Sberbank: how bad is the annual report?

Sberbank has published its financial statements for the past year 2022. It is known from it that the company’s net profit fell by 75% compared to 2021. Despite the fact that all other indicators of the organization have grown, investors are disappointed. What is wrong with the results of Sberbank – further in the material.

Key indicators

According to the published documentation, the growth of the company’s interest income rose in December to 176.5 billion rubles (19.5%), and over the past 12 months – by 5.2%. Operating expenses for the last month of last year fell by 12% to 80.6 billion rubles. Net fee and commission income, at the same time, increased by 16.7% to 614.8 billion rubles. During the same December, Sberbank issued loans to individuals for a record 625 billion rubles. The value of mortgages has also become unprecedented – 7.7 trillion rubles. In an annual ratio, this is a 20% increase.
The amount of the bank’s net profit, according to the statements, for the entire 2022 amounted to 300.2 billion rubles. This is 4 times less than a year ago of 1.237 trillion rubles. But the most interesting thing is that 250.2 billion rubles have been earned by him over the past two months. It turns out that in the remaining 10 months of the year, the largest bank in Russia earned only 50 billion rubles? It’s impossible to check this information just like that, because the credit institution did not release any statistical data regarding its financial activities in 2022 until November. The reasons for this decision are also known.

Why did Sberbank refuse to disclose the results?

Immediately after the announcement by Vladimir Putin of the start of a “special military operation” on the territory of Ukraine, a wave of sanctions fell on Russia from a number of states, in particular, the United States, Great Britain and the European Union. Under the gun of the first restrictions on the part of the world community were the largest financial giants and their subsidiaries, as well as persons associated with these companies. Sberbank, as the largest Russian bank, was on this list.
The sanctions implied the blocking of the company’s dollar settlements. For her American clients, this meant the need to break off relations and extract all foreign exchange savings. In addition to this, it is worth pointing out the problems that have arisen with the use of cards based on Visa and Mastercard payment systems. At the moment, the population of Russia also does not have the opportunity to fully use Sberbank cards in Apple Pay and Google Pay (however, like many other banks).
Against the backdrop of all these events, the regulator decided to allow financial institutions to hide their statements from the public. Sberbank took advantage of this opportunity. As a result: investors have no idea about the current state of affairs in the company.

What to expect from the bank in the future?

On the Internet, many experts zealously advise investing in the securities of Sberbank. Whether it is worth listening to them is the choice of everyone. But before making any decisions, analyze the real facts:

1. sanctions against the company not only continue to operate, but are regularly supplemented;
2. you can forget about paying dividends in the near future: Sberbank abandoned them in 2021, and following the results of a loss-making 2022, it will definitely not change its decision;
3. The Bank continues to issue consumer loans at the same pace as a year earlier. The risk is to increase the percentage of non-repayment of funds, in particular, due to the mobilization.

You can invest in the assets of Sberbank at your own peril and risk. Given that the results he publishes look as sad as ever, the organizations have something to hide.