Financial Highlights of Sberbank’s Operations for 10 Months 2008 (in accordance with Russian accounting standards; non-consolidated)
Please note that herein, for compatibility purposes, growth rates for 2008 were calculated using the Bank’s internal methodology introduced on 1 January 2008 following the introduction of the new accounting rules (See the Bank of Russia’s Regulation No.302-P). The growth rate of the bank’s regulatory capital is calculated from the bank’s capital as of 1 January, 2008, which amount includes the effects of the events after the reporting date.
For the first 10 months of 2008 the total loan portfolio (including loans to banks) grew by RUB 1,098.2bn (+26.8%) to exceed RUB 5,200bn. In October 2008, the corporate loans portfolio increased by RUB99.8bn, the highest growth for the last four months. Loans to individuals for the 10 months of 2008 grew by RUB320.1bn and totaled RUB1,270bn, which represents a 60% growth year-on-year.
Investments in securities decreased by RUB15.3bn to RUB497.8bn. The bank’s securities portfolio consists mainly of federal debt securities that are used by the bank for liquidity management purposes. Income from operations with securities for the first 10 months of 2008 was RUB13.8bn; this includes a revaluation loss of RUB14.5bn recognized through the bank’s income statement.
The Bank’s funding base increased as a result of an inflow of funds from both individuals and legal entities.
In October 2008, deposits taken from legal entities grew by RUB51.4bn in line with the average growth rate for the previous months of 2008. In total, for the first 10 months of 2008, legal entities’ deposits increased by RUB 508.9bn to RUB1,836.7bn.
In October 2008 the bank’s retail deposits decreased by 3.2%, or RUB 95.1bn. However, for the first 10 month of 2008 retail deposits increased by RUB251.5bn to RUB2,900bn. As of October 1, 2008, Sberbank's market share in retail deposits exceeded 50.8%. Retail deposits remain the core source of funds for Sberbank.
Profit before corporate income tax for the first 10 months of 2008 totaled RUB143.7bn, which is above the result for the same period of 2007 (RUB139.7bn). Sberbank’s profit before tax for the first 9 months of 2008 comprised 38% of the total profit earned by the Russian banking system. The increase in profit before tax for 10 month of 2008 was driven by higher interest income from loans and higher fee based income. Net profit for the first 10 months of 2008 is RUB113.0bn, this is equal to the net profit for same period of 2007.
Cost/Income ratio of 42,7% was 3.4 percentage points better than in 2007.
Sberbank’s regulatory capital reached RUB947.6bn; this represents a 39.0% growth since the beginning of 2008. The increase came as a result of the net profit earned for 2008 and the subordinated loan of RUB150bn received from CBR in October.