The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Russian banks struggle for capital

With lending booming again, Russia’s banks need recapitalizing. Ironically, partial privatization of state-owned financial institutions may be crowding out much-needed stock offerings by private-sector lenders and smaller banks.

Investment bankers covering financial institutions in Moscow are hoping for bountiful months to come in equity issuance. Daniel Jacobowitz, co-head of Russia investment banking at Deutsche Bank, thinks public equity offerings by Russian financial institutions could total as much as $10 billion in the next year.

By contrast, there was not a single such deal in the entire year from the end of April 2011, according to Dealogic.

But privatization, before anything else, is most likely to account for any increase in equity issuance by Russian banks after the first part of this year: above all, perhaps, the postponed sale of 7.6% of the central bank’s 60% stake in Russia’s biggest lender, Sberbank.

The central bank said earlier this year it might look to sell the stake once Sberbank’s share price rose above R100, valuing the sale at about $6 billion. The share price was at R93 in late April, but pronouncements suggest the government is still keen to sell the stake in 2012, preferably in the summer, or at least the autumn.

Ironically, Sberbank is perhaps the Russian bank with the least need to tap the equity market. Overall, capital ratios in Russia are still healthy, at least officially – especially compared with western Europe.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree