WOOD Flash – Russian banks: rate hike damage assessment
The Bank of Russia’s hawkish policy has taken its toll on Russian bonds. In this flash note, we look at the capital impact of the increasing interest rates (or declining bond prices) on Sberbank in particular. The impact is not negligible, as Sber holds significant amounts of RUB bonds. That said, at this point, we believe that Sber is likely to close 1Q22E above management’s 12.5% CET1 threshold. In the absence of the geopolitical risk translating into an imminent macro risk, the bank will also accumulate more capital before the dividend distribution in June and we would still assume a 50% payout (a c.10% yield on the commons). We understand that TCS is keeping the majority of its bonds as held-to-maturity. If this is the case, it is plausible not to expect a major impact from volatility in the bond market.
TCS Group Holding is a retail banking services group based in the Russian Federation. Co. is principally engaged in providing retail banking services in the Russian Federation through its subsidiaries, primarily Tinkoff Credit Systems. Co., through this subsidiary, fully licensed by the Central Bank of Russia and a member of the Deposit Insurance System, specializes in credit cards. Co. provides online retail financial services through a branchless operating platform. Co. also offers remote access to its financial products and services through its online banking as well as through mobile banking and high-volume call centers.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.