Sber, Russia’s largest lender, has announced record earnings for the first eight months of this year. CEO German Gref shared the news during the Eastern Economic Forum (EEF) in Vladivostok, revealing that the bank had earned 999 billion rubles ($10.5 billion) in that period, with a return on capital above 25%. He expressed confidence that these impressive results indicated that Sber was on track to exceed its previous forecasts in terms of return on equity for the entire year. The bank’s current return on equity (ROE) stands at 22%, and it is expected to maintain or exceed this figure.
Gref also highlighted the growth in Sber’s loan portfolio, which has increased by nearly 18% since the beginning of the year. Despite the vacation season in August, client activity remained high, leading to the issuance of almost 3 trillion rubles ($31.4 billion) in loans within one month. Sber also experienced growth in client deposits, with funds growing by almost 2% in August alone, thanks to the bank raising deposit rates to a maximum of 12%.
One significant contribution to Sber’s profitability this year was the sale of its subsidiary in Austria in June. This move marked the bank’s withdrawal from the EU banking market and resulted in a net profit of $1.5 billion in that month alone, a record high for the year.
While Sber has not disclosed its earnings dynamics compared to 2022, a year that saw its profits decline by almost 80% due to Ukraine-related Western sanctions, its recently published financial report for the first half of 2023 reveals a 22.4% increase in earnings for January-June compared to the same period in 2021, which was considered the bank’s record year.
Sber’s strong performance demonstrates its resilience and ability to overcome challenges. The bank has strategically adapted to changing market conditions, including international sanctions, and continues to show steady growth. These positive results contribute to the overall stability of Russia’s banking sector.
In conclusion, Sber’s record earnings for the first eight months of the year showcase its financial strength and success in navigating the evolving economic landscape. With a solid return on capital and a growing loan portfolio, the bank is well-positioned to exceed its previous forecasts and deliver positive results for the entire year. Sber’s ability to adapt and thrive despite obstacles is a testament to its leadership and strategic decision-making.
Source link
