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Sberbank: Sberbank: Sberbank releases Financial Highlights for 11M 2016 (under RAS; non-consolidated)

EquityStory.RS, LLC-News: Sberbank / Key word(s): Monthly Figures/Monthly
Figures
Sberbank: Sberbank: Sberbank releases Financial Highlights for 11M 2016
(under RAS; non-consolidated)

07.12.2016 / 08:19
The issuer is solely responsible for the content of this announcement.

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Sberbank releases Financial Highlights for 11M 2016 (under RAS; non-
consolidated)

Please note that the numbers are calculated in accordance with Sberbank's
internal methodology.

December 7, 2016

Key highlights for November, 2016:

- The Bank earned net profit of RUB53.4 bn

- Corporate loan portfolio increased by RUB254 bn in nominal terms (in
real terms by RUB131 bn, or by 1.1%). Retail loans portfolio increased
by RUB21 bn, or 0.5%

- Client funds increased by RUB303 bn in nominal terms (in real terms by
RUB164 bn, or by 1.0%)

Deputy Chairman of Sberbank Alexander Morozov stated:

"A pickup in economic activity in November led to one of strongest growth
in real terms in both loan portfolio and client funds this year - by RUB152
bn and RUB164 bn correspondingly. This combined with our improved
efficiency, gives us confidence in achieving decent full-year results.

Comments for 11M 2016:

Net interest income increased by 44.9% to reach RUB1 trln: Interest income
increased by 4.6%, mostly driven by the increase in volume of working
assets; Interest expense came down by 21.7% due to improving liabilities
structure with cheaper funding and decrease in market rates compared to 11M
2015.

Fee and commission income was up by 21.6% to RUB280.5 bn compared 11M 2015
mainly driven by transactional business with bank cards and acquiring.
Income from bank insurance and settlements also contributed to Fee and
commission income.

Operating expense increased by 12.6%, which was significantly slower than
pre-provision operating income growth (32.7%). Operating expenses increase
was moderate despite the continuing effect from wage indexation. The Bank
continues to implement efficiency increase and operating cost-cutting
program. Cost-to-Income ratio decreased from 38.7% for 11M 2015 to 32.8%
for 11M 2016.

Total provision charges amounted to RUB22.6 bn in November. Total provision
charge for 11M 2016 amounted to RUB271 bn, or 73% of 11M 2015 figure.
Significant impact on the reserves during the year was due to the
strengthening of the ruble against major foreign currencies. The Bank
continues to form loan-loss provisions in-line with the requirements of the
Central Bank of Russia. Provision coverage of overdue loans increased from
1.9 in the beginning of the year to 2.4 in November.