Sberbank Targets Record Profits but Flags Russia’s Declining Consumption Trends
Sberbank’s Financial Outlook and Economic Concerns
Record Profits Amid Sanctions
VLADIVOSTOK, Russia, Sept 3 (Reuters) - Sberbank, Russia's biggest bank, expects net profit this year to be higher than in 2025 and to hit another record in 2027, its Chief Executive German Gref said, but he warned signs of declining consumption in the country are worrying.
Sberbank earned a record 1.7 trillion roubles ($19.50 billion) in net profit last year, despite western sanctions on the bank which Gref has been leading for nearly two decades.
Declining Consumption Trends
"Consumption has been declining since June... This is a cause for concern," Gref told a forum in the Russian Pacific port city of Vladivostok. "We are beginning to see trends."
GDP Growth and Economic Forecasts
Russia's gross domestic product grew by 0.6% year-on-year in July after a revised 1.7% growth in June, according to the economy ministry, which in May sharply downgraded its mid-term forecasts.
Inflation and Contributing Factors
Gref said that inflation in Russia was accelerating, which he mostly attributed to the loss of some oil refining capacity amid Ukraine's attacks following Russia's invasion in 2022 that Moscow calls a 'special military operation'.
($1 = 87.2000 roubles)
(Reporting by Olesya Astakhova and Vladimir Soldatkin in Vladivostok; Writing by Jekaterīna Golubkova in Tokyo; Editing by Jacqueline Wong)
