Page 67 - RusRPTAug19

8.1.8 Sberbank news
The net profit of Russia’s biggest lender Sberbank rose 11.6% on the year to RUB476.9bn in January–June, as calculated under International Financial Reporting Standards (IFRS), the bank said at the end of July. In April–June, the net profit grew 16.3% on the year to RUB250.3bn. Retail deposits grew 1.3% in January–June to RUB13.673 trillion as of June 30, while corporate deposits rose 9.9% to RUB8.136 trillion. The bank’s expenditures on creation of reserves fell to RUB8.8bn in April–June after 35.8bn a year ago.
Consulting company Brand Finance, which annually assesses the value of brands around the world, has named the most expensive brands in Russia. The Sberbank brand is the most expensive, analysts at Brand Finance decided, estimating it at RUB842.2mn ($13.2bn). For thethird year in a row, Sberbank has become the most expensive brand in Russia. For the year, according to the company, it has risen in price by more than a quarter.
Sberbank released its first half results and June results and reported earnings of RUB444bn ($6.9bn) and RUB75bn, respectively (+12% and +9% year-on-year). The results suggest Sberbank is on target to earn roughly RUB888bn in profits for the whole year, still shy of the RUB1 trillion target CEO German Gref said remains the bank’s ambition. The bank remains very profitable with a return on equity (ROE) of 23% and 22% for the half year and the month respectively. The bank’s position was improved a restructuring of Croatian retailer Agrokor’s debt, which the Russian bank took over in April, but was hurt somewhat by tightening of the net interest margin (NIM). “NIM slid by 20bp in June to 5.4% and showed 70bp contraction in 1H19, partly disrupted by the implementation of IFRS9 and changes in accounting methodology. CFO expects further optimization of cost of funds, which could be supported by the CBR’s rate cuts, in our view,” BCS GM said in a note. The bank’s momentum is fading somewhat with fees growth slowing to just +4.3% y/y vs. 15% guidance for FY19 and a mild deceleration in loan growth. The share of overdue amounts declined 21bp q/q to 2.2%, while the share of provisions decreased 17bp to 6.3%, leaving the coverage ratio at a comfortable level.
Sberbank released better than expected 2Q19 IFRS results. Ruble was
67 RUSSIA Country Report August 2019 www.intellinews.com