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Sovcombank: profit up 49%, but net interest income growth slowed from 69% to 46%

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Совкомбанк

On 13 November Sovcombank reported results for Q3 2026. Net interest income came in at RUB 69,352 mn, net profit at RUB 26,648 mn, up 45.7% and 49.3% year on year. Net interest income growth slowed from 69.1% in Q2 to 45.7% in Q3, but profit is growing faster than the top line on lower interest expense. Our conclusion: the share is rather attractive – the portal model puts upside to fair value at +49%, which outweighs the deceleration and the low dividend yield. Our view: the share is rather attractive at the current price; upside on the portal model +49%.

Our view: is there upside

Our view in numbers

MetricOur read
VerdictRather attractive
Upside on the portal model+49%
How the model worksfinancials model: annualised earnings to market cap, i.e. ROE against P/B
Strongest case forP/E of 2.8 with ROE of 24% and +49% upside on the portal model – the valuation implies a high return on capital at a low multiple.
Strongest case againstNet interest income growth slowed from 69.1% to 45.7%, and interest income is already falling – to RUB 181,187 mn from RUB 190,900 mn a year earlier.
What would change the viewIf the key rate continues to fall and interest income declines further, the verdict would move one step down – to neutral.

Key takeaways

— Net interest income grew 45.7% but slowed from 69.1% in Q2

— Profit is growing faster than the top line as interest expense fell 22%

— Fee and commission income added 16% and supported revenue

— Retail and corporate segments now contribute equally to profit

— Dividend yield of 5% is below what we consider fair for a bank

— P/E of 2.8 and ROE of 24% – the share trades at a discount to its own history

Key figures, RUB bn

MetricQ3 2025Q3 2026Change
Net interest income47.669.4+45.7%
Net profit17.826.6+49.3%
Net margin37.5%38.4%+0.9 pp

Net interest income grew 45.7% but slowed from 69.1% in Q2

Net interest income in Q3 was RUB 69,352 mn, up 45.7% year on year. This is a marked deceleration from Q2, when growth reached 69.1%. The slowdown is largely due to the high base effect: in Q3 2025 income had already begun to recover after a weak Q2.

Interest income for the quarter fell to RUB 181,187 mn from RUB 190,900 mn a year earlier. The main pressure came from retail loans, where income fell to RUB 72,376 mn from RUB 75,922 mn, and corporate loans – to RUB 68,597 mn from RUB 72,416 mn. At the same time, income from placements with banks rose to RUB 18,398 mn from RUB 14,339 mn.

For the nine months, net interest income was RUB 194,091 mn versus RUB 120,806 mn a year earlier. The quarterly dynamics show that income growth is slowing but remains high in absolute terms.

Net interest income and profit by quarter

Missing EBITDA shown as zero, as in the original chart

Revenue and EBITDA by quarter

Profit is growing faster than the top line as interest expense fell 22%

Net profit for Q3 was RUB 26,648 mn, up 49.3% year on year. Profit growth outpaces net interest income growth thanks to a fall in interest expense to RUB 109,881 mn from RUB 141,279 mn a year earlier – a 22% decline.

The decline came mainly from term deposits of individuals, where interest fell to RUB 30,322 mn from RUB 45,928 mn, and of legal entities – to RUB 53,234 mn from RUB 66,770 mn. This reflects the lower key rate: the bank pays less on borrowed funds.

Net profit as a share of net interest income rose to 38.4% from 37.5% a year earlier. This is not a margin but the share of profit in interest income, and its growth shows the bank is managing expenses more efficiently.

Net profit by quarter

Fee and commission income added 16% and supported revenue

Fee and commission income in Q3 was RUB 17,328 mn versus RUB 14,879 mn a year earlier, up 16%. The main contribution came from bank guarantees – RUB 7,070 mn versus RUB 5,806 mn, and settlement services – RUB 3,991 mn versus RUB 3,093 mn.

Income from electronic trading platforms rose to RUB 2,060 mn from RUB 1,791 mn, from securities issuance – to RUB 1,873 mn from RUB 1,922 mn. Income from bank card operations fell to RUB 535 mn from RUB 1,668 mn.

For the nine months, fee and commission income was RUB 49,195 mn versus RUB 41,180 mn a year earlier. Fees are growing slower than net interest income but remain a stable revenue source.

Retail and corporate segments now contribute equally to profit

For the nine months, the retail segment earned RUB 59,457 mn, the corporate segment – RUB 60,004 mn. A year earlier retail contributed only RUB 1,405 mn, while corporate – RUB 59,650 mn. Retail has recovered from a weak start to the year.

Treasury remained loss-making: minus RUB 27,653 mn versus minus RUB 17,546 mn a year earlier. The loss widened due to irregular operations: net irregular loss on financial instruments was RUB 20,080 mn versus a loss of RUB 13,083 mn a year earlier.

The retail segment improved its result through lower credit loss charges, down to RUB 39,443 mn from RUB 53,958 mn a year earlier. The corporate segment delivered a stable result despite credit loss charges rising to RUB 22,761 mn from RUB 9,161 mn.

Dividend yield of 5% is below what we consider fair for a bank

No dividends were paid over the last 12 months. Our estimate puts the annual dividend at RUB 0.56 per share, implying a forward yield of 5.0% on the current price. We consider a 10.5% yield fair for this name.

The payout history is uneven: RUB 0.25 per share for 2023, RUB 1.14 for 2024 (6.9% yield at the ex-date), RUB 0.35 for 2025 (2.3%). The model assumes a payout ratio of 18% of profit.

The key rate of 14% sets a high bar for dividend yield. At the current earnings estimate and payout ratio, a dividend of RUB 0.56 per share looks modest relative to the rate. Higher payouts are possible with profit growth or a higher payout ratio.

Share price, three years

close, last point 2026-11-10

P/E of 2.8 and ROE of 24% – the share trades at a discount to its own history

P/E on trailing twelve-month earnings is 2.8, ROE – 24.0%. Market capitalisation is RUB 253,870 mn. Trailing twelve-month profit is RUB 89,768 mn. Such a valuation implies a high return on capital at a low multiple.

On the portal's model, upside to fair value is estimated at +49%. This is our own calculation based on the ROE and P/B relationship. The model is not a market consensus or a target price.

The share is held in the portal's live model strategies: RU AI conviction (Claude), RU AI long-short (market-neutral), RU Banks & financials (potential). This is a fact, not an argument for the verdict.

Valuation on the latest reported figures

MetricValue
Market cap254 bn ₽
P/E (LTM)2.8
P/B0.65
ROE24.0%

Dividend per share, ₽, and yield at the ex-date

Year paidDividendYield
20230.25—
20241.146.9%
20250.352.3%

Dividend per share by year paid

₽ per share by year paid; yield at the ex-date

Yield at the ex-date

₽ per share by year paid; yield at the ex-date

Dividend per share and yield at the ex-date

Bottom line

The report's strength was profit growth of 49.3% alongside a 22% fall in interest expense: the bank earns more on the rate spread. The retail segment recovered and matched corporate in its contribution to profit. The weak spots are the slowdown in net interest income growth and the treasury loss. Dividend yield of 5% is below the fair 10.5%, limiting appeal for income holders. Our conclusion: the share is rather attractive – the portal model puts upside to fair value at +49%. Our view: the share is rather attractive at the current price; upside on the portal model +49%.