Sberbank (SBER)
Sberbank: RAS 1Q 2020: The Bank earned RUB218.7 bn
07-Apr-2020 / 10:44 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 3 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._
April 7, 2020
*Key highlights for March 2020:*
- The Bank earned RUB62.1 bn;
- Total loan issuance hit a record for March, including RUB315 bn to
retail clients and RUB1.15 trn to corporate clients.
- Corporate loan portfolio expanded by 5.4% or by 0.4% adjusted for
FX-revaluation, the retail loan portfolio increased by 1.1%.
- Client deposits and accounts increased by 0.6% adjusted for
FX-revaluation, with growth both on the corporate and retail sides.
Deputy Chairman of Sberbank Alexander Morozov stated:
"In March Sberbank started rebuilding its operations to cope with new
challenges. We saw a spike in activity in the first half of the month in the
majority of business segments: corporate and retail loan issuance totaled
RUB1.5 trn, acquiring turnover increased noticeably, volumes of FX
conversion transactions were elevated. The number of daily digital users in
Sberbank Online increased by 1 million. Additionally, provisions allocated
in March accounted for an anticipated slowdown in the Russian economy.
Sberbank earned RUB218.7 bn of net profit and delivered 19.4% return on
equity in the first three months of 2020."
*Comments for 1Q 2020:*
*Net interest income *increased by 11.0% as compared to 1Q 2019 and amounted
to RUB331.7 bn. The increase was driven by retail loan portfolio expansion
and a gradual decline in cost of funding.
*Net fee and commission income* was up by 20.3% to RUB119.0 bn. The largest
contributors to fee income growth remain operations with bank cards and
settlement transactions for corporate clients. Fee and commission income was
also supported by a short-term increase in bank cards trading turnover in
the middle of the reporting month.
*Operating expenses *increased by 3.7% showing a deceleration in March
compared to the previous period due to the introduction of a holiday regime
and a slowdown in business activity at the end of the month. *Cost-to-income
ratio* in 1Q2020 came in at 23.1% vs 31.5% a year ago.
*Total credit risk charge including fair-value revaluation* amounted to
RUB109.4 bn in March. The charge was noticeably impacted by the sharp
depreciation of the ruble against major currencies (16% against the US
dollar and euro for the month), which led to the additional FX-loans
provisions over RUB60 bn without deterioration in asset quality. It was
offset by a respective positive revaluation in trading income and had no
impact on the bottom line. For 1Q2020 provisions totaled RUB178.8 bn vs
RUB21.5 bn a year ago. Loan-loss provisions were 2.9 times the overdue loans
as of April 1, 2020.
*Net profit before income tax *increased by 3.4% to RUB270.0 bn. *Net
profit* was up by 0.2% to RUB218.7 bn.
*Total assets* increased by 5.8% to RUB29.7 trn with over half of the
increase driven by positive FXrevaluation. Monthly growth adjusted for
FX-revaluation was 2.2%.
The Bank lent RUB1.15 trn to *corporate clients* in March, which was a
record for the month For 1Q2020 the Bank originated RUB3.2 trn in loans
which is 31% higher y/y. Corporate loan portfolio grew for the month by 0.4%
adjusted for FX-revaluation or about RUB14.4 trn driven by RUB lending.
Loan issuance to *retail clients* in the amount of RUB315 bn was also a
record for March. Year to date the Bank lent over RUB850 bn, which is 20%
higher than a year ago. Retail loan portfolio added 1.1% for the month and
came in at RUB7.5 trn.
The share of *overdues* in the total loan portfolio changed insignificantly
to 2.24%.
The outstanding *securities portfolio* balance increased for the month by
7.4% to RUB3.5 trn mainly due to the acquisition of federal loan bonds,
Russian Eurobonds and corporate bonds. The portfolio growth was also
affected by revaluation of FX-bonds.
*Client funding* showed a positive dynamics in March, due to an earlier
payroll payment following the announcement of a non-working week from March
29 to April 5. Thus, the growth in client funds amounted to 4.7%: corporate
deposits and accounts increased by 7.9%, retail - by 3.1%, and excluding FX
revaluation by 0.7% and 0.5%, respectively.
*Core Tier 1* and *Tier 1 capital* increased by 21% or RUB686 bn due to the
reflection of the net profit for 2-4 quarters of 2019upon completion of the
audit.
*Total capital* in March increased by RUB7 bn mainly due to the net profit.
The negative revaluation of securities in the amount of RUB45 bn negatively
impacted the dynamics of total capital, as well as the decrease in profit
recorded in equity due to adjustments provided by the Bank of Russia
Regulation No. 646-P "On the methodology for determining shareholder equity
(capital) of credit institutions (Basel III)".
_The risk-weighted assets_ were up by RUB 0.6 trn in March due to the loan
portfolio growth, primarily driven by FX revaluation, as well
as the annual recalculation of operational risk according to the data for
2019. At the same time, a significant decrease in risk-weighted assets
occurred as a result of the introduction of the specialized lending slotting
criteria for project financing.
_1 _1 _1
__Apr __Jan' __Apr
__'20 __20_ __'20
*/_ */ 1
_ 1 __Jan
_1 __Mar '__20
__Apr_ '__20 _
_Capital, RUB bn_ _'20*_ _1 __Mar'__20_ _
Core Tier 1 capital N1.1 3 991 3 305 20.8% 3 300 20.9%
Tier 1 capital N1.2 3 991 3 305 20.8% 3 300 20.9%
Total capital N1.0 4 528 4 521 0.2% 4 568 -0.9%
_Capital adequacy ratios, %_
Core Tier 1 capital N1.1, min 1.95 1.85
4.5% 12.36% 10.41% pp 10.51% pp
1.95 1.85
Tier 1 capital N1.2, min 6.0% 12.36% 10.41% pp 10.51% pp
-0.22 -0.53
Total capital N1.0, min 8.0% 13.99% 14.21% pp 14.52% pp
_Risk-weighted assets, RUB bn_ 32 369 31 807 1.8% 31 470 2.9%
_* preliminary calculations_
Sberbank Financial Highlights for 1Q 2020 (under RAS, non-consolidated)
ISIN: US80585Y3080, RU0009029540, RU0009029557, US80585Y4070
Category Code: MSCM
TIDM: SBER
LEI Code: 549300WE6TAF5EEWQS81
Sequence No.: 56992
EQS News ID: 1017219
End of Announcement EQS News Service
(END) Dow Jones Newswires
April 07, 2020 03:44 ET (07:44 GMT)
