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Today, at the Finopolis forum, German Gref, CEO of Sberbank, Russia’s leading financial institution, projected a significant slowdown in the mortgage market. Despite this forecast, the anticipated increase in Sberbank’s mortgage lending for 2023 is set to reach an impressive 80%, amounting to 4.6 trillion rubles by year’s end.
In October alone, the growth in lending had already reached approximately 3.7 trillion rubles. This surge represents not only an 80% jump from figures recorded last year but also a remarkable leap of 60% from the lending numbers documented in 2021.
At a Moscow forum earlier today, Gref reported a successful year for the Russian mortgage market in 2023, despite impending economic challenges. The central bank has increased its key interest rate by 200 basis points due to inflation and a weak rouble, culminating in a total hike of 750 basis points since July.
Other major Russian banks are also predicting significant figures for mortgage loans this year. VTB and Rosbank forecast total mortgage loans of 7.2 and 7.3 trillion rubles respectively. However, they predict a decrease in these numbers by approximately 30% in 2024.
Despite the high demand for mortgages due to preferential offers, Deputy Governor Olga Polyakova advocates for a single preferential program for those truly needing housing assistance. This comes as Sberbank anticipates record profits and mortgage issuance for 2023, even in light of an expected decrease in corporate lending and retail slowdown.
InvestingPro Insights
In light of Sberbank’s robust performance and the projected growth in its mortgage lending, let’s dive into some relevant data and tips from InvestingPro.
InvestingPro’s real-time data indicates that Sberbank boasts a substantial adjusted market cap of $67,438.84M USD. In the last twelve months as of Q4 2022, the company’s revenue stood at $23,088.66M USD, and the operating income margin was at a solid 51.64%. The P/E ratio, adjusted for the same period, was notably low at 4.42, suggesting that the stock could be undervalued.
From the InvestingPro Tips, we can glean that Sberbank is expected to see growth in net income this year, with analysts anticipating sales growth as well. The company’s stock is currently trading near its 52-week high, indicative of its strong market performance. However, it’s worth noting that the stock is in overbought territory according to its RSI, which might suggest potential future price corrections.
In conclusion, Sberbank’s strong financial metrics and expected growth, as highlighted by InvestingPro, underscore its position as a prominent player in the banking industry. For more insights and a host of other InvestingPro Tips, consider exploring InvestingPro’s offerings.
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