Sberbank - Annual Report 2010 - Profile and Performance Indicators for 2011

Home Social Responsibility Report Profile and Performance Indicators for 2011

# Profile and Performance Indicators for 2010

Sberbank is one of the largest financial institutions in Central and Eastern Europe and the largest bank in Russia and the CIS. Sberbank’s founder and largest shareholder is the Central Bank of the Russian Federation (the Bank of Russia). As at the most recent record date, the Bank of Russia held 60.3% of voting shares and owned 57.6% of Sberbank’s authorised capital. The remaining shares in Sberbank are held by over 263,000 legal entities and individuals. Foreign investors collectively hold more than 32.1% of shares in the Bank. According to The Banker magazine, in 2010 Sberbank was ranked the world’s 43rd largest bank in terms of Tier 1 capital.

#### Share ownership structure as of the most recent record date by shareholder category

Shareholder category | % of authorised capital
--- | ---
Bank of Russia | 57.58
Foreign legal entities | 32.12
Domestic private investors | 6.08
Domestic legal entities | 4.21
Foreign private investors | 0.01

Sberbank is the largest Russian bank by asset size. As of the end of 2010, the Bank’s assets totalled over RUB 8.628 trillion. This accounts for more than one quarter of the total banking assets in Russia (27%). According to The Bankers' Almanac, Sberbank is the 98th largest bank in the world in terms of the size of its assets.

#### Financial performance indicators for 2010*, RUB million

| 2008 | 2009 | 2010
--- | --- | --- | ---
4 Community investments refer to voluntary donations and funds invested in the broader community where the target beneficiaries are external to the Bank. These include contributions to charities, NGOs and research institutes (unrelated to the company’s commercial research and development activities), funds to support community infrastructure (such as recreational facilities) and direct costs for social programmes (including arts and educational events).
Operating revenues | 351,660 | 259,141 | 512,754
Comprehensive income | 124,624 | 38,932 | 206,564
Net income | 97,746 | 24,396 | 181,648
Operating expenses | 221,739 | 229,277 | 282,619
Employee wages and benefits | 151,827 | 148,650 | 182,938
Income attributable to shareholders | 97,746 | 24,396 | 182,131
Interest expenses on subordinated debt | 6,403 | 41,289 | 28,219
Payments to the government (tax payments) | 38,076 | 15,750 | 61,073
Community investments4 | 775 | 1,496 | 1,888

We offer a broad range of financial products and services to retail and corporate customers. The Bank manages over 340 million retail accounts for Russia’s population of 142.9 million people. Our corporate clients include over 1.2 million companies from a wide variety of economic sectors.

#### Sberbank's share in different segments of the financial services market**,%

#### Breakdown of loan portfolio by customer segment*, RUB billion

#### Breakdown of corporate loan portfolio by customer type**, %

#### Retail loans*, RUB billion

#### Breakdown of corporate loan portfolio by sector*, %

Sberbank has a well-developed network of branches, which includes 17 regional banks5 and over 19,000 outlets in all Russia’s regions.

The Bank’s strategy for the development of its international operations allows for different approaches in different regions. Our subsidiary banks operate in Kazakhstan, Ukraine and Belarus. Countries in the Commonwealth of Independent States (CIS) are the main priority in terms of the expansion of our operations in the medium term. However, in 2010 we opened a branch in India to gain a foothold in the local market. We also opened a representative office in Germany in 2009.

#### Sberbank’s international presence as of January 1, 2011

Republic of Belarus | Subsidiary bank
Germany | Representative office
India | Branch
Kazakhstan | Subsidiary bank
Ukraine | Subsidiary bank

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The Bank is managed by the Central Head Office, which is based in Moscow. We have a number of senior managers who are responsible for different aspects of corporate social responsibility. Virtually every aspect of our activities has at least some external effect and as such must be considered within the context of corporate social responsibility.

#### Members of the Management Board as of 31 December, 2010

Herman Gref | CEO and Chairman of the Management Board
Sergei Gorkov | Deputy Chairman of the Board
Andrei Donskih | Deputy Chairman of the Board
Bella Zlatkis | Deputy Chairman of the Board
Anton Karamzin | Deputy Chairman of the Board
Evgeny Korolev | Deputy Chairman of the Board
Stanislav Kuznetsov | Deputy Chairman of the Board
Alexander Torbakhov | Deputy Chairman of the Board
Denis Bugrov | Senior Vice President
Olga Kanovich | Senior Vice President
Victor Orlovsky | Senior Vice President
Alexander Bazarov | Vice President, Director of the Corporate Clients Department
Andrei Golikov | Vice President, Director of the Treasure and Financial Markets Department
Alexander Morozov | Vice President, Director of the Finance Department

#### Annual average number of employees

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Sberbank is one of the largest employers in Russia. At the end of 2010, we employed 240,895 people, or some 0.2% of the Russian population. Our HR policy aims to build and enhance our human capital in line with our business model, while also creating a highly effective, professional and motivated team of employees at each division and branch of the Bank. The average staff turnover rate in 2010 across the bank was 7.5%. The rate of attrition was 18.0%.

#### Headcount as of December 31, 2010

Central Head Office | 8,681
Altaisky Regional Bank | 5,567
Baikalsky Regional Bank | 6,616
Dalnevostochny Regional Bank | 8,089
Moskovsky Regional Bank | 17,655
Povolzhsky Regional Bank | 24,905
Severny Regional Bank | 8,859
Severo-Kavkazsky Regional Bank | 8,162
Severo-Vostochny Regional Bank | 3,558
Severo-Zapadny Regional Bank | 19,122
Sibirsky Regional Bank | 9,587
Srednerussky Regional Bank | 20,209
Tsentralno-Chernozemny Regional Bank | 16,055
Uralsky Regional Bank | 21,701
Volgo-Vyatsky Regional Bank | 22,912
Vostochno-Sibirsky Regional Bank | 6,014
Yugo-Zapadny Regional Bank | 14,516
Zapadno-Sibirsky Regional Bank | 8,385
Zapadno-Uralsky Regional Bank | 10,302

In 2011, the Bank will celebrate its 170th anniversary. Throughout its history, Sberbank has always strived to tackle the most important issues of the times. Nowadays it is a modern universal bank that meets the needs and requirements of various customer categories for a broad range of banking products and services. In 2008, we embarked on a strategic transformation programme to create value for those with whom we work.

#### Bank staff breakdown by education level, as of December 31, 2010, %

#### Bank staff breakdown by age, as of December 31, 2010, %

#### Bank staff breakdown by gender, as of December 31, 2010, %

#### Composition of governance bodies, as of December 31, 2010

Age | Women | Men | Total
--- | --- | --- | ---
Supervisory Board |  |  |
30 or under | 0 | 0 | 0
31–50 | 1 | 7 | 8
51 or over | 2 | 7 | 9
Total | 3 | 14 | 17
Management Board |  |  |
30 or under | 0 | 0 | 0
31–50 | 1 | 11 | 12
51 or over | 1 | 1 | 2
Total | 2 | 12 | 14

#### Employee turnover rate by gender and age, 2010,%

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#### Employee turnover rate, 2010, %

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The main areas of the transformation include:

- achieving maximum focus on customers and becoming a service-oriented company providing services to retail and corporate customers;
- modernising technology at the Bank and ‘industrialising’ its systems and processes;
- considerably improving the efficiency of the Bank’s operations on the basis of the most advanced technologies and management approaches as well as optimising and streamlining all business processes by rolling out the Sberbank Production System which was created in line with the principles of lean production;
- developing our international operations, primarily in the CIS.

The implementation of Sberbank’s Development Strategy will help the Bank strengthen its position on the Russian banking market and achieve a performance level similar to that of world-class universal financial institutions.

Sberbank is a member of leading Russian and international business organisations, which helps it engage with the business community on matters such as the development of the Russian banking industry, improving the investment climate, developing entrepreneurship and strengthening international economic relations.

## Sberbank’s Membership in Business Associations and Organisations as of the End of 2010

- National Currency Association (NCA).*
- National Securities Market Association (NSMA).*
- Russian National Association of Securities Markets
- Participants (NAUFOR).*
- International Capital Market Association (ICMA), Russian
- Regional Committee.*
- International Monetary Conference.
- International Banking Security Association (IBSA).
- Arbitration Promotion Centre.*
- US-Russia Business Council.*
- Russian-American Business Council.
- Russian-Chinese Business Council.
- World Economic Forum (WEF).

## Awards Received by Sberbank in 2010

- The 2009 Financial Olympus National Award in the Retail Bank category.
- Two international awards from Deutsche Bank: a 2009 USD STP (Straight Through Processing) Excellence Award and a 2009 Euro STP Excellence Award.
- International awards from JPMorgan Chase: a Quality Recognition Award for Outstanding Achievement in 2009–2010 for Bestin-Class STP Rates and a Quality Recognition Award for Book Transfers.
- An international 2009 STP Award from Commerzbank AG.
- The Banker of the Year National Banking Award.
- The Big Money Award in the Innovation Breakthrough category.
- The 2010 Employer of the Year Award.
- Visa Service Quality Performance Award.
- Awarded as the Russian Corporate Governance Leader in three categories (Best Corporate Manager, Best Progress in the Development of Corporate Governance and Best Annual Report).

* Sberbank is a member of the management bodies of these organisations.

5 Since January 1, 2011 the Bank’s network of branches includes 17 regional banks. In 2010 the network included 18 regional banks.

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