Russia’s biggest bank, Sberbank, has suffered a significant drop in profits amidst international sanctions. According to a recent report by CNN, the bank’s profits fell by 78% due to impacts of the sanctions. However, there is some hope among banking officials that the situation may not remain so bleak.
In fact, Sberbank expects to see a rebound in profits over the next year. As reported by Reuters.com, the bank’s CEO, Herman Gref, predicts that profits will recover after 2022, which has been a tough year for the bank due to sanctions. Gref is hopeful that the financial institution will recover its former status and financial stability.
Despite the struggles, Sberbank has posted some positive news recently. The bank reported a net profit of $3.57 billion in 2022, according to ZAWYA. This is welcome news for Sberbank officials and potentially signals a turn in fortunes for the financial institution.
Russian President Vladimir Putin has recently praised the country’s financial sector for overcoming the hurdles caused by international sanctions. As reported by Anadolu Agency | English, Putin stated that the sector has hit major milestones in the face of setbacks caused by sanctions.
Sberbank CEO, Herman Gref, may be hopeful about the bank’s future, but he is also realistic. As reported by Reuters.com, Gref does not expect the central bank to cut rates this year. It remains to be seen if Sberbank and other financial institutions in Russia can continue to weather the storm of international sanctions and economic pressures.