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Sberbank Annual Report on 2016 Performance
Herman Gref
2 / 18 2017
10066
2012 2013 2014 2015 2016
Annual General Meeting of Shareholders of Sberbank 26 May 2017
Finance Strategy Digital Business Technologies Sbergile
In 2016 Sberbankearned a recordprofit
Profit/Loss
20.8%24.2%
● 20.8%
●
14.8%
●10.2%
●
20.8%
●
542Net Profit
RUB bn
Return on equity #1 in return on equity amongTOP-50 banks in Europe
#5 in return on equity amongTOP-100 banks in Europe
#47 in profit among the world’s public companies
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25+75+U
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Annual General Meeting of Shareholders of Sberbank 26 May 2017
Finance Strategy Digital Business Technologies Sbergile
Dividends 25%of net profit135.5
RUB bn
RUB
Net profit (IFRS) paid out in dividends Dividend per 1 ordinary share, RUB
per ordinary and preferred share
2.57
3.20
0.45
1.97
6.00
16.9%●
20.0%●
3.5%
●
20.0%●
25.0%● 6.00
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#4
+71%
#21
+77%
1Q 2Q 3Q 4Q
180
160
140
120
100
80
Annual General Meeting of Shareholders of Sberbank 26 May 2017
Finance Strategy Digital Business Technologies Sbergile
Summing up, in 2016 SberbankSberbank shares
bank in Europe by market cap
equity upside in 2016
bank in the world by market cap
total returns for shareholders
Sberbank’s share price trend in 2016
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ICBC
China Construction Bank
Bank of China
Sberbank 2016
Agricultural Bank of China
Commonwealth
Sberbank 2015
JPMorgan Chase
Wells Fargo
Citigroup
Bank of America
HSBC2012 2013 2014 2015 2016
Annual General Meeting of Shareholders of Sberbank 26 May 2017
Finance Strategy Digital Business Technologies Sbergile
The Bank is continuing its program for improving efficiency and cutting operating costs
Efficiency
Cost to Income Ratio (CIR)39.7% Cost to Income Ratio (CIR),
TOP-10 banks in the world
48.7%
●
46.0%
●
43.2%
●
43.7%
●
39.7%
●
33.1%
33.1%
39.6%
39.7%
41.9%
42.3%
43.7%
57.6%
58.5%
59.6%
65.0%
83.0%
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2012 2013 2014 2015 20162012 2013 2014 2015 2016 85+15+ZAnnual General Meeting of Shareholders of Sberbank 26 May 2017
Finance Strategy Digital Business Technologies Sbergile
In 2016, Sberbank lent over RUB 10 tn to the Russian economyLending to economy
Loans to corporates, RUB tn9.1 Loans to individuals,
RUB tn1.6
1.5
1.8
2.1
1.3
1.6
5.9
7.38.0
6.8
9.1
10.7RUB tn
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2012 2013 2014 2015 2016
22
135
361
475
342
2014 2015 2016 2014 2015 2016
Annual General Meeting of Shareholders of Sberbank 26 May 2017
Finance Strategy Digital Business Technologies Sbergile
Quality of Sberbank’s loans is higher than generally in the Russian banking sectorLoan quality
Provisioning expense, RUB bn342 Overdue loans as share of portfolio
Corporates Individuals
Banking system without Sberbank● Sberbank●
1.9% ●
2.4%●
5.5%●
7.8%●
3.1% ●
3.8% ●
7.7% ●
10.8% ●
2.0%● 3.7%
●
7.9%●
10.8%●
-7.1 pp-5.9 pp
-28%
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Annual General Meeting of Shareholders of Sberbank 26 May 2017
Finance Strategy Digital Business Technologies Sbergile
Subsidiary Banks
Sberbank Europe AG
SB Sberbank JSC(Kazakhstan) BPS-Sberbank Sberbank of Russia Denizbank
9 countries bank #4 bank #3 bank #7 bank #5
Market share 2.5% 6.1% 8.7% 3.7% 4.8%
Net Profit, RUB bn 2.4 1.4 0.3 -7.6 38.0
&
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Активы
2016 2016 2016/2013
Annual General Meeting of Shareholders of Sberbank 26 May 2017
Finance Strategy Digital Business Technologies Sbergile
Financial performance
Returns and equity Efficiency Growth
The most client focused bank in RussiaWinner of Customer Rights and Service Quality award
IT systems centralization programWinner of international Legacy Transformation award
CIPR Inside award for internal communicationsWinner of the international innovation award organized by Efma & Accenture
With our customer for life
Technological Break-Through
Mature Organization
Best example of employee engagement CIPR Inside award for internal communications
Team and Culture
Return on equity
Tier 1 Capital Adequacy
12.3% >10.0%
Cost/Income
39.7% <40.0%
Cost/Assets
2.6% <2.5%
Net Profit
х1.5 х1.8+
х1.4 х1.8
21% ~18%
Goal of 2018 Strategy Goal of 2018 Strategy Goal of 2018 Strategy /2013
129 Х20retail clients
shortened incident downtimemln
5 of 10best international business schools are partners with Sberbank Corporate University
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+82%
+26%
+19%
+25%
+35%
#1#1
+40%
+5%
+10%
124 37 1
27 36 25
Annual General Meeting of Shareholders of Sberbank 26 May 2017
Finance Strategy Digital Business Technologies Sbergile
cards
millionusers in Sberbank Online
POS terminals
million million
1.4users of Mobile Bank users of Sberbank
Business Onlineactive users of Autopayments
million million million7.5card-to-card transfers (P2P)
RUB tnparticipants in SberbankSpasibo loyalty program
million
Yandex.Money
– Runet payment aggregator
– e-wallet in Russia
Share ofSberbank —75% minus RUB 1
acquirer in EuropeThe Nilson Report
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Annual General Meeting of Shareholders of Sberbank 26 May 2017
Finance Strategy Digital Business Technologies Sbergile
Consultants educate clients
near ATMs
Contactless payments by smartphone
Usage of remote channels best in
the country
Paper-free transactions in
branches
Unique payment service
for mobile connectivity
(900 number)
P2P transfers market created
Autopayment: 0 seconds per
transaction
Purchase of real estate simplified
Biometrics-based payments
Over 1 million acquiring terminals
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Annual General Meeting of Shareholders of Sberbank 26 May 2017
Finance Strategy Digital Business Technologies Sbergile
Fully Cashless City
ZelenodolskRepublic of Tatarstan
Doctor appointment
Shopping in a farmer’s market
Social services
CITIZEN’S CARD
universal tool to manage daily needs of a citizen
Public services
Shopping in stores
Transit fare
Loyalty program
13 / 18 2017
10069Сбербанк Телеком
охранное поле
SBERBANK IRInvestor application
Annual General Meeting of Shareholders of Sberbank 26 May 2017
Finance Strategy Digital Business Technologies Sbergile
New products of Sberbank
DomClick
SPASIBO from Sberbank - Travel
Active Retirement
Sberbank TelecomEvotor - Evolution of Trade
Sberbank Together
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Annual General Meeting of Shareholders of Sberbank 26 May 2017
Finance Strategy Digital Business Technologies Sbergile
Comfortable tool for trading sharesSberbank Investor
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Annual General Meeting of Shareholders of Sberbank 26 May 2017
Finance Strategy Digital Business Technologies Sbergile
&300,000tasks a week are set by the program to management automatically
Intelligent (Smart) Management System
Sberbank received a record number of votes in the history of EFMA & Accenture innovations competition
managers7,000
branches6,000
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95%
Annual General Meeting of Shareholders of Sberbank 26 May 2017
Finance Strategy Digital Business Technologies Sbergile
Digital technologies have taken risk management to a new level in SberbankRisk management
Risk assessment models
584475
in 2015
SMART-loans for SMEs
15-60 minutes
3-11 days in 2015
Daily
once a year in 2015
Checking transaction exposure limits
for eFX CIB
6 milliseconds
“Loan in 1 day” for small & medium
businesses
7.5 hours
11 days in 2015
Cyberfraud attempts against clients
prevented
69% in 2015
Review of exposure to banks
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Annual General Meeting of Shareholders of Sberbank 26 May 2017
Finance Strategy Digital Business Technologies Sbergile
DomClick – domclick.ru
Online registration of
the transaction
11 business days
4 trips
1 business day
Filing registration documents
1 business day
Transfer of registration
documents to the bank
Trip to the bank
Trip to the bank
Trip to Multifunctional center
Trip to Multifunctional center
Rosreestr
2 business days
Transfer registration documents
2 business days
Transfer of registration documents
5 business days
Transaction registration
Registration ofthe transaction
at Sberbank
5 business days
1 trip
Bank
Transfer of documentation to Rosreestr – instantly
Notification of completed registration and final
documents attached in email
5 business days Transaction registration
Trip to the bank
Legal review
% of price
Sale ofmortgaged properties
Renovation and furniture
TitleInsurance
Propertyselection
Secure settlements
Electronic registration
Documents for the transaction
Multi-format platform forreal estate transactions
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Annual General Meeting of Shareholders of Sberbank 26 May 2017
Finance Strategy Digital Business Technologies Sbergile
Moscow, Kutuzovsky Prospekt, 32
Sberbank Office
Agile Team of Sberbank’s Retail Business Block
The most expensive way of payment is time