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Peter Davis

An writer at FOMOdrive

  • Nov 24, 2023
  • 2 min read

Sberbank shares reached their January 2022 highs

Sberbank shares climbed to their most elevated levels since January 2022.

At the start of the year, the value of securities had doubled.

The presentation of a new development strategy and dividend policy may be the immediate cause of stock growth.

On Thursday, Sberbank shares rose by 1.2% to RUB 286.16, setting a new intraday high since January 13, 2022 at 287.77 rubles. Since the start of the year, the country's largest bank's shares have seen an increase of 104%.

RBC reports that the potential to increase the value of shares may be spurred by the upcoming announcement of the development strategy for 2024–2026 and the new dividend policy on December 6, as well as the financial statements for 11 months of 2023.

Sberbank reported a net profit of 1.26 trillion rubles and a return on equity of 25.3% for the first 10 months of the year. This translates to a potential dividend of 27.9 rubles for the 10-month period.

German Gref, the head of the bank, predicted in March that Sberbank's profit in 2023 could potentially reach pre-crisis levels, however, this outcome will be contingent upon the state of the economy.

BCS estimates that Sberbank can pay record dividends of around 33 rubles per share with a dividend payout ratio of 50% at the end of the year. The target price of Sberbank's shares on the horizon of the year is 350 rubles per share.

Minister of Finance Siluanov previously stated that some of the banks' surplus profits could be directed to the Russian budget in 2024 through increased dividends, thus suggesting that the banks may pay out more than 50% of their profits.

Promsvyazbank estimates that Sberbank's profit in 2023 could be between 1.4 and 1.5 trillion rubles, which would enable them to pay out 33 rubles per share to shareholders in the form of dividends. PSB has set a target price of RUB 320 for Sberbank's ordinary shares over a 12-month period.

Finam has a positive outlook on Sber shares in the medium-term and suggests buying them with target prices of 311.5 rubles for ordinary shares and 305.3 rubles for preferred shares, despite the potential market pressure from the appreciation of the ruble and the increase of the Central Bank's key rate.

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