Sberbank decreases funding of its daughter banks in Europe

(Photo: Saint-Gobain Rigips Trophy Srbija)

Sberbank, one of the biggest Russian banks, is planning this year to cut funding of their daughters in Europe, it was said in one of the projects of anti-crisis plan of the state-owned bank – Russian business newspaper Vedomosti, reports.

By July 1, 2015, daughter-banks for sale and proposals for cost reduction in these banks, including staff and real estate should be defined, the project comprises.

It really means the state-owned bank will cut funding of European “daughters” and wait for them to return funds which have been given to them in previous years.

Sberbank Europe AG manages daughter-banks in Slovakia, the Czech Republic, Hungary, Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Germany and Ukraine.

Representative of Sberbank, as an answer to the question of Vedemosti, only said the bank is developing business model in Europe so that it would create stabile, profitable and financially independent banking group. He refused to comment how much funds and what deadline Sberbank Europe got. VTB attracts EUR 2 billion through deposits.

The man close to the Sberbank management confirmed the plans: this year, banks must operate independently to ensure liquidity, including attracting of retail deposits. According to him, banks have leart already to attract funds, the amount of deposit of physical entities in daughter banks in Europe total now 250 billion rubles (EUR 3, 6 billion in the exchange rate for April 4), seebiz portal reports.