Russia’s largest bank state-controlled Sber (Sberbank) posted RUB120bn ($1.3bn) for February 2024 under Russian Accounting Standards (RAS), up by 5% month on month. For 2M24 Sber’s bottom line of RUB236bn made a return on equity (ROE) of 22%, in line with the bank’s guidance.

As followed by bne IntelliNews, Sberbank showed a rise of 21% year on year in RAS profit to a record-high RUB1.48 trillion ($17bn) in 2023, with RUB116bn RAS profit in December 2023 alone. 

To remind, Sber – subject to full-blocking sanctions – did not pay the RUB623bn dividend for 2021 amid the fallout from Russia’s military invasion of Ukraine. But the bank surprised with the record-breaking total dividend payout of RUB565bn ($7.3bn) in 2022, making more than double the RUB271bn net profit the bank earned last year. 

Previously Sber confirmed that it will pay 50% of IFRS net profit in dividends for 2023. In 2023 Sber remained the largest bank in Russia, with its number of active retail clients increasing to 108.5mn people, and corporate clients to 3.2mn. 

The latest RAS disclosure showed that the loan portfolio grew by 0.4% month on month in February (flat year to date), while customer deposits added 2.3% m/m (up 2.5% ytd). 

“Taking this into account, net interest income fell by 6% to RUB199bn in February. At the same time, expenses on provisions and operating expenses grew by 28% and 18% m/m (to RUB84bn and RUB 71bn respectively),” Renaissance Capital analysts commented.

Thus, a significant contribution to the financial result in February was made by other income (Sberbank does not disclose details), which grew to RUB47bn, according to RenCap estimates.

“Given the near-zero dynamics of the loan portfolio, the total capital adequacy ratio (N1.0) remained at 13.2%, maintaining a sufficient margin for 2023 profit distribution [in dividends],” RenCap analysts argue.

The analysts remind that in April the supervisory board will discuss the payment of dividends based on last year's results, with the payment potentially amounting to about RUB33.5 per ordinary and preferred share (dividend yield of 11.2% to the current share price).