Russia’s Sber posts $4bn RAS profit in 1Q24

By bne IntelliNews April 11, 2024

Russia’s largest bank state-controlled Sber (Sberbank) posted RUB129bn profit in March 2024, up by 7% in seasonally adjusted month-on-month terms under Russian Accounting Standards, making net profit of RUB364bn ($3.9bn, up by 3.9% year on year and flat quarter on quarter) and return on equity of 22% in 1Q24 (25% ROE in 2023 under RAS).

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. 

Sber’s loan book grew by 1.2% m/m in March (up 1.1% year to date), driven by both corporate and retail lending (especially in credit cards and consumer loans), Renaissance Capital commented on April 10.

Retail customer deposits added 0.9% m/m in March (up 3.4% ytd). Against the backdrop of rising funding costs, net interest income in 1Q24 jumped by 20% y/y to RUB 619bn, while cost of risk (CoR) stabilised at 1.8% (after 1.4% in 2023). 

“Total capital adequacy ratio (H1.0) rose 0.1 percentage points ytd to 13.3%, maintaining sufficient headroom for 2023 profit distribution,” RenCap analysts note, reminding that in April Sber’s Supervisory Board will discuss the payment of dividends based on 2023 results.

“According to our estimates, the payout may amount to about RUB 33.2 per ordinary and preferred share (10.8% [dividend yield] to the current [share] price),” according to RenCap.

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. 

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