Sberbank releases financial results

by Richard Kilner

Story link: Sberbank releases financial results

Russian institution Sberbank has announced its financial results for the first five months of this year.

Sberbank saw net interest income soar by 46.7% compared to the corresponding period last year, and net fee and commission income was up by a tenth.

The increase has been attributed largely due to an expansion of the loan book coupled with higher rates of lending.

The bank also made progress in expenses reductions, with expenses down 8.8% year-on-year.

However, pre-tax profits were down from RUB 77.2bn to RUB 5.4bn, and post-tax profits also declined to RUB 4bn from RUB 56.4bn.

The sharp decline in profits has been attributed to the difficult economic situation prevailing in Russia today.

In context, the sharp profits decline is not as bad as may first appear to be the case, as in the first four months of this year net profit was down to just RUB 0.8bn.