Sberbank releases Financial Highlights for 8M 2012 (under RAS; non-consolidated)

Sep 07, 2012

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

Income Statement Highlights for 8M 2012 (as compared to 8M 2011):

  • Net interest income grew 26.2% y-o-y
  • Net fee and commission income grew 17.7% y-o-y
  • Operating income before total provisions increased by 24.5% y-o-y
  • Total provision charge was RUB35.1 bn vs. provision release of RUB17.4 bn for 8M 2011
  • Operating expenses were up by 21.9% y-o-y
  • Profit before tax amounted to RUB299.4 bn vs. RUB282.1 bn for 8M 2011
  • Net profit totaled RUB239.4 bn vs. RUB225.8 bn for 8M 2011

Net interest income grew 26.2% y-o-y for 8M 2012:

  • Interest income increased by RUB160 bn due to growth of corporate and retail lending;
  • Interest expenses increased by RUB75 bn, in comparison with the same period last year, owing to increased fund-raising and higher interest rates on corporate funds and interbank market.

Net fee and commission income grew by RUB18.7 bn, or 17.7% y-o-y, due to expansion of fee-generating services with fees from plastic cards being the largest contributor.

Net gains from operations on financial markets amounted to RUB17.2 bn for 8M 2012, driven by gains from conversion operations.

For the reporting period, the Bank continued to make charges for provisions, which totaled RUB35.1 bn YTD.

Operating expenses increased by 21.9% y-o-y for 8M 2012. The main drivers of the increase were planned expenses related to investments, and spending, associated with the realization of the Bank’s Strategic Transformation Plan. Operating income before provisions continued to outpace growth in operating expenses (24.5% vs. 21.9%, respectively), which improved cost-to-income ratio from 41.5% to 40.6%.

Profit before tax totaled RUB299.4 bn and net profit amounted to RUB239.4 bn for 8M 2012. Both figures exceeded those for the same period a year ago.

The Bank’s assets expanded by 18.4%, to reach RUB12.4 trln. In August, assets increased by 1.7%, primarily due to growth of the loan portfolio and investments in subsidiaries.

The Bank lent over RUB 460 bn to corporate clients for the month and about RUB3.5 trln YTD, which was 1.1 times than that for 8M 2011. Corporate loan portfolio increased by 1.2% in August to over RUB7 trln.

Retail customers were granted about RUB170 bn in August, or about RUB1.2 trln YTD, which was 1.8 times greater than for 8M 2011. Retail loan portfolio added 3.3% in August to reach RUB2.3 trln.  

Quality of the loan portfolio remained almost unchanged in August, with portion of the overdue loans in the total loan portfolio increasing from 2.99% to 3.02%. Coverage ratio remained strong, with loan-loss provisions at RUB637 bn, or 2.3 times the overdue loans, as of September 1, 2012.

Securities portfolio increased marginally (+0.4%) to RUB1.6 trln. After expiration of an OFZ issue in August, the Bank acquired bonds primarily of high-quality companies.

Retail deposits in August grew 1.2% due to inflows to term deposits and saving certificates. Retail deposits and accounts – the main source of funding - increased by 8.0% or by RUB0.5 trln YTD to RUB6.1 trln.

Corporate deposits and accounts increased by 7.4% in August, led by term deposits. As of September 1, 2012, the balance of corporate deposits and accounts was close to RUB2.7 trln, up 22.0%, or by RUB0.5 trln YTD.

Regulatory capital (under CBR regulation No. 215-P) increased by nearly RUB13 bn in August to RUB1,627 bn. The main source of the increase in regulatory capital was net income generated by the Bank. In the meantime, regulatory capital was reduced by investments in subsidiaries.

Capital adequacy ratio was at 12.9% as of September 1, 2012. The decline owed to expansion of the loan portfolio.

Sberbank's Financial Highlights for 8M 2012 (under RAS; non-consolidated)