Page 99 - RusRPTMay21

with the Bank for International Settlements (BIS) to explore central bank digital currencies.
8.1.8 Sberbank news
In 1Q21, Sberbank’s ROE rebounded to 23.7% as the bank reported earnings of RUB305bn.
The bottom line came 18% above the consensus forecast due to lower than expected provision charges. Management upgraded its FY21 ROE guidance to 20+%, cutting the CoR outlook to 100bp. We consider 20% ROE as achievable either by solid non-banking revenue growth or 65-70bp CoR. We have updated our forecasts: our new EPS forecast is up 3-4% in 2021-22F, and down 3% in 2023F. Our new 12-month Target Price for ords is thus 2% higher at RUB430. Given this implies an ETR of 50%, we reiterate our Buy.
Operating performance. NIM declined another 24bp q/q as portfolio repricing accelerated and a change of asset mix augmented the pressure. Net F&C grew a moderate 6.3% y/y. Opex growth stayed under control (3.0% y/y) thanks to administrative expenses. Provision
99 RUSSIA Country Report May 2021 www.intellinews.com