Sberbank - Annual Report 2010 - 36 Operations with State-Controlled Entities and Government Bodies

Home Financial Report Financial Statements Notes 36 Operations with State-Controlled Entities and Government Bodies

# 36 Operations with State-Controlled Entities and Government Bodies

The Government of the Russian Federation does not provide to the general public or entities under its ownership/control a complete list of the entities which are owned or controlled directly or indirectly by the State. Under these circumstances the Management of the Group disclosed only information that its current internal management and accounting systems allow to present in relation to operations with state-controlled entities and where the Management believes such entities could be considered as state-controlled based on its best knowledge. These consolidated financial statements disclose operations with government bodies and entities, in which the government directly owns more than 50% of the share capital. In relation to state-controlled entities, Management analysed the Group's transactions with its largest customers and extracted balances and results of operations in relation to the following groups of entities which were included in the tables below: 1) 100% State subsidiaries and government bodies and 2) largest entities where the State controls over 50% of its share capital. All transactions with government bodies and state-controlled entities are entered into in the normal course of business and priced at market rates.

As at 31 December 2010 and 31 December 2009, the outstanding balances with state-controlled entities and government bodies were as follows:

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| 2010 | 2009
--- | --- | ---
In millions of Russian Roubles | 100% owned State subsidiaries and government bodies | Entities where the State controls over 50% of share capital | 100% owned State subsidiaries and government bodies | Entities where the State controls over 50% of share capital
Cash and cash equivalents (contractual interest rate: 0.5%) | 2,001 | 8 | - | 1,747
Trading securities (yield to maturity: 2.0% -18.0%) | 48,213 | 4,634 | 72,642 | 6,876
Securities designated at fair value through profit or loss (yield to maturity: 1.0% - 8.0%) | 78,323 | 4,871 | 98,131 | 5,383
Due from other banks (contractual interest rates: 2.5% - 10.0%) |  | 10,198 | 4,073 | 2,516
Gross amount of loans and advances to customers (contractual interest rates: 5.5% -16.8%) | 326,359 | 114,872 | 247,522 | 197,813
Impairment for loans and advances to customers | (12,036) | (7,281) | (4,675) | (4,402)
Securities pledged under repurchase agreements (yield to maturity: 1.3% - 1.7%) | 59,224 | 3,747 | - | 31
Investment securities available for sale (yield to maturity: 1.5% - 14.0%) | 457,975 | 92,499 | 416,665 | 65,883
Investment securities held to maturity (yield to maturity: 4.0% - 8.6%) | 313,380 | 18,070 | - | -
Due to other banks (contractual interest rates: 0.4% - 3.3%) | 472 | 5,988 | - | 205
Due to corporate customers (contractual interest rates: 0.3% - 10.8%) | 187,240 | 94,990 | 152,369 | 90,693
Other liabilities | - | - | 3,449 | -
Guarantees issued | 76,458 | 4,138 | 9,633 | 2,662

| 2010 | 2009
--- | --- | ---
In millions of Russian Roubles | 100% owned State subsidiaries and government bodies | Entities where the State controls over 50% of share capital | 100% owned State subsidiaries and government bodies | Entities where the State controls over 50% of share capital
Cash and cash equivalents (contractual interest rate: 0.5%) | 2,001 | 8 | - | 1,747
Trading securities (yield to maturity: 2.0% -18.0%) | 48,213 | 4,634 | 72,642 | 6,876
Securities designated at fair value through profit or loss (yield to maturity: 1.0% - 8.0%) | 78,323 | 4,871 | 98,131 | 5,383
Due from other banks (contractual interest rates: 2.5% - 10.0%) |  | 10,198 | 4,073 | 2,516
Gross amount of loans and advances to customers (contractual interest rates: 5.5% -16.8%) | 326,359 | 114,872 | 247,522 | 197,813
Impairment for loans and advances to customers | (12,036) | (7,281) | (4,675) | (4,402)
Securities pledged under repurchase agreements (yield to maturity: 1.3% - 1.7%) | 59,224 | 3,747 | - | 31
Investment securities available for sale (yield to maturity: 1.5% - 14.0%) | 457,975 | 92,499 | 416,665 | 65,883
Investment securities held to maturity (yield to maturity: 4.0% - 8.6%) | 313,380 | 18,070 | - | -
Due to other banks (contractual interest rates: 0.4% - 3.3%) | 472 | 5,988 | - | 205
Due to corporate customers (contractual interest rates: 0.3% - 10.8%) | 187,240 | 94,990 | 152,369 | 90,693
Other liabilities | - | - | 3,449 | -
Guarantees issued | 76,458 | 4,138 | 9,633 | 2,662

Income and expense items with State subsidiaries and government bodies for the yearended 31 December 2010 and 31 December 2009 were as follows:

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| 2010 | 2009
--- | --- | ---
In millions of Russian Roubles | 100% owned State subsidiaries and government bodies | Entities where the State controls over 50% of share capital | 100% owned State subsidiaries and government bodies | Entities where the State controls over 50% of share capital
Interest income on loans | 27,995 | 13,491 | 40,510 | 28,215
Interest income on securities | 52,688 | 5,637 | 37,191 | 1,858
Interest expense | (4,116) | (1,902) | (12,829) | (7,516)
Net provision charge for loan impairment | (7,361) | (2,879) | (443) | (2,182)
Net gains/(losses) arising from trading securities | 4,399 | (165) | 10,254 | 781
Net gains/(losses) arising from securities designated at fair value through profit or loss | 5,514 | (356) | 5,316 | 1,782
Net gains arising from investment securities available for sale | 3,288 | 3,649 | 9,138 | 5,407
Net gains arising from investment securities held to maturity | 5 | - | - | -
Fee and commission income | 5,938 | 2,057 | 4,242 | 837
State deposit insurance system membership fee | 16,255 | - | 13,047 | -

| 2010 | 2009
--- | --- | ---
In millions of Russian Roubles | 100% owned State subsidiaries and government bodies | Entities where the State controls over 50% of share capital | 100% owned State subsidiaries and government bodies | Entities where the State controls over 50% of share capital
Interest income on loans | 27,995 | 13,491 | 40,510 | 28,215
Interest income on securities | 52,688 | 5,637 | 37,191 | 1,858
Interest expense | (4,116) | (1,902) | (12,829) | (7,516)
Net provision charge for loan impairment | (7,361) | (2,879) | (443) | (2,182)
Net gains/(losses) arising from trading securities | 4,399 | (165) | 10,254 | 781
Net gains/(losses) arising from securities designated at fair value through profit or loss | 5,514 | (356) | 5,316 | 1,782
Net gains arising from investment securities available for sale | 3,288 | 3,649 | 9,138 | 5,407
Net gains arising from investment securities held to maturity | 5 | - | - | -
Fee and commission income | 5,938 | 2,057 | 4,242 | 837
State deposit insurance system membership fee | 16,255 | - | 13,047 | -

Transactions with the State also include taxes. Income tax expense attributable to operations taxable in the Russian Federation amounted to RR46 763million for the yearended 31 December 2010(for the yearended 31 December 2009: RR 4 113 million).

## History

- 35 Related Party Transactions
- 34 Fair Value of Financial Instruments
- 33 Derivative Financial Instruments
- 32 Contingencies and Commitments
- 31 Financial Risk Management

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