Operating Expenses 

RUB m 2010 2009 Change, %
Staff costs 161,180 128,624 25.3
Depreciation of premises and equipment and other costs related to premises and equipment 60,792 52,838 15.1
Administrative and information services expenses 22,414 17,700 26.6
State deposit insurance system membership fee 16,718 13,047 28.1
Taxes other than on income 12,586 10,282 22.4
Other 8,929 6,786 31.6
Total operating expenses 282,619 229,277 23.3
Cost to income ratio, % 42.4% 35.4% 7.0 п.п.

The Group’s operating expenses added 23.3% to RUB 282.6bn in 2010. The growth was largely driven by higher staff costs (up 25.3% to RUB 161.2bn). The Bank had planned to raise salaries in 2010 in order to bring them in line with current market levels. Other drivers of operating expense growth were depreciation and maintenance charges on premises and equipment, and telecommunication and current administrative expenses. These expense items increased as the Group resumed investments in infrastructure projects designed to implement its long-term development strategy.

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