Sberbank releases Financial Highlights for 5M 2019 (under RAS; non-consolidated)

Jun 07, 2019

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

Also note that some changes became effective in the Russian accounting standards in 2019 as part of convergence with IFRS, including transition to IFRS 9.

Key highlights for May 2019:

  • The Bank earned RUB75.7 bn in May, up 13.6% year over year;
  • Loans issuance to retail clients exceeded RUB240 bn; retail portfolio expanded by 1.3%.

Deputy Chairman of Sberbank Alexander Morozov stated:

“In May we increased our retail loan book in all key product lines. As a result, loans to individuals exceeded RUB6.5 trn reaching 34% in the Sberbank loan portfolio. Financial results show a sustainable dynamic despite the seasonal slowdown in business activity due to the May holidays.”

Comments for 5M 2019:

Net interest income grew by 0.6% y-o-y to RUB514.0 bn affected by both loan portfolio expansion and higher cost of funding.

Net fee and commission income was up by 8.5% to RUB178.1 bn, driven mainly by operations with bank cards and settlement transactions. As part of convergence with IFRS, starting from 2019 the Bank changed the methodology of fees and commission accounting that affected the timing of their recognition and will be largely absorbed by year end.

Operating expenses increased by 8.4%. OpEx dynamics in 1H2019 remains affected by transfer of IT specialists from Sberbank Technologies JSC to Sberbank PJSC that took place in the second half of 2018, as well as VAT rate increase from January 1, 2019. Cost-to-income ratio came at 31.3%.

Provision charges amounted to RUB15.5 bn in May and RUB29.8 bn year to date. As of June 1, loan-loss provisions were 2.8 times that of the overdue loans. Positive revaluation of loans at fair value amounted to RUB2.0 bn in 5M 2019.

Net profit before tax grew by 12.5% to RUB468.5 bn for 5M 2019. Net profit increased by 12.3% to RUB369.1 bn.

Total assets remained unchanged in May at RUB27.5 trn.

The Bank originated RUB713 bn loans to corporate clients in May and RUB4.0 trn in 5M 2019. Corporate loan portfolio contracted by 0.5% in May to RUB12.86 trn.

The Bank issued RUB240 bn loans to retail clients in May and over RUB1.2 trn year to date. Retail loan portfolio grew in May by 1.3% to RUB6.6 trn.

Overdue loans increased in May by RUB24.9 bn, largely due to the ongoing restructuring of a clients’ debt from the oil-refinery industry. The share of overdue loans in the total portfolio amounts to 2.26%, which is substantially lower than the banking sector’s average (8.9% excl. Sberbank as of May 1, 2019).

Securities portfolio decreased in May by 0.9% to around RUB3.2 trn, largely due to repayment of CBR bonds.

Retail deposits and accounts decreased by 0.7% to RUB13.1 trn in May. Due to May holiday April salaries and pensions were transferred to client accounts at the end of April unlike it is the common practice to credit at the beginning of the next month. Corporate deposits and accounts grew by 0,8% to RUB7,1 trn. Combined client deposits remained at RUB20.2 trn.

Core Tier 1 and Tier 1 capital remained virtually unchanged in May. Total capital grew due net profit increase for the month.

Risk-weighted assets increased by RUB130 bn driven by retail lending expansion.

 

 

Capital, RUB bn


1 June '19*

1 May'19

1 June‘19*/

1 May’19

1 Jan’19

1 June 19*/

1 Jan’19

Core Tier 1 capital N1.1

3,479

3,477

0.06%

3,178

9.5%

Tier 1 capital N1.2

3,479

3,477

0.06%

3,178

9.5%

Total capital N1.0

4,392

4,345

1.08%

4,244

3.5%

Capital adequacy ratios, %

 

 

 

 

 

Core Tier 1 capital N1.1, min. 4,5%

11.73%

11.77%

-0.04 pp

11.11%

0.61 pp

Tier 1 capital N1.2, min. 6,0%

11.73%

11.77%

-0.04 pp

11.11%

0.61 pp

Total capital N1.0, min. 8,0%

14.80%

14.71%

0.10 pp

14.84%

-0.04 pp

Risk-weighted assets, RUB bn

29,674

29,544

0.44%

28,596

3.77

* preliminary calculations

 

Sberbank Financial Highlights for 5M 2019 (under RAS, non-consolidated)