WOOD Flash – Sberbank: RAS results – 2019 closes as expected
This morning (15 January), Sberbank reported RUB 56bn in net income in December and closed 2019 with RUB 870bn in net income, indicating an 11% yoy increase. The NIM inched up by 10bps qoq in the 4Q19 RAS numbers, in line with expectations. The COR continued to be exceptionally tame in December and 4Q19, mainly on the back of the RUB appreciation against hard currencies. We believe there were no surprises in fees and opex. Our upside has diminished to 11% on the commons, but we still do not feel uncomfortable with our valuation. The stock is up 17% in USD terms since November, but it is still a good way to play a risk-on, in our view. The main risk in the investment case currently is the potential change of controlling shareholder. We rate the commons a BUY. Our 2020E multiples are 6.0x P/E and 1.2x P/TBV.Sberbank Russia is an open joint stock commercial bank. Co.'s principal business activity is corporate and retail banking. This includes, but is not limited to, deposit taking and commercial lending in freely convertible currencies, local currencies of countries where the subsidiary banks operate and in Russian Roubles, support of clients' export/import transactions, foreign exchange, securities trading, and trading in derivative financial instruments. Co.'s operations are conducted in both Russian and international markets. As of Dec 31 2014, Co. had total assets of RUB25.20 trillion.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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