Sberbank, Russia's largest bank by assets, reported a net profit of RUB141bn ($1.6bn) in July 2024, marking a 0.6% increase month on month and an 8.3% rise year on year, according to the bank's abbreviated financial results for the first seven months of the year under Russian Accounting Standards (RAS). The bank's return on equity (ROE) for July stood at 26%, reports Renaissance Capital.

For the January to July period, Sberbank's net profit reached RUB910bn ($10.8bn), reflecting a 6.0% y/y increase and an ROE of 23%. However, following the payment of dividends for 2023 in July, the bank's total capital adequacy ratio (H1.0) decreased by 1.5 percentage points to 11.8%, as expected says Renaissance Capital.

In July, Sberbank's loan portfolio grew by 1.4% m/m, contributing to a 7.4% increase since the beginning of the year. The retail segment saw a significant slowdown in growth (+0.3% MoM) due to the cancellation of non-addressed preferential mortgages and delays in establishing new parameters for family mortgages. In contrast, the corporate segment experienced a sharp acceleration in growth (+2.2% m/m), likely driven by large tax payments in July.

Client funds at the end of July remained stable compared to the previous month, with an 8.9% increase since the beginning of the year. The inflow of funds from individuals slowed to +0.7% m/m, likely due to the holiday season, while funds from legal entities decreased by 1.3% m/m.

Despite initial expectations, the dynamics of Sberbank's loan and deposit portfolios supported further growth in net interest income. The bank's cost of risk rose slightly in July to 0.7%, up from the previous month but still well below the levels seen earlier in the year (1.4% in 1H24). The ratio of operating expenses to operating income increased to 30% in July, up from 27% in the first half of the year, but remained below the bank's target range of 30-32% for 2024.

Sberbank's current capitalisation stands at RUB 6,347,689mn, with a trading volume of RUB13,211.2mn and a free float of 47.68%. The bank's ticker symbol is SBER.