Sberbank of Russia (SBER) Q2 2024 earnings summary

Executive summary

• Net profit for Q2 2024 rose 10.1% year-on-year to RUB 418.7 billion, with H1 net profit at RUB 816.1 billion and ROE at 25.9% for Q2 and 25.0% for H1.

• Active retail clients reached 109 million, SberSpasibo loyalty program users at 85.6 million, and SberBank Online MAU at 82.7 million as of June 2024.

• Business activity and consumer spending showed strong year-on-year growth, with robust digital engagement and AI-driven product launches enhancing operational efficiency.

• Corporate clients totaled 3.2 million, SberKids platform expanded to 1.8 million users, and Sber ID users reached 85.5 million.

• Record dividend payment of RUB 752 billion for 2023 was distributed in June, reducing equity.

Financial highlights

• Net interest income in Q2 2024 increased 19.3% year-on-year to RUB 713.2 billion; H1 net interest income up 21.8% to RUB 1,413.1 billion.

• Net interest margin for Q2 2024 was 5.84%, with a full-year forecast above 5.7%.

• Net fee and commission income in Q2 2024 grew 12.1% to RUB 210 billion; H1 up nearly 10% to RUB 394 billion.

• Operating expenses in Q2 2024 rose 16.8% year-on-year, with a cost-to-income ratio of 29.5% for Q2 and 29% for H1.

• Retail client funds exceeded RUB 25.6 trillion, up 9.2% in the quarter; corporate client funds over RUB 15.2 trillion.

Outlook and guidance

• GDP growth forecast for 2024 raised to 3.8%; inflation expected to decrease to 6.5–7.5%.

• Corporate loan portfolio growth forecast increased to 14–17% for 2024; retail loan portfolio growth forecast raised to 12–14%.

• Target ROE for 2024 improved from 22% to over 23%.

• Net interest margin forecast above 5.7%, cost-to-income ratio 30–32%.

• First key rate decrease expected no earlier than Q2 2025.