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(Bloomberg) – Sberbank is benefiting from higher interest rates and a rise in mortgages that have helped raise the market capitalization of Russia’s largest lender to over 100 100 billion.
Shares of the state-owned bank rose 27% in Moscow this year, overtaking Russia’s MOEX index, a record even after years of international sanctions and the toughest political crackdown in years. In dollar terms, shares of Sberbank are trading at their last level in April 2018.
The Bank of Russia has raised rates by 250 basis points so far this year and says further increases are possible. According to Bloomberg Intelligence, Sberbank is benefiting from the increase in demand for government-subsidized mortgages.
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