Page 16 - BNE_magazine_06_2020 Growers

16 I Companies & Markets bne June 2020
line pressure (mostly on fees) and elevated cost of risk of 3.5% (albeit down from March's peak of 6.1%).
BCS GM analysts see the news as negative for the name, but still maintain a Buy recommendation for Sberbank's shares.
In April the issuance of retail loans dropped by 42% from the average seen in 1Q20 to RUB116bn, with the repayment of loans for the first time in three years exceeding the loans granted, Sberbank said, without providing exact figure of repaid loans.
The decline was the steepest in unsecured consumer loans (down by 59%), while mortgages decreased by 9%. The
Sberbank 4M20 RAS results
overall retail loan portfolio shrank by 0.4% to RUB14.3 trillion. Despite the 22% decline in corporate issuance, the corporate loan portfolio added 1.8% in real terms.
In the meantime net interest margin of the bank continued to show resilience and stayed unchanged at 5.8% in April and for 4M20 (-30bp y/y), with net interest income up 10% y/y. On the funding side retail deposits inflow supported with 2% m/m growth, offset by corporate accounts decline of 5% m/m. Fees and commissions were weak in April (-32% m/m and -20% y/y), affected by lower transactional activity during lockdown, but supported by stronger brokerage, BCS GM commented.
Sberbank's capital adequacy levels (CAR) "look strong", BCS GM believes, with a first-tier capital ratio at 15% as of May 1 versus the 8% regulatory minimum.
“In April the issuance of retail loans dropped by 42% with the repayment of loans for the first time in three years exceeding the loans granted”
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