Russia’s largest bank Sberbank (Sber) increased its profit by 10% year on year to record-high RUB436bn ($4.7bn) in 1Q25, making a return on equity of 22%, according to the bank’s announcement.

As followed by bne IntelliNews, the profitability of the Russian banking sector has been moderating in the beginning of 2025, but Sber traditionally accounts for over half of the sector’s profit and outperformed in 1Q25 as well.

In 1Q25 Russian banks earned RUB744bn ($8.5bn), down 17% from 1Q24, with an RoE of 17%. 

Sber’s net interest income in 1Q25 increased by 19% y/y, while net fee and commission income rose 10% y/y. 

The bank maintained its 2025 guidance, targeting RoE of over 22% for the full year. 

“We expect that despite a significant slowdown in lending growth, Sberbank will set another net profit record in 2025, earning over RUB1.6 trillion, which, all else equal, implies higher dividend payouts.” Renaissance Capital analysts commented.

As a reminder, Sber, under full blocking sanctions, did not pay the RUB623bn dividend for 2021 amid the fallout from Russia’s full-scale military invasion of Ukraine.

But the bank surprised with the record-breaking total dividend payout of RUB565bn ($7.3bn) in 2022. Sber then paid another record-high RUB752bn ($8.5bn) dividend for 2023, or RUB33.3 per ordinary and one preferred share (10.6% yield for both).

According to the latest reports, Russia's budget revenues from dividends of Sber in 2025 are planned at RUB375bn ($4bn).

The state, represented by the National Welfare Fund, owns 50% plus one share in Sberbank. Thus, the total amount of dividends that can be paid by the bank in 2025 could amount to RUB750bn, or 50% of the IFRS net profit of RUB1.5 trillion according to the bank’s dividend policy.