Sberbank plans to maintain return on equity at no less than 21% annually

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According to the statement, this will allow to distribute 50% of net profit to the shareholders, while investing the remaining half into the long-term sustainability of Sber’s business model

MOSCOW, November 12. /TASS/. Sber intends to maintain its return on equity (ROE) at the level of at least 21% annually under its new Strategy 2029, which will allow for the distribution of 50% of net profit as dividends, Chief Financial Officer of Russia’s top lender Taras Skvortsov said.

"The combination of external conditions, regulatory challenges, and the group’s strategic business development goals requires us to achieve an ambitious return on equity target of no less than 21% annually over the horizon of our Strategy 2029. This will enable us to distribute 50% of net profit to our shareholders, while investing the remaining half into the long-term sustainability of Sber’s business model," he said at Investor Day.

Financial results from other types of activities, including non-financial business, are expected to move into positive territory and make a significant positive contribution to Sber’s overall performance over a three-year period, Skvortsov noted.

A distinct challenge for the entire banking sector will be the Central Bank’s announced tightening of capital adequacy requirements, including the restoration of the capital conservation buffer, plans to increase the surcharge for systemic importance, and higher capital requirements for investments in certain types of assets, he added. "We take into account the Bank of Russia’s approved requirements for surcharges and the schedule for their implementation. Amid these conditions, we keep our target capital adequacy ratio under the N20.0 standard at 13.3%," the chief financial officer said.

Skvortsov also presented the macroeconomic forecast from Sberbank analysts, which served as the foundation for the financial model of the Strategy. "Over the next three years, we anticipate moderate economic growth, with an average annual GDP growth rate of 1.5%. We also expect inflation to slow down in 2027 and stabilize near the regulator’s target levels in 2028-2029 (around 4%).

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