Sberbank: Sber earned RUB1,237 trn in net profit for 2021 (X1.7), excluding the effect of subsequent events

SberBank releases Financial Highlights for 2021, excluding the effect of subsequent events (under RAS, non-consolidated)

The numbers are calculated in accordance with SberBank's internal methodology.

Please note that some minor changes became effective in SberBank's internal methodology starting from January 1, 2021. Therefore, the numbers for 2020 have been recalculated to make them comparable.

The effect of subsequent events is included in the numbers as of January 1, 2021 but excluded from the numbers as of January 1, 2022.

January 14, 2022

Key highlights for December:

• SberBank earned net profit of RUB89.6 bn. ROE came in at 19.8%, and ROA was 2.8%.
• In December, loan production hit a record at RUB2.6 trn, including RUB0.6 trn loans to retail clients and RUB2 trn loans to corporate clients.
• Retail client funding increased by 4%, excluding the effect of FX revaluation.
• The number of monthly active users (MAU) of SberBank Online exceeded 73 mn.

Key highlights for 2021:

• The Bank earned RUB1,237 trn in net profit for the year, excluding the effect of subsequent events. ROE came in at 24.8%, and ROA - at 3.5%.
• Corporate loan portfolio grew by 10.5%, excluding the effect of FX revaluation, retail loan portfolio grew by 25.8%, mainly driven by mortgage growth by 29%.
• Client funding increased by 11.1%, excluding the effect of FX revaluation.
• The number of active SberPrime users increased more than 10 times to 4.25 mn.

Alexandra Buriko, CFO, stated:

"In 2021, Sber actively supported the recovery of the Russian economy and granted over RUB20 trn in loans. State subsidies and our own subsidized programs notably boosted affordability of mortgages and led to a record growth of the mortgage portfolio by 29%. Together with the state-support payments, we enriched client offerings with the advantages of non-financial products and services, and by the end of the year over 4.25 mn clients subscribed to SberPrime. Our tech solutions improved accessibility and the quality of Sber's financial  services, which enjoyed solid demand amid higher consumer activity - in December, the number of SberBank Online users exceeded 73 mn. As a result, net profit for the year 2021 exceeded RUB1.2 trn with ROE close to 25%."

Comments for 2021:

Net interest income grew by 12.3% y/y to RUB1,617.5 bn, led by the loan portfolio expansion.

Net fee and commission income was up by 13.5% y/y and amounted to RUB578.9 bn. This growth was driven by transactions with banking cards, including acquiring, income from which grew almost by 40%y/y.

Operating expenses amounted to RUB706.2 bn, excluding the subsequent events, and were up by 8.8% y/y, which is in line with the annual Inflation growth. 

Cost-to-Income ratio improved for the year by 0.3 pp to 30.1%.

Provision charge including fair-value revaluation totaled RUB111.6 bn for the year, which was 5.5 times less than the charge a year ago, when SberBank made significant provisions on the back of worsening macro environment and the pandemic constraints. In December, provision charge amounted to RUB3.9 bn. The share of overdue loans in total loan portfolio remained stable at 2.3%.

Loan-loss provisions were 2.6 times the overdue loans.

Excluding the effect of subsequent events, net profit before income tax amounted to RUB1,526.2 bn in 2021. Net profit increased 1.7 times to RUB1,237.1 bn.

Total assets for FY 2021 increased by 14.6%, or by 15.0% excluding the effect of FX revaluation, to RUB38 trn.

The Bank issued RUB2.0 trn in loans to corporate clients in December, or RUB14.4 trn for FY 2021. The portfolio was up by 1.7% in December, or 10.5% for FY 2021, excluding the effect of FX revaluation, to exceed RUB17.0 trn.

Loan production to retail clients in December was a record RUB591 bn, driven by mortgages, the originations of which also reached a record high of RUB315 bn; the mortgage portfolio was up by 2.8% for the month. For FY 2021, the Bank issued RUB5.9 trn of retail loans, which was 1.4 times higher than a year ago. Retail portfolio was up by 2% in December, or by 25.8% for FY 2021 to reach RUB10.7 trn.

The securities portfolio was down by 0.8% to RUB5.1 trn in December mainly from the redemptions of the OFZ bonds.

Retail client funding increased by 4% in December, or by 9.1% for FY 2021 excluding the effect of FX revaluation, to exceed RUB17.1 trn. Interesting seasonal promos and attractive offers for SberPrime+ subscribers promoted inflow of retail funds. The ending balances of the escrow accounts continued to grow to exceed RUB1.5 trn, supported by high volumes of mortgage lending during the year.

Corporate client funding in December were up by 2.8%, excluding the effect of FX revaluation, mainly from term deposits, to RUB9 trn. The portfolio was up by 15.2% for FY 2021.

Total client funding increased by RUB2.6 trn for FY 2021 to exceed RUB26 trn.

During 2021, Sber placed bonds in the total amount of RUB323 bn, including subordinated debt for RUB64 bn, and green bonds for RUB25 bn.

Core Tier 1 and Tier 1 capital changed insignificantly in December to RUB3,797 bn and RUB3,947 bn, respectively. 

Total capital in December increased by 1.62% to RUB5,153 bn mainly from earned net profit.

CET1 and T1 capital ratios were 10.45% and 10.87%, respectively, as of January 1, 2022. The calculation of the ratios does not include the net profit earned during the period between January and December 2021 inclusively, until it is audited, as per the CBR Regulation 646-P on the methodology of determining the amount of capital adequacy of lending institutions (Basel III). 

Risk-weighted assets * increased in December to RUB36.4 trn on the back of portfolio expansion.

* preliminary calculations

Sberbank Financial Highlights for 12 months 2021 (under RAS, non-consolidated)