Page 66 - RusRPTMar20

8.1.5 ​Sberbank news
Russia’s largest bank ​Sberbank​ reported RUB845bn ($13bn) net profit under IFRS for 2019,​ up by 1.6% y/y and making a return on equity of 20%.
As reported by ​bne IntelliNews,​ the crisis that ​Russian banks suffered in 2014-2016 is well and truly over​ as the sector had its second full year of clear profits in 2019, for which Sberbank contributed the largest part.
BCS Global Markets on February 27 sees the results as positive, given that Russia’s largest creditor met its 2019 guidance on bottom line and reached a significant improvement of net interest margin in 4Q19 to 5.28% (+20bp q/q). The bank’s net interest margin (NIM) was supported by good loan growth as well as the yield improvement by 10bp, also a continuing reduction of cost of deposits on funding side helped the margins (-20bp for retail term deposits in 4Q19).
Sberbank posted earnings of RUB212bn (+20% y/y and +36% q/q) beating the consensus expectations by 6%, supported by fee growth acceleration and further provision charge decline. Fees and commissions came strong gaining 24% y/y, driven by cards and settlement transactions.
The bank maintained solid capital ratios with the first-tier capital ratio of 13.4% as of end of 2019, which BCS GM sees as comfortable for 50% dividend payout for last year, while affirming the Buy recommendation on Sberbank shares with RUB310 per share.
The Central Bank of Russia (CBR), will sell its stake in Sberbank to the government this year​. The point of the deal is that Sberbank used to send its dividends to the CBR, which in turn shared a part of this payment with the federal budget.
66​ RUSSIA Country Report​ March 2020 ​ ​www.intellinews.com