DJ Sberbank: Sberbank RAS 8M 2020: the Bank earned RUB479.7 bn
Sberbank (SBER)
Sberbank: Sberbank RAS 8M 2020: the Bank earned RUB479.7 bn
07-Sep-2020 / 10:09 MSK
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 8 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.
September 7, 2020
Key highlights for August 2020:
- In August, the Bank earned RUB76.6 bn in net profit, ROE came in at
18.4% for the month and ROA - at 3.0%;
- Corporate loan portfolio expanded by 2.5% in August, excluding the
effect of FX revaluation. Retail loan portfolio was up by 2.4%, which was
the most noticeable monthly increase over the past two years, driven
equally by mortgages and consumer lending;
- Total loan production in August was RUB1.6 trn. Loans issued to retail
clients exceeded RUB440 bn;
- Client accounts added 1.3% in August, excluding the effect of FX
revaluation, while corporate accounts increased by 3.3% excluding the
effect of FX revaluation.
Alexandra Buriko, CFO, stated:
"In August, Sberbank had a record loan production since the beginning of the
year that totaled RUB1.6 trn, while the loan portfolio expanded by 2.9%. In
the meantime, loan issuance to retail clients hit a historical high on the
back of recovery in consumer activity, subsidized mortgage programs and
favorable market rates. It is worth underlying that quality of the loan
portfolio remains rather stable. As a result, the Bank delivered ROE for 8
months above 15%."
Comments for 8M 2020:
Net interest income increased by 13.5% as compared to 8M 2019 and amounted
to RUB933.0 bn. The increase owed to lower cost of funding and the effect of
reduced allocations for deposit insurance from the beginning of the year as
well as lending growth.
Net fee and commission income was up by 9.1% to RUB318.9 bn, due to recovery
in transaction activity in bank cards and growth in settlement transactions
along with income from client operations on financial markets and bank
guarantees.
Operating expenses amounted to RUB386.3 bn for 8M 2020, up by 4.2% yoy. The
dynamics in expenses was positively impacted by the pandemic-related
efficiency enhancement program and the levelling of the base effect from
payroll indexation in July 2019. Cost-to-income ratio improved for 8M 2020:
27.2% vs 30.8% a year ago.
Total credit risk charge including fair-value revaluation amounted to
RUB32.0 bn in August. The decline in ruble exchange rate against major
currencies during the month led to additional provisioning on FX-loans that
totaled RUB10 bn without quality deterioration. It was offset by a
respective positive revaluation in trading income with a neutral impact on
the bottom line. For 8M 2020, provisions totaled RUB441.4 bn (half of them
was allocated during the period from March to May this year) vs RUB88.7 bn a
year ago, which owed to the COVID-19 related global distress. Loan coverage
ratio remained intact at 2.2 times overdue loans.
Net profit before income tax for 8M 2020 amounted to RUB593.7 bn. Net profit
came in at RUB479.7 bn.
Total assets increased by 1.7% to RUB30.9 trn, driven mainly by loan
portfolio growth. Positive FX revaluation was also supportive. Otherwise,
assets increased by 1.2% adjusted for the FX moves.
The Bank issued RUB1.2 trn to corporate clients in August and RUB8.3 trn for
8M 2020, which was by a quarter higher a year ago. The Bank remains actively
involved in business support initiatives from the state. Under the state
program '2% Loan' launched in June, the Bank approved loans for RUB230 bn.
Corporate loan portfolio amounted to RUB14.9 trn, up by 3.2% for the month
or by 2.5% excluding the effect of FX revaluation.
Loan production to retail clients in August hit a record of RUB441 bn, which
was 1.5 times higher the average monthly loan production before the crisis
and the pandemic. Growth was equally driven by consumer loans and mortgages.
Retail portfolio expanded by 2.4% or RUB182 bn. As of the 1st of September,
the outstanding balance of retail loans exceeded RUB7.8 trn.
The share of overdues in the total loan portfolio remained at 3.3%.
Securities portfolio increased by 0.3% in August, mainly due to purchases of
OFZs and bonds of the Bank of Russia. As of the 1st of September, the
outstanding balance of securities portfolio was RUB3.9 trn.
Client funding increased in August by 1.3%, excluding the effect of FX
revaluation: retail funding was up by 0.3%, while corporate finding added
3.3%. Overall, client funding grew by 3.6% year to date, excluding the
effect of FX revaluation.
Core Tier 1 and Tier 1 capital increased in August by RUB12 bn to RUB4,003
bn. Total capital increased for the month by RUB59 bn, due to the net profit
for the period. Total capital was negatively impacted by securities
revaluation and reduction 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)".
Risk-weighted assets increased by 2.8% or RUB0.8 trn in August, driven by
loan portfolio expansion, macro add-ons applicable to newly issued retail
loans and settlements with international payment systems.
Capital, RUB 1 Sep'20* 1 Aug'20 1 1 Sep'20*/
bn Sep'20
*/
1 Jan'20 1 Jan'20
1
August
'20
Core Tier 1 4,003 3,991 0.29% 3,300 21.3%
capital N1.1
Tier 1 capital 4,003 3,991 0.29% 3,300 21.3%
N1.2
Total capital 4,704 4,645 1.29% 4,568 3.0%
N1.0
Capital
adequacy
ratios, %
Core Tier 1 13.07% 13.40% -0.32 10.51% 2.56 pp
capital N1.1, pp
min 4.5%
Tier 1 capital 13.07% 13.40% -0.32 10.51% 2.56 pp
N1.2, min 6.0% pp
Total capital 15.34% 15.57% -0.22 14.52% 0.82 pp
N1.0, min 8.0% pp
Risk-weighted 30,667 29,840 2.77% 31,470 -2.6%
assets, RUB bn
* preliminary calculations
Sberbank Financial Highlights for 8M 2020 (under RAS, non-consolidated)
ISIN: US80585Y3080, RU0009029540, RU0009029557, US80585Y4070
Category Code: MSCM
TIDM: SBER
LEI Code: 549300WE6TAF5EEWQS81
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 83568
EQS News ID: 1127939
End of Announcement EQS News Service
(END) Dow Jones Newswires
September 07, 2020 03:09 ET (07:09 GMT)
