OREANDA-NEWS. Sberbank releases Financial Highlights for 10M 2016.

Net interest income came at RUB925.7 bn: Interest income increased by 5.1%, mostly driven by the increase in volume of working assets; Interest expense came down by 21.8% due to improving liabilities structure with cheaper funding and decrease in market rates compared to 10M 2015.

Fee and commission income was up by 22.0% to RUB253.8 bn compared to 10M 2015 mainly driven by transactional business with bank cards and acquiring. Income from bank insurance and settlements also contributed to Fee and commission income.

Operating expense increased by 12.3%, which was significantly slower than pre-provision operating income growth (32.6%). Despite continuing wages indexation the increase in operating expenses was slow. The Bank continues to increase efficiency and implement cost-cutting program. Cost-to-Income ratio decreased from 39.0% for 10M 2015 to 33.1% for 10M 2016. 

Total provision charge amounted to RUB30.4 bn in September. Total provision charge for 10M 2016 amounted to RUB249 bn, or 74% of 10M 2015 figure. Significant impact on provisions during 10M 2016 was the strengthening of the Ruble against major foreign currencies. The Bank continues to form loan-loss provisions in-line with the requirements of the Central Bank of Russia.

Net profit before income tax came at RUB545.0 bn. Net profit totaled RUB429.8 bn.

Total comprehensive income which includes the income from revaluation of financial assets available-for-sale and held-to-maturity, amounted to RUB481.2 bn.