Sberbank of Russia (SBER) Q2 2024 earnings summary

Executive summary

• Net profit for Q2 2024 rose 10.1% year-over-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 over 109 million, with Sber ID users at 85.5 million and SberSpasibo loyalty program participants at 85.6 million as of June 2024.

• Sberbank continues to invest in technology, AI, and digital platforms, launching products like GigaChat and Kandinsky Video 1.1 to enhance operational efficiency and customer experience.

• Business activity remains high, with strong growth in corporate turnover, personal income, and consumer spending across categories.

Financial highlights

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

• Net fee and commission income in Q2 2024 grew 12.1% to RUB 210 billion; H1 up 9.9% to RUB 394 billion.

• Operating expenses rose 16.8% in Q2 2024, mainly due to investments in staff and technology; cost-to-income ratio at 29.5% for Q2 and 29% for H1.

• Retail client funds exceeded RUB 25.6 trillion, up 9.2% in Q2 2024; corporate client funds over RUB 15.2 trillion, up 0.7%.

• Record dividend of RUB 752 billion paid in June, reducing equity to RUB 6.1 trillion.

Outlook and guidance

• GDP growth forecast for 2024 raised to 3.8%, with inflation expected at 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 maintained above 5.7% for the year.

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