Page 92 - RusRPTSept21

performance continued in 1Q21 and in 2Q21 with ROE of 25%.
For 7M21 overall, Sber's net profit stood at RUB722bn (up by 79% y/y)
with 26% ROE.
BCS Global Market on August 6 saw the update as positive with a "spectacular" ROE, while noting that July net income was supported by the one-off sale of the Eurocement group of about RUB20bn gain. This could also mean that 3Q21 IFRS results would imply a respective impact.
BCS GM analysts maintained a Buy rating on Sber's shares.
"As the exposure to Eurocement was booked as a loan in SberBank's standalone accounts, the positive impact from its disposal came in the form of a loan loss provision reversal, but its exact size was not disclosed," Sova Capital commented, while seeing the results as positive and affirming a Buy call on Sber's shares on the list of top picks.
Net interest margin of the bank in July remained flat m/m at 5.6% and 5.5% for 7M21 (-39 basis points y/y) with Net Interest Income of RUB138bn in July (+13% y/y; +5% m/m). NII was supported by the rising interest rates and further expansion of both corporate (+1.3% m/m; +10.2% y/y) and retail portfolios (+2.2% m/m; +25.9% y/y).
Retail loan issuance at a solid RUB485bn mark in July (+26%y/y), primarily thanks to the peaking expenditures on the vacations, BCS Global Markets noted.
Goldman Sachs Values Sberbank’s Non-Financial Ecosystem at $17.6bn. According to Goldman Sachs’ analyses, the current value of Sberbank's non-financial ecosystem is estimated at $17.6bn (1.13 trillion rubles). Analysts predict that the online market for digital non-financial segments in Russia will increase three-fold compared to 2020 and reach $163.4bn (12 trillion rubles). Sberbank targets this market through 40 companies and 20 applications of its ecosystem. The main driver of growth for the company's non-financial services will be e-commerce, analysts note. According to Goldman Sachs estimates, the ecosystem amounts to 10% of the bank's total share value. Since the beginning of the year, Sberbank has invested around $1bn in non-financial business companies. In the next three years, the company will allocate $4-4.7bn (300-350bn rubles) to develop its non-financial products.
92 RUSSIA Country Report September 2021 www.intellinews.com