OREANDA-NEWS. August 08, 2013. Please note that the numbers are calculated in accordance with Sberbank's internal methodology .

Income Statement Highlights for January-July 2013 (as compared to January-July 2012):

Net interest income grew by 15.2% y-o-y

Net fee and commission income grew by 11.6% y-o-y

Operating income before total provisions increased by 13.8% y-o-y

Total provision charge was RUB67.3 bn vs. a RUB25.3 bn charge in January-July 2012

Operating expenses were up by 9.3% y-o-y

C/I ratio declined from 39.7% to 38.1%

Profit before tax amounted to RUB269.9 bn vs. RUB265.0 bn for January-July 2012

Net profit amounted to RUB220.3 bn vs. RUB212.4 bn for January-July 2012

Net interest income came at RUB396.8 bn, up by 15.2% above the January-July 2012 volume:

Interest income increased by RUB140.3 bn basically driven by assets growth;

Interest expenses grew by RUB88.0 bn equally on the back of increased fund-raising and higher interest rates compared to those in January-July 2012.

Net fee and commission income amounted to RUB120.4 bn, up by 11.6%. Non-credit commission income totaled RUB111.6 bn, up by 17.4% y-o-y. Plastic cards and acquiring services remain the major driver of commission income growth: income from those amounted to RUB50 bn, up by 38.0% y-o-y.

Operating income before provisions increased by 13.8% y-o-y.

Operating expenses for 7M 2013 grew up by 9.3% in comparison with expenses for 7M 2012. The rate of growth of operating expenses was slower due to differences in calendar payouts of quarterly staff bonuses in 2012 and 2013. C/I ratio improved from 39.7% for 7M 2012 to 38.1% for 7M 2013. Operating expenses growth excluding staff bonus payouts for 2Q (both for 2012 and 2013) would have been about 13%.

Total provision charges amounted to RUB67.3 bn for January-July 2013 vs. RUB23.5 bn charge a year earlier. The largest increase in spending occurred in Provisions for loan losses and in Provisions for impairment of other assets.

Net income from trading activities reached RUB16.5 bn for 7M 2013, compared to RUB15.8 bn for 7M 2012.

Net profit reached RUB220.3 bn for 7M 2013, what is up to 3.7% higher than for the similar period of 2012.

Assets increased by RUB186 bn in July, or 1.3%, mainly due to the growth of loan portfolio.

The Bank lent more than RUB700 bn to corporate clients in July 2013. About RUB3.3 trln were lent to corporate clients for 7M 2013, that is 9.6% above the last year volume for 7M 2012. Corporate loan portfolio increased by RUB150 bn, or 2.0%, in July.

Retail customers received above RUB220 bn in July, what is the highest volume of monthly loans issued by Sberbank. Overall about RUB1.2 trln were lent to retail clients for 7M 2013, which exceeded (by 9.5%) the lending volumes a year earlier. Retail loan portfolio grew by RUB85 bn, or 3.0%, in July.

Quality of the loan portfolio remained stable: overdue loans accounted for 2.65% of the total loan portfolio in July. Coverage ratio remained strong, with loan-loss provisions at RUB619 bn, or 2.21 times the overdue loans as of August 1, 2013.

Investment portfolio increased by RUB11 bn, or 0.7%, in July mainly due to investment in OFZ bonds.

Active operations funding is still attributed to client deposits and accounts:

Retail deposits and accounts increased by RUB50 bn, or 0.7%, in July, due to deposits and saving certificates. Overall the balance growth for 7M 2013 is faster than for 7M 2012, by 31.6%.

Corporate deposits and accounts decreased by RUB63 bn, or 2.0%, in July due to decrease in current accounts. At the same time the volume of term deposits increased. The balance growth for 7M 2013 is faster than for 7M 2012, by 17.3%.

Funding from the CBR and Federal Treasury accounted to 8% of total funding.

Regulatory capital (under CBR regulation No. 215-P) came to RUB1,843 bn as of August 1, 2013, as per preliminary calculations. Capital increase was mainly due to net profit in July. At the same time, capital growth was restricted by additional investments in the Bank subsidiaries. As a result capital increased by RUB17 bn in July.

Capital adequacy ratio of the Bank (under RAS) amounted to 13.0% as of August 1, 2013.