8 Sep 2010 13:27

Sberbank won

MOSCOW. Sept 8 (Interfax) - Sberbank Russia will not launch a depositary receipts program in 2010, management board member Alexander Morozov told journalists on the sidelines of the conference organized by UBS.

"Launch of the depositary receipts program is not the top priority this year. I don't think we will make an issue this year," he said.

The timing of the issue will depend mainly on market volatility, bank capital and liquidity, Morozov said.

It is still to early to draw down loan loss reserves, he added.

Launch of the depositary receipts program this year is not a "business necessity," he said.

"Any foray onto new markets means a heightening of volatility. It's already high enough around here. We would like to see it decline a little bit," Morozov said.

"Next year is next year," Morozov said when asked when the launch would occur. "It will depend on many factors, on the situation with capital, market volatility."

The bank's capital adequacy is currently at a very high level. From the standpoint of share liquidity "we're not very interested in that either," he said, noting that shares in Sberbank are currently more liquid than Gazprom.

Sberbank is maintaining its profit forecast at 100 billion-120 billion rubles in 2010. "I am confident we'll show 100-120 [billion rubles]," he said. "One hundred fifty - that's a bit much, but anything's possible, if the markets skyrocket in the third quarter," he said.

Sberbank expects "a completely different result next year," he said adding that the bank had no need to play with the reserve figures. "We prefer to simply earn well. I believe that shareholders and investors will be pleased," he said.