MOSCOW, February 28. /TASS/. Net profit of Sberbank under International Financial Reporting Standards (IFRS) surged more than five-fold in 2023 to a record level for the group of more than 1.5 trillion rubles ($16.3 bln), while in Q4 Russia’s largest lender earned 359.7 bln rubles ($3.9 bln), according to Summary Annual Consolidated Financial Statements.

"Sber net profit in 4Q 2023 rose to 359.7 bln rubles. For 12M 2023, Sber earned 1,508.6 bln rubles, increasing net profit for the year by more than 5x y/y," the bank said.

Net interest income increased by 36.8% in the reporting period in annual terms to 2.56 trillion rubles ($27.8 bln). Net fee and commission income was 763.9 bln rubles ($8.3 bln), up by 9.4% or by 15.4% excluding conversion operations.

"We release Sber Group results for 2023, a record-breaking year: Sber earned a record net profit of 1,508.6 bn rubles, achieving return on equity of 25.3%. The number of active retail clients reached 108.5 mn and 3.2 mn companies. The needs of our clients remain the key focus of Sber: loan originations reached 28.7 trn rubles last year, while our total loan portfolio rose by 27% to 39.4 trn rubles. Such growth was achieved at no compromise to asset quality. Retail client funds reached 22.9 trn rubles, increasing by 4.4 trn rubles over the year," CEO Herman Gref was quoted as saying.

Net provision charge against credit quality deterioration, including revaluation of loans at fair value, reached 30.1 bln rubles ($327 mln) in 4Q 2023 and 265 bln rubles ($2.8 bln) in 12M 2023, down by 52.3% in annual terms on the back of improved credit quality. Cost of risk amounted to 0.3% in 4Q 2023 and 0.8% in 12M 2023.

Operating expenses of the group amounted to 924.4 bln rubles ($10 bln) in 2023. Operating expenses rose to 27.2% in 2023 "on the back of last year’s large scale anti-crisis cost optimization program and strong dynamics in business growth this year," the bank said.

Retail loan portfolio grew by 5.9% in 4Q 2023 and by 29.3% in FY 2023 to 16.1 trillion ($174.8 bln), according to financial results. Mortgage loan portfolio increased by 8.2% in 4Q 2023 and by 34.9% in FY 2023 to 10.2 trillion rubles ($110.8 bln). Consumer loan portfolio lost 1.4% in 4Q 2023 to 3.9 trillion rubles ($42 bln) due to tightening of regulation. Since the beginning of the year consumer loan portfolio rose by 10.9%.

Corporate loan portfolio rose by 2.8% in Q4 2023 and by 25.2% in FY 2023 to 23.3 trillion rubles ($253 bln). Retail funds amounted to 22.9 trillion rubles ($248 bln), up by 7% in Q4 2023 and by 23.8% in 12M 2023, while corporate funds rose by 2.7% and by 21.2%, respectively, to 13.8 trillion rubles ($150 bln). Net LDR ratio was at 102.4% at the end of 2023.