Moscow Exchange. The influx of customers. Are we investing in stocks because banks are not profitable? – 18 July 2020


Deposit or promotions?

According to the statistics of the Moscow Exchange, for 6 months from the beginning of this year the number of clients increased by almost 25% and exceeded 5 million people for individuals. For comparison, five years ago it was five times less.

MB clients

The undisputed leaders in terms of the number of clients are Tinkoff (almost two million) and Sberbank (also approaching two million), VTB among the top three with a large lag

Leading operators by number of clients

Why it happens?

The average maximum rate on deposits in the 10 largest banks is already below 5%. Deposit rates are most sensitive to changes in the key rate, which has been reduced to 4.5%. The real profitability of deposits (taking into account low inflation) remains positive, but the adjustment of bank rates to the new key rate level has not yet been completed.

At the same time, on the Moscow Exchange, when investing in stocks and bonds, it is possible to obtain a yield higher than the deposit one (when investing in conservative issuers):

For example, issuers with a fixed dividend policy and strategic plan:

1) PUBLIC JOINT STOCK COMPANY “MOBILE TELESYSTEMS”

MTS dividend policy

MTS strives to pay at least 28 rubles a year per share through two semi-annual payments. With the current price of MTS at 320 rubles per share, we get a net 7.6% per annum, i.e. profitability is 50% higher than at the average rate in the largest bank.

2) PUBLIC JOINT STOCK COMPANY “ENEL RUSSIA”

The company’s strategic plan for 2020–2022 assumes a balance of growth opportunities, financial stability of the business and predictable shareholder compensation. Given the period of strategic positioning of the company and profit volatility in the medium term, the company is introducing a fixed dividend to ensure a guaranteed return for its shareholders. Based on the results of 2019-2021, the company aims to distribute RUB 3 billion each. yearly.

Moreover, the amount of dividends per share is 0.085 kopecks. which at the current ENEL price of 0.925 rubles is a net 7.99% per annum, i.e. the yield is 59.8% higher than at the average rate in the largest bank.

Of course, the level of risk when storing funds on a deposit in the largest bank and when investing in stocks is different !!!

WE TRANSFER FREE OF CHARGE UP TO 100,000 rubles per month !!!

We determine the real exchange rate of the ruble using the formula

Reinforced concrete investment idea!

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