Sberbank’s Return on Equity Soars to 28% in 2011

© RIA Novosti . Ilona GolovinaRussia’s largest state-owned bank Sberbank saw its return on equity soar to 27-28 percent last year
Russia’s largest state-owned bank Sberbank saw its return on equity soar to 27-28 percent last year - Sputnik International
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Russia’s largest state-owned bank Sberbank saw its return on equity soar to 27-28 percent last year, Sberbank CEO German Gref said on Thursday.

Russia’s largest state-owned bank Sberbank saw its return on equity soar to 27-28 percent last year, Sberbank CEO German Gref said on Thursday.

 

“You can find just one or two such places in the world where you can get such returns on equity,” Gref said at an investment forum in Moscow.

 

Sberbank showed a 20.6 percent return on its equity in 2010.

 

Sberbank’s profits to IFRS doubled in 2011 to over $10.5 billion, Gref said.

 

Russian Central Bank First Deputy Chairman Alexei Ulyukayev said in late January the government was ready to sell a 7.6 percent stake in Sberbank as soon as its shares rose 15 percent above current levels and investors showed strong demand for the stock.

 

“There are several guidelines. The first one involves current share prices. They currently stand at 87 rubles but we are interested in the horizon close to 100 rubles ($3.20),” Ulyukayev said on the sidelines of the Davos world economic forum.

 

The Russian government originally planned to sell a 7.6 percent stake in Sberbank last September but had to delay its plans due to the turmoil on domestic and global markets.

 

“After all, Sberbank is a special share, a proxy for Russia to serve as a benchmark for all investors during a large number of Russian share placements.”

 

In December Gref said the privatization of the 7.6 percent stake in Sberbank was most likely after the March presidential elections in Russia, adding that increased political risk in the country would affect the privatization schedule.

 

Russia’s Central Bank holds a majority stake in Sberbank.

 

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