Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Russia's Sberbank makes over 50 billion rbls profit in 10-months

Stock Markets Nov 10, 2022 07:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The logo of Russia's largest lender Sberbank in Moscow, Russia, December 24, 2020. REUTERS/Maxim Shemetov

MOSCOW (Reuters) -Russia's largest lender Sberbank's net profit for the first ten months of the year exceeded 50 billion roubles ($812 million) boosted by a strong performance in October, Chief Executive German Gref said on Thursday.

Like many other Russian banks, Sberbank is under pressure from western sanctions that cut it off from the global financial system shortly after Moscow sent troops to Ukraine in February in what it said was a "special military operation".

Russian financial authorities have managed to stabilise the situation - yet restrictions, including capital controls, remain and partial mobilisation led to cash outflows from retail accounts in September and October.

Gref, a long-serving Sberbank CEO who had turned the state bank into a semi-technological financial company before the Ukraine crisis, said that in October alone, the bank earned nearly 123 billion roubles profit under Russian Accounting Standards.

He said the quality of the loan portfolio had stabilised and non-performing loan provisions were returning to pre-crisis levels, meaning the bank was well-capitalised and did not need to make use of a relaxation of rules by the central bank designed to support the sector.

By contrast, Andrei Kostin, CEO of state VTB, Russia's No.2 bank, said on Thursday his bank was using all the help offered because of capital problems and as his bank was making losses.

Sberbank shares were trading at 5.6% and VTB shares were up 3.1% at 1136 GMT, respectively.

Sberbank's results "are good news allowing us to expect strong financial results in the remaining months and to hope for a dividend payout return," Promsvyazbank analysts said in a note.

Dividends from Sberbank and VTB are an important source of budget revenues.

Sberbank sees no restrictions on dividend payments in the coming years while VTB would use the bulk of its profit to beef-up the capital, their CEOs have said.

Russia's Sberbank makes over 50 billion rbls profit in 10-months
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email