AGL 5.60 Decreased By ▼ -0.18 (-3.11%)
ANL 8.90 Increased By ▲ 0.02 (0.23%)
AVN 76.85 Decreased By ▼ -2.07 (-2.62%)
BOP 5.26 Decreased By ▼ -0.02 (-0.38%)
CNERGY 4.63 Decreased By ▼ -0.07 (-1.49%)
EFERT 81.27 Decreased By ▼ -0.33 (-0.4%)
EPCL 50.08 Decreased By ▼ -0.83 (-1.63%)
FCCL 13.16 Decreased By ▼ -0.22 (-1.64%)
FFL 5.69 Decreased By ▼ -0.03 (-0.52%)
FLYNG 7.07 Decreased By ▼ -0.08 (-1.12%)
FNEL 4.79 Decreased By ▼ -0.03 (-0.62%)
GGGL 8.80 Decreased By ▼ -0.10 (-1.12%)
GGL 14.55 Decreased By ▼ -1.33 (-8.38%)
HUMNL 5.69 Decreased By ▼ -0.08 (-1.39%)
KEL 2.63 Decreased By ▼ -0.03 (-1.13%)
LOTCHEM 28.60 Decreased By ▼ -0.45 (-1.55%)
MLCF 24.49 Decreased By ▼ -0.61 (-2.43%)
OGDC 72.43 Decreased By ▼ -0.02 (-0.03%)
PAEL 15.36 Increased By ▲ 0.01 (0.07%)
PIBTL 5.00 Decreased By ▼ -0.05 (-0.99%)
PRL 16.10 Decreased By ▼ -0.19 (-1.17%)
SILK 1.08 Decreased By ▼ -0.01 (-0.92%)
TELE 9.14 Decreased By ▼ -0.23 (-2.45%)
TPL 7.23 Decreased By ▼ -0.10 (-1.36%)
TPLP 18.61 Decreased By ▼ -0.34 (-1.79%)
TREET 21.68 Decreased By ▼ -0.32 (-1.45%)
TRG 136.71 Decreased By ▼ -4.44 (-3.15%)
UNITY 16.88 Decreased By ▼ -0.14 (-0.82%)
WAVES 9.86 Decreased By ▼ -0.04 (-0.4%)
WTL 1.41 No Change ▼ 0.00 (0%)
BR100 4,225 Decreased By -29.6 (-0.7%)
BR30 15,518 Decreased By -214.7 (-1.36%)
KSE100 42,150 Decreased By -243.4 (-0.57%)
KSE30 15,588 Decreased By -75.7 (-0.48%)
Business & Finance

Sberbank posts record quarterly profit, cuts provisions

  • Q2 net profit up 95.1% y/y to $4.44 bln.
  • Share of non-performing loans decline.
  • Revenue from non-financial business jumps.
  • Sberbank shares up in line with broader market.
Published July 29, 2021
Follow us

MOSCOW: Russia's largest lender Sberbank made 325.3 billion roubles ($4.44 billion) in net profit in the second quarter, a record quarterly result amid the country's economic recovery and a sharp cut in provisions against bad loans.

Last year, Sberbank missed its pre-pandemic target with a 10% decline in net profit owing to provisions against bad loans, but it pledged to maintain its dividend payout and promised a "significant" rise in 2021 profit.

Sberbank said on Thursday its net profit jumped 95.1% year on year in April-June, while net interest income rose 10.3% to 439.5 billion roubles.

"In the second quarter we saw high consumer and transactional activity and improved dynamics in corporate lending," Chief Financial Officer Alexandra Buriko said in a statement.

Russia's Sberbank lowers 2021 cost of risk forecast

The results also reflect the rapid economic recovery in Russia, she said.

Sberbank shares were up 0.3% at 303.8 roubles, slightly underperforming the benchmark MOEX index that gained 0.4% as of 1200 GMT.

After shrinking 3% in 2020, its sharpest contraction in 11 years, the Russian economy has already recovered to pre-pandemic levels, authorities say.

Sberbank's net credit loss allowance charge for debt financial assets, or provisions against bad loans, shrank to 30.2 billion roubles in the second quarter of 2021 from 126.5 billion roubles a year earlier.

Stabilisation of the loan portfolio asset quality helped to significantly reduce the credit risk cost, Buriko said.

The share of non-performing loans declined to 6.2% as of end -June from 6.8% at the end of March, the bank's results under the International Financial Reporting Standards showed.

IMF raises Russia's 2021 economic growth forecast

Sberbank's non-financial business, which includes e-commerce, taxi services, a online cinema and food delivery among others, posted a revenue of 41.1 billion roubles in the second quarter.

In the first six months of 2021, the non-financial business segment generated revenue of 74.7 billion roubles, more than in the entire 2020.

"The business dynamics for the first half of the year have formed a solid ground for a more ambitious return on equity forecast of over 22%," Buriko said.

Comments

Comments are closed.

Sberbank posts record quarterly profit, cuts provisions

PTI to quit Punjab, KP assemblies this month: Imran Khan

US condemns attack on Pakistani embassy in Kabul, calls for probe

Moonis’ claims on Gen Bajwa raises doubts on institution’s apolitical narrative: Sanaullah

PTI quitting provincial assemblies will be humiliating for its voters: Saad Rafiq

Russia: price cap is ‘dangerous’ and will not curb demand for our oil

Pakistan calls on interim Afghan govt to up security at Kabul embassy after attack

US unveils high-tech B-21 stealth bomber

England in charge in Rawalpindi despite Babar hundred

Polling ends, vote-count underway in AJK local govt elections

SBP repays $1bn bond before due date