OREANDA-NEWS. Sberbank Releases Financial Highlights for 3M 2016.

Net interest income came at RUB269.8 bn, +74.6% compared to Q1, 2015: Interest income increased by 8.1%, mostly driven by the increase in volumes of working assets; Interest expenses decreased by 23.4% due to the decrease in market rates and the substitution of state funding with clients` funds.

Fee and commission income was up by 27.1% to RUB67.5 bn, mainly driven by transactional business with bank cards and acquiring, cash settlements as well as bank insurance (commissions from which were weak a year ago, given the reduced demand for lending).

Net income from FX revaluation and trading operations on capital markets amounted to -RUB22.1 bn compared to RUB2.8 bn for Q1, 2015 mostly due to the fx revaluation of the Balance sheet items as a result of ruble appreciation.

Operating expenses growth came at +8.0%, that was significantly slower than pre-provision operating income growth (+48.6%). The Bank continues to strictly control its operating expenses.

Total provision charges amounted to RUB110.6 bn vs. RUB78.6 bn a year ago. The Bank continues to form loan-loss provisions in-line with the requirements of the Central Bank of Russia. Loan-loss provisions are 2 times the overdue loans.

Net profit before income tax came at RUB112.0 bn vs. RUB46.6 bn for Q1, 2015. Net profit totaled RUB100.4 bn, that is almost 4 times more than the result for Q1, 2015 (RUB26.3 bn).

Total comprehensive income amounted to RUB141.0 bn. In addition to the Net profit, this item includes the net income from revaluation of financial assets available-for-sale and held-to-maturity.