OREANDA-NEWS. June 10, 2013. Please note that the numbers are calculated in accordance with Sberbank’s internal methodology, which incorporates a number of changes effective May 17, 2013.
 
Income Statement Highlights for 5M 2013 (as compared to 5M 2012):

Net interest income increased by 15.8% y-o-y

Net fees & commissions income increased by 8.1% y-o-y

Operating income before provisions increased by 13.3% y-o-y

Total provision charge reached RUB42.8 bn vs. an RUB11.6 bn charge for 5M 2012

Operating expenses were up by 12.5% y-o-y

C/I ratio declined from 38.3% to 38.1%

Profit before tax amounted to RUB191.4 bn vs. RUB194.2 bn for 5M 2012

Net profit totaled RUB156.8 bn vs. RUB154.9 bn for 5M 2012

Net interest income came at RUB279.0 bn, up by 15.8% y-o-y compared to 5M 2012:

Interest income increased by RUB102.7 bn, primary driven by growth in assets;

Interest expenses grew by RUB64.7 bn, due to both growth in volumes of funding and higher levels of interest rates compared to 5M 2012.

Net fees & commissions income increased by 8.1% y-o-y to RUB82.5 bn. Growth in commissions income unrelated to lending reached RUB10.7 bn, or 16.3%. The main driver of fees & commissions income were transactions with credit cards, including acquiring, - income from which exceeded RUB34 bn, up 38.8% y-o-y compared to 5M 2012.

Operating income before provisions increased by 13.3% y-o-y, outpacing the rate of growth of operating expenses (+12.5%), which led to an improvement in C/I ratio to 38.1% from 38.3%.

Operating expenses growth, compared to 4M 2013, subsided primarily due to staff costs, attributed to differences in dates of payment of remuneration in 2012 and 2013. Staff costs increased by 10.1% y-o-y for 5M 2013.

Total provision charges amounted to RUB42.8 bn for 5M 2013 vs. RUB11.6 bn charge a year earlier, mainly due to provisioning of the loan portfolio and other assets.

Net income from trading activities reached RUB9.9 bn, down by RUB4.2 bn compared to 4M 2013, caused majorly by revaluation of investments in DenizBank that were affected by Turkish lira FX changes.

The cumulative effect from growth of provision charges and declining income from trading on net profit for 5M 2013 was softening of growth to 1.2% y-o-y to RUB156.8 bn.

Assets increased by RUB252 bn in May, or 1.8%, influenced by the following factors: increasing volumes of lending, amounts due from banks and growing funds on the NOSTRO account at the CBR related to short-term liquidity management.

The Bank lent about RUB390 bn to corporate clients in May 2013, which exceeded the lending volumes a year earlier. Corporate loan portfolio increased by RUB19 bn, or 0.3%, in May.

Retail customers received about RUB180 bn in loans in May. Positive lending dynamics was triggered by promo-campaigns for consumer loans and mortgages. Retail loan portfolio grew by RUB69 bn, or 2.6%, in May.

The quality of the loan portfolio remains stable: the share of overdue loans increased insignificantly from 2.82% to 2.87%. Coverage remained high, with loan-loss provisions at RUB622 bn, or 2.1 times the overdue loans as of June 1, 2013.

Investment portfolio decreased by RUB24 bn, or 1.4%, in May as a result of sale and redemptions of a number of OFZ series and corporate bonds.

Retail deposits and accounts ending balance in May saw a decline of 0.9%, partially explained by outflow of funds that were initially placed with the Bank on current accounts at the end of April before the extended May holidays. Retail deposits and accounts balance increased by RUB290 bn for 5M 2013, which was RUB65 bn greater than the increase for the same period last year.

Corporate deposits and accounts increased by RUB114 bn, or 3.8%, in May from inflow of funds onto current accounts. The ending balance increased by 10.3%, or RUB288 bn, for 5M 2013.

Regulatory capital (under CBR regulation No. 215-P) came to RUB1,818 bn as at June 1, 2013 as per preliminary calculations. Capital increased by RUB31 bn in May, mainly attributed to net profit.

Capital adequacy ratio of the Bank (under RAS) increased to 13.5% in May, attributable to growth in capital.