Page 94 - RusRPTDec21

Since the beginning of 2021, the Sberbank Group has earned about a trillion rubles, boosting earnings by 1.7 times over 2020 and 1.5 times over 2019. This conclusion is aided by the traditional business’s rapid growth rate. However, the sale of Eurocement had an impact on the third-quarter earnings, Kommersant writes. Sberbank, the biggest participant in the Russian banking industry, earned 348.3bn rubles in the third quarter, and 978.1bn rubles (13,9bn $) from the beginning of 2021, as demonstrated by its IFRS reporting. According to Alexandra Buriko, the bank’s finance director, this is “a record level in the whole history.” Thus, Sberbank’s net profit for the first nine months of 2021 climbed by 75% year on year, and by 28.3% at the conclusion of the third quarter. “The quarterly results were impacted by the recognition of RUB65bn in profit from ceased operations in connection with the sale of the Eurocement group of businesses,” the bank notes. Sberbank took ownership of the firm in the autumn of last year and sold construction materials to the Mikhailovsky factory for 161bn rubles in July of this year. The third-quarter results marginally above experts’ estimates, which were for a profit rise to 342.3bn rubles in the third quarter, according to Interfax’s consensus projection. The return on equity at Sberbank was 25.8%.
8.1.8 Bank news
VTB published its unaudited IFRS results for October on November 26, showing monthly net profit surging four-fold to RUB22bn ($291mn). The key results included:
● Monthly NII was up 21% y/y due to the growth in interest-generating assets and the bank’s stable NIM, which changed little m/m but added c. 10bps y/y.
● Net fee and commission income moderated 9% y/y but was up 5.5% m/m.
● The provision charge dropped 37% q/q and 41% y/y, as VTB partially reversed the macro-factor provision buffer accrued in 2020. Out of the RUB15.8bn accrued in 2020, RUB5.3bn was reversed last month. In October, VTB’s cost of risk dropped to 0.4%; although it would have likely remained below 1% even without this reversal. VTB CFO Dmitry Pianov mentioned when speaking to journalists today that VTB plans to continue reversing this buffer in November-December.
● Other expenses declined 68% y/y, as there was likely no or only a limited negative revaluation of real estate by VTB last month vs. October 2020.
● Opex was up 10% m/m and 31% y/y due to VTB’s continued investments in its technological transformation.
●
Nevertheless, net profit surged four-fold y/y in October. Over 10M21, VTB’s net profit was RUB280bn, almost reaching the FactSet consensus estimate of RUB284bn for FY21.
94 RUSSIA Country Report December 2021 www.intellinews.com