Immobilized assets of Sberbank account for less than 25% of capital; bank does not expect significant changes due to regulation
NIZHNY NOVGOROD. June 4 (Interfax) - Sberbank does not expect significant changes to its balance sheet as a result of the recently introduced updated regulation on immobilized assets, which account for well below 25% of the group's capital, Sberbank Deputy Management Board Chairman and CFO Taras Skvortsov told Interfax on the sidelines of the Digitalization of Industrial Russia exhibition.
"There is no pressure within the current strategy horizon [2024-2026]. As of today, the share of immobilized assets is well below 25% of the group's capital," he said.
Non-core assets make up only a small portion, Skvortsov said. "They mainly arise as needed in the course of working with distressed debt or from some of our individual projects outside the banking sector," he said.
Looking beyond the current strategy horizon, Sberbank will then assess how the new regulation may affect the group.
"We'll review our strategy to determine necessary decisions and investment levels required to meet these requirements. But I don't anticipate any radical changes stemming from this new regulation," he said.
Sberbank is gradually progressing towards projects requiring less investment while generating more profit.
"Currently we maintain a substantial buffer up to 25%, so even without major investment [in immobilized assets] and with capital remaining at current levels, we can sustain operations," he said. Sberbank plans to significantly increase its capital base by 2029, he said.
"We will develop a new strategy incorporating these regulations next year. We'll analyze everything together to determine necessary adjustments, their scale, and directions for investment. Currently most investment targets technological priorities - hardware and software development. This falls precisely within the regulated scope. There's ongoing debate here too - is canceling all this the right approach? How would we continue operating? These discussions with regulators are essential," he said.
The Central Bank of Russia presented a revised risk-sensitive limit (RSL) framework to curb banks' exposure to immobilized assets in late May. The regulator modified the asset classification, softened the implementation timeline, reduced immobilization coefficients and lowered the target RSL threshold.
The RSL represents a percentage cap of a bank's capital, with immobilized asset exposures exceeding this limit considered excessive and subject to capital deductions. The Central Bank proposed setting the limit at 25% of capital, down from 30%. A 5-year transition period (2026-2030) will phase in the 25% RSL target more gradually than originally planned. The new rules take effect October 1, 2026, applying only to banks with universal licenses.
