DJ Sberbank: Sber earned RUB721.6 bn (X1.8) for 7M 2021 (RAS)
Sberbank (SBER)
Sberbank: Sber earned RUB721.6 bn (X1.8) for 7M 2021 (RAS)
06-Aug-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 7 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.
August 6, 2021
Key highlights for July:
-- SberBank earned a record net profit of RUB126.8 bn, including the result of the sale of shares of the parent
company and debt of the Eurocement Group.
-- ROE reached 30.3%, and ROA increased to 4.2%.
-- The combined volume of loan originations to corporate and retail clients exceeded RUB1.7 trn. As a result, the
corporate loan portfolio increased by 1.3%, while retail loan book grew by 2.0% driven by mortgages and consumer
unsecured lending.
-- Retail client funding grew by 0.6%, or by RUB96 bn, in July.
Alexandra Buriko, CFO, stated:
"We have successfully recovered a problem loan to the Eurocement Group in July, which had a positive impact on our
financial results and reduced the share of overdue loans by 1pp to 2.2%. Furthermore, we continued to actively support
our clients and the recovery of the Russian economy. We increased our corporate portfolio by 1.3%. Strong momentum
remained on the retail side as well: the amount of cash loan origination to individual clients reached a record, while
the mortgage book increased by 2%, despite the change in the terms of the state support program. For 7 months of 2021,
Sberbank earned RUB721.6 bn in net profit and showed a return on equity of over 25%."
Comments for 7M 2021:
Net interest income increased by 11.8% as compared to 7M 2020 and amounted to RUB905.1 bn. This growth was due to
working assets expansion: loans and securities portfolio.
Net fee and commission income increased by 17.0%, as compared to the same period a year ago, to totaled RUB320.8 bn.
Growth was driven by banking cards transactions and acquiring. The share of free transfers between retail clients
continued to increase, and reached 92% by the end of July. Such and achievement to an extent was a result of the
growing popularity of subscriptions among clients, the number of which exceeded 2.9 mn by the end of July.
Operating expenses were up by 9.5%, as compared to 7M 2020, and amounted to RUB369.2 bn. The growth in operating
expenses in July was related to the regular revision of employee salaries, as well as the calendarization of expenses.
Cost-to-Income ratio came in at 27.9%.
Total provision charge including fair-value revaluation totaled RUB63.4 bn for 7M 2021, which was 6.5 times lower than
the charge a year ago, when the Bank made significant provisions on the back of worsening macro environment and the
pandemic constraints. In July 2021, Sber sold the shares and debt of the Eurocement Group, as a result of which the
share of overdue loans in total loan portfolio came down from 3.2% to 2.2%. Loan-loss provisions exceeded the amount of
overdue loans by 2.9 times.
Net profit before income tax for 7M 2021 increased 1.8 times, as compared to the same period a year ago, and amounted
to RUB890.8 bn. Net profit increased 1.8 times, and amounted to RUB721.6 bn.
Total assets in July increased by 2.5% to about RUB35.8 trn.
The Bank issued RUB1.25 trn in loans to corporate clients in July, or about RUB7.3 trn for 7M 2021. The corporate loan
portfolio was up by 1.3% to RUB15.9 trn as of August 1, 2021, mainly from Ruble lending.
Loan production to retail clients was in the amount of RUB485 bn in July, including a record amount of consumer
unsecured loans, RUB 257 bn, on the back of peak vacation season, as well as thanks to fast and convenient services in
digital channels. The mortgage issuance was also strong, though showing signs of a slowdown on the back of the changes
in the terms of the state subsidy program; RUB228 bn were issued in mortgages in July. Total retail portfolio was up by
2.0% for the month to reach RUB9.7 trn as of August 1, 2021.
The securities portfolio was up by 0.5% to RUB5.2 trn in July, mainly from federal bonds.
Retail client funding increased by 0.6% in July to RUB16.1 trn from inflows of USD and Ruble funds. The ending balances
of the escrow accounts continued to grow, supported by high volumes of mortgage lending, and were RUB1.2 trn as of
August 1, 2021.
Corporate client funding in July came down by 1.4%, or by RUB112 bn, in the settlement accounts, to reach almost RUB7.9
trn.
Core Tier 1 and Tier 1 capital changed insignificantly in July to reach RUB3,826 bn and RUB3,976 bn respectively.
Total capital in July increased by RUB124 bn, or by 2.6%, mainly due to earnings for the period.
The CET1 and T1 capital ratios were 11.68% and 12.14% respectively as of August 1, 2021. The calculation of the ratios
does not include the net profit earned during the period between January and July 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 July increased by 2.4%, or by RUB769 bn, mainly from loan portfolio growth.
1 Aug21* / 1 Aug21*/
Capital, RUB bn 1 Aug21* 1 Jul21 1 Jan21
1 Jul21 1 Jan21
Core Tier 1 capital N1.1 3 826 3 846 -0.52% 3 581 6.83%
Tier 1 capital N1.2 3 976 3 996 -0.50% 3 731 6.56%
Total capital N1.0 4 846 4 722 2.62% 4 661 3.98%
Capital adequacy ratios, %
Core Tier 1 capital N1.1, min 4.5% 11.68% 12.02% -0.34 pp 11.19% 0.49 pp
Tier 1 capital N1.2, min 6.0% 12.14% 12.49% -0.35 pp 11.66% 0.48 pp
Total capital N1.0, min 8.0% 14.78% 14.75% 0.03 pp 14.54% 0.24 pp
Risk-weighted assets, RUB bn 32 794 32 025 2.40% 32 042 2.35%
* preliminary calculations
Sberbank Financial Highlights for 7 months 2021 (under RAS, non-consolidated) -----------------------------------------------------------------------------------------------------------------------
ISIN: US80585Y3080, RU0009029540, RU0009029557, US80585Y4070 Category Code: MSCM TIDM: SBER LEI Code: 549300WE6TAF5EEWQS81 Sequence No.: 119342 EQS News ID: 1224557 End of Announcement EQS News Service -------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
August 06, 2021 03:00 ET (07:00 GMT)
