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80,000 mortgages have been issued, with origination at RUB205bn (22% of the 2019 total). We await to see if the program is going to last beyond 1 November and if the rate might go down. Both would be supportive for the sector, as mortgages are currently used for 70-90% of sales on the mass market.
8.1.8 Sberbank news
Russia's largest bank state-controlled Sberbank reported RUB167bn ($2.3bn) net IFRS profit for 2Q20, beating the consensus expectations by 20% and making a return on equity (ROE) of 14%.
As reported by bne IntelliNews, Sberbank previously showed stable recovery under Russian Accounting Standards (RAS), together with the other largest banks supported by state-discounted mortgage issuance.
While, Sberbank maintains an upbeat outlook on 2020, it admitted to likely to miss the ambitious profit targets this year.
In 2Q20 ongoing interest rate cuts helped support net interest income (NIM) that gained 17bp quarter on quarter to 5.33% under IFRS.
"Yet, asset yield continued [its] gradual decline -20bp in retail and -10bp in corporate yield, although supported by +1.9% q/q growth in mortgages and virtually 0% change in consumer and corporate loans up 1.8% adjusted on FX change," BCS Global Markets commented on July 31.
The lockdown in 2Q20 led to 5% q/q decline in net fees and commission to RUB120bn, still beating the consensus expectations by 5%.
Capital Adequacy Ratio (CAR) is the "bright spot in results", BCS GM stresses, with first-tier CAR improving to 14.78% or by 1.4pp q/q, supported by stronger
66 RUSSIA Country Report August 2020 www.intellinews.com
