Page 70 - RUSRptOct18

contracting fixed income market and rising deposit rate s," Aton Equity commented on September 10, adding that all the banking metrics of state-controlled bank remained in check The bank's net interest income increased by 5.9% y/y to RUB834bn in January-August, and net fees and commission income was up 25% to RUB278bn. Provisioning to reserves was 6% lower y/y with implied cost of risk at 1.8%. Aton Equity sees the sanction risks as "very low for Sberbank", and believes its shares "may rebound once the new US sanctions have been presented."
Sberbank received RUB71.5bn net profit in August and increased the monthly volume of loans to the population to a new record figure of RUB304bn according to the bank. The loan portfolio for August increased by RUB0.4 trillion or by 2.3%. "The volume of loans (loans) since the beginning of the year has overcome the mark of RUB2 trillion already in August, that last year the bank managed to reach this level only in December. The bank's share in the retail lending market grew by 1.0 pp in January-July up to 41.4%," the statement said. The share of overdue debt remained unchanged at 2.4%. For the first half of the year, the bank's net profit (according to IFRS) increased by 21.4% to RUB427.4bn.
The Kyiv court of appeals has ruled to seize the shares of the Ukrainian subsidiaries of Russian state-owned banks Sberbank , VTB and Prominvestbank following a claim filed by 17 companies and one person - ex-chairman of the board of nationalised PrivatBank Oleksandr Dubilet - that lost their assets in Crimea as a result of its annexation by Russia in 2014. The move followed a ruling of the Permanent Court of Arbitration in the Hague that the Russian government must compensate almost two dozen Ukrainian companies associated with close confidantes of Ukrainian oligarch Ihor Kolomoisky for their losses incurred from the illegal annexation of Crimea in 2014. A lawsuit against Moscow was filed by Kyiv-based Everest Estate, 17 other companies as well as Dubilet. According to the Hague court ruling, Russia must pay $159mn in compensation to the affected companies, as well as compensate them for the costs associated with the litigation. The ruling of the Kyiv court of appeals states the plaintiffs appealed to it for recognition of the arbitration decision made in July of this year, and on July 17 the Ukrainian court officially notified the debtor about the receipt of such a statement. In August, the plaintiffs initiated the arrest of shares in the Ukrainian subsidiaries of Russian banks and other security measures. In particular, the court ruling dated September 5 bans VTB, Prominvestbank and Sberbank from liquidating or reorganising the legal entity, carrying out any actions aimed at alienating movable and immovable property belonging to the banks, including under contracts for sale, purchase, exchange, donation and etc., Interfax news agency reported on September 12. The same day, Russia's biggest lender Sberbank said that it is going to challenge the ruling of the Kyiv court of appeals.
8.1.9 Bank news
Russia's second-largest bank state-controlled VTB announced it is selling its New York-based VTB Capital to the management , Reuters reported on September 3. VTB will have no direct presence in the US following the deal. The business, now called Xtellus Capital Partners, will still provide brokerage services to VTB, so that the bank can continue offering equity and fixed income products in the US to its clients. The sale was motivated primarily
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