OREANDA-NEWS. December 14, 2011. Please note that the numbers are calculated in accordance with Sberbank’s internal methodology

Income Statement Highlights for 11M 2011 (as compared to 11M 2010)

Net interest income grew 14.9% y-o-y

Net fee and commission income rose by 6.8% y-o-y

Operating income before total provisions increased by 12.0% y-o-y

Total provisions amounted to RUB7.3 bn vs. provision charge of RUB173.2 bn for the same period a year ago

Operating income after total provisions increased 1.6-fold y-o-y

Operating expenses rose by 28.3% y-o-y

Profit before tax amounted to RUB363.9 bn vs. RUB189.7 bn for 11M 2010

Net profit totaled RUB297.6 bn vs. RUB152.5 bn for 11M 2010 

Operating income before total provisions increased by 12.0% y-o-y for 11M 2011.

Net interest income rose 14.9% y-o-y, which was mainly due to the increase in income from retail lending as the portfolio expanded, and the reduction in interest expenses on customer accounts and amounts due to other banks as the cost of funding fell.

Net fee and commission income was up by 6.8% y-o-y owing to increased volume of fee-generating operations, primarily operations with bank cards. Income from bank cards’ operations increased 1.5-times as a result of growth in the number of cards issued and volume of related transactions.

Gains from trading on financial markets decreased by 21.6% y-o-y for 11M 2011. Volatility on the capital and FX markets adversely affected income from securities and conversion operations, but led to significant gains from transactions with precious metals on the back of increased volumes of customer operations. Net gain from trading on financial markets for 11M 2011 amounted to RUB15.8 bn.

The Bank put aside RUB7.3 bn in total provisions for 11M 2011 vs. provision charge of RUB173.1 bn for 11M 2010. The increase in total provisions in November was due to loan portfolio expansion, growth in credit-line-related liabilities and incremental provisions attributable to loan restructuring.

Operating expenses rose by 28.3% y-o-y, which was mainly due to higher staff costs on the planned increases in salaries, costs incurred in relation to the Bank’s continuing implementation of its strategy and business development as well as one-off expenses related to the Bank’s 170-year anniversary events.  Furthermore, business growth is accompanied with increases in amortization, taxes, and mandatory fee payments to the state-deposit insurance system.

Profit before tax totaled RUB363.9 bn for 11M 2011 and net profit was RUB297.6 bn. Both figures were almost double the amounts for 11M 2010 and made historical record highs.

The Bank’s assets increased by more than RUB1.3 trln or 15.7% year-to-date to RUB9.9 trln for 11M 2011. In November assets grew by RUB365 bn or 3.8%, including RUB362 bn from loan portfolio expansion:

The Bank lent Russian corporate clients about RUB580 bn in November or more than RUB4.7 trln year-to-date. As of December 1, 2011, the balance of corporate loan portfolio exceeded to RUB6 trln, up 26.1% for 11M 2011. 

The Bank issued over RUB120 bn of retail loans in November and over RUB1 trln for 11M 2011. The retail loan portfolio increased by 28.5% year-to-date to RUB1,673 bn as of December 1, 2011.

The quality of the loan portfolio continued to improve: the overdue loans as a percentage of the total book decreased to 3.72% from 5.04% in the beginning of the year and 4.01% as of November 1, 2011. The coverage ratio remained strong with loan-loss provisions at RUB646 bn or 2.26 times the overdue loans as of December 1, 2011.

Investment portfolio increased by RUB16 bn in November. As a result, the share of government bonds fell from 53% to 52%. The investment portfolio amounted to RUB1,479 bn as of December 1, 2011.

Retail accounts and deposits increased by RUB76 bn to RUB5,279 bn, up 9.8% year-to-date.

Corporate accounts and deposits added RUB94 bn in November to RUB1,949 bn, mainly due to growth in term deposits.

Regulatory capital (under CBR regulation No. 215-P) rose by RUB21 bn in November to RUB1,508 bn on net profit increase. The regulatory capital increased by 21.4% year-to-date.

Capital adequacy ratio stood at 16% as of December 1, 2011. The adequacy ratio subsided in November mainly due to a significant expansion of the loan portfolio, which is relevant for calculation of the ratio.

ROE stood at 27.6% for 11M 2011.

ROAwas 3.6% for 11M 2011.