SBERBANK
Information
(materials)
TO BE SUBMITTED TO PERSONS
ENTITLED TO ATTEND THE ANNUAL
GENERAL SHAREHOLDERS’ MEETING
OF OJSC SBERBANK OF RUSSIA
ON 2011 RESULTS
MOSCOW 2012
Contents
1.
Notice of Meeting
2.
The Bank's 2011 Annual Report prepared pursuant to securities laws of
the Russian Federation
3.
The Bank's 2011 Annual Report prepared pursuant to Directive #2089-U
of the Bank of Russia dated 8 October 2008 On the Procedure to Be
Followed by Lending Institutions in Preparing an Annual Report:
3.1.
An Audit Opinion of ZAO Ernst & Young Vneshaudit on the 2011
Annual Report
3.2.
The Statement of Financial Position (disclosure form)
3.3.
The Profit and Loss Statement (disclosure form)
3.4.
The Cash Flow Statement (disclosure form)
3.5.
3
The Statement of Capital Adequacy, Allowance for Doubtful Loans and
Other Assets (disclosure form)
3.6.
Details of Mandatory Requirements (disclosure form)
3.7.
Explanatory Note
4.
The Audit assessment carried out by the Audit Committee of the Bank's
Supervisory Board
5.
Opinion of the Bank's Audit Committee on the results of financial and
business operations in 2011
6.
Recommendations of the Bank's Supervisory Board on profit distribution
and amount of dividends payable on the Bank's shares for 2011
7.
Information about candidate members to the Supervisory Board
8.
Information about candidate members to the Audit Committee
9.
Draft revised Charter of the Bank
10.
Draft resolutions of the Meeting
2
Notice
on the Annual General Shareholders’ Meeting
of Joint Stock Company Sberbank of Russia
Dear shareholders,
Joint-Stock Company Sberbank of Russia, located at 19 Vavilova Street, city of Moscow
117997, Russia, hereby advises that the Annual General Shareholders’ Meeting will be held on 1
June 2012 on 2011 results as a meeting (concurrent attendance by shareholders to discuss issues
on the Meeting's agenda and make resolutions on issues put to the vote).
The list of persons entitled to attend the Meeting has been prepared on the basis of the Share
Register as of the close of the trading day on 12 April 2012.
The Meeting will be held in the conference hall of OJSC Sberbank of Russia at 19 Vavilova
St., Moscow, at 10 a.m. (Moscow time).
Agenda of the Meeting:
1.
2.
3.
4.
5.
6.
7.
Approval of the Annual Report
Approval of the Annual Financial Statement
Distribution of profits and payment of dividends for 2011
Approval of the auditor
Election of members to the Supervisory Board
Election of members to the Audit Committee
Payment of compensation to members of the Supervisory Board and the Audit
Committee
8. Approval of the draft revised Charter of the Bank
Registration of the Meeting attendees will commence at 8 a.m. (Moscow time) on 1 June
2012.
Completed ballots can be sent to the following mail address: 19 Vavilova St., Moscow
117997.
Completed ballots should be received by 6 p.m. (Moscow time) on 29 May 2012 at the
latest.
Information (materials) submitted for review to persons entitled to attend the Meeting is
available, starting on 28 April 2012, for review at the Bank's location, 19 Vavilova St., Moscow;
at territorial banks and branches located in regional and republican centers of constituent entities
of the Russian Federation, and at the Bank's website: www.sberbank.ru.
Questions related to the Meeting can be asked by telephone: (495) 505-88-91, (495) 505-8889.
For registration purposes the attending shareholder should produce a passport or any other
personal ID, and a shareholder's representative – a personal ID and documents acknowledging
their powers.
3
The Bank's 2011 Annual Report prepared pursuant to
securities laws of the Russian Federation
4
Approved
by the Supervisory Board
of OJSC Sberbank of Russia
(Minutes #116 dated 13 April 2012)
2011 Annual Report
of OJSC Sberbank of Russia
Prepared pursuant to securities laws
of the Russian Federation
Endorsed by the Audit Committee of
OJSC Sberbank of Russia
5
Contents
1.
Introduction ............................................................................................................................ 8
2.
Position of Sberbank in the Financial Market ........................................................................ 9
Credit ratings ................................................................................................................. 11
3.
Income and Expense Analysis ............................................................................................. 12
4.
Assets and Liabilities Analysis ............................................................................................ 14
5.
Corporate business ............................................................................................................... 15
Lending to Corporate Clients ....................................................................................... 15
Funds Raised from Corporate Clients .......................................................................... 18
Services to Corporate Clients ....................................................................................... 18
6.
Retail Business ..................................................................................................................... 20
Lending to Retail Clients .............................................................................................. 20
Funds Raised from Retail Clients ................................................................................. 24
Services to Retail Clients .............................................................................................. 24
Organization of Retail Services and Sales .................................................................... 27
7.
Operations in Financial Markets .......................................................................................... 28
Operations in the Money Market, Foreign Exchange Market
and Precious Metals Market ............................................................................. 28
Operations in Securities ................................................................................................ 29
8.
Risk Management................................................................................................................. 31
Credit Risk .................................................................................................................... 31
Liquidity Risk ................................................................................................................ 33
Market Risk ................................................................................................................... 34
Legal Risk...................................................................................................................... 35
Strategic Risk ................................................................................................................ 36
Operating Risk .............................................................................................................. 36
Risk of Loss of Business Reputation.............................................................................. 37
9.
Corporate Governance ......................................................................................................... 38
Organizational structure of the Bank............................................................................ 38
Remuneration for members of the Bank’s management bodies .................................... 51
Major transactions ........................................................................................................ 52
Non arm's-length transactions
Share capital ................................................................................................................. 57
Report on payment of declared and accrued dividends ................................................ 58
Code of Corporate Conduct Compliance...................................................................... 59
10.
Branch network .................................................................................................................... 61
Branch network in the Russian Federation .................................................................. 61
Development of the bank network and subsidiaries abroad ......................................... 62
11.
Human Resources................................................................................................................. 65
12.
Operational Bank functions.................................................................................................. 67
13.
Selected bank projects .......................................................................................................... 68
14.
Energy resources used by the Bank ..................................................................................... 70
6
15.
Development prospects ........................................................................................................ 71
7
1.
Introduction
This Report is a report of the Supervisory Board of OJSC Sberbank of Russia1 on the 2011
results of the Bank's development in priority lines of business.
Priority lines of business of the Bank:
 Corporate business: maintenance of settlement and current accounts, deposits, all types
of finance, bank guarantees, support of clients' export and import transactions,
collection, cash services, conversion services, money transfers made by retail clients to
legal entities, transactions in promissory notes etc.
 Retail business: banking services provided to retail clients such as deposits, lending,
maintenance of bank cards, transactions in precious metals, transactions in deposit
certificates and promissory notes, purchase and sale of foreign currencies, money
transfers, payments, safe custody of valuables etc.
 Operations in financial markets: transactions in securities, derivatives, funds placed and
raised in the interbank market, funds raised in capital markets, foreign currency
transactions etc.
In addition to banking transactions, the Bank performs transactions such as granting surety
for third parties, acquiring claims from third parties, carrying out trust management of cash,
professional activities in the securities market, including broking, dealing and depositary
activities.
The Report has been prepared pursuant to securities laws of the Russian Federation,
including:

the applicable version of the Regulation on Additional Requirements to Preparation,
Calling and Conduct of the General Shareholders’ Meeting approved by Resolution
#17/ps of the Federal Commission for the Securities Market of Russia dated 31 May
2002;
 the applicable version of the Regulation on Disclosure by Issuers of Issued Securities
approved by Order #11-46/pz-n of the Federal Service for Financial Markets dated
4 October 2011.
The Report has been prepared on the basis of disclosure reporting forms (Russian
Accounting Standards, unconsolidated data) and the Bank's internal forms of statistical reporting.
Events that occurred after the reporting date of 1 January 2012 and 1 January 2011 have been
accounted for.
1
Hereinafter Sberbank of Russia, Sberbank, the Bank.
8
2.
Position of Sberbank in the Financial Market
The Russian economy developed in 2011 against the backdrop of ambiguous foreign
economic conditions. Global trends in international financial markets were primarily related to
low or negative growth rates in developed countries the economy of which is characterized by a
significant degree of foreign and domestic debt. In the US, these problems manifested
themselves in a slow recovery of the economy in the context of political controversies. Europe
suffered from an intensifying debt crisis. As a result, the volatility of the Russian stock and forex
markets spiked. In particular, in the second half of the year the ruble depreciated from 28.1
RUB/USD in July to 32.2 RUB/USD by year's end in the context of a worsening financial crisis
in the Eurozone.
The Russian economy continued its recovery growth. In 2011 GDP was up by 4.3 %. It
was mainly boosted by consumer spending and restoration of enterprises' stocks. In general, the
2011 growth was based on domestic demand, both in the consumer and investment segments.
Foreign demand fell significantly in conditions of global instability, causing deterioration in
export-oriented sectors of the Russian economy. Growth slowed down in the extractive industry;
growth in the processing industry failed to regain pre-crisis levels.
Real income of the population barely increased in 2011. That said, retail trade turnover
grew 7.2 % as a result of realization of deferred demand, growth in consumer lending and a
lower rate of savings. This had an impact, among other things, on the dynamics of retail services
of Russian banks:
 The growth rate in deposits of retail clients (21 %) slowed down in the banking sector
as compared to previous year (31 %). The deposit growth rate in Sberbank was 18 %,
below the average market figure. As a result, the Bank's share in this segment fell from
47.9 % to 46.6 %.
 Banks were actively developing retail lending. Loans granted to retail clients added
more than a third during the year (36 %). In this respect, Sberbank demonstrated growth
in this area comparable to the market and managed to maintain its market share at 32 %.
Russian banks were actively collaborating with Russian companies and enterprises with
26 % more funds raised from and 27 % more loans granted to them. Sberbank also successfully
cooperated with corporate clients, especially in terms of lending, where the Bank managed to
enhance its market presence from 31.3 % to 32.9 %.
In general, development of the Russian banking system in 2011 was distinctively marked
by the fact that lending growth rates were higher than client deposit growth rates. This applied
additional pressure on the liquidity of the banking system in the second half of the year. The first
half of the year was characterized by excessive bank liquidity. In order to reduce it and dampen
down inflationary pressure on the economy, the Bank of Russia starting taking measures in
February 2011 intended to tighten monetary and lending policy: banks' reserve requirements
were raised three times during the year, the refinancing rate was increased twice, and the deposit
rate of the Bank of Russia was increased four times. The interbank market's liquidity sharply fell
in Q3 in the context of global instability and difficulty that Russian borrowers faced in raising
foreign finance. Interbank interest rates significantly grew with MosPrime rates for overnight
loans rising from 2.9 % early that year to 6.5 % in December. The Bank of Russia sharply
increased amounts available for REPO transactions, and the Ministry of Finance made deposits
in banks in order to maintain low lending rates in the productive sector.
Clients' funds remained the main source of funding for Sberbank. Nevertheless, like in the
banking system overall, their growth rates lagged behind lending rates. In this respect, Sberbank
took measures to raise an additional amount of liquid funds. Sberbank obtained additional ruble
liquidity by attracting funds from the Bank of Russia through direct REPO transactions, having
9
the Bank of Russia grant secured loans2 and reducing investments in the Bank of Russia's bonds
(their share in the Bank's portfolio decreased by over 430 bn. rubles during the year). Additional
liquidity in foreign currency resulted from issuing a bonded debt and obtaining a syndicated
loan, and through trade finance operations.
Positive sentiment prevailed in Q1 2011 in the Russian stock market. Nevertheless,
subsequent events such as an escalating lack of confidence in further growth of the global
economy and the continuing crisis of trust in the Eurozone caused global stock markets to
plummet twice, in August and September. Ultimately, the MICEX index was 17 % below early
2011 levels by year's end. Sberbank's 3market capitalization also fell from 76.1 to 54.8 bn. US
dollars though the Bank remained in the world’s Top 20 banks in terms of market capitalization.
The quality of loan portfolios of banks continued improving in 2011. During the year, the
share of overdue debt on loans granted to legal entities and retail clients in the banking sector
decreased from 5.5% to 4.6%.
Sberbank was also particularly focused on the quality of its portfolio. It continued
operations as part of business processes launched back in 2010 to recover troubled debt.
Systemic collaboration with large, medium, small and micro business on troubled debt helped to
reduce legal entities' overdue debt by 33 bn. rubles. Overdue debt of retail clients added 2.3 bn.
rubles during the year which, however, is insignificant as compared to the total portfolio worth
1,777 bn. rubles. The fixed-term loan portfolio was growing fast. All measures taken together
allowed the Bank to reduce the share of overdue debt on client loans from 5.0 % to 3.4 % and
improve the quality of the loan portfolio compared with the aggregate portfolio of the banking
system.
In 2011 Sberbank restored reserves for a number of loans as part of planned arrangements
with troubled assets. As a result, expenses incurred in creating reserves significantly fell by
year's end even though the Bank continued creating reserves for new loans. This had a positive
impact on the growth of earnings which hit a new record and reached 46.5 % of the total
earnings of the country's banking system4.
2
3
4
Regulation # 312-P on the Bank of Russia's Procedure of Granting Loans Secured by Assets or Surety to
Lending Institutions dated 12 November 2007
According to FT Global 500
Share in the earnings of the banking system before income tax with no events following the reporting date taken
into account. Source – Review of the Banking Sector of the Russian Federation (online version) #113, March 2012
10
Sberbank's share in different segments of the financial market.
Assets
Equity
Loans to corporate clients
Loans to retail clients
Funds from corporate clients
Funds from retail clients
Earnings before income tax
2011
26.8%
29.1%
32.9%
32.0%
14.5%
46.6%
46.5%
2010
27.3%
26.4%
31.3%
31.9%
15.9%5
47.9%
39.2%
Credit ratings
Long-term rating in a foreign currency:
Sberbank
Russian Federation
Rating of international liabilities
Loan participation notes issued as part of Sberbank's
Financial and Logistic Support program
RF Eurobonds
1 January 2012
Fitch
Ratings
Moody’s
1 January 2011
Fitch
Ratings
Moody’s
BBB
BBB
Baa1
Baa1
BBB
BBB
Baa1
Baa1
BBB
A3
BBB
A3
BBB
Baa1
BBB
Baa1
On 8 April 2011, Fitch Ratings upgraded Sberbank's individual rating from C/D to C and
later, on 25 January 2012, discontinued these ratings for all financial institutions by replacing
them with the Sustainability Rating. Sberbank was awarded the Sustainability Rating of bbb.
This rating describes the Bank's creditworthiness without external support.
Sberbank also ranked:
 ninth among the safest banks in Central and Eastern Europe published by Global
Finance. The rating took long-term credit ratings from Moody’s, Standard & Poor’s and
Fitch, and total assets of banks into account.
 fortieth in the rating of the largest global banks by Tier 1 capital and twenty-third in the
rating of most profitable banks of the world by The Banker.
5
The 2010 figure adjusted for changes made in 2011: funds in precious metals excluded
11
3.
Income and Expense Analysis
Aggregate Profit and Loss Statement6:
mln rubles
Net interest income
Total interest income
Total interest expense
Change in reserves
Net income generated by securities transactions
Net income generated by foreign currency transactions
Net fee income
Other operating income
Operating costs
Earnings before tax
Assessed (paid) taxes
Earnings after tax
2011
575,826
837,888
(262,062)
11,240
7,388
9,036
125,576
17,204
(337,368)
408,902
(98,407)
310,495
2010
502,833
796,993
(294,160)
(86,869)
16,554
1,592
111,942
14,871
(318,720)
242,203
(68,225)
173,979
Growth, %
14.5%
5.1%
(10.9%)
(55.4%)
467.5%
12.2%
15.7%
5.9%
68.8%
44.2%
78.5%
The Bank increased its net interest income by 14.5 % to 575.8 bn. rubles due to a growth
in interest income and a reduction in interest expenses.

Interest income7 added 5.1 % with a growth in income generated by client loans and
reached 837.9 bn. rubles. The structure of interest income generated:





489.0 bn. rubles – interest income generated by loans to legal entities (a 0.7 %
growth in the context of a 34.1 % loan growth);
215.5 bn. rubles – interest income generated by loans to retail clients (a 20.9 %
growth in the context of a 36.6 % loan growth);
100.4 bn. rubles – interest income generated by investments in securities;
32.9 bn. rubles – income from the sale of insurance products8, income from
previous years, fines, penalties9, income generated by depositing funds in banks.
Interest expenses declined by 10.9 %, mainly due to expenses related to funds of retail
clients, and amounted to 262.1 bn. rubles, including:




187.5 bn. rubles – interest expenses related to funds from retail clients (a 12.1 %
reduction in the total cost of deposits with their total number growing by 17.8 %);
43.1 bn. rubles – interest expenses related to funds from legal entities;
28.3 bn. rubles – interest expenses related to funds raised from other banks;
3.2 bn. rubles – interest expenses related to issued debentures.
Net income generated by securities transactions10 fell 55.4% to 7.4 bn. rubles. Largest
income was generated by stocks and corporate bonds.
6
7
8
9
10
Hereinafter, figures represented in tables may differ from estimates as a result of rounded data
Pursuant to Directive #2332-U of the Bank of Russia On the List, Form and Procedure of Preparation and
Submission of Reporting Forms by Lending Institutions to the Central Bank of the Russian Federation dated 12
November 2009, interest income includes loan interest, fee income generated by lending operations, interest
income of previous years, fines and penalties
Sberbank does not act as the insurer during the sale of insurance products
Generated as part of planned arrangements with troubled assets
This figure includes net income generated by transactions in securities valued at fair value through a profit or
loss and available for sale and kept till redemption (Line 6, Line 7 and Line 8, Form 0409807)
12
Net income on foreign currency transactions11 increased from 1.6 bn. rubles to 9.0 bn.
rubles. The difference in income amounts results, to a large degree, from net income on
conversion operations that include the financial result for fixed-term transactions (currency
SWAP transactions).12 Currency SWAP transactions were made by the Bank to maintain
liquidity in different foreign currencies required to conduct business.
Net fee income rose 12.2 % to 125.6 bn. rubles. Growth was based on fee income
generated by transactions with bank cards, acquiring, bank guarantees, salary projects, cash and
settlement operations. Fee income related to budget funds, maintenance of accounts and
securities transactions fell.
In 2011 the Bank generated income from release of provisions13 in the amount of 11.2 bn.
rubles, while in 2010 the Bank's expenses incurred in creating reserves amounted to 86.9 bn.
rubles. Dynamics of reserves is based mainly on loan reserves: income from release of
provisions in 2011, as part of planned arrangements with troubled assets, amounted to 16.4 bn.
rubles as compared to expenses of 80.6 bn. rubles in 2010. The Bank also continued to create
reserves for newly issued loans.
Operating costs of the Bank grew 5.9 % to 337.4 bn. rubles. Growth of operating costs was
mostly affected by a scheduled growth of the cost of maintaining personnel; administrative and
business expenses that accompany development of a business; charges transferred to the Fund of
Deposits’ Mandatory Insurance and increased as a result of larger deposits. Growth of operating
costs was checked by lower expenses in 2011 related to assignment of own claims.
In 2011 Sberbank produced a financial result that exceeded results of the previous year:


Earnings before tax amounted to 408.9 bn. rubles (in 2010: 242.2 bn. rubles)
Earnings after tax amounted to 310.5 bn. rubles (in 2010: bn. rubles).
Sberbank's performance indicators in 2011 also improved noticeably:


11
12
13
return on equity was 26.2% (18.4% in 2010).
return on assets was 3.4% (2.3% in 2010).
This figure includes net income on foreign currency transactions and net income on foreign currency revaluation
(Line 9 and Line 10, Form 0409807)
Subject to Russian Accounting Standards that applied in 2011, the financial result of currency SWAP
transactions was significantly dispersed in time, and net income on conversion operations was affected by the
cash side of transactions not closed by the reporting date. Derivatives (including currency SWAP transactions)
accounting was modified by Russian legislation, effective as of 1 January 2012.
This figure includes the change in the reserves for possible losses on loans, securities and other losses (line 4,
line 14, line 15 and line 16 of form 0409807)
13
4.
Assets and Liabilities Analysis
Aggregate balance sheet:
Cash
Funds in the RF Central Bank
Funds in lending institutions
Net investments in securities
Net loans receivable
Fixed assets, stocks
Other assets
Total assets
1 January 2012
balance
mln rubles
share, %
492,881
4.7%
151,197
1.4%
38,444
0.4%
1,580,627
15.2%
7,658,871
73.5%
370,948
3.6%
126,452
1.2%
10,419,419
100.0%
1 January 2011
balance
mln rubles
share, %
322,303
3.8%
128,925
1.5%
61,888
0.7%
1,851,423
21.7%
5,714,301
67.0%
317,379
3.7%
127,028
1.6%
8,523,247
100.0%
change, %
52.9%
17.3%
-37.9%
-14.6%
34.0%
16.9%
-0.5%
22.2%
Funds from the RF Central Bank
Funds from lending institutions
Funds from clients
Issued debentures
Other liabilities
Reserves for other losses
Sources of own funds
Total liabilities
565,388
477,467
7,877,198
87,223
84,730
26,771
1,300,642
10,419,419
300,000
291,094
6,666,978
111,983
76,992
26,313
1,049,887
8,523,247
88.5%
64.0%
18.2%
-22.1%
10.1%
1.7%
23.9%
22.2%
5.4%
4.6%
75.6%
0.8%
0.8%
0.3%
12.5%
100.0%
3.5%
3.4%
78.2%
1.3%
1.0%
0.3%
12.3%
100.0%
Assets of the Bank added 22.2% in 2011, or almost 2 trillion rubles to reach 10.4 trillion
rubles. Such growth was based on loans to clients14 that added 2 trillion rubles by year's end.

The corporate sector was granted more than 5.5 trillion rubles in 2011. The credit
portfolio of corporate clients increased by 34.1% during the year to reach 6.4 trillion
rubles.
 Retail clients were given 1.2 trillion rubles during the reporting year. The retail loan
portfolio added 36.6% during the year to reach 1.8 trillion rubles. During the year, the
portfolio grew steadily in all regions of the country.
By year's end, net investments in securities lost 14.6% as a result of redemption of the
Bank of Russia's bonds.
Customer deposits traditionally remain the main source of funding for the Bank's
operations. By year's end, their volume increased by 1.2 trillion rubles or 18.2%, and amounted
to 7.9 trillion rubles. Deposits from retail clients exceeded 5.5 trillion rubles, funds from legal
entities amounted to 2.2 trillion rubles, client funds on precious metal accounts reached 115
billion rubles.
Calculated pursuant to Regulation #215-P of the Bank of Russia, the Bank's capital grew
22.1% in 201115. Net earnings produced by the Bank represent the source of its capital’s growth.
Capital adequacy was 15.0% as of 1 January 2012.
14
15
Hereinafter, Loan portfolios of legal entities and retail clients are shown before provisions are made
Regulation #215-P on the Methodology of Determination of Own Funds (Capital) of Lending Institutions
approved by the Bank of Russia on 10 February 2003
14
5.
Corporate business
Lending to Corporate Clients
In 2011 Sberbank remained the key provider of financial resources to the Russian
economy. The Bank accounts for about a third of the entire loan portfolio of the banking system.
Playing such a significant role in lending to the economy, the Bank consistently develops this
crucial area and increases lending volumes.
In 2011 Sberbank granted corporate clients loans totaling over 5.5 trillion rubles. This
exceeds last year's figure by 28%. The portfolio of loans to legal entities added 34.1% during the
year and reached 6.4 trillion rubles. Over a half of the portfolio is represented by territorial banks
operating in all regions of the country.
Structure of the Loan Portfolio
Traditionally, a large part of loans to corporate clients was granted in rubles, and their
share in the loan portfolio was 78.2% as of 1 January 2012. Ruble loans for a term of 1 to 3 years
as finance of current operations or refinance of previous liabilities invariably remain in greatest
demand. Loans for a term of over 5 years are also in high demand.
Structure of the loan portfolio by the credit period
%
under one year
1-3 years
3-5 years
over 5 years
Total
rubles
1 January 2012
15.7
34.8
15.5
34.0
100.0
1 January 2011
19.8
32.6
20.8
26.8
100.0
rubles
1 January 2012
14.2
14.5
16.1
55.2
100.0
1 January 2011
6.8
14.7
40.1
38.4
100.0
Segmentation in the Corporate Business
The Bank is expanding its lending and financial operations for all groups of corporate
clients by collaborating both with flagships of Russian business and the segment of micro and
small businesses. Priority is given to companies with a positive credit history whose main
turnover passes through Sberbank's accounts.
Structure of the Bank's loan portfolio by client segments
Large corporate clients16
Medium business
Small business17
Executive authorities
Total
16
17
1 January 2012
balance,
bn rubles
3,715
1,751
656
267
6,389
share in the
portfolio, %
58.1
27.4
10.3
4.2
100.0
1 January 2011
balance,
bn rubles
2,471
1,613
529
153
4,766
share in the
portfolio, %
51.9
33.8
11.1
3.2
100.0
Major clients: borrowers/groups of related borrowers exposed to the maximum Loan risk (Standard N6,
Instruction #110-I of the Bank of Russia On Reserve Requirements to Banks dated 16 January 2004)
Loan portfolio of small businesses based on the classification of Federal Law #209-FZ On the Development of
Small and Medium Business in the Russian Federation dated 24 July 2007
15
In 2011 Sberbank allocated a priority program for promotion of business with the large and
medium segment companies with annual revenues of 0.4 to 15 bn. rubles. The Bank created an
institute of client managers responsible for collaboration with such clients, finalized product and
service offerings and introduced upgraded products for overdraft, turnover lending, trade and
export finance, cash and settlement services. First steps were made to integrate investment
banking products in the process of collaboration with large clients.
Sberbank is actively developing the automated Corporate CRM system, the only hi-tech
system that involves an automated lending process for largest, large and medium business. Its
future releases will include functionality for small and micro business and troubled assets. This
project was internationally recognized after it won the Bronze Prize for Project Excellence in
Big-Sized Projects during the IPMA Award 2011 International Congress. Sberbank was the only
bank that made it to the finals of this prestigious international contest. In addition, the project
was recognized for Best use of IT in Wholesale/Transaction Banking by British magazine
Banking Technology.
Lending to Major Clients
In 2011, the portfolio of loans to major corporate clients grew 1.5 times and exceeded 3.7
trillion rubles. Largest amounts of credit resources were granted to the largest corporate clients
operating in different sectors of the national economy. Funds were provided to finance current
operations, replenish working capital, fund investment programs involving upgrades in
manufacture, mergers and acquisitions, restructuring of debt, leasing and for other purposes.
Sberbank arranged the issue of bonds to fund construction of a motorway within its partnership
effort on a critical infrastructure project of federal magnitude.
Operations with Small Businesses
Collaboration with small businesses is among top priorities of the Bank's operations. By
end of 2011, the portfolio of loans granted to small businesses exceeded 650 bn. rubles and the
number of clients topped 100,000.
In 2011, the Bank approved the Concept of Development of Small Business to 2014. It
defines a comprehensive service package to be provided to companies within this segment,
support on each stage of development, the role of the locomotive that the Bank should play in
creating small business in Russia and winning a leading position in this market. Relationships
with small business clients are pursued in several directions.
The loan granting process is shifting to a new technological track. The Loan Factory
technology was implemented in all territorial banks to grant unsecured loans to small businesses
based on a scoring model of assessment of creditworthiness. Loans are granted within 3 days.
Based on this technology, over 48,000 loans were granted in 2011, totaling 32.3 bn. rubles.
The Bank started implementing another lending technology aimed at small businesses – the
Loan Conveyor. It allows granting loans on flexible terms to all categories of small business
borrowers in 5 business days. About 300 loans worth over 1 bn. rubles were granted as part of
the first stage.
The second direction of promoting relationships with small businesses involves
development of new products. Testing of an innovation credit product, Business Start, was
launched in 30 largest cities for beginning entrepreneurs who now can obtain finance of up to
70% of the new startup. The first stage involves lending of franchised businesses. Later, there are
plans to offer clients over 100 ready-made solutions for them to start a business independently.
16
The Bank designed another credit product, Business Project, offered for expansion and
modernization of an existing business and opening of new areas for the borrower's operations.
Future revenues to be generated by the funded project are taken into account when estimating the
loan amount. In 2012 three territorial banks started testing this product.
The third critical direction for operations with small businesses involves changing
conditions of existing programs based on market needs. In 2011, the maximum loan amount was
increased to 2 mln. rubles under the unsecured loan program, the credit term was extended to 3
years; the credit term was increased to 7 years for agricultural producers planning to procure
fixed assets; the borrower's installment for purchases of certain categories of vehicles was
decreased from 20% to 10% under the Business Car program.
In 2011, a number of projects aiming to expand significantly cooperation with small
businesses were developed. The Bank is creating specialized Business Development Centers and
moves from simple services offered to small businesses to the sale of services and the
development of business itself. The Office Format Overhaul program will allow creating, as
early as in 2012, a network of such centers that offer services at each stage of the life cycle of a
small business, from testing of entrepreneurial abilities, training, registration of the business to
financing, legal and accounting support.
The Business Environment program is implemented to support small business:
Sberbank's School of Business – training the wider audience which involves testing the
entrepreneurial abilities of school graduates and students. For this purpose, a
collaboration framework is established with schools and leading Russian colleges and
universities.
 SberStore – offering small businesses online services that help to minimize the cost of
supporting processes and solve top-priority business objectives. Trial operation begins
in July 2012.
 Social Network – making sure that business representatives have a trusted space for
establishing business contacts, organizing business communities where the Bank acts as
regulator and arbiter. Trial operation begins in July 2012.
 Client Cabinet – a personal channel for interaction between the client and the Bank
which allows clients and client managers to exchange news and hold meetings without
leaving their workplace.

To generate a synergetic effect during implementation of the small business development
strategy, the Bank started systematic cooperation with such associations of businesspeople on the
federal and regional levels as the Chamber of Commerce and Industry, OPORA ROSSII, the
Association of Young Businesspeople and others.
OPORA ROSSII, the largest Russian association of small and medium business, became
the Bank's strategic partner in 2011. This partnership developed mobile solutions for small
businesses – nonstationary platforms and Novator, a mobile center for business development –
represented during the 10th International Investment Forum Sochi-2011 and the All-Russian
Youth Innovation Forum Seliger-2011. The projects aroused huge interest among representatives
of authorities and businesspeople, especially in young circles.
Implementation of a long-term project, Young Business for the Olympics, was started.
There are plans to set up over 2,000 small companies in tourism and recreation in Sochi by 2014.
The Bank will grant loans to businesspeople selected during the tender and starting a business
based on well-estimated ready-made business solutions (mini restaurants, mobile consumer
service centers, beauty parlors etc.) developed in conjunction with OPORA DRUZHBY. An
entrepreneur camp will be created to house educational events and develop new ready-made
business solutions. There are plans to popularize Sochi's experience in other regions with a
tourist potential such as Baikal, Seliger, and Valdai.
17
Funds Raised from Corporate Clients
Raising funds from corporate clients are among the Bank's major business areas. The
average daily balance of funds raised from corporate clients in 2011 grew 5.7% to 1,871 bn.
rubles.
The better part of the year, the Bank maintained a sufficient margin of liquidity and,
therefore, was able to pursue a pricing policy for funds raised from legal entities that was
conservative, as compared to its competition. As a result, Sberbank's share in the market of legal
entities' funds fell from 15.9% to 14.5% during the year.
Funds in settlement accounts (54%) and deposits (37%) prevail in the structure of clients'
funds. The share of corporate clients' funds invested in the Bank's promissory notes and
depositary certificates was 3%. Letter of credit and interest payment liabilities account for the
balance of funds.
In 2011 the Bank implemented fixed (public) rates for funds raised from corporate clients
and invested in fixed-term instruments. Clients are offered an opportunity to enter into a deposit
contract or a transaction that raises funds to the minimum balance on Sberbank's website.
Services to Corporate Clients
Cash Management Services
A new product, the Unified Bank Service Agreement, was implemented in 2011. Clients
follow a simplified procedure to execute a bank service agreement for a package of banking
services (currently – 10 services) without having to enter into separate bilateral agreements.
Rules are unified throughout all divisions and available on Sberbank's website.
Centralized reissue of bank accounts is now available to major business clients that
undergo reorganization and merge with other legal entities. The service helps to reduce
significantly the period for reissue of bank accounts of multi-branch companies and boosts client
loyalty.
Products such as One Balance and Overdraft with a common limit were implemented for
multi-branch and holding companies. Individual service offerings include integration with the
holding's accounting system through a unified payment gateway allowing the holding to
centralize cash management services provided to subsidiaries/affiliates. A centralized system,
SberbankCorpor@tion, was implemented as an IT platform for further expansion of the product
range for holdings.
Large-scale effort was made in 2011 to unify rates for corporate clients. This resulted in
unified rates for 90 types of services for legal entities in each constituent entity of the Russian
Federation (separate rates were established in a number of units for centers of such entities and
major economically developed cities). This significantly improved rate manageability throughout
the Bank and had a positive impact on client loyalty.
The modern centralized system of remote services, Sberbank Business Online, was
replicated during the reporting year. Over 260,000 clients, or 60% of the Bank's corporate
clients, joined it by year's end.
Services for Foreign Economic Activities and Foreign Currency Controls
In 2011 the worth of operations facilitated by the Bank under contracts between residents
and non-residents for export/import of goods, performance of work, provision of services and
assignment of results of intellectual activity and under commission contracts between residents
18
as part of foreign trade transactions amounted to 153.7 bn. US dollars, or 9.2% above the 2010
figure. The Bank provided services under and prepared transaction passports for 99,000 foreign
trade contracts of clients. The number of transaction passports fell by 67,000 as compared to
2010 due to legislative amendments that increased the minimum threshold of the contract price
for transactions to be supplied with a transaction passport from 5,000 to 50,000 US dollars.
Trade Finance and Documentary Transactions
The amount of the Bank's trade finance and documentary business in 2011 reached over
1 trillion rubles allowing Sberbank confidently to occupy the position of leader among Russian
banks in this respect.
The worth of the Bank's documentary business18 in 2011 was in excess of an equivalent of
900 bn. rubles. The worth of domestic Russian letters of credit was 1.5 times that of the previous
year and reached over 37.4 bn. rubles.
Within trade finance, over 950 transactions totaling about 176 bn. rubles, or 1.5 times that
of the 2010 amount, were made using a variety of instruments. In particular, the Bank made 46
transactions within bilateral agreements with foreign banks to raise funds exceeding an
equivalent of 114 bn. rubles. Largest creditors under trade finance transactions included Bank of
America Merrill Lynch, Bank of New York Mellon, Citibank, Commerzbank, Mizuho Corporate
Bank and The Royal Bank of Scotland.
In trade finance Sberbank developed the following types of transactions: post-import
finance, finance covered by export credit agencies, related finance, L/C operations, issue of
reimbursement liabilities and the grant of guarantees as instructed by Russian banks and banks
from CIS countries, and other transactions.
The Bank made a landmark transaction in 2011 with Acron Group to establish a total limit
for 8 years for transactions of trade finance for procurement of import equipment within the
Group's investment program. It was for the first time that the client was offered an end-to-end
complex structured product that included practically the entire range of instruments of trade and
export finance.
Cash Collection Service
As of 1 January 2012, 462 cash collection divisions provided services to legal entities,
retail clients and commercial banks, and carried out transportation within Sberbank's system. The
number of ATMs and other self-service terminals catered for by collectors reached 28,911 units,
the number of clients that received collection services – 37,515, the number of clients to whom
cash was delivered – 8,039. A total of 22.5 trillion rubles worth of cash and valuables was
transported during the reporting year, or 1.2 times that of the 2010 figure.
Sberbank's cash collection office continues implementing modern operation methods that
involve, in particular, the use of special containers and disposable packages. Cash collection and
cash receipt service standards were accepted. Requirements placed on client's items admitted to
cash collection were liberalized, and service time was reduced. Production capacity of cash
collection units is being increased.
18
The worth of documentary business includes import, export, domestic letters of credit, collection, obtained
international guarantees, guarantees against counter guarantees.
19
6.
Retail Business
In December 2011, Sberbank of Russia was given as many as three Retail Finance Awards
by The Retail Finance for achievements in developing the retail finance business in Russia.
Sberbank came first in the Breakthrough of the Year nomination, received a bronze award for the
Best Retail Bank and a special award for the Best Advertising Campaign.
Lending to Retail clients
Dynamics of the Loan Portfolio
In 2011 the Bank granted retail clients over 4.3 mln. loans totaling 1,230 bn. rubles, or 1.7
times that of the previous year's figure. As a result, the retail loan portfolio added 36.6% and
reached 1,777 bn. rubles.
Dynamics of the individual loan portfolio* by products:
Car Loans
Mortgages
Consumer Loans**
Total
* Less assignment contracts
** Including credit cards
1 January 2012
balance,
bn. rubles
82.2
762.2
933.0
1,777.3
share, %
4.6
42.9
52.5
100
1 January 2011
balance,
bn. rubles
79.5
600.0
621.8
1,301.3
share, %
6.1
46.1
47.8
100
Development of the Product Range
New Products
Starting in Q1 2011, the Bank has been offering clients a new range of retail credit
products. Its introduction implemented a client-oriented basic offer that includes different terms
for different client segments. The following client segments have been singled out: employees of
the Bank and its subsidiaries; employees of enterprises involved in salary projects; employees of
enterprises that have been accredited; retail clients outside the foregoing three categories. If the
borrower has a “good” credit history, a discount may apply to the interest rate.
The product range was changed overall. In particular, 2 unified credit products were
introduced instead of previous personal consumption loans: an Unsecured Consumer Credit and
a Consumer Credit secured by an individual's surety. 2 basic programs were introduced for car
loans – the purchase of new and used vehicles.
Mortgage Lending
The Bank started lending to retail clients under the Vneshekonombank's program,
“Government-Supported Mortgage” where loans are granted for the purchase of newly built
properties.
The Construction Savings Bank program was implemented in the territory of the SouthWestern Bank. Its members include the Kuban Center of Government Support to the Population
and Development of the Financial Market and retail clients recognized as beneficiaries of social
payments. The program is designed to engage low-income retail clients with a lack of funds for
credited purchase of properties within standard lending programs in targeted savings for further
mortgage lending at a preferential interest rate. About 1,500 Kuban residents became members
of the program.
20
Sales of a new residential product, Military Mortgage, for Purchase of Finished Property
started in December 2011 at six territorial banks. Loans are granted to servicemen members of
the Savings and Mortgage System for Provision of Housing to military personnel. A decision on
promoting the product throughout the country will be made after a pilot project in the second
half of 2012.
Special lending terms were made effective for the most socially meaningful categories –
Mortgage Plus Parent Capital. This program gives young families with two or more children an
opportunity to use parent capital as their first installment towards a loan, in full or in part.
The maximum loan amount was increased under the program for Refinance of Residential
Loans granted by other banks. The Bank also allowed the documenting of another property as
collateral and surety from retail clients for a period before registration of collateral in favor of
the Bank.
Special events were held in the reporting year where the Bank granted over 60,000 loans
totaling 65 bn. rubles:
“the Bull's Eye” promotion started in July 2010 with the following conditions: a rate of
10% p.a., an initial installment of 10%, and a credit period of 10 years. Loans were
granted for the purchase of properties that were/had been built by Sberbank's clients
using its loan proceeds;
 the “Take for 8” promotion on such conditions: a ruble rate of 8% p.a., a credit term of
up to 8 years, and a credit decision made within 8 days.

Car Loans
From 2011 it is possible to submit credit applications to Sberbank's automated systems
directly from a car showroom. This has improved the quality of service by reducing the time
needed to make a credit decision and the printing of loan documents at point of sale.
In addition, the Bank:

lifted the requirement for a written consent from the borrower's spouse to have the
credited car pledged;
 offered borrowers an opportunity to add the payment for membership in the collective
voluntary life and health insurance program to the car loan amount;
 allowed its clients, from February 2012, to have a loan granted on the basis of two
documents.
In the reporting year, Sberbank offered car loans at lower rates within a special promotion,
“Low Interest for High Speed” that helped overcome the falling trend of the car loan portfolio.
About 73,000 loans worth 29 bn. rubles were granted during the promotion.
Consumer Loans
To develop programs with individual offerings for a specific client, the Bank is
implementing a pricing system based on risk levels. The client's reliability and solvency affect
the cost of credit – this is the principle applied to the granting of consumer loans.
The Bank singled out two new borrower categories in the reporting year, which are offered
individual credit terms:
the Youth segment – borrowers aged 18-20 with fewer than four months’ work
experience. The loan is granted with surety from their parents;
 borrowers whose pension income is transferred to Sberbank's accounts.

The Bank continued liberalizing conditions for consumer loans by:

doubling the maximum amount of unsecured consumer loans and consumer loans with
21
surety from retail clients;
 increasing the borrower's maximum age limit to 65 years for unsecured consumer loans;
 starting a pilot project to liberalize requirements pertaining to the client's domicile.
In 2011, the Bank carried out a federal campaign to boost loan sales to the Bank's existing
clients. Individual offers were sent to 30 mln members of salary projects, borrowers with a good
credit history, and depositors.
Government-Subsidized Educational Loans
The Bank continued participating in the Government Support of Educational Loans
Experiment. Based on its 2011 experience, the Bank modified the loan program by:





simplifying the form of certificate from the university on the borrower's academic
progress;
adopting a unified approach to using and repaying the loan;
optimizing collaboration with universities in terms of provision of details of students'
loan requests;
revising the procedure and criteria of selection of state-accredited educational
establishments;
revising criteria of students' good progress.
Overall, the educational loan portfolio added 19.5% during the year and reached 377.5
mln. rubles.
Lending of the Agro-industrial Complex
Sberbank continued actively participating in the implementation of the state program for
development of the agro-industrial complex. In 2011, the Bank granted small farmers over
57,000 loans worth 10.1 bn. rubles. The portfolio of such loans increased to 16.0 bn. rubles, and
their number in the Bank's portfolio exceeded 160,000. In 2011, to boost its competitive
advantage for loans granted to small farms, the Bank:

gave borrowers an opportunity to obtain loans worth up to 1 mln. rubles on an annual
basis (the total loan payable used to be limited to 1 mln. rubles);
 extended the term for submission of a report on intended use of loan proceeds from 45
to 90 days;
 allowed providing the Bank with a simple written power of attorney to deliver
documents to authorities that pay out subsidies.
Retail Loans for VIP Clients
The Premium range of loans granted to significant retail clients was upgraded within the
segment of lending to VIP clients. In particular, the Bank introduced a new loan, Premium
Corporate, which can be granted without analysis of the borrower's solvency. The surety of a
legal entity which is the Bank's client and in which the borrower serves as a top manager or
holds a stake is executed as security.
22
Optimization of the Credit Process
In 2011, in order to optimize the credit process, the Bank:


shortened the period for notifying clients of its decision with SMS messages;
simplified the procedure for certification by credit staff of copies of documents
submitted by the borrower and the procedure for delivery of credit documentation to
borrowers;
 simplified acknowledgement of client's incomes—a statement can be submitted based
on the Bank's own form;
 allowed borrowers to repay their loans from an account different from the account loan
proceeds were transferred to;
 allowed early repayment of loans in any amount and in any period of loan utilization on
the date of the scheduled payment under the loan.
In addition, in the territory of Moscow Bank and in OPERU [Operations Department] of
Sberbank:

automated the transfer of loan proceeds to the account of the client's debit card and to
target beneficiaries;
 implemented a feature for executing additional orders for the debiting of funds towards
loan repayment. This decreased the rate of technical overdue debt and the load on
divisions dealing with overdue debt;
 moved lending operations to remote channels.
The technology used by the Bank's employees operating at the site of borrowers' employers
to formalize consumer loans was also adjusted in the reporting year. As a result, this saves time
both for the client (the Bank's office is visited only once) and the Bank (requests are entered into
the system directly from the companies' own facilities).
Currently, consumer loans, car loans and main housing lending programs are based on the
centralized Loan Factory technology, designed to improve performance of lending operations
and the quality of service with an invariably high portfolio quality. In 2011, the following results
were achieved in the development of this technology:



all territorial banks were finally connected to the Loan Factory technology;
the average request consideration period fell from 35 hours in 2010 to 29 hours in 2011;
requests from clients whose salaries are credited to accounts in Sberbank are considered
in 2 hours. One only needs to produce their passport and indicate the salary account
number to have a loan granted;
 lending limit is calculated with a view to estimated income of the borrower;
 subsidiaries started implementation of a similar lending technology for retail clients.
As part of the Loan Factory, 6.4 mln. requests were received in 2011(3.0 mln requests in
2010) and 4 mln. loans worth about 690 bn. rubles were granted (in 2010: 2 mln. loans worth
about 290 bn. rubles) or 56% of all loans granted by the Bank to retail clients in 2011.
During Innovation in Banking Technology Awards 2011, The Banker recognized the Loan
Factory project as highly rated in the Innovation in Risk Management Technology category. The
project was also recognized as the largest project submitted to the competition.
There are plans to move new products to the Loan Factory technology, including Express
Loans, Car Loan Based on 2 Documents, special mortgage lending programs, educational loans,
loans to small farmers etc.
23
Funds raised from retail clients
Raising private funds and their safekeeping is the basis of the Bank's business;
development of mutually beneficial relations with depositors is the key to its success. As of 1
January 2012, Sberbank accounts for 46.6% of all savings kept by retail clients in Russian banks.
In 2011, the amount of deposits in Sberbank grew 17.8% to 5,523 bn. rubles. 57% and
43% of the influx of client funds resulted from funds in fixed-term deposits and funds in call
deposits, respectively. The share of highest-yield deposits that do not allow adding or
withdrawing funds grew in the structure of fixed-term deposits:
%
No adding or withdrawing
Adding allowed
Adding and withdrawing allowed
Total fixed-term deposits
1 January 2012
46.7
33.1
20.2
100.0
1 January 2011
35.5
41.6
22.9
100.0
A sustainable influx of client funds was facilitated by seasonal promotional deposits such
as Summer Offer – High-Yield; Anniversary – 170 Years; Special Offer – Maximum; and
Special Offer – Managed.
To boost retainability of existing funds and attract new deposits, new deposits were
introduced in late 2011 with a higher interest rate. They could only be opened through Sberbank
Online: Save Online, Top up Online, and Manage Online.
The International deposit was also introduced to attract new clients. It could be opened in
British pounds sterling, Swiss francs and Japanese yen. The deposit offers not only a guaranteed
interest income, but also an additional income generated by foreign currency fluctuations.
In 2011, the balance of funds in unallocated bullion accounts increased by over 40% to an
equivalent of 115 bn. rubles. The clients' interest in unallocated bullion accounts rose as a result
of a growth in precious metal prices during the first three quarters of the reporting year. In
addition, uncertainty in the stock and forex markets caused by economic problems in Europe and
the US served as an additional stimulus for retail clients to acquire unallocated bullion accounts
in Q3 and Q4.
Services to Retail Clients
Bank Cards
In 2011 Sberbank was actively developing its card business and managed to further break away
from its competition. The Bank offers a wide range of products, designed for all client categories, a
developed infrastructure that accepts cards throughout the country and competitive rates.
thousand
Number of valid cards
including credit cards
Number of ATMs
Number of active trade and service outlets,
engaged in acquiring services
1 January 2012
68,626
4,327
34.5
137.0
1 January 2011
51,390
1,927
27.9
100.2
bn. rubles
Worth of card transactions
Turnover in the acquiring trade network
2011
7,706
516
2010
5,042
309
Sberbank has taken the lead in terms of issued cards, not only in Russia, but throughout
Europe as well. In addition, in 2011 Sberbank headed the Russian market in terms of credit card
debt.
24
In 2011 Sberbank implemented a number of significant projects in its card business by:






issuing Russia's first 3D design cards;
implementing the technology of virtual card products. Cards have no tangible media and
are provided to clients as a bank account. Virtual cards are used by clients for security
reasons when making online transactions;
launching, within cooperation with American Express, first cards of this payment
system – AmEx Black and AmEx Platinum;
offering its clients individually designed cards based on the client's drawing or a gallery
specially created by the Bank and its partners;
offering its clients instant issue debit and credit cards. The technology it has developed
allows a card to be issued within 15 minutes, right at the Bank's office;
issuing cards with a Moscow Metro transport applet for its salary clients in Moscow.
Now Sberbank's clients can use the bank card to enter the Metro.
The Thank You From Sberbank loyalty program started from the 170th anniversary of
Sberbank. It allows customers to save Thank You bonuses when making payments with the
Bank's cards and then exchanging them for discounts in affiliated stores.
Sale of Insurance Products
In 2011 the Bank continued actively promoting its existing insurance programs and
implementing new projects involving the sale of insurance products. During the year:

all Bank's branches introduced the Corporate Insurance program for sole proprietors and
corporate clients;
 the technology of voluntary collective life and health insurance was replicated for
borrowers under housing loans;
 clients gained an opportunity, in all offices of the Bank working with retail clients, to
buy travel insurance, accident and illness insurance and bank card protection against
fraudulent actions.
As a result, the Bank offered its clients the maximum range of insurance programs by the
end of 2011, all implemented together with partner insurance companies:





life and health insurance and accident and illness insurance;
insurance of property pledged under loan contracts;
insurance for foreign and national travel;
bank card protection;
savings and investment life insurance.
In 2011, bank insurance programs maintained by Sberbank were used by over 2.7 mln.
clients, including over 10,000 corporate clients. The voluntary collective life and health
insurance program was in highest demand – about 2.1 mln. clients signed up.
Purchase of all the Bank’s insurance programs is on a voluntary basis. The client's refusal
to join insurance programs offered by the Bank does not entail withdrawal from banking
services. In 2011, the Bank implemented a refund technology for situations when clients
withdraw from the voluntary collective life and health insurance program. Alongside this, the
Bank offers its clients assistance in settling disputed insured events.
Sberbank acquired a life insurance company for the purposes of developing banking insurance.
The company's primary objective will be to develop savings and investment fund life insurance.
In addition to classical insurance products, the Bank offers its retail and corporate clients
mandatory pension insurance contracts. By the end of 2011, the Bank executed over 250,000
such contracts.
25
Settlements
Acceptance of payments from the public remains the most significant service of the Bank
in terms of the volume of operations. Their 2011 volume exceeded 1.8 trillion rubles, with total
number of just short of 1 bn. Accepted payments. This growth in payment volumes is
encouraged by development of billing technologies, the network of self-service devices and
online banking. For example, the share of payments accepted by billing technology was over
74% in the total volume of payments accepted by the Bank.
In 2011 the Bank launched the Auto Payment service that allows, when instructed by the
client, to debit and transfer funds from their bank card account to mobile communications
operators. The user's account is topped-up automatically after the minimum threshold he or she
indicates is reached. The number of users of this service exceeded 1.1 mln. people by the end of
2011.
Despite fierce competition from commercial banks and specialized companies, the Bank is
expanding its presence in the money transfer market. The number of client orders for money
transfers performed in 2011 was about 25 mln. with a total value of over 750 bn. rubles.
The Bank has been actively developing Blitz international instant money transfers, between
divisions of Sberbank of Russia and the branch network of subsidiary banks in Kazakhstan,
Ukraine and Belarus. The number of such transfers exceeded 340,000 during the year. Pursuing
this area of business since December 2010, Sberbank started providing services of instant
international money transfers through one of the largest international transfer systems,
MoneyGram. Such transfers were enabled in over 8,200 divisions of the Bank by the end of
2011. The 2011 total number of client orders for MoneyGram transfers was 150,000, with a total
value of 119 mln. US dollars.
Volumes of bank transfers of the most widespread kind—the transfers of wages, salaries
and pensions to individual accounts—also increased:
Salary Pensions in the RF Ministry
of Public Health and Social Development
Pensions of RF enforcement agencies
2011
credited,
bn. rubles
4,653.3
1,777.0
285.8
of beneficiaries,
mln. people
27.4
18.5
2.1
2010
credited,
bn. rubles
3,561.3
1,507.1
235.4
of beneficiaries,
mln. people
23.9
17.1
2.1
Other Banking Services
Sberbank maintains a program called Coins of the World – Through Sberbank of Russia. In
the reporting year, it sold over 1.2 mln. precious metal coins, 22% more than in 2010. In 2011,
the Bank:

started selling Russian commemorative coins, dedicated to the Olympic Games under an
agreement with the Bank of Russia;
 as a leading operator of the global coin market, took part in implementation of the first
intergovernmental program of Russia and Spain, involving the issue of a joint series of
coins dedicated to cooperation between these two countries.
The 2011 volume of purchase and sale of foreign currency cash was the equivalent of 15.6
bn. US dollars, 16% more than in 2010. Operations of buying and selling foreign currency cash
are made by 9,064 divisions of the Bank.
The number of the Bank's divisions that offer the rent of individual safe deposit boxes
increased by 4.5% during the year to 1,090. They include 18 automated vaults of clients'
valuables with self-service, round-the-clock access to safe deposit boxes. The number of safe
deposit boxes grew by 4.3% to 241,000.
26
Sberbank is a payment agent of a number of non-profit charities involved in the provision
of grants and royalties to retail clients. About 600,000 US dollars were paid out under two
contracts with charitable foundations in 2011.
In 2011 the Bank started selling lottery tickets in support of the Sochi-2014 Olympic and
Paralympic Winter Games under a contract with OOO Sportloto. Tickets worth 1.2 bn. rubles
were sold during the year, with prizes worth 0.5 bn. rubles paid out.
Organization of Retail Services and Sales
The Bank continued developing a fully functional telephone contact center to offer its
clients round-the-clock services by telephone and multi-media channels throughout Russia. In
2011, four sites of the contact center, in Moscow, Voronezh, Yekaterinburg and Saint-Petersburg
were joined by a new site in Volgograd. The total number of jobs at all sites of the contact center
rose from 833 to 1,760.
The need for the contact center’s services is confirmed by the growing number of calls
received on a daily basis, from 57,000 in 2010 to 132,000 in the reporting year. Despite such a
rapid growth in the number of calls, the contact center's performance remains high: two thirds of
incoming calls are answered by the center's staff within 40 seconds.
The Bank has been actively developing remote channels for selling banking products. In
2011, the share of transactions in remote channels increased from 57% to 71%. In 2011, the Bank:

significantly expanded the network of self-service devices, by increasing the number of
ATMs from 28,000 to 34,500, and payment terminals from 16,400 to 21,500;
 increasing the number of active users of the Mobile Bank by a factor of 3.8, to 5.3 mln.
people, and of Sberbank Online – by a factor of 3.4, to 2.4 mln. clients.
Sberbank has set aside a separate line of business – operations with wealthy clients. Its
employees offer such clients individual end-to-end banking services and financial consultations
on a high professional level. By the end of 2011, the Bank provided services to VIP clients in 98
cities in 143 offices, including 15 offices under the new sub-brand of SBERBANK1. These
offices not only provide a better level of service and additional confidentiality during business
negotiations, but also offer a wide range of modern banking products and services. They include
Visa Infinite and American Express Platinum/Black premium cards with the Concierge Service
and the loyalty program, special deposits and loans, trust management, broking services, mutual
funds, combined products, investment and insurance products, life insurance products. As of 1
January 2012, Sberbank had over 31,000 VIP clients and funds raised from them amounted to
over 320 bn. rubles.
Key aspects of Sberbank's 2011 operations included improving the quality of service to
retail clients and shortening lines in the Bank's offices. To this end, the Bank created a service
quality management system within service training programs developed within it for different
staff categories and regular comprehensive assessments of the quality of service. A single system
of handling client requests was created that includes information support of clients at the Bank's
website, in social networks and on banking forums.
These initiatives helped to enhance the quality index of the service that takes into account
personnel performance, exterior and interior of the division and speed of service, from 78% to
86%. In addition, lines became much shorter: the share of clients that have to wait in line for
over 15 minutes19 fell from 41% to 13% in the year.
19
Data gathered in divisions equipped with the Line Management System
27
7.
Operations in Financial Markets
In the first half of 2011, the situation with foreign currency liquidity remained stable. Sberbank
placed Eurobonds worth 1 bn. US dollars in the second half of the year to increase long-term
liabilities in the structure of its foreign currency liabilities and attracted a syndicated loan of 1.2 bn.
US dollars. Coupled with an influx of client funds in foreign currencies, this was instrumental in
reducing funds raised in a foreign currency through direct REPO transactions by almost 1.4 bn. US
dollars. Excess liquidity in a foreign currency was placed by Sberbank mainly in deposits in leading
western banks and used late that year for SWAP transactions to maintain its ruble liquidity.
An excess ruble liquidity with a falling trend was maintained during the better part of 2011.
Sberbank was actively involved in inter-dealer reverse REPO transactions and interbank lending
transactions to place the surplus of ruble liquidity. In Q4, ruble liquidity significantly fell, mainly
because of the granting of loans. In this regard, Sberbank raised funds on the interbank market, made
SWAP transactions and raised funds within direct REPO transactions with the Bank of Russia.
Operations in the Money Market, Foreign Exchange Market and Precious Metals
Market
During 2011, Sberbank preserved the position of one of the principal operators in the market of
interbank lending and the domestic forex market. Conversion operations in the interbank and stock
markets reached 33.3 trillion rubles, deposit transactions (interbank lending and intra-system
redistribution of resources) – 72.7 trillion rubles. The amount of conversion and deposit transactions
in the currencies of the CIS and countries from further afield was over 20 bn. rubles.
The Bank's main effort in furthering conversion and deposit transactions in 2011 was aimed at
securing a more effective collaboration with the largest corporate clients and improving the quality of
service. During the year in question, the number of transactions individually arranged with corporate
clients increased from 100 to 300 a month, and the average monthly volume of conversion
transactions arranged with clients went up from 1.5 bn. US dollars to 2 bn. US dollars.
In terms of furthering its operations with derivatives, the Bank was largely focused on
developing the client and trading infrastructure, actively promoting its range of derivative
products for corporate clients. A standard English-law ISDA agreement was developed for
transactions with corporate clients, a framework Russian-law ISDA agreement was developed,
and mechanisms were designed for securing derivative transactions – pledge of shares and surety
contract. In addition, the Bank was actively promoting a new range of products such as interest
derivatives and structural deposits developed the year before.
As a result, the volume of derivative transactions with clients reached 7 bn. US dollars in
2011, including:



transactions in forwards, options and structural deposits – 1.4 bn US dollars;
currency and interest rate SWAP transactions – 2.3 bn. US dollars;
interest rate SWAP transactions – 3.3 bn. US dollars.
Based on expert estimates, Sberbank's share in the derivative market grew from 1–2% to
10% over the year.
The market of transactions in foreign currency cash was very active in 2011 because of the
high volatility of currency rates. As a consequence, Sberbank's volume of note operations grew
1.5 times as compared to 2010 and reached 18 bn. US dollars. Sberbank's share in the
import/export of foreign currency cash increased from 22.4% to 36.7%.
28
Transactions of sale and purchase of precious metals in the foreign market, less SWAP
transactions, grew 1.2 times to 7.6 bn. US dollars. SWAP volumes fell from 4.9 to 2.6 bn. US dollars
because of a lack of need for raising US dollars in this manner throughout the better part of the year.
Operations in Securities
Operations with the Bank's Securities Portfolio
By the end of the year, the Bank's net investments in securities fell 14.6% to 1,581 bn.
rubles after redemption of bonds of the Bank of Russia worth 433 bn. rubles to zero. This gave
Sberbank additional ruble liquidity. Such securities used to be purchased as part of free liquidity
management effort. As a result, the share of the Bank of Russia's bonds and government-issued
securities in the portfolio fell from 64% to 49%.
At the same time, the Bank purchased other securities, focusing on those given in the Pawn
List of the Bank of Russia. This created good conditions for Sberbank to obtain, subsequently,
refinancing from the Bank of Russia. The share of corporate bonds rose most noticeably in the
Bank's portfolio: from 19% to 29%.
To boost its securities portfolio diversification, the Bank further practiced entering new
segments of the debt market – Eurobonds of sovereign borrowers of CIS countries (including
ruble-denominated bonds of the Republic of Belarus), Eurobonds of corporate issuers from CIS
countries, and sovereign bonds of developing countries (Turkey, Brazil). In 2011, ruble bonds of
Citigroup Funding Inc. and Barclays Bank plc appeared in the Bank’s securities portfolio. As of
the end of 2011, Sberbank is an unconditional leader among Russian bond market players in
terms of its own portfolio and among the leaders in terms of the volume of operations.
Sberbank received the 2011 REPO Market Dealer Award for its significant contribution to
the development of the stock market from the National Stock Exchange Association, the leading
professional organization of members of the Russian securities market.
Broking Services
Sberbank is successfully developing broking services. During the year, its client base grew
12%; the number of online trading clients rose from 12,000 to 28,300.
Starting in Q1, the Bank provided broking services in the OTC market: clients are allowed
to trade in foreign securities such as shares, bonds, Eurobonds, depositary receipts and foreign
exchange traded funds.
In Q2, it started offering broking services in the RTSС-FORTS derivatives market.
Transactions in futures for shares, foreign currencies, the MosPrime rate and the RTS index
became available to clients. In October-November Sberbank of Russia won first place in the
FORTS brokers rating in terms of the number ofnew clients.
In Q3, the Bank implemented the main broking services project of the year – a service
allowing clients to make unsecured transactions in shares listed in MICEX (marginal trading).
During September, this service was proliferated to over 670 sales outlets throughout the country
which execute broking contracts involving online trading.
Handling of clients' telephone requests was centralized in a specialized Trade Desk service
in order to improve the quality of broking services. This enabled consultations on technical
issues of online trading clients connected to Focus IV online and QUIK systems.
The range of broking products created by the end of 2011 helps the Bank compete with the
largest brokers. The average monthly volume of broking transactions, less REPO, was about 55
bn. Rubles, 1.5 times more than in the previous year. The share of online clients' transactions
grew from 52% to 81%.
29
In December 2011, Sberbank was given the Breakthrough of the Year award for
Outstanding Achievement in the Development of a Civilized Market of Qualified Investors in
Russia. It recognizes popularization of the qualified investor concept and provision of genuine
content for the status. The Award is organized by IMAC, a company that operates in legal,
financial and investment consulting for players on the Russian financial markets.
Underwriting Services
Underwriting services were provided by the Bank in 2011 as part of the integration of
Troika Dialog in Sberbank's structure. By the end of 2011, Sberbank and Troika Dialog
placed/participated in the placement of 65 issues of bonds of third-party issuers worth almost
200 bn. rubles at par value. As a result, the share of Sberbank and Troika Dialog reached 20% in
the total volume of placed ruble bonds. Based on investment bank ratings published by Cbonds,
in 2011 Sberbank, together with Troika Dialog, came 1st in the rating of “market issue”
organizers in the Russian bond market.
Depositary Services
Sberbank's depositary retained its position as the largest banking depositary in the Russian
market by increasing the number of depot accounts by 3.5% to almost 250,000. The market
value of client assets held in the depot account added 24% to exceed 2 trillion rubles.
In 2011, the Depositary functioned as a sub-custodian by safe-keeping the underlying asset
for issue and redemption of depositary receipts issued by JP Morgan Chase Bank N.A. for shares
of a number of the largest Russian issuers. A program of ADRs for OAO Rostelecom shares was
admitted.
The Depositary started providing services in the program of depositary receipts issued by
The Bank of New York Mellon for common shares of Sberbank of Russia. As of 1 January 2012,
11.7% of the entire volume of common shares of OJSC Sberbank of Russia was converted into
American Depositary Receipts.
Sberbank's Depositary supported programs of Russian Depositary Receipts for UC RUSAL
shares: issue/redemption of depositary receipts and organization of the collection of votes for the
Russian market during the shareholders' meetings of UC RUSAL.
The Bank, in conjunction with JP Morgan, completed the transition of the program of
issue/redemption of depositary receipts for OJSC OC Rosneft shares from JP Morgan Chase
Bank N.A. to JP Morgan AG (Germany).
Seven territorial banks and Moscow launched remote services for retail clients involving a
number of depositary transactions.
The rating of the international magazine, Global Custodian, based on clients' assessments
of the quality of services, awarded Sberbank's Depositary the Domestic Commended status in
2011 as a depositary recommended for clients in the market of the Russian Federation.
Mutual Funds
In 2011, the volume of transactions involving admission of requests for the purchase of
mutual funds (MF) reached 2.3 bn. rubles, exceeding the 2010 figure by a factor of 7. The rapid
growth in MF transaction volumes came as a result of operations commenced in late 2010 by
Sberbank Management Company LLC. Its total share of amounts invested in MFs is 80%.
Another reason was an increase in the number of agency outlets accepting such requests.
30
8.
Risk Management
This section includes the description of main risk factors related to Sberbank's activities
and methods of managing them.
Credit Risk
Credit Risk Management
A credit risk means the risk of possible financial losses arising when borrowers fail to
perform, in full or in part, or unduly perform their obligations to the Bank related to supply of
funds or other financial assets.
The credit risk is a type of risk most significant for the Bank so it is particularly focused on
managing it and monitoring the quality of the loan portfolio. Sberbank applies the following
main credit risk management methods:

risk prevention by identifying, analyzing and assessing potential risks at a stage
preceding transactions exposed to the credit risk;
 restriction of the credit risk by establishing limits and/or limitations;
 monitoring and control of the degree of credit risk;
 creation of adequate reserves and relevant structuring of transactions in order to
minimize the credit risk.
Management of the Credit Risk of Legal Entities
In 2011, the Bank maintained a procedure for a mandatory independent expert examination
of credit risks followed before a decision was made to grant a loan to medium and large business
borrowers and largest clients.
By using the existing system of formalized assessment of the credit risk the Bank can
correctly assess the expected degree of the credit risk made up of the client risk (likelihood of a
default) and the transaction risk (losses in the event of a default). As part of this system, the
Bank approved:

the method for assessing the likelihood of a default of its contracting parties
This method is based on tools of economic and mathematical modeling, an end-to-end
approach that secures statistical and expert assessment of the probability of different
outcomes and the size of potential losses based on different security. In addition, the
method involves improvement of the model based on gathered statistical data on actual
defaults given changing macroeconomic conditions in the productive sector of the
Russian and global economies.

the model of assessment of losses in the event of a default
This model is based on statistical and expert information on possible outcomes of
realization of the credit risk, including events related to:




repayment of overdue debt with funds of the contracting party and third parties,
sale of collateral;
write-off of overdue debt,
reissue of credit and other contractual liabilities that were subject to a default into
other financial instruments.
31
Management of the Credit Risk of Small Businesses
In 2011, the Bank continued improving the risk management system for loans granted to
sole proprietors and small businesses. In order to identify risk types and assign ratings, clients
are divided into two segments: micro business which involves retail tools of risk assessments and
small business which requires creation of risk assessments tools fully integrated in the risk
management system for medium and large corporate clients. The Bank uses two unified
centralized technologies of lending of small business:
Loan Factory – the product approach is followed during risk assessment: the scoring
grade is calculated, risk is assessed, the credit price and limit are calculated when the
client files a loan request, a rating is assigned to the transaction. Starting in 2011, all
territorial banks have been processing two types of unsecured loans through the Loan
Factory. There are plans to expand this list in 2012 by including secured loans such as
Express Auto and Express Asset.
 Loan Conveyor is a technology that involves assignment of a long-term rating to a
client/group of related parties based on an adapted corporate model of risk assessments
that takes into account peculiar features of this client category, builds a limit
management system, a decision-making authority system. 2011 saw the completion of
the first stage of implementation of the Loan Conveyor technology in two territorial
banks. Testing of this technology involved a unified approach to assessment of
collateral and assessment of legal risks, optimization of the credit process, reduction of
transaction review times, centralized independent expert examination of risks that
included verification of client data, assessment of the credit history and the borrower's
business reputation. 347 loans worth 1.3 bn. rubles were granted during the first stage.
In there are plans to carry out gradual automation and replication of the Loan Conveyor
technology throughout Sberbank's network.

Management of the Credit Risk of Retail clients
For the purposes of retail loans risk control, the Bank continuously monitors the quality of
its loan portfolio by subdivisions and main credit products. To this end, Sberbank has been using
the Loan Factory lending technology since 2008. Implementation of this risk management
system throughout all territorial banks allows to control risks at all lending stages, maintain a
good quality of the portfolio and gradually reduce service times to borrowers.
Starting in 2011, the Loan Factory has been using the pricing technology based on a
client's individual risk levels.
Handling of Troubled Debt
The Bank is increasing repayment rates of troubled assets by modernizing its existing
business processes and implementing new ones for different client segments.
As part of its efforts aimed at legal entities, the business process for an early-stage
handling of new problem situations has been introduced and is in place. This helped to improve
the figures of transition of debt overdue for 30 to 60 days to the 90 plus days category. This
transition rate was 70% in 2010 and 50% in 2011. Outcomes of the handling of troubled assets of
legal entities in 2011:




troubled assets recovered in cash amounted to 120.5 bn. rubles;
overdue interest, fines, penalties, forfeits worth 25.7 bn. rubles repaid;
loans worth 79.8 bn. rubles transitioned from the troubled category to untroubled loans;
allowance worth 148.5 bn. rubles for possible losses under loans among troubled assets
restored.
A high repayment rate secured by bankruptcy procedures at 55% significantly facilitated
reduction in troubled assets.
32
Special effort is made to control recovery of overdue debt on loans to retail clients at an
early stage. For this purpose, the Bank implemented Tallyman, an automated system. The system
follows a client approach, supports a centralized algorithm of debt collection, includes a set of
debtor treatment strategies that make allowances for client risks, likelihood of repayment,
economic reasonability of debt collection measures, criteria for forwarding the client to higher
stages of collection. In addition, the system optimizes distribution of e-mail, SMS messages,
letters, wires, automatic voice notices given to debtors regarding overdue liabilities. This system
is integrated with the automated calling system which significantly reduces overdue loan
handling times. In addition, there is a new opportunity to get relevant data on debt at the same
time the call is put through to the operator.
Quality of the Loan Portfolio
By using its methods and procedures for credit risk management, the Bank managed to
improve the quality of its loan portfolio. The volume of overdue debt lost more than 30 bn.
rubles over the year, while the specific weight of overdue debt in the total loan portfolio of
clients fell from 5.0% to 3.4%.
Comparison of risks realized by Sberbank and the banking system in 2011:
1 January 2012
1 January 2011
Banking
Banking
%
Sberbank
sector*
Sberbank
sector*
Total share of overdue debt in the loan portfolio
3.4
4.6
5.0
5.5
in the loan portfolio of legal entities
3.6
4.5
5.5
5.1
in the loan portfolio of retail clients
2.7
5.2
3.5
6.9
* According to The Review of the Banking Sector of the Russian Federation (online version) #113, March 2012
Loan Concentration
The Bank pays special attention to controlling the concentration of credit risks and meeting
prudential requirements of the Bank of Russia. The Bank has implemented the procedure of daily
monitoring of major credit risks and forecasting of how requirements established by the Bank of
requirement are met – N6 (maximum risk amount per one borrower or a group of related
borrowers) and N7 (maximum amount of major credit risks).
The level of concentration of major credit risks is estimated by the Bank as acceptable.
Loans to ten largest borrowers (groups of related borrowers) constituted, at the end of, 16.6% of
the loan portfolio20 (15.2% the year before). The Bank's largest borrowers included
representatives of different sectors of the economy.
Liquidity Risk
The liquidity risk management is based on the classification of the Bank's assets and
liabilities given actual repayment terms which may be significantly different from contractual
repayment terms for some instruments and on the assumption that all possible outflows of funds
should be covered by expected proceeds in all time intervals. Analysis of liquidity gaps for
different periods is the main liquidity risk management tool.
For liquidity risk management purposes, the Bank singles out the risk of liquidity
requirements and the risk of physical liquidity.
20
During calculation of this figure, the loan portfolio includes loans to banks, loans receivable from legal entities
and retail clients less assignment contracts; the amount of liabilities of largest borrowers does not include
banking groups and the Bank's affiliates
33
The liquidity requirements risk involves possible problems related to the meeting of
liquidity requirements set by the Bank of banking (N2, N3 and N4). The Bank prepares a weekly
forecast of liquidity requirements and monitors how they are met taking into account not only
regulatory limitations but also even more stringent internal limits. Throughout 2011, liquidity
requirements established by the Bank of Russia were met by the Bank with a significant reserve:
Compliance with liquidity requirements
Liquidity
requirements
N2
N3
N4
Limit established by
the Bank of Russia
Critical value of
Sberbank
Figure as of the reporting date, %
1 January 2012
1 January 2011
over 15%
over 50%
under 120%
15%
55%
110%
50.8
72.9
87.3
80.6
103.0
78.0
The physical liquidity risk involves problems related to a lack of any currency for the
Bank to cover its liabilities. Tools for the physical liquidity risk management in the short term
include a payment flow forecasting model and control of available liquidity reserves of the Bank.
Direct REPO transactions with foreign banks and the Bank of Russia serve as main reserves for
managing operating liquidity. Medium and long-term liquidity is managed by Sberbank on the
basis of funding plans developed every quarter. Main tools for medium- and long-term funding
include trade finance transactions, issue of bonds and syndicated loans.
Liquidity Management in 2011
In 2011 the loan portfolio growth was faster than the influx of client funds. In order to
maintain its rubble liquidity, the Bank reduced investments in low-yield liquid instruments
(reduction in investments in the Bank of Russia's bonds worth over 430 bn. rubles) and raised
funds from the Bank of Russia through direct REPO transactions and secured deposits. To fund
operations in a foreign currency, the Bank furthered trade finance transactions and reached out to
international capital markets by placing bonded debt of 1 bn. US dollars for 10 years and
obtaining a syndicated loan totaling 1.2 bn. US dollars for 3 years in US dollars and Euros.
Market Risk
The Bank singles out the following market risk categories:
The interest risk on balance sheet assets and liabilities sensitive to interest rates – the
risk of a rise/fall in interest income and expenses caused by a yield curve changed as a
result of a gap in repayment (interest rate revision) dates for funds the Bank raised and
placed;
 The market risk for positions which includes:




The interest risk for the debt securities portfolio – the risk caused by an adverse
change in market rates;
The stock exchange risk – the risk caused by an adverse change in stock prices;
The currency risk – the risk caused by an adverse change in foreign currency rates
and precious metal prices.

To evaluate its market risk, the Bank utilizes the following methods:
The interest risk for non-trade positions is assessed through gap analysis by redistributing
assets and liabilities with fixed interest rates based on contractual repayment dates, assets and
liabilities with floating interest rates – based on interest rate revision dates. The gap is calculated
separately for Russian rubles and foreign currencies. This involves appraisal of the impact that a
100 basis point rise or fall of the interest rate has on net earnings.
34
The market risk for trade positions (the interest risk of the debt securities portfolio, stock
exchange and foreign currency risks) is assessed by the Bank following the VaR method. It helps
to estimate the maximum volume of expected financial losses for a specific period of time at a
preset level of confidence probability. The Bank evaluates VaR by using the historical modeling
method with a 99% confidence probability in the horizon of 10 days. As part of daily monitoring
of the level of market risks assumed by the Bank on trade positions, it also analyzes positions
exposed to the risk and assesses their vulnerability to changes in market indicators.
Details of the size of the market risk in 2011:
Risk size
(mln. rubles)
Type of risk
Interest risk of non-trade
positions
Market risk on trade
positions
on the debt securities
portfolio
stock market risk
foreign currency risk
investment
diversification effect
1 January
2012
Risk size
(% of capital)
1 January
2011
average
for period
10,272
4,079
28,924
46,621
26,066
26,066
40,074
9,872
1,793
9,439
1,910
8,808
4,802
maximum
for period
1 January
2012
1 January
2011
average
for period
0.7%
0.3%
46,506
1.9%
3.8%
1.8%
22,009
39,799
1.7%
3.2%
1.5%
9,309
1,782
10,724
2,304
0.,7%
0.1%
0.8%
0.2%
0.7%
0.1%
0.6%
0.4%
The significant decrease in the size of risk on trade positions in debt securities in 2011
results mainly from the VaR calculation method applied by the Bank. The calculation involves
data for only the past 500 trading days so the substantial negative changes in market indicators
for Q1 2009 no longer affected the VaR calculation result. In addition, the risk level was
influenced by the debt securities portfolio reduced through redemption of the Bank of Russia's
bonds.
The interest risk on non-trade positions grew in 2011 because of a significant increase in
the gap in rubles and dollars at certain time intervals.
In order to limit the size of the market risk, the following limits and restrictions are
established for operations in assets and liabilities:

Interest risk of non-trade positions: maximum interest rates for raising and placing funds
of legal entities, limitations on the volume of long-term lending – the highest-risk
instrument for placing funds;
 Market risk on trade positions: limits on the size of investments and open positions,
duration limits, sensitivity limits, loss limits etc.
Legal Risk
The Bank has approved and has in place an internal regulation on collaboration between
the Bank's subdivisions and Legal Department to rule out the risk of unconformity of the Bank's
internal documents to provisions of new federal laws, laws of administrative units of the Russian
Federation, other regulations and law-enforcement practice.
To follow the Bank of Russia's recommendations on bank risk assessment and the Basel
Agreement, in 2011 the Bank took measures to build the system for integrated management of
risks (including the legal risk) of the Group of OJSC Sberbank of Russia.
As of 1 January 2012 there were claims pending against the Bank and filed by retail clients
for 129.4 bn. rubles. Following examination of similar claims in 2011, the Bank expects courts to
make an award in favor of the Bank and the Bank will make no payments under them.
35
Strategic Risk
For Sberbank as the largest universal lending institution of the country, strategic risks are
closely related to the adequate assessment of prospects of development of the Russian economy
and accurate projections of the dynamics of corporate and individual needs for financial services.
The Bank's development strategy approved by Sberbank's Supervisory Board in October
2008 was designed in the context of a rapidly changing situation in financial markets and the
economy in general. Its developers had an important goal of striking a balance between solutions
required by the short-term market conditions and long-term objectives pursued by the Bank.
The strategy defines main mechanisms of implementation of this objective that require
changing the Bank's internal operating arrangements, increasing staff performance, modifying
approaches to client services, boosting employee professionalism and interest in the outcomes of
their effort.
The primary result that was achieved through implementation of the Strategy was an
improved quality of client service, faster modernization of key banking processes and
technologies, an implemented incentive system oriented on achieving growth targets.
Development within the growth paradigm established by the Strategy allowed the Bank to
avoid realization of risks related to a rapid outflow of liabilities in 2009, the period of an active
crisis phase. However, the loan portfolio structure diversified by sectors and borrowers helped to
maintain the share of overdue debt at a level which was significantly better than market figures.
Risks related to integration and development of subsidiaries in the territory of the Russian
Federation and overseas, risks of an adverse change in laws and regulations that determine
activities of lending institutions are also very relevant to Sberbank.
Sberbank carefully analyzes each transaction for setting up or acquiring companies and
banks both in Russia and abroad. Comprehensive assessment of such projects covers the
maximum possible scenarios and only then a positive or negative decision is made.
Even though negative consequences of stricter rules and requirements to operations of lending
institutions that might be introduced on the national and supra-national level will affect primarily
medium and small banks, Sberbank also takes into account the risk of tighter regulations in its
activity, is involved in interdepartmental commissions on improvement of banking laws.
To secure sustainable development on the context of a volatile external environment,
Sberbank regularly monitors all strategic projects it is carrying out. In the event of significant
changes in external or internal factors affecting operations within a certain project, urgent
relevant adjustments are made in its progress.
The Bank regularly reports on the status of the Strategy's implementation to the
Supervisory Board and the Annual General Shareholders’ Meeting of Sberbank, holds special
sessions that may be attended by members of the Supervisory Board and leading global
specialists in economy and finance on bringing targets of strategic development up to date.
Operating Risk
The operating risk is managed to prevent and reduce losses caused by imperfections in
internal processes, failures and errors in the operation of IT system, personnel's actions and the
impact of external factors.
In the reporting year, Sberbank held an open tender for a software platform for the
operating risk management system. As a result, it selected SAS OpRisk Management, a platform
used by leading global financial institutions. The Bank started a strategic project for automation
of the operating risk management system and commenced implementation effort.
36
In order to increase responsibility of subdivisions on issues of managing the operating risk,
special focus was put on the institute of risk coordinators – the link on issues of collaboration
between risk subdivisions and the Bank's subdivisions in the course of operating risk
management.
The Bank continuously carried out a risk audit of key processes and then implemented new
technologies to reduce operating risk levels:

to lower the risk of fraud by external parties and the Bank's staff when accessing a
client's accounts;
 to differentiate features allowing operations in automated systems which reduced the
risk of unauthorized transactions carried out by one person;
 to centralize the granting of privileges of access to automated systems.
The Bank's top-priority processes for optimization in 2012 include those exposed to a high
level of operating risk, including cash management for corporate clients, unallocated bullion
accounts, broking services, bank wires, bank card accounts, execution and support of the
universal bank service agreement etc.
As of 1 January 2012, the ratio of expenses related to realization of an operating risk to
Sberbank's earnings was 1.2% or much lower than in largest Russian banks. The average figure
based on the profit and loss statement of ten largest banks by working assets was, on 1 January
2011, 4.2%.
Risk of Loss of Business Reputation
Several groups of indicators of the Bank's financial condition are used to detect and assess
factors affecting the risk of loss of business reputation. These include comparison against
aggregate indicators for the Russian banking sector, the Bank's compliance with legislative
requirements to financial monitoring, changes in business reputation of its affiliates, subsidiaries
and related organizations, the Bank's international rating etc.
Assessment of factors affecting the risk of loss of Sberbank's business reputation made as
of 1 January 2012 warrants a conclusion that the Bank's reputation risk is at an acceptable level.
37
9.
Corporate Governance
Organizational structure of the Bank
General Shareholders’ Meeting
Audit Commission
Supervisory Board
Management Board, CEO,
Chairman of the
Management Board
Supervisory Board
committees
Management Board
committees
Bank Collegium
Headquarters’ units,
regional banks, and
foreign branches
General Shareholders’ Meeting
The General Shareholders’ Meeting is the supreme management body of the Bank. The
General Shareholders’ Meeting is empowered to adopt resolutions on the main issues pertaining
to the Bank’s operations. The list of issues within the competence of the General Shareholders’
Meeting is established by Federal Law No. 208-FZ On Joint Stock Companies dated 26
December 199521 and the Bank’s Charter.
On 3 June 2011, the annual General Shareholders’ Meeting was held which approved the
annual report of the Bank for 2010, compiled in compliance with the requirements of the Federal
Commission for the Securities Market (FCSM) and the annual report of the Bank, compiled in
compliance with the requirements of the Bank of Russia. The meeting also adopted resolutions
on profit distribution and dividend payment for 2010, approved the auditor for 2011, elected
members of the Supervisory Board and the Audit Commission, elected the President, Chairman
of the Bank’s Management Board, approved the amended Charter of the Bank, and passed
resolutions on payment of remuneration to the members of the Supervisory Board and the Audit
Commission.
Supervisory Board
In compliance with the Charter, the Supervisory Board is in charge of general management
of the Bank's operations. The following is within the competence of the Supervisory Board:
setting priority areas of the Bank’s activity; establishing the collegiate executive body of the
Bank. i.e. the Management Board; convening and holding general shareholders’ meetings;
making recommendations on the size of dividends and dividend payment procedure; hearing, on
a regular basis, the reports of the CEO, Chairman of the Bank’s Management Board, on the
Bank’s financial performance and fulfillment of priority tasks, and other issues.
21
Hereinafter, the Federal Law On Joint Stock Companies
38
Eight meetings of the Supervisory Board were held in 2011. The following issues were
addressed at the meetings: convening and holding the annual General Shareholders’ Meeting; the
annual report of the Bank for 2010; profit distribution and recommendations on the size of
dividends; the Bank’s auditor for 2011; approval of the revised dividend policy; activities of
subsidiary banks and establishment of branches and representative offices in foreign states;
progress in Sberbank’s Development Strategy and Program until 2014; integration with Troika
Dialog; improving the risk management system; progress in corporate business development
projects; small business lending; interim results of the Bank’s operations; audit findings of the
Internal Control Department; approval of non arm’s-length transactions, and other issues.
Members of the Supervisory Board
elected on 3 June 2011
1
Ignatiev Sergei Mikhailovich
2
Luntovsky Georgy Ivanovich
3
Ulyukaev Aleksei Valentinovich
4
Ivanova Nadezhda Yurievna
5
Popova Anna Vladislavovna
6
Savatyugin Alexei Lvovich
7
Tkachenko Valery Viktorovich
8
Shvetsov Sergei Anatolievich
Members of the Supervisory Board
elected on 4 June 2010
1
Ignatiev Sergei Mikhailovich
2
Luntovsky Georgy Ivanovich
3
Ulyukaev Aleksei Valentinovich
4
Belousov Andrei Removich
5
Dvorkovich Arkady Vladimirovich
6
Ivanova Nadezhda Yurievna
7
Kudrin Aleksei Leonidovich
8
Nabiullina Elvira Sakhipzadovna
9
Savatyugin Alexei Lvovich
10 Tkachenko Valery Viktorovich
11 Shor Konstantin Borisovich
12 Shvetsov Sergei Anatolievich
Sberbank managers
13 Gref Herman Oskarovich
14 Zlatkis Bella Ilyinichna
9
10
Gref Herman Oskarovich
Zlatkis Bella Ilyinichna
11
12
13
14
15
16
17
Independent/outside directors
Guriev Sergei Maratovich
15 Guriev Sergei Maratovich
Dmitriev Mikhail Egonovich
16 Kelimbetov Kayrat Nematovich
Matovnikov Mikhail Yurievich
17 Mau Vladimir Aleksandrovich
Mau Vladimir Aleksandrovich
Simonyan Rair Rairovich
Sinelnicov-Murylev Sergei Germanovich
Profumo Alessandro
Information on the members of the Supervisory Board as of 1 January 2012:
IGNATIEV SERGEI MIKHAILOVICH
Chairman of the Supervisory Board, Sberbank of Russia OJSC
Mr. Ignatiev was born in 1948. In 1975, he graduated from Lomonosov Moscow State
University.
PhD in Economics. Associate Professor.
Since 2002, Mr. Ignatiev has been Chairman of the Central Bank of the Russian Federation.
No share in the Bank’s charter capital/ordinary shares.
No transactions with shares in 2011.
39
LUNTOVSKY GEORGY IVANOVICH
Deputy Chairman of the Supervisory Board, Sberbank of Russia OJSC,
Chairman of the HR and Remuneration Committee
Mr. Luntovsky was born in 1950. In 1978, he graduated from the All-Union Distance-Learning
Institute of Finance and Economics; in 1997, from the Academy of National Economy under the
Government of the Russian Federation. PhD in Economics.
Since 2005, Mr. Luntovsky has been First Deputy Chairman, Central Bank of Russia.
No share in the Bank’s charter capital/ordinary shares. No transactions with shares in 2011.
ULYUKAEV ALEKSEI VALENTINOVICH
Deputy Chairman of the Supervisory Board, Sberbank of Russia OJSC,
Chairman of the Strategic Planning Committee
Mr. Ulyukaev was born in 1956. In 1979, he graduated from Lomonosov Moscow State
University.
PhD in Economics. Professor.
Since 2004, Mr. Ulyukaev has been First Deputy Chairman, Central Bank of Russia.
No share in the Bank’s charter capital/ordinary shares.
No transactions with shares in 2011.
GREF HERMAN OSKAROVICH
Member of the Supervisory Board, Sberbank of Russia OJSC,
member of the Strategic Planning Committee
Mr. Gref was born in 1964. In 1990, he graduated from Omsk State University.
PhD in Economics.
In 2000, he was appointed Minister for Economic Development and Trade of Russia.
Since 2007, Mr. Gref has been CEO and Chairman of the Management Board, Sberbank of
Russia OJSC.
Share in the Bank’s charter capital: 0.0031%.
Holds 0.003% of the Bank’s ordinary shares.
Information about transactions with the Bank’s shares in 2011:
Date
09.02.2011
04.05.2011
04.08.2011
09.08.2011
11.08.2011
18.08.2011
19.08.2011
25.08.2011
04.10.2011
Transaction information
Acquisition of ordinary and
preferred shares
Acquisition of ordinary shares
Acquisition of ordinary shares
Acquisition of ordinary shares
Acquisition of ordinary shares
Acquisition of ordinary shares
Acquisition of ordinary shares
Acquisition of ordinary shares
Acquisition of ordinary shares
Share in the
charter
capital before
change, %
Ordinary
shares before
change, %
Share in the
charter
capital after
change, %
Ordinary
shares after
change, %
0.0006
0.0007
0.001
0.0009
0.001
0.0016
0.0021
0.0023
0.0024
0.0025
0.0025
0.0029
0.0009
0.0014
0.0019
0.0021
0.0023
0.0023
0.0024
0.0028
0.0016
0.0021
0.0023
0.0024
0.0025
0.0025
0.0029
0.0031
0.0014
0.0019
0.0021
0.0023
0.0023
0.0024
0.0028
0.003
40
GURIEV SERGEI MARATOVICH
Independent member of the Supervisory Board, Sberbank of Russia OJSC,
member of the Strategic Planning Committee
Mr. Guriev was born in 1971. In 1993, he graduated from the Moscow Physics and Technology
Institute. PhD in Physical and Mathematical Sciences. PhD in Economics. Since 2004,
Mr. Guriev has been Rector of Non-State Educational Establishment Russian Economic School.
No share in the Bank’s charter capital/ordinary shares. No transactions with shares in 2011.
DMITRIEV MIKHAIL EGONOVICH
Independent member of the Supervisory Board, Sberbank of Russia OJSC,
member of the Strategic Planning Committee
Mr. Dmitriev was born in 1961. In 1983, he graduated from Voznesensky Institute of Finance
and Economics in Leningrad. PhD in Economics. Since 2005, he has been President of the
Center for Strategic Research Foundation. No share in the Bank’s charter capital/ordinary shares.
No transactions with shares in 2011.
ZLATKIS BELLA ILYINICHNA
Member of the Supervisory Board, Sberbank of Russia OJSC
Mrs. Zlatkis was born in 1948. In 1970, she graduated from the Moscow Financial Institute.
PhD in Economics.
Since 2004, Mrs. Zlatkis has been Deputy Chairman of the Management Board, Sberbank of
Russia OJSC.
Share in the Bank’s charter capital: 0.0004%.
Holds 0.0005% of the Bank’s ordinary shares.
No transactions with shares in 2011.
IVANOVA NADEZHDA YURIEVNA
Member of the Supervisory Board, Sberbank of Russia OJSC,
member of the Audit Committee
Mrs. Ivanova was born in 1953. In 1975, she graduated from the Moscow Financial Institute.
Since 1995, Mrs. Ivanova has been Director of General Economic Department, Central Bank of
the Russian Federation.
She has no stake in the Bank’s charter capital/ordinary shares.
No transactions with shares in 2011.
MATOVNIKOV MIKHAIL YURIEVICH
Independent member of the Supervisory Board, Sberbank of Russia OJSC,
member of the Strategic Planning Committee
Mr. Matovnikov was born in 1975. In 1997, he graduated from St. Petersburg State University of
Economics and Finance; in 2009, from Harvard Business School (USA). PhD in Economics.
Since 2005, he has been CEO of Interfax Center for Economic Analysis.
No share in the Bank’s charter capital/ordinary shares.
No transactions with shares in 2011.
41
MAU VLADIMIR ALEKSANDROVICH
Independent member of the Supervisory Board, Sberbank of Russia OJSC,
Chairman of the Audit Committee, member of the Human Resources and Remuneration
Committee
Mr. Mau was born in 1959. In 1981, he graduated from Plekhanov Russian Academy of
Economics; in 1999, from Pierre-Mendès-France University (Grenoble, France). PhD in
Economics. Professor.
Since 2002, he has been Rector of State Educational Institution Academy of National Economy
under the Government of the Russian Federation (since 2010, the Russian Presidential Academy
of National Economy and Public Administration).
No share in the Bank’s charter capital/ordinary shares.
No transactions with shares in 2011.
POPOVA ANNA VLADISLAVOVNA
Member of the Supervisory Board, Sberbank of Russia OJSC,
member of the Strategic Planning Committee
Mrs. Popova was born in 1964. In 1986, she graduated from Voznesensky Institute of Finance
and Economics in Leningrad.
In 2004, she was appointed Director of Corporate Governance Department, Ministry of
Economic Development and Trade of the Russian Federation. In 2007, she was appointed State
Secretary – Deputy Minister of Economic Development and Trade of the Russian Federation
(since 2008, the Ministry of Economic Development of the Russian Federation).
Since 2010, Mrs. Popova has been Deputy Chief of Staff of the Government of the Russian
Federation.
She has no stake in the Bank’s charter capital/ordinary shares.
No transactions with shares in 2011.
PROFUMO ALESSANDRO
Member of the Supervisory Board, Sberbank of Russia OJSC,
member of the Strategic Planning Committee
Mr. Profumo was born in 1957. In 1987, he graduated from Bocconi University (Italy).
In 1997 – 2010, he served as CEO of UniCredit Group.
No share in the Bank’s charter capital/ordinary shares.
No transactions with shares in 2011.
SAVATYUGIN ALEXEI LVOVICH
Member of the Supervisory Board, Sberbank of Russia OJSC,
member of the Strategic Planning Committee
Mr. Savatyugin was born in 1970. In 1992, he graduated from St. Petersburg State University.
In 2004, he was appointed Director of Financial Policy Department, Ministry of Finance of the
Russian Federation.
Since 2010, Mr. Savatyugin has been Deputy Minister of Finance of the Russian Federation.
No share in the Bank’s charter capital/ordinary shares.
No transactions with shares in 2011.
42
SIMONYAN RAIR RAIROVICH
Independent member of the Supervisory Board, Sberbank of Russia OJSC,
member of the Audit Committee
Mr. Simonyan was born in 1947. In 1970, he graduated from the Moscow State Institute of
International Relations under the USSR Ministry of Foreign Affairs. In 2005, he was appointed
Chairman of Morgan Stanley Bank LLC. Since 2009, Mr. Simonyan has been Chairman of the
Board of Directors / Regional Coordinator, Morgan Stanley Bank LLC.
No share in the Bank’s charter capital/ordinary shares.
No transactions with shares in 2011.
SINELNICOV-MURYLEV SERGEI GERMANOVICH
Independent member of the Supervisory Board, Sberbank of Russia OJSC,
member of the Audit Committee, member of the Human Resources and Remuneration Committee
Mr. Sinelnicov-Murylev was born in 1960. In 1982, he graduated from Lomonosov Moscow
State University.
PhD in Economics. Professor.
Since 2007, Mr. Sinelnicov-Murylev has been Rector of the Russian Foreign Trade Academy of
the Ministry of Economic Development of the Russian Federation.
No share in the Bank’s charter capital/ordinary shares.
No transactions with shares in 2011.
TKACHENKO VALERY VIKTOROVICH
Member of the Supervisory Board, Sberbank of Russia OJSC, member of the Audit Committee
Mr. Tkachenko was born in 1955. In 1981, he graduated from Bauman Moscow Higher
Technical School; in 1996, from the All-Union Distance-Learning Institute of Finance.
PhD in Economics. Honored Economist of the Russian Federation. Since 2003, Mr. Tkachenko
has been Chief Auditor of the Central Bank of the Russian Federation.
No share in the Bank’s charter capital/ordinary shares.
No transactions with shares in 2011.
SHVETSOV SERGEI ANATOLIEVICH
Member of the Supervisory Board, Sberbank of Russia OJSC Mr. Shvetsov was born in 1970. In
1993, he graduated from Lomonosov Moscow State University. In 2001, he was appointed
Director of the Financial Market Operations Department, Central Bank of the Russian
Federation.
Since 2011, Mr. Shvetsov has been Deputy Chairman of the Central Bank of the Russian
Federation.
No share in the Bank’s charter capital/ordinary shares.
No transactions with shares in 2011.
Supervisory Board committees
Committees of the Bank’s Supervisory Board are bodies formed for preliminary review of
the most critical issues within the competence of the Supervisory Board and preparation of
recommendations on such issues. Committees are formed annually from among the members of
the Supervisory Board. Independent directors are included in each Committee. Committees
facilitate day-to-day communication with the Bank’s management bodies. Resolutions adopted
by Committees are of an advisory nature.
The Audit Committee is responsible for preliminary evaluation of the Bank’s auditor
candidates, review of the auditor’s and the Audit Commission’s reports, evaluation of the Bank’s
internal control performance, and preliminary review of the annual financial statements of the
43
Bank. Members of the Committee as of 1 January 2012: Vladimir Mau (Committee Chairman).
Committee members: Nadezhda Ivanova, Valery Tkachenko, Rair Simonyan, Sergei SinelnicovMurylev.
The Human Resources and Remuneration Committee encourages involvement of top
professionals in management of the Bank’s operations and incentives required for their
successful work. Members of the Committee as of 1 January 2012: Georgy Luntovsky
(Committee Chairman). Committee members: Sergei Guriev, Vladimir Mau, Sergei SinelnicovMurylev.
The Strategic Planning Committee is responsible for preliminary review of issues related to
strategic management of the Bank’s operations to improve its performance in the long term.
Members of the Committee as of 1 January 2012: Aleksei Ulyukaev (Committee Chairman).
Committee members: Herman Gref, Mikhail Dmitriev, Anna Popova, Alessandro Profumo,
Alexei Savatyugin, Mikhail Matovnikov.
Management Board
The Bank’s day-to-day operations are managed by the CEO and Chairman of the Bank’s
Management Board, and the Management Board of the Bank.
The Management Board is a collective executive management body. The Management
Board is responsible for preliminary discussion of all issues subject to review by a general
shareholders’ meeting and the Supervisory Board of the Bank; the Bank’s risk management policy;
review of reports from heads of departments of the Bank’s Headquarters and heads of regional
banks on the results of their activity; introduction of the most advanced banking technology into
the Bank’s practices; creation of up-to-date banking infrastructure; formation of collective
operating bodies; approval of internal documents governing the Bank’s current operations,
including those defining the Bank’s policy in various areas; review of issues related to the
acquisition of companies and foreign banks, as well as other issues related to the Bank's operations.
In 2011, in addition to the issues subject to approval by the General Shareholders’ Meeting,
the following issues were reviewed at meetings of the Bank’s Management Board: advisability of
entry to the investment banking market and acquisition of the business of Troika Dialog Group;
acquisition of a controlling interest in Volksbank International AG; changes to the remuneration
system; structural reformatting; participation in charity events; management concept related to
subsidiaries and affiliates; depositary receipt program; functional optimization program for
supporting divisions; fundraising on international capital markets; integrated risk management
based on the Basel Accord principles; approval of non arm’s-length transactions, etc.
As of 1 January 2012, the Bank’s Management Board consisted of 13 managers. In 2011,
Andrei Golikov and Evgeny Korolev left the Bank’s Management Board. In June 2011, Igor
Artamonov was introduced into the Bank’s Management Board.
Members of the Bank’s Management Board as of 1 January 2012:
1
2
3
4
5
6
7
8
9
10
11
12
13
Gref Herman Oskarovich
Artamonov Igor Georgievich
Gorkov Sergey Nikolaevich
Donskih Andrey Mikhailovich
Zlatkis Bella Ilyinichna
Karamzin Anton Aleksandrovich
Kuznetsov Stanislav Konstantinovich
Torbakhov Aleksander Yurievich
Bugrov Denis Andreevich
Kanovich Olga Nikolaevna
Orlovskiy Victor Mikhailovich
Bazarov Aleksander Vladimirovich
Morozov Aleksander Vladimirovich
CEO, Chairman of the Board
Deputy Chairman of the Management Board
Deputy Chairman of the Management Board
Deputy Chairman of the Management Board
Deputy Chairman of the Management Board
Deputy Chairman of the Management Board
Deputy Chairman of the Management Board
Deputy Chairman of the Management Board
Senior Vice President
Senior Vice President
Senior Vice President
Vice President – Director of the Corporate Clients Department
Vice-President – Director of Financial Department
44
Information on the members of the Management Board as of 1 January 2012 can be found
below:
GREF HERMAN OSKAROVICH
Member of the Supervisory Board, Sberbank of Russia OJSC,
member of the Strategic Planning Committee,
CEO, Chairman of the Management Board, Sberbank of Russia OJSC
Mr. Gref was born in 1964. In 1990, he graduated from Omsk State University.
PhD in Economics.
In 2000, he was appointed Minister for Economic Development and Trade of the Russian
Federation.
Since 2007, Mr. Gref has been CEO and Chairman of the Management Board, Sberbank of
Russia OJSC.
Share in the Bank’s charter capital: 0.0031 %.
Holds 0.003 % of the Bank’s ordinary shares.
Information about transactions with the Bank’s shares in 2011:
Date
09.02.2011
04.05.2011
04.08.2011
09.08.2011
11.08.2011
18.08.2011
19.08.2011
25.08.2011
04.10.2011
Transaction information
Acquisition of ordinary and
preferred shares
Acquisition of ordinary shares
Acquisition of ordinary shares
Acquisition of ordinary shares
Acquisition of ordinary shares
Acquisition of ordinary shares
Acquisition of ordinary shares
Acquisition of ordinary shares
Acquisition of ordinary shares
Share in the
charter
capital before
change, %
0.0006
Ordinary
shares before
change, %
0.0007
Share in the
charter
capital after
change, %
0.001
Ordinary
shares after
change, %
0.0009
0.001
0.0016
0.0021
0.0023
0.0024
0.0025
0.0025
0.0029
0.0009
0.0014
0.0019
0.0021
0.0023
0.0023
0.0024
0.0028
0.0016
0.0021
0.0023
0.0024
0.0025
0.0025
0.0029
0.0031
0.0014
0.0019
0.0021
0.0023
0.0023
0.0024
0.0028
0.003
ARTAMONOV IGOR GEORGIEVICH
Deputy Chairman of the Management Board, Sberbank of Russia OJSC
Mr. Artamonov was born in 1967. In 1990, he graduated from Plekhanov Institute of National
Economy in Moscow; in 1999, the Academy of National Economy under the Government of the
Russian Federation; in 2007, State University – Higher School of Economics.
In 2004, he was appointed Deputy Chairman of the North Caucasus Bank, Sberbank of Russia
OJSC.
In 2007, he was appointed Chairman of the West-Siberian Bank, Sberbank of Russia OJSC.
Since 2011, Mr. Artamonov has been Deputy Chairman of the Management Board, Sberbank of
Russia OJSC.
Share in the Bank’s charter capital: 0.00027%.
Holds 0.00029% of the Bank’s ordinary shares.
Information about transactions with the Bank’s shares in 2011:
Date
04.10.2011
28.12.2011
Transaction information
Acquisition of ordinary shares
Acquisition of ordinary shares
Share in the
charter
capital before
change, %
0
0.00022
Ordinary
shares before
change, %
0
0.00023
Share in the
charter
capital after
change, %
0.00022
0.00027
Ordinary
shares after
change, %
0.00023
0.00029
45
GORKOV SERGEY NIKOLAEVICH
Deputy Chairman of the Management Board, Sberbank of Russia OJSC
Mr. Gorkov was born in 1968. In 1994, he graduated from the Academy of the Federal Security
Service of the Russian Federation; in 2002, Plekhanov Russian Academy of Economics.
In 2008, he was appointed Director of the HR Policy Department, Sberbank of Russia OJSC.
Since 2010, Mr. Gorkov has been Deputy Chairman of the Management Board, Sberbank of
Russia OJSC.
No share in the Bank’s charter capital/ordinary shares.
No transactions with shares in 2011.
DONSKIH ANDREY MIKHAILOVICH
Deputy Chairman of the Management Board, Sberbank of Russia OJSC
Mr. Donskih was born in 1967. In 1988, he graduated from Plekhanov Institute of National
Economy.
From 2004, he was Chief Executive Officer, Deputy Chairman, and Chairman of OAO Bank
Uralsib.
In 2009, he was appointed Chief Executive Officer of OAO Financial Corporation Uralsib.
Since 2010, Mr. Donskih has been Deputy Chairman of the Management Board, Sberbank of
Russia OJSC.
Share in the Bank’s charter capital: 0.0012%.
Holds 0.0013% of the Bank’s ordinary shares.
Information about transactions with the Bank’s shares in 2011:
Date
21.01.2011
19.08.2011
25.08.2011
Transaction information
Acquisition of ordinary shares
Acquisition of ordinary shares
Acquisition of ordinary shares
Share in the
charter
capital before
change, %
0.0002
0.0007
0.0012
Ordinary
shares before
change, %
0.0002
0.0007
0.0012
Share in the
charter
capital after
change, %
0.0007
0.0012
0.0012
Ordinary
shares after
change, %
0.0007
0.0012
0.0013
ZLATKIS BELLA ILYINICHNA
Member of the Supervisory Board, Sberbank of Russia OJSC,
Deputy Chairman of the Management Board, Sberbank of Russia OJSC
Mrs. Zlatkis was born in 1948. In 1970, she graduated from the Moscow Financial Institute. PhD
in Economics.
Since 2004, Mrs. Zlatkis has been Deputy Chairman of the Management Board, Sberbank of
Russia OJSC.
Share in the Bank’s charter capital: 0.0004%.
Holds 0.0005% of the Bank’s ordinary shares.
Information about transactions with the Bank’s shares in 2011: no transactions.
KARAMZIN ANTON ALEKSANDROVICH
Deputy Chairman of the Management Board, Sberbank of Russia OJSC
Mr. Karamzin was born in 1969. In 1993, he graduated from the Finance Academy under the
Government of the Russian Federation.
From 2005, he was Chief Accountant, head of the Financial Department, and Executive Director
of the Debt Capital Market Department, Morgan Stanley Bank LLC.
Since 2008, Mr. Karamzin has been Deputy Chairman of the Management Board, Sberbank of
Russia OJSC.
Share in the Bank’s charter capital: 0.003%.
Holds 0.003% of the Bank’s ordinary shares.
46
Date
27.01.2011
Transaction information
Acquisition of ordinary shares
Share in the
charter
capital before
change, %
0.001
Ordinary
shares before
change, %
0.002
Share in the
charter
capital after
change, %
0.003
Ordinary
shares after
change, %
0.003
KUZNETSOV STANISLAV KONSTANTINOVICH
Deputy Chairman of the Management Board, Sberbank of Russia OJSC
Mr. Kuznetsov was born in 1962. In 1984, he graduated from the Red Banner Military Institute;
in 2002, from the Law Institute of the Ministry of Internal Affairs of the Russian Federation.
PhD in Law.
From 2002, he was head of the Administrative Department and Director of the General Affairs
Department at the Ministry of Economic Development and Trade of the Russian Federation. In
2007, he was appointed Deputy Minister for Economic Development and Trade of the Russian
Federation.
In 2008, he was appointed Senior Vice President, Sberbank of Russia OJSC.
Since 2010, Mr. Kuznetsov has been Deputy Chairman of the Management Board, Sberbank of
Russia OJSC.
No share in the Bank’s charter capital/ordinary shares. No transactions with shares in 2011.
TORBAKHOV ALEKSANDER YURIEVICH
Deputy Chairman of the Management Board, Sberbank of Russia OJSC
Mr. Torbakhov was born in 1971. In 1994, he graduated from the Ordzhonikidze Moscow
Aviation Institute; in 1997, the Moscow State Institute of International Relations (University); in
2003 – 2005, he completed an MBA program in the University of Chicago Graduate School of
Business.
In 2005, he was appointed Vice President, Unit Head – Vice President of Rosgosstrakh Holding
Company LLC.
In 2008, he was appointed Chief Executive Officer of Rosgosstrakh-Zhizn Insurance Company
LLC. In 2009, he was appointed Chief Executive Officer of OAO Vimpel-Communications. In
September 2010, he was appointed Advisor to President, Sberbank of Russia OJSC. Since
October 2010, Mr. Torbakhov has been Deputy Chairman of the Management Board, Sberbank
of Russia OJSC.
No share in the Bank’s charter capital/ordinary shares. No transactions with shares in 2011.
BUGROV DENIS ANDREEVICH
Member of the Management Board, Sberbank of Russia OJSC, Senior Vice President
Mr. Bugrov was born in 1974. In 1995, he graduated from the London School of Economics and
Political Science; in 1997, the Moscow State Institute of International Relations (University); in
2000, the European Institute of Business Administration.
In 2004, he became partner at the Moscow Representative Office of McKinsey & Company, Inc.
Russia.
Since 2008, Mr. Bugrov has been Senior Vice President, Sberbank of Russia OJSC. No share in
the Bank’s charter capital/ordinary shares.
Information about transactions with the Bank’s shares in 2011:
Date
10.08.2011
26.10.2011
Transaction information
Acquisition of ordinary shares
Sale of ordinary shares
Share in the
charter
capital before
change, %
0
0.0001
Ordinary
shares before
change, %
0
0.0001
Share in the
charter
capital after
change, %
0.0001
0
Ordinary
shares after
change, %
0.0001
0
47
KANOVICH OLGA NIKOLAEVNA
Member of the Management Board, Sberbank of Russia OJSC,
Senior Vice President
Mrs. Kanovich was born in 1971. In 1993, she graduated from Plekhanov Russian Academy of
Economics.
In 2005, she was appointed member of the Board and Director of the Operations Department in
VTB24 ZAO.
Since 2008, Mrs. Kanovich has been Senior Vice President, Sberbank of Russia OJSC.
Holds no share in the Bank’s charter capital/ordinary shares.
No transactions with shares in 2011.
ORLOVSKIY VICTOR MIKHAILOVICH
Member of the Management Board, Sberbank of Russia OJSC, Senior Vice President
Mr. Orlovskiy was born in 1974. In 1996, he graduated from the Tashkent Electrotechnical
Institute of Communication; in 2001, the Moscow State University of Economics, Statistics and
Informatics.
In 2004, he was appointed Director for Products and Operations Development and Support,
Retail Business Unit, OAO Alfa-Bank. In 2006, he was appointed Deputy Director of OOO IBM
Eastern Europe/Asia. Since 2008, Mr. Orlovskiy has been Senior Vice President, Sberbank of
Russia OJSC.
Share in the Bank’s charter capital: 0.0007%.
Holds 0.0008% of the Bank’s ordinary shares.
Information about transactions with the Bank’s shares in 2011:
Date
15.03.2011
Transaction information
Acquisition of ordinary shares
Share in the
charter
capital before
change, %
0
Ordinary
shares before
change, %
0
Share in the
charter
capital after
change, %
0.0007
Ordinary
shares after
change, %
0.0008
BAZAROV ALEKSANDER VLADIMIROVICH
Member of the Management Board, Sberbank of Russia OJSC, Vice President – Director of the
Corporate Clients Department
Mr. Bazarov was born in 1962. In 1984, he graduated from Kiev State University. PhD in
Economics.
From 2004, he was Managing Director and Head of Customer Relations for CIS countries at
Deutsche Bank AG, London, Kiev. In 2008, he was appointed Director of the Corporate Clients
Department, Sberbank of Russia OJSC. Since 2009, he has been Vice President – Director of the
Corporate Clients Department, Sberbank of Russia OJSC.
Share in the Bank’s charter capital: 0.0022%.
Holds 0.0023% of the Bank’s ordinary shares.
Information about transactions with the Bank’s shares in 2011:
Date
06.10.2011
Transaction information
Acquisition of ordinary shares
Share in the
charter
capital before
change, %
0
Ordinary
shares before
change, %
0
Share in the
charter
capital after
change, %
0.0022
Ordinary
shares after
change, %
0.0023
48
MOROZOV ALEKSANDER VLADIMIROVICH
Member of the Management Board, Sberbank of Russia OJSC, Vice President – Director of
Financial Department
Mr. Morozov was born in 1969. In 1995, he graduated from Lomonosov Moscow State
University. In 2005, he was appointed Head of Treasury at ZAO International Moscow Bank.
From 2006, he was General Manager and Head of Treasury at ZAO International Moscow Bank.
In 2007, he was appointed Executive Vice President and Chief Financial Officer at KB
Renaissance Capital (OOO).
In 2008, he was appointed Director of the Financial Department, Sberbank of Russia OJSC.
Since 2009, Mr. Morozov has been Vice President – Director of Finance, Sberbank of Russia
OJSC.
Share in the Bank’s charter capital: 0.0014%.
Holds 0.0009% of the Bank’s ordinary shares.
Information about transactions with the Bank’s shares in 2011:
Date
21.01.2011
Transaction information
Acquisition of ordinary and
preferred shares
Share in the
charter
capital before
change, %
Ordinary
shares before
change, %
Share in the
charter
capital after
change, %
Ordinary
shares after
change, %
0.0004
0.0003
0.0014
0.0009
Management Board committees
To enhance efficiency and for business development, there are a number of collective
bodies (committees) operating in the Bank and which are accountable to the Management Board
of Sberbank of Russia. The primary objectives of such committees are to address issues and
implement a single coordinated policy in various areas of the Bank’s operations.
Corporate Business Committee
Loans and Investments Committee
Bad Assets Committee
Retail Business Committee
Retail Lending Committee
Asset and Liability Management
Committee
Development Strategy Implementation
Committee
Process and Technology Committee
HR Management Committee
Subsidiaries and Affiliates Management
Committee
Conflict of Interest Resolution
Committee
Takes decisions on key issues related to corporate business
Takes decisions on the largest loans and issues related to such loans
Takes decisions on key issues related to loan repayment management
and on writing off bad debts
Takes decisions on key issues related to retail business
Takes decisions related to lending to retail clients
Takes decisions related to asset and liability management, liquidity and
market risk management
Takes decisions on key issues related to implementation of the Bank’s
Development Strategy
Takes decisions on issues related to technology development, manages
the portfolio of IT projects, approves banking process models
Takes decisions related to human resources management, reviews
organizational structures and staff lists for the Headquarters
Takes decisions on key issues related to implementation of the
Development Strategy with regard to the Bank’s subsidiaries and
affiliates
Takes decisions on key issues related to resolution and settlement of
conflicts of interest that appear at the Bank’s level
Bank Collegium
The Bank Collegium, a permanent collective operating body, has been functioning in the
Bank since 2008. The Collegium comprises members of the Bank’s Management Board and
heads of regional and subsidiary banks. This collective body is a forum for active discussion of
all strategic issues related to the Bank’s development and search for the best solutions that take
into account the regional aspects of the Bank’s operations.
49
In 2011, the Collegium held 3 meetings where it reviewed and passed resolutions on key
areas such as reformatting the Bank’s branch office network, launching a new retail business
model, defining approaches to performance and headcount management, and transforming the
Bank’s corporate culture.
Audit Commission
The Audit Commission is elected by the annual General Shareholders’ Meeting to control
the Bank’s financial and economic activities. The Audit Commission checks whether the Bank
complies with legal and other acts governing its activities and reviews organization of the Bank’s
internal control and legality of current transactions. The Audit Commission evaluates reliability
of data included in the Bank’s annual report and the annual accounting statements.
Members of the Audit Commission of Sberbank of Russia OJSC elected by shareholders on 3 June 2011:
1 Volkov Vladimir Mikhailovich
2 Zinina Lyudmila Anatolyevna
3 Polyakova Olga Vasilyevna
4 Dolzhnikov Maksim Leonidovich
5 Kondratenko Dmitry Nikolaevich
6 Minenko Aleksei Evgenyevich
7 Isakhanova Yulia Yurievna
Deputy Director, Accounting and Reporting Department – Head of the
Department for Accounting Principles, and Development and Support of the
Procedural Basis for Financial Reporting pursuant to International
Standards, Central Bank of the Russian Federation
Deputy Head, Audit Department, Moscow Main Territorial Administration,
Central Bank of the Russian Federation
Director, Internal Audit Department, Central Bank of the Russian Federation
Deputy Director, Internal Control, Revisions and Audit Department,
Sberbank of Russia OJSC
Deputy Director, Risk Department, Sberbank of Russia OJSC
Deputy Chief Accountant – Deputy Director, Accounting and Reporting
Division, Sberbank of Russia OJSC
Head, Financial Control Division, Finance Department, Sberbank of Russia
OJSC
Committee for Interaction with Minority Shareholders
The Committee for Interaction with Minority Shareholders has been functioning in Sberbank
since 2008 in order to maintain efficient relations with shareholders and improve corporate
governance.
The Committee holds regular meetings on topics of most interest to shareholders in Moscow and
the regions. Offsite meetings of the Committee are held as videoconferences. This is a unique
approach to relations with regional minority shareholders, which allows the Bank to cover the
largest possible shareholder audience and get it involved in a meeting of the Bank’s top
managers. In 2011, the Committee held its offsite meetings in Krasnoyarsk, Rostov-on-Don,
Khabarovsk, Yaroslavl, Voronezh, and Stavropol. In 2011, the Bank started webcasting the
meetings live on the regional bank’s web page for those shareholders who could not attend the
meeting in person. Since it was established, the Committee visited all regional banks of
Sberbank.
Members of the Committee for Interaction with Minority Shareholders:
Committee
Chairman
Committee
members
A.V.Danilov-Danilyan
Minority shareholder, Sberbank of Russia OJSC
M.G. Lyubomudrov
A.A. Navalnyy
M.N. Nedelsky
Minority shareholder, Sberbank of Russia OJSC
Minority shareholder, Sberbank of Russia OJSC
Minority shareholder, Sberbank of Russia OJSC, CEO, ZAO
Status
Minority shareholder, Sberbank of Russia OJSC
Minority shareholder, Sberbank of Russia OJSC
V.A. Statyin
D.A. Udalov
50
Remuneration for members of the Bank’s management bodies
Formulation of principles and criteria for determining the remuneration for members of the
Supervisory Board, CEO, Chairman of the Management Board, and members of the Bank’s
Management Board is within the competence of the Human Resources and Remuneration
Committee of the Bank’s Supervisory Board. All decisions about payment of remuneration to
members of the Supervisory Board of Sberbank of Russia related to their participation in this
particular management body of the Bank are taken by the annual General Shareholders’ Meeting
of Sberbank of Russia.
Remuneration for members of the Management Board
Remuneration and compensation are paid under the contracts concluded with CEO,
Chairman of the Bank’s Management Board, and members of the Bank’s Management Board.
Sberbank of Russia has no practice of paying commission or other property representations to
members of the Management Board.
In 2011, as in 2010, the Bank did not issue options for the Bank’s shares, did not provide
interest-free or loss-making loans to its employees, and did not use any insurance, loan/deposit,
or other indirect material incentive schemes.
In order to limit labor costs for members of the Management Board, the Supervisory Board
of Sberbank of Russia has:


Set limits on official salaries of members of the Management Board
Placed limitations on bonus payments during the year, which depend on the net profit of
Sberbank of Russia, project implementation, and compliance with key performance
indicators by a member of the Management Board
 Placed limitations on the amount of remuneration during the year as a percentage of the
net profit of Sberbank of Russia.
These limitations are set forth in contracts concluded with members of the Management
Board.
Information about the amount of payments to members of the Management Board is
available on the website as part of quarterly reports on securities.
The amount of all payments accrued for members of the Management Board for 2011,
excluding payments during the time spent for business trips was RUB 1.96 bn, a 32 % increase
on payments accrued for members of the Management Board for 2010, excluding payments
during the time spent on business trips (RUB 1.48 bn).
The increase in payments to members of the Management Board in 2011 versus 2010 is
due to a 78.5 % increase in net profit (from RUB 174.0 bn to RUB 310.5 bn).
Total remuneration for members of the Management Board of Sberbank of Russia OJSC in
the Bank’s net profit decreased from 0.9 % in 2010 to 0.6 %. This is the lowest value among the
largest Russian banks.
Remuneration for members of the Supervisory Board and members of the Audit Commission
In accordance with the resolution of the annual General Shareholders’ Meeting of the Bank
held on 3 June 2011, remuneration for members of the Supervisory Board and members of the
Audit Commission amounted to the following:

Remuneration paid to members of the Supervisory Board in 2011 amounted to RUB
11.9 mln (RUB 24 mln in 2010)
 Remuneration for 2010 paid to members of the Audit Commission in 2011 and related
to their participation in this control body of the Bank amounted to RUB 3 mln.
51
Major transactions
During 2011, Sberbank of Russia did not conduct any transactions recognized as major
transactions in accordance with the Federal Law On Joint-Stock Companies or other transactions
to which the procedure of approval of major transactions applies in accordance with the Charter
of Sberbank of Russia OJSC.
Non arm’s-length transactions
The list of transactions recognized as non arm’s-length transactions in accordance with the
Federal Law On Joint-Stock Companies and conducted by Sberbank of Russia in 2011 is given
below. All such transactions were approved by the Supervisory Board of the Bank.
1
2
Counterparty: Bank of Russia
Interested parties: S.M. Ignatiev, G.I. Luntovsky, A.V. Ulyukaev, N.Y. Ivanova, S.A. Shvetsov, K.B. Shor
Agency contract for performance by the Agent
Actions related to the sale of no more than
(Sberbank of Russia OJSC) for, on behalf of and at the
1,712,994,999 ordinary shares of Sberbank of
expense of the Principal (Bank of Russia) of legal and
Russia OJSC
other acts related to the sale of ordinary shares of
Sberbank of Russia OJSC owned by the Principal
Raising loans of the Bank of Russia secured by OAO
Total loan amount: no more than
Bank VTB (as part of the General Credit Agreement for
RUB 100 bn
provision of loans by the Bank of Russia secured by
Lending period: up to 1 year
assets or sureties)
Suretyship agreement between Sberbank of Russia
Total loan amount: no more than
OJSC (surety) and the Bank of Russia (creditor) for the RUB 100 bn
fulfillment of obligations by OAO Bank VTB (debtor)
Lending period: up to 1 year
for loan repayment
Counterparty: DB AO Sberbank (Republic of Kazakhstan)
Interested parties: A.F. Golikov, S.N. Gorkov
Contract between Sberbank of Russia OJSC and DB
The volume of transactions concluded in rubles
AO Sberbank (Republic of Kazakhstan) for general
and foreign currency for which the settlements
conditions of purchase/sale and acceptance/transfer of
have not been completed in part or in full shall
currency in cash for collection and transactions under
not exceed the amount equivalent to USD 100
the contract
mln.
Conclusion of transactions on the Precious Metals
The volume of transactions concluded in rubles
Market between Sberbank of Russia OJSC and DB AO and foreign currency for which the settlements
Sberbank (Republic of Kazakhstan)
have not been completed in part or in full shall
not exceed the amount equivalent to USD 50 mln.
Sale to of DB AO Sberbank (Republic of Kazakhstan)
Such sale is concluded on a prepaid basis; the
coins made of precious metals by Sberbank of Russia
volume of transactions concluded in rubles for
OJSC
which the settlements have not been completed in
part or in full shall not exceed RUB 50 mln.
Conclusion of foreign exchange transactions between
The volume of foreign exchange transactions for
Sberbank of Russia OJSC and DB AO Sberbank
which the settlements have not been completed in
(Republic of Kazakhstan)
part or in full shall not exceed the amount
equivalent to USD 600 mln.
Deposits for placement of Sberbank of Russia OJSC
The lump sum of deposited funds shall not exceed
funds in DB AO Sberbank (Republic of Kazakhstan)
the amount equivalent to USD 600 mln.
Deposits for borrowing of DB AO Sberbank (Republic The lump sum of borrowed funds shall not exceed
of Kazakhstan) funds by Sberbank of Russia OJSC
the amount equivalent to USD 600 mln.
Conclusion of additional agreements for the procedure Rates and penalties are set for delayed overdraft
for international Blitz transfers to correspondent
credit repayment for USD and euro
account contracts of a non-resident bank in USD and
euro
Issue of a license for the right to use trademarks in the
Cost of the license: RUB 488 thousand.
form of the bank’s logo
Indemnity agreement between DB AO Sberbank
Indemnity amount: USD 52.6 mln.
(Republic of Kazakhstan) and Sberbank of Russia
Indemnity period: till 22 December 2016.
OJSC
Indemnity agreement between DB AO Sberbank
Indemnity amount: USD 3.5 mln.
52
3
4
(Republic of Kazakhstan) and Sberbank of Russia
Indemnity period: till 31 January 2013.
OJSC
Indemnity agreement between DB AO Sberbank
Indemnity amount: USD 180.5 mln.
(Republic of Kazakhstan) and Sberbank of Russia
Indemnity period: till 3 December 2013.
OJSC
Indemnity agreement between DB AO Sberbank
Indemnity amount: USD 221.8 mln.
(Republic of Kazakhstan) and Sberbank of Russia
Indemnity period: till 4 March 2014.
OJSC
Indemnity agreement between DB AO Sberbank
Indemnity amount: USD 20.5 mln.
(Republic of Kazakhstan) and Sberbank of Russia
Indemnity period: till 8 December 2015.
OJSC
Counterparty: AO Sberbank of Russia (Ukraine)
Interested parties: H.O. Gref, S.N. Gorkov, A.V. Bazarov, D.A. Bugrov, A.V. Morozov, V.M. Orlovskiy
Conclusion of foreign exchange transactions between
The volume of transactions for which the
Sberbank of Russia OJSC and AO Sberbank of Russia
settlements have not been completed in part or in
(Ukraine)
full shall not exceed the amount equivalent to
USD 400 mln.
Deposits for placement of Sberbank of Russia OJSC
The lump sum of deposited funds shall not exceed
funds in AO Sberbank of Russia (Ukraine)
the amount equivalent to USD 850 mln.
Deposits for borrowing of AO Sberbank of Russia
The lump sum of borrowed funds shall not exceed
(Ukraine) funds by Sberbank of Russia OJSC
the amount equivalent to USD 400 mln.
Sale of AO Sberbank of Russia (Ukraine) coins made
Such sale is concluded on a prepaid basis; the
of precious metals by Sberbank of Russia OJSC
volume of transactions concluded in rubles for
which the settlements have not been completed in
part or in full shall not exceed RUB 50 mln.
Conclusion of additional agreements for the procedure Rates and penalties are set for delayed overdraft
for international Blitz transfers to correspondent
credit repayment for USD and euro
account contracts of a non-resident bank in USD and
euro
Purchase of ordinary registered shares of an additional
Total transaction amount: UAH 852.8 mln
issue of AO Sberbank of Russia (Ukraine)
Issue of a license for the right to use trademarks made
Cost of the license: RUB 222.8 thousand.
as the Bank’s logo
Issue of a license for the right to use trademarks made
Cost of the license: RUB 69.6 thousand.
as the Bank’s logo
Counterparty: OAO BPS-Sberbank (Republic of Belarus)
Interested parties: S.N. Gorkov, A.A. Karamzin, D.A. Bugrov, V.M. Orlovskiy, A.V. Morozov
Additional agreement for the procedure for
The terms and conditions stipulate the prices for
international Blitz transfers to correspondent account
international express Blitz money transfers,
contracts of a non-resident bank in USD and euro
payment of such transfers, and acceptance of
cancellation applications. The terms and
conditions for provision credit in the form of an
overdraft under correspondent accounts are also
set.
Conclusion of transactions on the Precious Metals
For each type of transactions with precious
Market between Sberbank of Russia OJSC and OAO
metals, the volume of transactions for which the
BPS-Sberbank (Republic of Belarus)
settlements have not been completed in part or in
full shall not exceed the amount equivalent to
USD 700 mln.
Conclusion of foreign exchange transactions between
The volume of foreign exchange transactions for
Sberbank of Russia OJSC and OAO BPS-Sberbank
which the settlements have not been completed in
(Republic of Belarus)
part or in full shall not exceed the amount
equivalent to USD 900 mln.
Deposits for placement of Sberbank of Russia OJSC
The lump sum of deposited funds shall not exceed
funds in OAO BPS-Sberbank (Republic of Belarus)
the amount equivalent to USD 900 mln.
Deposits for borrowing of OAO BPS-Sberbank
The lump sum of borrowed funds shall not exceed
(Republic of Belarus) funds by Sberbank of Russia
the amount equivalent to USD 900 mln.
OJSC
53
Addendum to the Contract for opening and keeping a
correspondent account of a non-resident bank in BYR
5
6
Long-term subordinate loan agreement (borrower –
OAO BPS-Sberbank (Republic of Belarus))
Counterparty: ZAO Sberbank AST
Interested parties: S.K. Kuznetsov, V.M. Orlovskiy
Issue of a simple (non-exclusive) license of ZAO
Sberbank AST to Sberbank of Russia OJSC for the
right to use protected trademark elements
Agreement on electronic document interchange as part
of the electronic tender process for placing orders for
the supply of goods, works and services for Sberbank
of Russia OJSC
Amendments to the General Agreement between
Sberbank of Russia OJSC and ZAO Sberbank AST
governing the aspects of closed electronic auctions
held as part of the project to reformat the Bank’s
branch office network
Counterparty: OAO Universal Electronic Card
Interested party: V.M. Orlovskiy
Rental of non-residential premises of Sberbank of
Russia OJSC (lessor) by OAO Universal Electronic
Card (lessee)
Transactions related to the entry of Sberbank of Russia
OJSC to the DUET Program System as a Principal
Member of the System and performance of functions
of a settlement bank in such System
Extension of a non-revolving credit facility to OAO
Universal Electronic Card by Sberbank of Russia
OJSC
Opening by the Bank of OAO Universal Electronic
Card account in the currency of the Russian Federation
in order to accumulate funds for discharging
obligations during interbank settlements for
transactions with the use of universal electronic cards
within the Universal Electronic Card Single Payment
and Service System (UEC SPSS)
Transactions governing the relations between
Sberbank of Russia OJSC and OAO Universal
Electronic Card within the Universal Electronic Card
Single Payment and Service System (UEC SPSS)
The procedure for crediting and debiting the
correspondent account of Sberbank of Russia
OJSC opened with OAO BPS-Sberbank
(Republic of Belarus)
Subordinate loan amount: EUR 40 mln. Lending
period: up to 7 years.
Cost of the license: RUB 118
The agreement is concluded on a free-of-charge
basis for an indefinite period.
The amount of the commission is fixed,
irrespective of the volume of purchase.
Rental of non-residential premises in the city of
Moscow for a period of 11 months with extension
Conclusion of an Agreement for participation in
the DUET Program System as a Principal
Member of the System
Conclusion of an Agreement for performance of
functions of a Settlement Bank within the DUET
Program System
Conclusion of an Information Services
Agreement
Conclusion of an Agreement for a Special Bank
Account in the Currency of the Russian
Federation
Conclusion of an Agreement for electronic
document exchange with OAO UEC
Conclusion of an Agreement for the primary issue
of DUET cards
Available facility: RUB 500 mln
Lending period: up to 6 months
The cost of services and terms and conditions for
accrual of interest on cash balances are
determined.
Interchange of electronic documents between
OAO Universal Electronic Card and Sberbank of
Russia OJSC under the Agreement for
performance of functions of a settlement bank
within UEC SPSS and the Agreement for a
Special Bank Account in the Currency of the
Russian Federation
Provision of services by the Bank to the UEC
SPSS Operator for ranking and monitoring the
rating of UEC SPSS candidate banks and
participating banks and communication of such
information to the UEC SPSS Operator
54
Provision of services, on a paid basis, for clearing
payments between UEC SPSS participating banks
and the UEC SPSS Operator for transactions
using universal electronic cards
Provision of information to the UEC SPSS
Operator by the Bank about balances on
correspondent accounts and bank deposit
accounts, as well as on transfer orders
Establishment of the procedure and conditions for
relations between the Operator and the Member
within UEC SPSS
7
8
Counterparty: OOO Sportloto
Interested party: H.O. Gref
Provision of agency services under the Agreement for
distribution of lottery tickets and payment of cash
prizes
Counterparty: OAO Krasnaya Polyana
Interested party: S.K. Kuznetsov
Participation in the shared construction of a facility in
the Gornaya Karusel Sports and Tourist Complex
Participation in the shared construction of a hotel
complex in the Gornaya Karusel Sports and Tourist
Complex
9
10
Distribution of lottery tickets to support the
organization and holding of the XXII Winter
Olympic Games and the XI Winter Paralympic
Games in 2014 in Sochi.
The facility is designed to house the Corporate
Center of Sberbank of Russia OJSC. The facility
will be transferred in Q3 2013.
The facility is designed to house a business unit
of Sberbank of Russia OJSC (South-Western
Bank). The facility will be transferred in Q3
2013.
Amendments to the terms and conditions
regarding the procedure and period of payment
Amendments to the terms and conditions of
transactions under the agreements for participation in
the shared construction of facilities to house the
Corporate Center of Sberbank of Russia OJSC and a
business unit of South-Western Bank
Agreement for extension of a non-revolving credit
Available facility: RUB 2.0 bn Lending period:
facility for financing construction costs of the Gornaya up to 6 months
Karusel Sports and Tourist Complex and a complex of
ski jumps
Agreement for the direct debit of funds from the
Available facility: RUB 2.0 bn Lending period:
borrower’s accounts until loan repayment
up to 6 months
Amendments to the Agreement for extension of a non- With regard to the period, interest rate, security,
revolving credit facility
payment for early repayment, and penalties
Counterparty: ZAO MICEX
Interested parties: B.I. Zlatkis, A.V. Ulyukaev, S.A. Shvetsov, N.Y. Ivanova, A.F. Golikov
Amendments to the terms and conditions of the
The amendments are related to the replacement of
Agreement for provision of integrated process service
organizations acting as regional representatives of
for purchase and sale of foreign currency on the stock
ZAO MICEX in the Siberian and North-West
exchange market
Federal Districts
Provision of integrated process service by the technical
center (ZAO MICEX) to the user (Sberbank of Russia
OJSC) on the ZAO MICEX Stock Exchange terminal
market
Acquisition of ordinary shares of Closed Joint-Stock
Ordinary shares of ZAO MICEX in an amount
Company “Moscow Interbank Currency Exchange”
not exceeding 6,200 shares
(ZAO MICEX) by Sberbank of Russia OJSC
Accession to the Framework Agreement between ZAO Accession for the purpose of acquiring the rights
MICEX and OAO RTS majority shareholders with
and obligations set forth in such Framework
regard to combination of ZAO MICEX and OAO RTS Agreement when becoming its party
businesses
Counterparty: ZAO MICEX Stock Exchange
Interested parties: B.I. Zlatkis, A.V. Ulyukaev, S.A. Shvetsov, N.Y. Ivanova, A.F. Golikov
Determination of mutual rights and obligations of ZAO
MICEX Stock Exchange and Sberbank of Russia OJSC
in connection with the Bank’s participation in trading on
ZAO MICEX Stock Exchange terminal market
55
11
12
13
14
15
16
Counterparty: OOO MICEX Finance
Interested parties: B.I. Zlatkis, A.V. Ulyukaev, S.A. Shvetsov, N.Y. Ivanova, A.F. Golikov
Acquisition of ordinary shares of Open Joint-Stock
Ordinary shares of OAO RTS in the amount of
Company RTS Stock Exchange (OAO RTS) by
1,190,588 shares
Sberbank of Russia OJSC
Counterparties: ZAO MICEX, MICEX (Cyprus) Limited, Investment Company Troika Dialogue COJSC
Interested parties: B.I. Zlatkis, S.A. Shvetsov, N.Y. Ivanova
Cession by Investment Company Troika Dialog
COJSC, and acceptance by Sberbank of Russia OJSC,
of rights, benefits and obligations under the put option
agreement between MICEX (Cyprus) Limited and
OAO RTS shareholders
Counterparty: ZAO AKB National Clearing Center
Interested party: A.F. Golikov
Brokerage agreement between Sberbank of Russia
Accession of the counterparty to the Terms and
OJSC and ZAO AKB National Clearing Center
Conditions for Provision of Brokerage Services
by Sberbank of Russia OJSC
Purchase and sale of foreign currency on the stock
The volume of transactions concluded in rubles
exchange market within the Unified Trading Session
and foreign currency for which the settlements
of interbank currency exchanges
have not been completed in part or in full shall
not exceed the amount equivalent to USD 10 bn.
Conclusion of foreign exchange transactions between
The volume of foreign exchange transactions for
Sberbank of Russia OJSC and ZAO AKB National
which the settlements have not been completed in
Clearing Center
part or in full shall not exceed an amount
equivalent to USD 200 mln.
Deposits for borrowing of ZAO AKB National
The lump sum of borrowed funds shall not exceed
Clearing Center funds by Sberbank of Russia OJSC
an amount equivalent to USD 200 mln.
Development of correspondent banking relations
Opening of a correspondent loro account for the
respondent (ZAO AKB NCC) in the currency of
the Russian Federation
Counterparty: NKO ZAO NRD
Interested party: B.I. Zlatkis
Development of correspondent banking relations
Opening of a correspondent loro account for the
respondent (NKO ZAO NRD) in the currency of
the Russian Federation
Counterparty: S.N. Gorkov
Interested party: S.N. Gorkov
Provision of a loan to purchase real property
As required by regulatory documents of Sberbank
of Russia OJSC with regard to lending to retail
clients
Counterparty: Joint-Stock Company Atomic Energy Power Corporation
Interested parties: A.V.Dvorkovich, A.R.Belousov
Suretyship agreement with OJSC Atomic Energy
Available facility: RUB 20 mln Period of
Power Corporation for the fulfillment of obligations
financing: up to 2 months
under the revolving credit facility extended to FGUP
GNTs RF TRINITI to Sberbank of Russia OJSC
Agreement for the direct debit of funds from the
Validity: until the discharge of obligations under
accounts of OJSC Atomic Energy Power Corporation
the Suretyship Agreement
to fulfill the obligations of FGUP GNTs RF TRINITI
Suretyship agreement for the fulfillment of obligations Available facility: RUB 100 mln Lending period:
under the Agreement for extension of a revolving
up to 18 months
credit facility for the borrower, FGUP Eleron
Agreement for the direct debit of funds from the
Validity: until the discharge of obligations under
accounts of OJSC Atomic Energy Power Corporation
the Suretyship Agreement
accounts to fulfill the obligations of FGUP Special
Research and Production Association Eleron
Suretyship agreement for the fulfillment of obligations Available facility: RUB 40 mln Lending period:
under the Agreement for extension of a revolving
up to 18 months
credit facility for FGUP Research and Production
Association V.G. Khlopin Radium Institute
56
17
18
19
20
Agreement for the direct debit of funds from the
Validity: until the discharge of obligations under
accounts of OJSC Atomic Energy Power Corporation
the Suretyship Agreement
accounts to fulfill the obligations of FGUP Research
and Production Association V.G. Khlopin Radium
Institute
Suretyship agreement for the fulfillment of obligations Available facility: RUB 70 mln Lending period:
under the Agreement for extension of a revolving
up to 12 months
credit facility for FGUP RF State Scientific Center –
A.I. Leypunsky Institute of Physics and Power
Engineering
Agreement for the direct debit of funds from the
Validity: until the discharge of obligations under
accounts of OJSC Atomic Energy Power Corporation
the Suretyship Agreement
accounts to fulfill the obligations of FGUP RF State
Scientific Center – A.I. Leypunsky Institute of Physics
and Power Engineering
Suretyship agreement for the fulfillment of obligations Available facility: RUB 50 mln Lending period:
under the Agreement for extension of a revolving
up to 6 months
credit facility for the borrower, FGUP Russian Federal
Nuclear Center – Academician E.I. Zababakhin AllRussian Research Institute for Applied Physics
Counterparty: OAO Ilyushin Finance Co. Interested parties: A.L. Kudrin, E.S. Nabiullina
Suretyship agreement for the fulfillment of obligations Available facility: USD 62.4 mln. Lending
under the Agreement for extension of a non-revolving
period: up to 7 years.
credit facility for the borrower, OOO IFC Asset
Management
Agreement for the direct debit of funds from the
Validity: until the discharge of obligations under
accounts of OAO Ilyushin Finance Co. accounts to
the Suretyship Agreement
fulfill the obligations of OOO IFC Asset Management
Counterparty: Magnitogorsk Iron and Steel Works OJSC
Interested party: A.V. Dvorkovich
Agreement for opening of a revolving credit facility
Available facility: RUB 4.5 bn Lending period:
for Magnitogorsk Iron and Steel Works OJSC
up to 2 years.
Counterparty: Russian Technologies State Corporation
Interested party: E.S. Nabiullina
Suretyship agreement for the fulfillment of obligations Available facility: RUB 800 mln Lending period:
under the Agreement for extension of a non-revolving
up to 2 years.
credit facility for the borrower, OOO RT-Capital
Agreement for opening of a revolving credit facility
Available facility: RUB 700 mln Lending period:
for the Russian Technologies State Corporation
up to 1 year
Counterparty: OJSC MMC Norilsk Nickel
Interested party: D.A. Bugrov
Agreement for opening of a non-revolving credit
Available facility: RUB 9 bn Lending period: up
facility for OJSC MMC Norilsk Nickel
to 5 years.
Suretyship agreement for the fulfillment of obligations Available facility: RUB 61 bn Limit of liability
under the Agreement for extension of a non-revolving
for the surety: RUB 13.5 bn Lending period: up to
credit facility for the borrower, OJSC Kolskaya MMC. 5 years.
Share capital
As of 1 January 2012, the Bank's charter capital was 67.76 billion rubles. This consists of
21,586,948,000 common and 1,000,000,000 preferred shares with a par value of 3 rubles each.
The majority of voting shares (60.25 %) are owned by the Bank of Russia.
Sberbank is an open market company. The bank's shares are publicly traded on the Russian
stock exchange (included in the MICEX-RTS stock exchange first level quotation list A). In
2011, Sberbank shares remained the most liquid instruments of the Russian stock exchange, the
average annual turnover of the Bank's common shares on MICEX accounted for 34% of the
stock market's turnover.
57
In June 2011, Sberbank of Russia launched a program of American depositary receipts for
its equity stock. For greater convenience for its foreign investors, the Bank organized access to
American depositary receipts on the London and Frankfurt stock exchanges.
In 2011, share prices of Russian issuers were negatively affected by global stock market
trends and the debt problems of European Union countries led to an even greater decrease in
share prices of European and Russian banks. The MICEX index fell by 17%, RTS by 22%, and
Sberbank common stock by 24 % over the year.
Despite the decrease in share price, Sberbank was still the 19th largest international bank
by size of market capitalization according to data from FT Global 500.
Sberbank share price and capitalization:
Equity share (MICEX), rub. per share
Preferred share (MICEX), rub. per share
MICEX index, p.
RTS index, p.
Market capitalization, billion USD
Source: Bloomberg‚ market capitalization – FT Global 500
1 Jan 12
79.4
59.2
1402
1382
54.8
1 Jan 11
104.4
75.1
1688
1770
76.1
In February 2012, the authoritative international magazine The Economist placed Sberbank
in 2nd place among the best stocks for the past decade: 100 US dollars invested 10 years ago in
Sberbank shares would be worth 3722 dollars on the magazine's publication date. Only Apple
Inc. outperformed Sberbank (3919 dollars). In addition to Sberbank, only one Brazilian bank
entered the top 10, in 8th place.
Report on payment of declared and accrued dividends
The rights of shareholders to receive dividends and payment procedures are fixed in the
Bank's Charter and dividend Policy. Both documents are published on the Bank's corporate
internet website at www.sbrg.ru, www.sberbank.ru.
Owners and shareholders of common and preferred stock have the right to receive
dividends. Shareholders and owners of preferred shares have the right to receive dividends at a
value no less than 15% of the nominal price of the preferred shares. In accordance with
Sberbank's Charter, dividends are paid to shareholders once a year in cash by transfer to the
shareholders' accounts. The decision to pay dividends and the amount is taken by the annual
General Shareholders’ Meeting based on the recommendations of the Bank's Supervisory Board.
These recommendations take into account the interests of the shareholders and the Bank in terms
of further business development.
In the reporting year, the volume of money designated for Sberbank of Russia share
dividends was increased to 12.1% of the Bank's net earnings for 2010, calculated in accordance
with Russian accounting standards (RAS).
Dividend
payment year
for 2006
for 2007
for 2008
for 2009
for 2010
Share of bank
net earnings, in
accordance with
RAS, designated
for dividend
payment
10.0%
10.0%
10.0%
10.0%
12.1%
Amount of
declared
(accrued)
dividends based
on 1 common
share*, rubles
0.3855
0.5100
0.4800
0.0800
0.9200
Amount of
declared
(accrued)
dividends based
on 1 preferred
share*, rubles
0.4650
0.6500
0.6300
0.4500
1.1500
Amount of declared
(accrued) dividends in
total for all common
and preferred shares,
thou. rubles
Amount of paid**
dividends in total
for all common and
preferred shares,
thou. rubles
8,786,757.3
11,659,269.8
10,991,636.6
2,176,955.8
21,009,992.2
8,786,757.3
11,659,269.8
10,966,205.4
2,169,414.9
20,942,903.3
Date of the General
Shareholders’ Meeting
where the decision on
payment of (declared)
dividends was taken
29.06.2007
27.06.2008
26.06.2009
04.06.2010
03.06.2011
* Dividend amount for one share for 2006 calculated in accordance with the current Bank share par value of 3 rubles.
** Reason for non-payment of declared dividends was incorrect shareholder payment details.
58
In August 2011, the Supervisory Board of Sberbank approved a new dividend policy. As
part of the plans for optimizing capital structure and for forming long-term relationships with
shareholders, the Bank is ready, over three years, to increase consistently dividend payments to
20% of net earnings accrued to Bank shareholders and determined on the basis of annual
consolidation of the Bank's reporting in accordance with International Financial Reporting
Standards (IFRS). In addition, dividends, as before, shall be paid from the Bank's net earnings,
calculated in accordance with Russian laws, ie RAS.
Size of Sberbank of Russia share dividends for 2011, recommended by the Supervisory
Board to the annual General Shareholders’ Meeting for approval:
Share of Bank net earnings
in accordance with IFRS
15%
Share of bank net
earnings, in accordance
with RAS, designated for
dividend payment
Amount of declared
(accrued) dividends based
on 1 common share*,
rubles
15.3%
2.08
Amount of declared
(accrued) dividends based
on 1 preferred share*,
rubles
2.59
Amount of declared (accrued)
dividends in total for all common
and preferred shares, thou.
rubles
47,490,581.8
The decision on the payment and size of dividends for 2011 will be approved by the annual
General Shareholders’ Meeting on 1 July 2012. Information on this will be published on
Sberbank's website (www.sbrf.ru; www.sberbank.ru).
Code of Corporate Conduct Compliance
Sberbank complies with the principles and rules set out in the Corporate Code of Conduct
approved by the bank's General Shareholders’ Meeting. The Code declares unconditional
compliance with laws and application of ethical business conduct standards for all members of
the business community. A priority of the Bank's corporate conduct is the respect for rules and
legal interests of shareholders and clients, transparency, efficient working practices, support for
financial stability and profitability.
The bank is continually improving its corporate governance. During the reporting year, the
Bank's management board approved the conflict of interest management policy, which
establishes the conduct and measures for avoiding conflicts of interest or minimizing their
consequences if they arise. The responsibility for taking decisions on regulating conflicts of
interest is placed on the appropriate committee of the Bank's management board and regional
banks. There are restrictions for employees concerning holding more than one position and
business activities. Rules have been established for receiving gifts and incentives and
transactions with interested parties.
Sberbank is actively implementing international practice in protecting investor interests
and making its own financial assets attractive to investors. Bank insiders, members of the
Supervisory Board, members of the Management Board and Bank employees, do not have the
right to perform transactions with the Bank's securities and its subsidiaries during close periods
(the period when annual and quarterly reporting is prepared). In order to restrict the use of
insider information, technological measures have been introduced which prevent the use of
mobile communication and mobile access to the internet during meetings of the Bank's executive
bodies.
The Bank has an independent division, directly subordinate to the CEO and Chairman of
the Bank's Management Board, which is responsible for control of illegitimate use of insider
information and for enforcing the requirements of Federal Law No. 224-FZ dated 27 July 2010
On Prevention of the Illegitimate Use of Insider Information and Market Manipulation and on
Amendments to Certain Laws of the Russian Federation. The list of information relating to
Sberbank insider information, which is published on the Bank's website, has been approved.
59
To increase capitalization and reduce investment risk, Sberbank is actively working on
improving its transparency and disclosure. The systematic online internet broadcast of press
briefings by Bank spokespersons has continued. Thirty press briefings were broadcast in 2011.
The most important events involving Sberbank in Russia and the world are also broadcast online
on the Bank's website. In addition, the Saint Petersburg International Economic Forum, the
International Financial Conference on 12 November and the X International Investment Forum
Sochi 2011 were broadcast separately. An archive of the most important events in which the
Bank has been involved is available on the website for anyone interested.
The Bank's efforts to increase transparency and disclosure have received a high rating from
the professional community. In the autumn of 2011, Interfax and АК&М, accredited agencies for
disclosing information to the stock exchange, named Sberbank of Russia as the winner of the
annual Prize for an Active Corporate Policy on Information Disclosure.
At the same time Sberbank won the RTS and MICEX federal competition for annual
reports. Sberbank won in the nomination for Best Interactive Annual Reports, came 2nd in the
nomination Best Design and Printing of Annual Reports and 3rd in the nomination Best Annual
Reports Transparency for Companies with Capitalization above 100 billion rubles.
60
10. Branch network
Branch network in the Russian Federation
An extensive branch network is one of the bank's main competitive advantages. The
regional bank structure consists of 19,200 divisions and is represented in all parts of the country
and in every constituent entity of the Russian Federation.
Branch network structure in the Russian Federation
units
Total bank divisions, inc.
Regional banks
Branch offices
Internal structural divisions (ISD) total, inc.
Total additional offices, of which:
– specialize in serving retail clients
– universal
– specialize in serving legal entities
Operational offices
Operational cash desks outside the cash operating units
Mobile cash offices
1 Jan 12
19,249
17
505
18,727
10,494
7,997
2,373
124
588
7,547
98
1 Jan 11
19,420
17
521
18,882
10,069
7,429
2,515
125
236
8,492
85
The Bank continues to modernize its branch network opening new and improving the
layout of existing branches. In 2011, 443 branches were opened, about 300 bank service points
were relocated and 598 service points were closed. Urban ISDs were closed as their location did
not comply with geomarketing criteria, and also because of the unsatisfactory condition of the
buildings, as part of the program for Redesigning Branch Network Divisions. Rural ISDs were
closed as the condition of the premises made it impossible to perform banking operations, as
well being consistently unprofitable and lacking development prospects. In remote areas, with a
poorly developed transport infrastructure, mobile branches have replaced closed stationary ones.
Where technically possible, ATMs and information-payment terminals have been opened in rural
areas, which will enable customers to perform essential banking operations.
Geographical structure in the Russian Federation
%
central cities of RF constituent entities
cities with population above 100 thousand
other towns
urban settlements
rural settlements
1 Jan 12
20.7%
7.5%
17.6%
6.8%
47.4%
1 Jan 11
20.4%
7.2%
16.8%
6.8%
48.8%
As well as the network itself, the branch network management system is being improved.
The Bank is uniting branches at the level of RF constituent entities. In 2011 sixteen branches
were reorganized.
In 2011, the large scale program for redesigning branch network divisions began, which
is aimed at standardizing offices, implementing new sales models and a new corporate style and
brand. In 2011, 871 new format branches opened. Most of the redesigned branches were base
offices (60%) and an expansion of the flagship format (30%). The rest consisted of special
format branches, business development centers, self-service offices and branches for VIP clients.
Over 76% of the redesigned branches were opened in areas of most importance for business
development, in cities with populations above 100 thousand, including cities with over a million
people.
61
Development of the bank network and subsidiaries abroad
As of 1 January 2012 Sberbank had one foreign branch (India) and two foreign
representative offices (Germany and China). Sberbank group includes 3 subsidiary banks
(Kazakhstan, Ukraine and Belarus).
In February 2012, Sberbank completed the acquisition of 100 % of Volksbank
International AG, the eastern European division of Oesterreichische Volksbanken AG. The deal
gave Sberbank access to markets in Austria, the Czech Republic, Hungary, Croatia, Slovenia and
Bosnia - Herzegovina.
Sberbank also acquired 99.145 % of the Swiss bank SLB Commercial Bank AG, which it
plans to use as a base for developing its European business for syndicated lending and trade
finance, as well as a number of other products for large corporate clients.
Indian branch
Sberbank's branch in India (New Delhi) was established as a strategic springboard for
developing the Group's business and, most of all, to operate as a settlement platform for foreign
trade between India and Russia, as well as between India and CIS countries where Sberbank
operates. As part of the Third India-Russia Forum: Business-Dialogue in October 2011,
Sberbank was awarded the prize of Best Russian Company in India.
Representative office in Germany
The priority area for the Bank's representative office in Germany is to form and support
Sberbank's image in Germany and other European Union countries as a major reliable bank and
to assist the Bank's business divisions with the cooperation of German partners.
In 2011, the representative office helped organize significant negotiations, during which a
framework loan agreement was signed with the leading German bank Commerzbank AG on
financing the supply of capital goods and services from Germany to Russia with export credit
agency cover. All-round support was provided during acquisition of Volksbank International
AG. The representative office organized the meeting of the Club of Economic Wise Men, which
was attended by leading individuals from German politics and business. It also organized the
Bank's management participation in the European Finance Week, a major platform for meeting
European political and business leaders as well as a number of other important events.
Representative office in China
The main tasks of Sberbank's representative office in China are to develop partnerships
with Chinese banking, commercial and government structures in order to promote the business
of Sberbank group and its clients in the region. In 2011, the bank actively worked with Chinese
financial institutes on extending cooperation in the field of correspondent relations and trade
finance.
In December 2011, the representative office organized the Bank's presentation in Beijing
for representatives from Chinese financial institutions with the participation of regional and three
subsidiary banks of Sberbank. The presentation was the first event that Sberbank had held of
such a scale in China and attracted great interest from Chinese business circles and government
authorities.
Subsidiary banks
In 2011, the focus for subsidiary banks was to build their banking business as part of the
single Sberbank system. In April, the Single Tariff Area project began. Under this program,
62
holders of international bank cards from any of the Group's banks can be served in any the
Group's banks at loyalty tariffs. The program for introducing credit risk management technology,
Loan Factory, has been opened in subsidiaries. All subsidiaries have implemented the program
CRM Siebel. Oliver Wyman's new credit process has begun to be implemented. The subsidiaries
are included in the program for integrating Group risk management. Key decisions have been
taken on integrating the IT systems of subsidiary banks, including the list of common
technological IT platforms.
SBERBANK OF RUSSIA OJSC (Ukraine)
The subsidiary bank is one of the fastest growing Ukrainian banks. The bank's assets 22 for
2011 increased by 79 % to 67.8 billion rubles and the loan portfolio increased by 104% and
reached 50.3 billion rubles. The branch network grew to 130 units. At the end of 2011 the
National Bank of Ukraine included SBERBANK OF RUSSIA OJSC in the group of leading
Ukrainian banks in terms of assets.
Over the year many of the bank's national market rankings have improved: in terms of net
assets the bank moved from 22nd to 17th place, for loans to retail clients from 19th to 11th, for
funds of legal entities from 22nd to 15th and for funds of retail clients from 24th to 17th. The
subsidiary bank, as before, has one of the highest growth rates for main bank indicators among
its competitors in the Ukrainian market. Over the reporting year, the bank's activities were
profitable, which enabled it to earn 923.5 million rubles net earnings.
In 2011, bonds to the value of 750 million hryvnia (about 3.0 billion rubles) were issued
and placed. In order to support the high development rate of the Ukrainian subsidiary in
accordance with its business plan, in September 2011 Sberbank of Russia acquired additional
shares in the subsidiary bank to the sum equivalent to 107 million US dollars.
Subsidiary Bank Sberbank OJSC (Kazakhstan)
The subsidiary bank has been operating in Kazakhstan for 5 years, it has 95 divisions in the
country and its head office is in Almaty. It has a client base of over 15 thousand business and
222 thousand retail clients. The bank has 1,600 ATMs and self-service terminals.
In 2011 the bank made net earnings of 1.5 billion rubles. The loan portfolio of legal entities
increased by 114 % and for retail clients by 105 %. The Kazakhstan bank has the largest assets in
the international Sberbank network. In the ratings for second level banks in the financial system
of Kazakhstan, the subsidiary bank is 4th in terms of profit, 7th for asset size and 8th for the size
of its equity capital. In 2011, the subsidiary bank was awarded the status of US dollar marketmaker on the Kazakhstan Stock Exchange (KASE) and the additional status of ruble marketmaker.
A significant growth in active operations led to a decrease in the capital adequacy ratio
from 17.2% to 12.4%. Therefore, the bank began taking steps to increase capital adequacy: it
issued subordinated bonds and an additional equity issue. In 2011, the Committee for the Control
and Supervision of the Financial Market and Financial Organizations of the National Bank of the
Republic of Kazakhstan registered the second bond issue prospectus of DB AO Sberbank for 100
billion tenge. The issue was entered on the State Register of Securities.
BPS Sberbank OJSC (Belarus)
The subsidiary bank's client base consists of over 29 thousand business and 1.5 million
retail clients. The branch network has 195 divisions. The bank occupies 3rd place on the
financial market of Belarus in terms of assets, loans and client funds. In 2011 BPS-Sberbank
OJSC earned a net earnings of 1.8 billion rubles, the loan portfolio more than doubled in the
22
The figures for subsidiary banks are converted into Russian rubles at the exchange rate set by the Bank of Russia
(balance sheet figures are converted at the exchange rate set on the reporting date; profit and loss figures are
converted at the average rate for the period).
63
national currency. The bank's share in the Belarus banking sector grew over the year: assets from
7.7% to 9.8%, corporate client loans from 8.2% to 10.3%, individual deposits from 9.3% to
10.7% and profit before annual adjustments from 8% to 10%.
Due to the difficult situation of the Belarus market in 2011, the subsidiary bank took a
number of anti-crisis measures to ensure stable operations. These included a limit on loan
portfolio growth, active work on preventing a growth in outstanding debts, the creation of
additional reserves, capital growth through profit capitalization and obtaining subordinated
loans.
In 2011, work began on bank rebranding which included the bank changing its name from
BPS-Bank OJSC to BPS-Sberbank OJSC.
64
11. Human Resources
The wide-scale branch network redesign program, which began in 2011, had an effect on
people in general as well on increasing the need for staff.
In 2011, the average number of Sberbank of Russia employees decreased by 5,949 to
231,304. Most bank employees, 53%, have worked at the bank from 3 to 15 years and 20% have
worked for over 20 years. 34% of employees are under 30 years old and 10% are nearing
retirement or are of retirement age. Over 74% have a higher education qualification. Most
employees work directly with clients: 41% in bank service offices, 6% in operational divisions
and 6% in collection divisions.
Staff motivation
In 2011, Sberbank continued to introduce new staff motivation principles in order to create
a transparent and flexible system, which takes into account the specifics of work and establishes
a direct relation between staff remuneration and the results of their work.
The graded staff motivation system has been implemented in the head office and regional
banks. More than 180 thousand employees have been transferred to the new graded salary
system. More than 4 thousand divisions which employ at least 6 people have been introduced
into the staff motivation system, which is unique in the world: the monthly bonus for employees
who work with the public depends directly on the number of their sales and transactions. The
effect of implementation: revenue from the sale of bank products grew more than 1.5 fold, and
work productivity grew 8 %.
The Bank has introduced a System 5+ employee assessment system. The assessment
results of the efficiency of Bank managers and employees are used for quarterly and annual
bonuses.
Staff training
Sberbank has a corporate training model system. The main aim is to provide efficient staff
development in key competences, to provide the knowledge and skills necessary for employees
to increase their efficiency and to create a knowledge and skills resource for future employees
and for self-training purposes. The Bank's training system complies with business needs and has
an effect on achieving strategic goals.
Sberbank has launched a unique business education program for potential managers and
the personnel together with the New Economic School and INSEAD as well as the London
Business School.
100% of the employees of Sberbank Premier, divisions which organizes sales in
companies, and cash settlement centers have completed training through the corresponding
programs. All ISD managers underwent training through a comprehensive program. All new
employees are trained on products.
In 2011, to mark its 170th anniversary, Sberbank held a series of lectures given by leading
international experts in management and leaders of major companies. The lectures were given to
bank employees, clients and partners and students and teachers from top Moscow colleges and
universities.
Bank benefits and privileges
Sberbank has developed its employee benefits and privileges policy, which determines a
single system for providing employees with corporate benefits.
65
A single health care and accident and critical illness insurance system has been introduced.
100% of Bank employees are insured against accidents and critical illnesses. Comprehensive
medical examination has been carried out for employees for the prevention and early diagnosis
of illnesses, especially cardiovascular diseases and cancer. More than 85% of employees, 200
thousand people, have undergone medical examinations.
A corporate pension program has been launched which covers almost 150 thousand
employees. The program is open to employees with 3 years' continuous employment. The Bank
starts contributing to the employees’ pension fund and when they have been employed for
7 years it is transferred to Sberbank NPF, its non-state pension fund, to a named pension account
for the amount accrued over 4 years’ participation in the program, and for every subsequent year
pension contributions are made to the employee for each full year of employment.
66
12. Operational Bank functions
Operational functions continued to be developed in 2011. Another 5 Customer Operations
Support Centers (COSC) were opened and the centralization program successfully passed the
"equator". On the reporting date there are 15 COSCs; centralization is 100 % complete for 9 of
them. A management accounting pilot model is being implemented and new standardized
processes are being tested in regional banks. Pilot projects for launching interregional COSCs
have been launched.
In the reporting year, the Bank's operations unit continued its uninterrupted support for the
growing volume of business. The growth in operations for most COSCs was 30% to 60%, while
the increase in employees was 10% to 27%. In other words, the support for growing business
was accompanied by increased productivity. In 2011, there was significant growth in loan
operations, both in the retail and corporate and investment units. The opening of new COSCs
made it possible to extend business support in this area 6-10 fold.
The development and implementation of single service quality standards continued. As a
result, single registers for business unit operational services, quality standards and rules for
working in accordance with service level agreements were approved. By the end of 2011, these
agreements were signed across the whole Sberbank system.
In 2012, emphasis will be placed on increasing management and control of work quality
and to prepare for the new stage in the development of operational functions, the gradual move
to multiregional and multinational service centers.
67
13. Selected bank projects
Optimization of procurement activities is one of the Bank's strategic tasks. The Strategy
for optimizing procurement activities proposes the creation of a Single Procurement Center
which will increase the quality of service for internal clients, reduce the time for concluding
agreements and decrease costs of procurement activities.
In relation with the introduction of Federal Law No.223-FZ On Procurement of Goods,
Works and Services by Certain Categories of Legal Entities dated 18.07.2011 the bank
confirmed the Regulations on procurement as the main document regulating relations for
supplying goods and services during the procurement process. The regulations will bring the
processes for conducting tenders and electronic auctions to a new level. Efficient procurement
procedures have been developed for any type of purchase, from simple goods to choosing
general partners for complex projects. A system has been developed for automatically collecting
information on procurement from all bank branches for analysis and centralized publication on
the official website of the Russian Federation.
The bank actively uses electronic auctions to acquire goods and services with the help of
the subsidiary company Sberbank-AST COJSC. In 2011, the bank saved more than 2.6 billion
rubles or about 14% of the starting electronic auction price. The mass introduction of electronic
procurement auctions encourages the development of competition among suppliers, counteracts
corruption and provides Russian regional producers, small and medium sized businesses, the
ability to supply the Bank with goods and services at a specific price.
Sberbank-AST electronic trading platform was selected by the Russian Ministry of
Economic Development and Trade and the Federal Antimonopoly Service, out of five platforms,
to organize electronic auctions for state, federal, regional and municipal customers, as well as the
organization of procurement for commercial companies. The company is a leading operator of
electronic auctions in terms of volume and number of auctions placed by customers as well as
the number of suppliers taking part in auctions. In 2011, there were over 93 thousand accredited
suppliers and the share of the electronic auction market exceeded 61%. Sberbank AST COJSC
is a laureate of the national business prize Company of the Year 2011.
The Auction House of the Russian Federation, which was set up with the participation of
the bank to perform property sales, including collateral for loans provided by the Bank,
continued its work. The Auction House of the Russian Federation won the qualification selection
to provide sales services for property belonging to Moscow city as well as to organize auctions
and tenders to sell state property of the Khanty-Mansi Autonomous Okrug - Yugra. SberbankAST COJSC and the Auction House of the Russian Federation OJSC are recognized by the
Ministry of Economic Development of the Russian Federation as platforms which correspond to
the requirements of electronic platforms for selling debtor's property as part of bankruptcy
proceedings.
In 2011, Sberbank approved the strategy for participating in modernization and
restructuring of the housing and communal services (HCS) sector. While working on the
strategy, comprehensive research and analysis was made of the banking services market in the
HCS sector in RF constituent entities, which made it possible to determine the investment
potential of the bank's participation in reforming this sector, including HCS sector lending. In
2011, pilot investment projects began in the field of reconstruction and comprehensive
development of the communal infrastructure in several regions.
Development continued of the investment project for creating an integrated system for
dealing with waste in Astrakhan and Vologda regions. The project is designed to resolve the
serious challenges of recycling solid household waste in cities. A mechanism has been developed
68
for parallel co-financing of the project, the scheme and forms of cooperation between
participants.
In 2011, great attention was paid to the Bank's participation together with the HCS fund in
forming a regional system for major repairs to apartment blocks. Trilateral partnership
agreements have been signed with the Republic of Bashkortostan, Murmansk and Yaroslavl
regions and Krasnodar Territory. The regional system legal structure and the main functions of
the authorized organizations of the corresponding constituent entity have been established and
the main parameters have been agreed for the regional major repairs program.
In accordance with resolutions of the Government of the Russian Federation, Sberbank
acts as a carbon unit operator, which includes the evaluation of applications from Russian
investors for approval of projects to be developed under Article 6 of the Kyoto Protocol, the
international environmental agreement, which sets out joint implementation by Russian and
foreign investors of programs for reducing greenhouse gas emissions.
Twenty applications have been evaluated for projects on modernization of technical
equipment in electric and thermal energy, gas and oil extraction, metallurgy, industrial
construction materials and chemistry. The total volume of proposed carbon emission was 56
million units. In 2011, on the initiative of Russian investors, transactions were carried out for
almost 20 million units.
2011
Number of projects approved / passed for approval
Volume of emission reductions under approved projects/projects passed for
approval (t. CO2 eq.)
Number of issued emission reduction units
2010
20
33
56 mln
24.4 mln
60 mln
4.2 mln
Sberbank administers the transfer of projected emission reduction units and ensures the
preparation and implementation of international carbon unit transaction agreements. As part of
partnership agreements with major Russian investors, the Bank ensures methodological support
and implementation of such agreements and prepares projects for reinvestment of income from
carbon unit operations in new technical modernization projects.
The Bank has continued to finance organization and project financing of energy
conservation and raising of energy efficiency activities in accordance with Federal Law
No.261-FZ On Energy Conservation and the Raising of Energy Efficiency and On the
Introduction of Amendments to Certain Legislative Acts of the Russian Federation dated
November 23, 2009. Over the last three years, loans have been issued for 50 projects with a total
investment of 315 billion rubles (Sberbank funds, 113 billion rubles); more than 250 billion of
this is invested in the power industry, aimed at modernising old and building new generating
capacity and reducing losses from power transmission.
Modernization and development has continued of automated Bank systems as part of the
development strategy of Sberbank of Russia for the period to 2014. Sberbank's achievements in
information technology are highly regarded within the professional community. In April 2011,
Sberbank won the national award IT Leader for 2010 in the nomination for state controlled
banks. The national annual IT LEADER prize has been awarded every year since 2002. The
organizing committee includes the Russian Association of Managers, the company CROC and
the magazines Itogi, IntelligentEnterprise, and CIO: information services manager.
69
14. Energy resources used by the Bank
The table below shows the volume of energy resources used by Sberbank in kind and in
monetary terms.
2011
Energy resources
Electricity, kW-h
Heat energy, Gcal
Motor fuel, l
Diesel fuel, l
Gas cub. m
Coal, t
Wood, cub. m
Kerosene, l
Fuel oil, t
Amount
829,754,538
1,191,541
34,375,819
9,833,126
18,619,647
1,161
1,082
4,520
48
2010
Cost,
thou. rub.
3,183,687
1,233,107
793,017
221,374
79,368
3,464
708
102
116
Amount
720,678,945
886,406
23,376,530
7,236,423
17,367,878
1,238
700
73,441
46
Cost,
thou. rub.
2,553,873
906,211
984,877
112,634
56,629
2,033
420
1,966
111
70
15. Development prospects
For the successful implementation of Sberbank of Russia's development strategy to 2014,
the Bank has to ensure efficient work in 2012, which will make it possible to bear the expenses
from implementing a wide range of strategic projects. This requires that the following important
tasks are solved and that key efficiency indicators are achieved.
In the area of finance the Bank plans to ensure its leadership in financial performance on
the Russian banking market. This requires increasing the quality of loan portfolios, the recovery
of non-performing loans, maintaining the interest margin for all main products and control of
operational expenses.
Priority tasks for working with customers:












significantly improve the perception of the Bank and increase the level of satisfaction
from private and corporate clients. As part of this task, the Bank is continuing to work
on reducing lines and introducing innovative services and products;
increase the share in assets of the Russian banking system by strengthening its position
in the main sectors of the financial market.
To improve processes and technology, the Bank plans in 2012 to ensure efficient
business development and to increase work productivity, as well as to implement a
number of critically vital projects and technologies, including:
complete the transition to a process-functional model for the bank,
ensure centralization, standardization and optimization of operational and support
function processes,
continue IT-infrastructure centralization;
continue redesigning the branch network to ensure efficient implementation of business
development tasks.
The bank relies greatly on the quality of its management and human resources
systems. In 2012, the priorities for this area are:
develop the Bank group as a holding structure, develop a single Group policy for risk
management and IT;
form a single Group corporate culture aimed at continual improvement and readiness for
changes and innovation;
introduce a comprehensive personnel development system;
increase transparency and efficiency of the management of bank activities by
developing a balanced scorecard.
CEO,
Chairman of the Management Board of Sberbank of Russia OJSC
/Signature/
H.O. Gref
Chief accountant of Sberbank of Russia Director of the accounting and reporting
department of Sberbank of Russia OJSC
/Signature/
A.V. Kruzhalov
71
Annual report of the bank for 2011,
compiled in accordance with the
Bank of Russia Instruction
of 08.10.2008 No. 2089-U
On Preparation of Annual Reports
by Lending Institutions
Ernst & Young
72
Sberbank of Russia OJSC
Auditor's report
on the annual Report for 2011
March 2012
Ernst & Young
73
Auditor's report - Sberbank of Russia OJSC
Contents
Independent auditor's report
Appendix
Annual report of Sberbank of Russia for 2011 consisting of:
Balance sheet as of 1 January 2012
Profit and loss report for 2011
Cash flow statement for 2011
Capital adequacy report, volume of provisions
to cover doubtful loans and other assets
as of 1 January 2012
Information on statutory ratios as of 10
1 January 2012
Explanatory note
Ernst & Young
Page
3
6
7
8
9
10
11
2
ZAO Ernst & Young Vneshaudit
Sadovnicheskaya Nab., 77, bld 1
Moscow, 115035, Russia
Tel.: +7 (495) 705 9700
+7 (495) 755 9700
Fax: +7 (495) 755 9701
OKPO: 00139790
/Logo/
Independent
Auditor's report
To shareholders of Sberbank of Russia Joint-Stock Company
Information on audited entity
Name: Joint-Stock Company Sberbank of Russia.
Information on the state registration of the credit organisation by the Central Bank of the Russian
Federation: No. 1481 dd. 20 June 1991.
Information on legal entity registration in the Unified State Register of Legal Entities: state
registration certificate No. 1027700132195 dd. 16 August 2002.
Address: 19 Vavilova St., Moscow, 117997, Russia
Information on the auditor
Name: ZAO Ernst & Young Vneshaudit
Main state registration number 1027739199333.
Address: Sadovnicheskaya Nab., 77, bld 1, Moscow, 115035, Russia 1.
ZAO Ernst & Young Vneshaudit is a member of the Non Profit partnership Russian Audit
Chamber (NP APR). ZAO Ernst & Young Vneshaudit is registered in the register of auditors and
audit organizations of NP APR, registration number 3027, and also included in the control copy
of the register of auditors and audit organizations, identification number 10301017410.
Ernst & Young
3
/Logo/
ZAO Ernst & Young Vneshaudit
Sadovnicheskaya Nab., 77, bld 1
Moscow, 115035, Russia
Tel.: +7 (495) 705 9700
+7 (495) 755 9700
Fax: +7 (495) 755 9701
OKPO: 00139790
We have audited the accompanying annual report of the Joint-Stock Company Sberbank of
Russia (hereinafter, the Bank), which consists of the balance sheet for 1 January 2012, the profit
and loss report for 2011, cash flow statement for 2011, capital adequacy report for volume of
reserves to cover doubtful loans and other assets as of 1 January 2011, information on statutory
ratios as of 1 January 2012 and an explanatory note.
Responsibility of the audited entity for the annual report
The Bank's management is responsible for the preparation and authenticity of this annual report
in accordance with Russian Federation rules for preparing annual reports, and for the internal
control system necessary for preparing the annual report which is free from material
misstatements due to fraud or error.
Auditor's responsibility
Our responsibility is to express an opinion on the authenticity of this annual report on the basis
of our audit.
We conducted our audit in accordance with federal auditing standards and international auditing
standards. These standards require that we comply with ethical norms as well as plan and
perform the audit in such a way as to obtain reasonable assurance that the annual report is free
from material misstatement.
An audit involves performing auditing procedures to obtain audit evidence supporting the
amounts and disclosures in the annual report. The choice of audit procedures is subject to our
judgment, which is based on the assessment of risk of material misstatements in the annual
report, whether due to fraud or error. In making such risk assessment, the auditor examines the
internal control system ensuring the preparation and authenticity of the annual report in order to
choose appropriate audit procedures, rather than for the purpose of expressing an opinion on the
effectiveness of the internal control system An audit also includes evaluating the appropriateness
of the accounting policies used and the justification for the estimated figures obtained by the
management, as well as evaluation of the overall presentation of the annual report.
We believe that the audit evidence that we have obtained provides sufficient and appropriate
basis for expressing our opinion.
Ernst & Young
4
/Logo/
ZAO Ernst & Young Vneshaudit
Sadovnicheskaya Nab., 77, bld 1
Moscow, 115035, Russia
Tel.: +7 (495) 705 9700
+7 (495) 755 9700
Fax: +7 (495) 755 9701
OKPO: 00139790
Opinion
In our opinion, the annual report reflects, in all material respects, the financial position of the
Bank as of 1 January 2012, its financial and business results and cash flow funds for 2011, in
accordance with Russian Federation annual report preparation rules.
Other information
As stated in clause 1 of the explanatory note, in accordance with the Instruction of the Central
Bank of the Russian Federation dated 20 January 2009 No. 2172-U On Publishing and
Submitting Information on the Activity of Lending Institutions and Bank (Consolidated) Groups
(hereinafter - Instruction No. 2172-U), the Bank management decided to publish an explanatory
note as part of the annual report on the Bank's website (www.sbrf.ru; www.sberbank.ru). The
forms of accounting (balance sheet, profit and loss report, cash flow statement, the report on
capital adequacy and amount of provisions to cover doubtful loans and other assets and
information on statutory requirements) in accordance with Instruction No. 2172-U are openly
published on the bank's website as part of the annual report. This audit report on the
accompanying annual report should be considered together with all forms of accounting and
explanatory notes, which are an integral part of the annual report.
The accompanying annual report does not aim to represent the financial position and results of
activities in accordance with accounting principles and methods generally accepted in countries
and administrative entities other than the Russian Federation. Accordingly, the accompanying
annual report is not intended for persons who are not familiar with the principles, procedures and
methods of accounting accepted in the Russian Federation.
/Signature/
/Stamp/: Closed Joint-Stock Company
00139790
Moscow
Ernst & Young Vneshaudit
S.M. Takaev
Partner
ZAO Ernst & Young Vneshaudit
15 March 2012
Ernst & Young
5
Bank accounting
OKATO code
Credit organisation code (branch)
main state registration
registration number
number
(serial number)
1027700132195
1481
OKPO
45293554000
00032537
BIC
044525225
BALANCE SHEET
(disclosure form)
as of 1 January 2012
Credit organisation: Joint-Stock Company Sberbank of Russia
OJSC Sberbank of Russia
Postal address: 19 Vavilova St., Moscow, 117997
Line
number
Item
1
I
1
2
2.1
3
4
5
6
6.1
7
8
9
10
II
11
12
13
13.1
14
2
Assets
15
16
17
18
III
19
20
21
22
23
OKUD form code 0409806
Quarterly (Annual)
RUB. thousands.
Data as of
Data as of the
reporting date
relevant reporting
date of the
previous year
3
4
Cash
Funds of credit organisations with the RF Central Bank
Mandatory provisions
Funds with credit organisations
Net securities investments evaluated by fair value through profit or loss
Net lending receivables
Net securities investments and other financial assets available for sale
Investments in subsidiary and related organisations
Net investments in securities held to maturity
Fixed assets, intangible assets and material resources
Other assets
Total assets
LIABILITIES
Credits, deposits and other facilities of the RF Central Bank
Funds of credit organisations
Funds of non-credit organisation customers
Individual deposits
Financial liabilities evaluated by fair value through profit or loss
Issued debt instruments
Other liabilities
Provisions for possible losses from contingent loan liabilities, other possible losses and
transactions with offshore residents
Total liabilities
SOURCES OF EQUITY
Shareholders’ (members’) capital
Treasury shares redeemed from shareholders (members)
Paid-in capital
Reserve fund
Revaluation of securities available for sale at fair value
492,880,738
151,196,647
99,392,457
38,443,527
23,528,226
7,658,870,942
1,140‚033,047
94‚030‚603
417‚065,553
370‚948‚267
126‚452,216
10,419,419,163
322,302,793
128,924,854
50,531,690
61,888,479
31,509,445
5,714,300,721
1‚465,068,808
83,813‚528
354,845,030
317,378,620
127‚028,480
8,523,247,230
565,388,335
477,466,955
7,877,197,651
5,522,845,516
300,000,001
291,093,913
6,666,977,736
4,689,511,661
0
87,222,883
84,730,144
0
111,983,441
76,991,753
26,770,756
9,118,776,724
26,313,232
7,473,360,076
67,760,844
0
228,054,226
3‚527,429
67,760,844
0
223,054,226
3‚527.429
-26.013,504
15‚835.441
24
Revaluation of fixed assets
84,710,995
81‚713.099
25
Retained profit (uncovered losses) of previous years
632,107,538
479,017,552
26
Retained profit (loss) over the reporting period
310,494,911
173,978,563
27
Total sources of equity
1‚300,642,439
1,049,887,154
IV
OFF-BALANCE LIABILITIES
28
Irrevocable liabilities of the credit institution
2‚057,720,135
1,059,370‚518
29
Warranties and representations issued by the credit organisation
643,334,969
293,025,181
30
Contingent non-loan liabilities
747,324
0
For line 30 "Contingent non-loan liabilities" data is not shown for January 01, 2011 as such operations were not accounted before 01.01.2011,
while the work required to collect this information is unnecessarily high
CEO,
Chairman of the Management Board of Sberbank of Russia OJSC
Chief accountant of Sberbank of Russia Director of the Accounting and Reporting Department of Sberbank of
Russia OJSC
/Seal/ : SBERBANK * Joint-Stock
Company Sberbank of Russia *
Moscow
H.O. Gref
_______________
(signature)
A.V. Kruzhalov
_______________
(signature)
15 March 2012
Ernst & Young
6
Bank accounting
OKATO code
OKPO
45293554000
00032537
Credit organisation code (branch)
main state registration
registration number
number
(/serial number)
1027700132195
1481
BIC
044525225
PROFIT AND LOSS STATEMENT
(disclosure form)
for 2011
Credit organisation: Joint-Stock Company Sberbank of Russia
OJSC Sberbank of Russia
Postal address: 19 Vavilova St., Moscow, 117997
Line
number
Item
1
1
1.1
1.2
1.3
1.4
2
2.1
2.2
2.3
3
4
2
Interest income, total, including:
From depositing funds with credit organisations
From loans extended to non-credit organisation customers
From rendering financial leasing services
From securities investments
Interest income, total, including:
For raised funds from credit organisations
For raised funds from non-credit organisation customers
For issued debt instruments
Net interest income (negative interest margin)
Changing the provisions for possible losses from loans, lending and similar
receivables, funds deposited with correspondent accounts, as well as accrued
interest income, total, including:
Changing the provisions for possible losses from accrued interest income
Net interest income (negative interest margin) after making provisions for possible
losses
Net income from operations with securities evaluated by fair value through profit
or loss
Net income from operations with securities available for sale
Net income from operations with securities held to maturity
Net income from foreign currency operations
Net income from revaluation of foreign currency
Income from participation in the capital of other legal entities
Commission income
Commission expenses
Changing provisions for possible losses from securities available for sale
Changing the provisions for possible losses from securities held to maturity
Changing the provisions for other losses
Other operating income
Net income (expenses)
Operating expenses
Profit (loss) before tax
Accrued (paid) taxes
Profit (loss) after tax
Disbursements from profit after tax, total, including:
Distributed among shareholders (members) as dividends
Deduction for establishment and replenishment of the reserve fund
Retained profit (loss) over the reporting year
4.1
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
23.1
23.2
24
CEO,
Chairman of the Management Board of Sberbank of Russia OJSC
Chief accountant of Sberbank of Russia Director of the Accounting and Reporting Department of Sberbank of
Russia OJSC
3
837,887,816
7,885,809
729,556,638
0
100,445,369
262,061,888
28,280,326
230,620,472
3,161,090
575,825,928
OKUD form code 0409807
Quarterly (Annual)
RUB. thousands.
Data as of the relevant
reporting date of the
previous year
4
796,993,292
8,062,768
685,405,195
0
103,525,329
294,160,076
31,006,883
254,878,190
8,275,003
502,833,216
16,393,889
-80,611,020
235,208
-1,790,023
592,219,817
422,222,196
-843,279
1,633,852
8,245,132
-13,693
2,690,612
6,344,991
3,529,344
134,285,740
8,709,750
-28,271
41,098
-5,166,633
13,674,442
746,269,550
337,368,005
408,901,545
98,406,634
310,494,911
0
0
0
310,494,911
14,928,755
-8,454
-14,836,639
16,428,836
1,420,220
118,503,621
6,562,118
1,583,863
-917,097
-6,924,269
13,450,740
560,923,506
318,720,257
242,203,249
68,224,686
173,978,563
0
0
0
173,978,563
Data as of the
reporting date
/Seal/ : SBERBANK * JointStock Company Sberbank of
Russia * Moscow
H.O. Gref
_______________
(signature)
A.V. Kruzhalov
_______________
(signature)
15 March 2012
Ernst & Young
7
Bank accounting
OKATO code
Credit organisation code (branch)
main state registration
registration number
number
(/serial number)
1027700132195
1481
OKPO
45293554000
00032537
BIC
044525225
CASH FLOW STATEMENT
(disclosure form)
for 2011
Credit organisation: Joint-Stock Company Sberbank of Russia
OJSC Sberbank of Russia
Postal address: 19 Vavilova St., Moscow, 117997
Form code 0409814
Annual
Line
number
Item
1
1
1.1
2
Net cash, obtained from (used in) operations
Cash received from (used in) operations before changes to operating assets and liabilities, total,
including:
Interest received
Interest paid
Commission received
Commission paid
Income less expenses for operations with financial assets at fair value through profit or loss,
available for sale
Income less losses from operations with securities held to maturity
Income less expenses for operations with foreign currency
Other operating income
Operating expenses
Tax expenses (compensation)
Increase (decrease) of net cash from operating (assets), including:
Net increase (decrease) of mandatory provisions in accounts with Bank of Russia
Net increase (decrease) of securities investments at fair value through profit or loss
Net increase (decrease) of lending receivables
Net increase (decrease) of other assets
Net increase (decrease) of loans, deposits and other facilities of Bank of Russia
Net increase (decrease) of funds of other credit organisations
Net increase (decrease) of funds of non-credit organisation customers
Net increase (decrease) of financial liabilities at fair value through profit or loss
Net increase (decrease) of issued debt instruments
Net increase (decrease) of other liabilities
Totals of section 1 (item 1.1 + item 1.2)
Net cash, obtained from (used in) investment operations
Acquisition of securities and other financial assets pertaining to category “available for sale”
Proceeds from sale and redemption of securities and other financial assets pertaining to category
“available for sale”
Acquisition of securities pertaining to category “held to maturity”
Proceeds from redemption of securities pertaining to category “held to maturity”
Acquisition of fixed assets, intangible assets and material reserves
Proceeds from sale of fixed assets, intangible assets and material reserves
Dividends received
Totals of section 2 (sum of lines 2.1 to 2.7)
Net cash, obtained from (used in) financial operations
Shareholders’ (members’) contributions to the authorised capital
Acquisition of equity shares (stocks) redeemed from shareholders (members)
Sale of equity shares (stocks) redeemed from the shareholders (members)
Paid dividends
Totals of section 3 (sum of lines 3.1 to 3.4)
Impact of changes to the official currency exchange rates against the ruble set by the Bank of
Russia on cash and cash equivalents
Increase (use) of cash and cash equivalents
Cash and cash equivalents as of the beginning of the reporting year
Cash and cash equivalents as of the end of the reporting year
1.1.1
1.1.2
1.1.3
1.1.4
1.1.5
1.1.6
1.1.7
1.1.8
1.1.9
1.1.10
1.2
1.2.1
1.2.2
1.2.3
1.2.4
1.2.5
1.2.6
1.2.7
1.2.8
1.2.9
1.2.10
1.3
2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
3
3.1
3.2
3.3
3.4
3.5
4
5
5.1
5.2
CEO,
Chairman of the Management Board of Sberbank of Russia OJSC
Chief accountant of Sberbank of Russia - Director of the Accounting and
Reporting Department of Sberbank of Russia OJSC
RUB. thousands.
Cash flow for
Cash flow for
the reporting
the previous
period
reporting period
3
4
308,499,437
256,623,701
820,253,346
-260,291,556
134,379,929
-8,648,814
782,670,013
-281,103,660
117,967,470
-6,529,045
296,396
1,698,402
0
2,686,708
13,164,026
-303,303,254
-90,037,344
-325,122,503
-48,860,767
7,525,040
9,347,443
265,388,334
174,482,724
1,141,839,491
0
-20,800,487
-10,101,215
-16,623,066
-8,454
-14,836,812
13,321,348
-287,811,982
-68,743,579
559,507,560
-9,959,208
-15,834,228
-641,168,303
2,541,471
-199,999,999
147,835,500
1,283,128,350
0
-10,626,173
3,590,250
816,131,261
-741,968,529
-2,106,370,199
1,042,724,061
1,507,289,497
-77,705,943
18,587,919
-81,289,404
761,592
3,536,398
164,646,094
-92,622,805
2,240,303
-48,736,853
543,459
1,400,446
-736,256,152
0
0
0
-20,950,570
-20,950,570
0
0
131
-2,204,212
-2,204,081
-7,128,818
2,753,509
119,943,640
462,570,304
582,513,944
80,424,537
382,145,767
462,570,304
-1,843,943,066
/Seal/ : SBERBANK * Joint-Stock
Company Sberbank of Russia *
Moscow
H.O. Gref
_______________
(signature)
A.V. Kruzhalov
_______________
(signature)
15 March 2012
Ernst & Young
8
Bank accounting
OKATO code
OKPO
45293554000
00032537
Credit organisation code (branch)
main state registration
registration number
number
(/serial number)
1027700132195
1481
BIC
044525225
CAPITAL ADEQUACY REPORT, VOLUME OF RESERVES
TO COVER DOUBTFUL LOANS AND OTHER ASSETS
(disclosure form)
as of 1 January 2012
Credit organisation: Joint-Stock Company Sberbank of Russia
OJSC Sberbank of Russia
Postal address: 19 Vavilova St., Moscow, 117997
OKUD form code 0409808
Quarterly (Annual)
Line
number
1
I
1.1
1.1.1
1.1.2
1.2
1.3
1.4
1.5
1.5.1
1.5.2
1.6
1.7
1.8
2
3
4
4.1
4.2
4.3
4.4
Item
2
Equity (capital) (thousand RUB), total, including:
Authorised capital of the credit institution, including:
Par value of registered common shares (stocks)
Par value of registered preferred shares
Treasury shares redeemed from shareholders (members)
Paid-in capital
Reserve fund of the credit organisation
Financial result of operations assumed in calculation of equity
(capital):
of previous years
of the reporting year
Intangible assets
Subordinated credit (loan, deposit, bonded loan)
Sources (part of sources) of additional capital for formation of
which investors have used inappropriate assets
Norm of equity (capital) adequacy, (percent)
Actual value of equity (capital) adequacy, (percent)
Actual provisions established for possible losses (thousand
RUB), total, including:
from loans, lending and similar receivables
from other assets related to risk of possible losses, and other
losses
From contingent loan liabilities disclosed in off-balance
accounts, and future transactions
From operations with offshore residents
Data for the
beginning of the
reporting year
3
1,241,875,781
67,760,844
64,760,844
3,000,000
0
228,054,226
3,527,429
Increase (+)/
reduction (-) over
reporting period
4
273,903,977
0
0
0
0
0
0
Data as of reporting
date
5
1,515,779,758
67,760,844
64,760,844
3,000,000
0
228,054,226
3,527,429
645,865,340
285,529,549
931,394,889
480,319,608
165,545,732
1,231,352
3,000,000
153,148,537
132,381,012
1,323,982
0
633,468,145
297,926,744
2,555,334
3,000,000
0
0
0
10.0
17.7
х
х
706,778,441
-28,925,639
677,852,802
667,663,122
-33,406,113
634,257,009
12,802,087
4,488,039
17,290,126
26,212,240
30,346
26,242,586
100,992
-37,911
63,081
Reference section:
1
Formation (replenishment) of provisions for possible losses from loans, lending and similar
receivables in the reporting period (thousand RUB), total, including due to:
1.1
issue of new loans
1.2
change of loan quality
1.3
change to official currency exchange rate against the RUB, set by the Bank of Russia
1.4
other reasons
2
2.1
2.2
2.3
2.4
2.5
Recovering (decreasing) of provisions for possible losses from loans, lending and similar
receivables in the reporting period (thousand RUB), total, including due to:
writing off bad loans
repayment of loans
change of loan quality
change to official currency exchange rate against the ruble, set by the Bank of Russia
other reasons
CEO,
Chairman of the Management Board of Sberbank of Russia OJSC
Chief accountant of Sberbank of Russia Director of the Accounting and Reporting Department of Sberbank of
Russia OJSC
10.0
15.0
/Seal/ : SBERBANK * JointStock Company Sberbank of
Russia * Moscow
279,524,809
149,793,896
103,529,938
1,301,421
24,899,554
312,930,922
16,975,173
230,103,172
43,771,499
56,148
22,024,930
H.O. Gref
_______________
(signature)
A.V. Kruzhalov
_______________
(signature)
15 March 2012
Ernst & Young
9
Bank accounting
OKATO code
OKPO
45293554000
00032537
Credit organisation code (branch)
main state registration
registration number
number
(/serial number)
1027700132195
1481
BIC
044525225
INFORMATION ON STATUTORY RATIOS
(disclosure form)
as of 1 January 2012
Credit organisation: Joint-Stock Company Sberbank of Russia
OJSC Sberbank of Russia
Postal address: 19 Vavilova St., Moscow, 117997
Line
number
Indicator
1
1
2
3
4
5
2
Capital adequacy ratio of the bank
Instant liquidity ratio of the bank (N2)
Current liquidity ratio of the bank (N3)
Long-term liquidity ratio of the bank (N4)
Maximum risk limit per borrower or group of related
borrowers (N6)
6
7
Maximum limit of large credit risks (N7)
Maximum amount of loans, bank guarantees and warranties
issued by the bank to its members (shareholders) (N9.1)
Aggregate risk ratio of the bank’s insiders (N10.1)
Ratio of the bank’s equity (capital) used for purchasing shares
(stocks) with other legal entities (N12)
Ratio of the amount of liquid assets with maturity within the
next 30 calendar days against the amount of liabilities of nonbank settlement credit institutions (N15)
Ratio of maximum aggregate loans to customers involved in
settlement for completion of settlement (N16)
Ratio of loans to borrowers, other than those involved in
settlement, from non-bank settlement credit institutions on
their own behalf or for their own account (N16.1)
Minimum ratio of mortgage-backed loans to own equity
(capital) (N17)
Minimum ratio of mortgage cover and mortgage backed
bonds in issue (N18)
Maximum ratio of aggregate liabilities of the issuing credit
organisation to lenders ranking in priority to liabilities to
holders of mortgage-backed bonds in accordance with federal
laws to own equity (capital) (N19)
8
9
10
11
12
13
14
15
CEO,
Chairman of the Management Board of Sberbank of Russia OJSC
Chief accountant of Sberbank of Russia Director of the Accounting and Reporting Department of Sberbank of
Russia OJSC
Standard
values
3
10.0
15.0
50.0
120.0
25.0
800.0
OKUD form code 0409808
Annual
Interest
Actual values
as of the reporting date
as of the previous
reporting date
4
5
15.0
17.7
50.8
80.6
72.9
103.0
87.3
78.0
maximum
17.3
maximum
17.9
minimum
0.1
minimum
0.1
125.3
80.0
50.0
0.0
0.0
3.0
0.9
0.9
25.0
0.7
0.1
/Seal/ : SBERBANK * JointStock Company Sberbank of
Russia * Moscow
H.O. Gref
_______________
(signature)
A.V. Kruzhalov
_______________
(signature)
15 March 2012
Ernst & Young
10
Explanatory Note
to the 2011 Annual Report
of OJSC Sberbank of Russia
Prepared in accordance with requirements of
Directive #2089-U of the Bank of Russia
dated 8 October 2008 On Preparation
of Annual Reports by Lending Institutions
Contents
1.
Introduction to the Explanatory Note ..................................................................................... 3
2.
Core Business of Sberbank. Banking products. Licenses ...................................................... 3
3.
Economic Environment in which Sberbank Operates. An Overview of Significant
Changes in Operations, Events That Affected/Could Affect the Financial
Sustainability, Policy (Strategy) of the Bank for the Reporting Period ................................. 5
4.
2011 Results in Brief .............................................................................................................. 8
4.1.
Main Operating Outcomes................................................................................ 8
5.
Bank's Operations that Have the Most Significant Impact on Profit or Loss
Changes. Bank's Operations in Different Geographical Regions .......................................... 9
6.
Prospects of the Bank's Development .................................................................................. 12
7.
An Overview of Risks Related to Different Operations of the Bank ......................................... 13
7.1.
7.2.
7.3.
7.4.
7.5.
7.6.
7.7.
7.8.
7.9.
7.10.
Country Concentration of Assets and Liabilities of the Bank ......................... 13
Credit Risk ...................................................................................................... 14
Liquidity Risk .................................................................................................. 21
Market Risk ..................................................................................................... 22
Legal Risk ....................................................................................................... 23
Strategic Risk .................................................................................................. 24
Operating Risk ................................................................................................ 24
Risk of Loss of Business Reputation ............................................................... 25
Information on Operations/Transactions with the Bank's
Related Parties ................................................................................................ 25
Off-balance-sheet liabilities, fixed-term transactions and
reserves created .............................................................................................. 26
8.
Details of Disbursements/Remuneration to Key Management Staff ................................... 27
9.
Expected share dividends to be paid and distribution of net earnings of the Bank for
2011. History of dividend payment and distribution of net earnings ................................... 28
10.
Earnings per share ................................................................................................................ 28
11.
Branch Network of the Bank................................................................................................ 29
12.
Sberbank of Russia Banking (Consolidated) Group ............................................................ 30
13.
Membership the Bank’s Supervisory Board and its Changes in 2011. Information
on the shares/interests in the Bank held by the members of the Supervisory Board ........... 31
14.
Material Information on Valuation Methods and Material Accounts .................................. 34
14.1.
14.2.
14.3.
14.4.
14.5.
14.6.
14.7.
14.8.
14.9.
Data Comparability in Disclosure Reporting Forms ..................................... 34
Principles and Methods of Valuation and Accounting of
Individual Balance-Sheet Items ...................................................................... 34
List of Material Changes in the Accounting Policy ........................................ 35
Brief Information on Balance-Sheet Items Inventory ..................................... 35
Information on Receivables and Payables...................................................... 35
Information on Adjusting Events after the Reporting Date ............................ 35
Non-Adjusting Events after the Reporting Date ............................................. 36
Information on Failures to Comply with Accounting Rules ........................... 36
Changes in the Bank’s Accounting Policy for 2012 ....................................... 36
2
1.
Introduction to the Explanatory Note
This Explanatory Note
has been prepared pursuant to requirements of Directive #2089-U23 of the Bank of Russia
dated 8 October 2008;
 is part of the 2011 Annual Report of OJSC Sberbank24 of Russia prepared pursuant to
Russian Accounting Standards (hereinafter RAS) and does not include data from
consolidated statements of the Bank's Group;
 utilizes data of published reporting forms prepared pursuant to Directive #2089-U of the
Bank of Russia and Directive #2332-U of the Bank of Russia25 and internal statistical
reporting forms of the Bank with events following the reporting date taken into account

Figures provided in the Explanatory Note are for 2011 and 2010. Their values are
comparable and commensurate.
The Bank's management resolved to publish this Explanatory Note as part of the Annual
Report posted on the Bank's website (www.sberbank.ru). Forms of the Annual Report (the
Statement of Financial Position, the Profit and Loss Statement, the Cash Flow Statement, the
Statement of Capital Adequacy, Allowance for Doubtful Loans and Other Assets, and details of
reserve requirements) are openly published and posted on the Bank's website within its Annual
Report subject to Directive #2172-U26 of the Bank of Russia.
2.
Core Business of Sberbank. Banking products. Licenses
Core banking activities:

Corporate business: maintenance of settlement and current accounts, deposits, all types
of finance, bank guarantees, support of clients' export and import transactions, collection,
cash services, conversion services, money transfers made by retail clients to legal
entities, transactions in promissory notes etc.
 Retail business: banking services provided to retail clients such as deposits, lending,
maintenance of bank cards, transactions in precious metals, transactions in deposit
certificates and promissory notes, purchase and sale of foreign currencies, money
transfers, payments, safe custody of valuables etc.
 Operations in financial markets: transactions in securities, derivatives, funds placed and
attracted in the interbank market, funds raised in capital markets, foreign currency
transactions etc.
23
24
25
26
Directive #2089-U of the Bank of Russia dated 8 October 2008 On Preparation of Annual Reports by Lending
Institutions (hereinafter the BoR Directive #2089-U)
Hereinafter Sberbank of Russia, Sberbank, the Bank
Directive # 2332-U of the Bank of Russia dated 12 November 2009 On the List, Form and Procedure of
Preparation and Submission of Reporting Forms by Lending Institutions to the Central Bank of the Russian
Federation (hereinafter the BoR Directive #2332-U)
In accordance with Directive #2172-U of the Bank of Russia dated 20 January 2009 On Publication and
Submission of Information about Operations of Lending Institutions and Banking (Consolidated) Groups, the
decision to make a publication of the Explanatory Note to the Annual Report and the manner thereof is made by
the lending institution independently
3
Sberbank offers its clients a wide range of banking products and services within the core
activities listed above.
In addition to banking operations, the Bank carries out the following types of transactions:




grant of surety for third parties;
acquisition of claims from third parties;
cash management trust;
professional activities in the securities market, including broking, dealing and deposit
operations;
 other operations and services.
Licenses under which Sberbank carries out its operations are listed below:
Type of license
License #
Date received
Authority that
issued the license
License
valid till
General license for banking
operations in rubles and foreign
currencies
1481
30 August 2010
Central Bank of
the Russian
Federation
Unlimited
License for banking operations of
raising deposits and placing
precious metals, and other
operations in precious metals
1481
30 August 2010
Central Bank of
the Russian
Federation
Unlimited
License of a professional member
of the securities market for broking
activities
077-02894-100000
27 November 2000
Federal Service
for Financial
Markets
Unlimited
License of a professional member
of the securities market for dealing
activities
077-03004-010000
27 November 2000
Federal Service
for Financial
Markets
Unlimited
License of a professional member
of the securities market for
securities management activities
077-03099-001000
27 November 2000
Federal Service
for Financial
Markets
Unlimited
License of a professional member
of the securities market for
depositary activities
077-02768-000100
8 November 2000
Federal Service
for Financial
Markets
Unlimited
License for activities of a
specialized depositary of
investment funds, mutual funds and
nongovernmental pension funds
22-000-1-00012
4 October 2000
Federal Service
for Financial
Markets
Unlimited
License for execution, as part of
stock market trading, by a stock
market intermediary of derivative
contracts with a commodity as the
underlying asset
№ 1496
24 December 2009
Federal Service
for Financial
Markets
Unlimited
Information on the Bank's involvement in the system of Deposits’ Mandatory Insurance
of retail clients in banks of the Russian Federation
Sberbank of Russia is a member of the deposit insurance system. Sberbank was entered in
the Register of Banks Enrolled in the Deposit Mandatory Insurance System on 11 January 2005.
Sberbank makes quarterly insurance payments to the Fund of Deposits’ Mandatory
Insurance as required by Russian laws. In 2011, Sberbank's expenses related to charges paid to the
Fund of Deposits’ Mandatory Insurance reached 19.8 bn Rubles, 21.5 % more than in 2010. This
growth resulted from an increase in funds raised from retail clients.
4
3.
Economic Environment in which Sberbank Operates. An
Overview of Significant Changes in Operations, Events That
Affected/Could Affect the Financial Sustainability, Policy
(Strategy) of the Bank for the Reporting Period
The Russian economy developed in 2011 against the backdrop of ambiguous foreign
economic conditions. Global trends in international financial markets were primarily related to
low or negative growth rates in developed countries, the economy of which is characterized by a
significant degree of foreign and domestic debt. In the US, these problems manifested themselves
in a slow recovery of the economy in the context of political controversies. Europe suffered from
an intensifying debt crisis. As a result, the volatility of the Russian stock and forex markets
spiked. In particular, in the second half of the year the ruble depreciated from 28.1 RUB/USD in
July to 32.2 RUB/USD by year's end in the context of a worsening financial crisis in the
Eurozone.
The Russian economy continued its recovery growth. According to preliminary estimates of
the Federal Service for State Statistics, in 2011 GDP was up by 4.3 %. It was mainly boosted by
consumer spending and restoration of enterprises' stocks. In general, the 2011 growth was based
on domestic demand, both in the consumer and investment segments. Foreign demand fell
significantly in conditions of global instability, causing deterioration in export-oriented sectors of
the Russian economy. Growth slowed down in the extractive industry; growth in the processing
industry failed to regain pre-crisis levels.
Real income of the population barely increased in 2011. That said, retail trade turnover
grew 7.2% as a result of realization of deferred demand, growth in consumer lending and a lower
rate of savings. This had an impact, among other things, on the dynamics of retail services of
Russian banks:

The growth rate in deposits of retail clients (21 %) slowed down in the banking sector
as compared to previous year (31 %). The deposit growth rate in Sberbank was 18 %,
below the average market figure. As a result, the Bank's share in this segment fell from
47.9 % to 46.6 %.
 Banks were actively developing retail lending. Loans granted to retail clients added more
than a third during the year (36 %). In this respect, Sberbank demonstrated growth in this
area comparable to the market and managed to maintain its market share at 32 %.
Russian banks were actively collaborating with Russian companies and enterprises with
26% more funds raised from and 27 % more loans granted to them. Sberbank also successfully
cooperated with corporate clients, especially in terms of lending, where the Bank managed to
enhance its market presence from 31.3 % to 32.9 %.
In general, development of the Russian banking system in 2011 was distinctively marked by
the fact that lending growth rates were higher than client deposit growth rates. This applied
additional pressure on the liquidity of the banking system in the second half of the year. The first
half of the year was characterized by a surplus of bank liquidity. In order to reduce it and dampen
down inflationary pressure on the economy, the Bank of Russia starting taking measures in
February 2011 intended to tighten monetary and lending policy: banks' reserve requirements were
raised three times during the year, the refinancing rate was increased twice, the deposit rate of the
Bank of Russia was increased four times. The interbank market's liquidity sharply fell in Q3 in the
context of global instability and difficulty that Russian borrowers faced in raising foreign finance.
Interbank interest rates significantly grew with MosPrime rates for overnight loans rising from
2.9% early that year to 6.5 % in December. The Bank of Russia sharply increased amounts
available for REPO transactions, and the Ministry of Finance made deposits in banks in order to
maintain low lending rates in the productive sector.
5
Clients' funds remained the main source of funding for Sberbank. Nevertheless, like in the
banking system overall, their growth rates lagged behind lending rates. In this respect, Sberbank
took measures to raise an additional amount of liquid funds. Sberbank obtained additional ruble
liquidity by attracting funds from the Bank of Russia through direct REPO transactions, having
the Bank of Russia grant secured loans27 and reducing investments in government securities (the
volume of ruble-denominated government securities in the Bank's portfolio lost over 400 bn
rubles during the year). Additional liquidity in foreign currency resulted from issuing a bonded
debt and obtaining a syndicated loan, and through trade finance operations.
Positive sentiment prevailed in Q1 2011 in the Russian stock market. Nevertheless,
subsequent events such as an escalating lack of confidence in further growth of the global
economy and the continuing crisis of trust in the Eurozone caused global stock markets to
plummet twice, in August and September. Ultimately, the MICEX index was 17% below early
2011 levels by year's end. Sberbank's28 market capitalization also fell from 76.1 to 54.8 bn US
dollars though the Bank remained in the world’s Top 20 banks in terms of market capitalization .
The quality of loan portfolios of banks continued improving in 2011. During the year, the
share of overdue debt on loans granted to legal entities and retail clients in the banking sector
decreased from 5.5 % to 4.6%.
Sberbank was also particularly focused on the quality of its portfolio. It continued
operations as part of business processes launched back in 2010 to recover bad debt29. Systemic
collaboration with large, medium, small and micro business on bad debt helped to reduce legal
entities' overdue debt by 33 bn rubles. Overdue debt of retail clients added 2.3 bn rubles which,
however, is insignificant as compared to the total portfolio worth in excess of 1.8 trillion rubles.
The fixed-term loan portfolio was growing fast. All measures taken together allowed the Bank to
reduce the share of overdue debt on client loans from 5.0% to 3.4% and improve the quality of the
loan portfolio compared with the aggregate portfolio of the banking system.
In 2011 Sberbank restored reserves for a number of loans as part of planned arrangements
with bad assets. As a result, expenses incurred in creating reserves significantly fell by year's end
even though the Bank continued creating reserves for new loans. This had a positive impact on the
growth of earnings which hit a new record and reached 46.5 % of the total earnings of the
country's banking system30.
Sberbank's share in different segments of the financial market:
2011
2010
Assets
26,8%
27,3%
Capital
29,1%
26,4%
Loans to corporate clients
32,9%
31,3%
Loans to retail clients
32,0%
31,9%
Funds from corporate clients
14,5%
15,9%*
Funds from retail clients
46,6%
47,9%
Earnings before income tax
46,5%
39,2%
*The 2010 figure adjusted for changes made in 2011: funds in precious metals excluded
27
28
29
30
Regulation #312-P on the Bank of Russia's Procedure of Granting Loans Secured by Assets or Surety to Lending
Institutions dated 12 November 2007
According to FT Global 500
Technological scheme #2000 of collaboration between divisions of JSC Sberbank of Russia when implementing the
“case-by-case” model of collection of bad assets; provisional technological scheme #2051 of early collection of
overdue debt in the Small and Micro Loans segment; Rules of Procedure #278 for handling bad assets
Share in the earnings of the banking system before tax with no events following the reporting date taken into
account. Source – Review of the Banking Sector of the Russian Federation (online version) No.113, March 2012
6
While dealing with relevant issues related to the current situation in the market and the
economy as a whole, Sberbank continued developing within the approved Strategy31: 2011
became the third year of implementation of the Strategy, and its progress is overall successful and
within the schedule.
In retail business, Sberbank managed to reduce lines significantly and improve the quality
of service. The share of clients that have to wait in line for over 15 minutes32 fell from 41% to
13% in a year.
Federal campaigns of sales and retail client loyalty programs launched in late 2011 had a
sizable impact. In December, retail clients were granted loans totaling over 190 bn rubles which is
the maximum figure for the Bank. This immediately strengthened Sberbank's position in the retail
loans market (with the Bank's share growing 0.6% in December) and pushed the Bank up to 1st
place in the credit card market in terms of debt volume.
The Bank was actively promoting its services provided via remote channels throughout the
year. As a result, the number of active consumers of these services increased several times:
3.4 times for Sberbank Online, 3.8 times for mobile banking, and 2.4 times for online trading.
By the end of 2011, Sberbank managed to increase significantly its market share in lending
to corporate clients, by 1.6 % to 32.9%. In the Bank’s opinion, the growth of its share stems from
implementation of strategic initiatives in collaboration with corporate clients.
For example, a range of trade finance products was developed for corporate business clients.
As a result, Sberbank's share in the market of trade finance and documentary business reached
about 40%.
The Trust loans granted under the Loan Factory technology was in particular demand
among clients. Over 48,000 clients received them in 2011.
Services provided to corporate clients via remote channels are actively developing. The
number of users of remote banking services systems for legal entities exceeded 260,000 clients.
In 2011 Sberbank continued developing its overseas network.. While strengthening its
subsidiary banks' positions in CIS markets, the Bank started creating growth points in Central and
Eastern Europe and Switzerland.
Sberbank created a new business unit within the program of integration with Troika
Dialog — Wealth Management. Its projects include development of broking operations and asset
management operations.
Rapid growth of its business is accompanied by improvements in support functions.
In particular, in 2011 the Bank opened Europe's largest data processing center, and work
continued to bring together IT systems of territorial banks.
5 new centers supporting client operations were opened in 2011. Centralization and
standardization of operating processes and functions added to growth in performance of business
processes. The Bank completed the diagnostics stage and seriously set about the implementation
of a program of end-to-end optimization of functions performed by supporting divisions.
High development rates of business and supporting functions require that an adequate
controls and risk management system should be built. By the end of 2011, Sberbank managed to
improve significantly the risk management system. For example, it allows assessing risks of over
50,000 retail loans a day with an invariably high quality of the loan portfolio.
31
32
The 2014 Sberbank of Russia Development Strategy (hereinafter, the Strategy) was approved by the Supervisory
Board of Sberbank of Russia in October 2008
Data gathered in internal structural divisions equipped with the Line Management System
7
When pursuing its development strategy, the Bank is especially focused on developing the
HR management system. Employees are regularly tested to make decisions on new assignments
and personnel rotation. About half of the Bank's entire staff undergoes annual training within
different professional development programs. The transition continued to a grade-based system
and a new incentive and remuneration system, introduced in over 4,000 city internal structural
divisions.
Sberbank consistently develops management reporting tools in order to make sure that right
management decisions are made. Work is done to build a management information system (MIS)
and a centralized data repository, a program for implementation of a balanced scorecard system
and development of standard management reports was launched.
4.
2011 Results in Brief
4.1. Main Operating Outcomes
2011 was completed by Sberbank with the following economic figures33:
mln rubles
Assets
Earnings before tax
Earnings after tax
Capital
2011
10,419,419
408,902
310,495
1,515,780
Calculated pursuant to Regulation #215-P
34
2010
8,523,247
242,203
173,979
1,241,876
% change
22.2%
68.8%
78.5%
22.1%
of the Bank of Russia, the Bank's capital grew
22.1% in 2011. The source of the growth in the capital was the net profit earned
Sberbank's Ratings Awarded by International Agencies
Sberbank's ratings compared with ratings of the Russian Federation:
1 January 2012
Fitch
Ratings
Moody's
Long-term rating in a foreign currency:
Sberbank
Russian Federation
Rating of international liabilities
Loan participation notes issued as part of Sberbank's
Financial and Logistic Support program
RF Eurobonds
1 January 2011
Fitch
Ratings
Moody's
BBB
BBB
Baa1
Baa1
BBB
BBB
Baa1
Baa1
BBB
A3
BBB
A3
BBB
Baa1
BBB
Baa1
On 8 April 2011, Fitch Ratings upgraded Sberbank's individual rating from C/D to C and
later, on 25 January 2012, discontinued these ratings for all financial institutions by replacing
them with the Sustainability Rating. Sberbank was awarded the Sustainability Rating of bbb. This
rating describes the Bank's creditworthiness without external support.
33
34
Hereinafter, figures represented in tables may different from estimates as a result of rounded data
Regulation No.215-P on the Methodology of Determination of Own Funds (Capital) of Lending Institutions
approved by the Bank of Russia on 10 February 2003
8
5.
Bank's Operations that Have the Most Significant Impact on
Profit or Loss Changes. Bank's Operations in Different
Geographical Regions
Aggregate Profit and Loss Statement
mln rubles
Net interest income
Total interest income
On funds in lending institutions
On loans to legal entities and retail clients
On investments in securities
Total interest expense
On funds from lending institutions
On funds from legal entities
On funds from retail clients
On issued debentures
Change in reserves
Net income generated by securities transactions
Net income generated by foreign currency transactions
Net fee income
Other operating income
Operating costs
Earnings before tax
Assessed (paid) taxes
Earnings after tax
2011
575,826
837,888
7,886
729,557
100,445
(262,062)
(28,280)
(43,141)
(187,479)
(3,161)
11,240
7,388
9,036
125,576
17,204
(337,368)
408,902
(98,407)
310,495
2010
502,833
796,993
8,063
685,405
103,525
(294,160)
(31,007)
(41,702)
(213,176)
(8,275)
(86,869)
16,554
1,592
111,942
14,871
(318,720)
242,203
(68,225)
173,979
Growth, %
14.5%
5.1%
(2.2%)
6.4%
(3.0%)
(10.9%)
(8.8%)
3.5%
(12.1%)
(61.8%)
(112.9%)
(55.4%)
467.5%
12.2%
15.7%
5.9%
68.8%
44.2%
78.5%
Operating income before creation of reserves35 made by the Bank in 2011 reached 735.0
bn rubles against 647.8 bn rubles by end of 2010. Net interest income and net fee income were
better than in 2010.
The Bank increased its net interest income by 14.5%. Its 2011 amount was 575.8 bn rubles
in absolute terms. The increase of net interest income was possible owing to both growth of
interest yields and a drop in interest expenses.
Interest income36 added 5.1% reaching 837.9 bn rubles because of growing income from
lending of legal entities and retail clients.

Over half of the Bank's interest income is generated by loans to legal entities. The
amount of interest paid under loans to legal entities added 0.7% or 3.5 bn rubles during
the reporting year, reaching 489.0 bn rubles. The loan portfolio of legal entities 37
increased 34.1% over the year and was about 6.4 trillion rubles. The overall worth of
loans granted by the Bank during the year to legal entities exceeded 5.5 trillion rubles,
28% more than in 2010.
 Interest income generated by lending to retail clients rose 20.9 % or 37.3 bn rubles to
215.5 bn rubles, larger lending volumes being the main factor of income growth.
Sberbank's retail loan portfolio grew 36.6 % during the year (11.3 % the year before) to
about 1.8 trillion rubles. Such significant portfolio growth was, in many respects,
facilitated by special promotions and programs carried out by Sberbank throughout the
reporting year. In addition, portfolio growth is boosted by operations via the Loan
35
36
37
Operating income before creation of reserves is calculated in Form 0409807 as follows: line 18 minus line 16
minus line 15 minus 14 minus line 14
As required by BoR Directive #2332-U, interest income includes interest on loans, fee income generated by
lending operations, interest income for previous years, fines and penalties
The size of the loan portfolio of legal entities given before deductions made towards reserves
9




Factory technology that the Bank has been developing since 2008. In 2011, all territorial
banks were using this technology to grant consumer and car loans and started processing
requests for housing loans.
Previous year's income, fines and penalties were collected by the Bank from its clients
within its planned effort aimed at bad assets as part of restructuring or sale of assets. In
2011, 11.6 bn rubles of the income type in question was received against 12.3 bn rubles
the year before.
Income from sale of insurance products38 in 2011 reached 13.4 bn rubles against 9.4 bn
rubles the year before. This comes as evidence that there is demand for banking
insurance programs among the Bank's clients.
Interest income generated by securities investments fell 3.0% or by 3.1 bn rubles to
100.4 bn rubles. Despite a 15.9% reduction in the securities portfolio held by the Bank,
interest income it generated barely changed against the year before. This came as a result
of structural changes in the Bank's securities portfolio: the share of governmental
securities went down from 67% to 52% after bonds of the Bank of Russia and certain
series of the Federal Bonded Debt were redeemed, and the share of higher-yield
securities such as corporate bonds increased from 20% to 31%. Here, the Bank was
primarily purchasing bonds included in the Pawn List of the Bank of Russia.
Interest income on funds placed in lending institutions lost 2.2% and fell to 7.9 bn
rubles because of a reduction in investments made in the Bank of Russia.

Interest expenses came down 10.9% or 32.1 bn rubles mainly because of expenses on funds
from retail clients. Interest expenses were 262.1 bn rubles in the year.

Interest expenses on funds from retail clients fell most dramatically, 12.1% or by 25.7 bn
rubles. Their 2011 volume was 187.5 bn rubles. However, the amount of deposits was
steadily increasing, with their balance growing 17.8% or 833 bn rubles over the year to
5,523 bn rubles.
A reduction in interest expenses and a parallel growth in deposit volumes were mainly
based on the following factors:


the Bank repeatedly lowered deposit interest rates during the two preceding years:
In 2011, 2-plus year deposits opened in 2009 and 1-plus year deposits opened in
2010 were extended or replaced with deposits at lower rates as the Bank made
several decisions in 2009 and 2010 to lower interest rates for the given deposits. This
had a positive impact and reduced the overall cost of funds from retail clients;
growth of the balance on clients' bank card accounts and their share in the structure
of funds from retail clients.

On the contrary, interest expenses on funds from legal entities increased 3.5% or by 1.4
bn rubles to 43.1 bn rubles. Their growth is caused, in many respects, by higher interest
rates in the market in 2011 as compared to 2010.
 Interest expenses on issued debentures39 fell 61.8% or 5.1 bn rubles to 3.2 bn rubles.
This item's dynamics were primarily affected by the Bank's decision to cut interest rates
for promissory notes of legal entities.
Net income generated by securities operations fell 9.2 bn rubles during the year to 7.4 bn
rubles. The greatest income was generated by stocks and corporate bonds.
38
39
Symbol 12406 “Income Consultation and Information Services” for retail clients that reflects major incomes from
the sale of insurance products. Other revenues from similar activities are entered in Symbol 16202 “Fee Charges
for Intermediary Services under Broking and Similar Contracts” and, pursuant to Rules for completing Form
0409807, are entered in the “Fee Income” item. Sberbank does not act as the insurer during the sale of insurance
products. Total income generated by the sale of insurance products in 2011 was 14 bn rubles.
This figure includes net income from operations with securities, valued fairly through profit and loss, available for
sale and kept till redemption (Line 6, Line 7 and Line 8, Form 0409807)
10
Net income on foreign currency transactions40 increased from 1.6 bn rubles in 2010 to 9.0
bn rubles in 2011. The difference in income amounts results, to a large degree, from net income
on conversion operations that include the financial result for fixed-term transactions (currency
SWAP transactions). Subject to RAS, the financial result of these transactions was significantly
dispersed in time, and net income on conversion operations was affected by the cash side of
transactions not closed by the reporting date.41 Currency SWAP transactions are made by the
Bank to maintain liquidity in different foreign currencies required to conduct business.
Net fee income rose 12.2% to 125.6 bn rubles. Growth was based on fee income generated
by transactions with bank cards, acquiring, bank guarantees, salary projects, cash and settlement
operations. Fee income related to budget funds, maintenance of accounts and securities
transactions fell.
In 2011 the Bank generated income from42 release of provisions in the amount of 11.2 bn
rubles, while in 2010 the Bank's expenses incurred in creating reserves amounted to 86.9 bn
rubles. Dynamics of reserves is based mainly on loan reserves: income from release of provisions
in 2011, as part of planned arrangements with bad assets, amounted to 16.4 bn rubles as compared
to expenses of 80.6 bn rubles in 2010. The Bank also continued to create reserves for newly
issued loans.
Operating income after creation of reserves was 1.3 times that of the previous year.
Operating costs of the Bank grew 5.9% to 337.4 bn rubles.
Items that mostly affected the growth in operating costs:



planned growth of the cost of maintaining personnel;
administrative and business expenses that accompany development of a business;
charges transferred to the Fund of Deposits’ Mandatory Insurance and increased as a
result of larger deposits.
Growth in operating costs was checked by:
 a reduction in the negative revaluation of transactions in precious metals;
 a lower cost of assignment of own claims.
In 2011 Sberbank produced a financial result that exceeded results of the previous year:


40
41
42
2011 earnings before tax amounted to 408.9 bn rubles (in 2010: 242.2 bn rubles).
2011 earnings after tax amounted to 310.5 bn rubles (in 2010: 174.0 bn rubles)
This figure includes net income on foreign currency transactions and net income on foreign currency revaluation
(Line 9 and Line 10, Form 0409807)
Starting on 1 January 2012, the record-keeping of transactions under contracts for derivative financial instruments
was amended as required by Russian laws (see section “Changes in the Bank's Accounting Policy for 2012” of
this document)
This figure includes changes in the allowance for possible losses under loans, securities and other losses (Line 4,
Line 14, Line 15 and Line 16, Form 0409807)
11
Information on different operations carried out by the lending institution in a number of
geographical regions
The Bank offers a complete package of services throughout the Russian Federation.
Sberbank of Russia is also represented in other countries' markets:
through subsidiary banks43 – in the Republic of Kazakhstan, Ukraine and the Republic of
Belarus which offer banking services in their respective regions by raising funds from
retail clients and corporate clients, performing money transfers, lending to individual and
corporate borrowers etc.
 through its branch in India (New Delhi) – as of 1 January 2012 the branch carries out
exclusively its own operations in the Indian market (see section “Branch Network of the
Bank” of this Explanatory Note).

6.
Prospects of the Bank's Development
For the purposes of successful implementation of the 2014 Sberbank of Russia
Development Strategy, in 2012 the Bank should ensure performance levels that would sustain
costs of implementation of a wide range of strategic projects. This requires dealing with the
following main objectives and achieving key performance indicators.
In terms of finance, the Bank plans to become a leader in financial results in the Russian
banking market which requires, in turn, effort to improve the quality of the loan portfolio, ensure
repayment of unserviced loans, maintain the interest margin on all major banking products, and
control operating costs.
Priority objectives for client operations:

a significant improvement in perceptions of the Bank and higher satisfaction levels of
both individual and corporate clients. While handling this objective, the Bank will pursue
its effort to shorten lines in its client services divisions and implement innovative
services and products to make the Bank more attractive for segments with a high
development potential in the future;
 an increase in its share of the Russian banking system's assets by strengthening its
positions in major segments of the financial market.
As part of improvement of processes and technologies in 2012, the Bank plans to
encourage effective development of its business, boost staff productivity and implement a number
of critical projects and technologies by:


completing the Bank's transition to a process-and-functional model;
carrying out process centralization, standardization and optimization in operating and
support functions;
 continuing centralization of its IT infrastructure;
 continuing creation of the Bank's network of divisions as a modern standardized sales
and client services channel that helps to deal effectively with business development
objectives and corresponds to a new brand and corporate style of the Bank.
43
This explanatory note does not contain information on subsidiaries. As of 1 january 2012, Sberbank holds the
following:
 99.9977% of the shares pf DB AO Sberbank (Kazakhstan)
 100% of the shares in OAO SBERBANK OF RUSSIA (Ukraine)
 97.9055% of the shares in OAO BPS-Sberbank (Republic of Belarus).
12
The Bank's success depends in many respects on the quality of its management and HR
system. The 2012 top priority in this area involves:

developing the Bank's management model based on a holding structure. The Group's
unified policies of risk management and information technologies will be developed after
the Bank's international strategy is brought up to date;
 encouraging a corporate culture typical of the entire Group of Sberbank of Russia and
aimed at consistent improvement, openness to changes and innovations;
 implementing a comprehensive HR development system that involves recruitment,
adaptation, group training, assessment, and career management;
 boosting transparency and efficiency of the performance management system in the Bank
by developing a balanced scorecard system.
7.
An Overview of Risks Related to Different Operations of the Bank
7.1. Country Concentration of Assets and Liabilities of the Bank
mln rubles
Assets
1 Funds in lending institutions
2 Net loans receivable
3 Net investments in securities
3.1 Net investments in securities at fair value
through profit or loss
3.2 Net investments in securities and other
financial assets available for sale
3.3 Net investments in securities kept till
redemption
4. Fixed assets, intangible assets and stocks
Liabilities
1 Funds from lending institutions
2 Funds from clients other than lending
institutions
2.1 Deposits of retail clients
mln rubles
Assets
1 Funds in lending institutions
2 Net loans receivable
3 Net investments in securities
3.1 Net investments in securities at fair value
through profit or loss
3.2 Net investments in securities and other
financial assets available for sale
3.3 Net investments in securities kept till
redemption
4 Fixed assets, intangible assets and stocks
Liabilities
1 Funds from lending institutions
2 Funds from clients other than lending
institutions
2.1 Deposits of retail clients
1 January 2012
Russia
CIS
countries
Countries from the
Group of Developed
Countries
Other
countries
1486
7,011,957
1,501,912
20,031
482
115,764
44,492
3,093
35,758
231,314
33,818
-
717
299,836
404
404
1,077,135
36,275
26,624
-
404,747
5,124
7,195
-
370,934
-
-
15
157,192
7,621,882
25,417
13,038
285,608
208,451
9,250
33,827
5,497,384
12,105
7,444
5,913
1 January 2011
24
5,305,350
1,812,300
29,539
782
40,458
37,882
1,013
60,430
249,187
283
653
119,306
958
958
1,430,644
34,142
283
-
352,118
2,727
317,379
-
-
-
54,295
6,453,273
7,878
9,636
219,476
182,168
9,445
21,901
4,673,652
8,665
2,705
4,491
-
13
The Russian Federation accounts for the bulk of the Bank's assets and liabilities. Net loans
payable by legal entities represent the bulk of assets placed with non-residents. Loans payable by
non-resident legal entities are dominated by transactions with groups that are Russian in terms of
the location of the majority of their business.
7.2. Credit Risk
Credit Risk Management
A credit risk means the risk of possible financial losses arising when borrowers fail to
perform, in full or in part, or unduly perform their obligations to the Bank related to supply of
funds or other financial assets.
Credit risk is the type of risk most significant for the Bank so it pays particular attention to
its management and monitoring the quality of the loan portfolio. Sberbank applies the following
main credit risk management methods:

credit risk prevention by identifying, analyzing and assessing potential risks at a stage
preceding transactions exposed to the credit risk;
 restriction of the credit risk by establishing risk limits and/or limitations;
 monitoring and control of the degree of credit risk;
 creation of adequate reserves and relevant structuring of transactions in order to
minimize credit risk.
Credit risk management for loans to legal entities
In 2011, the Bank maintained a procedure for mandatory independent expert examination of
credit risks, performed before a decision was made to grant a loan to medium and large business
borrowers and the largest clients.
By using the existing system of formalized assessment of the credit risk the Bank can
correctly assess the expected degree of credit risk made up of the client risk (likelihood of a
default) and the transaction risk (losses in the event of a default). As part of this system, the Bank
approved:

a method for assessing the likelihood of a default of its contracting parties
This method is based on tools of economic and mathematical modeling, an end-to-end
approach that secures statistical and expert assessment of the probability of different
outcomes and the size of potential losses based on different security. In addition, the
method involves improvement of the model based on gathered statistical data on actual
defaults given changing macroeconomic conditions in the productive sector of the
Russian and global economies.
 a model of assessment of losses in the event of a default
This model is based on statistical and expert information on possible outcomes of
realization of the credit risk, including events related to:




repayment of overdue debt with funds of the contracting party and third parties,
sale of collateral;
write-off of overdue debt,
reissue of credit and other contractual liabilities that were subject to a default into
other financial instruments.
Credit risk management for loans to small businesses
In 2011, the Bank continued improving the risk management system for loans granted to
sole traders and small businesses. In order to identify risk types and assign ratings, clients are
divided into two segments: micro business which involves retail tools of risk assessments and
small business which requires creation of risk assessments tools fully integrated in the risk
management system for medium and large corporate clients. The Bank uses two unified
centralized technologies for lending to small business:
14
Loan Factory – a product approach is applied during risk assessment: the scoring grade is
calculated, risk is assessed, the credit price and limit are calculated when the client files a
loan request, and a rating is assigned to the transaction. Starting in 2011, all territorial banks
have been processing two types of unsecured loans through the Credit Factory (48,900 loans
totaling 32.3 bn rubles were granted during the year). There are plans to expand this list in
2012 by including secured loans such as Express Auto and Express Asset.
 Loan Conveyor is a technology that involves assignment of a long-term rating to a
client/group of related parties based on an adapted corporate model of risk assessments
that takes into account specific features of this client category, builds a limit management
system, and a decision-making authority system. 2011 saw the completion of the first
stage of implementation of the Loan Conveyor technology in two territorial banks.
Testing of this technology involved a unified approach to assessment of collateral and
assessment of legal risks, optimization of the credit process, reduction of transaction
review times, centralized independent expert examination of risks that included
verification of client data, assessment of the credit history and the borrower's business
reputation. 347 loans worth 1.3 bn rubles were granted during the first stage. In 2012
there are plans to carry out gradual automation and replication of the Loan Conveyor
technology throughout Sberbank's network.

Managing the credit risk of retail clients
There is an invariable need, in the context of steady growth in the retail loan portfolio, to
keep bad debt at low levels during planned growth in retail loan volumes.
For the purposes of retail loan risk control, the Bank continuously monitors the quality of its
loan portfolio by divisions and main credit products. To this end, Sberbank has been using the
Credit Factory lending technology since 2008. Implementation of this risk management system
throughout all territorial banks facilitates control of risks at all lending stages, maintains a good
quality of the portfolio and gradually reduces service times to borrowers. In 2011, 6.4 mln
individual requests were processed under the Credit Factory technology, 4 mln loans worth about
690 bn rubles or 56% of all loans granted by the Bank to retail clients in 2011 were granted. The
average request consideration period fell from 35 hours to 29 hours.
Starting in 2011, all territorial banks have been using the Loan Factory technology to
consider requests for consumer and car loans and main types of housing loans. Starting in 2011,
the Loan Factory has been using the pricing technology based on a client's individual risk levels.
There are plans for 2012 to include new products in the Loan Factory – Express Loans, Car Loans
Based on 2 Documents, special mortgage lending programs etc.
The quality of loan and equivalent accounts receivable
mln rubles
Quality categories of loans receivable:
I
II
III
IV
V
Loans and interest receivable
Deposits in the Bank of Russia (major
shareholder of Sberbank of Russia)
Loans and interest payable to other shareholders
(members) of the lending institution
1 January 2012
Claims
Claims for
for loans
interest income
1 January 2011
Claims
Claims for
under loans
interest income
3,485,093
3,497,106
731,235
161,625
409,211
8,284,270
-
7,976
19,752
5,860
656
7,151
41395
-
1,987,167
3,111,369
655,767
148,584
469,827
6,372,716
135,000
3,834
12,969
3,429
852
8,245
29,330
4
-
-
-
-
15
mln rubles
Loans granted on preferential44 conditions
payable, total, including:
to shareholders (members)
Amount of overdue debt45
Amount of restructured debt
Collateral, total, including:
Quality Category I
Quality Category II
Estimated allowance for possible losses excluding
the reserve for the portfolio of similar loans
Estimated allowance for possible losses including
the reserve for the portfolio of similar loans
Actually created allowance for possible
losses, total, including by quality categories:
I
II
III
IV
V
1 January 2012
Claims
Claims for
for loans
interest income
67,855
662
1 January 2011
Claims
Claims for
under loans
interest income
57,926
248
274,754
1,036,401
8,276,763
135,648
3,485,185
681,567
4,807
8,630
X
X
X
8,787
305,524
717,739
6,896,062
172,051
2,986,853
720,549
6,292
6,324
X
X
X
9,204
555,908
8,249
591,670
8,730
625,399
8,858
658,415
9,248
507
47,419
101,227
80,379
395,866
242
1,270
346
7,001
488
44,676
91,996
78,471
442,783
166
543
392
8,148
Overdue debt fell 30.8 bn rubles during the year as a result of a reduction in overdue debt of
legal entities.
Restructured debt46 increased over the year from 717.7 bn rubles to 1,036.4 bn rubles;
claims for interest under restructured loans rose from 6.3 bn rubles to 8.6 bn rubles.
Loan restructuring means any amendments made in favor of the borrower to original
material terms of a loan contract executed by him or her. Amendments to material contractual
terms include a longer credit period and a larger limit, changes in the schedule of principal and/or
interest repayment, changes in the procedure of calculation of interest, and lower interest rates.
In 2011 Sberbank continued pursuing a conservative reserves policy in order to make
adequate allowances for possible losses under loans and allowances for possible losses required
by the Bank of Russia and47 international standards.
A case-by-case appraisal of the quality of each loan applies to allowances made under loans
to legal entities and small businesses evaluated not on the portfolio basis. Special focus is
invariably placed on analysis of the borrower's financial condition, existing debt burden, sources
of loan repayment and their reliability, quality and liquidity of collateral, and other credit risk
factors. Classification of such loans, i.e. inclusion of a loan in the respective quality category is
based on the individual professional judgment on the credit risk level under the loan.
A new system of appraisal of the financial condition and a procedure for determination of
possible losses for the Bank's corporate borrowers were successfully implemented throughout
2011. Based on the new method, appraisal and analysis of borrowers' financial condition takes
into account the likelihood of the default of the borrowing legal entity. The Bank's expected losses
are defined as the amount of the Bank's aggregate possible losses in the event of a default of such
Preferential loans are loans with an interest rate which is 20% below the
basic rate established by Sberbank for the given lending programs.
45
This figure is based on the balance on balance accounts of overdue debt and interest
46
Based on Method No.2047 for Determination of Loan Quality, Appraisal of Collateral Admitted under the Loan
and Calculation of Allowance for Possible Losses under Loans approved by Sberbank on 22 December 2010. The
2010 figure was recalculated pursuant to the new method.
47
Regulation No. 254-P of the Bank of Russia dated 26 March 2004 On the Procedure for Creating Allowances for
Possible Losses under Loans, Loan and Equivalent Receivables by Lending Institutions and Regulation No.283-P
dated 20 March 2006 On the Procedure for Creating Allowances for Possible Losses under Loans by Lending
Institutions.
44
16
borrowers. New allowance approaches help to make a more accurate estimate of the individual
reserves interest for each corporate client, in particular. Principles fundamental to the possible loss
appraisal system are based on Western best practices in risk management.
Sberbank creates reserves for loans to retail clients and small businesses by following the
portfolio approach. Standard loans that do not exceed limitations established by the Bank of
Russia are included into similar portfolios and sub-portfolios by credit risk levels. On 1 March
2011, the Bank adopted a new regulation to create allowances for possible losses under loans 48
that stipulates a classification of the maximum number of loans within a portfolio of similar loans.
The credit risk of the portfolio of similar loans is reassessed by the Bank every quarter through
analysis of losses under loans to retail clients and small businesses for previous years. The Bank's
plans include maximum automation of the creation of reserves in order to cut work hours of staff
involved in this process and a reduction in the number of operating errors.
When making allowances for possible losses in 2011, inventory was taken of non-core
assets not used by the Bank or its subsidiaries for banking activities defined in Article 5 of the
Federal Law On Banks and Banking. The Bank started making allowances for possible losses in
terms of such assets in 201249 after the effective date of the BoR Directives.
Assets with overdue repayment dates50
mln rubles
1 January 2012
Allowance for possible
losses
including those with overdue repayment dates
Amount total
1. Loan receivable total, including:
1.1 Loans granted (credits) deposits
made
1.2 Discounted promissory notes
1.3 Cash claims within finance
transactions against assignment of a
cash claim (factoring)
1.4 Claims under acquired rights
(claims) under the transaction
(assignment of claim)
1.5 Claims under transactions of
disposal (acquisition) of financial
assets combined with the right
granted to the counterparty to defer
payment (delivery of financial
assets)
1.6 Claims for a refund of monies
provided under transactions in
securities on a pay-back basis
without recognition of received
securities
1.7 Lessor's claims to the lessee
under financial lease transactions
2. Securities51
3. Other claims
48
49
50
51
including by the overdue period
under 30 31 to 90
91 to 180
Over 180
days
days
days
days
45,429
24,942
13,465
272,715
Estimated
681567
Actual
625,399
267,066
657,193
592,186
-
-
-
-
-
-
-
-
-
-
-
-
1997
2,959
2,959
4,296
143
259
299
3,595
16,240
25,936
179,416
-
-
-
-
-
5,116
4,259
-
-
-
-
-
-
-
-
429,743
199,754
79
21,164
2,317
1,322
1,222
79
16,302
2,547
22,242
2,547
23,601
8,284,270
356,552
8,045,397
350,200
45,286
24,683
13,164
-
-
-
-
-
-
-
8,127
1997
51,271
Regulation No. 2046 on the creation and use at JSC Sberbank of Russia of a reserve for possible losses on loans
dated 22 December 2010
BoR Directives No.2612-U dated 20 April 2011 and No.2751-U dated 14 December 2011 amending Regulation
No.283-P On the Procedure of Creation of Allowances for Possible Losses under Loans by Lending Institutions.
of the Bank of Russia dated 20 March 2006
Based on Form 0409115 data with events following the reporting date taken into account
The 2011 and 2010 tables include part of the securities portfolio for which the Bank makes allowances for
possible losses
17
mln rubles
1 January 201`
Allowance for possible
losses
including those with overdue repayment dates
Amount total
1. Loan receivable total, including:
1.1 Loans granted (credits) deposits
made
1.2 Discounted promissory notes
1.3 Cash claims within finance
transactions against assignment of a
cash claim (factoring)
1.4 Claims under acquired rights
(claims) under the transaction
(assignment of claim)
1.5 Claims under transactions of
disposal (acquisition) of financial
assets combined with the right granted
to the counterparty to defer payment
(delivery of financial assets)
1.6 Claims for a refund of monies
provided under transactions in
securities on a pay-back basis without
recognition of received securities
1.7 Lessor's claims to the lessee under
financial lease transactions
2. Securities52
3. Other claims
including by the overdue period
under 30 31 to 90
91 to 180
Over 180
days
days
days
days
38,693
28,804
21,832
314,338
Estimated
720,549
Actual
658,415
312,483
697,315
623,024
-
-
-
-
-
-
-
-
-
-
-
-
-
36
36
2,839
64
407
584
1,784
13,808
27,700
-
-
-
-
-
9,317
7,583
6,237,716
403,667
6,084,191
400,757
38,628
28,397
21,249
-
-
-
-
-
-
-
3,569
-
67,980
81,904
-
-
-
-
-
-
-
-
359,415
204,600
79
17,651
0
1,734
0
1,406
0
2,531
79
11,890
2,560
18,522
2,560
19,490
In 2011, the loans receivable with overdue repayment dates53 fell from 403.7 bn rubles to
356.6 bn rubles primarily because of a reduction in total loans with a delay of over 180 days.
Loans receivable with overdue repayment dates of under 30 days grew in the segment of loans to
retail clients. In the portfolio of legal entities, loans with overdue repayment dates went down by
all delay periods. In general, the specific weight of loans with amounts overdue for over 90 days
fell from 5.4% to 3.5% in the loan portfolio during the year.
Sberbank defined its goals for handling bad assets of clients for 2012-2014. Main goals
include increasing repayment rates of bad assets through modernization of existing business
processes and implementation of new ones for different client segments; increasing the Bank's
margins by restoration of reserves for problem situations that have been dealt with; boosting
performance through business process automation and implementation of specialized collection
within three main models: the individual collection system, the conveyor collection system, and
collection from retail clients.
As part of its efforts aimed at legal entities, the business process for an early-stage handling
of new problem situations has been introduced and is in place throughout the Bank's vertical
structure. This improved the figures of transition of debt overdue for 30 to 60 days to the 90 plus
days category. This transition rate was 70% in 2010 and 50% in 2011.
Outcomes of the handling of bad assets54 of legal entities in 2011:




bad assets recovered in cash amounted to 120.5 bn rubles;
loans worth 79.8 bn rubles transitioned from the bad category to good loans;
overdue interest, fines, penalties and forfeits worth 25.7 bn rubles have been repaid;
allowance worth 148.5 bn rubles for possible losses under loans among bad assets has
been restored.
A high repayment rate secured by bankruptcy procedures at 55% of the principal as of the
1st day of the month following the date of application for bankruptcy or request for inclusion in
the credit claim registry significantly facilitated a reduction in bad assets.
52
53
54
The 2011 and 2010 tables include part of the securities portfolio for which the Bank makes allowances for
possible losses
The 2010 figure has been recalculated by taking loans with overdue fee payments into account
Assets are classified as bad pursuant to the Sberbank Regulation on working with bad Assets No. 278
18
Special effort is made to control recovery of overdue debt on loans to retail clients at an
early stage. For this purpose, the Bank implemented Tallyman, an automated system. The system
follows a client approach, supports a centralized algorithm of debt collection, and includes a set of
debtor treatment strategies that make allowances for client risks, likelihood of repayment,
economic reasonability of debt collection measures, and criteria for forwarding the client to
higher stages of collection. In addition, the system optimizes distribution of e-mail, SMS
messages, letters, wires, automatic voice notices given to debtors regarding overdue liabilities.
This system is integrated with the automated calling system which significantly reduces overdue
loan handling times. In addition, there is a new opportunity to get relevant data on debt at the
same time the call is put through to the operator.
The concentration of credit
The Bank pays special attention to controlling the concentration of credit risks and meeting
prudential requirements of the Bank of Russia.
Structure of loan and equivalent accounts receivable
mln rub
Deposits in the Bank of Russia
Interbank loans
Loan and equivalent accounts receivable from legal entities,
including:
Loans to resident legal entities
Loans to non-resident legal entities
Loans to governmental organizations
Claims under debt arising through the Bank's execution of
claim assignment (cession) contracts with a deferred payment
Claims for a refund of money provided under transactions in
securities on a pay-back basis without recognition of received
securities
Other claims
Loan and equivalent accounts receivable from retail clients,
including:
Loans to retail clients
Claims under debt arising execution of claim assignment
(cession) contracts with a deferred payment
Loans receivable, total
1 jan 12
118,338
Spec.wt %
1.4%
1 jan 11
135,000
170,564
Spec.wt %
2.1%
2.7%
6,388,537
77.1%
4,765,699
74.8%
5,453,287
442,878
267391
65.8%
5.3%
3.2%
4,232,864
261,606
152,858
66.4%
4.1%
2.4%
51161
0.6%
67033
1.1%
165,680
2.0%
47,759
0.7%
8139
0.1%
3,579
0.1%
1,777,395
21.5%
1,301,453
20.4%
1,777,285
21.5%
1,301,268
20.4%
PO
0.0%
185
0.0%
8,284,270
100.0%
6,372,716
100.0%
Funds deposited in the Bank of Russia are deposits with the major shareholder55. As of 1
January 2012, there are no deposit balances in the Bank of Russia (as of 1 January 2011, the
balance was 135 bn rubles).
77% of loans and equivalent accounts receivable of Sberbank were represented by debt of
legal entities, 21% – that of retail clients, the balance – of loans to banks.
Structure of loan and equivalent accounts receivable by currency
mln rubles
Rubles
US Dollars
Euros
Other currencies
Loans receivable, total
1 January 2012
6,783,415
1,320,174
150,875
29,805
8,284,270
specific weight
in the portfolio, %
81.9%
15.9%
1.8%
0.4%
100.0%
1 January 2011
5,150,840
1,045,439
151,676
24,760
6,372,716
specific weight
in the portfolio, %
80.8,%
16.4%
2.4%
0.4%
100.0%
Within the structure of the loan portfolio by currencies, the share of ruble loans went up
1.1% as these loans still account for the bulk of the loan portfolio.
55
Information about shareholders holding over 5 % of voting shares in Sberbank of Russia are disclosed pursuant to
Sberbank's Accounting Policy
19
Level of concentration of major credit risks
Based on its internal regulations, the Bank has implemented a procedure of daily monitoring
of major credit risks and forecasting how requirements established by the Bank of Russia are met
– N656 (maximum risk amount per one borrower or a group of related borrowers) and N7
(maximum amount of major credit risks). The level of concentration of major credit risks is
estimated by the Bank as acceptable.
As of 1 January 2012, the share of loans to the ten largest borrowers (groups of related
borrowers) was 16.6% of the loan portfolio57 (15.2% the year before). The Bank's largest
borrowers include representatives of different sectors of the economy. Therefore, the credit risk is
sufficiently diversified.
Structure of the loan portfolio of retail clients
mln rubles
Housing loans, total
including mortgage loans
Car loans
Other consumer loans
Loans to retail clients, total
1 January 2012
762,161
540,654
82,152
932,971
1,777,285
specific weight
in the portfolio, %
42.9%
30.4%
4.6%
52.5%
100.0%
1 January 2011
599 960
428 235
79 476
621 832
1301268
specific weight
in the portfolio, %
46.1%
32.9%
6.1%
47.8%
100.0%
The 2011 retail loan portfolio of consumer loans increased primarily on account of
consumer loans.
Sector structure of the loan portfolio of resident legal entities
mln rubles
1 January 2012 specific weight 1 January 2011 specific weight
in the portfolio,
in the portfolio,
%
%
Loans to legal entities* (including sole proprietors),
5,453,287
100.0%
4232,864
100.0%
total, including by type of economic activity:
Processing facilities
1,306,341
24.0%
1,089,367
25.7%
Wholesale and retail trade, repair of motor transport,
1,093,827
20.1%
963,055
22.8%
motorcycles, domestic appliances and private use
items
Transactions in and rent of real estate, provision of
717,402
13.2%
494,756
11.7%
services
Transport and communications
549,409
10.1%
265,607
6.3%
Agriculture, hunting and forestry
401,335
7.4%
334,093
7.9%
Construction
330,860
6.1%
298,267
7.0%
Power, gas and water production and distribution
254,859
4.7%
137,616
3.3%
Extraction of mineral resources
248,340
4.6%
294,986
7.0%
Other types of activity
528,471
9.7%
340,048
8.0%
Including loans to small and medium businesses,
999,801
18.3%
900,126
21.3%
total
including to sole traders
158,849
2.9%
111,232
2.6%
* Loans do not include loans to non-residents, governmental agencies and budget-funded organizations. REPO
transactions, assignment contracts etc.
Sberbank offers loans to enterprises in all major sectors of the economy, with processing
facilities accounting for 24% of its portfolio.
56
57
Instruction No.110-I of the Bank of Russia On Reserve Requirements for Banks dated 16 January 2004
During calculation of this figure, the loan portfolio includes loans to banks, loans receivable from legal entities
and retail clients less assignment contracts; the amount of liabilities of the largest borrowers does not include
banking groups or the Bank's affiliates
20
7.3. Liquidity Risk
Sberbank of Russia's Policy of Liquidity Management and Control is the key document used
to assess, control and manage liquidity risk. This Policy is based on the classification of the
Bank's assets and liabilities given actual repayment terms which may be significantly different
from contractual repayment terms for some instruments and on the assumption that all possible
outflows of funds should be covered by expected proceeds in all time intervals. Therefore,
analysis of liquidity gaps for different periods combined with calculation of liquidity ratios is one
of the primary tools for analyzing the Bank's long-term liquidity profile.
For liquidity risk management purposes, the Bank singles out the risk of liquidity
requirements and the risk of physical liquidity.
The liquidity requirements risk involves possible problems related to the meeting of
liquidity requirements set by the Bank of Russia (N2, N3 and N4). The Bank prepares a weekly
forecast of liquidity requirements and monitors how they are met, taking into account not only
regulatory limitations but also even more stringent internal limits set in the Procedure for
Sberbank of Russia's Compliance with and Calculation of Requirements of the Bank of Russia.
The physical liquidity risk involves problems related to a lack of any currency for the Bank
to cover its liabilities.
Tools for physical liquidity risk management in the short term include a payment flow
forecasting model and control of available liquidity reserves of the Bank; direct REPO
transactions with foreign banks and the Bank of Russia serve as main reserves for managing
operating liquidity.
Medium and long-term liquidity is managed by Sberbank of Russia on the basis of funding
plans developed every quarter. These documents offer historical analysis of the current trends of
development of different balance sheet items and one or several development scenarios for the
near term. Depending on the suggested development scenario, potential liquidity risks are
analyzed and urgent response measures against a variety of negative internal and external shocks
are described. Main tools for medium- and long-term funding include trade finance transactions,
issue of bonds and syndicated loans.
Liquidity in Russian rubles in 2011:
In the second half of 2011, the loan portfolio of both retail clients and legal entities started
growing much more rapidly. The reporting year's growth rate of ruble loans was 1,291 bn rubles
to corporate clients and 478 bn rubles to retail clients. The Bank was actively raising clients' funds
to support this growth rate of loans. As a result, ruble funds from clients added 736 bn rubles,
from corporate clients – 215 bn rubles. As the loan portfolio grew faster than the influx of client
funds the Bank cut its investments in low-yield liquid instruments and raised funds from the Bank
of Russia through direct REPO transactions and loans secured by the surety of other lending
institutions. As of 1 January 2012, funds received from the Bank of Russia amounted to 265 bn
rubles58.
Liquidity in a foreign currency in 2011:
In 2011 Sberbank continued furthering its foreign currency operations. In addition to
traditionally raising funds from retail clients and legal entities (balances grew 3.1 bn US dollars
and 1.8 bn US dollars, respectively), the Bank promoted its trade finance operations and raised
bonded debt and syndicated loans by, in particular, placing bonded debt of 1 bn US dollars for 10
years and obtaining a syndicated loan totaling 1.2 bn US dollars for 3 years in US dollars and
58
This amount does not include the balance of the subordinated loan (300 bn rubles) granted by the Bank of
Russia in late 2008.
21
Euros. Foreign currency funds were primarily allocated for lending to the Bank's corporate
clients.
Throughout 2011, liquidity requirements established by the Bank of Russia were met by the
Bank with a significant reserve:
Compliance with liquidity requirements
Liquidity requirements
Limit established by
the Bank of Russia
Critical value of
Sberbank
N2
N3
N4
More than 15%
More than 50%
Less than 120%
15%
55%
110%
Figure as of the reporting date, %
1 January 2012
1 January
2011
50.82
80.56
72.90
103.01
87.28
78.04
7.4. Market Risk
The Bank singles out the following market risk categories:
The interest risk on balance sheet assets and liabilities sensitive to interest rates – the risk
of a rise/fall in interest income and expenses caused by a yield curve that changes as a
result of a gap in repayment (interest rate revision) dates for funds the Bank has raised
and placed;
 The market risk for positions which includes:




The interest risk for the debt securities portfolio – the risk caused by an adverse
change in market rates;
The stock exchange risk – the risk caused by an adverse change in stock prices;
The currency risk – the risk caused by an adverse change in foreign currency rates
and precious metal prices.
To evaluate its market risk, the Bank applies the following methods:
The interest risk for non-trade positions is assessed through gap analysis by redistributing
assets and liabilities with fixed interest rates based on contractual repayment dates, assets and
liabilities with floating interest rates – based on interest rate revision dates. The gap is calculated
separately for Russian rubles and foreign currencies. This involves appraisal of the impact that a
100 basis point rise or fall of the interest rate has on net earnings.
The market risk for trade positions (the interest risk of the debt securities portfolio, stock
exchange and foreign currency risks) is assessed by the Bank following the VaR method. It helps
to estimate the maximum volume of expected financial losses for a specific period of time at a
preset level of confidence probability. The Bank evaluates VaR by using the historical modeling
method with a 99 % confidence probability in a horizon of 10 days.
As part of daily monitoring of the level of market risks assumed by the Bank on trade
positions, it also analyzes positions exposed to the risk and assesses their vulnerability to changes
in market indicators. Methods include measuring position sensitivity to a 1 basis point change in
rates.
22
Details of the size of the market risk in 2011:
Risk size Risk size(mln rubles) __________ (% of capital)
Type of risk
1 Jan 2012
Interest risk of non-trade
positions
10 272
1 Jan 2011 average for max for the 1 Jan 2012 1 Jan 2011 average for
the period period
the period
4 079
0.7%
0.3%
Market risk on trade positions
28924
46621
26 066
46506
1.9%
3.8%
1.8%
on the debt securities portfolio 26066
40 074
22 009
39 799
1.7%
3.2%
1.5%
stock market risk
9 872
foreign currency risk
1 793
investment diversification effect 8 808
9 439
1910
4 802
9 309
1 782
10 724
2 304
0. 7%
0.1%
0.6%
0.8%
0.2%
0.4%
0.7%
0.1%
The significant drop in the size of risk on trade positions in debt securities in 2011 results
mainly from the VaR calculation method applied by the Bank. The calculation involves data for
only the past 500 trading days so the substantial negative changes in market indicators for Q1
2009 no longer affected the VaR calculation result. Notably, in 2011, the Bank's investments in
debt securities contracted, primarily as a result of Q2 redemption of the Bank of Russia's Series
18 bonds.
The stock exchange and foreign currency risk levels did not change significantly for trade
positions in 2011.
The interest risk on non-trade positions grew in 2011 because of a significant increase in the
gap in rubles and dollars at certain time intervals.
In order to limit the size of market risk, the following limits and restrictions are established
by the Bank's Committee for Assets and Liabilities Management for operations in assets and
liabilities:

Interest risk of non-trade positions: maximum interest rates for raising and placing funds
of legal entities, limitations on the volume of long-term lending (the highest-risk
instrument for placing funds);
 Market risk on trade positions:



Interest risk for the debt securities portfolio: investment limits by issuer type and
currency, limited concentration in an individual issue, limited list of instrument types
that can be invested in, duration limits, loss limits (stop-loss);
Stock market risk: limits on the portfolio size and investments in shares by issuers,
loss limits (stop-loss);
Market risks of transactions in the money and foreign currency market: limits on
open positions by transaction type and currency during and at close of the trading
day, sensitivity limits, limitations of the maximum term of transactions, loss limits
(stop-loss).
7.5. Legal Risk
The Bank has approved and has in place an internal regulation on collaboration between the
Bank's divisions and Legal Department to rule out the risk of non-conformity of the Bank's
internal documents to provisions of new federal laws, laws of constituent entities of the Russian
Federation, other regulations and law-enforcement practice.
To follow the Bank of Russia's recommendations on bank risk assessment and the Basel
Agreement, in 2011 the Bank took measures to build a system for integrated management of risks
(including the legal risk) of the Group of OJSC Sberbank of Russia.
23
As of 1 January 2012 there were claims pending against the Bank and filed by individuals
for 129.4 bn rubles. Following examination of similar claims in 2011, the Bank expects courts to
make an award in favor of the Bank and the Bank will make no payments under them.
7.6. Strategic Risk
Strategic risk means the risk of losses suffered by a lending institution as a result of errors
(deficiencies) made in making decisions that define the strategy of operations and development of
the lending institution (strategic management) and represented by failure to take into account or
inadequate accounting of possible dangers that may threaten operations of the lending institution,
incorrect or inadequately justified definition of prospective areas of activities in which the lending
institution may gain competitive advantage over its rivals, missing or insufficient resources
(financial, material and technical, or human) and organizational measures (management
decisions) intended to procure achievement of strategic operating goals of the lending
institution59.
In October 2008, the Supervisory Board approved the Bank's 2014 Development Strategy.
As the Strategy was prepared during a rapidly evolving situation in financial markets and the
economy overall, there was an important objective to strike a balance of decisions required by
short-term market conditions and long-term objectives pursued by the Bank.
The strategy defines main mechanisms of implementation of this objective that involve
changes to the Bank's internal operating arrangements, enhancement to staff performance,
modifying approaches to client services, boosting employee professionalism and interest in the
outcomes of their effort.
Main elements of the 2014 Sberbank of Russia Development Strategy are published on the
Bank's official website at http://www.sbrf.ru/moscow/ru/about/today/strategy/. The full version of
this document is available at http://www.sbrf.ru/common/img/uploaded/ir/pics/strategy-rus.pdf.
7.7. Operating Risk
The operating risk is managed by the Bank pursuant to recommendations of the Bank of
Russia, defined by the Sberbank of Russia Operating Risk Management Policy, designed to
prevent and/or reduce losses caused by imperfections in internal processes, failures and errors in
the operation of the IT system, personnel actions and the impact of external factors.
When building an integrated risk management system that meets Basel II requirements
international standards and best practices, the Bank continued developing and implementing its
operating risk management methodology.
A decision was made to move the function of maintaining the operating risk database from
the Internal Controls Office to operating risk divisions of territorial banks. In this respect, there
are plans to modify the organizational structure of operating risk divisions at territorial banks and
create the risk manager function for operating risks at the level of Sberbank's branches, including
headquarters.
An open tender was held by the Bank to select the software platform for the operating risk
management system. SAS OpRisk Management, a platform used by leading global financial
institutions, was announced the winner. The Bank started a strategic project for automation of the
operating risk management system and commenced implementation effort.
In order to increase responsibility of divisions on issues of managing the operating risk,
special focus was placed on the institute of risk coordinators – the link on issues of collaboration
59
Letter No.70-T of the Bank of Russia dated 23 June 2004 On Typical Banking Risks
24
between risk divisions and the Bank's divisions in the course of operating risk management. A
manual was developed and risk coordinators were trained at the Central Head Office and all
territorial banks, which helped to improve significantly the quality of operating risk reporting.
The Bank conducts risk audit of the Bank's key processes such as deposit operations,
payment of compensation, issue and maintenance of bank cards. Based on results of risk audits,
new technologies are implemented throughout Sberbank's system to lower operating risk levels:
the client session procedure (reduces the fraud risk coming from outside and the Bank's staff
when client accounts are accessed), role models (differentiate features allowing operations in
automated systems which reduced the risk of unauthorized transactions carried out by one
person), and centralized granting of privileges of access to automated systems.
The Bank's top-priority processes for optimization in 2012 include those exposed to a high
level of operating risk, including cash management for corporate clients, unallocated bullion
accounts, broking services, bank wires, bank card accounts, execution and support of the universal
bank service agreement etc.
As of 1 January 2012, the share of expenses related to realization of an operating risk to
Sberbank's earnings is 1.2% or much lower than in the largest Russian banks. The average figure
based on the profit and loss statement of the ten largest banks by working assets was, on 1 January
2012, 4.2%.
7.8. Risk of Loss of Business Reputation
Reputation risk is estimated by the Bank subject to requirements of the Procedure for
Evaluation of Reputation Risks60. Developed pursuant to recommendations of the Bank of Russia,
this Procedure defines how the risk of loss of business reputation in Sberbank of Russia overall is
assessed.
Several groups of indicators of the Bank's financial condition are used to detect and assess
factors affecting the risk of loss of business reputation. These include comparison against
aggregate indicators for the Russian banking sector, the Bank's compliance with legislative
requirements to financial monitoring, changes in the business reputation of its affiliates,
subsidiaries and related organizations, the Bank's international rating and so on.
Assessment of factors affecting the risk of loss of Sberbank of Russia's business reputation
made as of 1 January 2012 warrants a conclusion that the Bank's reputation risk is at an
acceptable level.
7.9. Information on Operations/Transactions with the Bank's Related Parties
Pursuant to BoR Directive #2089-U, the Explanatory Note discloses operations with related parties that
account for over 5% of the respective balance sheet items. Only transactions with the Bank of Russia, the
prevalent company, met this requirement out of the four groups of Sberbank's related parties to be
disclosed (a prevalent company, subsidiaries, affiliates and key management staff) as of the reporting date.
60
Procedure for Evaluation of Reputation Risks of Sberbank of Russia No. 1485-r dated March 12, 2007.
25
Details of such transactions are given in the table below:
mln rubles
Operations and transactions
Investments in securities
Funds raised
including subordinated loans
Income and expenses
Interest income
Interest expenses
1 January 2012
1 January 2011
565,388
300,000
433,585
-
22,818
27,691
-
Operations with related parties were made by the Bank on conditions similar to conditions of operations
(transactions) with other counterparties.
Related parties61 include legal entities or natural persons that can influence the Bank's operations or whose
operations can be influenced by the Bank.
Pursuant to Sberbank's Accounting Policy, details provided in the Explanatory Note on operations
(transactions) with key management staff include details of operations with natural persons who are
members of the Bank's management and control bodies. Such people include members of the Supervisory
Board, the CEO, the Chairman of the Bank's Management Board, members of the Management Board and
members of the Audit Committee.
7.10.Off-balance-sheet liabilities, fixed-term transactions and reserves created
Off-balance-sheet liabilities
mln rubles
Unused credit lines
Letters of credit
Granted guarantees and sureties
Other instruments
Contingent liabilities of credit nature, total
1 January 2012
Amount of
liabilities
Allowance for
possible losses
1 January 2011
Amount of
Allowance for
liabilities
possible
losseslosses
974,734
157,088
489,850
115,665
1,737,337
10,890
1
8,130
382
19,403
580,755
130,100
159,928
78,320
949,103
22,295
159
2,270
791
25,515
In 2011, growth of the loan portfolio was accompanied by an increase in off-balance-sheet liabilities in the
following items:
•
credit lines provided primarily to legal entities;
•
granted guarantees and sureties, including a surety to the Bank of Russia (the creditor) for
performance of obligation of OAO VTB Bank (debtor) to repay a loan to a sum of no more than 100 bn
rubles
Fixed-term transactions
mln rubles
1 January 2012
Amount of Amount of
claims
liabilities
1 January 2011
Allowance Amount of Amount of Allowance
for possible claims
liabilities
for possible
losseslosses
lossess
Forwards, total, including:
with delivery of the underlying asset
delivery-free
Options, total, including:
with delivery of the underlying asset
delivery-free
Swaps, total, including:
with delivery of the underlying asset
105,288
49,092
56,196
18,146
7,684
10,461
409,410
409,410
907
109
798
143
55
88
5,790
5,790
103, 902
47,098
56,804
17,860
7,667
10,193
413,884
413,884
82,016
9,909
72,107
3,940
9
3,931
203,876
203,876
81,560
9,907
71,653
3,847
9
3,838
203,032
203,032
328
26
302
9
9
360
360
The Bank makes fixed-term transactions mainly to maintain liquidity at a level necessary to conduct
business in different foreign currencies.
Court proceedings
Claims against the Bank are filed with courts during the Bank's activities. Based on its own estimates and
recommendations of in-house professional consultants, the Bank's management believes that these
61 The Accounting Regulation – Details of Related Parties (AR 11/2008) approved by the RF Ministry of Finance on 29 April 2008
26
proceedings will not cause significant losses for the Bank and, naturally, does not create reserves for
possible losses under such proceedings.
8.
Details of Disbursements/Remuneration to Key Management
Staff
Pursuant to Sberbank's Accounting Policy, details provided in the Explanatory Note on operations
(transactions) with key management staff include details of operations with natural persons who are
members of the Bank's management and control bodies. Such natural persons include:
•
members of the Supervisory Board (17 directors as of 1 January 2012);
•
the CEO and Chairman of the Bank's Management Board;
•
members of the Management Board (13 managers as of 1 January 2012);
•
members of the Audit Committee (7 persons as of 1 January 2012).
Remuneration of Members of the Management Board and the CEO and Chairman of the Management
Board
Remuneration and compensation is paid on terms and conditions of contracts entered into with the CEO
and Chairman of the Management Board and members of the Bank's Management Board. Sberbank does
not practice paying members of the Management Board fees or any other property.
In 2011, like in 2010, the Bank did not use the Bank's share option system, had no system for granting
interest-free or unprofitable loans to employees, applied no insurance, credit and deposit or any other
indirect incentive methods.
In order to limit labor costs related to members of the Management Board, the Supervisory Board of
Sberbank of Russia introduced:
•
limits on official basic salaries of the Management Board members;
•
limitations on the amount of bonuses that are paid throughout the year and depend on Sberbank's
net earnings under Russian Accounting Standards, project implementation and achievement of key
performance indicators by the Management Board member;
•
limitations on the amount of annual remuneration as a percentage of Sberbank of Russia's net
earnings.
These limitations are recorded in contracts with Management Board members.
Details of payments made to Management Board members are published on the website in a quarterly
securities report.
The amount of all payments accrued for Management Board members in 2011 less payments for business
trip periods was 1.96 bn rubles, 32% more than in 2010 less payments for business trip periods (1.48 bn
rubles).
The 2011 growth in payments to Management Board members compared to 2010 results from a 78.5%
increase in net earnings, from 174.0 bn rubles to 310.5 bn rubles.
The share of total payments made to members of OJSC Sberbank of Russia's Management Board in the
Bank's net earnings fell from 0.9% to 0.6% as compared to 2010. This is the lowest figure among largest
Russian banks.
Remuneration of members of the Supervisory Board and members of the Audit Committee
It was resolved during the Annual General Meeting of the Bank's shareholders held on 3 June 2011 that
remuneration of members of the Supervisory Board and members of the Audit Committee of OJSC
Sberbank of Russia should be:

trol body of the Bankin 2011, members of the Supervisory Board were paid remuneration totalling
11.9 mln rubles (24 mln rubles in 2010);

in 2011, members of the Audit Committee were paid remuneration for their involvement in 2010
in this con totaling 3 mln rubles (in 2010 – for 2009, in the sum of 1.5 mln rubles).
27
9.
Expected share dividends to be paid and distribution of net
earnings of the Bank for 2011. History of dividend payment and
distribution of net earnings
Money allocated for payment of 2010 dividends under shares of Sberbank of Russia was increased from
10% to 12.1% of net earnings of the Bank, calculated according to Russian Accounting Standards (RAS).
Year for
Share of the Amount of
Amount of
Amount of
Amount of paid** Date of the
which
Bank's net
announced
announced
announced (accrued) dividends
Annual
dividend was earnings
(accrued)
(accrued)
dividends combined combined for all General
paid
under RAS dividends per 1 dividends per 1 for all common and common and
Shareholders’
earmarked for common
preferred
preferred shares,
preferred shares,
Meeting that
payment of share*, rubles share*, rubles thousand rubles
thousand rubles
resolved to
dividends
pay
(announce)
dividends
for 2006
for 2007
for 2008
for 2009
for 2010
10.0%
10.0%
10.0%
10.0%
12.1%
0.3855
0.5100
0.4800
0.0800
0.9200
0.4650
0.6500
0.6300
0.4500
1.1500
8,786,757.3
11,659,269.8
10,991,636.6
2,176,955.8
21,009,992.2
8,786,757.3
11,659,269.8
10,966,205.4
2,169,414.9
20,942,903.3
29.06.2007
27.06.2008
26.06.2009
04.06.2010
03.06.2011
* Amount of dividends per one share in 2006 was re-calculated on the basis of the existing par value of
the Bank's shares at 3 rubles.
** The reason for failure to pay announced dividends – incorrect payment details of shareholders.
In August 2011, the Supervisory Board of Sberbank adopted a new Dividend Policy. According to this
Policy, when pursuing its plans to optimize capital structure and arrange long-term collaboration with its
shareholders, the Bank intends consistently, within a three-year timeframe, to increase dividend payments
to 20% of net earnings earmarked for the Bank's shareholders and based on the Bank's annual consolidated
financial statements prepared under International Financial Reporting Standards (IFRS). However,
dividends will still be paid from the Bank's net earnings calculated under Russian laws, i.e. RAS.
The amount of dividends payable under shares of Sberbank of Russia for 2011 to be recommended for
approval to the General Shareholders’ Meeting following endorsement of the Bank's Management Board
and examination by the Supervisory Board:
Share of the Bank's
net earnings
according to IFRS
15%
Share of Bank's
net earnings per
RAS, earmarked
for payment of
dividends
Amount of
announced (accrued)
dividends per 1
common share*,
rubles
Amount of
announced (accrued)
dividends per 1
preferred share*,
rubles
15.3%
2.08
2.59
Amount of
announced
(accrued)
dividends
combined for
all common and
preferred
shares, thousand
rubles
47,490,581.8
The resolution on the 2011 dividend payment and amount will be made by the Bank's General
Shareholders’ Meeting on 1 June 2012. Relevant information will be published on Sberbank's website
www.sbrf.ru; www,sberbank.ru.
10. Earnings per share
Calculation of diluted and basic earnings per share is based on the method applied by the Bank in audited
international statements (IFRS 33. Earnings per share).62
As of 1 January 2012, Sberbank of Russia has no shares potentially diluting earnings per one common
62
Letter No.129-T of the Bank of Russia dated 26 October 2009 on methodological recommendations On the Procedure of Calculation of Earnings Per Share During Preparation
of Financial Statements by Lending Institutions Pursuant to International Financial Reporting Standards
28
share of the Bank. Respectively, the diluted earnings per share are equal to the basic earnings per share.
The basic earnings per share are calculated by dividing net earnings held by the Bank's shareholders by the
average weighted number of common shares outstanding throughout the year less treasury shares bought
out from shareholders.
Net earnings of Sberbank of Russia owed to shareholders, mln
rubles
Dividends on preferred shares of Sberbank of Russia
announced in the reporting year, mln rubles
Net earnings of Sberbank of Russia owed to shareholders that
hold common shares, mln rubles
Average weighted number of Sberbank of Russia common
shares outstanding throughout the year, mln shares
Basic and diluted earnings per share, rubles per share
2011
310,495
2010
173,979
1, 150
450
309,345
173,529
21,587
21,587
14.33
8.04
11. Branch Network of the Bank
In the territory of the Russian Federation
As of 1 January 2012, the branch network of the Bank within the Russian Federation was made up of
19,249 divisions, including 17 territorial banks, 505 branches and 18,727 internal structural divisions:
unit
Bank's divisions in the RF territory, including
Regional banks
Branch offices
Internal structural divisions total, including:
Additional offices, total, including:
– those specialized in services for retail clients
– universal offices
– those specialized in services for legal entities
Operating offices
Operating cash desks outside a cash node
Mobile cash transaction outlets
1 Jan 2012
1 Jan 2011
19
249
19,420
17
17
505
521
18
727
18,882
10
494
10,069
7
997
7,429
2
373
2,515
124
125
588
236
7
547
8,492
98
85
In 2011, the actual number of Sberbank of Russia's staff increased by 142 people and was 241,037 people
as of 1 January 2012.
In foreign countries
•
The branch in the territory of the Republic of India (New Delhi) (the branch): registered in
the fall of 2010. The branch was established as a strategic springboard to further the Group's business and
is intended primarily to carry out the function of a settlement platform for foreign trade between India and
Russia, India and the CIS countries in which Sberbank is present. The 2014 Development Concept has
been approved for the Bank's Indian branch. The branch has implemented cash management software for
legal entities, settlements in foreign and national currencies, trade finance, money market transactions, and
preparation of mandatory reports. During the Third India-Russia Forum: Business-Dialog, held in October
2011, Sberbank of Russia was given the Best Russian Company in India award;
•
A representative office in Germany (Frankfurt am Main): registered in 2009. The
representative office's 2011-2012 Operating Concept was approved. It defines top-priority objectives such
as creating and maintaining the image of Sberbank in Germany and other EU countries as one of the
largest and most reliable banks, providing assistance to business divisions of the Bank during their
collaboration with German partners;
•
A representative office in China (Beijing): registered in 2010 under local laws. Its main area of
operation involves facilitating cooperation with banking, commercial and governmental entities of the
People's Republic of China in order to promote the business of Sberbank Group and its clients in the
region. Active work was done in 2011 with Chinese financial institutions to expand cooperation in terms of
correspondent relations and trade finance.
29
12. Sberbank of Russia Banking (Consolidated) Group
For 2011, the volume of investments in the charter capitals of subsidiaries and affiliates
grew by 10.2 billion rubles and amounted to 94.0 billion rubles.
In 2011, the banking (consolidated) Group expanded its membership from 116 to 147
companies. In the banking (consolidated) Group, Sberbank has a direct influence on 30
companies and an indirect influence on 114; the Bank has an indirect influence on 3
companies in which it simultaneously has direct interests.
The Bank draws up its consolidated financial statements in accordance with the Accounting
Policy of Sberbank of Russia Banking (Consolidated) Group. As of January 1, 2011, the
consolidated financial statements of Sberbank of Russia Group include the financial
statements of the following companies4163:
Company
1
2
3
4
5
6
7
8
9
10
11
12
13
1
2
3
4
5
6
7
8
9
10
11
Bank's direct interest
Sberbank Leasing Closed Joint-Stock Company
Sberbank Capital Limited Liability Company
Subsidiary Bank Sberbank of Russia Joint-Stock Company
SUBSIDIARY BANK SBERBANK OF RUSSIA PUBLIC JOINT-STOCK COMPANY
Sberbank Mortgage Company Closed Joint-Stock Company
First Investment and Construction Company Closed Joint-Stock Company
Sberbank Investments Limited Liability Company
Grand Baikal Limited Liability Company
Investment and Construction Company Sberbankinveststroy Closed Joint-Stock Company
Sberbank – Automated Trading System Closed Joint-Stock Company
BPS-Sberbank Open Joint-Stock Company
Perspektivnye Investitsii Limited Liability Company (Prospective Investments LLC)
Detsky Mir – Center Open Joint-Stock Company (Children’s World – Center LLC)
Company
Bank’s indirect interest
Krasnaya Polyana Open Joint-Stock Company
Regions-Trade Limited Liability Company
Baikal Ski Resort Gora Sobolinaya Limited Liability Company
Oil Company Dulisma Closed Joint-Stock Company
Crystal Towers Limited Liability Company
Universal Leasing Closed Joint-Stock Company
GOTEK Closed Joint-Stock Company
Taas-Yuryakh Neftegazodobycha Limited Liability Company
GOTEK Group Management Company Closed Joint-Stock Company
Derways Automobile Company Limited Liability Company
Holding Company Central All-Regional Construction Board Center Open Joint-Stock Company
Share of the
Group's control
in the
participant’s
charter capital,
%
100.0000%
100.0000%
99.9977%
100.0000%
100.0000%
100.0000%
100.0000%
50.0000%
100.0000%
100.0000%
97.9055%
100.0000%
25.0338%
Share of the
Group's control
in the
participant’s
charter capital,
%
25.0100%
100.0000%
100.0000%
100.0000%
50.0100%
100.0000%
95.3222%
35.3290%
60.0000%
51.0000%
97.0300%
This explanatory note is part of Sberbank of Russia's RAS annual report for 2011 and does not
include the data of the consolidated statements of Sberbank of Russia Group.
63
The balance-sheet total of the mentioned companies exceeds 1% of the balance-sheet total of Sberbank of Russia.
30
13. Membership the Bank’s Supervisory Board and its Changes in
2011. Information on the shares/interests in the Bank held by the
members of the Supervisory Board
Members of the Supervisory Board Members of
the Supervisory Board elected on June 4, 2010
1
2
3
4
5
6
7
8
9
10
11
12
Ignatiev Sergei Mikhailovich
Luntovsky Georgy Ivanovich
Ulyukaev Aleksei Valentinovich
Belousov Andrei Removich
Dvorkovich Arkady Vladimirovich
Ivanova Nadezhda Yurievna
Kudrin Alexei Leonidovich
Nabiullina Elvira Sakhipzadovna
Savatyugin Alexei Lvovich
Tkachenko Valery Viktorovich
Shor Konstantin Borisovich
Shvetsov Sergei Anatolievich
1
2
3
4
5
6
7
8
Members of the Supervisory Board
Members of the Supervisory Board elected
on June 3, 2011
Ignatiev Sergei Mikhailovich
Luntovsky Georgy Ivanovich
Ulyukaev Aleksei Valentinovich
Ivanova Nadezhda Yurievna
Popova Anna Vladislavovna
Savatyugin Alexei Lvovich
Tkachenko Valery Viktorovich
Shvetsov Sergei Anatolievich
Members of the Supervisory Board Members of
the Supervisory Board elected on June 4, 2010
13
14
15
16
17
Members of the Supervisory Board
Members of the Supervisory Board elected
on June 3, 2011
Gref Herman Oskarovich
9 Gref Herman Oskarovich
Zlatkis Bella Ilyinichna
10 Zlatkis Bella Ilyinichna
Independent/External Directors
Guriev Sergei Maratovich
11 Guriev Sergei Maratovich
Kelimbetov Kairat Nematovich
12 Dmitriev Mikhail Egonovich
Mau Vladimir Aleksandrovich
13 Matovnikov Mikhail Yurievich
14 Mau Vladimir Aleksandrovich
15 Simonyan Rair Rairovich
16 Sinelnicov-Murylev Sergei Germanovich
17 Profumo Alessandro
Information on members of the Supervisory Board as of January 1, 201264:
IGNATIEV SERGEI MIKHAILOVICH
Chairman of the Supervisory Board, Sberbank of Russia OJSC
Chairman, Central Bank of the Russian Federation.
No share in the charter capital/ordinary shares of the Bank.
No transactions with shares in 2011.
LUNTOVSKY GEORGY IVANOVICH
Deputy Chairman of the Supervisory Board, Sberbank of Russia OJSC, Chairman of the HR and
Remuneration Committee
First Deputy Chairman, Central Bank of the Russian Federation.
No share in the charter capital/ordinary shares of the Bank.
No transactions with shares in 2011.
ULYUKAEV ALEXEI VALENTINOVICH
Deputy Chairman of the Supervisory Board, Sberbank of Russia OJSC, Chairman of the Strategic
Planning Committee
First Deputy Chairman, Central Bank of the Russian Federation.
No share in the charter capital/ordinary shares of the Bank.
No transactions with shares in 2011.
GREF HERMAN OSKAROVICH
64
Elected by the Annual General Shareholders’ Meeting of Sberbank of Russia on June 3, 2011
31
Member the Supervisory Board, Sberbank of Russia OJSC, member of the Strategic Planning
Committee
CEO, Chairman of the Management Board, Sberbank of Russia OJSC
Share in the Bank’s charter capital: 0.0031%
Share of the Bank’s ordinary shares held: 0.003%
Date
Transaction
09.02.2011 Acquisition of ordinary and
preferred shares
04.05.2011 Acquisition of ordinary shares
04.08.2011 Acquisition of ordinary shares
09.08.2011 Acquisition of ordinary shares
11.08.2011 Acquisition of ordinary shares
18.08.2011 Acquisition of ordinary shares
19.08.2011 Acquisition of ordinary shares
25.08.2011 Acquisition of ordinary shares
04.10.2011 Acquisition of ordinary shares
Share in the charter
capital before the
change, %
Share of
Share in the
Share of
ordinary
charter capital ordinary shares
shares
after the change, after the change,
before the
%
%
change, %
0.0006
0.0007
0.001
0.0009
0.001
0.0016
0.0021
0.0023
0.0024
0.0025
0.0025
0.0029
0.0009
0.0014
0.0019
0.0021
0.0023
0.0023
0.0024
0.0028
0.0016
0.0021
0.0023
0.0024
0.0025
0.0025
0.0029
0.0031
0.0014
0.0019
0.0021
0.0023
0.0023
0.0024
0.0028
0.003
GURIEV SERGEI MARATOVICH
Independent member of the Supervisory Board, Sberbank of Russia OJSC, member of the HR and
Remuneration Committee
Rector of the Private Educational Institution Russian Economic School.
No share in the charter capital/ordinary shares of the Bank.
No transactions with shares in 2011.
DMITRIEV MIKHAIL EGONOVICH
Independent member the Supervisory Board, Sberbank of Russia OJSC, member of the Strategic
Planning Committee
President, Center for Strategic Research Foundation.
No share in the charter capital/ordinary shares of the Bank.
No transactions with shares in 2011.
ZLATKIS BELLA ILYINICHNA
Member of the Supervisory Board, Sberbank of Russia OJSC
Deputy Chairman of the Management Board, Sberbank of Russia OJSC
Share in the Bank’s charter capital: 0.0004%
Share of the Bank’s ordinary shares held: 0.0005%
Information on the transactions with the Bank’s shares in 2011: no transactions.
IVANOVA NADEZHDA YURIEVNA
Member the Supervisory Board, Sberbank of Russia OJSC, member of the Auditing Committee
Director of the Consolidated Economic Department, Central Bank of the Russian Federation.
No share in the charter capital/ordinary shares of the Bank.
No transactions with the Bank’s shares in 2011.
MATOVNIKOV MIKHAIL YURIEVICH
Independent member the Supervisory Board, Sberbank of Russia OJSC, member of the Strategic
Planning Committee
Chief Executive Officer, Interfax Economic Analysis Center LLC.
No share in the charter capital/ordinary shares of the Bank.
No transactions with shares in 2011.
32
MAU VLADIMIR ALEKSANDROVICH
Independent member of the Supervisory Board, Sberbank of Russia OJSC,
Chairman of the Auditing Committee, member of the HR and Remuneration Committee
Rector of SEI Academy of National Economy under the Russian Government (from 2010,
Russian Presidential Academy of National Economy and Public Administration)
No share in the charter capital/ordinary shares of the Bank.
No transactions with shares in 2011.
POPOVA ANNA VLADISLAVOVNA
Member the Supervisory Board, Sberbank of Russia OJSC, member of the Strategic Planning
Committee
Deputy Head of the Central Office of the Government of the Russian Federation.
No share in the charter capital/ordinary shares of the Bank.
No transactions with the Bank’s shares in 2011.
PROFUMO ALESSANDRO
Member the Supervisory Board, Sberbank of Russia OJSC, member of the Strategic Planning
Committee
Former CEO, UniCredit Financial Group
No share in the charter capital/ordinary shares of the Bank.
No transactions with shares in 2011.
SAVATYUGIN ALEXEI LVOVICH
Member the Supervisory Board, Sberbank of Russia OJSC, member of the Strategic Planning
Committee
Deputy Minister of Finance of the Russian Federation.
No share in the charter capital/ordinary shares of the Bank.
No transactions with shares in 2011.
SIMONYAN RAIR RAIROVICH
Independent member the Supervisory Board, Sberbank of Russia OJSC, member of the Auditing
Committee
Chairman of the Board of Directors / Regional Coordinator, Morgan Stanley Bank LLC.
No share in the charter capital/ordinary shares of the Bank.
No transactions with shares in 2011.
SINELNICOV-MURYLEV SERGEI GERMANOVICH
Independent member of the Supervisory Board, Sberbank of Russia OJSC, member of the HR and
Remuneration Committee
Rector of the Russian Foreign Trade Academy of the Ministry of Economic Development of the
Russian Federation
No share in the charter capital/ordinary shares of the Bank.
No transactions with shares in 2011.
TKACHENKO VALERY VIKTOROVICH
Member the Supervisory Board, Sberbank of Russia OJSC, member of the Auditing Committee
Chief Auditor, Central Bank of the Russian Federation.
No share in the charter capital/ordinary shares of the Bank.
No transactions with shares in 2011.
SHVETSOV SERGEI ANATOLIEVICH
Member of the Supervisory Board, Sberbank of Russia OJSC
Deputy Chairman, Central Bank of the Russian Federation.
No share in the charter capital/ordinary shares of the Bank.
No transactions with shares in 2011.
33
14. Material Information on Valuation Methods and Material
Accounts
14.1.Data Comparability in Disclosure Reporting Forms
The accounting statements as of January 1, 2012 (for 2011) have been drawn up pursuant to
Directive of the Bank of Russia No. 2332-U as amended as of the date of the accounting
statements. Therefore, the data for 2011 are given in the statements for 2011 in a comparable
form.
14.2.Principles and Methods of Valuation and Accounting of Individual
Balance-Sheet Items
Subject to Regulation of the Bank of Russia No. 302-P65, the assets and liabilities are accounted at
their initial cost as of the date of their acquisition or incurrence. The initial cost does not change
until write-off, sale or repurchase thereof, unless otherwise stipulated by the laws of the Russian
Federation and the regulations of the Bank of Russia. In this case:
•
the assets and liabilities in foreign currency (save for the amounts of received and issued
advances and advance payments for the goods, work and services delivered, which are recognized
on the balance-sheet accounts of settlements with nonresident organizations for business
transactions) and precious metals are revaluated as the exchange rate and the metal price change
subject to the regulations of the Bank of Russia;
•
the assets, claims and liabilities, the specific value (cost) of which is determined using nondetachable embedded derivatives (NDED) are revaluated (recalculated) on a daily basis with
recognition of the resulting differences for the respective income/expenditure items from the date
of the transfer of ownership of the asset delivered (the date of work acceptance or service
provision) to the actual payment date;
•
the cost of fixed assets changes in the event of further construction, additional equipment,
modernization, reconstruction, revaluation or partial liquidation of the respective assets in
accordance with the regulatory documents of the Bank of Russia. In particular, as per Regulation
of the Bank of Russia No. 302-P, the bank revaluates the group of homogeneous items of fixed
assets at the current (replacement) cost.
Moreover, fixed assets are regularly revaluated, so that the cost under which they appear in the
accounting records and financial statements would not differ materially from the current
(replacement) cost. Increased property cost resulting from the revaluation is a source of Level 2
internal resources (equity). Pursuant to Regulation of the Bank of Russia No. 215-P, property
revaluation may be included in the calculation of capital not more than once every 3 years based
on the accounting statements confirmed by the auditor;
• securities are accounted according to the actual costs for their acquisition. The actual
acquisition costs for the interest bearing (coupon) securities include, besides the cost of the
security at the acquisition price determined under the contract (deal), the interest (coupon) income
paid upon its acquisition.
After the initial recognition, the cost of debt obligations changes subject to interest incomes
charged and received from the date of the initial recognition of the debt obligations. Interest
(coupon) income is charged and reflected in the accounting records on a daily basis. Securities are
reflected on the respective balance-sheet accounts of security investments, depending on the
purpose of their acquisition.
The securities “at fair value through profit or loss” and the securities “available for sale” are
subject to daily revaluation at the current (fair) value of securities.
65
Regulation of the Bank of Russia No. 302-P "On the rules of accounting by credit organizations located within the
Russian Federation" dated March 26, 2007
34
14.3.List of Material Changes in the Accounting Policy
Affecting the Comparability of the Bank’s Individual Indicators
The changes made to the Accounting Policy for 2011 cover the following aspects:
• creation of a provision for the staff retirement plan under the Corporate Retirement Program;
• inclusion of the value added tax paid upon the property acquisition in the cost of the property,
acquired as a result of transactions under compensation and pledge contracts and accepted for
accounting and further sale, and the property acquired for charity purposes and posted on balance
account 61008 “Materials” (regardless of the cost). If it is decided to use the property acquired as
a result of transactions under compensation and pledge contracts in own activities (including for
lease purposes), the value added tax will be recognized on balance account 60310.
• the materiality criteria for the purpose of acknowledging erroneous entries;
• the cost limit for items to be allocated to fixed assets is established in the amount of 40,000
rubles inclusive.
The above changes did not materially affect the Bank's individual indicators.
14.4.Brief Information on Balance-Sheet Items Inventory
In order to draw up its annual report, the Bank carried out an inventory as of November 1 or
December 1, 2011, of its fixed assets, intangible assets, inventories, settlements for claims and
liabilities with respect to bank transactions and deals, for the claims and liabilities in respect of
term transactions, settlements with debtors and creditors. Based on the inventory, measures were
taken to eliminate the identified discrepancies between actual availability and accounting data.
As of January 1, 2012, cash and valuables were audited in all the Bank’s cash departments. The
audit resulted in no surplus or shortages revealed.
14.5.Information on Receivables and Payables
In order to reflect fully the results of the Bank’s activities in its balance sheet as of the end of the
reporting period, measures were taken to settle the obligations and claims for term transactions
recorded on the accounts of Chapter "D" [Г] of the Working Plan of Accounts by the Bank’s
subsidiaries, as well as receivables and payables posted on accounts No. 603 “Settlements with
Debtors and Creditors” and No. 474 “Settlements for Individual Transactions”.
The accounts receivable from, and the accounts payable to, the suppliers, contractors, buyers and
counterparties were reconciled and bilateral reconciliation statements were sent to them.
To exclude recognition of actually commissioned fixed asset items on account No. 607
“Investments in Construction (Building), Creation (Production) and Acquisition of Fixed Assets
and Intangible Assets”, the Bank analyzed the capital investments and revealed no incorrect
recognition of costs.
The required measures were taken to settle and minimize the amounts on the accounts until
clarification.
The balance on account No. 47416 “Amounts Entered to Correspondent Accounts until
Clarification” as of January 1, 2012 in the amount of 3.0 billion rubles, accrued as a result of
posting amounts, which were not allocated to the recipients’ accounts due to unavailability of
settlement documents, as well as misrepresentation or misstatement of details, to correspondent
accounts and intra-subsidiary settlement accounts. The balance in rubles accrued in the period
from December 23 to December 31, 2011, and that in foreign currency accrued in the period from
December 1 to December 31, 2011.
14.6.Information on Adjusting Events after the Reporting Date
The Bank draws up its annual report subject to events after the reporting date (“EARD”) which
occurs between the reporting date and the date of signing the annual report and affect or might
35
affect the Bank's financial standing.
Adjusting EARD are recognized in the accounting records. Adjusting EARD are events
confirming the existence as of the reporting date of the conditions in which the Bank has operated.
The total volume and composition of EARD for 2011 are reflected in the consolidated turnover
statement in the form of Appendix 14 to Regulation of the Bank of Russia No. 302-P. According
to Directive of the Bank of Russia No. 2089-U and the Bank’s Accounting Policy, the accounting
records contain, in particular, the following adjusting EARD:
•
carryover of the balances from the profit and loss accounts of the accounting year to the
profit and loss accounts of the previous year, namely:
7,379,506.6 million rubles from the profit accounts;
7,057,615.5 million rubles from the expense accounts;
•
adjustments for taxes and duties payable by the Bank in the amount of 1,037.9 million
rubles (increase by 1,064.9 million rubles, decrease by 27.0 million rubles);
•
adjustment of loss provisions (including for contingent credit-related liabilities) created as
of the reporting date, subject to information on the conditions prevailing as of the reporting date
received when drawing up the annual report, in the amount of 1,049.2 million rubles (increase by
1,067.8 million rubles, decrease by 18.6 million rubles);
• receipt after the reporting date of source documents confirming the transactions performed
before the reporting date and/or determining (specifying) the cost of the work, services and assets
for such transactions and specifying the income and expenditure reflected in the accounting
records for the amount of 3,700.5 million rubles (increase in profit by 1,520.0 million rubles,
increase in expenditure by 5,220.5 million rubles);
• depreciation of fixed asset items chargeable to expenditure in the amount of 5,878.4 million
rubles;
• appreciation of fixed asset items chargeable to income in the amount of 269.8 million rubles;
• depreciation (reduction) of the cost of fixed asset items upon revaluation as of January 1, 2012
in the amount of 2,803.1 million rubles;
• reduction of the accumulated amortization upon depreciation of fixed asset items as a result of
their revaluation in the amount of 277.0 million rubles.
14.7.Non-Adjusting Events after the Reporting Date
On January 23, 2012, Sberbank of Russia and Troika Dialog announced the closure of a merger
deal (the Agreement of Intent for the Merger of Sberbank of Russian and Troika Dialog was
signed on March 11, 2011). As of January 1, 2012, Troika Dialog is not a member of Sberbank
Group for RAS.
On February 15, 2012, Sberbank of Russia closed a deal for the purchase of 100% of shares of
Volksbank International AG (VBI) – East European division of the Austrian banking group
Oesterreichische Volksbanken AG. The deal will allow Sberbank additionally to enter the markets
of Austria, the Czech Republic, Hungary, Croatia, Serbia, Slovenia and Bosnia-Herzegovina.
14.8.Information on Failures to Comply with Accounting Rules
The Bank's branches and headquarters confirm the compliance of the bank transactions
recognized on the accounts with the account characteristics provided in Regulation of the Bank of
Russia No. 302-P.
No non-compliance with the accounting rules was revealed.
14.9.Changes in the Bank’s Accounting Policy for 2012
For accounting purposes, the following main amendments were made to the Accounting Policy
for 2012.
From January 1, 2012, the Bank’s headquarters and branches classify property into fixed assets,
36
immovable property temporarily unused in the core activities, intangible assets and inventories in
accordance with the regulatory documents of the Bank of Russia and the Bank’s Accounting
Policy.
The value of the immovable property temporarily unused in the core activities is determined: after
its first recognition, such immovable property is valuated at its current (fair) cost.
The items of the immovable property temporarily unused in the core activities are revaluated at
the current (fair) value on a quarterly basis.
If it appears impossible to determine the current (fair) value of an item, that is for the first time
classified as property temporarily unused in the core activities, after changing the way it is used,
the Bank’s headquarters and branches value this item at its initial value net of the accumulated
amortization and accumulated impairment losses. Such items are checked for impairment once a
year.
Further, such an item will be recognized at its initial cost net of the accumulated amortization and
accumulated impairment losses up to its disposal or transfer from the property temporarily unused
in the core activities.
The criteria for recognizing the immovable property temporarily unused in the core activities have
been defined.
Immovable property temporarily unused in the core activities is the property (part of the property)
(land or building, or part of the building or both) owned by the Bank (obtained in the course of its
charter activities) and intended for receiving rent payments (save for the payments under financial
lease contracts), revenues from the increase in the cost of such property or both, but not for using
as labor instruments for the provision of services, management of a credit organization, as well in
cases stipulated by sanitary and hygienic, technical and operating, and other special technical
standards and requirements, which is not planned to be sold within one year from the date of
being classified as the property temporarily unused in the core activities.
The immovable property temporarily unused in the core activities includes:
•
land plots the purpose of which is not defined;
•
land plots provided for temporary possession and use or for temporary use under one or more
lease contracts, save for financial lease;
•
a building (part of a building) provided for temporary possession and use or for temporary
use under one or more lease contracts, save for financial lease;
•
a building (part of a building) provided for temporary possession and use or for temporary
use under one or more lease contracts, save for financial lease;
•
facilities under construction (building) or reconstruction, intended to be provided for
temporary possession and use or for temporary use under one or more lease contracts, save for
financial lease.
Where part of an immovable property item is used to receive rent payments (save for the
payments under financial lease contracts) or to increase the cost of the property, and the other part
is used as labour instruments for the provision of services, management of a credit organization,
as well as in cases provided for by the sanitary and hygienic, technical and operating, and other
special technical standards and requirements, the Bank's headquarters and branches account for
the said parts of the item separately (immovable property temporarily unused in the core activities
and fixed asset, respectively) only to the extent such parts of the item can be sold separately. To
determine the possibility of selling parts of an immovable property item separately, a professional
judgment is applied on a case-by-case basis.
If parts of an immovable property item cannot be sold separately, the said item is considered
immovable property temporarily unused in core activities only if a maximum of 5% of the total
area of the item intended for using as labor instruments for the provision of services, management
of a credit organization, as well as in cases provided for by the sanitary and hygienic, technical
and operating, and other special technical standards and requirements.
Items are accounted as property temporarily unused in core activities only if all of the following
conditions established by the Bank of Russia are met:
•
an item is capable of bringing economic benefits to the Bank in future;
•
the cost of an item can be reliably determined.
37
An item may be transferred to or removed from the immovable property temporarily unused in
core activities only if the way it is used is changed.
If it is decided to sell an item of immovable property temporarily unused in core activities, it is
transferred to non-current inventories.
If items of fixed assets as well as non-current inventories are transferred to immovable property
temporarily unused in core activities, the Bank's headquarters and branches revaluate the items
transferred at the current (fair) value as of the item transfer date.
If an item of immovable property temporarily unused in core activities is transferred to fixed
assets and non-current inventories, its current (fair) value as of the transfer date is taken as the
initial cost of such item for the purposes of further accounting.
From January 1, 2012, items of over 40,000 rubles per unit are accounted as part of the fixed
assets.
Monthly depreciation is charged on property temporarily unused in core activities, which is
accounted at its initial cost net of the accumulated amortization and accumulated impairment
losses, at the rates calculated based on the useful life as set forth by Decree of the Russian
Government No. 1 “On classification of fixed assets included in depreciation groups” dated
January 1, 2002, subject to the provisions of the Accounting Policy for Tax Purposes of Sberbank
of Russia as it pertains to defining the useful life of the depreciated property.
The cost of securities acquired under the contracts being derivative financial instruments (“DFI”)
is determined. The value of such securities to be accounted is determined subject to the DFI cost.
From January 2012, the current (fair) value of securities is determined by methods set forth in
Methodology for Determining the Current Fair Value of Financial Instruments No. 2360 dated
December 27, 2011.
The specific features of DFI accounting are determined, involving the following. A derivative
financial instrument is initially recognized in the accounting records upon signature of the
contract being a derivative financial instrument.
From the date of the initial recognition, derivative financial instruments are valued at fair value.
The derivative financial instruments are revalued daily at fair value regardless of whether the
market is active or not. The methods for evaluating the fair value of DFI are set out in
Methodology for determining the Current Fair Value of Financial Instruments No. 2369 dated
December 12, 2011.
For accounting purposes, DFIs are contracts, save for a REPO contract, providing for one or more
of the following obligations:
•
an obligation of the parties or a party to the contract to pay monies, whether on a regular
or nonrecurring basis, including in the event of any claims raised by the other party, depending on
the change of prices for goods and securities, the exchange rate of the respective currency, the
amount of interest rates, the level of inflation, the values calculated based on the prices for
derivative financial instruments, the values of indicators constituting official statistical
information, the values of physical, biological and/or chemical environment indicators, the
occurrence of a circumstance evidencing a failure to perform or improper performance by one or
more legal entities, governments or municipal units of their obligations (save for a surety contract
and an insurance contract), or any other circumstance provided for by federal law or regulations
of a federal executive authority for the securities market, and in respect of which it is unknown
whether it will or will not occur, as well as on the change of values calculated based on one or
several of the indicators mentioned in this clause. Moreover, such contract may also provide for
an obligation for a party or parties thereto to transfer securities, goods or currency to the other
party, or an obligation to enter into a contract being a derivative financial instrument;
•
an obligation of a party or parties on the terms determined upon signature of the contract and
as required by the other party to buy or sell securities, currency or goods or to sign a contract
being a derivative financial instrument;
•
an obligation of one party to transfer ownership of securities, currency or goods to the other
party not earlier than the third day after the date of the contract, an obligation of the other party to
accept and pay for the said property and the note that such contract is a derivative financial
38
instrument. In this case, supply contracts, under which the basic asset is securities, currency or
goods, made on an over-the-counter market are DFIs to the extent it is agreed upon by the parties
to the contract in the Agreement or upon concluding a transaction, and is specified in the
Agreement and/or the transaction documents. Failing this, such contracts are not DFIs and are not
accounted as DFIs but recognized as forward transactions for sale and purchase of the respective
asset.
Also, for accounting purposes, DFIs include:
•
contracts which are DFIs under the law of a foreign country, the regulations of an
international treaty or business practice, and in respect of which the law of a foreign country or
the regulations of an international treaty provide for the judicial defense thereof;
•
contracts which are DFIs in accordance with the trade organizer’s specification;
•
contracts which are DFIs under a broker agreement;
•
contracts made under ISDA.
A list of costs has been determined which are additional costs directly related to the execution of a
contract not being a DFI or to disposal of a DFI.
For the purpose of DFI valuation, an active market is a market characterized by the following
signs:
•
operations are performed through a trade organizer;
•
information on current prices is publishable and publicly available.
Otherwise, the market is considered inactive.
The fair value of DFI is calculated based on the data disclosed by such information agencies as
Bloomberg, Thomson Reuters, Russian or foreign organizers of trade as of the DFI revaluation
date.
In addition, to determine the estimated value of individual types of DFI, the Bank may call upon
an independent appraiser. The data received from the appraiser are used as input parameters for
daily determination of the fair value of DFI.
During 2011 and within the period of drawing up the annual report of which this explanatory note
is part, there were no other events required to be disclosed in the explanatory note under the laws
of the Russian Federation.
President,
Chairman of the Management Board, Sberbank of Russia OJSC
Chief Accountant, Sberbank of Russia
Director of the Accounting and Reporting Department,
Sberbank of Russia OJSC
/Signature/
/Signature/
H. Gref
A.V. Kruzhalov
/Seal/: SBERBANK * Sberbank of Russia Joint-Stock Company * Moscow
39
Evaluation of the Auditor’s Report Prepared
by the Bank’s Auditing Committee
40
On evaluation of the auditor’s report on the annual report for the year ended December 31, 2011
(drawn up in accordance with Directive of the Bank of Russia No. 2089-U dated October 8, 2008
“On the procedure for drawing up of annual statements by credit organizations”
Having reviewed the auditor’s report provided by the independent auditor ZAO Ernst & Young
Vneshaudit for the annual report for the year ended December 31, 2011, the Auditing Committee
of the Supervisory Board of Sberbank of Russia OJSC resolved to:
1. Note that:
■ the audit was carried out in compliance with Federal Auditing Standards and International
Audit standards;
■ the audit report is drawn up in conformity to Federal Auditing Standard (FAS) 1/2011
“Auditor’s report on accounting (financial) statements and formation of the opinion on their
accuracy” approved by Order of the Ministry of Finance of the Russian Federation No. 46n dated
May 20, 2010;
■ the audit report contains an unqualified opinion on the accuracy of the financial position of
Sberbank of Russia OJSC in all material respects as of January 1, 2012 and the results of its
financial and economic activities for the period from January 1, 2011 to December 31, 2011
inclusive, subject to the laws of the Russian Federation applicable to credit organizations as it
pertains to the preparation of annual reports.
2.
Recommend the Supervisory Board of Sberbank of Russia OJSC to submit the annual
report for the year ended December 31, 2011 (drawn up in accordance with Directive of the Bank
of Russia No. 2089-U dated October 8, 2008 “On the procedure for drawing up annual statements
by credit organizations”) for approval by the Annual General Shareholders’ Meeting.
3.
Propose to the Supervisory Board of Sberbank of Russia OJSC to include this resolution of
the Auditing Committee of the Supervisory Board of Sberbank of Russia OJSC in the information
(materials) provided for review to the persons entitled to participate in the Annual General
Shareholders’ Meeting to be held on June 1, 2012 as an evaluation of the auditor’s report on the
annual report for the year ended December 31, 2011.
Chairman of the CommitteeV.A. Mau
41
Opinion of the Bank’s Audit Commission on
the Results of its Financial and Economic
Activities for 2011
42
To:
Shareholders,
Supervisory Board,
Management Board of Sberbank of Russia OJSC
OPINION
of the Audit Commission on the Results of Audit of Sberbank of Russia’s Financial and
Economic Activities for 2011
The Audit Commission audited individual activity areas of Sberbank of Russia (hereinafter the
“Bank”) and considered the results of its financial and economic activities for 2011 presented in
the Bank’s annual report.
The Bank's annual report for 2011 is drawn up subject to the requirements of the Bank of Russia
and the laws of the Russian Federation on securities, and is characterized by the following
indicators. The Bank’s assets for the accounting year grew by 1, 896 billion rubles and amounted
to 10,419 billion rubles as of January 1, 2012.
The Bank’s capital grew by 22.1% for the year and as of January 1, 2012 it amounted to 1,516
billion rubles. The Bank’s capital growth in 2011 was attributed to net profit. The actual value of
the Bank’s equity (capital) adequacy ratio (Н1[N1]) was 15.0% with the minimum admissible
value of 10.0%.
The Bank’s financial and economic activities for 2011 were audited in accordance with the work
plan of the Audit Commission; in particular, the following issues were considered:
 audit of the correctness of generation and disposition of profits;
 audit of the loan debts, including overdue loan debts;
 audit of accounts receivable;
 audit of investments in affiliates and subsidiaries;
 audit of transactions with securities of third party issuers;
 audit of the work for forming the budget of capital investments, acquisition of fixed assets
and performing an inventory of fixed assets.
The audit was held selectively based on the internal documents provided by the Bank which
regulate the activities for the said issues, as well as the source documents and accounting
registers.
The processes of the Bank’s risk management and the organization of the internal control were
analyzed.
In 2011, in the audited areas of activities, the Bank operated in accordance with the laws,
regulatory documents of the Bank of Russia and the Bank's regulations.
The created risk management and internal control system is adequate to the scale and character of
the operations carried out by the Bank.
When carrying out the audit within the scope of its functions and powers, the Audit Commission
did not reveal any material violations, errors or faults in the Bank's activities which might pose a
threat to the interests of the shareholders, creditors and depositors.
The Audit Commission believes that the results of the Bank's financial and economic activities for
2011, reflected in the Bank's annual report, may be accepted by the General Shareholders’
Meeting for consideration and approval.
The results of the audit conducted by the Audit Commission are brought to the notice of the
Chairman of the Supervisory Board of Sberbank of Russia OJSC – the Chairman of the Bank of
Russia, S.M. Ignatiev, the Auditing Committee of the Supervisory Board, and the Management
Board of the Bank.
Chairman of the Audit Commission –
Director of the Internal Audit Department,
Bank of Russia
O.V. Polyakova /Signature/
43
Members of the Audit Commission:
Deputy Director – Head of the Accounting and Reporting Department, Bank of Russia
V.M. Volkov /Signature/
Deputy Chief Accountant, Sberbank of Russia – Deputy Director of the Accounting and
Reporting Department
A.E. Minenko /Signature/
Deputy Director of the Internal Control, Revisions and Audit Department, Sberbank of Russia
OJSC
M.L. Dolzhnikov /Signature/
Head of the Finance Control Unit, Sberbank of Russia
Y.Y. Isakhanova /Signature/
L.A. Zinina /Signature/
44
Recommendations
of the Bank’s Supervisory Board
on Distribution of Profits and Amount
of Dividends Paid for the Bank’s Shares
for 2011
45
Recommendations of the Bank’s Supervisory Board on Distribution of Profits and Amount of
Dividends Paid for the Bank’s Shares for 2011
Recommend that the Annual General Shareholders’ Meeting:
1.
Approve distribution of profits of Sberbank of Russia OJSC
Distribution of Profits of Sberbank of Russia for 2011
(subject to the events after the reporting date)
Amount (rubles)
Net profit after tax
310,494,910,863.88
Distribution of profits after tax:
Funds for payment of dividends
47,490,851,840.00
Undistributed profits
263,004,059,023.88
2.
Pay dividends for the ordinary shares of Sberbank of Russia OJSC par value 2.08 rubles per
one share, and for the preferred shares par value 2.59 rubles per one share.
46
Information on Candidates
to the Supervisory Board
47
1. Gref Herman Oskarovich
2. Guriev Sergei Maratovich
3. Danilov-Danilyan Anton Viktorovich
4. Dmitriev Mikhail Egonovich
5. Zlatkis Bella Ilyinichna
6. Ivanova Nadezhda Yurievna
7. Ignatiev Sergei Mikhailovich
8. Luntovsky Georgy Ivanovich
9. Matovnikov Mikhail Yurievich
10. Mau Vladimir Aleksandrovich
11. Profumo Alessandro
12. Savatyugin Alexei Lvovich
13. Simonyan Rair Rairovich
14. Sinelnicov-Murylev Sergei
Germanovich
15. Tkachenko Valery Viktorovich
16. Tulin Dmitry Vladislavovich
17. Ulyukaev Aleksei Valentinovich
18. Freeman Ronald
19. Shvetsov Sergei Anatolievich
CEO, Chairman of the Management Board, Sberbank
of Russia OJSC
Rector of the Russian Economic School
Chairman of the Committee for Interaction with
Minority Shareholders of Sberbank of Russia OJSC
President, Center for Strategic Research Foundation
Deputy Chairman of the Management Board,
Sberbank of Russia OJSC
Director of the Consolidated Economic Department,
Central Bank of the Russian Federation.
Chairman, Central Bank of the Russian Federation
First Deputy Chairman, Central Bank of the Russian
Federation
CEO, Interfax-EAC
Rector of the Russian Academy of National Economy
and Civil Service under the Government of the
Russian Federation
Former CEO of UniCredit Group
Deputy Minister of Finance of the Russian Federation
Chairman of the Board of Directors, Morgan Stanly
Bank LLC
Rector of the Russian Foreign Trade Academy of the
Ministry of Economic Development of the Russian
Federation
Chief Auditor, Central Bank of the Russian
Federation
PhD in Economics
First Deputy Chairman, Central Bank of the Russian
Federation
Member of the Board of Directors, Investment
Company Troika Dialog COJSC
Deputy Chairman, Central Bank of the Russian
Federation
Written consents of the candidates for election to the Supervisory Board of Sberbank of Russia
are available.
48
Information on Candidates
to the Audit Commission
49
Information on the Candidates to the Audit Commission
1. Borodina Natalia Petrovna
2. Volkov Vladimir Mikhailovich
3. Dolzhnikov Maxim Leonidovich
4. Isakhanova Yulia Yurievna
5. Kremleva Irina Vladimirovna
6. Minenko Aleksei Yevgenievich
7. Polyakova Olga Vasilievna
Head of Audit Division for Credit Organizations of
Internal Audit Department, Central Bank of the Russian
Federation
Deputy Director – Head of Accounting and Reporting
Department, Central Bank of Russia – Head of the
Department for Accounting Principles, and Development
and Support of the Procedural Basis for Financial
Reporting pursuant to International Standards
Deputy Director of Internal Control, Revisions and Audit
Department, Sberbank of Russia OJSC
Head of Finance Control Unit of Finance Department,
Sberbank of Russia OJSC
Deputy Director of Risk Department, Sberbank of Russia
OJSC
Deputy Chief Accountant – Deputy Director of
Accounting and Reporting Department, Sberbank of
Russia OJSC
Director of Internal Audit Department, Central Bank of
the Russian Federation
Written consents of the candidates for election to the Supervisory Board of Sberbank of Russia
are available.
50
New Version of the Bank's Charter
Draft Resolutions of the Meeting
51
Draft Resolutions of the Meeting
52
Resolution on Item No. 1:
Approve the annual report for 2011.
Resolution on Item No. 2:
Approve the annual report for 2011, including: the accounting balance-sheet and the profit and
loss statement (disclosure forms).
Resolution on Item No. 3:
1. Approve distribution of profits for 2011.
2. Pay dividends for the ordinary shares par value 2.08 rubles per one share, and for the preferred
shares par value 2.59 rubles per one share.
Resolution on Item No. 4:
Approve the auditing organization ZAO Ernst & Young Vneshaudit as the auditor for 2012 and
the 1st quarter of 2013.
Resolution on Item No. 5
Elect the following members to the Supervisory Board: ....
Resolution on Item No. 6:
Elect the following members to the Audit Commission: ....
Resolution on Item No. 7:
1. Pay remuneration to the members of the Supervisory Board of Sberbank of Russia OJSC,
except Alessandro Profumo, subject to their consent in accordance with the laws of the Russian
Federation in the following amount: - 4.5 million rubles to each of the members of the
Supervisory Board acting as the Chairmen of the Supervisory Board; - 4.2 million rubles to each
of the members of the Supervisory Board being the members of the Supervisory Board’s
committees; - 3.8 million rubles to each of the members of the Supervisory Board not being the
members of the Supervisory Board’s committees.
2. Pay remuneration to member of the Supervisory Board of Sberbank of Russia OJSC,
Alessandro Profumo, in the amount of EUR 431,497.12 and reimburse him for the expenses
related to his performing the duties of a member of the Supervisory Board of Sberbank of Russia
OJSC in the amount of up to USD 19,657.14.
3. Pay remuneration to the Chairman of the Audit Commission of Sberbank of Russia OJSC in
the amount of 1.0 million rubles, and to the members of the Audit Commission in the amount of
750,000 rubles, subject to their consent in accordance with the laws of the Russian Federation.
Resolution on Item No. 8:
Approve the new version of the Bank’s charter. Commit the CEO and the Chairman of the Bank's
Management Board to sign the documents required for the state registration of the new version of
the Bank's Charter.
53