics for comparable periods.
Loan-loss provisions were 2.9 times the overdue loans as of March 1, 2020.
Net profit before income tax increased by 9.2% to RUB190.2 bn, while net
profit was up by 8.9% to RUB156.5 bn.
Total assets increased by 1.2% in February to exceed RUB28.0 trn.
The Bank lent RUB1.2 trn to corporate clients in February, which was a
record for the month. The loan portfolio was up by 0.2% adjusted for FX
revaluation and exceeded RUB13.6 trn.
Loan issuance to retail clients in the amount of RUB285 bn was also a record
for February, which was almost by a quarter higher than a year ago. Retail
loan portfolio added 1.0% for the month and came in at RUB7.4 trn.
The share of overdues in the total loan portfolio increased marginally to
2.23%.
Changes in the securities portfolio in February were due to the redemptions
of CBR bonds and purchase of corporate bonds. Meanwhile, the outstanding
balance remained unchanged at RUB3.3 trn.
Client funding increased by 0.7% adjusted for FX revaluation in February:
retail deposits and accounts were up by 0.9% and corporate accounts were up
by 0.3%.
Core Tier 1 and Tier 1 capital remained merely unchanged. Earnings for the
period of April 2019 - February 2020 has not been accounted for in capital
calculation yet and would be reflected upon completion of the audit. Total
capital increased in February by RUB60 bn mainly due to the net profit.
Risk-weighted assets (RWA) decreased by RUB0.3 trn in February. The decrease
was mainly driven by the implementation of new IRB models for credit risk
assessment of mortgages and introduction of regulatory specialized lending
slotting criteria for project financing. At the same time, RWA expanded due
to the loan portfolio growth in nominal terms.
1 Mar'20* 1 Feb'20 1 Mar'20*/ 1
Mar'20*/
1 Jan'20
Capital, RUB 1 Feb'20 1 Jan'20
bn
Core Tier 1 3 306 3 305 0.03% 3 298 0.24%
capital N1.1
Tier 1 capital 3 306 3 305 0.03% 3 298 0.24%
N1.2
Total capital 4 521 4 461 1.35% 4 561 (0.87%)
N1.0
Capital
adequacy
ratios, %
Core Tier 1 10.49% 10.38% 0.11 pp 10.53% (0.04
capital N1.1, pp)
min 4.5%
Tier 1 capital 10.49% 10.38% 0.11 pp 10.53% (0.04
N1.2, min 6.0% pp)
Total capital 14.31% 13.98% 0.33 pp 14.52% (0.21
N1.0, min 8.0% pp)
Risk-weighted 31 583 31 899 (0.99%) 31 404 0.57%
assets, RUB bn
* preliminary calculations
Sberbank Financial Highlights for 2M 2020 (under RAS, non-consolidated)
ISIN: US80585Y3080, RU0009029540, RU0009029557, US80585Y4070
Category Code: MSCM
TIDM: SBER
LEI Code: 549300WE6TAF5EEWQS81
Sequence No.: 50868
EQS News ID: 991241
End of Announcement EQS News Service
(END) Dow Jones Newswires
March 06, 2020 02:12 ET (07:12 GMT)
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