Page 82 - RusRPTFeb19

private pension funds to consolidate around four state-affiliated groups for easier supervision.
The private pension funds market might be managed by the CBR in the same way as the banking sector, with a dominant state controlled market leader and few state-affiliated banks accounting for almost all of the market. The state development bank Vnesheconombank that could get a NPF (non-state pension fund) mandate could become the "Sberbank" of the pension universe.
The state PFR might be next in line for a clean-up, as Gykaylo was curating the capital spending and purchasing in the fund. Reportedly he was let go due to shady dealings around construction of the regional PFR buildings, which already led to an arrest in the Krasnoyarsk branch of the fund.
According to Kommersant, the government will also fire the IT and infrastructure heads of the PFR Alexey Ivanov as the fund is lagging behind with digital modernisation.w
8.1.8 Sberbank news
Sberbank of Russia plans in 2019 to increase its net profit by more than 10%, according to the presentation of the bank for the "Day of Analyst". The net profit forecast for 2018 was not voiced by the bank. Net profit under IFRS for the first nine months amounted to 655.5 billion rubles. Sberbank plans to increase its own capital in 2019 also by more than 10%, follows from the presentation. The equity capital of the Sberbank Group in accordance with the Basel III standards in accordance with the standard approach using internal ratings (TAC) amounted to 3.8 trillion rubles as of September 30, 2018. Sberbank also expects the net interest margin to remain at 5.5% in 2019, as in 2018. The increase in interest income is projected at 14-16% against 16-19% in 2018. The cost of risk will remain, according to Sberbank, at 130 basis points in 2019, as in 2018. It is also assumed that in 2018-2019, the profitability of the bank’s capital will exceed 20%. According to the presentation, Sberbank plans in 2019 to increase its corporate loan portfolio by 5-7%, which corresponds to the forecast results of the entire sector. The retail loan portfolio will show a slightly better result than expected in the sector,
82 RUSSIA Country Report February 2019 www.intellinews.com