OREANDA-NEWS. Sberbank has released its interim condensed consolidated IFRS financial statements as at and for the 3 months ended 31 March 2016, with review report by Ernst & Young.

Total loans, net, decreased by 1.2% to RUB18.5 trn in 1Q 2016 as compared to 4Q 2015. The decrease of the corporate loan portfolio was influenced by revaluation of foreign currency denominated loans. Excluding the effect from the revaluation, the real loan portfolio demonstrated slightly positive growth. The dynamics within retail loan portfolio were influenced primarily by an increase in mortgages (up 1.8% during the quarter) and contraction in volume of consumer unsecured loans (portfolio down by 3.9% during the quarter).

Client deposits demonstrated a drop during the quarter in both retail and corporate segments, down by 3.2% and 1.7% respectively in 1Q 2016 as compared to 4Q 2015, in large as a result of ruble appreciation as well as seasonality. The structure of client deposits improved during the quarter as the share of current accounts in total deposits increased by 90 basis points to 25.0%.

Total NPL ratio increased to 5.2% in 1Q 2016 from 5.0% in 4Q 2015 mainly as a result of total loan portfolio contraction. Coverage level of the NPL portfolio by provisions remained unchanged at 1.2X in 1Q 2016 from 4Q 2015.

The share of renegotiated loan portfolio increased to 17.8% of total loan portfolio in 1Q 2016 relative to 4Q 2015, reaching RUB3.5 trn. The main sector affecting the increase was metals and mining. The quarterly NPL ratio within the renegotiated loan portfolio increased slightly by 30 basis points to 11.3% from 11.0%.

The Group’s total capital increased by 2.6% to RUB3.2 trn in 1Q 2016 relative to 4Q 2015 primarily as a result of retained net profit.

The Group’s risk-weighted assets decreased by 3.5% in 1Q 2016 from 4Q 2015 to RUB24.1 trn, driven mainly by currency fluctuations. The total capital adequacy ratio (Basel I) increased by 80 basis points to 13.4% during 1Q 2016. The core capital adequacy ratio increased by 80 basis points to 9.7% during 1Q 2016.