2015 Annual Report

ru

General trends

The Group’s liabilities structure is dominated by amounts due to individuals and corporate customers, which amounted to RUB 19.8 trillion as at 31 December 2015, or 79.3% of liabilities. Amounts of due to banks decreased by 71.3% y-o-y in 2015 and was largely influenced by reduction in volumes of funding received from the Bank of Russia.

Customer deposits

Amounts due to customers increased by 27.2% y-o-y to RUB 19.8 trillion in 2015. Amounts due to individuals remain the key component of the Group’s funding. In 2015 the share of due to individuals comprised 48.3% in the total liabilities of the Group. The volume of individual deposits grew by 29.1% to RUB 12 trillion, the volume of corporate funds by 24.4% to RUB 7.8 trillion. As a result the proportion of due to individuals in the total amounts of due to customers comprised 60.8%.

Breakdown of amounts due to customers
31 December, 2014 31 December, 2015
RUB bln % RUB bln %
Due to individuals
Current/demand accounts 1,886.2 12.1 2,415.4 12.2
Term deposits 7,442.2 47.8 9,628.3 48.6
Total due to individuals 9,328.4 59.9 12,043.7 60.8
Due to corporate customers
Current/settlement accounts 1,819.7 11.7 2,361.2 11.9
Term deposits 4,414.8 28.4 5,393.4 27.3
Total due to corporate customers 6,234.5 40.1 7,754.6 39.2
Total 15,562.9 100.0 19,798.3 100.0
Debt securities issued
31 December, 2014 RUB bln 31 December, 2015 RUB bln Change
RUB bln %
Loan participation notes issued under the MTN programmeme of Sberbank 629.9 607.0 (22.9) –3.6
Savings certificates 456.8 577.7 120.9 26.5
Bonds issued:
— on the local market 80.2 70.1 (10.1) –12.6
— on international capital markets 33.0 34.5 1.5 4.5
Promissory notes 73.3 80.7 7.4 10.1
Bonds issued under mortgage securitisation programmeme of Sberbank 9.7 7.2 (2.5) –25.8
Deposit certificates 2.7 1.3 (1.4) –51.9
Notes issued under the ECP programmeme of Sberbank 15.9 0 (15.9) –100.0
Equity linked notes and credit linked notes 1.1 0 (1.1) –100.0
Total debt securities in issue 1,302.6 1,378.5 75.9 5.8

The volume of debt securities in issue increased by 5.8% y-o-y in 2015. Savings certificates were the only component which increased significantly in 2015, by RUB 120,9 billion, or 26.5% y-o-y. Promissory notes balances also demonstrated growth of 10.1%. At the same time loan participation notes issued under the MTN programmeme of Sberbank decreased by RUB 22.9 billion due to repayment of several issues upon maturity. The reason for only a slight reduction in the balances of these notes despite the repayments was a significant weakening of Russian Rouble to the main foreign currencies. Also, notes issued under the ECP programmeme of Sberbank were fully repaid in 2015.

Equity
31 December, 2014 bln RUB 31 December, 2015 bln RUB Change,
bln RUB %
Share capital 87.7 87.7
Treasury shares (7.6) (6.7) 0.9 –11.8
Share premium 232.6 232.6
Revaluation reserve for office premises 72.3 69.3 (3.0) –4.1
Fair value reserve for investment securities available-for-sale (171.4) (45.7) 125.7 –73.3
Foreign currency translation reserve 83.2 101.1 17.9 21.5
Remeasuments of defined benefit pension plans (0.7) (0.7)
Retained earnings 1,718.8 1,935.2 216.4 12.6
Total equity attributable to shareholders of the Bank 2,015.6 2,372.8 357.2 17.7
Non-controlling interest 4.5 2.2 (2.3) –51.1
Total equity 2,020.1 2,375.0 354.9 17.6

The Group’s equity increased by 17.6% to RUB 2.4 trillion in 2015. The growth is attributed to the Group’s profit earned as well as to gains from revaluation of investment securities available-for-sale recognised in other comprehensive income.

Capital Adequacy Ratio
31 December, 2014 RUB bln 31 December, 2015 RUB bln
Tier 1 capital
Share capital 87.7 87.7
Share premium 232.6 232.6
Retained earnings 1,718.8 1,935.2
Treasury shares (7.6) (6.7)
less Goodwill (23.7) (22.1)
Total Tier 1 capital 2,007.80 2,226.70
Tier 2 capital
Revaluation reserve for premises 72.3 69.3
Fair value reserve for investment securities available-for-sale (77.1) (20.6)
Foreign currency translation reserve 83.2 101.1
Eligible subordinated debt 753.4 781.2
less Investments in associates (4.3) (6.5)
Total Tier 2 capital 827.5 924.5
Total capital 2,835.30 3,151.20
Risk weighted assets (RWA)
Credit risk 22,845.30 24,225.70
Market risk 519.70 769.80
Total risk weighted assets (RWA) 23,365.00 24,995.50
Core capital adequacy ratio (Total Tier 1 capital to Total RWA) 8.6 8.9
Total capital adequacy ratio (Total capital to Total RWA) 12.1 12.6

Core capital adequacy ratio comprised 8.9% as at 31 December 2015. Total capital adequacy ratio amounted to 12.6% at 2015 year-end , which is significantly higher than the baseline set by Basel Committee (8%). At the same time capital adequacy ratios demonstrated growth in 2015 compared to 2014 as a result of the Group’s total capital growth.