SBER RM
Sberbank of Russia OJSC
Finance/Real Estate
11/10/2015
Presented
| Date | 10/27/2015 |
| Price | RUB90.05 |
| Market Cap | $30.01B |
| Ent Value | $30.01B |
| P/E Ratio | 9.8x |
| Book Value | RUB100.40 |
| Div Yield | 0.48% |
| Shares O/S | 21,530.00M |
| Ave Daily Vol | 113,190,000 |
| Short Int | N/A |
Current
| Price | RUB204.19 |
| Market Cap | $74.49B |
| Sberbank of Russia OJSC provides corporate and retail banking solutions to corporate clients, small businesses, financial institutions, and individuals. It offers various deposit products comprising fixed-term, settlement, and online deposits, as well as savings certificates, trace accounts, and certificates of deposits. The company provides consumer, education, mortgage, car, working capital, business start up, refinance, contract, overdraft, and unsecured loans, as well as loans for new projects, and buying equipment and real estate properties. It also offers loans to constituent entities and municipal units of the Russian Federation, defense industry companies, and agriculture industry companies; and carbon, trade, development project, lease transaction, and trade finance products, as well as bank guarantees and interbank lending services. In addition, the company provides brokerage, custody, mutual fund, asset management, money transfer, payment, safe deposit box rental, cash management, remote banking, cash collection, business management, international business and currency control, global market operation, investment banking, merchant banking, and Russian rouble clearing services, as well as metals accounts, precious metal and coins, and insurance and pension programs. Further, it offers credit, debit, gift, and social cards, as well as cards with individual design and corporate cards; bills, minimum account balance services, and structured products; and leasing services and corporate insurance. As of December 31, 2014, the company had 16 regional head offices, 78 branches, and 17,046 sub–branches in the Russian Federation, as well as operates in Turkey, Ukraine, Belarus, Kazakhstan, Austria, Switzerland, India, Germany, China, the United States, the United Kingdom, and Cyprus. Sberbank of Russia OJSC was founded in 1841 and is headquartered in Moscow, the Russian Federation. |
This idea was presented at the Excellence in Investing Conference, San Francisco on 10/27/2015.
Publicly traded companies mentioned herein: JPMorgan Chase (JPM), Sberbank PAO (SBER RM), VTB Bank PJSC (VTBR RM), Wells Fargo & Co (WFC)
Highlights
The Russian market has been under pressure since the Ukraine crisis began and the price of URALS ($/barrel, Russian oil blend) has been halved over the past year. In addition, the USD/RUB exchange rate has spiked, inflation is running hot, and there is an overhang from the risk that Russian banks could be banned from SWIFT. Despite this backdrop and the selloff in Russian equities, the presenter suggested taking a long position in Sberbank (SBER RM; SBER LI), which “is simply an old, state-owned bank” with a “massive funding advantage” due to its 46% deposit share in Russia. He said he has owned the stock on a number of occasions since 2002 and trusts the management team (EPS have improved ten fold looking back 16 years, despite multiple crises). Street analysts “do not want to go out on a limb” on Sberbank at this time and the presenter said the situation reminds him of a quote: “Everyone is a value investor, until the stock gets really cheap.”
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