Sberbank Europe AG posted a net profit of EUR 5.6 mio for 2013.

Sberbank Europe Group achieved turn-around

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Mag. Linda Michalech
Corporate Communications Manager

Sberbank Europe AG
Tel.: +43 1 22732 1300
Mobile: +43 664 8891 3662
linda.michalech@sberbank.at

Sberbank Europe Group achieved turn-around

Sberbank Europe AG published its Annual consolidated Financial Statements for 2013 and posted a net profit of EUR 5.6 mio.

Sberbank Europe posted a net profit of EUR 5.6 mio for the year ended 31 December 2013 and achieved a turn-around after significant losses of EUR 265 mio in 2012.

Loans to customers (net) grew by 15% to EUR 8,115 mio as compared to EUR 7,034 mio in 2012. Loan portfolio growth is a result of higher volume of loans granted by the local banks and due to the ramp up of corporate business in Austria. 

Deposits due from clients grew by 13% to EUR 6,725 mio compared to EUR 5,942 mio in 2012.

In 2013, the proportion of non-performing loans in Sberbank Europe’s total gross loans decreased to 14.5% compared to 15.3% in 2012.

Sberbank Europe’s net interest margin increased by 0.02 % as compared to 2012 and stood at 2.53%.

Mark Arnold, CEO of Sberbank Europe, said: “2013 was a turn-around year for our European operations. After significant losses in 2012 we have generated a net profit of around EUR 6 mio. Excluding Hungary, Sberbank Europe’s network banks achieved in 2013 their best financial result in the history of the group.” 

In 2013, both loan and deposit market shares grew above market. The main contributing countries were Slovakia, Slovenia, and the Czech Republic. 

“We have completed our rebranding, invested in our IT systems and built up the Vienna headquarters both as a management holding and a central hub for corporate business”, adds Arnold. 

Expansion to Germany and Digital Banking

With capital increases from its owner, amounting to around EUR 480 mio in 2013, and a debut syndicated term loan facility for EUR 350 million equivalent, provided by some of the most renowned international financial institutions in March 2014, new business, especially from Large Corporates, will be served. “The success of this inaugural syndicated loan transaction highlights the excellent relationships and trust that Sberbank Europe enjoys with financial institutions all over the world”, states Arnold. “This will support our growth strategy and serve to refinance our growing corporate loan portfolio.” The Vienna headquarters of Sberbank Europe will serve as the central hub for large corporate clients to bundle expertise and client relationship management.

Leveraging the Austrian banking license, Sberbank Direct, a 100% subsidiary of Sberbank Europe AG, will be launched as a branch of Sberbank Europe AG in Germany in 2014. The German subsidiary will operate as a flexible, fast and effective funding tool for Sberbank Europe AG, offering deposit products at attractive conditions: “Sberbank Direct will be established as a purely online bank and will offer online consumer deposits exclusively for private individuals via direct sales channels”, states Arnold. 

In the upcoming years the branch network in Central and Eastern Europe will be complemented by innovative digital banking solutions. For small and medium enterprises (SME) a new customer approach, clustered by specific needs of particular client groups, is currently developed.

Key highlights of Sberbank Europe’s consolidated 2013 results (IFRS):

  • Net Profit: amounted to EUR 5.6 mio and turn-around achieved after significant losses of EUR 265 mio in 2012
  • Loan Growth: increased 15%, to EUR 8,115 mio
  • NPL ratio: decreased to 14.5% compared to 15.3% in 2012
  • Net Interest Margin: stood at 2.53%
  • Cost to Income Ratio: improved to 84.7% from 107.1% in 2012
  • NPL coverage ratio: decreased to 40.3% (42.5% in 2012) also due to improved restructuring and collection activities
  • Deposit Growth: Increased significantly to EUR 6,725 mio or by 13%, compared with 2012
  • Client deposits share of total funding was 65%
  • Regulatory Capital: in 2013 Tier 1 ratio increased to 9.5% (2012: 7%) and CAR was 13.1% (2012: 10.5%); estimate for April 2014: Tier 1 of 11.3% and CAR of 16.6%

About Sberbank Europe Group
Sberbank Europe Group (Sberbank Europe AG), headquartered in Vienna, Austria, is a banking group that is 100% owned by Sberbank Russia. Sberbank Europe Group is present in 9 markets in Central and Eastern Europe (CEE): Austria, Bosnia and Herzegovina, Croatia, Czech Republic, Hungary, Slovakia, Slovenia, Serbia and the Ukraine. In total the bank operates 277 branches and has 4.655 employees (as at 31.12.2013). Website: www.sberbank.at

About Sberbank Group
Sberbank of Russia is Russia’s largest bank and a leading global financial institution. Sberbank holds almost one third of aggregate Russian banking sector assets, it is the key financial lender to the national economy and the biggest deposit taker in Russia. The Central Bank of the Russian Federation is the founder and principal shareholder of Sberbank owning 50% of the Bank’s authorized capital plus one voting share, with the remaining 50% held by domestic and international investors. Sberbank has more than 110 million individual customers and 1 million corporate clients in 22 countries. Sberbank has the largest distribution network in Russia with more than 18,000 branches, and its international operations include UK, US, CIS, Central and Eastern Europe, Turkey and other countries. The bank holds a general banking license No. 1481 issued by the Bank of Russia. Website: www.sberbank.ru

Sberbank was awarded “Bank of the Year 2012” by The Banker magazine and “Best Bank in CEE and Russia 2013” by the Euromoney magazine.

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