DGAP-News

Sberbank: Sberbank reports third-quarter 2015 IFRS results - Seite 2

flexible in managing its cost of funding.

The Group's Q3 2015 net fee and commission income came at RUB81.9 bn. The
income from cash and settlement transactions business (RUB76.9 bn)
accounted for a strong 77.5% share in total fees and commissions income in
the third quarter. Sberbank continued to strengthen its domestic market
shares in acquiring at 53% and credit cards at 36.5%. Income from the
banking cards operations increased by 21.8% in Q3 2015 from the same period
a year ago.

Net provision charge for loan impairment for Q3 2015 totaled RUB128.4 bn
compared to RUB102.7 bn for Q3 2014. This translated into the cost of risk
of 279 basis points for the quarter versus 268 basis points a year ago.

* Increase in the cost of risk was driven primarily by the need to create
additional provisions for the revaluation of foreign currency denominated
loans as Ruble devaluated during the quarter (Ruble devaluated 19.3%
relative to USD) and for the Ukrainian assets due to high level of economic
instability.

* Consequently, the cost of risk for corporate loans increased by 54 basis
points to 302 basis points in Q3 2015 relative to the previous quarter of
2015.

* The cost of risk for retail loans dropped by 86 basis points to 211 basis
points in Q3 2015 relative to the previous quarter of 2015 on improving
retail portfolio mix.

The Group's operating expenses for Q3 2015 increased to RUB145.4 bn, up by
9.1% from the same period a year ago. Sberbank standalone operating
expenses increased by 9.8% from the same period a year ago to RUB112.5 bn
under internal calculations, which was significantly slower than the
domestic inflation of 15.7% for the same period.

Total loans, net, increased by 7.1% to RUB17,948.7 bn in Q3 2015 as
compared to Q2 2015. The growth of the corporate loan portfolio was driven
by the Ruble denominated lending. The increase of retail loans was driven
by a healthy demand for mortgages.

Client deposits demonstrated strong growth, which was achieved in both
retail and corporate segments, up by 9.1% and 26.0% respectively in Q3 2015
as compared to the previous quarter of 2015. Current accounts increased by
16.4% in the same period.

Total NPL ratio increased to 5.4% in Q3 2015 from 4.9% in the previous
quarter of 2015 mainly driven by the corporate segment. Coverage level of
the NPL portfolio by provisions decreased to 1.1X in Q3 2015 from 1.2X in
the previous quarter as new non-performing loans were well covered by
collateral.

Renegotiated loan portfolio increased by RUB573.4 bn, or up by 21.1% in Q3
2015 relative to the previous quarter of 2015 to RUB3.3 trn primarily