Sberbank profit in 2020 will fall by 12-13% to around $9.45 bln – Gref

TASS Russian News Agency | Dec 4, 2020 at 5:22 PM

MOSCOW, December 4. /TASS/. Sberbank's profit in 2020 will decline by 12-13% and amount to approximately 700 bln rubles ($9.45 bln). The head of Sberbank German Gref said this on Friday at a meeting with Russian President Vladimir Putin.

"We think that our profits will decrease by about 12-13%, maybe compared to last year, and this year we will earn, maybe, 700 bln rubles in net profit," he said.

Gref added that in 2020, Sberbank's additional costs associated with the coronavirus pandemic amounted to 17 bln rubles ($229.52 mln). "We have greatly increased charitable assistance ..., we have helped the police, we have helped hospitals, orphanages and, of course, purchased personal protective equipment for our employees, because we have been working all this time," he said.

Gref added that Sberbank expects a decline in the Russian economy by the end of 2020 of no more than 3.8-4.5%. "In June, July, August there was a very rapid recovery. As a result, our estimate of the decline in GDP is about 3.8-4.5%, not more," Gref said. "This is much better than we originally expected," he added.

He also noted that he is optimistic about next year and did not rule out the recovery of the majority of the industries affected by the pandemic. "As we understand it, vaccination will begin in December and will develop gradually. Nevertheless, we see that, most likely, next year 2-3.5% will have economic growth and recovery of most industries," Gref added.

The President, in turn, drew attention to the fact that Sberbank's assessment is roughly in line with the Bank of Russia forecast, which expects GDP to decline by 4-5% in 2020.

More sources
  • Sberbank forecasts decline in Russia’s GDP of 3.8-4.5% in 2020 (TASS Russian News Agency: 2020-12-04 15:27:13+00:00)