Sberbank of Russia (SBER) Q4 2024 earnings summary

Executive summary

• Net profit for 2024 reached RUB 1,580.3 bn, up 74.8% year-over-year, with EPS at RUB 72 and ROE at 24%.

• Achieved all financial and operational goals despite high inflation, a 20-year high key rate, and major external shifts.

• Record dividend payout of over RUB 750 bn for 2023, with half allocated to the federal budget.

• Customer base expanded to 109.9 million retail clients, with strong digital engagement and app usage.

• Maintained position as Russia's top bank and No. 2 global acquirer, with the most valuable brand in Russia.

Financial highlights

• Net interest income rose 17% to RUB 3,000 bn, with net interest margin at 5.9%.

• Retail lending portfolio grew 12.7% to RUB 18.1 trn; mortgage portfolio up 9.6% to RUB 11.2 trn.

• Corporate loan portfolio rose 19% to RUB 27.7 trn; market share at 32.4%.

• Funds due to retail individuals increased 21.5% to RUB 27.8 trn; client funds totaled RUB 44.6 trn.

• Cost-to-income ratio at 30.3%, operating expenses up 15% amid inflation and wage growth.

Outlook and guidance

• 2025 guidance: net interest margin above 5.6%, net fees and commission growth of 7-10%, CIR at 30-32%, cost of risk at ~1.5%, and ROE above 22%.

• GDP growth for 2025 forecast at 1.5-2%, with inflation at 7.5-8.5%.

• Strategic focus on AI-driven transformation and business model change.

• Dividend payout for 2024 confirmed; future payouts depend on market volatility and capital adequacy.