# Russia’s largest lender Sberbank on track to profitability, says CEO Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-09-07 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Sberbank CEO Expects Profitability Amid Sector Recovery Meta Description: CEO German Gref says Sberbank on track to profitability in 2022 despite GDP decline. Bank moves towards yuan, closer to China amid Europe split. URL: https://financedigest.com/russias-largest-lender-sberbank-on-track-to-profitability-says-ceohtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-09-07t043520z1lynxmpei8606xrtroptp4russia-sberbank-1736815276396-compressed.jpg) By Alexander Marrow VLADIVOSTOK, Russia (Reuters) -Russia’s top lender Sberbank is on track to profitability and expects positive results this year, CEO German Gref said on Wednesday, as the Russian banking sector recovers from hefty first-half losses. Gref, who was speaking during an online press conference at Russia’s Eastern Economic Forum in Vladivostok, declined to give concrete forecasts on Sberbank. He said Sberbank [expected Russia’s](https://www.financedigest.com/u-n-expects-ukraine-russia-grain-deal-to-be-implemented-in-a-few-weeks-officials.html "U.N. expects Ukraine-Russia grain deal to be implemented in a few weeks -officials") GDP to decline 4.5% in 2022. At the forum, officials have been revising their [forecasts concerning the size of the economic](https://www.financedigest.com/uk-minister-says-government-will-work-with-obr-on-economic-forecasts.html "UK minister says government will work with OBR on economic forecasts") hit from sanctions and other restrictions this year. Russia [Economy Minister](https://www.financedigest.com/italys-giorgetti-gets-melonis-backing-to-be-economy-minister.html "Italy’s Giorgetti gets Meloni’s backing to be economy minister") Maxim Reshetnikov said on Tuesday the economic contraction this year would be 2.9%, shallower than previously forecast, while No. 2 lender VTB now envisages a 4% contraction. Financial sessions in Vladivostok have featured long discussions about the growing use of [China’s yuan](https://www.financedigest.com/dollar-slips-yuan-gains-on-china-pmi-hot-inflation-lifts-euro.html "Dollar slips, yuan gains on China PMI; hot inflation lifts euro") in Russia’s financial system. Sberbank has already started lending in yuan and VTB [plans to do so later](https://www.financedigest.com/are-the-over-55s-accessing-their-pensions-early-failing-to-plan-for-later-life.html "Are the over-55s accessing their pensions early failing to plan for later life?") this year. Gref said Russia had fallen out with its [traditional partner](https://www.financedigest.com/bequant-partners-zagtrader-bring-sophistication-traditional-finance-tools-cryptocurrency-market.html "BeQuant partners with ZagTrader to bring the sophistication of traditional finance tools to the cryptocurrency market"), Europe, and that a natural consequence of this was Moscow’s closer cooperation and greater dependence on Beijing, something he called the “development of cooperation. I don’t think Russia will return to such a situation of the [dollar’s influence on the domestic economy,”](https://www.financedigest.com/stocks-dollar-gain-on-resilient-u-s-economy.html "Stocks, dollar gain on resilient U.S. economy") Gref told reporters, expecting other currencies, primarily the yuan, to replace the dollar and euro in part. Earlier in the day, VTB CEO Andrei Kostin said Russia’s [banking sector](https://www.financedigest.com/sterling-rises-as-receding-bank-sector-worries-lift-sentiment.html "Sterling rises as receding bank sector worries lift sentiment") likely no longer needed systemic capitalisation, having withstood the most serious effects of Western sanctions imposed against Russia in waves after Moscow sent thousands of troops into Ukraine on Feb. 24. Gref said Sberbank, which was targeted with sanctions, did not need capitalisation, but thanked the central [bank for the “extremely necessary” financial support](https://www.financedigest.com/comserve-to-support-allied-irish-bank-nationwide.html "COMSERVE TO SUPPORT ALLIED IRISH BANK NATIONWIDE") it had extended earlier this year. Sberbank also [plans to develop further in the e-commerce sector](https://www.financedigest.com/conocophillips-plans-1-1-billion-investment-as-norway-oil-sector-heats-up.html "ConocoPhillips plans .1 billion investment as Norway oil sector heats up"), Gref said. (Reporting by Alexander Marrow; Editing by Muralikumar Anantharaman) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---