Sberbank reports 2Q 2020 Net Profit of RUB166.7 bn under International Financial Reporting Standards (IFRS)Source: EQS
|RUB bn, unless stated otherwise||2Q||2Q||1Q||2Q||2Q||6M||6M||6M|
|% change||% change||% change|
|Net interest income||398.5||353.1||371.9||12.9%||7.2%||770.4||690.6||11.6%|
|Net fee and commission income||120.0||116.7||126.4||2.8%||-5.1%||246.4||219.6||12.2%|
|Other non-interest income / (expense) 3||-3.6||17.0||10.3||-121.2%||-135.0%||6.7||52.5||-87.2%|
|Operating income before provisions 2||514.9||486.8||508.6||5.8%||1.2%||1 023.5||962.7||6.3%|
|Net charge related to change in asset quality:||-132.9||-8.8||-167.1||1410.2%||-20.5%||-300.0||-54.3||452.5%|
|Net credit loss allowance charge for debt financial assets||-126.5||-9.2||-138.0||1275.0%||-8.3%||-264.5||-26.5||898.1%|
|Negative revaluation of loans at fair value due to change in credit quality||-6.4||0.4||-29.1||-1700.0%||-78.0%||-35.5||-27.8||27.7%|
|Net loss allowance / provision for credit related commitments||-0.7||-2.4||-14.6||-70.8%||-95.2%||-15.3||1.9||-905.3%|
|Staff and administrative expenses||-172.4||-168.5||-169.2||2.3%||1.9%||-341.6||-319.2||7.0%|
|Net profit from continuing operations||166.7||245.9||120.5||-32.2%||38.3%||287.2||472.0||-39.2%|
|Profit / (Loss) from discontinued operations||0.0||4.4||0.0||-100.0%||NA||0.0||4.9||-100.0%|
|Earnings per ordinary share from continuing operations. RUB||7.78||10.70||5.60||-27.3%||38.9%||13.38||21.23||-37.0%|
|Total comprehensive income from continuing operations attributable to the shareholders of the Bank||229.5||281.1||121.1||-18.4%||89.5%||350.6||502.3||-30.2%|
|Ratios based on continuing operations|
|Return on equitybased on profit from continuing operations||14.2%||24.9%||10.6%||--||--||12.4%||23.7%||--|
|Return on assets based on profit from continuing operations||2.1%||3.4%||1.5%||--||--||1.8%||3.3%||--|
|Net interest margin||5.61%||5.41%||5.49%||--||--||5.56%||5.34%||--|
|Cost of risk (amortized cost loans)||224 bp||15 bp||251 bp||--||--||238 bp||30 bp||--|
|Cost of risk (amortized cost and FV loans)||225 bp||14 bp||292 bp||--||--||258 bp||55 bp||--|
|Cost-to-income ratio 2||33.5%||34.6%||33.3%||--||--||33.4%||33.2%||--|
Balance Sheet Highlights
|RUB bn. unless stated otherwise||30.06.2020/||30.06.2020/|
|% change||% change|
|Gross total loans1:||22 852.1||23 166.0||21 749.4||-1.4%||5.1%|
|Corporate loans 1||14 582.1||14 972.0||13 865.4||-2.6%||5.2%|
|Retail loans 1||8 270.0||8 194.0||7 884.0||0.9%||4.9%|
|Securities portfolio||4 845.0||4 671.2||4 369.7||3.7%||10.9%|
|Assets 3||32 383.4||32 068.9||29 958.9||1.0%||8.1%|
|Total deposits:||23 312.4||23 061.8||21 574.4||1.1%||8.1%|
|Retail deposits||15 108.2||14 669.9||14 209.6||3.0%||6.3%|
|Corporate deposits||8 204.2||8 391.9||7 364.8||-2.2%||11.4%|
|Book value per share6. RUB||213.4||203.2||198.3||5.0%||7.6%|
|Net Loans / Deposits ratio (LDR)||90.9%||93.5%||94.4%||--||--|
|Stage 3 + POCI loans / total gross loans at amortized cost||7.5%||7.4%||7.5%||--||--|
|Provision coverage of Stage 3 + POCI loans||102.0%||98.2%||89.3%||--||--|
Net interest income increased by 12.9% y/y in 2Q 2020 to
Interest income was down by 1.8% y/y in 2Q 2020 to
- Growth in retail loan portfolio decelerated to 0.9% in 2Q 2020 and the balance came in at
RUB8.3 trndue to the slowdown within the pandemic-related restrictions. The share of retail lending in the total loan portfolio was up by 0.9 pp to 36.2%. The yield on retail loans declined by 20 bp to 11.9%.
- Mortgage portfolio grew by 1.9% in 2Q 2020, benefiting from robust demand for both state and bank's own subsidized mortgage programs. The share of subsidized lending accounted for about 30% of mortgage origination by the end of the quarter.
- Consumer loan portfolio remained virtually unchanged for the quarter (-0.2%).
- Corporate loan portfolio1 grew by 1.8% adjusted for the impact of FX revaluation in 2Q 2020 to
RUB14.6 trn, and was down by 2.6% in nominal terms due to stronger ruble. The yield on corporate loans was down by 10 bp for the quarter to 7.1%.
- Corporate loan portfolio1 grew by 1.8% adjusted for the impact of FX revaluation in 2Q 2020 to
- The bank has been actively participating in the state support programs for business and signed loan agreements for the amount of over
RUB330 bnup until now.
- Retail funding increased by 3% in 2Q 2020 to
RUB15.1 trn, supported among other factors by direct state payments, including support programs for families with kids. The average cost of retail funding decreased by 60 bp to 4.1%.
- Corporate funding was down by 2.2% in 2Q 2020 to
RUB8.2 trn, and grew by 2.0% adjusted for FX revaluation. The average cost of corporate funding was down by 40 bp to 3.1%.
- In 2Q 2020,
Sberbankissued RUB20 bnof four-year exchange-traded bonds, and thus the outstanding balance of exchange-traded bonds totaled RUB465.5 bn.
Growth in the Group net fee and commission income slowed in 2Q 2020 to 2.8% y/y due to the lockdown constrains to
- Net income from bank cards was down by 6% y/y, as activity started to restore only in the final month of the quarter. In the meantime, the lockdown was a natural trigger for cashless penetration in client habits: almost 40% of
Sberbankclients opted for purely cashless transactions in 2Q 2020.
- Transport acquiring became available in 116 Russian cities.
- Monthly audience of DomClick digital platform increased almost 1.5-times for the quarter to 7.5 mln users. A remarkable growth in demand for non-financial services stemmed both from mortgage and non-mortgage clients: usage of online property title registration by clients without a mortgages showed a 5-fold increase on the primary market and grew 8 times on the secondary.
- A gradual release of lockdown constraints encouraged transactional activity at the end of the quarter and supported growth in fees from cash and settlement transactions (+8.6% y/y).
The Group operating expenses (staff and administrative) were up by 2.3% y/y to
The Group Cost-to-Income ratio2 came in at 33.5% in 1Q 2020, down by 1.1 pp y/y.
Net credit loss allowance charge for loans at amortized costs amounted to
In 2Q 2020, credit quality of the loan portfolio expectedly worsened, which was evidenced by the increase in Stage 2 loans mainly driven by corporate borrowers affected by COVID-19 related constraints. At the same time, the share of impaired loans, including the POCI loans, in total gross loan portfolio at amortized cost increased for the quarter by 0.1 pp to 7.5%.
By the end of 2Q 2020, total corporate exposure that had restructurings under state programs, Bank's own program's and individual decisions, exceeded
Total provision coverage of Stage 3 and POCI loans was up by 3.8 pp compared to the previous quarter to 102.0% due to conservative risk-management approach in crisis environment.
Selected Capital Adequacy Results4
The data in the table is in accordance with standardized and IRB approaches applied to the corresponding assets groups.
Risk-weighted assets under IRB approach were assessed as of
|Under Basel III|
|RUB bn, unless stated otherwise|
|Total Tier 1 capital||4 721.2||4 489.1||4 375.4||5.2%||7.9%|
|Total capital||4 863.2||4 648.5||4 433.5||4.6%||9.7%|
|Risk-weighted assets||31 936.4||33 719.4||32 634.1||-5.3%||-2.1%|
|Credit risk||27 538.6||29 308.4||28 062.7||-6.0%||-1.9%|
|Operational risk||3 486.8||3 486.8||3 486.8||0.0%||0.0%|
|Market risk||911.0||924.2||1 084.6||-1.4%||-16.0%|
|Common equity Tier 1 capital adequacy ratio||14.78%||13.31%||13.41%||--||--|
|Total capital adequacy ratio||15.23%||13.79%||13.59%||--||--|
The Group's total capital reached
The Group's risk-weighted assets contracted by 5.3% to
The Group's leverage ratio came in at 13.7% in 2Q 2020.
Common equity Tier 1 capital adequacy ratio increased by 147 bp to 14.78%, while total capital adequacy ratio improved by 144 bp to 15.23%.
1 Before loan loss allowance and including loans at amortized cost and at fair value
2 Operating income before provisions for debt financial assets, credit related commitments and revaluation of loans at fair value due to change in credit quality
3 Other non-interest income / (expense) includes: Net losses from non-derivative financial instruments at fair value through profit or loss (excluding revaluation of loans at fair value due to change in credit quality); Net gains from financial instruments at fair value through other comprehensive income; Net gains from derivatives, trading in foreign currencies, foreign exchange and precious metals accounts translation; Net losses arising on initial recognition of financial instruments and loan modification; Impairment of non-financial assets; Net (charge for) / recovery of other provisions and allowances (excluding Net loss allowance / provisions for credit related commitments); Revenue of non-core business activities; Cost of sales and other expenses of non-core business activities; Net premiums from insurance and pension fund operations; Net claims, benefits, change in contract liabilities and acquisition costs on insurance and pension fund operations; Income from operating lease of equipment; Expenses related to equipment leased out; Other net operating (expense) / income
4 Total equity attributable to shareholders of the Bank / Total numbers of shares outstanding (ordinary + preferred)
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|ISIN:||US80585Y3080, RU0009029540, RU0009029557, US80585Y4070|
|EQS News ID:||1105827|
|End of Announcement|