Sberbank will continue to allocate 50% of profits to dividends – Kommersant
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Head of Sberbank (MOEX: SBER) German Gref said that the bank will continue to allocate 50% of profits under IFRS to pay dividends with capital adequacy above 13.5%. In the bank’s new strategy until 2026, the dividend policy will remain unchanged.
“Over the next three years, we will ensure a high return on our capital, which should be above 22%. We must ensure our capital adequacy according to the N20.0 standard is above 13.3%. And we will have to ensure a high level of dividend payments at the level of 50% of our net profit,” said Mr. Gref during his speech at Investor Day.
In 2020, Sberbank adopted a dividend policy for the next three years. The level of dividend payments is set at 50% of the bank’s net profit according to IFRS. The key conditions for paying dividends are maintaining the adequacy of Sberbank’s core capital under IFRS at a level of at least 12.5%.
In May 2023, Vice President and Director of the Finance Department of Sberbank Taras Skvortsov announced that in December the bank would present a development strategy until 2026, part of which would be a new dividend policy. After the announcement of maintaining the dividend payment policy, Sberbank shares on the Moscow Exchange (MOEX: MOEX) fell by almost 2.5%. As of 11:02, shares were trading at RUB 272.71. (-2.45%).
In the third quarter of 2023 Sberbank earned record net profit under IFRS in the amount of RUB 411.4 billion. The previous maximum was achieved in the second quarter of 2023 – RUB 380.3 billion. For January-September, the credit institution’s net profit amounted to 1.15 trillion rubles. Sberbank predicts that net profit for the entire 2023 may exceed the record figures of 2021, when the bank earned 1.25 trillion rubles. Dividends for 2023 are planned at the level of 750 billion rubles.
Read more in the Kommersant article. “The Three Trillion Bar”.
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