All subsidiaries reported a positive result, with the largest contributions from the Czech Republic (EUR 14.7 million) and Serbia (EUR 11.1 million)

Net result of EUR 34 million; customer base +7.4% yoy, gross loan volume +13.7% yoy.

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Sberbank Europe reports best annual result

With a profit after tax of EUR 34 million for the year 2018, Sberbank Europe Group has demonstrated its strong position as a successful player in the banking market in Central and Southeastern Europe. The net profit is the result of an improved business performance, efficient cost management and lower risk costs. The introduction of a new instant loan in Germany, the increased loan demand in the subsidiary banks and a consistent development of the digital product range enabled further customer growth in 2018.

Sonja Sarközi, CEO of Sberbank Europe, comments: "Having achieved the most successful financial year in Sberbank Europe’s young history, we were confirmed that we have offered the right products and services."

Sberbank Europe's subsidiaries contributed significantly to the positive result and even increased their net profit in 2018 compared to the previous year, with the exception of the Czech Republic, where restructuring measures were reflected. The largest profit contributions in 2018 came from the Czech Republic (EUR 14.7 million net profit) and Serbia (EUR 11.1 million). Other subsidiaries also posted solid net profits for 2018: Hungary: EUR 4.3 million, Slovenia: EUR 8.1 million, Croatia: EUR 6.2 million, Bosnia and Herzegovina: EUR 3.6 million as well as Banja Luka: EUR 2.6 million.

The strategic objective of Sberbank Europe in 2018 was to strengthen business in Central and Southeastern Europe. Sonja Sarközi: "This strategy worked perfectly: The intensified activities in the regional retail and SME business were one of the main reasons for the success of our subsidiaries."

Strong year for retail business

The retail business developed particularly well in 2018. The active customer base grew by 7.4% compared to 2017, from 654,000 to 702,000 retail customers, with the majority of new customers being gained in the Czech Republic, Serbia and Hungary. Gross retail loan volume increased by 13.7% to almost EUR 3.9 billion in 2018. With an increase of 25.9% compared to the previous year, demand for consumer loans in particular rose significantly. Overall, the Group's lending volume (retail, SME and corporate customers) declined slightly year-on-year as a consequence of the planned reduction in the corporate customer portfolio in Austria.

An important milestone for Sberbank Europe in 2018 was the introduction of online lending in Germany – a major step in the implementation of the Group's digitalization strategy. At the end of 2018, Sberbank Direct granted loans in the amount of EUR 71 million and was able to establish itself sustainably in the competitive German market through simple products, attractive terms and digital end-to-end processes.

Group net interest income remained relatively stable compared to 2017 and stood at EUR 290.2 million (EUR -3.3 million or -1.1% yoy). Net fee and commission income increased to EUR 90.8 million in 2018 (EUR +10.6 million or +13.2% yoy). All subsidiary banks increased their net commission income in 2018, with the largest contributions from Hungary, the Czech Republic and Serbia.

Operating expenses remained relatively stable at EUR 284.9 million in 2018.

Further reduced NPL ratio, healthy equity base

The Group's NPL ratio improved by more than a third to 7.3% in 2018, mainly due to an effective reduction of non-performing loans. Risk provisions decreased by EUR 103.6 million to EUR 51.4 million in 2018 compared to 2017 due to a more favorable risk environment.

Sberbank Europe had a stable equity base at the end of 2018. With a Common Equity Tier 1 (CET1) of 16.6%, the banking group comfortably meets all regulatory requirements. The capital adequacy ratio stood at 20.7% as of 31 December 2018.

The international rating agency Fitch confirmed the BB+ rating with a positive outlook for Sberbank Europe AG in September 2018, based on "reasonable capitalization, a sound financial and liquidity position and a plausible funding strategy".

As of 31 December 2018, the Sberbank Europe Group reported total assets of EUR 11.7 billion.

Key financial highlights of Sberbank Europe Group consolidated YE 2018 results*


P&L Highlights

EUR million



Net result after taxes (including discontinued operations)



Operating income before provisions



Operating expenses



Net interest income



Net interest margin (%)



Net fee and commission income



Cost/income ratio (%)




Balance Sheet Highlights

EUR million

As of 31.12.2018

As of 31.12.2017

Gross loans



Total customer deposit



Loan (net)/deposit ratio (%)



Core Tier 1 (CET1) ratio (%)



Capital adequacy ratio (%)



NPL ratio



NPL coverage ratio (%)



Total assets




As of 31.12.2018

As of 31.12.2017

Employees (FTE)







~ 713,000

~ 665,000


Notes: *Results of Sberbank Europe Group based on audited consolidated IFRS financial statements as of 31 December 2018.

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