Page 88 - RusRPTNov20

income side asset yield decline followed with –30bp to 6.8% in corporate and –10bp in retail, yet supported by stronger loan dynamics with corporate portfolio added 5.2% in FX adj. terms and retail portfolio grew by 7.4% over the quarter, led by mortgage (+8.5% q/q).
Net F&C of RUB147.7bn (+14% y/y; +23% q/q) - stronger vs expectations, 10% / 3% beat to BCSe and cons-s, supported by recovery of activity post weak 2Q20, affected by lockdown. Sale of 45% share in Yandex.Market comprised RUB19.8bn, contributing 3% of operating income.
Provision charge of RUB85.7bn (+59% y/y; -36% q/q), the main reason for strong beat on bottom line in 3Q20 – 24% better vs BCSe / consensus with CoR further declined from 2.3% in 2Q20 and 3.0% in 1Q20 to 1.4% in 3Q20 vs 230-250bp 2020G, given improved macro indicators in 3Q20 with asset quality remains firm - Stage 3+POCI ratio at 7.5% vs 7.4% in 2Q20. Lower CoR in 3Q20 signals 2020G improvement at the conference call.
OpEx came strong at RUB175.5bn (+5% y/y and +2% q/q) - mostly inline with BCSe and cons-s, given efficiency enhancement program pandemia-related with CIR down to 29.6% on the back of higher operating income in 3Q20.
Sberbank has once again headed RIA Rating’s list of 100 largest banks in Central and Eastern Europe (CEE) ​ranked in terms of their asset value. According to the ranking, as of January 1, 2020, the bank’s assets reached $484bn, up 8% y/y. The bank has also emerged as CEE’s most profitable bank. In 2019, Sberbank’s profit stood at $13.1bn, which accounts for 63% of the profits generated by Russian banks (or 35.7% of the aggregate profit across all banks in the CEE ranking). The ranking relies on data from banks’ public financial statements, bulletins of statistics, and other reports published by commercial banks and central banks. The study analyzed the financial performance of the biggest banks in 14 countries: Belarus, Bulgaria, Hungary, Kazakhstan, Latvia, Lithuania, Moldova, Poland, Russia, Romania, Slovakia, Ukraine, the Czech Republic, and Estonia. The minimum asset value to hit the Top 100 banks in CEE was $4.6bn against $4.3bn a year earlier. In general, the ranking includes the largest banks from 13 countries that have been analyzed. The Top 100 of CEE’s largest banks includes 29 Russian banks. The full ranking of CEE banks by asset value as of January 1, 2020, is available​ ​here​.
88 ​RUSSIA Country Report​ November 2020 www.intellinews.com