OREANDA-NEWS. May 12, 2012. Please note that the numbers are calculated in accordance with Sberbank’s internal methodology, reported the press-centre of Sberbank. 

Income Statement Highlights for 4M 2012 (as compared to 4M 2011):

Net interest income grew 26.6% y-o-y

Net fee and commission income grew 22.2% y-o-y

Operating income before total provisions increased by 25.8% y-o-y

Total provision charge was RUB6.7 bn vs. provision release of RUB14.6 bn for 4M 2011

Operating expenses were up by 14.3% y-o-y

Profit before tax amounted to RUB158.1 bn vs. RUB137.6 bn for 4M 2011

Net profit totaled RUB127.3 bn vs. RUB111.2 bn for 4M 2011

Net interest income grew 26.6% y-o-y for 4M 2012:

Interest income was up 28.0% y-o-y on the back of credit expansion both in the corporate and retail segments;

Interest expenses increased by 30.6% y-o-y, owing to increased fund-raising and higher interest rates on corporate funds and interbank market.

Net fee and commission income grew 22.2% y-o-y due to expansion of fee-generating services. Fees from plastic cards and acquiring operations saw the biggest increase (1.6 times y-o-y), which was the result of increasing number of new cards issued and promotion of acquiring operation to corporate clients.

Net gains from operations on financial markets amounted to RUB5.2 bn, driven by gains from trading operations with securities.

In April, the Bank released provisions in the amount of RUB5.3 bn, which was largely the result of better quality of its loan portfolio due to improving financial conditions of some borrowers and loan restructurings as part of planned work with distressed assets. In the meantime, the Bank continued to create provisions on new loans. Total provision charge for 4M 2012 amounted to RUB6.7 bn vs. provision releases of RUB14.6 bn for the same period a year.

Operating expenses increased by 14.3% y-o-y for 4M 2012, led by higher administrative expenses and salary increases dated back to 2H 2011. As operating income before provisions outpaced growth in operating expenses, cost-to-income ratio declined from 41.3% for 4M 2011 to 37.5% for 4M 2012.

Profit before tax totaled RUB158.1 bn and net profit amounted to RUB127.3 bn for 4M 2012. Both figures exceeded those for the same period a year ago.

The Bank’s assets expanded byRUB844 bn year-to-date, or 8.1%, to over RUB11.3 trln. The balance sheet was significantly affected by negative FX revaluation as a result of ruble strengthening relative to US dollar and Euro.

In April, assets increased by RUB269 bn or 2.4%:

The Bank lent about RUB460 bn to corporate clients for the month and almost RUB1.7 trln year-to-date. The balance of corporate loans increased by RUB75 bn in April to above RUB6.6 trln.

Retail customers were granted over RUB160 bn in April and more than RUB560 bn year-to-date. Retail loan portfolio added RUB87 bn in April, and exceeded RUB2 trln.

Quality of the loan portfolio was unchanged in April, with overdue loans comprising 3.34% of total. Coverage ratio remained strong, with loan-loss provisions at RUB636 bn, or 2.2 times the overdue loans, as of May 1, 2012.

Investment portfolio grew by 0.5% in April to RUB1,465 bn. 

The Bank saw a continued funding growth from its major sources in April:

Corporate deposits and accounts added RUB22 bn or 1.0% to RUB2.3 trln;

Retail deposits and accounts increased by RUB131 bn or 2.3% to RUB5.8 trln;

Regulatory capital (under CBR regulation No. 215-P) increased by RUB13 bn in April to RUB1,595 bn, due to net profit earned for the month. At the same time, however, capital was reduced by investments in Troika Dialog.

Capital adequacy ratio stood at 14.8% as of May 1, 2012.