Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Sberbank Expects Profit in Eastern Europe

Sberbank expects to swing to a profit this year with the Eastern European business it bought from Austria's Volksbanken, deputy chief executive Sergei Gorkov told Austrian paper Die Presse.

He did not give a more precise forecast and said Sberbank was still weighing whether it would inject more capital into the former Volksbanken International, or VBI, business that required extra provisions last year to cover problem assets.

"We will reflect whether (capital injections) are needed or not, in consideration of the Austria business. They are not necessary at the current stage," he was quoted as saying in an interview published on Wednesday.

He reiterated previous complaints that Sberbank was disappointed with the quality of assets and management it got at VBI, but declined to comment on whether it would seek compensation. He said no negotiations on this were taking place.

Gorkov said Sberbank was discussing merging units in Austria and would announce in October a timetable for this, which he said could happen in one or two years at the earliest.

Russia's largest bank told analysts in April that it was sticking to its forecast for a rise in net profit of at least 6 percent this year, driven by robust retail lending growth. Sberbank posted record net profit of 347.9 billion rubles last year.

SBT Venture Capital, a division of Sberbank, led the recent venture round to raise $12 million for California-based financial software firm Sequent, the company announced this week, RIA Novosti reported.

In a statement, Sequent said Sberbank had joined with existing investors Opus Capital and Jado Investments, both of which are headquartered in California, in the effort to generate fresh financing for the Redwood City-based company, which was founded in 2010.

Sequent also said Mircea Mihaescu, director of IT strategy and technology innovation for SBT Venture Capital, would join the company's board under the terms of the deal.

Sequent CEO Robb Duffield said the new funding "will allow us to continue to expand our team of industry experts, meet the growing market demand and scale for future growth," according to the statement, released Monday.

According to Sequent's website, the company produces software and service platforms designed to help customers download payment cards and other credentials for making payments securely over their mobile devices.

… 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.

paiment methods
Not ready to support today?
Remind me later.

Read more