Sberbank May Increase Reserves as Wildberries Drone Attacks Impact Borrowers
Impact of Drone Attacks on Sberbank and Online Retailers
Financial Consequences for Borrowers
MOSCOW, July 29 (Reuters) - Russia's largest lender, Sberbank, said on Wednesday it was considering increasing loan-loss provisions after Ukrainian drone attacks on e-commerce giant Wildberries' warehouses hit the finances of online retailers and their suppliers.
Sberbank said the credit quality of online retailers and vendors had deteriorated following the attacks, with about 300 companies seeking to restructure loans.
Sberbank’s Response and Provisions
"Their financial condition and potential future cash flow have, of course, decreased. Are we considering increasing provisions? Yes, we are considering it," Chief Financial Officer Taras Skvortsov said on a conference call with analysts.
He said no decision had been taken. Sberbank lends to both Wildberries and rival Ozon, whose facilities have not been targeted.
Loan-Restructuring Programmes
The bank has developed a loan-restructuring programme for Wildberries vendors affected by the attacks. Skvortsov said Sberbank believed Wildberries and its clients had sufficient financial resilience to cope with the disruption.
Profitability and Economic Outlook
Sberbank, which reported a 21% increase in second-quarter net profit on Wednesday, said it was too early to assess the impact of any loan losses on full-year results. The bank expects to post a record profit this year.
It also cut its forecast for Russian economic growth in 2026 to between zero and 0.5%, from 0.5% to 1% previously, saying it was closely monitoring developments in several sectors, including small businesses.
Details of the Drone Attacks
Drone attacks have damaged at least seven Wildberries warehouses, destroying around 10% of the company's storage capacity, disrupting operations and causing losses for tens of thousands of small businesses that sell goods and services through the platform.
Motivations Behind the Attacks
Ukraine initially said it targeted Wildberries because of its role in supplying the Russian military. An executive at Ukraine's leading arms producer said this week the retailer was also targeted because of its prominent role in the economy as a major borrower.
Reporting Credits
(Reporting by Elena Fabrichnaya, Writing by Felix Light and Gleb Bryanski. Editing by Mark Trevelyan and Mark Potter)
