2015 Annual Report

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General trends

In 2015 the Group’s assets increased by 8.5% to RUB 27.3 trillion. Loans and advances to customers remain the largest assets’ category: their share in the Group’s total assets as at 31 December 2015 amounted to 68.5%. The proportion of liquid assets which include cash and cash equivalents, due from banks, securities portfolio, comprised 21.9%. In 2015 the securities portfolio increased by 30.2% and reached RUB 2.9 trillion. The portfolio comprises mostly bonds and is used primarily for liquidity management.

Structure of sberbank group’s assets in 2014
Structure of sberbank group’s assets in 2014
Structure of sberbank group’s assets in 2015
Structure of sberbank group’s assets in 2015

Loans and advances to customers

The loan portfolio of the Group before provision for loan impairment grew by 7.0% y-o-y to RUB 19.9 trillion. Corporate loans were the key driver of the loan portfolio growth: in 2015 corporate loans increased by 8.6% compared to 2.4% growth in retail lending. The growth in corporate lending was largely driven by revaluation of loans granted in foreign currencies. The share of corporate loans in total loan portfolio of the Group slightly increased to 75.1% (2014: 74.0%).

Loans and advances to customers in 2014
Loans and advances to customers in 2014
Loans and advances to customers in 2015
Loans and advances to customers in 2015

Retail loan portfolio grew by 2.4% y-o-y in 2015 and comprised RUB 5.0 trillion. The reduction of household income and shift to the savings pattern of behaviour by the population during the recession were the drivers for the decline in retail lending growth in 2015 compared to 2014 (when retail loans grew by 29.3%). Mortgage lending became the main driver of retail loan portfolio growth in 2015, making 12.5% increase y-o-y. Mortgage loans remained the main component of the Group’s retail loan portfolio in 2015: their share comprised 51.4% showing increase of 4.6 p.p. in 2015. The share of mortgage loans in total loan portfolio comprised 12.9%. Sberbank’s domestic market share in mortgage loans reached 55.0%.

Loan portfolio breakdown
31 December, 2014 31 December, 2015
RUB bln % of total RUB bln % of total
Commercial loans to legal entities 9,026.5 48.5 10,368.0 52.1
Specialised loans to legal entities 4,752.3 25.5 4,590.7 23.0
Mortgage loans to individuals 2,269.8 12.2 2,554.6 12.9
Consumer and other loans to individuals 1,868.3 10.0 1,681.8 8.4
Credit cards and overdrafts 538.8 2.9 587.2 2.9
Car loans to individuals 170.4 0.9 142.0 0.7
Total loans and advances to customers before provision for loan impairment 18,626.1 100.0 19,924.3 100.0

Corporate loan portfolio increased by 8.6% to RUB 14.9 trillion. Growth of corporate loans was influenced mainly by revaluation of loans in foreign currency as well as by some corporate lending growth.

Credit quality

The provision coverage of the total loan portfolio before provision for loan impairment amounted to 6.0% as at 2015 year end making increase compared to 2014 year end (4.7%). In 2015 the proportion of NPL90+ (non-performing loans with interest payments or principal overdue more than 90 days) in the total loan portfolio of the Group grew to 5.0% from 3.2%. At the same time the share of NPL90+ decreased during 4th quarter 2015 from 5.4% largely due to corporate segment. The provision coverage of non-performing loans in 2015 remained on a comfortable level — 120%. Renegotiated loan portfolio grew by 39.6% y-o-y to RUB 3.4 trillion while its proportion in total loan portfolio comprised 17.2% as at 31 December 2015 compared to 13.2% as at 31 December 2014.

Securities portfolio

The Group’s securities portfolio consists mainly of debt financial instruments (97.9%) and is used primarily for liquidity management. The proportion of shares in securities portfolio remained almost unchanged compared to 2014 and amounted to 1.9% at 2015 year-end. The proportion of corporate bonds in the portfolio structure comprised 39.9% at 2015 year-end with 8.0 p.p. increase y-o-y.

The share of corporate bonds with investment rating comprised 39.1% compared to 63.0% at 2014 year-end. The share of securities pledged under repurchase agreements decreased from 52.4% to 7.6% in 2015. This decrease is a result of significant reduction in dependence on the Bank of Russia funding which became possible due to flexible interest policy and icrease in customer deposits volumes.

Loans and advances to customers in 2015
2014 Share, % 2015 Share, %
Federal loan bonds (OFZ bonds) 807.9 36.3 872.2 30.0
Corporate bonds 712.7 31.9 1,156.9 39.9
Foreign government and foreign municipal bonds 355.5 15.9 413.0 14.2
Russian Federation Eurobonds 217.3 9.7 325.7 11.2
Municipal and subfederal bonds 93.3 4.2 76.4 2.6
Promissory notes 0.4 0.0 0.4 0.0
Total debt securities 2,187.1 98.0 2,844.6 97.9
Corporate shares 40.2 1.8 56.2 1.9
Investments in mutual funds 4.6 0.2 5.2 0.2
Total securities 2,231.9 100.0 2,906.0 100.0
Credit rating loan portfolio breakdown
2014 Share, % 2015 Share, %
Investment rating 1,790.3 81.9 1,672.9 58.8
Speculative rating 312.5 14.3 1,079.1 37.9
Not rated 84.3 3.8 92.6 3.3
Total debt securities 2,187.1 100.0 2,844.6 100.0