SberBank releases Financial Highlights for 8 months of 2021 (under RAS, non-consolidated)

Sep 07, 2021

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.

Key highlights for August:

  • SberBank earned net profit of RUB106.0 bn.
  • Loans issuance to retail and corporate clients approached RUB2 trn. Consumer loan production hit a record of RUB275 bn, corporate loan book increased by 0.4% for the month.
  • Client accounts grew by 2.3% or RUB0.5 trn.
  • The number of active SberPrime subscribers increased 1.6 times to 2.7 mn.

Alexandra Buriko, CFO, stated:

“August business activity was noticeably impacted by one-time state payments to families with children.

In the run up to the new school year, Sber was busy preparing special offers to clients with attractive terms on services and products. These offerings were welcomed by our clients and lifted active SberPrime subscribers to 2.7 mn. Consumer loan origination reached a record, and demand remained strong for mortgages – issuance exceeded RUB237 bn, client accounts increased by 2.3%. We earned RUB827.6 bn in net profit for 8 months of the year, and ROE came in at 25.4%.”

Comments for 8M 2021:

Net interest income amounted to RUB1,044 bn for 8M 2021, and were up by 11.9% as compared to the same period a year ago. Growth came on the back of expanding loan book and securities portfolio.

Net fee and commission income increased by 16.9% to RUB372.7 bn. Growth was driven by banking cards transactions and acquiring, which accounted for 72.5% of fees income increase.

Operating expenses were up by 10.1% as compared to 8M 2020 and amounted to RUB425.3 bn. Growth in operating expenses was impacted by the revision of employee salaries in July, as well as the calendarization of expenses in 2021. Cost-to-Income ratio came in at 27.6%. 

Total provision charge including fair-value revaluation totaled RUB95.6 bn for 8M 2021, which was 4.6 times less than the charge a year ago, when SberBank made significant provisions on the back of worsening macro environment and the pandemic constraints. In August 2021, SberBank allocated RUB32.2 bn in provisions. The share of overdue loans in total loan portfolio was 2.3%.

Loan-loss provisions were 2.7 times the overdue loans. 

Net profit before income tax for 8M 2021 increased 1.7 times as compared to the same period a year ago, and exceeded RUB1 trn. Net profit increased 1.7 times, and amounted to RUB827.6 bn.

Total assets in August increased by 1.2% to RUB36.2 trn.

SberBank issued RUB1.4 trn in loans to corporate clients in August, or over RUB8.7 trn for 8M 2021, which was 5% greater than for 8M last year. Corporate loan portfolio was up by 0.4% to exceed RUB15.9 trn as of September 1, 2021.

Loan production to retail clients was in the amount of RUB520 bn in August, including all-time record amount of consumer unsecured loans, RUB 275 bn. The mortgage issuance was RUB237 bn. Overall, consumer loan issuance for 8M 2021 was RUB3.7 trn, 1,6 times more than for 8M 2020. The high pace of issuance was made possible thanks to digit channels; 74% of consumer unsecured loans and 48% of mortgages are issued remotely. Retail portfolio was up by 2.2% for the month to reach RUB9.9 trn as of September 1, 2021.

Total loan portfolio was up by 1.1% in August to RUB25.8 tn, as of September 1, 2021.

Securities portfolio was down by 0.7% to RUB5.16 trn in August, mainly from the redemption of an issue of federal bonds.

Retail client funding increased by 0.6% in August to RUB16.2 trn, supported by the one-time distribution of state funds to families with children. The ending balances of the escrow accounts continued to grow on the back of high volumes of mortgage lending, and were RUB1.25 trn as of September 1, 2021.

Corporate client funding in August were up by 5.8%, or by RUB454 bn, driven by settlement accounts, to reach RUB8.3 trn.

The total client funding in August increased by 2.3% to RUB24.5 trn.

SberBank placed two bond issuances for the combined amount of RUB54 bn.

Core Tier 1 and Tier 1 capital changed insignificantly in August to RUB3,821 bn and RUB3,971 bn respectively. 

Total capital in August increased by RUB84 bn, or by 1.7%, mainly due to earnings for the period.

The CET1 and T1 capital ratios were 11.24% and 11.68% respectively as of September 1, 2021. The calculation of the ratios does not include the net profit earned during the period between January and August 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 August increased by 2.2%, or RUB797 bn, led by loan portfolio growth.

Capital, RUB bn

1 Sep21*

1 Aug21

1 Sep21*/ 1 Aug21

1 Jan21

1 Sep21*/ 1 Jan21

Core Tier 1 capital N1.1

3 821

3 825

-0.11%

3 581

6.68%

Tier 1 capital N1.2

3 971

3 975

-0.11%

3 731

6.42%

Total capital N1.0

4 924

4 840

1.73%

4 661

5.65%

Capital adequacy ratios, %

Core Tier 1 capital N1.1, min 4.5%

11.24%

11.50%

-0.26 pp

11.19%

0.05 pp

Tier 1 capital N1.2, min 6.0%

11.68%

11.95%

-0.27 pp

11.66%

0.02 pp

Total capital N1.0, min 8.0%

14.47%

14.53%

-0.06 pp

14.54%

-0.07 pp

Risk-weighted assets, RUB bn

34 033

33 306

2.18%

32 042

6.21%


* preliminary calculations

SberBank Financial Highlights for 8 months 2021 (under RAS, non-consolidated)