Support The Moscow Times!

Sberbank Q3 Net Up 10-Fold

Sberbank said Monday that it increased third-quarter profit more than 10-fold as it boosted lending and decreased the share of bad loans.

Net income attributable to shareholders rose to 45.8 billion rubles ($1.46 billion) from 4.25 billion a year earlier, Russia’s biggest lender said on its web site. That beat an average estimate of 36.3 billion rubles from 10 analysts.

Russian bank lending to individuals has increased for eight straight months, while loans to companies have climbed for seven, according to Central Bank data. Demand for financing began to recover this year, after the economy shrank 7.9 percent in 2009, the most on record since the Soviet Union collapsed.

“We believe that the results suggest positive earnings trends in the medium term,” Jason Hurwitz and Leyla Sharifullina, analysts at Alfa Bank in Moscow, said in a note.

The share of bad loans fell to 8.6 percent from 9.1 percent in the second quarter, the bank said. That allowed the lender to decrease reserves as a proportion of outstanding loans to 12.2 percent from 12.5 percent.

Sberbank set aside 150 billion rubles as provisions for bad loans in the first nine months, a 50 percent decrease from the same period last year, the lender said. Nine-month profit was 109.9 billion rubles.

Corporate loans jumped 8.9 percent in the third quarter from the previous three months to 4.6 trillion rubles, Sberbank said. Loans to individuals increased 3.9 percent to 1.26 trillion rubles in the same period.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more