FY 2018 IFRS Results

Transcription

1 FY 2018 IFRS Results

2 Highlights for FY 2018 Net Income increased by 21% y-o-y and reached RUB 9.0 bn for FY 2018, the all-time best result Cost-of-Risk 194 bp for FY 2018, ahead of guidance Core business double digit growth for FY 2018: Net interest income reached RUB 21.9 bn (+11% 2018/2017) Net F&C income reached RUB 5.9 bn (+12% 2018/2017) The best quarter caps the best year 2

3 Overview of Key Financials In RUB bn Jan 1, 2018 Jan 1, 2019 YTD Oct 1, 2018 Jan 1, 2019 q-o-q Total assets % % Gross Loans % % Customer Deposits* % % Total Capital % % FY 2017 FY Q Q Q 2018 q-o-q y-o-y Net Interest Income % % +6.12% Net Fee and Commission Income % % % Revenues % % % Net Income % % % FY 2017 FY Q Q Q 2018 q-o-q y-o-y Net Interest Margin 3.48% 3.63% PP 4.11% 3.84% 4.05% PP PP Cost/Income Ratio 38.53% 39.78% PP 39.58% 40.29% 33.97% PP PP ROAE 11.37% 12.35% PP 9.94% 11.31% 13.64% PP PP * Customer deposits are calculated as a sum of customer accounts and promissory notes (other debt securities issued) 3

4 Financial Highlights, FY 2018 Assets, RUB bn Capital, RUB bn Income structure, RUB mln Income and expenses data, RUB mln 4

5 Results for FY 2018 Cost/Income and NIM, % Operating expenses, RUB mln* Net income dynamics, RUB mln Comments The best ever FY profit Strong F&C income +12% y-o-y Net interest income +11% y-o-y Provisions are RUB 1.9 bn less than year before * Property tax is excluded from other administrative and operating expenses and included in expenses related to premises and equipment (2016: RUB 130 mln; 2017: RUB 121 mln; 2018: RUB 126 mln). 5

6 Financial Highlights, 4Q 2018 Assets, RUB bn Capital, RUB bn Income structure, RUB mln Income and expenses data, RUB mln 6

7 Results for 4Q 2018 Cost/Income and NIM, % Operating expenses, RUB mln Net income dynamics, RUB mln Comments The best quarter caps the best year The record revenues, NII and net income Retail customer deposits growth (+10.4% in 4Q) * Property tax is excluded from other administrative and operating expenses and included in expenses related to premises and equipment (4Q17: RUB 31 mln; 1Q18: RUB 32 mln; 2Q18: RUB 31 mln; 3Q18: RUB 32 mln; 4Q18: RUB 31 mln). 7

8 NIM Dynamics Core Banking Margin* Dynamics Comments Core Banking Margin flat Average interest rates continue to decline despite the market turnaround Turnaround promises better margins Average interest rates on the assets side Average interest rates on the liabilities side 8

9 Core F&C Income dynamics Corporate net F&C income Retail net F&C income Source: Management accounts based on IFRS Cash and Settlement transactions category is comprised of Settlement transactions, Cash transactions and Cash collections Customers' FX category is comprised of Foreign exchange transactions adjusted for customer FX trading income (both corporate & retail RUB 0.51 bn for FY 2016, RUB 0.85 bn for FY 2017, RUB 1.02 bn for FY 2018) 9

10 Core Banking vs Trading Core Banking Results, RUB mln Core Banking Margin 5,7% 5,8% 5.6% Aggregate trading results, RUB mln Trading Margin 0,5% -0.7% 0.7% 10

11 A special guest Ms. Oksana Sivokobilska Deputy Chairperson of the Management Board Head of Retail/Digital 11

12 Retail lending: key point of growth Retail loan portfolio growth, RUB bn Retail loan portfolio quality Mortgage loans +11% y-o-y 15% of the portfolio securitized in 4Q to reduce interest rate risk exposure (7.5 bn RUB). The issue is rated AAA (ru.sf) by ACRA The Bank of first choice for the top 10 St. Petersburg developers in financing through letters of credit First in Russia to introduce escrow accounts Best Mortgage Bank Russia 2018 and Best Bank for Escrow Accounts Russia 2018 (by Global Banking and Finance Review Awards) The winner in Customer Confidence contest among St. Petersburg mortgage banks Consumer loans +39% y-o-y Growth 2 times faster than the market The number of credit cards issued doubled Car loans +68% y-o-y The number of partner car dealerships roughly doubled * Retail loans include mortgages, car and consumer loans. Overdue loans include the whole principle of loan at least 90 days overdue. 12

13 Retail deposits dynamics 188,1 187,4 Retail deposits 205,6 249,1 Market: Russia +10% SPB +11% Strengthening franchise Growth two times faster than the market Max 1-yr retail deposit rates Ability to attract deposits at Sberbank s pricing Better funding cost position 13

14 Our clients actively migrate to digital channels Client activity Digital sales Market average 1 Digitally active clients 2, % Digital payments, % Consumer loans, % Term deposits, % 72% 34% 21% 31% Branch-assisted client migration from offline to online Recognized online UX: top 3 Internet Bank according to 2018 UsabilityLab ranking Convenient payment functionality in digital channels Client payments are already online Leading among classical banks in online sales Sales transferred to digital channels by smart product offering, user friendly client experience and stimulating pricing Ability to increase sales while decreasing branch network 1 Based on the report provided by one of the leading research company covering Russian banking market ( ) 2 Share of total number of active customers within last 3 months 14

15 The least branch-dependent classic bank Number of branches per customers 3,3 9,3 4,8 5,2 10,1 10,8 5,9 13,2 8,1 8,5 16,4 18,0 9, of remote employees Sources: IFRS, annual reports, investor presentations, CBR website, banks websites, mass-media 15

16 Loan portfolio and quality Loan portfolio quality Loan portfolio by sector, January 1, 2019 Provision charge, RUB mln, and CoR, % Comments 2018 CoR of 194 bp beats the guidance Gross loan portfolio increased by 5% y-o-y RUB 8.0 bn of the loan portfolio written off in FY18, incl. RUB 4.7 bn in 4Q18 Note: Starting from Apr. 1, 2018, problem loans include all lifetime ECL credit-impaired loans (stage 3) and loans impaired at initial recognition (POCI) Before Apr. 1, 2018, problem loans included impaired not past due loans and 1-day+ overdue loans Cost of Risk calculation: (Provision for loan impairment + Net profit on revaluation of loans at fair value)/avg. total loan portfolio for the period 16

17 Assets and liabilities structure Assets and liabilities structure, RUB bn, January 1, 2019 Fixed and other assets 5.9% Due from banks 4.8% Cash 5.5% Other 3.0% Capital markets 2.3% Shareholders equity 11.2% Customer deposits*, RUB bn Amounts under reverse repo 13.1% Liquid assets 295 bn Securities portfolio 20.4% Due to banks 22.0% 148 bn Customer accounts (corporates) 24.6% Comments Loans and advances to customers 50.3% Customer accounts (individuals) 37.0% Retail deposits represent 60% of total customer deposits Loans/Deposits Ratio 82% Conservative approach to risk: 99% of the debt securities ranked on a par or higher than the Bank Average duration of the bonds portfolio is 0.9 years * Customer deposits are calculated as a sum of customer accounts and promissory notes (other debt securities issued). 17

18 Capital adequacy IFRS Capital adequacy, Basel I RAS Capital adequacy, Basel III Risk-weighted assets (RWA), RUB bn Comments Comfortable level of all capital adequacy ratios RAS Tier 1 CAR (N1.2) does not include 2018 profit (expected effect +100 bp as at April 1, 2019) 18

19 Share price one of the key strategic goals 2018 Buy-back In 3Q 2018, the Bank launched a buy-back for 2.4% of ordinary shares. Capital Management Principles On October 25, 2018, the Supervisory Board approved the Capitalization Growth Action Plan with the following Capital Management Principles: The Bank has no intention to keep excessive capital The Bank will distribute excessive capital in case of RAS Tier 1 capital adequacy ratio (N1.2) is over 9.75% The Supervisory Board is planning to consider an option of share buyback depending on the share price and availability of excessive capital at least twice a year The Bank confirms its intention to cancel the acquired shares New Dividend Policy On November 29, 2018, in accordance with the best market practice the Supervisory Board has approved the transition from RAS-based dividend payout to IFRS-based payout. 20%+ of IFRS net profit Expected dividend yield ~7.2% in

20 Further Developments and Targets The 2018 Annual General Shareholders Meeting May 4, Record Date (AGM) May 29, 2019 the Annual General Shareholders Meeting FY 2019 targets Loan portfolio growth 5% Core Banking Margin % Cost of Risk bp Costs growth 5% C/I ratio 40% ROAE 12-14% 20

21 Presentation team All information for the investors is available on the Bank s web site: Contact information: ir@bspb.ru Phone: