Sberbank: SberBank earned RUB937 bn (X1.7) for 9M 2021 (RAS)

SberBank releases Financial Highlights for 9 months of 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.

 

October 7, 2021

Key highlights for September:

• SberBank earned net profit of RUB109.1 bn.
• ROE came in at 26.0%, and ROA was 3.7%.
• Retail loan portfolio exceeded RUB10 trn, and was up by 2.2% for the month on the back of record loan production of RUB534 bn.
• Client funding grew by 1.7%, excluding the effect of FX revaluation.
• The number of active SberPrime subscribers grew to 3.3 mn.

 

 

Alexandra Buriko, CFO, stated:

"In the first 9 months of 2021, SberBank earned RUB937 bn in net profit, and delivered ROE of 25.5%. In September, approximately 29 mn pensioners and servicemen each received a one-time state payment into their SberBank accounts. Along with the state-support measures our clients can also take advantage of product and service offerings that we have launched in the Sber ecosystem. These measures, together along with organic business growth have led to an increase in the number of active SberPrime subscribers to 3.3 mn."

 

Comments for 9M 2021:

Net interest income amounted to RUB1,184.2 bn for 9M 2021, and were up by 12.2% as compared to the same period a year ago. Growth was due to loan portfolio expansion and rising yield from floating-rate working assets along with the market rate cycle.

Net fee and commission income increased by 16.1% to RUB423.5 bn. Growth was mainly driven by transactions with banking cards and acquiring. One-time distribution of state funds to pensioners and servicemen had an additional positive impact on client transactional activity.

Operating expenses were up by 10.9% as compared to 9M 2020, and amounted to RUB485.1 bn. Growth in operating expenses was impacted by the revision of employee salaries in July, as well as the calendarization of expenses in 2021. Cost-to-Income ratio came in at 27.9%. 

Total provision charge including fair-value revaluation totaled RUB98 bn for 9M 2021, which was 5 times less than the charge a year ago, when SberBank made significant provisions on the back of worsening macro environment and the pandemic constraints. In September 2021, provision charge amounted to RUB2.4 bn, including a release of RUB4.5 bn in provisions due to the ruble strengthening against major currencies. The share of overdue loans in total loan portfolio remained at 2.3%.

Loan-loss provisions were 2.8 times the overdue loans. 

Net profit before income tax for 9M 2021 amounted to RUB1,155.9 bn. Net profit increased 1.7 times, and amounted to RUB936.7 bn.

Total assets in September increased by 0.9%, net of FX revaluation, to exceed RUB36.4 trn from lending.

The total loan portfolio was up by 1.5%, net of FX revaluation, in September to exceed RUB26.1 trn.

The Bank issued RUB1.2 trn in loans to corporate clients in September, or over RUB9.9 trn for 9M 2021, which was up by 1.0% in September, or 4.6% year to date, net of FX revaluation. The corporate loan portfolio exceeded RUB16 trn as of October 1, 2021.

Loan production to retail clients in September hit a record of RUB534 bn, of which RUB274 bn were consumer unsecured loans, and about RUB260 bn were mortgages. Different programs with developers, support programs, and digital services enhance the availability of mortgages.

Retail portfolio was up by 2.2% in September to exceed RUB10 trn as of October 1, 2021.

The securities portfolio was down by 0.2% to RUB5,156.3 bn in September, due to redemption of corporate bonds and revaluation of Eurobonds.

Retail client funding increased by 1.2%, net of FX revaluation, in September to RUB16.3 trn, in part from a one-time distribution of state funds in September. The ending balances of the escrow accounts continued to grow, supported by high volumes of mortgage lending, and exceeded RUB1.3 trn as of October 1, 2021.

Corporate client funding in September came up by 2.6%, net of FX revaluation, mainly from the term deposits, to reach RUB8.5 trn.

Total client funding in September were up by 1.7% net of FX revaluation to RUB24.8 trn.

In September, for the first time, SberBank placed zero-coupon bonds in the amount of RUB15 bn, with a 3.5-year tenure. 

Core Tier 1 and Tier 1 capital changed insignificantly in September to RUB3,819 bn and RUB3,969 bn, respectively. 

Total capital in September increased by RUB87 bn, or by 1.8%, mainly due to earnings for the period.

CET1 and T1 capital ratios were 11.17% and 11.61%, respectively, as of October 1, 2021. The calculation of the ratios does not include the net profit earned during the period between January and September 2021 inclusively, until it is audited, as per the CBR Regulation 646-P on the methodology of determining the amount of capital adequacy of lending institutions (Basel III). 

Risk-weighted assets* in September were merely unchanged.

 

Capital, RUB bn	1 Oct21*	1 Sep21	1 Oct21* / 1 Sep21	1 Jan21	1 Oct21*/ 1 Jan21
Core Tier 1 capital N1.1	3 819	3 826	-0.16%	3 581	6.65%
Tier 1 capital N1.2	3 969	3 976	-0.16%	3 731	6.38%
Total capital N1.0	5 016	4 929	1.77%	4 661	7.63%
Capital adequacy ratios, %
Core Tier 1 capital N1.1, min 4.5%	11.17%	11.19%	-0.02 pp	11.19%	-0.02 pp
Tier 1 capital N1.2, min 6.0%	11.61%	11.63%	-0.02 pp	11.66%	-0.05 pp
Total capital N1.0, min 8.0%	14.65%	14.40%	0.25 pp	14.54%	0.11 pp
Risk-weighted assets, RUB bn	34 232	34 228	0.01%	32 042	6.83%

* preliminary calculations

Sberbank Financial Highlights for 9 months 2021 (under RAS, non-consolidated)