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bne Invest
May 17, 2019 www.intellinews.com I Page 13
Russia's Sberbank keeps ROE stable at 22% in April
Russia’s leading bank state-controlled Sberbank has published its April 2019 Russian Accounting Standards (RAS) results that showed the usual strong returns on equity, and a gain in the net interest margins (NIMs).
The bank’s earnings of RUB75bn in April alone were up 13% year-on-year, and up by 12% y/y
to RUB293bn ($4.5bn) for January-April overall, implying a solid 22% ROE. The metrics were supported by RUB11.2bn provision release from debt restructuring of agricultural holding Agrokor, BCS Global Markets commented on May 14.
The bank's net interest margin (NIM) showed
a strong 36bp increase in April to 5.8%, still in January-April NIM was 61bp below y/y at 5.9%. Net interest income turned into positive territory for January- April with 1% y/y growth.
Sberbank's 1Q19 IFRS results were about 7% ahead of the analyst consensus on RUB226.6bn ($3.5bn) net income (up by 7% year-on-year and 28% quarter-on-quarter), making a 23% Return on Equity (ROE).
Sberbank is Russia's largest creditor and deposit holder. As reported by bne IntelliNews, the bank is consistently tending as the most valuable Russian company. It is an investor’s darling because it is seen as a proxy for the whole Russian economy, but also an innovative bank and one of the largest players in the new digital economy.
That said, the valuation of Sberbank remains well below what is should be thanks to sanctions and the perennial “Russia discount.”
Russian gold major Polyus Gold more than doubles profit in 1Q19
Russia's largest gold producer Polyus Gold more than doubled its IFRS net profit year-on-year to $528mn in 1Q19, beating consensus expectations, albeit mostly on non-operational gains. The company's revenues rose by 22% y/y to $751mn, and Ebitda gained 26% y/y to $488mn, narrowly beating consensus estimates.
Polyus Gold showed stable financial results in the third and fourth quarters of 2018 and is investing in developing two massive gold deposits, Sukhoi Log and Natalka, making it one of the biggest gold producers in the world.
"Polyus’s 1Q19 IFRS results came materially improved y/y as expected, The company confirmed
full-year 2019 production target at 2.8mn ounces – very important, in our view, as some investors were concerned by Natalka’s performance in 1Q19," BCS Global Markets commented on May 14.
BCS GM reiterated the Buy guidance on Polyus shares at target price of $55 per GDR, remaining "positive on the stock with 6.1x M2M P/E and ‘safe heaven’ characteristics in the current volatile market environment."
Previously in April Polyus Gold led the 2019 revival in Russian equity deals, selling a 3.84% stake
in an accelerated book-building SPO of on the Moscow Exchange and raising $390mn.