Major performance indicators of Sberbank Group under IFRS for five years

Alexander Morozov
I find enhanced performance to be the most important result of 2016: the cost to income ratio improved to 39.7%, and coverage of operating costs with the net commission income increased to 51.5%. In total, this considerably reduces the sensitivity of the bank to a possible reduction in the marginality of the banking business and allows us to look to 2017 with optimism.
Alexander Morozov Deputy Chairman of the Executive Board
Major performance indicators of Sberbank Group under IFRS for five years
  2012 2013 2014 2015 2016 Change 2016/2015, % (unless specified otherwise)
For the year, RUB bln
Operating income before provisions 915.3 1,094.8 1,300.7 1,429.8 1,697.5 18.7
Provision charge for loan impairment (21.5) (133.5) (357.0) (473.1) (342.4) –27.6
Operating income 893.8 959.9 939.3 954.6 1,355.1 42.0
Operating expenses (445.9) (504.2) (565.1) (623.4) (677.6) 8.7
Profit before tax 447.9 455.7 374.2 331.2 677.5 104.6
Net profit 347.9 362.0 290.3 222.9 541.9 143.1
As of 31 December, rub bln
Loans and advances to customers, net 10,499 12,934 17,757 18,728.0 17,361.0 –7.3
Loans and advances to customers before provision for loan impairment 11,064 13,544 18,626 19,924.0 18,665.0 –6.3
Total assets 15,097 18,210 25,201 27,335 25,369 –7.2
Due to individuals and corporate customers 10,179 12,064 15,563 19,798.0 18,685.0 –5.6
Total liabilities 13,474 16,329 23,181 24,960.0 22,547.0 –9.7
Total equity 1,624 1,881 2,020 2,375 2,822 18.8
Per share, rub per share
Basic and diluted earnings per ordinary share 16.03 16.78 13.45 10.36 25.0 141.3
Dividends per ordinary share declared during the year 2.08 2.57 3.2 0.45 1.97 337.8
Net assets per ordinary share 75.2 87.5 94.0 110.5 131.3 18.8
Financial ratios, %
Profitability ratios
Return on assets (ROA) 2.7 2.2 1.4 0.9 2.1 1.2 p.p.
Return on equity (ROE) 24.2 20.8 14.8 10.2 20.8 10.6 p.p.
Spread (return on assets less cost of funds) 5.8 5.7 5.5 4.1 5.3 1.2 p.p.
Net interest margin (net interest income to average earning assets) 6.1 5.9 5.6 4.4 5.7 1.3 p.p.
Operating expenses to operating income before provisions 48.7 46.0 43.2 43.7 39.7 –4.0 p.p.
Net loans and advances to customers to current accounts and term deposits of individuals and corporate customers and savings sertificates (net loans-to-deposits ratio) 100.9 104.2 110.8 91.9 90.6 –1.3 p.p.
Capital adequacy ratios, %
Core capital ratio (Tier I) 10.4 10.6 8.6 8.9 12.3 3.4 p.p.
Total capital ratio (Tier I and Tier II) 13.7 13.4 12.1 12.6 15.7 3.1 p.p.
Equity to total assets 10.8 10.3 8.0 8.7 11.1 2.4 p.p.
Asset quality ratios
Non-performing loans to total loans outstanding (NPL ratio) 3.2 2.9 3.2 5.0 4.4 –0.6 p.p.
Provision for loan impairment to non-performing loans (NPL coverage) (times) 1.6 1.5 1.4 1.2 1.6 0.4
Provision for loan impairment to total gross loans to customers 5.1 4.5 4.7 6.0 7.0 1.0 p.p.