Sber­bank 2Q profit slides 44pc

The Pak Banker - - COMPANIES/BOSS -

Sber­bank PJSC's sec­ondquar­ter profit slid 44 per­cent, less than an­a­lysts es­ti­mated, as higher in­come from trad­ing cur­ren­cies helped off­set ris­ing loan-loss pro­vi­sions.

Net at­trib­ut­able in­come dropped to 54.2 bil­lion rubles ($786 mil­lion) from 97.6 bil­lion rubles a year ear­lier, Rus­sia's largest bank said in a state­ment on its web­site Wed­nes­day. Eight an­a­lysts sur­veyed by Bloomberg es­ti­mated 41.8 bil­lion rubles on av­er­age. In­come from trad­ing cur­ren­cies rose to 17.4 bil­lion rubles from 6.7 bil­lion rubles a year ago.

"The re­sults are bet­ter than ex­pected, thanks to trad­ing" and other non-core, non-in­ter­est in­come, said Natalia Berez­ina, a bank­ing an­a­lyst at UralSib Fi­nan­cial Corp."

The pro­vi­sion­ing was lower than ex­pected, but not sub­stan­tially."

Rus­sia is in its first re­ces­sion since 2009, squeez­ing lenders' prof­its. High in­ter­est rates and the sharp de­cline of crude, the na­tion's big­gest ex­port rev­enue earner, have ex­ac­er­bated the im­pact of sanc­tions on Sber­bank over the Ukraine con­flict.

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