OAO Sberbank (SBER), Russia’s largest lender, dropped the most in more than a week after operating expenses climbed 22 percent in the first half.
Sberbank fell 1.8 percent, the biggest intraday decline since June 28, to 89.26 rubles by 3:07 p.m. in Moscow.
Operating costs increased to 165.6 billion rubles ($5.1 billion) in the first six months of the year, from 136 billion rubles a year earlier, as administrative expenses and salary payments increased, the company said on its website today. Net income under Russian accounting standards advanced 6.8 percent to 183 billion rubles.
Accelerating operating expenses are “putting pressure on the bottom line,” VTB Capital analysts led by Mikhail Shlemov said in an e-mailed research note.
“While Sberbank remains undisputedly the best exposure in the Russian banking universe, the stock is vulnerable to the ruble weakening and the economy slowing in the second quarter,” the analysts said.
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