Sberbank of Russia (SBER) Q3 2024 earnings summary

Executive summary

• Net profit for 9M 2024 increased by 6.8% year-over-year to RUB 1.23 trillion, with ROE at 25.2%-25.5% and EPS at RUB 55.93 for 9M and RUB 19.26 for 3Q.

• Q3 net profit was RUB 411 billion, with ROE at 25.4%.

• Active customer base grew by 1 million since the start of the year, reaching 109.5 million; Sberbank Online MAUs at 83.1 million.

• SberSpasibo loyalty program members reached 89 million; subscription users rose to 17 million.

• Technological advancements included the launch of GigaChat MAX, transition to proprietary card processing, and global acquiring leadership.

Financial highlights

• Net interest income for 9M 2024 rose 19% year-over-year to RUB 2.18 trillion; Q3 net interest income was RUB 762 billion, up 14%-19% year-over-year.

• Net fee and commission income for 9M 2024 increased 10.5% year-over-year to RUB 611.8 billion; Q3 up 11.6% year-over-year.

• Operating income before provisions increased 21.1% year-over-year in Q3; 9M 2024 growth was 11.2%.

• Cost-to-income ratio was 28.4% for Q3 and 28.8% for 9M 2024; operating expenses up 17% year-over-year.

• Profit before taxes in Q3 grew 7.6% year-over-year to RUB 562 billion; net profit growth was lower due to a one-off tax rate increase.

Outlook and guidance

• GDP growth forecast for 2024 is 3.8%; inflation expected at 8%-8.5%.

• Corporate loan portfolio growth forecast for the industry revised up to 18%-21% for the year; retail loan growth forecast at 10%-12%.

• Net interest margin expected above 5.8%; cost-to-income ratio forecast at 30%-32%; ROE target for 2024 remains above 23%.

• Management expects continued corporate loan growth and ongoing focus on digitalization and AI.