Page 84 - RusRPTFeb19

Net profit before income tax came at RUB1,002bn for 2018, while net profit excluding the effect of subsequent events totalled RUB811bn, including RUB52.2bn earned in December.
Total assets increased by 2.9% in December and by 16.1% for the year to RUB27.0 trillion, mainly due to loan portfolio growth. Ruble devaluation in December and for the year overall affected the Bank’s balance sheet. In real terms assets were up by 1.9% in December and by 11.6% for the year.
The Bank lent RUB1.3 trillion to corporate clients in December and RUB12.8 trillion for the year, which was 13% more than the amount lent in 2017. Corporate loan portfolio increased by 2.7% in December to RUB13.6 trillion. Growth was led by ruble-lending, while FX-denominated portfolio contracted.
The Bank granted RUB324bn in retail loans in December, which was a monthly record. For the entire year, the Bank granted RUB3.2 trillion in loans to retail clients, which was 1.5 times higher than in 2017. The outstanding balance of retail loans added 0.9% in December and grew by 25.3% for the year.
Mortgage portfolio increased by 25% for the year. The Bank executed securitization deal for mortgage loans worth RUB46bn in December. The deal benefited capital management and increased a pool of liquid assets. Excluding the impact of the deal, portfolio of retail loans would have grown by 1.7% in December and by 26.2% for the year.
The Bank decreased its overdue loans by RUB34.5bn in December led by the corporate segment. As a result, the share of overdue loans in total loan portfolio decreased for the year: by 0.16 p.p. to 1.85% for corporate and by 0.63 pp to 2.60% for retail portfolio. For the total loan portfolio, the share of overdues improved by 0.28 pp to 2.09%, which is substantially below the rest of Russian banks (8.0% as of December 1, 2018).
Securities portfolio decreased by 4.0% in December to RUB2.9 trillion due to repayment of short-term bonds of the Bank of Russia.
Client deposits and accounts increased by 3.8% in December. For the year client funding increased by 12.7%, whereas retail deposits added 7.5% and corporate deposits were up by 23.7%. As of January 1, 2019, client deposits and accounts exceeded RUB20 trillion.
The Bank made two issuances of exchange-traded bonds in December worth RUB27bn. Overall in 2018 the Bank issued exchange-traded bonds in the amount of RUB182bn. As of January 1, 2019 Sberbank had RUB276bn outstanding exchange-traded bonds with maturities between 3 to 5 years.
Core Tier 1 and Tier 1 capital were down by RUB19bn in December under preliminary calculations, led by growth in intangible assets: software developments within 2018 were accounted for in December. Total capital increased by RUB33bn on the back of earned net profit. Core Tier 1 and Tier 1 do not include net profit for the second half of 2018 as long as it is unaudited.
Risk-weighted assets expanded by RUB780bn led by loan portfolio growth and revaluation of FX-denominated balance-sheet lines. As a result, capital adequacy ratios decreased by 0.4 pp for Core Tier 1 / Tier 1 and by 0.3 pp for
84 RUSSIA Country Report February 2019 www.intellinews.com