Sberbank reports 2Q 2021 Net Profit of RUB325.3 bn under International Financial Reporting Standards (IFRS)

 

Moscow, July 29, 2021 - Sberbank (hereafter "the Group" or "Sber") has released its interim condensed IFRS financial statements (hereafter "the Financial Statements") as at and for the 6 months ended 30 June 2021, with report on review by AO PricewaterhouseCoopers Audit.

 

Alexandra Buriko, CFO, stated:

 

"The results of the first half of 2021 reflect the rapid recovery of the Russian economy and our leading position on the financial markets. We earned RUB629.8 bn in net profit and achieved a return on equity above 25%.

 

In the second quarter, we saw high consumer and transactional activity and improved dynamics in corporate lending. The Sber Group operating income before provisions increased by 22.8% in the reporting quarter. We ramped up our banking business with a noticeable improvement in the asset quality of our loan portfolio. Retail lending remains the main driver: in the second quarter of 2021, the retail loan portfolio grew by 7% and exceeded RUB10 trn.

 

Our payment business continued to accelerate: operating income in the first half of the year increased by 24.1% y/y due to the growth in the share of cashless turnover and transactional activity. Risk insurance and Wealth management segments also demonstrated high growth rates.

 

Non-financial business scales fast on the back of unified elements usage and the core technological platform. The revenue of the segment tripled for the first half of the year and exceeded RUB74 bn.

 

The business dynamics for the first half of the year have formed a solid ground for a more ambitious return on equity forecast of over 22%."

 

 

Sber key financial and operating highlights for the reporting period

 

• The Group net profit1 reached RUB629.8 bn for 1H 2021 (+119.3% y/y), and RUB325.3 bn for 2Q 2021 (+95.1% y/y);
• The Group earnings per ordinary share (EPS) 1 came in at RUB28.54 for 1H 2021 (+113.3% y/y), and RUB14.34 for 2Q 2021 (+84.3% y/y);
• The Group return on equity (ROE) 2 for 1H 2021 reached 25.3% (+12.8 pp y/y), for 2Q 2021 reached 25.8% (+11.5 pp y/y);
• The retail loan portfolio exceeded RUB10 trn, up by 7.0% for 2Q 2021, or up by 11.2% for 1H 2021;
• The Group net fee and commission income increased by 30.9% y/y in 2Q 2021 to RUB157.1 bn, or to RUB291.4 bn for 1H 2021 (+18.3% y/y);
• The asset quality of the loan portfolio improved substantially in 2Q 2021 in all key segments;
• Revenues of the Non-financial business segment for 1H 2021 tripled y/y to RUB74.7 bn;
• The new multi-category marketplace SberMegaMarket was launched in 2Q 2021; Sber ID and SberPay services became available to customers, as well as the option to purchase goods with SberSpasibo loyalty program bonuses;
• The number of users of SberPrime subscriptions exceeded 1.5 mn. An upgraded subscription, SberPrime+, was launched in April. It combines both financial and non-financial services of Sber ecosystem.

 

Sber key metrics of client activity

 

mn, unless stated otherwise	30.06.2021	31.03.2021	31.12.2021	30.06.2021/ 31.03.2021	30.06.2021/ 31.12.2020
Number of active retail clients	101.5	100.6	100.5	0.9	0.9
Number of monthly active users (MAU) of mobile App Sberbank Online	68.9	67.2	65.3	1.7	3.6
Number of daily active users (DAU) of mobile App Sberbank Online	33.9	33.2	32.4	0.7	1.5
Number of active corporate clients	2.9	2.9	2.7	-	0.2
Number of monthly active corporate users (MAU) in digital channels	2.4	2.4	2.3	-	0.1

 

• Active retail client base exceeded 101 mn, while active corporate client base reached 2.9 mn;
• Number of monthly active users (MAU) of mobile App Sberbank Online was up by 1.7 mn to 68.9 mn, and the number of daily active users (DAU) increased by 0.7 mn to 33.9 mn;
• The number of users of the loyalty program Spasibo increased by 3 mn to exceed 50 mn clients.
• About 23 mn clients (+4 mn in 2Q 2021) are using Sber ID, a unified login that gives access to 118 services of Sber ecosystem and partners, which creates a seamless client journey.
• The number of monthly active users (MAU) of the virtual assistant Salut reached almost 6 mn by the end of 2Q 2021. 

 

 

Statement of Profit or Loss results overview

Net interest income was up by 10.3% y/y in 2Q 2021 to RUB439.5 bn. The growth was attributable to increasing volumes of the working assets (see Banking business segment). Net interest income in 1H 2021 increased by 11.8% y/y to RUB861.0 bn.

The Group net fee and commission income increased by 30.9% y/y in 2Q 2021 to RUB157.1 bn, driven by growth in operations with bank cards and income from acquiring on the back of high client transactional activity (see Payments business). The high growth dynamics were also influenced by the low-base effect of last year due to COVID-related restrictive measures. The net fee and commission income growth in 1H 2021 was 18.3% y/y to RUB291.4 bn.

The Group operating expenses were up by 17.2% y/y to RUB201.6 bn in 2Q 2021, due to growth of the non-financial businesses expenses, the low-base effect of last year and the calendarization effect. The operating expenses growth in 1H 2021 was 12.2% y/y to RUB381.5 bn. The pace of operating expenses growth of the financial business was 8.6% y/y in 1H 2021, and 11.9% y/y in 2Q 2021.

The Group total headcount was down by 2.1 ths employees to 276.1 ths for the quarter. At the same time, the number of employees engaged in the development of the non-financial services continued to increase to 19.1 ths by the end of the reporting period.

The Group Cost-to-Income ratio 4 was 30.0% in 2Q 2021, and 29.7% for 1H 2021, improving by 1.5pp y/y.

The combined provision charge including revaluation of loans at fair value amounted to RUB27.2 bn for 2Q 2021, and RUB52.7 bn for 1H 2021. The combined Cost of Risk was 43 bp in 2Q 2021, and was 42 bp for 1H 2021, thanks to the settlement of a number of large problem loans and substantial improvement in the asset quality of the loan portfolio.

RUB bn, unless stated otherwise 2 Q 2021 2 Q 2020 1 Q 2021 2Q2021/  2Q2020,    % change 2Q2021/       1Q2021,    % change 6 M 2021 6 M 2020 6M2021/       6M2020,     % change Net interest income 439.5 398.5 421.5 10.3% 4.3% 861.0 770.4 11.8% Net fee and commission income 157.1 120.0 134.3 30.9% 17.0% 291.4 246.4 18.3% Other non-interest income / (expense) 5 35.4 -4.0 33.4 na 6.0% 68.8 5.1 1249.0% Operating income before provisions 5 632.0 514.5 589.2 22.8% 7.3% 1 221.2 1 021.9 19.5% Net charge related to change in asset    quality 6  -27.2 -132.9 -25.5 -79.5% 6.7% -52.7 -300.0 -82.4% Net loss allowance / (provision) for credit related commitments -6.9 -0.7 -6.5 885.7% 6.2% -13.4 -15.3 -12.4% Staff and administrative expenses -201.6 -172.0 -179.9 17.2% 12.1% -381.5 -340.0 12.2% Net profit  from continuing operations 317.6 166.7 304.8 90.5% 4.2% 622.4 287.2 116.7% Profit / (Loss) from discontinued      operations 7.7 0.0 -0.3 na na 7.4 0.0 na Net profit 325.3 166.7 304.5 95.1% 6.8% 629.8 287.2 119.3% Earnings per ordinary share from       continuing operations. RUB 13.98 7.78 14.20 79.7% -1.5% 28.20 13.38 110.8% Earnings per ordinary share. RUB 14.34 7.78 14.19 84.3% 1.1% 28.54 13.38 113.3% Total comprehensive income  307.8 229.1 230.0 34.4% 33.8% 537.8 350.6 53.4%                   Key financial coefficients                 Return on equity  2 25.8% 14.3% 24.7% -- -- 25.3% 12.5% -- Return on assets 3 3.4% 2.1% 3.4% -- -- 3.4% 1.8% -- Net interest margin 5.22% 5.61% 5.18% -- -- 5.20% 5.56% -- Cost of risk (amortized cost and FV loans)  43 bp  226 bp  42 bp  --  --  42 bp  259 bp -- Cost-to-income ratio - banking business 4 30.0% 31.8% 29.3% -- -- 29.7% 31.2% --                   Book value per share 7. RUB 227.4 232.6 223.4 -2.2% 1.8% -- -- --

Key segments overview

 

 

Banking business

• Operating income before provisions for the Banking business segment increased by 15.3% y/y to RUB484.6 bn in 2Q 2021.
• Profit before tax increased by 95.3% y/y to RUB308.5 bn in 2Q 2021.

Key 2Q 2021 Banking business segment highlights

RUB bn, unless stated otherwise	30.06.2021	31.03.2021	31.12.2020	30.06.2021/ 31.03.2021, % change	30.06.2021/ 31.12.2020, % change
Gross loans 8:	26 210.0	25 498.6	25 008.6	2.8%	4.8%
Corporate loans	15 856.0	15 823.8	15 700.4	0.2%	1.0%
Retail loans	10 354.0	9 674.8	9 308.2	7.0%	11.2%
Deposits:	27 855.5	26 997.6	25 765.7	3.2%	8.1%
Retail deposits	16 963.7	16 508.1	16 641.0	2.8%	1.9%
Corporate deposits	10 891.8	10 489.5	9 124.7	3.8%	19.4%
Net Loans / Deposits ratio (LDR)	88.5%	88.4%	90.8%	--	--

Retail loan portfolio exceeded RUB10 trn, growing by 7.0% in 2Q 2021. The yield on retail loans was down by 10 bp to 11.1%.

• The mortgage portfolio grew by 7.7%; the share of mortgages in total retail loan portfolio reached nearly 57%. There was an elevated demand for mortgage loans on the back of anticipated changes to the terms of the state subsidized program. The share of the state and the bank's own subsidized mortgage programs accounted for over 32% of new mortgages origination.
• Consumer loan portfolio increased by 7.3%, thanks to more favorable macroeconomic conditions that stimulated spending, as well as seasonal promos. The share of consumer lending in digital channels increased by 2.1pp to exceed 70% at the end of 2Q 2021.

Corporate loan portfolio grew by 0.2% in 2Q 2021 to RUB15.9 trn. Adjusted for the impact of the FX revaluation 9, the portfolio was up by 2.2%, primarily thanks to Ruble lending.  The yield on corporate loans moved up by 20 bp to 6.6% from increasing market rates and high share of loans at floating rates.

Retail funding increased by 2.8% in 2Q 2021 to almost RUB17 trn. The cost of retail term deposits increased by 10 bp to 3.8%.

• The share of retail current account balances in total retail funding increased by 3.1 pp for the quarter to 41% thanks to growing volumes on the escrow accounts and increased cashless transactions.

Corporate funding was up by 3.8% to RUB10.9 trn. The cost of corporate funding increased by 60 bp to 3.4% on the back of market rates moves.

Net LDR ratio changed insignificantly to 88.5% in 2Q 2021. 

Key asset quality metrics

RUB bn, unless stated otherwise	30.06.2021	31.03.2021	31.12.2020	30.06.2021/ 31.03.2021, % change	30.06.2021/ 31.12.2020, % change
Stage 3 + POCI loans / total gross loans at amortized cost	6.2%	6.8%	6.6%	--	--
Provision coverage of Stage 3 + POCI loans	101.0%	98.9%	102.8%	--	--

• The credit quality of the loan portfolio improved substantially in 2Q 2021 in all main segments. The share of Stage 3 and POCI loans in loans at amortized cost was 6.2%, down by 58 bp, compared to 1Q 2021.
• The share of impaired loans in the structure of corporate loan portfolio decreased significantly thanks to effective recovery strategies and foreclosures. The share of impaired corporate loans decreased by 0.7 pp in 2Q 2021.
• Total provision coverage of impaired loans in 2Q 2021 was up by 2.0 pp to 101.0%, compared to 1Q 2021.

 

Payments business

• Operating income for the Payments business increased by 32.5% y/y in 2Q 2021 to RUB96.3 bn.
• Profit before tax increased by 51.8% y/y in 2Q 2021 to RUB68.0 bn.
• The total volume of transfers, payments and acquiring increased by 45% y/y in 2Q 2021 to RUB14.5 trn, demonstrating growth across all segments.

 

• Over 65 thousand partners joined the SberPay payment service, which allows to pay online without a card from the SberBank Online mobile application. To date, more than 1 million Sber customers use it to make purchases.

• In July, the service for accepting payments, UKassa, launched a settlements solution for users of the C2C platforms, the Safe Transaction service, in which money is received by the seller only after the customer receives his purchase.  

Wealth management and brokerage

• Total operating income before provisions for Wealth management and brokerage segment increased by 12.0% y/y in 2Q 2021 to RUB16.8 bn.
• Profit before tax increased by 8.7% y/y in 2Q 2021 to RUB11.3 bn.

RUB trn, unless stated otherwise	30.06.2021	31.03.2021	31.12.2020	30.06.2021/ 31.03.2021, % change	30.06.2021/ 31.12.2020, % change
AUM	1.89	1.82	1.75	3.8%	8.0%
AUC 10	2.16	2.05	1.90	5.3%	13.7%

Assets under management increased by 3.8% in 2Q 2021 to RUB1.9 trn.

• Companies of the Sber Asset Management business were ranked first by the volume of assets under management among all Russian asset management companies as of 2Q 2021 (according to rating agency Expert RA).
• Sber holds its leadership in terms of the number individual investment accounts (IIA) opened among all asset management companies in Russia, managing about 60% of all IIA in the country.

Net assets under custody on the brokerage accounts exceeded RUB2.1 trn, as of 2Q 2021.
 

Risk insurance

• Total operating income before provisions for the Risk insurance segment reached RUB24.5 bn, up by over 50% y/y. The Group Insurance companies significantly expanded their product mix, and improved customer experience in the SberBank Online mobile application for insurance products.

• There were several product launches in 2Q 2021: car insurance SBERKASCO 2.0, Business Protection for owners of Evotor smart terminals, and FINCASCO car insurance for insurance of vehicles pledged to the bank when applying for a car loan.
• Sber entered the voluntary health insurance market in July.

 

Non-financial business

Revenues11 of the Non-financial business segment increased by 2.5x y/y to RUB41.1 bn for 2Q 2021. Revenues for 1H 2021 tripled to reach RUB74.7 bn, which were more than for FY 2020.

• The e-commerce GMV in 2Q 2021 reached RUB19.7 bn, up by 9x y/y. The key driver remains the e-grocery segment, represented by SberMarket and Samokat.

• In April, the main multi-category marketplace, SberMegaMarket, was launched; it already offers 18 main categories of goods. Clients now have access to Sber ID and SberPay services, free delivery of goods with SberPrime subscription, as well as the ability to pay with SberSpasibo bonuses for goods.

• The FoodTech & Mobility revenues were RUB 3.9 bn, increasing 3.7x y/y. The number of restaurants and stores signed up to Delivery Club exceeded 45 ths, up by 84% y/y. The number of rides via CitiMobil was 51.9 mn in 2Q 2021, over 100 mn in 1H 2021.
• Revenues for companies in the Entertainment segment reached RUB 3.0 bn, increasing by 2.7x.

• The number of paying users of the audio streaming service SberZvuk was 1.9 mn as of 30.06.2021, up by 2.4x since rebranding in September 2020. MAU of the service was 5.0 mn listeners.

• SberCloud revenues increased by 3.3x y/y during the quarter to RUB2.0 bn; for 1H 2021 demonstrated a five-fold growth y/y to RUB3.7 bn.
• There is a growing demand for digital non-financial services of the classified platform DomClick among both clients with mortgages and without mortgages; the revenues from additional services increased by 25% for the quarter to exceed RUB3 bn. The monthly audience reached 14.4 mn, while the number of listings on the platform increased by 12%, compared to 1Q 2021, to exceed 1.8 mn.
• Sber presented a new product of the ecosystem, the ed-tech marketplace Sberobrazovanie, that will bring together authors of educational content with users by means of advanced digital solutions. In May 2021, Sberbank acquired 25% in Prosveshchenie JSC, the largest Russian textbook publisher.
• In 1H 2021, the revenue of the Health segment increased by 2.3x, reaching RUB1.8 bn. The main growth drivers were telemedicine services and online doctor appointments. The number of telemedicine consultations increased by 2.1x, and in the beginning of July 2021 already exceeded the total number of calls for the entire 2020.

 

Technological leadership

• The 1H 2021 was significant in terms of technological rollouts, including Platfom V, SmartMarket, SberCloud. The number of external IT specialists who partnered to develop products using Sber solutions increased by 9x and reached 25,000 developers;
• The SmartMarket, a marketplace of SmartApps, that allows to train and use virtual assistants, already has more than 500 applications.
• Sber launched its own video conferencing platform Jazz by Sber, a platform for developing its own visual characters Visper.
• Sber continues to expand the use of Salut virtual assistants. In July, Sber launched a new product, TV media center, with a smart camera SberBox Top and Salut TV operating system for partner devices, created a special SberBox edition, Salut for hotels; virtual assistants now also help clients find information about the financial markets in SberOnline app.
   

ESG

• Sber disclosed its first ESG Policy that integrates the corporate governance and sustainable development, sets the main elements of the business architecture, principles, directions and objectives in the field of ESG, taking into account the scale of activities and the role of Sber.
• Sber was top-rated among Russian banks by quality of services to clients with disabilities.
• Sber green loans portfolio reached RUB75 bn, while the loan portfolio, where the rate is linked to the ESG metrics, exceeds RUB50 bn.
• Sber is focused on enhancing green and sustainable lending. The ESG classification for loans was introduced, and pricing terms measured against respective ESG metrics were approved. 
• Sber started installing solar energy panels at branches to cover more than 20% of its electric consumption by own autonomous devices. By 2030, Sber branches should become carbon neutral.

 

Selected Capital Adequacy Results Overview

RUB bn, unless stated otherwise	30.06.2021	31.03.2021	31.12.2020	30.06.2021/ 31.03.2021, % change	30.06.2021/ 31.12.2020, % change
Common equity Tier 1 capital	4 798.7	4 922.1	4 719.9	-2.5%	1.7%
Tier 1 capital	4 948.7	5 072.1	4 869.9	-2.4%	1.6%
Total capital	5 139.0	5 261.4	5 008.9	-2.3%	2.6%
Risk-weighted assets	34 164.0	34 421.2	34 124.2	-0.7%	0.1%
Credit risk	29 772.7	29 425.8	29 253.9	1.2%	1.8%
Operational risk	2 986.3	3 664.3	3 664.3	-18.5%	-18.5%
Market risk	1 405.0	1 331.1	1 206.0	5.6%	16.5%
Common equity Tier 1 capital adequacy ratio	14.05%	14.30%	13.83%	--	--
Tier 1 capital adequacy ratio	14.49%	14.74%	14.27%	--	--
Total capital adequacy ratio	15.04%	15.29%	14.68%	--	--
Leverage ratio	12.4%	12.9%	12.9%	--	--

Common equity Tier 1 capital decreased by 2.5% for 2Q 2021 to RUB4,798.7 bn from dividend distribution of RUB422.4 bn for 2020. The Group total capital decreased by 2.3% for 2Q 2021 to RUB5,139.0.

The Group risk-weighted assets were down by 0.7% to RUB34,164.0 bn in 2Q 2021, mainly due to the transition to a standardized approach in calculating operational risk under the Central Bank Regulation #744-P, the savings effect from which was RUB0.7 trn.

The risk-weighted assets density decreased from 87.6% to 85.8% for 2Q 2021.

Common equity Tier 1 capital adequacy ratio and Tier 1 capital adequacy ratio in 2Q 2021 came down by 25 bp to 14.05% and 14.49% respectively, while total capital adequacy ratio decreased by 25 bp to 15.04%. 

 

Conference call details

The Sber 2Q 2021 Consolidated IFRS Results Conference Call will be held on July 29, 2021 at 5:00 pm Moscow time (3:00 pm London / 10:00 am New York time).

The conference call dial-in and webcast details are:

 

Conference ID: English - 5692107

                            Russian - 8858537

 

Telephone numbers:

 

Russia
+7 495 213 1767 (local access)

8 800 500 9283 (toll free)

UK
+44 (0)330 336 9127 (local access)

0800 358 6377 (toll free)

USA
+1 929-477-0324 (local access)

800-458-4148 (toll free) 

 

Webcast-Link:

https://www.webcast-eqs.com/sberbank20210729

 

 

1 Includes discontinued operations, which included Eurocement Group from 3Q 2020

2 Excluding the subordinated loan agreement in the amount of RUB150.0 bn classified as equity financial instrument that was previously ceded by the Bank of Russia in favor of the Ministry of Finance

3 Based on profit from continuing operations

4 Operating income before provisions for debt financial assets, credit related commitments and revaluation of loans at fair value due to change in credit quality 

5 Other non-interest income / (expense) includes: Net gains / (losses) from non-derivative financial instruments at fair value through profit or loss; Net gains from financial instruments at fair value through other comprehensive income; Net gains from derivatives, trading in foreign currencies, foreign exchange and precious metals accounts translation; Net losses arising on initial recognition and modification of financial instruments measured at amortized cost; Impairment of non-financial assets; Net charge for other provisions and allowances; Revenue of non-financial and other business activities; Cost of sales and other expenses of non-financial and other business activities; Net premiums from insurance and pension fund operations; Net claims, benefits, change in contract liabilities and acquisition costs on insurance and pension fund operations; Income from operating lease of equipment; Expenses related to equipment leased out; Net share of loss of associates and joint ventures; Other net operating income / (expenses)

6 Includes net expenses from provisioning for debt financial assets and revaluation of loans at Fair Value due to changes in credit quality

7 Total equity attributable to shareholders of the Bank / Total numbers of shares outstanding (ordinary + preferred)

8 Before loan loss allowance and including loans at amortized cost and at fair value

9 Based on management accounts

10 Taking into account the change in the methodology in accounting for the revaluation of the OTC assets and REPO transactions

11 For the segment Non-financial business Revenues of the associates and joint ventures are disclosed proportionately to the ownership share of the Group in the reporting period.  For the companies of the Group Revenues are calculated on the 100% basis from the date of the control. The information does not include data on Yandex.Market and the financial results from the disposal of Yandex.Market

 

 

DISCLAIMER

This document has been prepared by Sberbank of Russia (the "Bank") and has not been independently verified. This press release does not constitute or form part or all of, and should not be construed as, any offer of, or any invitation to sell or issue, or any solicitation of any offer to purchase, subscribe for, underwrite or otherwise acquire, or a recommendation regarding, any shares or other securities representing shares in, or any other securities of the Bank, or any member of the Bank's group, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or any commitment whatsoever or any investment decision. The information in this press release is confidential and is being provided to you solely for your information and may not be reproduced, retransmitted or further distributed to any other person or published, in whole or in part, for any purpose.

This press release doesn't constitute an offer of securities of the Bank for sale in the United States. The Securities may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act of 1993 as amended.

This press release is only being distributed to and is only directed at (A) persons in member states of the European Economic  Area (other than the United Kingdom) who are "qualified investors" within the meaning of Article 2(1)(e) of Directive 2003/71/EC (as amended and together with any applicable implementing measures in that member state, the "Prospectus Directive") ("Qualified Investors"); (B) in the United Kingdom, Qualified Investors who are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") and/or high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order; and (C) such other persons as to whom this press release may be lawfully distributed and directed under applicable laws (all such persons in (A) to (C) above together being referred to as "relevant persons").  The shares, or other securities representing shares, or any other securities of the Bank are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons.  Any person who is not a relevant person should not act or rely on this press release or any of its contents.

This press release does not constitute any offer of, or any invitation to sell or issue, or any solicitation of any offer to purchase, subscribe for, underwrite or otherwise acquire any securities of the Bank within the Russian Federation or in favor of the Russian entities or persons. Any foreign securities representing shares of the Bank may not be offered or sold within the Russian Federation, except as provided by the relevant Russian legislation.

The information in this press release or in oral statements of the management of the Bank may include forward-looking statements. Forward-looking statements include all matters that are not historical facts, statements regarding the Bank's intentions, beliefs or current expectations concerning, among other things, the Bank's results of operations, financial condition, liquidity, prospects, growth, targets, strategies, and the industry in which the Bank operates. By their nature, forward-looking statements involve risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future. The Bank cautions you that forward-looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which the Bank operates may differ materially from those made in or suggested by the forward looking statements contained in this press release or in oral statements of the management of the Bank. In addition, even if the Bank's results of operations, financial condition and liquidity and the development of the industry in which the Bank operates are consistent with forward-looking statements contained in this press release or made in oral statements, those results or developments may not be indicative of results or developments in future periods.

Sberbank assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or for any other reason.

The information and opinions contained in this press release or in oral statements of the management of the Bank are provided as at the date of this press release or as at the other date if indicated and are subject to change without notice.

No reliance may be placed for any purpose whatsoever on the information contained in this press release or oral statements of the management of the Bank or on assumptions made as to its completeness.

No representation or warranty, express or implied, is given by the Bank, its subsidiaries or any of their respective advisers, officers, employees or agents, as to the accuracy of the information or opinions or for any loss howsoever arising, directly or indirectly, from any use of this press release or its contents.

This press release is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.

By attending or reviewing this press release, you acknowledge and agree to be bound by the foregoing.