Sberbank's cost of risk close to peak, bank does not expect further deterioration

MOSCOW. July 29 (Interfax) - The situation regarding cost of risk at Sberbank is close to the peak level, and the bank does not expect it to worsen, Taras Skvortsov, Sberbank deputy management board chairman and CFO, said during a conference call.

"We currently see that the situation is close to the peak regarding cost of risk, and we do not expect further growth in cost of risk," Skvortsov said.

"Going forward, we are rather expecting capitalization, as well as the beginning of a period of decreasing cost of risk and improving portfolio quality at a certain horizon, especially following the certain loosening in monetary policy that the Central Bank is currently pursuing," he said.

As reported, Sberbank's overall cost of risk rose to 1.71% in the second quarter from 1.24% the previous quarter.

The lending institution earlier on Tuesday retained the forecast for cost of risk at around 1.5% in 2025.