The largest Russian Bank Sberbank reported a record annual profit of 1.58 trillion rubles (18.1 billion dollars) in a situation where lending for firms and citizens successfully carried from the rising interest rate of the Central Bank to 9 percent.
Such a high rate, expected, increased interest margin, but now it is already so high that the growth of lending is slowing down as they companies are investment and prone to hold the money in the bank of deposits.
“The portfolio of corporate loans increased 19 percent on an annual basis to more than 27.7 trillion rubles. The loan portfolio for citizens grew more moderate due to high interest rates and stricter regulation. The rate is 12.7 percent per year, and the total amount of 18.1 trillion rubles “, reports the reuters of the words of the first man of the GERMAN GREFAN man.
Interest revenues grew 17 percent to three trillion rubles, and the return on equity fell by 1.3 percentage points to 24 percent. This year, a further decline is expected in this segment between 22 and 23 percent.
Among the clients of Sberbank is almost 110 million citizens and more than three million companies.
Last year, the bank sector achieved record profitability of four trillion rubles, and the Central Bank expects to fall for between three and 3.5 million due to credit risk growth and lower margins.
The second largest Russian Bank VTB has also been resistant to the record profit last year, but added that they would not propose a dividend because high interest rates and new regulations negatively act on expectations for this year. The profit of that bank amounted to 551.4 billion rubles, which is an annual growth of 27.6 percent.
Gref also stated that due to the volatility on the global scene cannot guarantee the payment of the dividend in the next three years, the bank for 2024 would be planned, 50 percent of net profit, which would be filed in the Russian state budget.
Sberbank is also considered a technological company due to large investments in artificial intelligence last year integrated into a large part of internal systems.
