If you’re not spending those commodity-based dollars, you’re investing or saving them.
As the largest bank in Russia, Sberbank (PINK:SBRCY) has nearly 20,000 branches across the Russian Federation and dominates in terms of deposits and loans. The bank accounts for roughly one-third of all aggregate banking assets in the nation and more than 70% of the entire Russian population uses the bank.
That scope and size has helped Sberbank post some pretty impressive earnings growth over the last few years. Full-year profit for 2012 rose 11% as the bank made more loans to consumers and companies. More importantly, non-performing loans continue to drop and the financial giant’s net interest income jumped 23% during the year. Net interest income is an important bank statistic as it measures the difference between what a bank earns from lending and what it pays on deposits.
Despite being the fourth largest bank in all of Europe, Sberbank is most ignored by investors. That’s a shame, as it remains one of the best opportunities to play Russia’s rising wealth.