DJ Sberbank reports 2Q 2021 Net Profit of RUB325.3 bn under International Financial Reporting Standards (IFRS)
Sberbank (SBER)
Sberbank reports 2Q 2021 Net Profit of RUB325.3 bn under International Financial Reporting Standards (IFRS)
29-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 reports 2Q 2021 Net Profit of RUB325.3 bn under International Financial Reporting Standards (IFRS)
Moscow, July 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 6 months ended 30 June 2021, with report on review
by AO PricewaterhouseCoopers Audit.
Alexandra Buriko, CFO, stated:
"The results of the first half of 2021 reflect the rapid recovery of the Russian economy and our leading position on
the financial markets. We earned RUB629.8 bn in net profit and achieved a return on equity above 25%.
In the second quarter, we saw high consumer and transactional activity and improved dynamics in corporate lending. The
Sber Group operating income before provisions increased by 22.8% in the reporting quarter. We ramped up our banking
business with a noticeable improvement in the asset quality of our loan portfolio. Retail lending remains the main
driver: in the second quarter of 2021, the retail loan portfolio grew by 7% and exceeded RUB10 trn.
Our payment business continued to accelerate: operating income in the first half of the year increased by 24.1% y/y due
to the growth in the share of cashless turnover and transactional activity. Risk insurance and Wealth management
segments also demonstrated high growth rates.
Non-financial business scales fast on the back of unified elements usage and the core technological platform. The
revenue of the segment tripled for the first half of the year and exceeded RUB74 bn.
The business dynamics for the first half of the year have formed a solid ground for a more ambitious return on equity
forecast of over 22%."
Sber key financial and operating highlights for the reporting period
- The Group net profit1 reached RUB629.8 bn for 1H 2021 (+119.3% y/y), and RUB325.3 bn for 2Q 2021 (+95.1% y/y);
- The Group earnings per ordinary share (EPS) 1 came in at RUB28.54 for 1H 2021 (+113.3% y/y), and RUB14.34 for 2Q
2021 (+84.3% y/y);
- The Group return on equity (ROE) 2 for 1H 2021 reached 25.3% (+12.8 pp y/y), for 2Q 2021 reached 25.8% (+11.5 pp y/
y);
- The retail loan portfolio exceeded RUB10 trn, up by 7.0% for 2Q 2021, or up by 11.2% for 1H 2021;
- The Group net fee and commission income increased by 30.9% y/y in 2Q 2021 to RUB157.1 bn, or to RUB291.4 bn for 1H
2021 (+18.3% y/y);
- The asset quality of the loan portfolio improved substantially in 2Q 2021 in all key segments;
- Revenues of the Non-financial business segment for 1H 2021 tripled y/y to RUB74.7 bn;
- The new multi-category marketplace SberMegaMarket was launched in 2Q 2021; Sber ID and SberPay services became
available to customers, as well as the option to purchase goods with SberSpasibo loyalty program bonuses;
- The number of users of SberPrime subscriptions exceeded 1.5 mn. An upgraded subscription, SberPrime+, was launched
in April. It combines both financial and non-financial services of Sber ecosystem.
Sber key metrics of client activity
30.06.2021 30.06.2021
mn, unless stated otherwise 30.06.2021 31.03.2021 31.12.2021 / /
31.03.2021 31.12.2020
Number of active retail clients 101.5 100.6 100.5 0.9 0.9
Number of monthly active users (MAU) of mobile App Sberbank 68.9 67.2 65.3 1.7 3.6
Online
Number of daily active users (DAU) of mobile App Sberbank Online 33.9 33.2 32.4 0.7 1.5
Number of active corporate clients 2.9 2.9 2.7 - 0.2
Number of monthly active corporate users (MAU) in digital 2.4 2.4 2.3 - 0.1
channels - Active retail client base exceeded 101 mn, while active corporate client base reached 2.9 mn; - Number of monthly active users (MAU) of mobile App Sberbank Online was up by 1.7 mn to 68.9 mn, and the number of
daily active users (DAU) increased by 0.7 mn to 33.9 mn; - The number of users of the loyalty program Spasibo increased by 3 mn to exceed 50 mn clients. - About 23 mn clients (+4 mn in 2Q 2021) are using Sber ID, a unified login that gives access to 118 services of Sber
ecosystem and partners, which creates a seamless client journey. - The number of monthly active users (MAU) of the virtual assistant Salut reached almost 6 mn by the end of 2Q 2021.
Statement of Profit or Loss results overview
Net interest income was up by 10.3% y/y in 2Q 2021 to RUB439.5 bn. The growth was attributable to increasing volumes of the working assets (see Banking business segment). Net interest income in 1H 2021 increased by 11.8% y/y to RUB861.0 bn.
The Group net fee and commission income increased by 30.9% y/y in 2Q 2021 to RUB157.1 bn, driven by growth in operations with bank cards and income from acquiring on the back of high client transactional activity (see Payments business). The high growth dynamics were also influenced by the low-base effect of last year due to COVID-related restrictive measures. The net fee and commission income growth in 1H 2021 was 18.3% y/y to RUB291.4 bn.
The Group operating expenses were up by 17.2% y/y to RUB201.6 bn in 2Q 2021, due to growth of the non-financial businesses expenses, the low-base effect of last year and the calendarization effect. The operating expenses growth in 1H 2021 was 12.2% y/y to RUB381.5 bn. The pace of operating expenses growth of the financial business was 8.6% y/y in 1H 2021, and 11.9% y/y in 2Q 2021.
The Group total headcount was down by 2.1 ths employees to 276.1 ths for the quarter. At the same time, the number of employees engaged in the development of the non-financial services continued to increase to 19.1 ths by the end of the reporting period.
The Group Cost-to-Income ratio 4 was 30.0% in 2Q 2021, and 29.7% for 1H 2021, improving by 1.5pp y/y.
The combined provision charge including revaluation of loans at fair value amounted to RUB27.2 bn for 2Q 2021, and RUB52.7 bn for 1H 2021. The combined Cost of Risk was 43 bp in 2Q 2021, and was 42 bp for 1H 2021, thanks to the settlement of a number of large problem loans and substantial improvement in the asset quality of the loan portfolio.
2Q2021/ 2Q2021/ 6M2021/
RUB bn, unless 2 Q 2 Q 1 Q 2Q2020, 6 M 6 M
stated otherwise 2021 2020 2021 % change 1Q2021, 2021 2020 6M2020,
% change % change
Net interest 439.5 398.5 421.5 10.3% 4.3% 861.0 770.4 11.8%
income
Net fee and 157.1 120.0 134.3 30.9% 17.0% 291.4 246.4 18.3%
commission income
Other non-interest
income / (expense) 35.4 -4.0 33.4 na 6.0% 68.8 5.1 1249.0%
5
Operating income 1 1
before provisions 632.0 514.5 589.2 22.8% 7.3% 221.2 021.9 19.5%
5
Net charge related
to change in asset -27.2 -132.9 -25.5 -79.5% 6.7% -52.7 -300.0 -82.4%
quality 6
Net loss allowance
/ (provision) for -6.9 -0.7 -6.5 885.7% 6.2% -13.4 -15.3 -12.4%
credit related
commitments
Staff and
administrative -201.6 -172.0 -179.9 17.2% 12.1% -381.5 -340.0 12.2%
expenses
Net profit from
continuing 317.6 166.7 304.8 90.5% 4.2% 622.4 287.2 116.7%
operations
Profit / (Loss)
from discontinued 7.7 0.0 -0.3 na na 7.4 0.0 na
operations
Net profit 325.3 166.7 304.5 95.1% 6.8% 629.8 287.2 119.3%
Earnings per
ordinary share
from 13.98 7.78 14.20 79.7% -1.5% 28.20 13.38 110.8%
continuing
operations. RUB
Earnings per
ordinary share. 14.34 7.78 14.19 84.3% 1.1% 28.54 13.38 113.3%
RUB
Total
comprehensive 307.8 229.1 230.0 34.4% 33.8% 537.8 350.6 53.4%
income
Key financial
coefficients
Return on equity 25.8% 14.3% 24.7% -- -- 25.3% 12.5% --
2
Return on assets 3 3.4% 2.1% 3.4% -- -- 3.4% 1.8% --
Net interest 5.22% 5.61% 5.18% -- -- 5.20% 5.56% --
margin
Cost of risk 226 259
(amortized cost 43 bp bp 42 bp -- -- 42 bp bp --
and FV loans)
Cost-to-income
ratio - banking 30.0% 31.8% 29.3% -- -- 29.7% 31.2% --
business 4
Book value per 227.4 232.6 223.4 -2.2% 1.8% -- -- --
share 7. RUB
Key segments overview
Banking business - Operating income before provisions for the Banking business segment increased by 15.3% y/y to RUB484.6 bn in 2Q
2021. - Profit before tax increased by 95.3% y/y to RUB308.5 bn in 2Q 2021.
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