Page 72 - RUSRptApr17
P. 72
equal to less than 5% of loans (based on minimal capital requirements) and three could absorb less than 1%. The latter are SKS-Bank (subsidiary of Credit Bank of Moscow), UBRIR and Moscow Industrial Bank.
Sberbank has the best business in the Russian banking sector and compares favourably even with its sister bank VTB. Sberbank’s net interest margin continued to grow throughout the year and went north of 6% in 4Q16, while VTB’s NIM stayed broadly in 2H16 at about 3.8%. Cost of funds at both banks dropped 10bpts Q/q in 4Q16, while asset margin added 10 bpts at Sberbank and slid 10 bpts for VTB, mostly driven by respective trends in loan yields and cost of deposits.
72 RUSSIA Country Report April 2017 www.intellinews.com
