Agrokor Not a Problem for Sberbank’s Balance Sheet

By 2 March 2018

ZAGREB, March 2, 2018 - For the time being, Sberbank sees no potential problems with its balance that would be related to the problems in Croatia's indebted food and retail conglomerate Agrokor, the Russian bank's Chief Financial Officer Alexander Morozov has said in a conference call with analysts, according to Reuters' Moscow bureau.

Russian analysts warned earlier that Sberbank's risk cost in 2017 rose to 149 base points from 11 in 2016, mainly due to one-off events, including the Agrokor problem. Sberbank is Agrokor's biggest creditor and the Croatian conglomerate owes the Russian bank 1.1 billion euro.

Sberbank said recently that its net profit in the last quarter of 2017 stood at 172.4 billion roubles (2.5 billion euro), up 22% on the year, while revenues went up 13.4% to 501.4 billion roubles. In 2017, its net profit jumped 38% to 748.7 billion roubles.

The portion of non-performing loans fells by 0.2 percentage points to 4.2% at the end of 2017.