OREANDA-NEWS. March 14, 2012. Please note that the numbers are calculated in accordance with Sberbank’s internal methodology. Also note that the effect of subsequent events is not included in the numbers as of January 1, 2012.

Income Statement Highlights for January-February 2012 (as compared to January-February 2011)

Net interest income grew 28.8% y-o-y

Net fee and commission income rose by 20.0% y-o-y

Operating income before total provisions increased by 25.0% y-o-y

Total provision charge was RUB9.4 bn vs. the charge of RUB4.0 bn for January-February 2011

Operating income after total provisions increased 20.2% y-o-y

Operating expenses rose by 21.3% y-o-y

Profit before tax amounted to RUB70.7 bn vs. RUB59.1 bn for January-February 2011

Net profit totaled RUB61.7 bn vs. RUB52.8 bn for January-February 2011

Net interest income grew 28.8% y-o-y in January-February 2012, which was due to rising interest income:

Interest income was up 26.9% y-o-y on the back of expanding working assets and a shift in  the asset mix towards higher-margin products;

Interest expenses increased by 23.9% y-o-y reflecting finding growth from various sources as well as higher market interest rates on corporate and interbank funding.

Net fee and commission income increased by 20.0% y-o-y owing to growth of fee-generating operations. Fees income from plastic cards and acquiring operations was 1.7 times y-o-y higher, thus contributing more than a half of fees and commission growth.

Net losses from operations on financial markets, including FX revaluation, amounted to RUB1.8 bn vs. net losses of RUB0.02 bn in January-February 2011, which was attributed to ruble appreciation against the US dollar from 32.2 RUB/USD to 29.0 RUB/USD year-to-date (or +10% year-to-date). Net gains from operations with securities amounted to RUB1.2 bn.

Total provision charge for January-February 2012 amounted to RUB9.4 bn vs. RUB4.0 bn for the same period a year ago. The increase in total provision expenses was led by provisioning against new loans.

Operating expenses grew by 21.3% y-o-y, due to growth in headcount costs primarily dated back to 2H2011.

Profit before tax totaled RUB70.7 bn and net profit amounted to RUB61.7 bn for January-February 2012. Both figures exceeded those for the same period a year ago (RUB59.1 bn and RUB52.8 bn respectively). 

The Bank’s assets increased by RUB304.6 bn or 2.9% year-to-date to over RUB10.7 trln. The balance sheet was significantly affected by negative FX revaluation as a result of ruble strengthening relative to US dollar and Euro.

In February, assets expanded by RUB203.0 bn or 1.9% m-o-m, with loan portfolio growth being the main driver.

The amount lent to Russian corporate clients both in rubles and FX more than RUB325 bn in February. The balance of corporate loans increased by RUB30 bn or 0.5% m-o-m to RUB6.5 trln (real growth, adjusted for FX revaluation, was RUB97 bn or 1.5% m-o-m). 

Retail loan portfolio added RUB58 bn or 3.2% m-o-m in February to RUB1.9 trln (real growth, adjusted for FX revaluation, was RUB59 bn or 3.3% m-o-m).

The quality of loan portfolio remained stable. Overdue loans accounted for 3.35% of the portfolio as of March 1, 2012, vs. 3.36% at the beginning of the year. Coverage ratio remained strong, with loan-loss provisions at RUB646 bn or 2.3 times the overdue loans.

Investment portfolio decreased by 1.1% m-o-m to RUB1,445 bn as of March 1, 2012.

The Bank’s funding growth continued in February:

Corporate deposits and accounts added RUB81 bn or 3.7% m-o-m to RUB2,252 bn;

Retail deposits and accounts increased by RUB93 bn or 1.7% m-o-m to RUB5,640 bn;

The Bank raised from the international capital market USD1.75 bn in 5- and 10-year LPNs as part of the existing MTN-program.

Regulatory capital (under CBR regulation No. 215-P) was RUB1,513 bn as of March 1, 2012. The change in the amount of capital reflected completion of the acquisitions a 100%-stake in Volksbank International AG (VBI). Furthermore, the regulatory capital does not include a part of 2012 net profit as the supplementary exceeds the core capital.