Russia’s largest state-owned lender shakes off sanctions
23 April 2024 - 20:12
byElena Fabrichnaya
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Moscow — Russia’s largest lender, state-owned Sberbank will make a record annual dividend payout of 750-billion roubles ($8.04bn) on its 2023 results, CEO German Gref said on Tuesday.
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.
Sberbank made record profits of 1.5-trillion roubles in 2023, a more than fivefold increase on the previous year, as Russia’s banking sector recovered from the impact of financial sanctions.
Shares in Sberbank were down 1.7% in Moscow as of 10.15am GMT, dropping from a near two-and-a-half year high of 315.8-roubles hit earlier in the session.
Gref said the board had recommended a dividend of 33.3 roubles per share.
“This is a record dividend figure in all our history and the result of Sber’s successful work last year,” Gref said.
Banking behemoth Sberbank is one of Russia’s most valuable companies in terms of market capitalisation, and its share performance can dictate flows in the wider stock market.
Gref said 2024 would be a challenging year, but was bullish on Sberbank’s profits.
“By all our estimates, this year we will be able to earn more net profit than last year,” Gref said.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Sberbank’s $8bn payout boosts Kremlin coffers
Russia’s largest state-owned lender shakes off sanctions
Moscow — Russia’s largest lender, state-owned Sberbank will make a record annual dividend payout of 750-billion roubles ($8.04bn) on its 2023 results, CEO German Gref said on Tuesday.
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.
Sberbank made record profits of 1.5-trillion roubles in 2023, a more than fivefold increase on the previous year, as Russia’s banking sector recovered from the impact of financial sanctions.
Shares in Sberbank were down 1.7% in Moscow as of 10.15am GMT, dropping from a near two-and-a-half year high of 315.8-roubles hit earlier in the session.
Gref said the board had recommended a dividend of 33.3 roubles per share.
“This is a record dividend figure in all our history and the result of Sber’s successful work last year,” Gref said.
Banking behemoth Sberbank is one of Russia’s most valuable companies in terms of market capitalisation, and its share performance can dictate flows in the wider stock market.
Gref said 2024 would be a challenging year, but was bullish on Sberbank’s profits.
“By all our estimates, this year we will be able to earn more net profit than last year,” Gref said.
Reuters
Lavrov warns West on dangers of direct clash between nuclear powers
German defence chief says Russia could attack Nato within 5 years
Russian hypersonic scientist jailed for treason
Russian officials effectively prohibited from travelling
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.