Sberbank 9 Month Profits Rise 6%
- Oct. 08 2013 00:00
- Last edited 20:18
Sberbank reported a 6 percent rise in net profit for the first nine months of 2013, helped by higher interest income, but its provisions to cover potential bad loans doubled from a year ago.
Russian banks have piled into high-margin consumer lending in recent years and have had to set aside more money to cover risks on high-interest loans, potentially weakening their capital position, while a slowing economy has raised fears that customers will struggle to repay their debts.
Sberbank said its net profit amounted to 286.2 billion rubles ($8.9 billion) in the nine months to Sept. 30 as net interest income rose 15 percent to 518.3 billion rubles.
Total provisions jumped to 83.5 billion from 39.5 billion a year ago, said Sberbank, which recently trimmed its full-year profit guidance.
The results were calculated according to Russian accounting standards.