Sberbank - Annual Report 2010 - 1 Introduction

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# 1 Introduction

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standardsfor the yearended 31 December 2010 for Sberbank of Russia (Sberbank, "the Bank") and its subsidiaries (together referred to as "the Group" or "Sberbank Group"). Principal subsidiaries include foreign commercial banks and other Russian and foreign companies controlled by the Group. A list of principal subsidiaries included in these consolidated financial statements is disclosed in Note 37.

The Bank is an open joint stock commercial bank which was established in 1841 and operated in various forms since then. The Bank was incorporated and is domiciled in the Russian Federation. The Bank's principal shareholder, the Central Bank of the Russian Federation ("Bank of Russia"), owns 60.3% of ordinary shares or 57.6% of the issued and outstanding shares as at 31 December 2010(31 December 2009: 60.3%of ordinary shares or 57.6%of the issued and outstanding shares).

As at 31 December 2010 the Supervisory Board of the Bank is headed by the Chairman of the Bank of Russia. The Supervisory Board also includes representatives from the Bank's other shareholders and independent directors. Two Deputy Chairmen of the Bank of Russia are Deputy Chairmen of the Supervisory Board.

The Bank has operated under a full banking license issued by the Bank of Russia since 1991. In addition, the Bank holds licenses required for trading and holding securities and engaging in other securities-related activities, including acting as a broker, a dealer, a custodian, and providing asset management services. The Bank is regulated and supervised by the Bank of Russia and the Federal Service for Financial Markets. The Group's foreign banks operate under the bank regulatory regimes of their respective countries.

The Group's principal business activity is corporate and retail banking operations. This includes deposit taking and lending to corporate clients, small businesses and individuals in freely convertible currencies, local currencies of countries where the Group operates and in Russian Roubles, support of clients' export / import transactions, foreign exchange, settlements, cash collection, securities trading, and trading in derivative financial instruments. The Group's operations are conducted in both Russian and international markets. As at 31 December 2010 the Group conducts its business in Russia through Sberbank with its network of 17 (31 December 2009:18) regional head offices, 522 (31 December 2009:602) branches and 18 883 (31 December 2009:19 103) sub-branches, and through principal subsidiaries - CJSC Sberbank Leasing and LLC Sberbank Capital. In the fourth quarter 2010 the Bank changed its organisational structure and its Altaisky regional head office was reorganized into a branch and resubordinated to Sibirsky regional head office. The Group operates outside Russia through 3 bank subsidiaries, located in the Ukraine, Belarus and Kazakhstan, a branch office in India and a representative office in Germany.

The Bank participates in the State Deposit Insurance System, which was introduced by the Federal Law №177-FZ "Deposits of individuals insurance in Russian Federation" dated 23 December 2003. The System guarantees repayment of 100% of individual deposits up to RR 700 thousand per individual in case of the withdrawal of a license of a bank or the Bank of Russia imposed moratorium on payments.

The average number of the Group's employees during the year ended 31 December 2010 was 257 046 (during the year ended 31 December 2009: 260 805).

Registered address and place of business. The Bank's registered address is: Vavilova str., 19, Moscow, Russian Federation.

Presentation currency. These consolidated financial statements are presented in millions of Russian Roubles ("RR millions") unless otherwise stated.

## History

- Notes
- Statement of Cash Flows
- Recommend Page
- Statement of Changes in Equity
- 37 Principal Subsidiaries

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