DJ Sberbank: Sberbank reports 1Q 2021 Net Profit of RUB304.5 bn under IFRS
Sberbank (SBER)
Sberbank: Sberbank reports 1Q 2021 Net Profit of RUB304.5 bn under IFRS
29-Apr-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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Sberbank reports 1Q 2021 Net Profit of RUB304.5 bn under International Financial Reporting Standards (IFRS)
Moscow, April 29, 2021 - Sberbank (hereafter "the Group" or "Sber") has released its interim condensed IFRS financial
statements (hereafter "the Financial Statements") as at and for the 3 months ended 31 March 2021, with report on review
by AO PricewaterhouseCoopers Audit.
Alexandra Buriko, CFO, stated:
"In the first quarter of 2021, the business progressed better than expected: Sber increased the retail loan book to 9.7
trillion Rubles, the transactional business expanded despite the high base of last year, and the revenue of the
non-financial business quadrupled. Moreover, the stabilization of the loan portfolio asset quality allowed significant
reduction of the credit risk cost. As a result, Sber earned 304.5 billion Rubles net profit for the quarter.
The improving customer experience, expansion of the digital services, and integration of a wide range of offerings,
fortified by the technological transformation, have allowed to surpass the milestone of 100 million active retail
customers.
A strong start in 2021 gives us the ground to raise our forecast for the Return on Equity to exceed 20% in the current
year."
1Q 2021 Financial and Operational Highlights:
- The Group net profit reached RUB304.5 bn (+152.7% y/y);
- The Group earnings per ordinary share (EPS) came in at RUB14.19 (+153.4 y/y);
- The Group return on equity (ROE)1 reached 24.3%, and return on assets (ROA)2 was 3.3%;
- Active retail client base exceeded 100 mn;
- Number of monthly active users (MAU) of mobile App Sberbank Online was up by 1.7 mn to 67.2 mn, and the number of
daily active users (DAU) increased by 800 ths to 33.2 mn;
- Active corporate client base exceeded 2.8 mn, while MAU in digital channels exceeded 2.4 mn users;
- The number of SberPrime subscribers was almost 1 mn;
- The number of monthly active users (MAU) of the voice assistant Salut was over 2 mn;
- Over 19 mn clients were using Sber ID, a unified login that gives access to more than 100 services of Sber
ecosystem and partners;
- The number of the participants of the loyalty program Spasibo exceeded 47 mn clients;
- The Group gross loans3 were RUB25.5 trn, up by 2% in 1Q21. The retail loan portfolio was up by 3.9% to RUB9.7 trn,
while the corporate loan portfolio amounted to RUB15.8 trn, up by 0.8%;
- Sber approved the ESG Risk Management Policy as part of Sber ESG transformation, and introduced sustainability
development factors in the management KPIs and in the loan underwriting process.
Statement of Profit or Loss Results Highlights
1Q 1Q 4Q 1Q2021/ 1Q2021/
RUB bn, unless stated otherwise 2021 2020 2020 1Q2020 4Q2020
% %
change change
Net interest income 421.5 371.9 426.5 13.3% -1.2%
Net fee and commission income 134.3 126.4 158.5 6.3% -15.3%
Other non-interest income / (expense) 5 33.4 9.1 -9.2 267.0% -463.0%
Operating income before provisions 6 589.2 507.4 575.8 16.1% 2.3%
Net charge related to change in asset quality: -25.5 -167.1 -108.1 -84.7% -76.4%
Net credit loss allowance charge for debt financial assets -44.2 -138.0 -84.2 -68.0% -47.5%
Positive / (negative) revaluation of loans at fair value due to change in 18.7 -29.1 -23.9 -164.3% -178.2%
credit quality
Net loss allowance / provision for credit related commitments -6.5 -14.6 16.1 -55.5% -140.4%
Staff and administrative expenses -179.9 -168.0 -241.4 7.1% -25.5%
Net profit from continuing operations 304.8 120.5 199.0 152.9% 53.2%
Profit / (Loss) from discontinued operations -0.3 0.0 2.7 -- --
Net profit 304.5 120.5 201.7 152.7% 51.0%
Earnings per ordinary share from continuing operations. RUB 14.20 5.60 9.02 153.6% 57.4%
Earnings per ordinary share. RUB 14.19 5.60 9.15 153.4% 55.1%
Total comprehensive income 230.0 121.5 211.9 89.3% 8.5%
Return on equity 1 24.3% 10.6% 16.6% -- --
Return on assets 2 3.3% 1.5% 2.2% -- --
Net interest margin 5.18% 5.49% 5.34% -- --
Cost of risk (amortized cost loans) 74 bp 251 139 -- --
bp bp
Cost of risk (amortized cost and FV loans) 41 bp 292 171 -- --
bp bp
Cost-to-income ratio - banking business 6 29.3% 30.7% -- -- --
Balance Sheet Highlights
31.03.2020/
RUB bn. unless stated otherwise 31.03.2020 31.12.2020 31.12.2020
% change
Gross total loans 3: 25 498.6 25 008.6 2.0%
Corporate loans 3 15 823.8 15 700.4 0.8%
Retail loans 3 9 674.8 9 308.2 3.9%
Securities portfolio 6 617.4 6 557.4 0.9%
Assets 37 500.4 36 016.0 4.1%
Total deposits: 26 997.6 25 765.7 4.8%
Retail deposits 16 508.1 16 641.0 -0.8%
Corporate deposits 10 489.5 9 124.7 15.0%
Book value per share 7. RUB 232.6 223.4 4.1%
Ratios
Net Loans / Deposits ratio (LDR) 88.4% 90.8% --
Stage 3 + POCI loans / total gross loans at amortized cost 6.8% 6.6% --
Provision coverage of Stage 3 + POCI loans 98.9% 102.8% --
Net interest income increased by 13.3% y/y in 1Q 2021 to RUB421.5 bn.
Interest income was up by 5.8% y/y in 1Q 2021 to RUB617 bn on the back of strong retail lending dynamics. - Retail loan portfolio expanded by 3.9% in 1Q 2021 and the balance came in at RUB9.7 trn. The yield on retail loans
declined by 50 bp to 11.1%, both from the replacements with loans at lower rates, and growing share of mortgages in
total retail portfolio to 56.4%.
- The mortgage portfolio grew by 4.5% in 1Q 2021, benefiting from robust demand for both the state and the bank's
own subsidized mortgage programs which accounted for over 30% of new loan origination.
- The Sber housing platform DomClick enhanced the mortgage lending; the monthly audience increased by 1.2x to
over 14 mn users.
- The models for assessing credit risk of mortgage products were refined using a new generation of AI, which
improved the accuracy of assessing the creditworthiness of clients, and led to portfolio growth while
maintaining stable asset quality.
- Consumer loan portfolio increased by 3.4% in 1Q 2021, boosted by higher demand on the back of favorable market
rates and seasonal promos. The share of consumer lending in digital channels remains high, accounting for 68%
for 1Q 2021.
- Corporate loan portfolio grew by 0.8% in 1Q 2021 to RUB15.8 trn. Adjusted for the impact of the FX revaluation4
, the portfolio was up by 0.2%, primarily from lending in Ruble. The yield on corporate loans was up by 10 bp
to 6.4% for the quarter.
Interest expense, including deposit insurance expenses, decreased by 7.6% y/y in 1Q 2021 to RUB195.5 bn on the back of the reduction in deposit insurance contribution, as well as lower cost of funding as compared to a year ago. - Retail funding decreased by 0.8% in 1Q 2021 to RUB16.5 trn. The ending balance on current accounts remains stable.
The cost of retail funding was unchanged at 3.7%.
- The share of retail current account balances in total retail funding was almost 38% thanks to growing volumes
on the escrow accounts and increased cashless transactions. - Corporate funding was up by 15% in 1Q 2021 to RUB10.5 trn, to an extent, from short-term liquidity management. The
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