|
Sberbank has raised its interest rates on household deposits. The top rate on ruble deposits now stands at 12% annually and that on foreign-currency deposits at 7% a year. The rates are now comparable with those offered by VTB. We view the increase in interest rates as a predictable reaction to changes in market conditions. Despite the rate hikes, we believe that Sberbank deposits, 90% of which are in rubles, will remain under pressure from the anticipated depreciation of the national currency.
On December 1, Sberbank raised its interest rates on household deposits. The increase has ranged between 1% and 2.5% on different types of accounts. The top rate on ruble deposits now stands at 12% annually and that on foreign-currency deposits is at 7% a year.
The rates are now comparable with those offered by VTB, the chief rival of Sberbank. The top annual rate is now 12% at both banks. The bank’s increase in interest rates has come as a predictable reaction to changes in market conditions. In October, the bank lost 3% of its household deposits, while VTB reported a 1% rise in its household accounts.
We view the rise in interest rates as the bank’s reaction to changes in market conditions, enabling it to stabilize the situation with its retail deposits in the short term. For all that, we believe that Sberbank deposits, 90% of which are in rubles, will remain under pressure from the anticipated depreciation of the national currency. Our target prices for Sberbank are USD 3.31 per common share and USD 1.17 per preferred share as of year-end 2009. Vladimir Sergievskiy
Other comments of the day
|
Sberbank
Capitalization: $17 147 819 440,00
Common shares:
Price: $0,78
Target price: $3,31
Recommendation: Buy
Delta week: -1,4%
Delta month: 6,1%
Delta year: -81,3%
Preferred shares:
Price: $0,31
Target price: $1,17
Recommendation: Buy
Delta week: -1,0%
Delta month: -3,2%
Delta year: -89,1%
|
0.244
0.616
