Tuesday, April 15, 2014
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Sberbank CIB intends to expand its portfolio in 2018 trade finance up to $ 80 billion from the current 15 billion, said head of the trade finance and correspondent banking Sberbank CIB Andrey Ivanov. According to him, such a goal lies in the five-year strategy for the development of trade finance and documentary business, which was approved by the Savings Bank in March. "By the end of 2018 we should not only occupy a large market share, but also have become a big player in the field of trade finance and documentary operations in those countries in which there is Sberbank. We pretend to take a share of up to 10% of the external trade of these countries and on the income side to enter the top 10 global banks operating in the trade finance ", - said Ivanov. To achieve its goals Sberbank CIB intends to move in three main areas: finance companies aviation business, finance deliveries of commodities (Commodity Trade Finance, CTF) on the basis of Sberbank (Switzerland) AG and transactions involving export credit agencies, including the Russian Agency for the Insurance of Export Credit and Investment (EXIAR).
There's a good chance this falls further, but this was a nice trade and I don't become too greedy and risk losing my gain. I'm only focused on gathering more shares. I just increased my share count by 12% in 11 trading days, or about two weeks. Now I wait for things to bottom out and move back up again.
Worth mentioning too, that that represents an approx. 20% increase in dividend yoy. Pretty impressive. Stock is trading well below book value and has a p/e in the 4 range. Very large future growth potential and a huge competitive moat. Of course there's risk here too. Gotta pay to play, have to take on risk if you want yield. I like the odds however. I'll take my chances on Putin not wanting to start WW3, and rely on the fact this is a highly profitable business.
UPDATE 1-Russia's Sberbank recommends 3.20 roubles/share dividend
Fri Apr 11, 2014 10:31am EDT
(Reuters) - The board of Russia's largest bank Sberbank has recommended a 2013 dividend payout of 3.20 roubles a share for its preferred and ordinary shares, its CEO German Gref said on Friday.
For 2012, Sberbank paid a dividend of 2.57 roubles a share for its ordinary shares and 3.20 roubles a share for its preferred shares. (Reporting by Oksana Kobzeva, writing by Megan Davies)
Each share of SBRCY is equal to 4 shares in Russia. 3.2 rubles equals $0.09
So, I would assume that means that per ADR share of SBRCY, it should work out to $0.36/share. At current share price of $8.98, that works out to a dividend yield of 4%.
Interesting day, I think the US market sell off swept into this and took control to push it down. London closed at $9.14 and the two usually close within a few cents of eachother, so this was an anomaly.
Moscow price is $8.99 That's also weird, for this price to be so close to Moscow price, usually Moscow price is 2 - 5% lower than the ADRs in London and the US (we pay a premium on the ADRs for the safety benefit in event of capital controls being imposed in the Russian market).
Unless the US market tanks tomorrow, even further, this should bounce up to match London and Moscow. I can't predict what the US market is going to do though.
Can't promise it won't dip down again, nor can I promise that there won't be some more events in the Ukraine that harm the stock price.
However, it looks like a pretty good time to me. It's all about the fundamentals, this stock was extremely cheap at $12, at $9 it's ridiculously cheap. If you open a chart and set to max you'll see it periodically tanks like this, because of some fear event in Russia, but it always swings back up very quickly and reaches at least $12.
April 10, 18:55 UTC+4
MOSCOW, April 10. /ITAR-TASS/. One of Russia’s biggest banks, Sberbank, expects no economic sanctions against itself.
“We do not expect economic sanctions,” Sberbank CEO Gherman Gref told a news conference on Thursday. “I do not know what for we can be punished. We are an efficient company and bring nothing but mere positive to anyone.”
No super obvious signals, so don't trade on anything here I say, I wouldn't, as I only trade on the most obvious of signals, but, just for fun, I'm going to guess this begins moving back up. It might hit resistance at $9.40, come back down a bit, then move back up and start heading to $9.80 again. This time however, I think it will hit at least $10. Catalyst events, of which many possible exist right now during this Ukraine crisis, can trump all technicals. Also, this is dividend week, I can't find the exact day, but it's worth staying in market for this week just to make sure you get it, I think the actual pay date is in July.
Donetsk in East Ukraine just declared itself and independent republic, while government buildings in two other E. Ukraine cities were seized by pro Russian protestors.
Things are heating up. ruble is crashing and with it Russian stocks. Bear flag pattern seemed to predict this (somehow). Pattern is now completing itself, with a major gap down, which should continue further.
I trust this bank more than any American bank. Mess up running this bank and have to answer to Putin. German guy runs this bank (German Gref) and he's stereotypical German, hyper efficient, ambitious, workaholic and extremely capitalistic.
Wait until the BRICS countries develop their own alternative to the SWIFT banking system, to free themselves from Western dominance and threat of sanctions in the future. That will be the real game changer, because along with it they can begin accepting other currencies for oil exports (Russia is world's #1 oil exporter), as opposed to the US dollar. US dollar's role as a petrol dollar may be lost in the next decade and with it a lot of the strength it once had.
Pumps the ruble up again. Looks like this is the band they're comfortable with right now. 0.0281 - 0.0284.
There's some bullish indicators here, but I'm unconvinced there's enough strength here to push up further in the short-term. $9.80 is serving as resistance. This run looks exhausted to me and ready for a correction, down to $9.05 range.
is too soon to speak about equilibrium in the currency market when it comes to ruble over dollar at .278 - .285
corruption is everywhere but there is more corruption in the east european countries than in the west europe or even north america
Iben also likes Sberbank (SBRCY), which has the second-largest weight in the RTS index. It sells for 0.8 times this year's estimated book value of its assets, roughly in line with major U.S. banks. But the growth prospects are better: "Russia's economy isn't over-levered, so banks can grow loans at double digit rates for years to come," he says. "U.S banks are struggling to grow loans at all." Sberbank has a dividend yield of just over 3%. Shares could double over five years, says Iben.