Sberbank Of Russia Net Income surged on 142% in 2016 and Revenue increased slightly on 1.5%
02 Mar 2017 • About Sberbank Of Russia (
$SBER) • By InTwits
Sberbank Of Russia reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sberbank Of Russia has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.9%. At the same time it's a lot of higher than industry average of 3.7%.
- CAPEX is quite volatile: 365,465 in 2016, 675,758 in 2015, 282,816 in 2014, 244,824 in 2013, 192,566 in 2012
- The company has business model with low profitability: ROIC is at 9.4%
- It operates with high leverage: Net Debt/EBITDA is 7.5x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sberbank Of Russia ($SBER) key annual financial indicators
| mln. RUB | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,436,200 | 1,796,100 | 2,216,900 | 2,824,600 | 2,867,800 | 1.5% |
| Net Income | 348,800 | 363,800 | 292,200 | 223,300 | 540,500 | 142.1% |
Balance Sheet
|
|---|
| Cash | 1,502,000 | 1,578,500 | 2,674,500 | 2,721,500 | 2,962,800 | 8.9% |
| Short Term Debt | 613,600 | 864,300 | 2,603,500 | 927,500 | 521,800 | -43.7% |
| Long Term Debt | 1,529,500 | 1,730,300 | 2,593,400 | 2,583,000 | 2,162,300 | -16.3% |
Cash flow
|
|---|
| Capex | 144,400 | 124,500 | 127,000 | 74,300 | 112,100 | 50.9% |
Ratios
|
|---|
| Revenue growth | 37.2% | 25.1% | 23.4% | 27.4% | 1.5% | |
| Net Income Margin | 24.3% | 20.3% | 13.2% | 7.9% | 18.8% | 10.9% |
| CAPEX, % of revenue | 10.1% | 6.9% | 5.7% | 2.6% | 3.9% | 1.3% |
| ROIC | 10.4% | 7.8% | 4.8% | 4.0% | 9.4% | 5.4% |
| ROE | 24.2% | 20.8% | 14.9% | 10.2% | 20.8% | 10.6% |
Revenue and profitability
The company's Revenue increased slightly on 1.5% in 2016.
Net Income marign surged on 10.9 pp from 7.9% to 18.8% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 3.9%. The company showed decline in CAPEX/Revenue of 3.0 pp from 6.9% in 2013 to 3.9% in 2016. For the last three years the average CAPEX/Revenue was 4.1%.
Return on investment
The company operates at good ROE (20.79%) while ROIC is low (9.42%). ROIC increased on 5.4 pp from 4.0% to 9.4% in 2016. ROE jumped on 10.6 pp from 10.2% to 20.8% in 2016.
Leverage (Debt)
Debt dropped on 23.5% in 2016 while cash increased on 8.9% in 2016.
Appendix 1: Peers in Banks
Below you can find Sberbank Of Russia benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kazkommertsbank JSC ($KKB) | | 6.0% | 16.3% | 41.4% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | | 23.7% | 18.9% | 26.8% | 27.0% |
| Yapi Ve Kredi Bankasi As ($YKBD) | | 4.8% | 19.7% | 25.3% | 17.8% |
| Mcb Bank Ltd ($MCBS) | | -1.7% | 19.4% | 22.4% | -10.7% |
| Halyk Savings Bank Of Kazakhstn JSC ($HSBK) | 3.7% | 9.4% | 16.3% | 19.5% | |
| |
|---|
| Median (43 companies) | 10.2% | 4.2% | 11.5% | 4.2% | 4.0% |
|---|
| Sberbank Of Russia ($SBER) | | 25.1% | 23.4% | 27.4% | 1.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Banque Marocaine Du Comm Exterieur ($69IR) | 3.7% | 9.7% | 4.3% | 26.8% | |
| Lloyds Banking Group ($LLPC) | 8.0% | 8.9% | 13.1% | 13.6% | 14.5% |
| Banco Santander Sa ($BNC) | 2.7% | 2.6% | 8.9% | 10.2% | 9.1% |
| Guaranty Trust Bank ($GRTB) | 6.7% | 6.1% | 6.8% | 7.7% | |
| Diamond Bank ($DBPA) | 8.2% | 7.9% | 6.0% | 6.7% | |
| |
|---|
| Median (41 companies) | 2.2% | 2.7% | 2.1% | 2.5% | 1.9% |
|---|
| Sberbank Of Russia ($SBER) | 10.1% | 6.9% | 5.7% | 2.6% | 3.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 21.7% | 26.9% | 30.1% | 30.3% | 28.5% |
| Bank Audi S.A.L. ($BQAD) | 13.2% | 9.2% | 8.9% | 8.3% | 14.5% |
| Mcb Bank Ltd ($MCBS) | 15.0% | 14.4% | 15.8% | 14.9% | 12.5% |
| Zenith Bank ($ZENB) | 19.0% | 17.6% | 15.0% | 11.2% | 11.1% |
| United Bank Ltd ($UBLS) | 11.7% | 11.8% | 13.8% | 12.6% | 10.7% |
| |
|---|
| Median (35 companies) | 6.0% | 5.3% | 4.4% | 3.4% | 4.5% |
|---|
| Sberbank Of Russia ($SBER) | 10.4% | 7.8% | 4.8% | 4.0% | 9.4% |
