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Russia. According to the investment bank’s base case, in the next 12 months, Sber’s non-banking holdings will grow in value to RUB594bn ($8.1bn). In the optimistic scenario, they will grow to RUB1.1 trillion ($14.9bn). While this means that Sber’s tech assets will still amount to just a fraction of the firm’s projected RUB7.3 trillion capitalization, it places Sber second to just Yandex in the Russian tech sector. Yandex’s capitalization on the Nasdaq is $24.8bn. Ozon Holdings, which just IPO’ed in November, is worth $7.8bn. And Mail.ru Group, Sber’s current ridesharing and food delivery partner, is worth $6.8bn. It looks like Gref has put his money where his mouth is, talking of Sber’s ambitions to compete with the world’s tech giants. Perhaps the former economy minister has earned the right to don the tech CEO uniform.
Sberbank released 11M20/Nov RAS financial results. In November P&L lines subdued m/m, given implications of pandemic situation on activity, yet supported by provision release due to currency appreciation. Importantly, loan activity stays strong especially in retail. Ruble appreciated by 4% for the month and depreciated by 23% ytd, affecting financials.
· NIM subdued to 5.5% from 5.8% in October, potentially attributed to repricing on assets side. 11m20 NIM stays mostly stable at 5.8%. Loan growth in retail stays strong with 2% growth m/m (+17% y/y), while corporate added 0.8% m/m adj for FX revaluation.
· Fees were supported by “Green Day” campaign with 7mn+ clients engaged, yet offset by lower consumption due to pandemic situation with RUB42.6bn -9% m/m, +2% y/y. 11M20 of RUB454bn suggests 8% y/y growth only vs 2020G IFRS of “around 10%”.
· CoR turned negative 0.5% in November on currency appreciation of 4% m/m, yet 2.5% for 11M20, attributed to COVID-19 implications with overdue loans mostly unchanged m/m at 3.23% (3.24% Nov, 1).
· OpEx contracted by 5% m/m post a large uptick of 14% m/m in October. Overall, for 11m20 Opex grew just by 4% y/y, supported by pandemic-related enhancement program, with CIR 11m20 of 28%.
· CAR levels stayed unchanged with strong N1.1 of 11.4% vs 4.5% regulatory min.
Sber's structure Immunotechnology may become a single supplier of vaccines for the prevention of COVID-19, a person close to Immunotechnology told Vedomosti. Sergei Shulyak, general director of the DSM Group analytical company, is also aware that the government is
108 RUSSIA Country Report January 2021 www.intellinews.com
