Page 80 - RusRPTJul20

decrease to 0.1% from 0.15% (effective till end 2020) saved RUB12.3bn for 5m20 or c.13bp of NIM.
§ Loan portfolio was broadly flat in May, adj. for FX move. Monthly issuance declined by 1% on corporate side to RUB825bn, but retail was strong at RUB197bn (+19% m/m), supported by mortgages. Sberbank issued just RUB41bn of loans under state program of 0% with 2% state program replacing in June. In May the bank restructured RUB1tn corporate and RUB115bn retail loans with RUB12.5bn loss in May from modification of loans.
§ On funding side – client funds decreased 0.2% in real terms in May with retail -0.9% mostly on the back of RUBdeposits offset with FX funds +1.3% and +1% in corporate funds. Ytd, customer funds increased by 0.2% in real terms.
§ F&C slightly restored in May with +7% m/m, yet just +4% for 5m20 y/y – broker operations supported, while insurance declined and bank card operations somewhat improved in May.
§ CoR pressure still persists with 3.5% in May and 5m20, levels of 2015. Yet, overdue loans were up slightly to 2.22% from 2.15% (to compare 3.7% was the highest levels in 2016).
§ OpEx came strong, supportive for P&L with just 3% increase for 5m20 on the back of costs initiatives with CIR of 26.8%.
§ Tax rate comprised just 3% in May, supporting net result on the back of the advance payment approach and FX negative effect of 1Q20.
§ CAR levels remain strong with N1.0 (total CAR) at 15.5% as of June, 1 with RWA growth of 1.2% m/m.
Sberbank​ signed binding documents to acquire 72% of 2GIS. 2GIS is one of the leading Runet holdings​, providing digital maps and city guides. The company has 50mn users (MAU) in Russia, CIS and abroad. Of the company, 3% will be acquired by O2O (Sberbank and Mail.ru JV), while 25% will be retained by the founders and top managers. Investment funds Baring Vostok and RTP global are exiting the company. 100% of 2GIS is valued at RUB14.3bn. The deal is expected to be closed in 3Q20, subject to regulatory approvals. 2GIS’ last IFRS from 2016 stated total revenues of RUB2.5bn. The acquisition accounts for <1% of Sberbank’s equity and looks necessary for the further development of the ecosystem’s mobility segment.
Sberbank CEO German Gref gave an interview in June. Highlights below:
· Sberbank’s management is seeing less of a negative effect on the Russian economy than it anticipated at the beginning of the COVID-19 pandemic. Gref expects oil prices to rise to $60-62/bbl by YE20, with RUB/$appreciating to RUB60-62, and sees 2020 real GDP dropping 4.2-4.5% y/y should there be no second wave of infections.
· Sberbank has restructured approximately RUB1tn of corporate loans, or 6.7% of its corporate portfolio (vs. 10% in our model and the bank's earlier guidance of 15%).
80​ RUSSIA Country Report​ July 2020 ​ ​www.intellinews.com