OREANDA-NEWS. July 09, 2013. Please note that the numbers are calculated in accordance with Sberbank’s internal methodology, which incorporates a number of changes effective May 17, 2013.

Income Statement Highlights for 6M 2013 (as compared to 6M 2012):

Net interest income increased by 15.2% y-o-y

Net fees & commissions income increased by 9.2% y-o-y

Operating income before provisions increased by 13.1% y-o-y

Total provision charge reached RUB47.5 bn vs. an RUB19.1 bn charge for 6M 2012

Operating expenses were up by 13.7% y-o-y

C/I ratio increased from 38.2% to 38.5%

Profit before tax amounted to RUB233.6 bn vs. RUB230.3 bn for 6M 2012

Net profit totaled RUB191.8 bn vs. RUB183.0 bn for 6M 2012

Net interest income (adjusted for deposit insurance expense1) came at RUB333.5 bn, up by 15.2% y-o-y compared to 6M 2012:

Interest income increased by RUB121.0 bn, primary driven by growth in assets;

Interest expenses grew by RUB77.1 bn, due to both growth in volumes of funding and higher levels of interest rates compared to 6M 2012.

Net fees & commissions income increased by 9.2% y-o-y to RUB101.3 bn. Growth in commissions income unrelated to lending reached RUB12.9 bn, or 16.1%. The main driver of fees & commissions income were transactions with bank cards, including acquiring, - income from which came at RUB41.7 bn, up 37.5% y-o-y compared to 6M 2012.

Operating income before provisions increased by 13.1% y-o-y, while operating expenses increased by 13.7%, which led to C/I ratio of 38.5%, insignificantly up from 38.2%. The main drivers of Operating expenses growth were administrative expenses and amortization. Staff costs increased by 9.0% y-o-y for 6M 2013.

Total provision charges amounted to RUB47.5 bn for 6M 2013 vs. RUB19.1 bn charge a year earlier.

Net income from trading activities reached RUB13.7 bn, compared to RUB15.5 bn for 6M 2012. Income from conversion operations and investment securities declined, while income from trading with precious metals improved. A part of income that constitutes trading operations income demonstrates rather volatile dynamics caused not only by FX fluctuations but also by specifics of reporting reevaluation of conversion operations under RAS.

Net profit reached RUB191.8 bn for 6M2013, up 4.8% y-o-y.

Assets increased by RUB176 bn in June, or 1.2%, primarily due to increasing volumes of lending and securities portfolio.

The Bank lent over RUB540 bn to corporate clients in June 2013. Corporate loan portfolio increased by RUB40 bn, or 0.5%, in June. Overall about RUB2.6 trln were lent to corporate clients in 1H2013, which exceeded the lending volumes a year earlier. 

Retail customers received over RUB185 bn in loans in June. Overall about RUB970 bn were lent to retail clients in 1H2013, which exceeded the lending volumes a year earlier. Retail loan portfolio grew by RUB63 bn, or 2.3%, in June.

The quality of the loan portfolio improved in June: the share of overdue loans in June declined from 2.87% to 2.60% as a result of scheduled sale of bad loans portfolio. Coverage remained sufficient, with loan-loss provisions at RUB604 bn, or 2.25 times the overdue loans as of July 1, 2013.

Investment portfolio increased by RUB36 bn, or 2.1%, in June mainly from buying OFZ bonds.
The clients’ funds were the main source of funding.  Retail deposits and accounts ending balance in June increased by 2.4%, or RUB164 bn, driven by both traditional deposits and deposit certificates. Retail deposits and accounts balance increased by RUB455 bn for 6M 2013, which was greater than the increase for the same period last year.

Corporate deposits and accounts increased by RUB130 bn, or 4.2%, in June mainly from inflow of funds onto current accounts. The ending balance increased by 15.0%, or RUB418 bn, for 6M 2013.

A substantial inflow of client funds in June allowed to decrease funding from the CBR and Federal Treasury, the share of which as a percentage of total funding declined to 6.9%.

Regulatory capital (under CBR regulation No. 215-P) came to RUB1,826 bn as at July 1, 2013 as per preliminary calculations, driven by several factors. Capital increase was attributed to net profit as well as subordinated debt of USD1 bn, raised in May 2013. Dividend payments in the amount of RUB58.7 bn as per the Annual General Shareholder Meeting decision limited capital growth. Consequently, capital increased by RUB8 bn in June.

Capital adequacy ratio of the Bank (under RAS)  came at 13.3% as of July 1, 2013.

Sberbank's Financial Highlights for 6M 2013 (under RAS; non-consolidated)
1 For the purposes of comparison, net interest income reported in press released prior to April 2013 inclusive, should be adjusted for deposit insurance expense