Citi Reiterates Buy Rating On Sberbank; Top Pick In CEEMEA

Citi analysts reiterated their Buy rating on Sberbank RF as the bank is well-positioned to deliver a ROE of 16% from 2018.

Simon Nellis and Maria Semikhatova of Citi Research believe Sberbank Rossii OAO (MCX:SBER)’s current share price doesn’t reflect the bank’s dominant position in the under-developed Russian banking market.

Sberbank targets to double its net profit

Sberbank Rossii OAO (MCX:SBER) is Russia’s largest bank, controlling 29% of the country’s assets, 34% of corporate lending, 33% of retail lending and 46% of retail deposits. The bank’s retail branch network is over 10x the size of its nearest competitor. Due to its unique history and startling deposit base, Sberbank...