Curious about Sberbank of Russia net worth and financial performance in 2024? Ando Money breaks down key insights, from the bank’s loan portfolio growth to deposit performance.
Let’s dive into what drives this financial giant’s success.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Sberbank |
| Full Name | PJSC Sberbank |
| Traded as | MCX: SBER |
| ISIN | RU0009029540 |
| Founded | 1991 |
| Founders | State Labor Savings Banks System of the USSR |
| Country/Territory | Russia |
| Headquarters | Moscow |
| Chief Executive Officer | Herman Gref |
| Number of Employees | 281,000 (2019) |
| Market Cap | $62.43 Billion (September 2024) |
| Total Assets | $626 Billion (2023) |
| Total Equity | $77.3 Billion (2023) |
| Revenue | $34.2 Billion (2023) |
| Net Income | $17.7 Billion (2023) |
What is the Net Worth/ Market Cap Of Sberbank of Russia in 2024?
As of September 2024, Sberbank holds a market capitalization of $62.43 Billion, placing it among the largest banks in Russia and globally.
This market cap demonstrates the bank’s resilience and growth despite sanctions and economic challenges in recent years.
Sberbank’s performance remains competitive when compared to other major players in the industry, reflecting its strong financial foundation and vast customer base.
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Financial Performance Overview
Key Financial Indicators Contributing to Revenue
In 2024, Sberbank experienced notable growth in several key financial indicators, reflecting its strong position in the Russian banking sector.
One of the most significant factors contributing to revenue growth is net interest income, which surged by 16.9% year-on-year to reach RUB 1,244.1 billion (approx. $13.7 Billion). This rise was fueled by an increasing volume of working assets.
Additionally, net fee and commission income also played a crucial role in enhancing revenue.
Sberbank reported a 9.7% increase year-on-year, amounting to RUB 353.8 billion (approx. $3.9 Billion).
This growth came primarily from the expansion in acquiring volume, along with income from trade finance and documentary operations.
Growth in Loan Portfolios
Sberbank’s loan portfolios, both retail and corporate, showed robust growth throughout 2024.
The retail loan portfolio grew by 8.1%, surpassing RUB 16.8 trillion (approx. $184.6 Billion), while the corporate loan portfolio expanded by 4.4%, reaching RUB 24.3 trillion (approx. $267 Billion).
This substantial increase in loans highlights Sberbank’s capability to maintain a steady credit flow to consumers and businesses alike.
A key highlight within retail loans was the growth of mortgage loans, which saw a 5.9% increase during the first six months of 2024, driven by demand related to the anticipated completion of several state subsidy programs.
Impact of Mortgage Lending
The mortgage loan portfolio at Sberbank grew significantly in June 2024, with a 2.9% rise month-on-month.
This translates to RUB 10.7 trillion (approx. $117.5 Billion) in total mortgages, reflecting the bank’s dominance in this sector.
Mortgage originations during the month amounted to RUB 415 billion (approx. $4.6 Billion), marking a significant jump from previous months. This surge underscores the strategic importance of mortgage lending as a driver of the bank’s overall revenue.
Role of Deposits in Capital Structure
Retail deposits at Sberbank grew by 11.9% in the first half of 2024, reaching RUB 25.3 trillion (approx. $278 Billion).
This growth was largely driven by the bank’s competitive deposit terms, which attracted a significant amount of funds from individuals.
In June alone, Sberbank raised about RUB 900 billion (approx. $9.9 Billion) from retail clients, marking the highest inflow since the beginning of the year.
Conversely, corporate deposits saw a slight decline in June, decreasing by 3.1% to RUB 11.1 trillion (approx. $121.8 Billion).
This dip was attributed to liquidity management decisions aimed at optimizing the cost of liabilities, although corporate deposits increased by 1.9% for the year overall.
Expansion of SberPrime and Loyalty Programs
Sberbank’s focus on enhancing customer loyalty through programs like SberPrime and SberSpasibo has yielded significant results.
The SberPrime subscriber base grew by 2.1 million in the first half of 2024, bringing the total number of subscribers to 12.2 million.
This program provides customers with additional benefits such as higher cashback rates, which helps in customer retention and, ultimately, revenue generation.
Similarly, the SberSpasibo loyalty program saw a surge in users, with an additional 8.4 million clients joining the program, bringing the total to 85.6 million.
This increase can be attributed to the program’s revamped terms and expanded cashback categories, which have made it more attractive to Sberbank’s retail customers.
Operating Expenses and Efficiency
Despite the bank’s impressive revenue growth, operating expenses rose by 20.2% year-on-year, reaching RUB 447 billion (approx. $4.9 Billion) for the first six months of 2024.
Sberbank’s cost-to-income ratio stood at 27.0%, reflecting the bank’s investment in infrastructure and customer service improvements.
While the rising costs could pose a challenge, the bank has maintained a healthy balance between expense management and revenue generation.
Capital Adequacy and Risk Management
Sberbank’s capital adequacy improved throughout 2024, with Core Tier 1 capital rising by 11.6% to RUB 5.9 trillion (approx. $64.8 Billion) and Tier 1 capital reaching RUB 6.0 trillion (approx. $65.8 Billion).
These capital increases helped Sberbank maintain a stable capital adequacy ratio, supporting its ongoing growth while managing risks effectively.
FAQs about Sberbank of Russia
How did Sberbank perform financially in the first half of 2024?
The bank reported a 5.6% increase in net profit, reaching RUB 768.7 billion. Return on equity was 22.9%, driven by loan expansion and deposit growth.
What is the significance of SberPrime and the loyalty program?
The bank’s SberPrime subscribers reached 12.2 million. The SberSpasibo loyalty program grew to 85.6 million users, boosting customer retention.
How have deposits changed in 2024?
Retail deposits increased by 11.9% to RUB 25.3 trillion. Corporate deposits grew 1.9% to RUB 11.1 trillion.
What challenges does the bank face from sanctions?
The bank is impacted by EU and US sanctions. These have restricted its access to capital markets and led to the closure of some foreign operations.
How does Sberbank manage capital and risk?
Core Tier 1 capital rose by 11.6% to RUB 5.9 trillion. Tier 1 capital reached RUB 6.0 trillion, ensuring financial stability.
Conclusion
Sberbank’s financial strength in 2024 reflects its resilience. Share your thoughts or dive deeper into the conversation at andomoney.com.
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