Retail lending continued to grow in Russia demonstrating a 14% growth in 2014. Sberbank retail loan portfolio (including Cetelem portfolio) increased by 23% based on management reports.
The following achievements of Sberbank retail business in 2014 are noteworthy:
- In 2014, Sberbank focused on mortgage products, increasing its market share to a record 53% by the end of the year. For the first time in its history, Sberbank share of mortgage loans exceeded its consumer unsecured loan portfolio share in total retail loan portfolio (46.4% vs 40.2%).
- An efficient risk management system enabled Sberbank to keep its retail loan book quality at the level above market average despite the worsening of the economic situation in 2014.
- In 2014, Sberbank continued to demonstrate good performance in the bankcard and acquiring segments, having strengthened its market leadership. Reinforced IT-infrastructure, robust development of remote servicing channels and a targeted approach to sales channels all contributed to maintaining high growth rates in related commission income (33.0% vs 35.5% in 2013).
In 2014, Sberbank started to use a new method to determine the most suitable product for the customer based on financial modelling and customer base segmentation. Sberbank premium segment demonstrated good progress attracting affluent and VIP customers with integrated solutions and service packages.
Active sales campaign optimisation was launched in the public segment. Initial steps were taken to implement mass personalisation, including the launch of communications with clients that receive salaries through Sberbank and developing the best product offering for the customer.
Based on annual customer survey resultsThe survey was conducted in 16 Russian regions in cities with a population greater than 100,000 people by ARMI-Marketing, an independent company and a member of the Millward Brown international network., the Net Promoter Score, i.e., readiness to recommend Sberbank, increased by 6 pp over the year, reaching 60%. These were the best survey results in Russia’s banking sector.
Cross-sell promotion enabled Sberbank to increase its retail product sales per active customer from 1.6 to 2.0 over the year.