DJ Sberbank: Sber earned RUB594.8 bn (X1.8) for 6M 2021 (RAS)
Sberbank (SBER)
Sberbank: Sber earned RUB594.8 bn (X1.8) for 6M 2021 (RAS)
07-Jul-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 releases Financial Highlights for 6 months of 2021 (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, 2021.
Therefore, the numbers for 2020 have been recalculated to make them comparable.
July 7, 2021
Key highlights for June:
- SberBank earned net profit of RUB106.8 bn.
- ROE increased to 27.2%, and ROA came in at 3.7%.
- Retail loan production exceeded RUB0.5 trn. As a result, retail loan portfolio increased by 2.5%, supported by
mortgages.
- Corporate clients were granted RUB1.3 trn in loans, which was the largest monthly amount from the beginning of the
year. Corporate loan portfolio increased by 0.9% excluding the effect of FX revaluation.
- Client funding grew by 2.8% or RUB0.7 trn excluding the effect of FX revaluation.
Alexandra Buriko, CFO, stated:
"Revival in business activity in the first half of 2021 empowered the growth of our loan portfolio and its quality
improvement. We issued over RUB6 trn loans to corporate clients and RUB2.7 trn to retail clients year to date. Focus on
operational efficiency helped us to keep Cost-to-Income ratio at 28%. As a result, we earned RUB594.8 bn in net profit
for the first half of the year, and ROE came in at 24.7%."
Comments for 6M 2021:
Net interest income increased by 11.7% as compared to 6M 2020 and amounted to RUB767.4 bn. This growth was due to
working assets expansion: loans and securities portfolio.
Net fee and commission income totaled RUB271.0 bn, up by 19.1% as compared to the same period a year ago. Growth was
driven by banking cards transactions, including acquiring. Income from the banking cards transactions was up by 33%.
Operating expenses were up by 9.2% as compared to 6M 2020 and amounted to RUB314.1 bn. The dynamics remained influenced
by the low-base effect of the first half of last year due to the subdued business activity as well as smoother
calendarization for OpEx in 2021. Cost-to-Income ratio came in at 28.0%.
Total provision charge including fair-value revaluation totaled RUB71.8 bn for 6M 2021, which was 4.8-times less than
the charge a year ago, when the Bank made significant provisions on the back of worsening macro environment and the
pandemic constraints. In June, provision charge was impacted by the Ruble strengthening vs major currencies, which
contributed RUB9.3 bn. As a result, provision release totaled RUB0.5 trn. Loan-loss provisions stayed stable at 2.2
times that of the overdue loans.
Net profit before income tax for 6M 2021 increased 1.9-times as compared to the same period a year ago, and amounted to
RUB734.5 bn. Net profit increased 1.8-times, and amounted to RUB594.8 bn.
Total assets in June decreased to RUB34.9 trn on the back of Ruble strengthening. The assets growth was 0.1% excluding
the effect of the FX revaluation.
The Bank issued RUB1.3 trn in loans to corporate clients in June, the highest monthly volume since the beginning of the
year. The corporate loan portfolio was up by 0.3% to RUB15.7 trn as of July 1, 2021. When adjusting for the FX
revaluation the growth was 0.9%.
Loan production to retail clients was in the amount of RUB525 bn in June. Total retail portfolio was up by 2.5% for the
month to reach RUB9.5 trn as of July 1, 2021, driven by the mortgages and consumer unsecured lending. The share of
mortgages in the retail portfolio exceeded 59% in June.
The share of overdue loans in total loan portfolio came up by 0.07 pp to 3.2% in June, driven mainly by corporate
loans.
The securities portfolio was down by 0.2% to RUB5.2 trn in June on the back of the reduction of the corporate bonds
portfolio, partly in light of the expirations of a number of issuances.
Retail client funding increased by 0.8% in June, adjusted for FX revaluation, to RUB16 trn. The ending balances of the
escrow accounts continued to grow, supported by high volumes of mortgage lending, and exceeded RUB1.1 trn as of July 1,
2021.
Corporate client funding in June came up by 7.1%, adjusted for FX revaluation, or by RUB0.5 trn, to reach almost RUB8
trn. In June Sber increased Ruble funding from corporate clients, which allowed to reduce the state funding in the
corresponding amount.
In June SberBank raised RUB37 bn from the capital markets by issuing exchange-traded bonds.
Core Tier 1 and Tier 1 capital changed insignificantly in June to reach RUB3,865 bn and RUB4,015 bn respectively.
Total capital in June increased by RUB83 bn, or by 1.8%, mainly due to earnings for the period.
The CET1 and T1 capital ratios were 11.97% and 12.43% respectively. The calculation of the ratios does not include the
net profit earned during the period between January and June 2021 inclusively, until it is audited, as per the CBR
Regulation 646-P on the methodology of determining the amount of capital adequacy of lending institutions (Basel III).
Risk-weighted assets* in June decreased by 0.6% to RUB32.3 trn.
1 Jul21* / 1 Jul21*/
Capital, RUB bn 1 Jul21* 1 Jun21 1 Jan21
1 Jun21 1 Jan21
Core Tier 1 capital N1.1 3 865 3 872 -0.2% 3 581 7.9%
Tier 1 capital N1.2 4 015 4 022 -0.2% 3 731 7.6%
Total capital N1.0 4 723 4 640 1.8% 4 661 1.4%
Capital adequacy ratios, %
Core Tier 1 capital N1.1, min 4.5% 11.97% 11.92% 0.05 p.p. 11.19% 0.78 p.p.
Tier 1 capital N1.2, min 6.0% 12.43% 12.38% 0.05 p.p. 11.66% 0.77 p.p.
Total capital N1.0, min 8.0% 14.61% 14.27% 0.34 p.p. 14.54% 0.07 p.p.
Risk-weighted assets, RUB bn 32 329 32 514 -0.6% 32 042 0.9%
* preliminary calculations
Sberbank Financial Highlights for 6 months 2021 (under RAS, non-consolidated) -----------------------------------------------------------------------------------------------------------------------
ISIN: US80585Y3080, RU0009029540, RU0009029557, US80585Y4070 Category Code: MSCM TIDM: SBER LEI Code: 549300WE6TAF5EEWQS81 Sequence No.: 115665 EQS News ID: 1215947 End of Announcement EQS News Service =------------------------------------------------------------------------------------ Image link: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1215947&application_name=news
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July 07, 2021 03:00 ET (07:00 GMT)
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