Sberbank sees IRFS net profit fall 50% in H1 to 85.2 bln rubles
MOSCOW. Aug 26 (Interfax) - Sberbank saw net profit to International Financial Reporting Standards (IFRS) fall 50% year-on-year in H1 2015 to 85.2 billion rubles from 170.4 billion rubles, the bank said in a press release.
In Q2 2015 the bank posted net profit of 54.6 billion rubles, which is 44% lower than the figure for Q2 2014 (97.5 billion rubles).
Analysts questioned by Interfax forecast that the bank would post net profit of 71.4 billion rubles in H1 2015 and in Q2 40.8 billion rubles.
"This decrease is explained mostly by net interest income dynamic and an 81.5 billion ruble increase in net provision charges for loan impairment as compared to H1 2014," Sberbank said in its statement.
"Interest income for H1 2015 increased by 29.1% year-on-year to 1.107 trillion rubles. The increase was attributable to higher interest rates on corporate loans and higher volume of interest earning assets," the bank said.
"Net interest income for H1 2015 totaled 427.4 billion rubles, a 12.8% decrease year-on-year. The decrease is caused by the outpacing growth of interest expenses over income due to the rapid rise of funding costs. During Q2 2015 net interest income increased by 13.4% as compared to Q1 2015," Sberbank said.
"Interest expenses (including deposit insurance expenses) for H1 2015 increased by 84.8% year-on-year to 679.1 billion rubles driven by the cost of corporate term deposits and borrowings from the Central Bank of Russia. In Q2 2015 those expenses decreased by 62.6 billion rubles as compared to Q1 2015," the statement said.
Operating income in H1 rose 3.5% to 643.7 billion rubles and operating spending rose by 12.4% to 286.3 billion rubles.
Sberbank's assets as at the end of June 2015 were 23.657 trillion rubles, down by 6.1% in comparison with the end of December 2014.
The amount of funds of private entities rose by 7.0% in H1 to 9.981 trillion rubles and the amount of funds held by legal entities fell 5.9% to 5.869 trillion rubles.
At the end of June the funds made up 46.4% of all of Sberbank's liabilities and the funds of corporate clients made up 27.3%.
"The Group's equity amounted to 2.163 trillion rubles as at June 30, 2015, a 7.1% increase for H1 2015. The main sources for the increase were gains on revaluation of securities available-for-sale and net profit earned for the reporting period. The Group's total capital adequacy ratio as per Basel I reached 13.4% and the Tier 1 ratio was 9.6%. The improvement of the capital adequacy ratios as of June 30, 2015 is mostly explained by an increase in equity and reduction of risk weighted assets," the bank said.
