Sberbank releases Financial Highlights for January 2021
(under RAS, non-consolidated)
The numbers are calculated in accordance with Sberbank's internal methodology.
Please note that some minor changes became effective in Sberbank's internal methodology starting from January 1, 2021. Therefore, the numbers for 2020 have been recalculated to make them comparable.
The effect of subsequent events is excluded from the numbers as of January 1, 2021.
February 5, 2021
Key highlights for January:
Alexandra Buriko, CFO, stated:
"In January Sberbank earned a net profit of RUB86.7 bn. High lending activity in the second half of 2020 and focus on increasing efficiency ensured ROE over 20%. We see that the majority of our borrowers have returned to their regular debt payment schedules after the end of payment holidays, which sends positive signals in regard to asset quality."
Comments for January 2021:
Net interest income increased by 16.3% as compared to January 2020 and amounted to RUB129.6 bn. Interest income growth was driven by loan expansion and lower cost of funding on the back of key rate cuts in 2020. Furthermore, there is continued positive effect from reduced allocations to deposit insurance fund from 2Q 2020.
Net fee and commission income was RUB36.9 bn (up by 1.5% y-y in January). The main growth driver was bank cards operations that were up by 18% y-y in January. The growth of share of cashless trade turnover, which, according to SberIndex stats, reached its historical high of 55.9% at the end of 2020, contributed to increased income from acquiring. The offsetting factor to net fee and commission income growth was more modest income from cash transactions as a result of increased penetration of cashless operations as well as calendarization of expenses on loyalty programs and text messaging.
Operating expenses amounted to RUB44.4 bn and were up by 9.0% as compared to January of last year mainly due to more even accounting for certain administrative and staff costs. The underlining operating expenses growth excluding the methodological changes in January was substantially below the inflation, in part also thanks to the continued costs optimization program.
Cost-to-income ratio improved to 23.3% vs. 24.9% a year ago.
Credit risk charge including fair-value revaluation of loans was RUB38.5 bn in January. The weakness of Ruble against major currencies during the month led to additional provisioning of about RUB14 bn for foreign currency denominated loans without their asset quality deterioration. The credit risk charges would have been similar to those of January last year excluding FX-driven provisioning. Loan coverage ratio stood at 2.3 times the overdue loans.
Net profit before income tax came in at RUB107.4 bn in January 2021, while net profit amounted to RUB86.7 bn.
Total assets increased by 1.1% to RUB33.5 trn as of February 1, 2021 mainly due to growth of loans and highly liquid assets (part of short-term liquidity management) and FX fluctuations.
The Bank issued RUB0.7 trn to corporate clients in January. The corporate loan portfolio was up by 0.5% to RUB15.5 trn as of February 1, 2021 mainly from the effect of FX revaluation.
The Bank issued RUB291 bn to retail clients in January, which was a record amount for this month. The Bank's digital channels are great contributors to lending. Retail loan portfolio grew by 0.7% and exceeded RUB8.5 trn.
Share of overdue loans in total loan portfolio merely changed and was at 3.2%.
Securities portfolio was unchanged at RUB5.2 trn in January.
Retail client funding traditionally for the beginning of the year decreased by 2.8%, or by RUB0.4 trn, which corresponds to the seasonality trends on the back of massive inflows of funds in December 2020 of RUB0.9 trn. At the same time the ending balances in foreign currencies were up in January.
Corporate client funding increased by 0.7% in January mainly on FX revaluation.
The total client funding as of February 1, 2021 reached RUB23.1 trn.
In January the Bank issued subordinated bonds in the amount of RUB56 bn with a ten year maturity, callable in five years, and a 7% coupon for the first five year term.
Core Tier 1 and Tier 1 capital little changed in January and stood at RUB3,583 bn and RUB3,733 bn respectively. The net profit for 2020 will be included in calculation of the Core Tier 1 and Tier 1 capital only upon annual audit.
Total capital grew by 0.5% for the month to RUB4,763 bn mainly due to earnings for the period.
Risk-weighted assets* increased by RUB0.2 trn in January to RUB32.3 trn mainly due to loan portfolio growth.
Sberbank Financial Highlights for January 2021 (under RAS, non-consolidated)
|ISIN:||US80585Y3080, RU0009029540, RU0009029557, US80585Y4070|
|EQS News ID:||1166114|
|End of Announcement||EQS News Service|