Sberbank, one of Russia's leading financial institutions, has reported significant losses from its non-core business activities, which have surged by 26% to reach 284.1 billion rubles for the fiscal year of 2024. The announcement was made on February 27, 2025, shedding light on the bank's struggles as it seeks to stabilize its financial footing amid challenging market conditions.
According to the bank's report, revenue generated from non-core operations also experienced growth, climbing to 505.5 billion rubles compared to 371.8 billion rubles the year prior. This paradox of rising revenue against deepening losses reflects the complex nature of Sberbank's diversification strategy.
"We are seeing truly remarkable synergies from our various investments," said Herman Gref, Sberbank's president and chairman. He acknowledged the mixed results but emphasized the importance of recognizing the significant positive balance achieved through scale and investment diversification, particularly as the bank navigates non-banking functions.
Gref candidly addressed the challenges faced, stating, "Of course, not all our investments have been top-notch, and we have certainly made mistakes." Such reflections stem from pressures to optimize and rationalize the bank's portfolio across multiple sectors.
Looking forward, Sberbank aims to implement stricter controls and management practices within its subsidiaries. Gref highlighted the introduction of much tougher standards across the board during 2025, indicating, "We are trying to create uniform conditions. The rigorous requirements placed on Sberbank will now be mirrored across all subsidiaries as we seek to recalibrate our operational ambitions." The move is part of broader efforts to streamline operations and improve overall performance.
Concurrently, Sberbank has initiated optimization measures within its e-commerce sector. According to reports, the IT division associated with Sberbank, known as Ecom.tech, is undergoing significant workforce restructuring to boost operational efficiency. "Many managers have changed, and many will change this year. We will see substantial changes to the ambitions of our companies, and we are actively seeking funds internally," added Gref when questioned about these transitions.
The restructuring looks to create heightened competitiveness under tighter operational constraints. Gref noted, "The harsher the conditions, the more competitive they must be," hinting at the need for increased self-sufficiency within business lines. He cautioned, though, against the expectation of immediate self-sustainability, stating, "It’s important to assess the overall results comprehensively, as we see significant potential to make substantial strides forward."
To aid these efforts, Sberbank is heavily investing in generative AI technology to transform its operational framework. Gref revealed, "We are deploying generative AI technologies everywhere for efficiency enhancements, as all models yield higher performance indicators. We are now embedding GigaChat across various platforms, leading to significant qualitative leaps." This strategy reflects Sberbank's ambition to remain at the forefront of technological implementation within the financial sector.
Senior Vice President Kirill Menchov has indicated plans to develop AI assistants for key roles within the company, which will operate autonomously, thereby changing the traditional dynamics of work within Sberbank. The establishment of a tech development block aims to create cutting-edge AI-native frameworks to support the organization's transition to being more AI-centric and autonomous.
Given the extensive redesign of business models and the introduction of AI, Sberbank is positioning itself to navigate the turbulent waters of the banking sector, but the underlying losses highlight the need for vigilance and effective governance if it hopes to stabilize its financial standing. The coming years will be pivotal as it looks to balance innovation with profitability, driving home the necessity for adaptability and strategic foresight.