Sberbank releases Financial Highlights for 5m 2012 (under RAS; non-consolidated)

Jun 07, 2012

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

Income Statement Highlights for 5M 2012 (as compared to 5M 2011):

  • Net interest income grew 25.7% y-o-y
  • Net fee and commission income grew 21.6% y-o-y
  • Operating income before total provisions increased by 27.9% y-o-y
  • Total provision charge was RUB11.6 bn vs. provision release of RUB13.8 bn for 5M 2011
  • Operating expenses were up by 22.7% y-o-y
  • Profit before tax amounted to RUB194.2 bn vs. RUB170.3 bn for 5M 2011
  • Net profit totaled RUB154.9 bn vs. RUB136.9 bn for 5M 2011

Net interest income grew 25.7% y-o-y for 5M 2012:

  • Interest income was up 28.8% y-o-y on the back of credit expansion both in the corporate and retail segments;
  • Interest expenses increased by 34.5% y-o-y, as a result of growing volumes of funding and higher interest rates on corporate accounts and amounts due to other banks.

Net fee and commission income grew 21.6% y-o-y due to expansion of fee-generating bank services. Fees from plastic cards and acquiring operations saw the biggest increase.

Net gains from operations on financial markets amounted to RUB13.1 bn, driven by gains from conversion operations.

Total provision charge amounted to RUB4.9 bn for May and RUB11.6 bn year-to-date. The Bank continues to set aside provisions against new loans. The increase in provisions in May was partially due to revaluation of loans denominated in foreign currencies triggered by a 9%-depreciation of the ruble vs. the basket of currencies. For the same period a year ago, the Bank wrote back RUB13.8 bn in provisions.

Operating expenses increased by 22.7% y-o-y for 5M 2012, led by higher administrative expenses and salary increases dated back to 2H 2011. Operating income before provisions continues to outpace growth in operating expenses, which has a favorable impact on the cost-to-income ratio which was down from 41.0% for 5M 2011 to 39.3%.

Profit before tax totaled RUB194.2 bn and net profit amounted to RUB154.9 bn for 5M 2012. Both figures exceeded those for the same period a year ago.

The Bank’s assets expanded by over RUB1 trln or 9.9% year-to-date to RUB11.5 trln.

In May, assets increased by RUB187 bn or 1.7%, which was primarily due to FX revaluation gains as a result of ruble weakening relative to US dollar and Euro. However, loan portfolio expansion remains the driver of asset growth.

  • The Bank lent about RUB450 bn to corporate clients for the month and over RUB2.1 trln year-to-date. The balance of corporate loans increased by RUB131 bn in May to above RUB6.7 trln;
  • Retail customers were granted over RUB180 bn in May and over RUB750 bn year-to-date. Retail loan portfolio added RUB94 bn in May, and exceeded RUB2.1 trln.

There was a little improvement in the quality of the loan portfolio in May, with overdue loans declining from 3.34% to 3.28% of total. Coverage ratio remained strong, with loan-loss provisions at RUB639 bn, or 2.2 times the overdue loans, as of June 1, 2012.

Investment portfolio grew by 5.2% in May to RUB1,541 bn, which was due mostly to Eurobonds of Russian Federation and repo transactions.

Growth in funding volumes continued from major sources in May, which was partially reflective of FX revaluation.

  • Corporate deposits and accounts added RUB273 bn or 11.9%, led by term deposits, to RUB2.6 trln;
  • Retail deposits and accounts increased by RUB71 bn or 1.2% to RUB5.9 trln.

Regulatory capital (under CBR regulation No. 215-P) increased by RUB16 bn in May to RUB1,611 bn, due to net profit earned for the month. At the same time, however, capital was reduced, as per capital calculation requirements, by additional investments in subsidiaries and foreign currency translation losses of the Bank’s investments in its subsidiary companies and banks.

Capital adequacy ratio stood at 14.4% as of June 1, 2012.

Sberbank’s Financial Highlights for 5M 2012  (in accordance with RAS; non-consolidated)