Author Topic: SBRCY - Sberbank  (Read 35158 times)

John Hjorth

  • Hero Member
  • *****
  • Posts: 3095
Re: SBRCY - Sberbank
« Reply #80 on: September 13, 2018, 02:58:59 AM »
... Verily low efficiency ratio (~30%) and strong profit metrics. Its a great bank, except they its located in Russia. The appropriate discount for the latter is something I have difficulty to wrap my head around. I feel that currency risk and volatility of exchange rate over long periods of time relative to USD is a proxy for country risk for EM and on they quanitiative meaure, Russia scores pretty bad. ...

Very well phrased, Spekulatius,

This is the key question, and certainly hard to quantify.
In the race of excellence there is no finish line.
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai


John Hjorth

  • Hero Member
  • *****
  • Posts: 3095
Re: SBRCY - Sberbank
« Reply #81 on: May 02, 2019, 12:18:14 PM »
Sberbank 2018 Financial Report was released a few days ago.

- - - o 0 o - - -

2018 ROE at 23.1 percent [p. 21].
Cost/income ratio at 34.2 percent [p. 21].

- - - o 0 o - - -

To me, it still looks like a major US bank, investing heavily in the future with digitalization etc. - naturally it's primary geographical footprint is Russia.

- - - o 0 o - - -

I think it's important to understand that this bank is not a puppy of Vladimir Putin, but a vehicle controlled by Elvira Nabiullina. If interested, please try to google her by her name and read about her.

Edit:

I know this bank is considered controversial here on CoBF, so I have no intention to engage in deep discussions about it being Russian [a bit like stated in this topic earlier by TwoCitiesCapital]. It's for sure an outlier for me personally, and I'm not going to go crazy here.
« Last Edit: May 02, 2019, 01:04:14 PM by John Hjorth »
In the race of excellence there is no finish line.
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

TwoCitiesCapital

  • Hero Member
  • *****
  • Posts: 2598
Re: SBRCY - Sberbank
« Reply #82 on: August 03, 2019, 07:40:28 AM »
U.S. announced another round of sanctions on Russia. Sberbank has tanked over the last two days - my guess in anticipation because earnings were strong.

It's back down to a 5x P/E and just a hair above book despite a 25% ROE.

I'm tempted to buy more, but it is already one of my largest positions and my experience with the name in the past encourages me to wait. These dips with Sberbank are rarely quick  and it doesn't look like there's much support until we hit $10 now that we're below $14.  It was there as recently as September.

For those who don't already have a massive position, $13.75 may prove a phenomenal price on the long run.