Russia's Sberbank Warns of Rising Corporate Credit Risks Amid Increasing Bad Loans
Russia's largest lender, Sberbank, has reported a significant increase in the share of impaired loans within its portfolio, highlighting rising corporate credit risks. The bank's financial statements reveal that overdue loans have reached 2.6 trillion rubles ($32.5 billion), with a substantial portion being more than 90 days past due. This includes 636 billion rubles ($8.0 billion) in corporate loans. The Central Bank of Russia has classified 11.7% of corporate loans, 1.9% of mortgages, and 13.2% of consumer loans as problematic, amounting to 13.4 trillion rubles ($167.5 billion) across the banking system. Analysts have raised concerns that loan restructurings are masking the true quality of these assets. Sberbank's CEO, German Gref, noted that the bank's credit committee is now primarily focused on managing problem assets, with the economic outlook further deteriorating due to factors such as high interest rates and a strong ruble. 
