Page 100 - RusRPTNov23

obviously increase.
8.1.8 Sberbank news
PJSC Sberbank published condensed financial results for 9M23 under RAS. Net profit in September, as expected, decreased slightly compared to the previous month - to RUB 130 billion, while achieving a record for 3Q23 at RUB 402 billion. and the amount for 9M23 of 1.13 trillion rubles. Net interest and commission income in September remained close to the previous month's levels, while provisioning and credit revaluation expenses decreased significantly. A decrease in the contribution of one-time factors (less weakening of the ruble than a month earlier) led to a decrease in profits. Return on equity for 9M23 was about 25% (versus the five-year pre-crisis average of about 21%). Let us recall that based on the budget projections for 2024, the Ministry of Finance expects income in the form of dividends from Sberbank at the end of 2023 to be 375 billion rubles, which corresponds to a realistic assumption in our opinion about the distribution of 50% of net profit of 1.5 trillion rubles to dividends. (about 33 rubles per share or 12.5% yield on the current price).
In September, loan portfolio growth remained at a strong level. Loans to individuals grew by 3.6% mom (+22.5% since the beginning of the year), loans to legal entities - by 2.8% mom (+21.0% since the beginning of the year). At the same time, the pace of issuing new loans slowed down compared to previous months. Credit quality remained at historically normal levels: the share of non-performing loans in 9M23 decreased to 2.0%, with provisions covering overdue debt three times. In terms of funding, the growth of funds in the accounts of individuals (just over 60% of the funding base) continued at a rate of 1.9% m/m (+14.8% since the beginning of the year), while funds of legal entities decreased by 1.0 % (+16.9% since the beginning of the year) after a sharp increase a month earlier. The adequacy of the basic (N1.1) and total capital (N1.0) of Sberbank remains at a high level of 10.2% and 13.0%, ensuring compliance with all regulatory requirements of the Bank of Russia without taking into account temporary relief, and without creating pressure on capital and capabilities profit distribution over the medium term.
Sberbank expects record profits for the Russian banking sector by the end of 2023, Taras Skvortsov, vice president and head of the Sber finance department, said speaking on the MOEX_hometalks podcast.
"We agree with this assessment that sector profits will be record high. We are highly likely to overcome the level we had in 2021," he said. Skvortsov noted that not only the largest players, but also by banks outside the top 20 show profits which indicates the health of the sector.
The head of the financial department noted that the bank also expects good financial results for 2023. According to the presentation, Sberbank's profit will
100 RUSSIA Country Report November 2023 www.intellinews.com