The Economist magazine: Sberbank second most profitable stock of past decade

Sberbank stock gave the second highest returns of large companies over the past decade, The Economist magazine reported on February 18. The same week, the Russian lender finalized a deal that should see it expand in Europe.

In a brief article on the five best and worst performing stocks over the past ten years, the publication noted that an investment of $100 in the state-owned bank in 2002 would now be worth more than $3,700. The top spot was taken by Apple, with a return of $3,919.

Among the least impressive performers were banks in the U.S. and Europe, with The Economist magazine concluding, “Western financial institutions have been by far the worst investment of the past decade.”

Sberbank also made headlines when it acquired Austrian Volksbanken International AG bank (VIB) on February 15, as it seeks growth outside the former Soviet Union. Though the sale was initially agreed upon on September 8 for €585 million ($776 million), the closing price was €505 million ($667 million), due to losses incurred in transition period.

After the deal was finalized, Sberbank CEO German Gref told reporters that the Eurozone debt crisis was not a concern for the bank as it moves westwards. “We are prepared to work in a volatile environment. We are used to heavy fluctuation in our own country. We don't have any great fears concerning this currency [the euro].”