Sberbank (SBER)
Sberbank: Sberbank releases Financial Highlights for 4 months of 2020 (under
RAS; non-consolidated)
13-May-2020 / 10:34 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 4 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._
May 13, 2020
*Key highlights for April 2020:*
- The Bank granted RUB1 trn in loans, including RUB834 bn to corporate
clients and RUB166 bn to retail clients.
- By the end of April, the Bank restructured RUB80 bn of loans to
corporate clients and approved over RUB70 bn loan restructuring to retail
clients.
- Retail deposits increased by 1.5% (+2.5% excluding negative FX
revaluation).
Deputy Chairman of Sberbank Alexander Morozov stated:
"In April, Sberbank launched new support programs for both corporate and
retail borrowers. As of now, the overall utilization of these programs under
the bank's own and state initiatives has exceeded RUB180 bn. In spite of
significant credit risk builds in April to factor in the worsening macro
outlook for the Russian economy, Sberbank delivered year to date over 15%
return on equity".
*Comments for 4M 2020:*
*Net interest income *increased by 9.6% as compared to 4M 2019 and amounted
to RUB445.5 bn. The increase was driven by lower cost of funding and
expansion of the loan portfolio.
*Net fee and commission income* was up by 8.6% to RUB150.8 bn. Fees income
growth was upheld by increased turnover of settlement transactions and
client transactions on financial markets. In the meantime, growth from
operations with bank cards and acquiring slowed down on the back of subdued
client transactional activity in April.
*Operating expenses *increased by 3.6% as compared to 4M 2019. The
deceleration in cost growth was caused by the launch of cost optimization
program to increase business in response to crisis and pandemic spread as
well as slowdown in business activity following the introduction of
non-working days. *Cost-to-income ratio* for 4M 2020 came in at 26.3% vs
32.3% a year ago.
*Total credit risk charge including fair-value revaluation* amounted to
RUB63.3 bn in April. For 4M 2020 provisions totaled RUB242.1 bn vs RUB9.9 bn
a year ago, which owed to the macro corrections in accordance with IFRS9 to
take into account in April financials the deterioration in macro outlook on
the back of the global distress from COVID-19. This impact was already
factored in the consolidated IFRS financial statements for Sberbank Group in
1Q2020. Loan-loss provisions increased from 2.9 to 3.2 times the overdue
loans as of May 1, 2020.
*Net profit before income tax *was to RUB284.1 bn. *Net profit* amounted to
RUB230.1 bn.
*Total assets* increased by 0.3% to RUB29.7 trn. Excluding negative FX
revaluation, assets were up by 1.7%, mainly due to the corporate loan
portfolio growth.
The Bank lent RU834 bn to *corporate clients* in April and over RUB4 trn
year to date, which is was 22% higher than a year ago. Corporate loan
portfolio expanded by 1.8% in real terms to over RUB14.3 trn.
Loan issuance to *retail clients* in April amounted to RUB166 bn, which was
42% less than on average during 1Q 2020, and was largely the result of the
lockdown. Consumer lending contracted the most (-59%), while mortgage
origination was marginally affected (-9%). Remote channel for transactions
through online-platform DomClick enables to satisfy growing mortgage demand.
In addition, Sberbank offered own benefits to the state-supported privileged
mortgage program by reducing mortgage rate to 6.1%. Repayments outpaced loan
issuances for the first time in 3 years and led to retail portfolio
contraction by 0.4% in April.
The share of *overdues* in the total loan portfolio improved in April from
2.24% to 2.15% as a result of planned measured taken with regards to
corporate overdues.
The outstanding *securities portfolio* balance increased by 1.7 % to RUB3.6
trn in April, mainly due to purchases of OFZs and corporate bonds.
*Client funding* added 0.8% in April excluding FX revaluation: retail
funding increased by 2.5% driven by ruble deposits, whereas corporate
accounts were down by 2.4% mainly from decrease on ruble accounts, which was
for the cost of funding optimization purpose.
*Core Tier 1* and *Tier 1 capital* remained virtually unchanged at RUB3,991
bn.
*Total capital* in April increased by RUB166 bn, including the impact of
positive revaluation of securities portfolio in the amount of RUB88 bn,
increase in profit recognized in equity due to the adjustments provided by
the Bank of Russia Regulation No. 646-P "On the methodology for determining
shareholder equity (capital) of credit institutions (Basel III)" and net
profit for April.
*The risk-weighted assets* contracted in April by RUB 1.9 trn or 6% due to
the reduction in average risk-weight applied to corporate lending as a
result of the updated edition to the Bank of Russia Regulation No. 483-P "On
the methodology for IRB-credit risk assessment".
_1 _1__
_1 __Jan' May
May'2 __20_ __'20
0*/_ */ 1
_1 _ 1 __Jan
May'20 Apr'2 '__20
_Capital, RUB bn_ *_ _1 Apr'__20_ 0_ _
Core Tier 1 capital N1.1 3,991 3,990 0.03% 3,300 20.9%
Tier 1 capital N1.2 3,991 3,990 0.03% 3,300 20.9%
Total capital N1.0 4,692 4,525 3.7% 4,568 2.7%
_Capital adequacy ratios, %_
Core Tier 1 capital N1.1, min 0.77 2.48
4.5% 12.99% 12,22% pp 10.51% pp
0.77 2.48
Tier 1 capital N1.2, min 6.0% 12.99% 12,22% pp 10.51% pp
1.41 0.72
Total capital N1.0, min 8.0% 15.24% 13,83% pp 14.52% pp
_Risk-weighted assets, RUB bn_ 30,796 32,722 -5.9% 31,470 -2.1%
_* preliminary calculations_
Sberbank Financial Highlights for 4M 2020 (under RAS, non-consolidated)
ISIN: US80585Y3080, RU0009029540, RU0009029557, US80585Y4070
Category Code: MSCM
TIDM: SBER
LEI Code: 549300WE6TAF5EEWQS81
Sequence No.: 63394
EQS News ID: 1043287
End of Announcement EQS News Service
(END) Dow Jones Newswires
May 13, 2020 03:34 ET (07:34 GMT)
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