DJ Sberbank: Sber reports FY2020 Net Profit of RUB760.3 bn under International Financial Reporting Standards (IFRS)
Sberbank (SBER)
Sberbank: Sber reports FY2020 Net Profit of RUB760.3 bn under International Financial Reporting Standards (IFRS)
04-March-2021 / 10:00 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.
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Sber reports FY2020 Net Profit of RUB760.3 bn under International Financial Reporting Standards (IFRS)
Moscow, March 4, 2021 - Sberbank (hereafter "the Group" or "Sber") released its Annual consolidated IFRS financial
statements (hereafter "the Financial Statements") as at and for the 12 months ended 31 December 2020, with audit report
by AO PricewaterhouseCoopers Audit.
Herman Gref, Chairman of the Executive Board, CEO:
"A year ago we could hardly imagine the challenges we would encounter in 2020: the pandemic, the drop in oil prices,
interruption in operations of certain segments of the economy. In the scope of the joint efforts with the government
and businesses, we became an important player in the collective fight against the consequences of the pandemic: we
immediately organized an anti-crisis control centre, started offering support to retail clients and businesses from the
beginning of the turmoil. During 2020, we issued RUB17.7 trn loans under our own and state programs. We offered our
clients different restructuring and financing options to cope with the crisis.
Sber was able to quickly restore the business once the restrictions were lifted. The launch of a massive costs
optimization program helped us support profitability, and as a result achieve Return on Equity of 16%.
An important milestone of 2020, was the launch of our new brand, Sber, which is a universe of our financial and
non-financial products and services, as well as our new Strategy 2023 that concentrates on building an integrated
ecosystem around a client."
FY 2020 Financial and Operational Highlights:
- The Group net profit reached RUB760.3 bn (-10.0% y/y);
- The Group earnings per ordinary share (EPS) came in at RUB34.36 (-10.9% y/y);
- The Group return on equity (ROE)1 reached 16.1%, and return on assets (ROA)2 was 2.3%;
- The Group gross loans3 exceeded RUB25 trn, up by 15.0% y/y. The retail loan portfolio was up by over 18% to RUB9.3
trn, while the corporate loan portfolio increased to RUB15.7 trn, up by 9.3% excluding the effect of FX revaluation
4;
- Retail funding increased by 17.1% during 2020 (+11.8% excluding the FX revaluation4) to RUB16.6 trn. Corporate
funding increased by nearly 24% (+8.7% excluding the FX revaluation4) to RUB9.1 trn;
- Active retail client base grew by 3 mn during the year to nearly 99 mn;
- Number of monthly active users (MAU) of mobile App Sberbank Online was up by 10.6 mn to 65.3 mn, and the number of
daily active users (DAU) increased by 7.7 mn to 32.4 mn;
- Active corporate client base increased by 200 ths to exceed 2.7 mn, while MAU in digital channels surpassed 2.43 mn
users;
- At year-end 2020, over 16 mn clients were using Sber ID, a unified login that gives access to more than 95 Sber
ecosystem services and partners;
- In 2020 we reshaped our ESG activities. We presented our ESG strategy, outlined our commitment to ESG and
sustainability standards in the Corporate Governance Code, and formed an ESG committee.
- Starting from FY 2020 Sber financial statements include information on the basis of business segments, which gives
a more detailed and complete presentation on Sber operations, products structure and financial results of the
business segments.
4Q 2020 Financial and Operational Highlights:
- The Group net profit reached RUB201.7 bn, down 4.9% as compared to 4Q 2019; the Group earnings per ordinary share
(EPS) came in at RUB9.15;
- The Group return on equity (ROE)1 reached 16.6%, and return on assets (ROA)2 was 2.2%;
- The Group gross loans3 increased by 1.9% during the quarter to exceed RUB25 trn. The retail loan portfolio was up
by 4.8% to RUB9.3 trn, while the corporate loan portfolio increased by 0.2% to RUB15.7 trn, or by 3.5% excluding
the effect of FX revaluation4;
- The asset quality of the loan portfolio improved: the share of Stage 3 and POCI loans was 6.6%, down by 33 bp as
compared to 3Q 2020.
Statement of Profit or Loss Results Highlights
4Q2020/ 4Q2020 12M2020
4Q 4Q 3Q / 12M 12M /
4Q2019
RUB bn, unless stated otherwise 2020 2019 2020 3Q2020 2020 2019 12M2019
%
change % %
change change
Net interest income 426.5 371.0 411.3 15.0% 3.7% 1 1 13.6%
608.2 415.5
Net fee and commission income 158.5 148.3 147.7 6.9% 7.3% 552.6 497.9 11.0%
Other non-interest income / (expense) 5 -7.9 28.7 33.6 -127.5% -123.5% 32.4 108.3 -70.1%
Operating income before provisions 6 577.1 548.0 592.6 5.3% -2.6% 2 2 8.5%
193.2 021.7
Net charge related to change in asset quality: -108.1 -41.2 -85.7 162.4% 26.1% -493.8 -149.5 230.3%
Net credit loss allowance charge for debt financial -84.2 -35.5 -63.3 137.2% 33.0% -412.0 -92.6 344.9%
assets
Negative revaluation of loans at fair value due to -23.9 -5.7 -22.4 319.3% 6.7% -81.8 -56.9 43.8%
change in credit quality
Net loss allowance / provision for credit related commitments 16.1 -6.9 1.9 -333.3% 747.4% 2.7 -8.9 -130.3%
Staff and administrative expenses -242.7 -238.0 -175.5 2.0% 38.3% -759.8 -724.6 4.9%
Net profit from continuing operations 199.0 212.0 265.6 -6.1% -25.1% 751.8 914.8 -17.8%
Profit / (Loss) from discontinued operations 2.7 0.0 5.8 -- -53.4% 8.5 -69.8 -112.2%
Net profit 201.7 212.0 271.4 -4.9% -25.7% 760.3 845.0 -10.0%
Earnings per ordinary share from continuing operations. RUB 9.02 9.86 11.55 -8.5% -21.9% 33.96 41.80 -18.8%
Earnings per ordinary share. RUB
9.15 9.85 11.82 -7.1% -22.6% 34.36 38.55 -10.9%
Total comprehensive income 211.9 234.5 293.6 -9.6% -27.8% 856.1 993.2 -13.8%
Ratios
Return on equity 1 16.6% 19.4% 22.8% -- -- 16.1% 20.5% --
Return on assets 2 2.2% 2.8% 3.2% -- -- 2.3% 3.1% --
Net interest margin 5.34% 5.52% 5.48% -- -- 5.47% 5.38% --
Cost of risk (amortized cost loans) 139 72 bp 111 -- -- 180 49 bp --
bp bp bp
Cost of risk (amortized cost and FV loans) 171 80 bp 143 -- -- 206 74 bp --
bp bp bp
Cost-to-income ratio for the financial business 33.2% 34.9%
Cost-to-income ratio 6 42.1% 43.4% 29.6% -- -- 34.6% 35.8% --
Balance Sheet Highlights
31.12.2020/ 31.12.2020/
RUB bn. unless stated otherwise 31.12.2020 30.09.2020 31.12.2019 30.09.2020 31.12.2019
% change % change
Gross total loans3: 25 008.6 24 546.2 21 749.4 1.9% 15.0%
Corporate loans 15 700.4 15 664.3 13 865.4 0.2% 13.2%
Retail loans 9 308.2 8 881.9 7 884.0 4.8% 18.1%
Securities portfolio 6 557.4 5 687.8 4 350.3 15.3% 50.7%
Assets 36 016.0 35 123.8 29 959.7 2.5% 20.2%
Total deposits: 25 765.7 25 152.1 21 574.4 2.4% 19.4%
Retail deposits 16 641.0 15 759.1 14 209.6 5.6% 17.1%
Corporate deposits 9 124.7 9 393.0 7 364.8 -2.9% 23.9%
Book value per share7. RUB 4.3% 12.6%
223.4 214.2 198.3
Ratios
Net Loans / Deposits ratio (LDR) 90.8% 91.2% 94.4% -- --
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