Sberbank: Q2 2026 net profit up 20.9%, but margin squeezed by rising costs

On July 29, Sberbank released its Q2 2026 results. Net profit rose 20.9% YoY to RUB 511.2 bn, net interest income grew 26.7% to RUB 1,066.8 bn, but net margin fell from 50.2% to 47.9%. This review examines what drove growth and what is pressuring profitability.

Key takeaways

— Q2 2026 net interest income rose 26.7% to RUB 1,066.8 bn amid key rate cuts

— Net margin fell from 50.2% to 47.9% due to faster expense growth

— Fee income in Q2 grew 4.5% to RUB 310.4 bn, lagging interest income growth

— H1 net profit reached RUB 1,019.1 bn, helped by lower provisioning

— Cost of risk declined: Q2 2026 credit loss provisions were RUB 171.5 bn vs RUB 211.5 bn a year earlier

— Trailing 12-month dividend yield of 14.1% exceeds the fair level of 10.5%

Key figures, RUB bn

Q2 2026 net interest income rose 26.7% to RUB 1,066.8 bn amid key rate cuts

In Q2 2026, Sberbank's net interest income reached RUB 1,066.8 bn, up 26.7% YoY. Growth accelerated versus prior quarters: Q1 2026 saw 18.2%, Q4 2025 – 19.9%.

The key driver was the Bank of Russia's rate cut from 16.0% to 14.25% in February–June 2026. This made funding cheaper, while lending rates declined more slowly, widening the interest margin. Loan portfolio growth also helped: loans and advances to customers rose from RUB 47,972.7 bn at end-2025 to RUB 49,975.0 bn as of June 30, 2026.

Net margin fell from 50.2% to 47.9% due to faster expense growth

Net margin for Q2 2026 was 47.9% versus 50.2% a year earlier. The decline reflects operating expenses growing faster than revenue: H1 staff and administrative expenses rose from RUB 555.0 bn to RUB 639.6 bn, up 15.2%.

Operating income for H1 grew 18.9% – from RUB 1,671.5 bn to RUB 1,988.1 bn. Still, faster cost growth, including technology and personnel investments, squeezed the margin. This signals the bank is increasing costs faster than it generates income.

Fee income in Q2 grew 4.5% to RUB 310.4 bn, lagging interest income growth

Fee income for Q2 2026 was RUB 310.4 bn, up 4.5% YoY (RUB 297.2 bn). For H1, fee income rose from RUB 570.1 bn to RUB 594.8 bn, a 4.3% increase.

Fee income growth is significantly slower than interest income, reflecting moderate dynamics in settlement services and securities commissions. This is structural: the bank increasingly earns from lending rather than transactional business.

H1 net profit reached RUB 1,019.1 bn, helped by lower provisioning

H1 2026 net profit was RUB 1,019.1 bn versus RUB 859.0 bn in H1 2025, up 18.6%. Q2 profit reached RUB 511.2 bn, up 20.9% YoY.

The key factor was lower cost of risk. Q2 2026 credit loss provisions were RUB 171.5 bn versus RUB 211.5 bn in Q2 2025. H1 provisions fell from RUB 364.8 bn to RUB 332.7 bn. Improved macroeconomic outlook and revised PD/LGD models reduced expected credit losses, especially in mortgages.

Cost of risk declined: Q2 2026 credit loss provisions were RUB 171.5 bn vs RUB 211.5 bn a year earlier

Lower provisioning is the main driver of profit growth. In Q2 2026, credit loss provisions fell 18.9% YoY to RUB 171.5 bn. For H1, the decline was 8.8% – from RUB 364.8 bn to RUB 332.7 bn.

The bank attributes this to updated PIT calibrations and revised expectations for the residential real estate sector, which reduced expected credit losses by tens of billions of rubles. However, part of the effect may be one-off – cost of risk could return to higher levels next quarter.

Trailing 12-month dividend yield of 14.1% exceeds the fair level of 10.5%

Over the last 12 months, Sberbank paid RUB 37.64 per share, a yield of 14.1% at the pre-release price of RUB 272.48. Our model estimates the next dividend at RUB 40.33 per share, implying a forward yield of 15.1%.

The fair yield for this issuer is 10.5%, so both trailing and forward yields are notably higher. The model implies a payout ratio of 0.49 of profit. The share price rose 1.2% on the release day and then fell 0.5% by August 17, suggesting a muted market reaction.

Valuation on the latest reported figures

Bottom line

Sberbank reported strong results: Q2 2026 net profit rose 20.9%, helped by key rate cuts and lower provisioning. However, the quality of growth is uneven – part of the profit comes from one-off model revisions rather than sustainable operational improvement. Operating expenses are growing faster than revenue, pressuring margins. For shareholders, the key question is whether the bank can keep cost of risk low and slow expense growth; otherwise, the current dividend yield may prove to be at its peak.