Page 57 - RusRPTJune18

maintained the 12-month target price for ordinary shares of Sberbank at RUB360 and for preferred shares at RUB320, implying and estimated total return of 64% and 71%, respectively, while reiterating the Buy recommendations for both types of shares. In April the supervisory board of Sberbank suggested paying 36% of net IFRS profit for 2017 in dividends, increasing the payout from 25% paid for last year, but stopping short of increasing it to 50% of profit. The bank made a record-high net profit of RUB749bn and will pay RUB271bn ($4.4) in dividends, doubling the 2016 payout of RUB135bn in absolute terms.
Financial Group Budushchee , which controls one of Russia’s largest private pension fund groups, posted a net loss of RUB15.8bn ($249.2mn) last year , it said on Friday. FG Budushchee, which manages pension funds worth a total of 335bn covering 5.2mn people, made a net profit of 6.3bn in 2016. Budushchee, which is Russian for “future”, was a shareholder in Otkritie and Promsvyazbank - two large private banks bailed out by the central bank last year. It is controlled by the family of businessman Boris Mints. The group did not immediately reply to a Reuters request seeking a comment.
Hungarian OTP to close its Russian Touch Bank Hungary’s OTP Group will close its Russian Touch Bank after it posted losses for three years in a row , the bank said in a statement on May 16. The bank was launched in 2015 using OTP’s Russian license and was an online bank catering to the middle class. But the project proved to be a flop seeing losses mount from RUB1.2bn in 2016 to RUB1.6bn ($28mn). OTP reportedly invested $40mn into the project. The digital bank was hoping to compete with the highly successful Tinkoff bank , which after some teething problems is now an investor’s darling.
8.2 Central Bank policy rate
57 RUSSIA Country Report June 2018 www.intellinews.com