Sberbank posts 1H 2011 net profit of 176.1 billion roubles as lending rebounds

Russia’s largest bank, Sberbank, has posted a 1H 2011 net profit of 176.1 billion roubles under IFRS.

The net result is up 173.9% year on year from the 64.3 billion rouble net profit posted for 1H 2010, as net interest income climbed 10.2% year on year to 268.9 billion roubles, with the Sberbank loan portfolio increasing 10.2% over 1H 2011 – as loans to individuals rose 11.2% to 1.467 trillion roubles and loans to legal entities rose 7.5% to 5.239 trillion roubles.Non-Performing loans, overdue by more than 90 days, fell from 452.3 billion as at the end of December 2010 to 445.2 billion at June 30 2011, as provisioning for non-performing loans fell to 6.6% from 7.3% at the start of the year.

Sberbank noted the improvement in its lending environment underpinned the strong net profit figure, with its major source of funding, customer deposits, increasing 4.9% over the half, with net fee and commission income rising 12.9% year on year to 64.1 billion roubles.

The bank also highlighted that its financial position remained relatively untouched by ongoing volatility in global capital markets, with Sberbank reducing its securities portfolio, which it added was mainly in Russian sovereign and quasi sovereign debt, and has no exposure to European sovereign risk.

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