OREANDA-NEWS. September 12, 2013. Please note that the numbers are calculated in accordance with Sberbank’s internal methodology .

Income Statement Highlights for January-August 2013 (as compared to January-August 2012):

Net interest income grew by 15.5% y-o-y

Net fee and commission income grew by 11.9% y-o-y

Operating income before total provisions increased by 14.1% y-o-y

Total provision charge was RUB74.1 bn vs. a RUB35.1 bn charge in January-August 2012

Operating expenses were up by 12.5% y-o-y

C/I ratio declined from 39.4% to 38.9%

Profit before tax amounted to RUB310.8 bn vs. RUB299.4 bn for January-August 2012

Net profit amounted to RUB253.8 bn vs. RUB239.4 bn for January-August 2012

Net interest income came at RUB461.8 bn, up 15.5% compared to 8M 2012:

Interest income increased by RUB160.1 bn, primary driven by growth in assets;

Interest expenses grew by RUB98.1 bn, due to both growth in volumes of funding and higher levels of interest rates compared to 8M 2012.

Net fees & commissions income increased by 11.9% y-o-y to RUB139.1 bn. Growth in commissions income unrelated to lending reached RUB129.4 bn, up 17.8%. The main driver of fees & commissions income were transactions with bank cards, including acquiring, - income from which came at RUB58.3 bn, up 37.2% y-o-y.

Operating income before provisions increased by 14.1% y-o-y.

Operating expenses for 8M 2013 grew by 12.5% in comparison to 8M 2012. Main drivers of the operating expenses growth were personnel and administrative expenses and amortization. C/I ratio improved from 39.4% for 8M 2012 to 38.9% for 8M 2013.

Total provision charges amounted to RUB74.1 bn for January-August 2013 vs. RUB35.1 bn charge a year earlier. Total provision charges in August were RUB6.8 bn.

Net income from trading activities reached RUB16.3 bn, compared to RUB16.2 bn for 8M 2012. In August net income from trading activities showed a loss of RUB0.2 bn as a result of revaluation of investments in Denizbank due to fluctuations in Turkish lira rate.

Profit before tax amounted to RUB310.8 bn vs. RUB299.4 bn for January-August 2012.

Net profit reached RUB253.8 bn for 8M 2013, up by 6.0% y-o-y.

Assets increased by RUB237 bn in August, or 1.6%, mainly due to growth of loan portfolio and amounts placed with other banks.

The Bank lent more than RUB500 bn to corporate clients in August 2013. About RUB3.8 trln were lent to corporate clients for 8M 2013. Corporate loan portfolio increased by RUB58 bn, or 0.8%, in August. Retail loan portfolio grew by RUB87 bn, or 3.0%, in August.

Quality of the loan portfolio remained stable: the share of overdue loans decreased from 2.65% to 2.54% in August. Coverage remained sufficient, with loan-loss provisions at RUB620 bn, or 2.28 times the overdue loans as of September 1, 2013.

Investment portfolio increased by RUB17 bn, or 1.0%, in August mainly due to purchases of corporate eurobonds.

The clients’ funds remain the core source of funding the Bank’s operations, accounting for around 70% of total liabilities and equity:

Retail deposits and accounts ending balance amounted to RUB7.2 trln as of September 1, increasing by RUB28 bn, or 0.4%, in August, due to deposits and saving certificates. Retail deposits and accounts balance increased by RUB532 bn for 8M 2013, or 8.0%, which was in-line with growth rate for the same period last year.

Corporate deposits and accounts amounted to RUB3.1 trln as of September 1. A slight reduction in balances (-RUB51 bn, or -1.6%) took place in August due to reduction of current accounts, while the volume of term deposits increased by RUB13 bn, or 0.8%. Overall the average daily ending balances of corporate clients’ funds for 8M 2013 were by 26.0% greater than for 8M 2012.

Funding from the CBR and Federal Treasury accounted to 9.5% of total liabilities and equity.

Regulatory capital (under CBR regulation No. 215-P) came to RUB1,878 bn as of September 1, 2013, as per preliminary calculations. In August capital increased by RUB37 bn due to net profit and revaluation of investments in the Bank subsidiaries.

Capital adequacy ratio of the Bank (under RAS) amounted to 13.2% as of September 1, 2013.