MOSCOW, Aug 8 Reuters Russia39;s dominant lender Sberbank on Thursday reported secondquarter profit of 418.7 billion roubles 4.88 billion, up 10.1 from the same period last year, boosted by a growing loan portfolio.

The statecontrolled bank made a record 1.5 trillion rouble profit in 2023, a more than fivefold increase on the previous year, as Russia39;s banking sector recovered from the impact of financial sanctions over the country39;s actions in Ukraine.

Sberbank, which dominates Russia39;s banking sector with over 109 million retail clients, said its return on equity ROE was 25 in the first half of 2024, prompting it to raise its fullyear ROE forecast to more than 23, from more than 22 before.

Firsthalf profits stood at 816.1 billion roubles, up 10.7 year on year.

Corporate loans increased 4.4 quarter on quarter and retail loans by 6.3, CEO German Gref said in a statement, also noting a surge in demand for mortgages.

Sberbank39;s finance chief Taras Skvortsov told Reuters in June that profits for 2024 could exceed those of 2023. He said the bank expected to send at least 11.6 billion in tax and dividends to Russia39;s federal budget this year.

1 85.8500 roubles

Reporting by Reuters Writing by Alexander Marrow Editing by David Goodman and Mark Potter

Source Reuters