DGAP-News: Sberbank of Russia

DGAP-News: Sberbank: Sberbank releases Financial Highlights for 3M 2016 (under RAS; non-consolidated)

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

07.04.2016 09:33

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 3M 2016 (under RAS; non-consolidated) Please note that the numbers are calculated in accordance with Sberbank's internal methodology. April 7, 2016 Key highlights for March, 2016: * Net profit came at RUB40.7 bn for March * Net interest income increased by 1.8 times, compared to the same month last year * Corporate overdue loan portfolio decreased by RUB3.7 bn YTD Deputy Chairman of Sberbank Alexander Morozov stated: We continue to see recovery in both net interest income and net profit, resulting in an increase of the total capital adequacy ratio by 0.4 pp. in March to 11.6%, whereas the core Tier 1 capital adequacy ratio increased to 8% after the audit of the Bank financial statements for 2015 Comments for Q1, 2016: Net interest income came at RUB269.8 bn, +74.6% compared to Q1, 2015: Interest income increased by 8.1%, mostly driven by the increase in volumes of working assets; Interest expenses decreased by 23.4% due to the decrease in market rates and the substitution of state funding with clients' funds. Fee and commission income was up by 27.1% to RUB67.5 bn, mainly driven by transactional business with bank cards and acquiring, cash settlements as well as bank insurance (commissions from which were weak a year ago, given the reduced demand for lending). Net income from FX revaluation and trading operations on capital markets amounted to -RUB22.1 bn compared to RUB2.8 bn for Q1, 2015 mostly due to the fx revaluation of the Balance sheet items as a result of ruble appreciation. Operating expenses growth came at +8.0%, that was significantly slower than pre-provision operating income growth (+48.6%). The Bank continues to strictly control its operating expenses. Total provision charges amounted to RUB110.6 bn vs. RUB78.6 bn a year ago. The Bank continues to form loan-loss provisions in-line with the requirements of the Central Bank of Russia. Loan-loss provisions are 2 times the overdue loans. Net profit before income tax came at RUB112.0 bn vs. RUB46.6 bn for Q1, 2015. Net profit totaled RUB100.4 bn, that is almost 4 times more than the result for Q1, 2015 (RUB26.3 bn). Total comprehensive income amounted to RUB141.0 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 March 2016 decreased by 2.2%. The negative revaluation of the FX component due to ruble strengthening had the main impact on the Balance Sheet items. The Bank lent about RUB900 bn to corporate clients in March. Corporate loan issues from the beginning of the year reached about RUB2.2 trln. The loan portfolio ending balance decreased by RUB517 bn, or by 4.1% in March, due to the revaluation of the FX loans. Total corporate loan portfolio stood at RUB12.1 trln as of April 1, 2016. The Bank lent about RUB130 bn to retail clients in March. Retail loan issues from the beginning of the year reached about RUB330 bn. Total retail loan portfolio increased by RUB17 bn, or 0.4%, in March to reach RUB4.16 trln as of April 1, 2016. The share of mortgages in the retail portfolio continues to increase reaching 54.8% as of April 1, 2016 (was 53.8% as of January 1, 2016). Overdue loans of total loans decreased by 0.4p.p. to 3.3% in March mainly due to corporate clients. Corporate overdue loans decreased by RUB 3.7 bn since the beginning of the year. The level of overdue loans at Sberbank remains substantially lower than the level of the banking sector's average (6.8% as of March 1, 2016). Securities portfolio was up by RUB11 bn in March, or by 0.5% due to purchases of the OFZ and corporate bonds. The portfolio ending balance was RUB2.36 trln as of April 1, 2016. Retail deposits and accounts decreased by RUB182 bn in nominal terms in March, or by 1.7% to RUB10.5 trln. Corporate deposits and accounts decreased by RUB264 bn or by 3.8% for the same period and stood at RUB6.7 trln. The dynamic was caused by the negative revaluation of the FX deposits. Excluding the revaluation effect, corporate and retail deposits increased by almost RUB190 bn due to the inflow of ruble accounts. Core Tier 1 and Tier 1 capital (equal since Sberbank does not have instruments of additional capital) reached RUB1,889 bn as of April 1, 2016 under preliminary calculations. Total capital amounted to RUB2,758 bn on the same date, up by RUB33 bn in March primarily due to net profit earned. Risk-weighted assets decreased by RUB589 bn due to the decrease in the corporate loan portfolio. Capital adequacy ratios under preliminary calculations as of April 1, 2016 were: * N1.1 - 8.0% (minimum adequacy level, required by the Central Bank of Russia at 4.5%) * N1.2 - 8.0% (minimum adequacy level, required by the Central Bank of Russia at 6.0%) * N1.0 - 11.6% (minimum adequacy level, required by the Central Bank of Russia at 8.0%, considering Deposit Insurance Regulation).

Sberbank Q1, 2016 Financial Highlights (under RAS, non-consolidated)

07.04.2016 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 ---------------------------------------------------------------------------