Sberbank - Annual Report 2010 - Capital Adequacy

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# Capital Adequacy

Capital adequacy in accordance with the Basel Capital Accord is presented in the table below.

RUB m (unless stated otherwise) | As of 31 December 2010 | As of 31 December 2009
--- | --- | ---
Core capital adequacy ratio | 11.9% | 11.5%
Total capital adequacy ratio | 16.8% | 18.1%
CAPITAL COMPONENTS |  |
Core capital (Tier 1) |  |
Share capital | 87,742 | 87,742
Share premium | 232,553 | 232,553
Retained earnings | 585,819 | 403,934
Less — Goodwill | (8,251) | (469)
Supplementary capital (Tier 2) |  |
Revaluation reserve for office premises | 53,648 | 55,540
Fair value reserve for investment securities available for sale | 13,437 | (329)
Foreign currency translation reserve | (1,136) | (1,009)
Subordinated capital | 303,513 | 362,115
Less — Investments in associates | (2,479) | (31)
Total capital | 1,264,846 | 1,140,046
Risk-weighted assets | 7,526,973 | 6,303,813

In 2010, the Group’s core capital adequacy ratio increased by 0.4 p.p. to 11.9%. Retained earnings grew faster than risk-weighted assets in 2010 and this resulted in the Group having a higher core capital adequacy ratio.

Taking into account a substantial increase in customer funds and a high capital adequacy ratio, in May 2010 the Group paid back a RUB 200bn tranche of the RUB 500bn subordinated loan it received from the Bank of Russia in the fourth quarter of 2008. The partial repayment of the subordinated loan caused a reduction in the Group’s Tier 2 capital and, therefore, the total capital adequacy ratio declined by 1.3 p.p. to 16.8% in 2010. However, the capital adequacy ratio is notably higher than the minimum 8% ratio set by the Basel Committee.

## History

- Structure Liabilities
- Structure Assets
- Income Statement
- Market Position
- Address of the CEO and Chairman of the Management Board Herman Gref

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