Bloomberg News

Sberbank May Say Third-Quarter Profit Climbed on More Lending

January 24, 2008

OAO Sberbank (SBER), Russia's biggest bank, may say profit rose in the third quarter as it expanded its loan portfolio.

Net income probably increased 27 percent to 27 billion rubles ($1.1 billion) from 21.2 billion rubles the previous quarter, according to the median estimate of seven analysts surveyed by Bloomberg News.

Moscow-based Sberbank, the former Soviet banking monopoly that still controls about half of Russian retail deposits, is expanding its corporate loan portfolio.

``Sberbank is in a very advantageous position as one of the few banks that still finances Russian corporations that can no longer borrow or issue bonds internationally,'' said Dmitry Vinogradov, head of equity research for Citigroup Inc. in Moscow.

Sberbank is planning to release its third-quarter results under international accounting standards on its Web site after the Moscow stock exchange closes tomorrow. Second-quarter profit fell 21 percent to 21.2 billion rubles as competition intensified.

Sberbank's assets will probably climb 3 percent to 4.42 trillion, according to the analyst survey.

The survey included analysts at Alfa Bank, Citigroup, Deutsche Bank AG, JPMorgan Chase & Co., Troika Dialog, UBS AG and UralSib.

To contact the reporter on this story: Denis Maternovsky in Moscow at dmaternovsky@bloomberg.net.

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net.


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