Sber becomes Europe’s most valuable bank

Sber becomes Europe’s most valuable bank

Russia's stock market is surging and the banking sector is up by 70% year to date, making Sber the most valuable bank in the process, worth more than $113bn. / wiki

By bne IntelliNews October 10, 2021

Sber (formerly known as Sberbank) became the most valuable bank in Europe on October 7. Previously the first place was held by the British HSBC, Russian media reported.

As bne IntelliNews reported, Russia’s stock market RTS index surged in the second week of October to break above the 1,800 mark for the first time in a decade. While the headline RTS index is up some 32% year to date, most of the investors’ attention has been focused on the banking sector, which was up over 70% as of October 8. Sber and TCS Group have been attracting the most attention and driving the sector’s valuation up.

The cost of Sberbank shares has renewed its historical maximum: one share was worth more than RUB366 ($5.10). Market capitalisation exceeded RUB8.25 trillion ($113bn) against HSBC's valuation, which was $30bn less as of October 7.

The vice-president of Sberbank, Vladislav Kreinin, noted in an interview that the growth of purely banking services, taking into account the new regulation, will be limited over the next ten years and all the growth will come from the bank’s turn to fintech and online services, as cited by Russia Business Today.

About a hundred of the bank’s 13,000 branches have already been transformed within the framework of the new ecosystem, and the plans are to open about 6,000 more, TV channel “Russia 24” reported.

#Sber #Russia

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