OREANDA-NEWS. July 12, 2012. Please note that the numbers are calculated in accordance with Sberbank’s internal methodology.

Income Statement Highlights for 6M 2012 (as compared to 6M 2011):
Net interest income grew 26.0% y-o-y
Net fee and commission income grew 19.7% y-o-y
Operating income before total provisions increased by 25.9% y-o-y
Total provision charge was RUB19.1 bn vs. provision release of RUB17.8 bn for 6M 2011
Operating expenses were up by 21.8% y-o-y
Profit before tax amounted to RUB230.3 bn vs. RUB211.6 bn for 6M 2011
Net profit totaled RUB183.0 bn vs. RUB171.3 bn for 6M 2011

Net interest income grew 26.0% y-o-y for 6M 2012:
Interest income was up 30.1% y-o-y on the back of credit expansion both in the corporate and retail segments;
Interest expenses increased by 37.6% y-o-y, owing to increased fund-raising and higher interest rates on corporate funds and interbank market.

Furthermore interest income in June 2012 increased m-o-m by 2.5% versus a decline in interest expenses m-o-m by 2.4%.

Net fee and commission income grew 19.7% y-o-y due to expansion of fee-generating services. Fees from plastic cards and acquiring operations gained RUB9.7 bn, equivalent to a 65% increase.

Net gains from operations on financial markets amounted to RUB16.3 bn for 6M 2012, driven by gains from conversion operations.

In June, the Bank charged RUB7.6 bn of provisions, or RUB19.1 bn YTD.

Operating expenses increased by 21.8% y-o-y for 6M 2012, due to higher administrative expenses and salary increases dated back to 2H 2011. Operating income before provisions growth continued to outpace growth in operating expenses, which improved cost-to-income ratio to 39.9% for 6M 2012 from 41.2% for 6M 2011.

Profit before tax totaled RUB230.3 bn and net profit amounted to RUB183.0 bn for 6M 2012. Both figures exceeded those for the same period a year ago.

The Bank’s assets expanded byRUB1 363 bn year-to-date, or 13.0%, to exceed RUB11.8 trln.

In June, assets increased by RUB332 bn or 2.9%, primarily due to growth of the loan portfolio:

The Bank lent about RUB450 bn to corporate clients for the month and about RUB2.5 trln year-to-date, which was greater than that for 6M 2011 by 16%. Corporate loans portfolio increased by RUB110 bn, or 1.6%, in June to about RUB6.85 trln.

Retail customers were granted about RUB170 bn in June, or over RUB920 bn year-to-date, which was 1.9X greater than for 6M 2011. Retail loan portfolio added RUB80 bn in June, or 3.8%, and exceeded RUB2.2 trln.  

Quality of the loan portfolio significantly improved in June as a result of quality work with distressed assets. Share of overdue loans declined from 3.28% to 3.03% of total loans. Coverage ratio remained strong, with loan-loss provisions at RUB627 bn, or 2.3 times the overdue loans, as of July 1, 2012.

Investment portfolio declined by RUB9.1 bn, or 0.6%, in June to RUB1 532 bn primarily due to trades with shares. 

The Bank saw a continued growth in its major source of funding: retail deposits and accounts increased by RUB170 bn, or 2.9%, to RUB6.1 trln in June. Furthermore operating activities in June were funded from sources from the Central Bank of Russia, the volumes of which increased by RUB154 bn.

Corporate deposits and accounts declined by RUB43 bn, or 1.7%, to RUB2.5 trln, driven by short-term deposits. Corporate deposits and accounts increased by RUB352 bn, or 16.3% YTD.

Regulatory capital (under CBR regulation No. 215-P) decreased by RUB25 bn in June to RUB1 586 bn, primarily due to payment of dividends for FY2011 as per decision made at the Annual General Shareholder Meeting (payment of RUB47 bn).

Capital adequacy ratio was at 13.7% as of July 1, 2012.