Banks suffer moderate losses from pandemic

Sberbank gave an optimistic assessment of the post-pandemic economy.

Ramil Sitdikov / RIAN
Ramil Sitdikov / RIAN

According to First Deputy Chairman of Sberbank Alexander Vedyakhin, banks have not incurred severe credit losses from the coronavirus pandemic as they had feared, and the consequences of lockdowns are not as sad as expected, RBC reports.

According to the banker, “the entire market” has overestimated their potential non-performing loans: in fact, their loan portfolio (at least at Sberbank) will not deteriorate at all.

Russians turned out to be reliable borrowers and most of them are repaying their loans on time. Alexander Vedyakhin thanked the bank’s clients for this.

Sberbank estimates its 2021 loan portfolio risks at 100 points (or 1%). This means the bank is setting aside only 1% of its total loan portfolio as an allowance for credit loss, that is, uncollected loans and loan payments. Earlier, the risk estimate was as high as 140 points (1.4%).

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