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Sberbank: Sberbank publishes Consolidated Financial Statements in accordance with International Financial Reporting Standards (IFRS) for the 2011 year

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Sberbank: Sberbank publishes Consolidated Financial Statements in
accordance with International Financial Reporting Standards (IFRS) for
the 2011 year

30.03.2012 / 09:48

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Sberbank publishes Consolidated Financial Statements in accordance with
International Financial Reporting Standards (IFRS) for the 2011 year

28 March 2012

Sberbank Group (hereafter ´the Group´) has released its consolidated IFRS
financial statements (hereafter ´the Financial Statements´) as at 31
December 2011 and for the year ended 31 December 2011, with an independent
audit report by Ernst & Young Vneshaudit (Download the Presentation).

Statement of financial position highlights:

  - The Group continues to enjoy solid loan growth with gross loan
    portfolio up 35.4% in 2011. This growth was reasonably balanced between
    corporate loans increasing 35% and retail loans expanding by 36.8% in
    2011.

  - Customer deposits increased by 19.3% in 2011, similarly well balanced
    between retail deposits growing at 18.4% and corporate at 21.4%.

  - The Group´s Equity increased in 2011 by 28.4% to RUB 1,268.0, with
    profit for the year being the major driver of the increase.

Income Statement highlights:

  - Net profit for 2011 reached RUB 315.9 bn (or RUB 14.61 per ordinary
    share), showing a 74% increase on RUB 181.6 bn (or RUB 8.42 per
    ordinary share) for 2010.

  - In 2011, the Group´s revenues continued to come mostly from core
    banking operations, with net interest income and net fee and commission
    income accounting for 94.5% of total operating income before provision
    for loan impairment.

  - The Group´s net interest margin for 2011 was close to the level of 2010
    around 6.4%.

  - Despite higher operating expenses in 2011, the Cost to Income ratio
    stays at an adequate level of 46.9% versus 40.9% in 2010.

  - The improving Russian economy and ongoing implementation of new risk
    management and recovery procedures have had a positive impact on the
    Group´s loan quality, resulting in net recovery of provisions in 2011
    of RUB 1.2 bn. The non-performing loan ratio declined from 7.3% as of
    31 December 2010 to 4.9%, while the non-performing loan coverage ratio
    remained strong at 1.6x as of 31 December 2011.

  - Return on equity improved and reached 28.0% in 2011 versus 20.6% in
    2010.

Financial and Operating Review:

Interest income increased in 2011 by 6.9% year-on-year to RUB 850.6 bn. The
increase was driven by the expansion of interest earning assets and the
growing proportion in them of assets with higher yields, primarily loans.

Interest expenses decreased in 2011 by 8.5% year-on-year to RUB 289,6 bn.