Sberbank enters Top 20 world’s most capitalised banks
2012-07-18 18:00:53
Sberbank, Russia’s largest bank, has been ranked 17th as one of the most capitalised banks in the world. He aims to enter Top 10, ’Vedomosti’ reports.
With market capitalisation of USD 62.4 bln (21:00 GMT Tuesday), Sberbank entered Top 20 banks by its market capitalisation. On Tuesday, he shared 17/18th places with US Bancorp, but further on, during the trading session Sberbank reached 16th place, outstripping Australian & New Zealand Banking Group. Sberbank also left behind such major players as BNP Paribas, Deutsche Bank etc. Among the European and American banks, it takes 7th place, and among the European banks Sberbank concedes only to HSBC.
To fulfill one of its strategic goals — entering Top 10 most capitalised banks in the world by 2014 — Sberbank needs to capitalise USD 15 bln extra, which makes a quarter of its current capitalisation. As of early 2012, Sberbank’s rates at LSE surged by 13.5%.
Sberbank haS consistently strong financial performance, and with the new assets he purchases, the financial institution will soon become a global player, portfolio managers argue. Taking advantage of state support and lowering rates, Sberbank captured the key corporate clients, and then, using his unlimited resources, it switched to the development of more profitable retail business, Oleg yiugin, MDM Bank board chairman, noted.
However, Sberbank owes its success not only to its expanding capitalization, but to the most global banks’ shares downfall. World markets would continue to support the Russian leading bank, and thus its plans to enter the Top 10 banks looks “feasible”, Vyugin says. European crisis will go on, and the U.S. still causes fears, while oil prices exceed USD 100 per barrel. “In Russia, it is profitable to work, while problems with capital in Europe make it difficult to earn, and European banks’ capitalisation is very likely to keep sliding’, he added.