Key 3Q 2021 Banking business segment highlights
RUB bn, unless stated otherwise
30.09.2021 30.06.2021 31.12.2020 31.06.2021, 31.12.2020,
% change % change
Gross loans 8: 27 490.9 26 210.0 25 008.6 4.9% 9.9%
Corporate loans 16 458.8 15 856.0 15 700.4 3.8% 4.8%
Retail loans 11 032.1 10 354.0 9 308.2 6.5% 18.5%
Deposits: 28 879.8 27 855.5 25 765.7 3.7% 12.1%
Retail deposits 17 326.0 16 963.7 16 641.0 2.1% 4.1%
Corporate deposits 11 553.8 10 891.8 9 124.7 6.1% 26.6%
Net Loans / Deposits ratio (LDR) 89.8% 88.5% 90.8% -- --
Retail loan portfolio exceeded RUB11 trn, growing by 6.5% in 3Q 2021, or by 18.5% YTD. The share of retail loans in total loan portfolio exceeded 40% for the first time. The share of sales in digital channels came to almost 60% (+1.1 pp), which increases the accessibility to lending. The yield on retail loans remained unchanged at 11.1%.
-- The mortgage portfolio grew by 6.4% in 3Q, and by 19.8% since the beginning of the year. There remainedan elevated demand for mortgage loans on the back of own products and changes to the terms of the state program forfamilies with children. The secondary market originations account for 75% of the mortgage issuances.
-- Consumer loan portfolio increased by 7.5% in 3Q, and by 19.0% for 9M21. The state social disbursements inAugust and September, as well as nominal wages growth of 9.2% in 3Q21, according to SberIndex, supported spending,in addition to attractive seasonal promos.
-- In September, Sber launched a new core product, a renewed credit SberCard, with interesting terms,including a 120-day zero-interest grace period and no service charge. When using the card for purchases in a numberof Sber ecosystem companies, a lower rate of 9.8% is applied. After the launch of the card in September, the numberof credit card applications increased by 20% during the month.
Corporate loan portfolio in 3Q 2021 reached RUB16.5 trn, adding 3.8%, or 3.7% adjusted for the impact of the FX revaluation9, primarily thanks to Ruble lending. The portfolio was affected by the repayment of loans to state and municipal institutions in light of the replacement of their debt with budget loans. Excluding the effect of the repayment, the corporate loan portfolio increased by 5.3% in 3Q21, or 7.4% for 9M21. The yield on corporate loans moved up by 50 bp to 7.1% from increasing market rates and high share of Ruble loans at floating rates, the share of which exceeded 44% at quarter-end.
Retail funding increased by 2.1% in 3Q 2021 to over RUB17.3 trn, in part thanks to state social disbursements. The cost of retail term deposits increased by 30 bp to 4.0%.
-- The share of retail current account balances in total retail funding increased by 1.8 pp for the quarterto 42.8% thanks to increased cashless transactions and growing volumes on the escrow accounts.
Corporate funding was up by 6.1% to RUB11.6 trn. The cost of corporate funding increased by 80 bp to 4.3% on the back of market rates moves.
Net LDR ratio changed to 89.8% in 3Q 2021, adding 1.3pp during the quarter.
Key asset quality metrics
RUB bn, unless stated otherwise 30.09.2021 31.06.2021 31.12.2020 31.06.2021, 31.12.2020,
% change % change
Stage 3 + POCI loans / total gross loans at amortized cost 5.7% 6.2% 6.6% -- --
Provision coverage of Stage 3 + POCI loans 105.1% 101.0% 102.8% -- --
-- The credit quality of the loan portfolio improved substantially in 3Q 2021 in all main segments. Theshare of Stage 3 and POCI loans in loans at amortized cost was 5.7%, down by 53 bp, compared to 2Q 2021.
-- Total provision coverage of impaired loans in 3Q 2021 was up by 4.2 pp to 105.1%, compared to 2Q 2021.
-- Operating income for the Payments business increased by 17.8% y/y in 3Q 2021 to RUB103 bn. The maingrowth driver was income from acquiring that increased by 30% y/y in 3Q 2021.
-- Profit before tax increased by 18.2% y/y in 3Q 2021 to RUB71.4 bn.
-- The total volume of transfers, payments and acquiring increased by 30.2% y/y in 3Q 2021 to RUB15.6 trn,thanks to high transactional activity. The share of cashless turnover reached 58.8% at the end of 3Q 2021,according to SberIndex analytics, calculated on the basis of payment card transactions and excluding P2P transfers.
-- The number of monthly users of SberPay, Sber service that allows to pay online without a card fromSberBank Online mobile application, increased four-fold during the quarter to 4.4 mn.
-- Sber was rated top three among the largest global acquirers second year in a row, according to the NilsonReport.
-- Transportation acquiring is now available in 147 cities in Russia; four cities were added during 3Q 2021.
Wealth management and brokerage
-- Total operating income before provisions for Wealth management and brokerage segment increased by 14.2% y/y in 3Q 2021 to RUB19.3 bn, and to RUB50.6 bn for 9M 2021 (+9.5% y/y).
-- Profit before tax increased by 21% y/y in 3Q 2021 to RUB12.7 bn.
RUB trn, unless stated otherwise 30.09.2021 30.06.2021 31.12.2020
30.06.2021, % change 31.12.2020, % change
AUM 1.99 1.89 1.75 5.3% 13.7%
AUC10 2.49 2.16 1.90 15.3% 31.1%
Assets under management increased by 5.3% in 3Q 2021, approaching RUB2 trn.
-- The company of Sber Asset Management business was top-ranked by the volume of assets under managementamong all Russian asset management companies as of 9M 2021 (according to rating agency Expert RA).
Net assets under custody on the brokerage accounts increased by 15.3% in 3Q 2021 to RUB2.5 trn.
-- Virtual assistants of Salut family became winners of the XI Annual Awards in Innovations and Achievementsin Finance - FINAWARD 2021 in the category of 'Launches/solutions in products and services' - 'Investment productor service'. The voice assistants process on average 50K investor queries regarding stock market and Sber brokerageservices.
Total operating income before provisions for the Risk insurance segment reached RUB25.3 bn, up by 18.2% y/y.
-- In October 2021, SberInsurance launched mandatary own-damage insurance for car owners (OSAGO) based onown license. Sber car-insurance marketplace provides clients with own and partner products, and its monthlyaudience of about one million unique users serves evidence of robust activity on the platform.
-- Today Sber clients have online-access to the entire range of Sber risk-insurance products. Thus, theshare of insurance product sales in digital channels reached 50% (+4 pp for the quarter).
-- Among other insurance product launches was 'Pharminsurance', which allows clients to reimburse up to 90%of the cost of a medicine by submitting a picture of receipt via SberOnline.
Revenues11 of the Non-financial business segment increased by 2.6 times y/y to RUB47.6 bn for 3Q 2021. For 9M 2021, the segment's revenues increased by 2.8 times y/y to RUB121.7 bn.
-- The e-commerce GMV in 3Q 2021 reached RUB28.1 bn (on a pro-rata basis), up by 10 times y/y. The keydriver remains the e-grocery segment, represented by SberMarket and Samokat.
-- SberMarket GMV tripled y/y to RUB13.3 bn, and the number of completed orders increased by 1.5 times in 3Q2021. Active promotion of SberPrime subscription among our clients allowed SberMarket to increase its client baseabove the threshold of 1 mn active monthly users. ? SberMarket orders can now be placed through SberMegaMarket. ? In September, SberMarket opened its first darkstore jointly with a large retailer. The roll-out ofthis format will enable express-delivery from hypermarkets with a hefty range of products.
-- Samokat GMV grew 4.7 times y/y in 3Q 2021 to RUB10.6 bn (on a 100% basis). Samokat maintained itse-grocery market leadership by number of orders. The number of orders increased 4.2 times y/y in 3Q 2021 to 18.9mn.? Samokat e-grocery services are now available in 22 Russian cities, and the number of darkstoresincreased to 758, up by 2.6 times y/y in 3Q 2021.
-- SberMegaMarket GMV had a 2.3-fold growth q/q to RUB6 bn in 3Q 2021.
-- SberLogistics grew deliveries 1.7 times in 3Q 2021. The number of pick-up points increased to 8.4K acrossRussia, with majority located in Sber branches and allowing clients to collect deliveries from over 10K internetshops and marketplaces.
-- The FoodTech & Mobility revenues reached RUB4.7 bn in 3Q 2021, increasing by 3.1 times y/y. The number ofrestaurants and stores signed up to Delivery Club exceeded 47.5K, up by 8.5K year to date.
-- Revenues for companies in the Entertainment segment totaled RUB3.4 bn, increasing by 1.8 times y/y.? The number of Okko users reached 4.5 mn in 3Q 2021, including 3.3 mn SberPrime subscribers. Theaudio-streaming SberZvuk is used by 3.7 mn clients, including 3.3 mn SberPrime subscribers. ? The musical collection of SberZvuk has expanded to 65 mn tracks. A new personalized format ofaudio-streaming 'Waves' combines the best of radio and streaming.
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