Finance
Russia's Sberbank reports record 2024 profit of $18.1 billion
Published by Global Banking & Finance Review®
Posted on February 27, 2025
3 min readLast updated: January 25, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 27, 2025
3 min readLast updated: January 25, 2026
Sberbank reports a record $18.1 billion profit for 2024, driven by corporate lending and high interest rates, despite regulatory pressures.
By Elena Fabrichnaya and Alexander Marrow
MOSCOW (Reuters) - Russia's largest lender Sberbank reported on Thursday a record annual profit of 1.58 trillion roubles ($18.1 billion) after corporate and retail lending coped well with steadily increasing interest rates to 21%.
The central bank's high key rate has boosted banks' net interest margins, but is so high now that lending growth is starting to slow as companies cut back on investment and individuals prefer to hold funds on deposit.
Profit for 2024 rose 4.8% from the previous year, the bank said.
"The corporate loan portfolio grew by 19% year on year to over 27.7 billion roubles," CEO German Gref said in a statement. "The retail portfolio grew more moderately under pressure from high rates and stricter regulation and grew 12.7% for the year, amounting to 18.1 trillion roubles."
Net interest income for 2024 reached 3 trillion roubles, up 17% year on year. Return on equity (ROE) dropped by 1.3 percentage points to 24% for 2024 as a whole. In 2025, the bank sees ROE at above 22%.
Sberbank dominates Russia's banking sector with almost 110 million retail clients and more than 3 million corporate clients.
The sector's profits hit a record 4 trillion roubles last year, though the central bank has warned that profits will slip to 3-3.5 trillion roubles in 2025 as credit risks grow and margins are squeezed.
No. 2 lender VTB Bank this week reported record annual profit as well, but said it would not recommend a dividend as high rates and new regulation dampen this year's earnings outlook.
Gref said that global volatility meant he could not guarantee that state-owned Sberbank would pay dividends for the next three years, but said the bank would distribute 50% of net profit to shareholders as planned for 2024, offering a huge boost to Russia's budget revenue.
Sberbank casts itself as a technology company and has made hefty investments in areas like artificial intelligence (AI), as Russia seeks technological sovereignty in the face of sweeping Western sanctions over its actions in Ukraine.
Gref said 2024 marked an important milestone for Sberbank as it integrated AI into more of the bank's systems and said the bank was developing in technology areas faster than it could have imagined.
($1 = 87.5000 roubles)
(Reporting by Elena Fabrichnaya in Moscow and Alexander Marrow in London; Editing by David Goodman and Susan Fenton)
Sberbank reported a record annual profit of 1.58 trillion roubles, equivalent to $18.1 billion for 2024.
The corporate loan portfolio grew by 19% year on year, exceeding 27.7 billion roubles, according to CEO German Gref.
Sberbank faces challenges such as high central bank rates affecting lending growth and potential credit risks that may reduce profits in the coming years.
Sberbank positions itself as a technology company, investing heavily in areas like artificial intelligence to enhance its services and achieve technological sovereignty.
CEO German Gref indicated that while Sberbank aims to distribute 50% of its net profit to shareholders, global volatility makes it uncertain whether dividends can be guaranteed for the next three years.
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