trending Market Intelligence /marketintelligence/en/news-insights/trending/5Y43YSUTy54qnuoNUvD4uw2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Sberbank reveals ambitious targets, eyes digital focus

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Street Talk Episode 65 - Deferral practices trap US bank portfolios in purgatory


Sberbank reveals ambitious targets, eyes digital focus

PAO Sberbank of Russia wants to focus on internet-based activity as it eyes competition with tech giants, its top executives said Dec. 14 at an investor day in London.

Russia's largest bank is already experimenting with using drones to deliver up to 3kg of cash and with robots taking over the functions of branch tellers, Chief Risk Officer Alexander Vedyakhin said. Further, the lender — which controls more than half the Russian retail banking market — will start developing cybersecurity software and invest in online commerce, education and healthcare, he added. It will also expand its financial advice, transaction-banking and brokerage businesses. And a quarter of all mortgage loans extended by Sberbank in 2020 are to be issued online.

SNL Image

Increasing risk appetite, reducing costs

Sberbank booked a net profit of 222.40 billion Russian rubles in the third quarter, according to data compiled by S&P Global Market Intelligence. New accounting standards known as IFRS 9 will have an impact of 40 basis points on the bank's common equity Tier 1 capital, as provisions against bad loans are set to increase by 10%. The bank's CET1 will touch 12.5% by 2020, as its net interest margin will fall below 5% from 5.5% in 2018.

The lender's net income is projected to rise by more than 40% by the end of 2019, reaching a trillion rubles, as the bank aims to pay 50% of its profits in dividends to shareholders, starting in 2018. The Central Bank of the Russian Federation owns 50% plus one share of Sberbank's Moscow-listed equity.

The bank's return on equity will be around 20% by the beginning of 2020, CFO Alexander Morozov said. Sberbank's fees and commissions income is expected to grow to 580 billion rubles in 2020 from 390 billion rubles in 2017. Its loan-to-deposit ratio will increase to 99% from 91% currently. Meanwhile, costs will stay flat compared to 2017, meaning that the bank's cost-to-income ratio will fall to around 30%, partly due to roughly 18% of its employees in Russia being replaced by machines, according to the executives.

Asset management income is projected to be 118 billion rubles in 2020, up from 25 billion rubles in 2017. Brokerage revenues are set to grow almost fourfold, reaching 7.8 billion rubles in 2020 compared to 2 billion in 2017.

"We are increasing our risk appetite but we are bringing down the cost of risk," Morozov said.

He added that Sberbank remains vulnerable to a shock in the value of the ruble against the dollar, saying: "Our biggest risk is foreign-exchange risk. But we project [the ruble] to be rather stable."

Although the targets might seem ambitious and "adventurous," they are based on conservative assumptions and are achievable, CEO Herman Gref told the audience.

"We have zero chances to not deliver on the promises we make today," he said.