Sberbank reported for first half and second quarter of this year, according to international standards. The Bank’s net profit fell for the quarter by a third, to 166.7 billion rubles, which was due to the growth of deductions in reserves. However, analysts had expected a slightly more significant decrease in this indicator on the background of falling rates in the market and declining business activity due to the coronavirus.Today the savings Bank has published the reporting for the first half of this year according to IFRS. The Bank’s net profit compared with the same period last year fell by almost 40%, to 287,2 billion. Analysts predicted a more substantial drop. According to the consensus forecast of “Interfax”, the first half net profit of Sberbank is expected to reach 265,7 billion rubles More interest is the data for the second quarter, i.e. at the time of the quarantine restrictions in Russia. Analysts had expected reduction rate up to 145,2 bln RUB indicator Drop was the result of establishing reserves on 129,5 billion rubles, which is almost 14 times higher than in the same period last year. “In the second quarter increased the cost of risk, which exceeded 2% against 0.2% in the second quarter of 2019”,— the analyst of BKS Egor Dachtler.The Bank’s loan portfolio in the second quarter increased by 1.6% (excluding currency revaluation) to 22.9 trillion rubles., including the portfolio of credits to natural persons increased by 0.9% to 8.3 trillion rubles, and corporate credit portfolio — by 1.8% to 14.6 trillion Mortgage portfolio of the Bank grew by 1.9%, which was possible due to the high demand for public and private programs of concessional lending, whose share of mortgage loans issuance to the end of the quarter was about 30%. In connection with the decline in business activity in the country due to quarantine a portfolio of consumer loans decreased by 0.2%.Interest income for April—June decreased by 1.8% year-on-year (up to 594,8 bn). This happened in connection with the continued decrease of the yield of loans against the backdrop of the dynamics of market rates, the report says the Bank. We will remind, in the second quarter, the Central Bank has twice lowered the rate in the amount of 1.5% to 4.5%. Together with the monetary easing it had a positive impact on interest expenses of the Bank, which, together with the costs of Deposit insurance decreased by 22.2% to 196.3 per billion roubles According to the Bank, the decline was against the background of the easing of monetary policy, and in connection with revision of rates of insurance premiums to the Deposit insurance Fund. “Contributions to the Deposit insurance Fund fell in the second quarter by 62% year-on-year to 8.2 billion rubles., since the decision on the revision of rates is applied prospectively from the beginning of the year”,— stated in the message of Sberbank.As a result, net interest income for the second quarter rose by 12.9% to 398,5��bln rubles, net fee and Commission income of the group slowed in the second quarter to 2.8%, up to 120 billion RUB. “the Decline in contributions to the Deposit insurance Fund in the first half supported the net interest margin (of 5.61% in the second quarter versus the 5.49% a year earlier.— “B”),”— said Egor Dachtler.However, this value is still below the values formed in the reaction of banks and regulators to crises 2008 and 2014, in 2011 and 2016 this indicator was above 17.5% and 16.5% respectively, notes the analyst of management of trading operations on the Russian stock market “freedom Finance” Alexander Osin. A further increase in indicator analysts do not expect. “As in the years 2015-2017, the banks will solve the problems associated with relatively low capital adequacy with a relatively high level of delay not due to a major capitalization — for example, the anti-crisis program in 2009, but due to the comparatively low terms of a long-term statistics of the growth rates of crediting”,— says Alexander Osin.Today’s trading of the shares began with the reduction of quotations. By 12:00 the value of securities declined by 1% to RUB 216,8 “reporting shares responded neutrally. A slight decrease followed the General market trend,”— said Egor Dachtler.Vitaly Gaydayev
