Sberbank's profit fell fourfold in 2022

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Sberbank's net profit under RAS exceeded 300 billion rubles in 2022, the state bank announced today. This is 75.7% lower than in 2021 (1.24 trillion rubles).

• In December, Sberbank managed to increase its profit by 40.1% year-on-year to RUB 125.5 billion. Net interest income for the year increased by 5.2%, net fee and commission income - by 6.2%. At the same time, operating expenses decreased by 5%.
• Since the beginning of the year, the bank's retail loan portfolio has grown by 12.9% to 12 trillion rubles. Mortgage became the main driver, its growth accelerated in anticipation of a change in state support programs from 2023.
• In December, Sberbank issued a record volume of mortgage loans - 382 billion rubles. The total amount of loans issued to private clients in December was also a record - 625 billion rubles. The corporate loan portfolio has grown by 12.4% since the beginning of the year and amounted to 18.8 trillion rubles.

They talk about it

Analysts at Alfa-Bank indicate that the financial results of the year confirm the trend for the recovery of Sberbank's business, and predict that in 2023 its net profit could reach 1.2 trillion rubles. They believe that the bank can spend all of its net profit for 2022 and part of retained earnings for 2021 on dividends, and payments to shareholders can amount to 25 rubles per share.

If Sberbank manages to maintain profits at the December level, its shares will see a gradual recovery, says Kirill Komarov, an analyst at Tinkoff Investments. At this level of monthly earnings, it trades at a P/E of 2.3, which is half the historical average for the company, he explained. The target price for ordinary shares of Sberbank at Tinkoff is 170 rubles.

Sinara believes that strong financial results and an untroubled equity position will contribute to a positive revaluation of the shares. According to the investment bank, they are now trading at a 2023E P/BV of 0.5.

Since the beginning of the year, Sberbank shares have risen by more than 7% on expectations of the release of financial statements. Now active players may prefer to take profits, "following the rule - buy on expectations, and sell after the fact," says Mikhail Zeltser, an expert at BCS World of Investments. In his opinion, a moderate correction could create an even more interesting entry point. The target price of BCS for Sberbank shares on the horizon of 2023 is 240 rubles.