Russia’s Sberbank (Sber) posts $4.3bn IFRS net profit in 1Q24

By bne IntelliNews April 30, 2024

Russia’s largest lender state-controlled Sberbank (Sber) posted an 11.3% year on year increase in IFRS net profit to RUB397bn ($4.3bn) in 1Q24.

As followed by bne IntelliNews, in 2023 Sber posted 5.5-fold year-on-year net IFRS profit jump to a record-high of RUB1.5 trillion ($16.3bn) and made a return on equity (ROE) of 25.3%. Compared to 2021, prior to the full-scale military invasion of Ukraine, Sber’s net profit increased by 21%. 

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 has confirmed that it will pay 50% of IFRS net profit in dividends for 2023.

In 1Q24, under IFRS, net interest income increased by 24.4% y/y to RUB699.9bn due to growth in the volume of operating assets. Net interest margin stood at 5.88%, down 38 basis points quarter on quarter. 

Net fee and commission income increased by 7.6% y/y to RUB184bn on the back of higher income from cash management, acquiring and documentary business. Total provision expenses and revaluation of loans decreased by 36.7% y/y to RUB53bn.

Under IFRS, Sber’s retail loan portfolio stood at RUB16.5 trillion as of the end of 1Q24 (+2.5% year to date). 

Consumer lending and credit cards were the main retail lending growth drivers, while mortgage lending remained under pressure from high interest rates. Retail loan yields rose to 14.9% (+0.8 percentage points year to date). The mortgage portfolio, largest in Russia, grew to RUB10.3 trillion (+0.8% year to date), while consumer loan portfolio grew to RUB4 trillion (+2.4% ytd).

Retail deposits stood at RUB23.5 trillion (+2.4% YTD and +1.9% excluding currency revaluation). 

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