Russia’s largest state-controlled bank
As followed by bne IntelliNews,
In 2023, return on equity remained above the long-term average at 24.7% for 2023 and 21.0% in December,
Net interest income in December remained at the previous month's level, while fee and commission income increased significantly, offset by higher operating expenses and provisioning. Notably, in December, the growth of retail customer debt slowed to almost zero.
In December, retail debt growth slowed to 0.3% month on month (versus 2.5-2.7% in October-November), while corporate loan growth accelerated to 1.2% m/m (after 0.7-0.9% growth in previous months).
Overall the loan portfolio grew by 26.3% y/y in 2023. In terms of funding, individuals increased their funds with the bank by 5.7% m/m in December (as per previous reports indicating higher deposits on elevated interest rates), while corporate clients, on the contrary, decreased deposits by 0.9% (after 3.4-4.0% growth in two previous months). At year-end 2023, total retail and corporate deposits grew by 23.8% y/y.
“Given the high asset growth rates, total capital adequacy (N1.0) declined by 1.4 p.p. (up 0.4 p.p. in December) to a still high 13.3% at year-end 2023. The latter will allow the bank to allocate part of 2023 profit to dividend payments,” RenCap believes.
Provided that the IFRS financial result does not differ significantly from the RAS result (in recent quarters the deviation has been insignificant), this would imply a dividend payment of
To remind, Sber, under full blocking sanctions, did not pay the
But the bank surprised with the record-breaking total dividend payout of
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