6 Dec 2010 14:00

Sberbank IFRS earnings soar 10.6-fold to 109.6 bln rubles in 9M, above forecast

MOSCOW. Dec 6 (Interfax) - Sberbank boosted net profit to International Financial Reporting Standards (IFRS) approximately 10.6-fold in January-September 2010 to 109.6 billion rubles, from 10.3 billion rubles a year previously, Russia's biggest lending organization said in an earnings report.

This is better than the 103.6 billion rubles that analysts predicted in a consensus forecast for Interfax.

The stock market's reaction to the earnings report was muted as profit had been taken on Sberbank's strong growth in the last few days. Ordinary shares were up 0.5% at 103.58 rubles and prefs rose 0.1% to 74.58 rubles by 1.50 p.m. on the MICEX stock exchange.

Sberbank has said net profit was 64.3 billion rubles in H1 2010, including 20.8 billion rubles in Q2 2010, so Q3 earnings must have risen 2.2-fold compared with Q2 to 45.3 billion rubles.

The bank reduced loan loss provisions to 12.2% of the portfolio in Q3 2010 from 12.5% in Q2 2010. Provisions totaled 715.2 billion rubles as at September 30, 2010. Provision charges fell 29.1% in Q3 compared with Q2 2010 to 39.7 billion rubles.

The NPL ratio fell to 8.6% at end Q3 from 9.1% at end Q2.

The net interest margin was 6.5% for the 9M and 6.1% in Q3 2010. The margin was 6.8% for H1 2010 and 6.3% for Q2 2010.