15 Jun 2022 11:01

Sberbank could pass without recapitalization in 2022 and 2023 - first deputy CEO Vedyakhin

MOSCOW. June 15 (Interfax) - Sberbank could pass without recapitalization in 2022 and 2023, and the state credit institution has already formed most of its reserves, Alexander Vedyakhin, first deputy chairman of the bank's executive board, said in an interview with Interfax.

"Our team is doing everything to ensure that the matter of replenishing Sberbank's capital does not arise either this year or next. We are also confident that we will be able to do this. Calculate for yourself: last year, we earned over 1.2 trillion rubles in profit," Vedyakhin said.

Sberbank increased net profit to International Financial Reporting Standards (IFRS) by 1.6-fold to a record 1.246 trillion rubles in 2021 from 760.3 billion rubles in profit in 2020. According to Russian Accounting Standards (RAS), Sberbank's net profit, excluding events after the reporting date, rose 1.6-fold to 1.237 trillion rubles in 2021. Sberbank's supervisory board has recommended that shareholders not distribute net profit for 2021 or pay dividends.

"Why should a shareholder shift [funds] from one pocket to the other pocket? It makes no sense. I think that we will pass through this and next year without recapitalization. We have already formed the bulk of the reserves," Vedyakhin added.

The Russian government is Sberbank's main shareholder with a stake in the capital at 50% plus 1 share, and 52.32% of the votes.