Russia’s Sberbank distributes record profits

Despite the conflict and sanctions, Russian banks are not suffering excessively. Sberbank will allocate 752 billion rubles, or about 7.94 billion euros, for dividend payments. based on 2023 results. The payments will be 33.3 rubles. per common or preferred share. This is an all-time high for Sberbank, which thus proves to be a real cash cow for its major shareholders.

The dividend yield will be 10.6 percent for both types of shares at 313 rubles per share today.The shareholders’ meeting also approved the date on which those entitled to receive dividends will be determined: July 11, 2024.

Sberbank’s press service told Kommersant that a new composition of the 14-person Supervisory Board was elected at the meeting. Half of them are independent directors. In addition, shareholders chose an audit body for 2024 and the first quarter of 2025. It became an LLC, “CATR Audit Services.” Western companies, the big four, cannot operate directly in Russia because of sanctions.

“For the second consecutive year, the bank will pay record dividends in its history. Sber’s results are an important indicator of the transformation of the Russian economy,” Finance Minister Anton Siluanov said, citing the bank’s press service.

At the end of 2022, Sberbank paid dividends in the amount of 565 billion rubles, or 25 rubles. per share. In the period from January to May 2024, Sberbank increased its net profit to 628.4 billion rubles. (+6.7%). In May, the bank received 133.4 billion rubles in net profit, which is 12.9 percent higher than the profit in May last year, so there is a basis for even better results next year.

Receiving these lavish profits will be the Russian National Pension Fund, which holds 50 percent, the Russian state, and private shareholders, who make up 12 percent of the company’s total capital and whose shares are listed on the Moscow Stock Exchange.