Page 95 - RusRPTMar21

8.1.8 Sberbank news
Sberbank released January 2021 RAS financial results. Despite typically subdued activity in January, loan issuances were strong, further supporting NII. The ruble depreciated by 3.1% for the month, affecting financials.
· NIM remained flat m/m at 5.6% and contracted by 30bp y/y on the lower interest rate environment. NII showed a strong growth of 16% y/y, flat m/m, supported by lower DIA rate and loan issuances of RUB1.0tn, with nominal loan portfolio growth rate affected by the FX move
· Retail deposits contracted seasonally by 3% m/m, while corporate accounts added 1% m/m
· Fees were seasonally mild with +2% y/y (-33% m/m), supported by bank card operations growth of +18% y/y
· CoR nominally showed an uptick to 1.9%, given currency depreciation with RUB14bn additional provisions. CFO said the majority of clients returned to their regular payments schedule – a positive signal on asset quality
· OpEx grew 9% y/y, -48% m/m, with CIR down to 23% – growth mainly attributed to more even accounting of some expenses, with underlying growth running below inflation rate, according to the press-release
· CAR ratios remained largely unchanged, with strong Core Tier I (N1.1) at 11.1% and total CAR (N1.0) at 14.7% – comfortably above the required minimum levels
Activity is typically subdued in January – a weak ruble also affected results – but a strong start to 2021: RUB86.7bn NI 21.6% ROE (+8% y/y; +39% m/m)
95 RUSSIA Country Report March 2021 www.intellinews.com