Sberbank publishes Financial Highlights for January 2009 (under RAS)
Please note that the numbers are calculated in accordance with the Bank’s internal methodology. Also note that the numbers as of 1 January 2009 exclude the effects of events after the reporting date.
February 24, 2009
As of 1 February 2009, Sberbank’s loan portfolio exceeded RUB5.7 trillion. The Bank added RUB147 bn in new loans, which is 1.6 times the increase of January 2008. The loan portfolio growth was driven by lending to corporate customers and revaluation of foreign currency loans.
Sberbank lends predominantly to the real sector of the economy with credit risk and quality of borrowers taken into account. About 80% of the corporate loans were granted through the regional head offices to local enterprises. Industries which received funding from the Bank comprised manufacturing, electric power industry, agriculture, construction, trade, etc. The corporate loan book exceeded RUB4.1 trillion as of 1 February, 2009 .
The retail portfolio declined by 1% to RUB1.2 trillion in January, which was the result of contracting consumer demand for loans.
Sberbank adheres to its conservative risk management policy building up significant provisions for loan impairment. As of January 2009, loan loss provisions constituted the main expense item, coming at RUB37 bn or 39% of total expenses (RUB2 bn or 5% of total in January 2008). As a result the coverage ratio stood at 2.6, whereas the overdue made 1.8% of the loan portfolio as of 1 February, 2009.
As of 1 February 2009, Sberbank’s investment in securities was RUB525 bn, with 60% of total comprised of government securities used for liquidity management purposes. Gains from investment in securities recognized through P&L amounted to RUB3.3 bn and stemmed largely from interest income.
The total funding base saw the following changes in January:
- Deposits from individuals grew by RUB28.8 bn.
- Corporate accounts declined by RUB38.2 bn.
- The January deposit outflow was offset by loans from the Bank of Russia raised via uncollateralized auction and repo agreements.
As of 1 February 2009, cost/income ratio stood at 15.1% but cannot be viewed as a relevant indicator of the annual trend for 2009 due to uneven distribution of expenses and income throughout the year. In the meantime, it should be underlined that the Bank proceeds with cost cutting and optimization of cost structure.
Sberbank’s regulatory capital totaled RUB1,150 bn, down by RUB6.7 bn or 0.6% year-to-date. The decline was due to revaluation of the Bank’s stakes in its foreign subsidiaries in Kazakhstan and Ukraine triggered by changes in exchange rates.
Profit before tax amounted to RUB5.3 bn and net profit was RUB3.5 bn in January. Lending activities were the main driver, generating interest income, fees and commissions 1.5 times higher than in January 2008.
Results of Sberbank’s operations as of 1 February 2009 (in accordance with Russian accounting standards; non-consolidated; not including the effects of the events after the reporting date)