DGAP-News: Sberbank of Russia

DGAP-News: Sberbank: Sberbank releases Financial Highlights for 2M 2016 (under RAS; non-consolidated)

Sberbank / Key word(s): Monthly Figures/Monthly Figures

09.03.2016 11:03

Dissemination of a Corporate News, transmitted by EquityStory.RS, LLC - a company of EQS Group AG. The issuer / publisher is solely responsible for the content of this announcement.

---------------------------------------------------------------------------



Sberbank releases Financial Highlights for 2M 2016 (under RAS; non-consolidated)

09.03.16, Moscow

Please note that the numbers are calculated in accordance with Sberbank's internal methodology.

Key highlights for February, 2016: Core revenue demonstrates decent growth: net interest income increased by 73%, net fee and commission income - by 28% compared to the last year. Inflow of clients' funds in February fully offset the seasonal outflow in January. The total inflow of clients' funds exceeded RUB100 bn YTD. Net profit before income tax totaled to RUB35.6 bn vs. RUB14.5 bn in February 2015. Net profit in February 2016 came at RUB31.5 bn vs. RUB7.5 bn in February 2015. Total comprehensive income amounted to RUB52.6 bn in February.

Deputy Chairman of Sberbank Alexander Morozov stated:

Sustainable recovery of net interest income provides for organic capital creation. Furthermore, an additional significant contribution to core equity capital ratio would be 2H 2015 net profit after audit completion.

Comments for 2M 2016:

Net interest income came at RUB169.2 bn, +70% compared to the last year. Interest income increased by 7.9%, mostly driven by the increase in volumes of working assets. Interest expenses decreased by 21.1%, due to the decrease in market rates and the substitution of state funding with clients' funds.

Fee and commission income was up by 35.9% to RUB40.8 bn, mainly driven by transactional business with bank cards and acquiring, cash settlements as well as bank insurance (commissions from which were strong, compared to weak results a year ago given the reduced demand for lending last year).

Net income from FX revaluation and trading operations on capital markets amounted to -RUB5.1 bn compared to RUB17.7 bn for 2M 2015 due to the following factors: specifics in accounting for on-balance and off-balance sides of the SWAP transactions under RAS, specifics in accounting for the transaction of the transfer of Ukrainian borrowers' loans into Ukrainian Eurobonds; overall effect of this transaction on the Bank's financial results was immaterial.

Operating expenses growth came at +0.5%, that was significantly slower than pre-provision operating income growth (+38.7%). The Bank continues to strictly control its operating expenses.

Total provision charges amounted to RUB85.3 bn vs. RUB70.1 bn for 2M 2015. The Bank continues to form loan-loss provisions in-line with the requirements of the Central Bank of Russia. Loan-loss provisions are 1.7 times the overdue loans.

Net profit before income tax came at RUB67.0 bn vs. RUB24.5 bn for 2M 2015. Net profit totaled RUB59.8 bn vs. RUB11.3 bn.

Total comprehensive income amounted to RUB78.7 bn. In addition to the Net profit, this item includes the net income from revaluation of financial assets available-for-sale and held-to-maturity.

Assets in February 2016 decreased by 0.3% mainly due to the contraction of the corporate loan portfolio.

The Bank lent about RUB440 bn to corporate clients in February. The loan portfolio ending balance decreased by RUB202 bn, or by 1.6% in February, due to repayments of clients' loans. Total corporate loan portfolio reached RUB12.7 trln as of March 1, 2016.

The Bank lent about RUB115 bn to retail clients in February. Total retail loan portfolio increased by RUB14 bn, or 0.3%, in February to exceed RUB4.1 trln as of March 1, 2016. The share of mortgages in the retail portfolio continues to increase reaching 54.4% as of March 1, 2016 (was 53.8% as of January 1, 2016).

Overdue loans of total loans increased by 0.4p.p. to 3.7% in February mainly due to corporate clients. The level of overdue loans at Sberbank remains substantially lower than the level of the banking sector's average (7.0% as of February 1, 2016).

Securities portfolio was up by RUB15 bn in February, or by 0.6%. The portfolio ending balance was RUB2.35 trln as of March 1, 2016.

Retail deposits and accounts increased by RUB149 bn in February, or by 1.4% to reach RUB10.7 trln. The inflow came to ruble accounts.

Corporate funding increased by RUB98 bn in February, or by 1.4%, to exceed RUB7.0 trln.

Core Tier 1 and Tier 1 capital (equal since Sberbank does not have instruments of additional capital) reached RUB1,748 bn as of March 1, 2016 under preliminary calculations. Total capital amounted to RUB2,726 bn on the same date, up by RUB44 bn primarily due to net profit and revaluation of securities.

Risk-weighted assets decreased by RUB94 bn due to the decrease of the corporate loan portfolio.

Capital adequacy ratios under preliminary calculations as of March 1, 2016 were: N1.1 - 7.2% (minimum adequacy level, required by the Central Bank of Russia at 4.5%) N1.2 - 7.2% (minimum adequacy level, required by the Central Bank of Russia at 6.0%) N1.0 - 11.1% (minimum adequacy level, required by the Central Bank of Russia at 8.0%, considering Deposit Insurance Regulation).



Sberbank 2M 2016 Financial Highlights (under RAS, non-consolidated)

09.03.2016 The EquityStory.RS, LLC Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de

--------------------------------------------------------------------------- Language: English Company: Sberbank 19 Vavilova St. 117997 Moscow Russia Phone: +7-495-957-57-21 Fax: E-mail: media@sberbank.ru Internet: www.sberbank.ru ISIN: US80585Y3080, RU0009029540, RU0009029557, US80585Y4070 Listed: Open Market (Entry Standard) in Frankfurt ; London, MICEX, RTS End of Announcement EquityStory.RS, LLC News-Service ---------------------------------------------------------------------------