Gref reported record profits of the savings Bank – RBC

the Prime Minister of Russia Dmitry Medvedev and the head of Sberbank German Gref during a meeting in the Gorki residence

Photo: Alexander Astafyev/TASS

Profit of the savings Bank for 8 months of 2016, a record for all time of its existence, said German Gref at a meeting with Prime Minister Dmitry Medvedev. Overall by 2016 the Bank “very positive” expectations

the profit made by the savings Bank from the beginning of 2016, was a record in its history, said the head of Bank Herman Gref at a meeting with Prime Minister Dmitry Medvedev.

“For eight months of the current year we’re doing even slightly higher than we expected at the beginning of the year. We earned record profit during all years of existence of the Bank, which seems, on the one hand, amazing in a very difficult year, but, on the other hand, is a result of previous years of investing and reduce costs,” — said Gref. His words are on the official website of the Russian government.

As previously wrote RBC, in January—August 2016 profit of Sberbank grew up 322,8 billion rubles, which is almost three times higher than in the same period of 2015. In August, the savings Bank earned a net profit of $ 47.8 billion. During these eight months he is on 51% increased amount of net interest income (before 734,9 bn), while net fee and Commission income increased by 22.8% (198,4 billion rubles). Operating expenses of the savings Bank has increased for eight months by 11.2% due to indexation of salaries of employees. Costs total reserves decreased by 64.1 billion rubles. regarding eight months of 2015 and amounted to 213,7 billion rubles.

the Net profit of Sberbank under IFRS for six months of the current year amounted to 263,1 billion against RUB 85.2 billion in the first half of 2015. The Bank’s financial result was higher than forecast due to growth in interest income and the sale of shares of Krasnaya Polyana. As have informed in the savings Bank, the increase in interest income was primarily due to the increase of securities portfolio (its volume exceeded 2 trillion) and mortgage lending.

According to the Bloomberg consensus net profit in FY 2016 could reach 435 billion, but most analysts expect its growth to 500 billion rubles. “We are also waiting for the Bank’s profit for the year of about 500 billion rubles. It is associated with a stable level of provisioning, the Bank and the net interest margin,” said the analyst “Aton” Michael Ganelin. He notes that the Bank has the ability to decrease funding costs by reducing interest rates on deposits, while lending rates remain high. “This leads to record growth of Bank interest margin and increase its profits,” — said the expert.

In 2015, Sberbank earned 222,9 billion rubles according to IFRS.

At the meeting with Medvedev, Gref, announced that by the end of the year, the Bank retained positive expectations for the financial result. “Although I’m always afraid to predict in the current macroeconomic situation can happen anything, so the bankers are always very superstitious,” admitted the head of Sberbank.

Since the beginning of the year, the Bank issued 5.4 billion rubles of loans to corporate borrowers that, according to Gref, is a rather considerable amount. At the same time, a banker told said that the share of corporate loans in the portfolio of Sberbank decreased by 4 p. p.

the Head of Sberbank said that in the loans segment recorded a decline of 17%. In response, the Prime Minister promised that the government will continue to support the Russian car industry. “We support the automotive industry will continue to achieve in this field (and then they deny it no one can, we now have a real modern industry automotive industry) was not lost in a difficult economic situation. We hope that Sberbank will also contribute,” said Medvedev.