Sberbank reports Net Profit of RUB215.3 bn (EUR 3 bn) as of HY 2018

Sberbank Group has released its interim condensed consolidated IFRS financial statements for the first six months of 2018 (as of 30 June 2018), with report on review by AO PricewaterhouseCoopers Audit. All information is presented net of Denizbank A.S. operations, unless stated otherwise.

Alexander Morozov, Deputy Chairman of the Executive Board, CFO, commented: “Sberbank delivered strong 2Q 2018 results, securing ROE over 24% and earnings per share growth over 14% y/y. Despite the increased market volatility and external challenges Sberbank takes firm steps toward achieving its Strategy 2020 goals: the number of active retail digital channel users exceeds 60 million, the number of active corporate digital channel clients is over 1.7 million, while the share of online sales of certain products exceeds 40%. In 2Q 2018, Sberbank showed an outpacing growth in net fees and commissions and improvement in operating efficiency. The first half results and current business dynamics form a foundation for an upside revision of our 2018 targets.”   

The 2Q 2018 Financial Highlights

• The Group net profit reached RUB215.3 bn (EUR 3 bn), including net profit of Denizbank A.S. of RUB7.0 bn (EUR 0.1 bn);
• The Group earnings per ordinary share (EPS) came at RUB9.13, up by 14.4% compared to 2Q 2017;
• The Group annualized return on equity (ROE) reached 24.4%, while the Group annualized return on assets (ROA) reached 3.3%;
• Net fee and commission income increased by 29.1% y/y to RUB113.7 bn;
• The Group Cost-to-Income ratio improved to 32.2%;
• The Group loan portfolio (includes loans at amortized cost and at fair value) increased by 6.4% during 2Q 2018 to RUB19.5 trn, with retail loans growing by 6.5% to RUB6.0 trn, and corporate loans – to RUB13.5 trn, up by 6.3% during the quarter;
• Following closure of the Yandex deal to set up a joint venture, Yandex.Market B.V., the Group started disclosing the JV in Investments in associates and joint ventures;
• Effective 2Q 2018 the Group started implementing IRB approach in assessing capital and risk-weighted assets that had an immediate positive effect of 20 basis points on CET1 ratio, with further upside expected toward the end of the year from RWA optimization.

The full press release published by Sberbank of Russia is available here.