Sberbank: Sber earned RUB1,147.5 bn (X1.6) for 11M 2021 (RAS)

SberBank releases Financial Highlights for 11 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.

December 7, 2021

Key highlights for November:

• SberBank earned net profit of RUB101.6 bn.
• ROE came in at 23.7%, and ROA was 3.3%.
• Due to the 'Green Day' campaign, Sber issued a record loan amount of RUB564 bn to retail clients.
• The number of active users of SberPrime subscription exceeded 4 mn.

Alexandra Buriko, CFO, stated:

"In November, Sber delivered ROE at 23.7%. We celebrated Sber's 180 Anniversary this month and offered discounts and special deals to our clients for Ecosystem products and services, which has a positive impact on retail and corporate lending as well as fee income growth.  Net profit exceeded RUB100 bn in November, and totaled RUB1.147 bn for the first 11 months of 2021."

Comments for 11M 2021:

Net interest income amounted to RUB1,469.9 bn for 11M 2021, and were up by 12.1% from the level of a year ago, led by the loan portfolio expansion.

Net fee and commission income increased by 14.8% y/y to RUB521.0 bn. This growth was driven by transactions with banking cards, including acquiring, income from which was up by 29% y/y. Client transactional activity in November was supported by the seasonal sales that fully offset the effect of the non-working days at the beginning of November.

Operating expenses amounted to RUB614.4 bn and were up by 11.5% as compared to 11M 2020. Growth in operating expenses was led by the revision of employee salaries in July, calendarization of expenses in 2021, as well as accrual of SberSpasibo bonuses to employees in light of the 180-year Anniversary. 

Cost-to-Income ratio came in at 28.7%.

Provision charge including fair-value revaluation totaled RUB107.7 bn for 11M 2021, which was 4.8 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 November 2021, the provision charge amounted to RUB12.4 bn on the back of weaker Ruble against major currencies. The share of overdue loans in total loan portfolio remained stable at 2.3%.

Loan-loss provisions were 2.6 times the overdue loans.

Net profit before income tax for 11M 2021 amounted to RUB1,415.7 bn. Net profit increased 1.6 times, and amounted to RUB1,147.5 bn.

Total assets in November increased by 2.6%, excluding the effect of FX revaluation, to RUB38.1 trn, mainly from lending.

The Bank issued RUB1.2 trn in loans to corporate clients in November, to reach RUB12.4 trn for 11M 2021. The portfolio was up by 2.0% in November, or 8.5% year to date, excluding the effect of FX revaluation, to reach RUB16.75 trn.

Loan production to retail clients in November was a record RUB564 bn, driven by special promos for the Green Day. During the two-day campaign Sber received over 500 ths applications, and originated RUB43 bn in loans. As for 11M 2021, the Bank issued RUB5.3 trn of retail loans, which was 1.4 times higher than a year ago. Sber securitized mortgages in the amount of RUB70 bn in November. Retail portfolio was up by 2.2% in November, excluding the securitization effect, or by 23.3% YTD to reach RUB10.45 trn.

The securities portfolio was up by 1.8% to RUB5.2 trn in November.

Retail client funding increased by 0.2%, excluding the effect of FX revaluation, in November to RUB16.5 trn. The ending balances of the escrow accounts continued to grow, supported by high volumes of mortgage lending, and reached about RUB1.5 trn as of December 1, 2021.

Corporate client funding in November were up by 5.2%, excluding the effect of FX revaluation, to RUB8.8 trn, and were the main source of funding for the loan portfolio growth.

In November, SberBank placed its debut green bonds in the amount of RUB25 bn with a two-year term, and four market bond placements with different tenures in the total amount of RUB42 bn.

Core Tier 1 and Tier 1 capital changed insignificantly in November to RUB3,815 bn and RUB3,965 bn, respectively. 

Total capital in November increased by 0.86% to RUB5,074 bn mainly from earned net profit. The increase in the OFZ yields and respective negative revaluation of the securities portfolio at Fair Value that is reflected through Comprehensive income slowed total capital growth.

CET1 and T1 capital ratios were 10.67% and 11.08%, respectively, as of December 1, 2021. The calculation of the ratios does not include the net profit earned during the period between January and November 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 November increased to RUB35.8 trn, mainly led by the loan portfolio growth and FX revaluation.

* preliminary calculations

Sberbank Financial Highlights for 11 months 2021 (under RAS, non-consolidated)