Structure of Sberbank Group’s assets under IFRS

GENERAL TRENDS

In 2014, the Group’s assets increased by 38.4% to RUB 25.2 trillion. Loans and advances to customers remained the largest asset component, comprising 70.5% of total assets as at the year-end. The proportion of liquid assets comprising cash, due from banks and securities portfolio amounted to 19%. In 2014, the securities portfolio increased by RUB 90.7 bn and reached RUB 2.2 trillion. The portfolio comprised mostly bonds and is primarily used for liquidity management.

GENERAL TRENDS, 2014

GENERAL TRENDS, 2013

LOANS AND ADVANCES TO CUSTOMERS

The Group’s total gross loan portfolio grew by 37.5% y-o-y to RUB 18.6 trillion. Loans to legal entities became the key driver for loan portfolio growth: in 2014, the portfolio increased by 40.7% against 29.3% growth in loans to individuals. In 2014, the proportion of corporate loans in the total loan portfolio increased to 74.0% y-o-y (versus 72.3% in 2013).

About 60% of the growth in total customer loan portfolio before provisions was driven by the increase in the volumes of the Group’s lending, whereas the other 40% was the result of the revaluation of loans nominated in foreign currency due to RUB devaluation.

LOANS AND ADVANCES TO CUSTOMERS, 2014

LOANS AND ADVANCES TO CUSTOMERS, 2013

The retail portfolio increased 29.3% y-o-y to RUB 4,8 trillion. In 2014, the structure of the loan portfolio continued to shift towards mortgage loans, which increased to 12.2% in total gross loans, with the mortgage loan portfolio exceeding consumer unsecured loan portfolio. In 2014, mortgage loans were the key driver of retail loan portfolio growth making 63.7% of the total retail loan portfolio growth.

LOAN PORTFOLIO BREAKDOWN
December 31, 2014 December 31, 2013
RUB bn % of total RUB bn % of total
Commercial loans to legal entities 9,026.5 48.5 6,223.9 46.0
Specialised loans to legal entities 4,752.3 25.5 3,572.1 26.3
Mortgage loans to individuals 2,269.8 12.2 1,569.0 11.6
Consumer and other loans to individuals 1,868.3 10.0 1,672.8 12.3
Credit cards and overdrafts 538.8 2.9 349.0 2.6
Car loans to individuals 170.4 0.9 157.2 1.2
Total loans and advances to customers before provision for loan impairment 18,626.1 100.0 13,544.0 100.0

The portfolio of loans to legal entities increased by 40.7% y-o-y to RUB 13.8 trillion. Accelerated growth in volumes of corporate lending is due, but not limited to, sanctions imposed on a number of Russian companies, which largely resulted in unavailability for large corporations to attract funds on foreign capital markets, as well as due to revaluation of loans nominated in foreign currencies.

During the year, the Group’s corporate loans to all categories of clients increased, with the most part of loans being granted to the largest clients.

CREDIT QUALITY

The provision coverage of the total gross loan portfolio amounted to 4.7% at the end of 2014 (versus 4.5% in 2013). In 2014, 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 increased from 2.9% to 3.2%. In 2014, the provision coverage of restructured loans remained at a comfortable level above 140%.

SECURITIES PORTFOLIO

Debt instruments represent 98.0% of the Group’s securities portfolio and is mainly used for liquidity management. In 2014, the proportion of equities in the portfolio decreased by 0.8 pp and amounted to 1.8%. By the end of 2014, corporate bonds amounted to 31.9% of the total portfolio, reduced by 1.2 pp during the year.

The proportion of corporate bonds with investment rating in this category increased to 62.6% (versus 59.8% in 2013). The share of securities pledged under repo transactions decreased from 62.8% to 52.4% during 2014. Most of these transactions are with the Bank of Russia.

Securities portfolio breakdown
December 31, 2014 December 31, 2013
RUB bn % of total RUB bn % of total
Federal loan bonds (OFZ bonds) 807.9 36.3 946.1 44.2
Corporate bonds 712.7 31.9 707.9 33.1
Foreign government bonds 355.5 15.9 169.5 7.9
Russian Federation Eurobonds 217.3 9.7 139.6 6.5
Municipal and subfederal bonds 93.3 4.2 120.0 5.6
Promissory notes 0.4
Total debt securities 2,187.1 98.0 2,083.1 97.3
Corporate shares 40.2 1.8 55.1 2.6
Investments in mutual funds 4.6 0.2 3.0 0.1
Total securities 2,231.9 100.0 2,141.2 100.0
Debt securities portfolio by credit rating
December 31, 2014 December 31, 2013
RUB bn % of total RUB bn % of total
Investment rating 1,790.3 81.9 1,719.4 82.5
Speculative rating 312.5 14.3 310.5 14.9
Not rated 84.3 3.8 53.2 2.6
Total debt securities 2,187.1 100.0 2,083.1 100.0