Page 105 - RusRPTJan23

for the second month in a row post a large pause, revealing continuation of strong trends seen in October. Importantly, no CBR forbearance measures were used by Sber in current financials.
• NII expanded to RUB1524.4bn for 11M22 (+4% y/y) and RUB159.1bn in November (+0.2% m/m; +13% y/y), helped by portfolio growth and interest rates normalization. Retail loans reached RUB11.8tn in November (+2% m/m; +11% ytd), helped by mortgage (+17.3% over 11M22) and credit cards (+26.8% over 11M22). The Green Day campaign was also supportive: loan originations exceeded last year’s campaign. Corporate portfolio increased to RUB18.2tn in November (+1.2% m/m; +7% ytd).
• Fees showed good dynamics and reached RUB547.3bn over 11M22 (+5% y/y) and RUB57bn in November (+16% y/y; +0.4% m/m)
• On OpEx side, cost optimisation helped to show a good result of RUB589.8bn for 11M22 (-4% y/y) and RUB64.3bn in November (-0.3% y/y; -0.2% m/m), while CIR was at 27.1% in November.
• There was no provision line in press release, while CoR amounted to 0.8% in November vs 0.7% in October – at a pre-crisis level with asset quality stable and NPL low at 2.3%.
• There is no disclosure on equity as well as CAR ratios. According to the press release, CAR ratios increased in November and satisfy buffers set by the Supervisory Board in December 2021.
Russia's biggest lender Sberbank has become sustainably profitable and expects to remain profitable in 2023, First Deputy CEO Alexander Vedyakhin said at a conference on Wednesday. "Sber has become sustainably profitable. We are on this stable trajectory, and I am sure that unless, God forbid, something happens, we will maintain stable profitability next year," Vedyakhin said. Sberbank's net profit in November grew by 22.7% to RUB124.7bn under Russian Accounting Standards, but the January–November the profit slid by 84.8% to RUB174.8bn .
8.1.8 Bank news
US may impose restrictions on Vladimir Potanin, Rosbank and Interros,
Interfax reported citing Wall Street Journal (WSJ). Meanwhile, Norilsk Nickel will not be affected by the restrictions. The sanctions list may be officially updated as early as Thursday and may also include Potanin's wife, the WSJ informed.
VTB acquires 100% of Otkritie Bank from the CBR for Rb344bn, according to VTB’s press release. The structure of the deal implies payment of Rb233.1bn in cash and Rb106.87bn in the form of OFZ. The ownership rights to Otkritie Bank’s shares are to be transferred to VTB not later than 31 December 2022, provided that the bank fully discharges its payment
105 RUSSIA Country Report January 2023 www.intellinews.com