Sberbank predicts 15-20 per cent growth for retail deposits

Mar 9th, 2010 | By | Category: Rouble News

Russia's top lending institution, more about Sberbank, recipe is forecasting growth of between 15 and 20 per cent in retail deposits for 2010 and predicts that deposit rates will continue to fall.

Sberbank is a huge state-controlled financial institution, dating back to the Soviet era, and is reputed to be the safest bank in the country. Following the global financial crisis and resulting credit crunch, wholesale market funding has effectively been closed off to Russian banks, making them seek funding from individuals. With its reputation for safety, Sberbank succeeded in attracting over 600 million roubles (US$20.09 billion) in deposits from this source last year.

Individuals make up approximately 70 per cent of Sberbank's funding base, to whom it pays an average 6 per cent annual interest rate and the bank is home to 50 per cent of retail deposits in the country.

Natalya Konovalova, responsible for Sberbank's deposit management, told a news briefing that the institution has factored in quite "aggressive growth plans" of 15 to 20 per cent for 2010, in line with the market.

Funding costs are vital for the bank's financial performance and Konovalova added that "the average cost of the deposits portfolio for the bank stays at roughly 6 percent in rouble terms. Now, we suggest the market trend is toward a further decline in the deposit rates."

Be Sociable, Share!

Leave Comment