Sberbank of Russia (SBER) Investor Day 2024 summary

Strategic transformation, direction, and business model evolution

• Emphasis on a human-centric, customer-focused business model, leveraging AI and generative technologies to enhance client well-being, efficiency, and long-term interests.

• CEO highlights the importance of understanding customer needs and life situations, with a focus on both retail and corporate clients.

• Major IT reinvention and digital transformation, including legacy-to-platform migration, proprietary solutions, and support for over 1,700 companies with 250+ IT partners.

• Continued investment in technology, with a 30% increase in tech spending forecasted for 2024-2026, over three-fourths allocated to AI.

• Commitment to an open ecosystem, collaborating with partners while rejecting monopolistic approaches.

Financial performance and 2025 guidance

• Net profit for the first nine months of 2024 reached RUB 1.227 trillion, up nearly 7% year-over-year, with return on equity exceeding 25%.

• Record dividend payout of RUB 752 billion, with 50% distributed to the state.

• 2025 guidance: margin at least 5.6%, cost-to-income ratio 30-32%, productivity per employee growth at least 15%, and capital adequacy (N20.0) at 13.3%.

• Corporate loan portfolio grew by 17.8% YTD, retail loan portfolio by 11.9% YTD, with strong market shares in mortgages, retail loans, and credit cards.

• Loan growth expected at 9-11% and deposit growth at 3-5% in real terms for 2025.

AI, technology, and product innovation

• Over 2,000 AI models in use, with AI-driven decision-making covering 90% of working capital loans for large/medium businesses and 82% for small/micro businesses.

• AI models delivered RUB 450 billion in effects in 2024, a 1.5x increase over 2023, and significant cost savings from process mining.

• GigaChat MAX, a proprietary large language model, now serves 7 million users and is positioned among the world's top three models.

• New digital services and platforms launched, including youth-targeted cards, SberKids app, Space for Living, My Real Estate, and expanded loyalty/subscription programs.

• Technology independence achieved with proprietary processing and platform solutions, supporting over 200 million cards and increasing flexibility.