MOSCOW (Reuters) -Russia’s dominant lender Sberbank on Friday reported an 11.3% rise in first-quarter net profit to 397.4 billion roubles ($4.32 billion), boosted by growth in deposits and its loan portfolio.
Sberbank made record profits of 1.5 trillion roubles in 2023, a more than five-fold increase on the previous year, as Russia’s banking sector recovered from the impact of financial sanctions over Russia’s actions in Ukraine.
The state-owned bank, which dominates Russia’s banking sector with around 110 million retail clients, this week announced plans to make a record annual dividend payment of more than $8 billion.
Sberbank is majority-owned by the state and those dividends make a sizeable contribution to Russia’s budget revenues, ultimately enabling the government to continue heavy spending, in particular on what it calls its “special military operation” in Ukraine.
“We are observing strong growth for the start of the year in retail clients’ funds (2.4%), which forms a solid base for the development of the business in the future,” CEO German Gref said in a statement.
The bank’s return on equity dropped to 24.2% from 25% a year ago. Net interest income surged 24.4% to 700 billion roubles.
Sberbank’s loan portfolio was up 1.1% year on year, driven largely by the consumer segment and clients’ funds overall were 5.1% higher, spurred by corporate clients.
($1 = 91.9400 roubles)
(Reporting by Alexander Marrow; editing by Jason Neely and Tomasz Janowski)
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