OREANDA-NEWS. April 11, 2012. Please note that the numbers are calculated in accordance with Sberbank’s internal methodology.

Income Statement Highlights for 1Q 2012 (as compared to 1Q 2011)
Net interest income grew 26.9% y-o-y
Net fee and commission income rose by 22.7% y-o-y
Operating income before total provisions increased by 23.4% y-o-y
Total provision charge was RUB12.0 bn vs. the charge of RUB3.9 bn for 1Q 2011
Operating expenses rose by 19.5% y-o-y
Profit before tax amounted to RUB110.6 bn vs. RUB93.6 bn for 1Q 2011
Net profit totaled RUB97.4 bn vs. RUB83.9 bn for 1Q 2011
Net interest income grew 26.9% y-o-y in 1Q 2012:

Interest income was up 26.9% y-o-y due to credit expansion both in the corporate and retail segments;

Interest expenses rose by 26.8% y-o-y on the back of increased fund-raising and higher interest rates on corporate funds and interbank market. 

Net fee and commission income increased by 22.7% y-o-y owing to growth in fee-generating bank operations. The fastest growth stemmed from operations with plastic cards and acquiring operations which increased 1.6 times y-o-y.

Net gains from operations on financial markets amounted to RUB1.9 bn, led by gains from trading operations with securities.

Total provision charge for 1Q 2012 amounted to RUB12.0 bn vs. RUB3.9 bn for the same period a year ago. The Bank continues to make provisions against new loans.

Operating expenses grew by 19.5% y-o-y, due primarily to growth in headcount costs dated back to 2H 2011. As operating income before provisions outpaced growth in operating expenses, cost-to-income ratio declined from 37.5% in 1Q 2011 to 36.3% in 1Q 2012.

Profit before tax totaled RUB110.6 bn and net profit amounted to RUB97.4 bn in 1Q 2012. Both figures substantially exceeded those for the same period a year ago (RUB93.6 bn and RUB83.9 bn respectively).

The Bank’s assets increased by RUB575 bn or 5.5% year-to-date to over RUB11 trln. The balance sheet was significantly affected by negative FX revaluation as a result of ruble strengthening relative to US dollar and Euro.

In March, assets expanded by RUB267 bn or 2.5% m-o-m, with loan portfolio growth being the main driver.

The amount lent to corporate clients was more than RUB350 bn in March and about RUB1.1 trln year-to-date. The balance of corporate loans increased by RUB74 bn to above RUB6.5 trln.

Retail customer received about RUB160 bn in March and approximately RUB400 bn year-to-date. Retail loan portfolio added RUB79 bn m-o-m in March to RUB1.95 trln.

The quality of loan portfolio remained stable. Overdue loans accounted for 3.34% of the portfolio as of April 1, 2012, vs. 3.36% at the beginning of the year. Coverage ratio remained strong, with loan-loss provisions at RUB642 bn or 2.3 times the overdue loans.

Investment portfolio remained virtually unchanged at RUB1,458 bn as of April 1, 2012.

The Bank saw continued growth in funding in March:

Corporate deposits and accounts added RUB22 bn or 1.0% m-o-m to RUB2.3 trln;

Retail deposits and accounts increased by RUB54 bn or 1.0% m-o-m to RUB5.7 trln;

The Bank raised from the international capital market CHF0.41 bn in 3.5-year LPNs as part of the existing MTN-program.

Regulatory capital (under CBR regulation No. 215-P) increased by RUB82 bn in March to RUB1,593 bn. The increase was due to a transfer of 2011 net profit audited by CJSC “Ernst & Young Vneshaudit” from supplementary to core capital. This entailed a transfer into supplementary capital of a part of 2012 net profit which was initially excluded from regulatory capital as the supplementary exceeded the core capital.