Is Sberbank/Troika paying people too much?

Sberbank’s shares fell this week after it emerged that costs are the bank are increasing on the back of higher administrative expenses and higher salary costs.

Costs at the bank increased 22% in the first half. In a statement on its website, Sberbank attributed this to salary increases dating back to the second half of 2011.

Analysts at VTB Capital said operating expenses are putting pressure on Sberbank’s bottom line and that it is vulnerable to a slowing Russian economy. It seems there may not be any new salary increases at Sberbank or Troika this year.