OREANDA-NEWS. December 09, 2013. Please note that the numbers are calculated in accordance with Sberbank’s internal methodology.

Income Statement Highlights for 11M 2013 (as compared to 11M 2012):
Net interest income grew by 16.2% y-o-y
Net fee and commission income grew by 20.0% y-o-y
Operating income before total provisions increased by 15.6% y-o-y
Total provision charge was RUB113.5 bn vs. a RUB41.6 bn charge in 11M 2012
Operating expenses were up by 11.5% y-o-y
C/I ratio improved from 40.3% to 38.9%
Profit before tax amounted to RUB430.7 bn vs. RUB418.4 bn for 11M 2012
Net profit amounted to RUB350.5 bn vs. RUB332.3 bn for 11M 2012

Net interest income came at RUB652.3 bn, up 16.2% compared to 11M 2012:
Interest income increased by RUB214.3 bn primarily driven by loan portfolio growth (both retail and corporate). Share of interest income from retail loans in total interest income keeps growing steadily (~ up 4pp per year) – as of December 1, 2013 this share reached 35%.
Interest expenses grew by RUB123.1 bn, of which RUB74.5 bn (or 60%) were attributed to retail deposit expenses.

Net fee and commission income amounted to RUB198.7 bn, up by 14.5% y-o-y. Noncredit commissions income growth outpaced the growth rate of net interest income, increasing 20.0% vs. 16.2% respectively. Noncredit commissions reached RUB186.1 bn, of which RUB83.9 bn were contributed by transactions with bank cards and acquiring.

Operating income before provisions increased by 15.6% y-o-y and amounted RUB890.2 bn.

Operating expenses for 11M 2013 increased by 11.5% in comparison to expenses for 11M 2012. The slowdown in OpEx growth was related to initiation of cost optimization program. C/I ratio improved from 40.3% for 11M 2012 to 38.9% for 11M 2013.

Total provision charges amounted to RUB113.5 bn for 11M 2013 vs. RUB41.6 bn charge a year earlier. Total provision charges in November were RUB13.9 bn.

Profit before tax amounted to RUB430.7 bn vs. RUB418.4 bn for 11M 2012.

Net profit reached RUB350.5 bn for 11M 2013, up 5.5% y-o-y.

Assets increased by RUB412 bn in November, or 2.7%, mainly due to growth of loan portfolio and amounts placed in securities.

The Bank lent about RUB600 bn to corporate clients in November, which was 12% higher than the monthly average for the current year. About RUB5.9 trln were lent to corporate clients for 11M 2013, which exceeded 11M 2012 amount by more than RUB800 bn. Corporate loan portfolio increased by RUB259 bn, or 3.2%, in November, showing maximum growth for 11M 2013. Revaluation of foreign currency loans due to rising dollar against ruble in November had a positive impact on the loan portfolio growth. The portfolio growth since the beginning of 2013 amounted to +10.7%.

About RUB170 bn were lent to retail clients in November. Retail loan portfolio grew by RUB80.7 bn, or 2.6%, in November, which is significantly higher than the average 11M 2013 amount. The portfolio growth since the beginning of 2013 amounted to +27.9%.

Quality of the loan portfolio remained stable: overdue loans remained 2.5% in November. Coverage ratio remained strong, with loan-loss provisions at RUB629 bn, or 2.19 times the overdue loans as of December 1, 2013.

Securities portfolio increased by RUB80 bn, or 4.5%, in November mainly due to investment in OFZ federal bonds.

The clients’ funds remain the core source of funding the Bank’s operations:

Retail deposits and accounts amounted to RUB7,398 bn as of December 1, increasing by 2.0% in November. Growth in deposits for 11M 2013 (+11.0%) outpaced the increase in deposits portfolio for the same period last year.

Corporate deposits and accounts amounted to RUB3,078 bn as of December 1, increasing by 3.8% in November; YtD +10.6%.

Regulatory capital (under CBR regulation No. 215-P) came to RUB1,966 bn as of December 1, 2013, as per preliminary calculations. Capital increased by RUB30 bn mainly due to net profit while revaluation of investments in the Bank subsidiaries narrowed the increase in capital.

Capital adequacy ratio of the Bank (under RAS) amounted to 12.9% as of December 1, 2013.