Consolidated Statement of Cash Flows

CONSOLIDATED STATEMENT OF CASH FLOWS
Year ended 31 December
in billions of Russian Roubles 2014 2013
Cash flows from operating activities before changes in operating assets and liabilities
Interest received 1,809.4 1,445.8
Interest paid (675.1) (507.1)
Expenses paid directly attributable to deposit insurance (31.9) (26.8)
Fees and commissions received 328.2 253.1
Fees and commissions paid (44.6) (30.9)
Net losses incurred on trading securities (1.3) (3.3)
Dividends received from trading securities 0.4
Net gains received on securities designated as at fair value through profit or loss 1.0 1.2
Net losses incurred from trading in foreign currencies and from operations with foreign currency derivatives (147.4) (20.5)
Net gains received from operations with other derivatives 20.0 0.5
Net (losses incurred) / gains received from operations with precious metals and precious metals derivatives (26.2) (0.3)
Revenue received from non-banking business activities 26.3 31.8
Expenses paid on non-banking business activities (25.5) (33.1)
Insurance premiums received 34.8 8.9
Payments on insurance operations (0.2)
Payments on pension insurance agreements received 2.4
Payments on pension fund operations (0.3)
Other operating income received 10.1 24.8
Operating expenses paid (465.7) (405.6)
Income tax paid (88.4) (98.2)
Cash flows from operating activities before changes in operating assets and liabilities 725.6 640.7
Changes in operating assets and liabilities
Net increase in mandatory cash balances with central banks (34.9) (51.1)
Net decrease in trading securities 70.1 36.1
Net increase in securities designated as at fair value through profit or loss (13.7) (0.4)
Net decrease / (increase) in due from banks 173.2 (224.7)
Net increase in loans and advances to customers (2,615.5) (2,422.0)
Net increase in other assets (175.9) (120.7)
Net increase in due to banks 1,156.6 652.4
Net (decrease) / increase in due to individuals (96.0) 1,438.2
Net increase in due to corporate customers 1,569.4 340.0
Net increase in debt securities in issue 20.9 113.3
Net increase in other liabilities 50.1 13.5
Net cash from operating activities 829.9 415.3
CONSOLIDATED STATEMENT OF CASH FLOWS
Year ended 31 December
in billions of Russian Roubles 2014 2013
Cash flows from investing activities
Purchase of investment securities available-for-sale (717.9) (710.0)
Proceeds from disposal and redemption of investment securities available-for-sale 682.7 541.1
Purchase of investment securities held-to-maturity (6.3) (168.3)
Proceeds from redemption of investment securities held-to-maturity 81.0 107.0
Acquisition of premises and equipment and intangible assets (127.0) (137.4)
Proceeds from disposal of premises and equipment and intangible assets including insurance payments 13.7 17.5
Acquisition of investment property (0.3) (0.2)
Proceeds from disposal of investment property 1.5 0.8
Proceeds from disposal of associates 3.4
Acquisition of subsidiaries net of cash acquired 9.6 (12.1)
Proceeds from disposal of subsidiaries net of cash disposed 1.4 0.6
Dividends received from investment securities available-for-sale 2.0 0.9
Net cash used in investing activities (59.6) (356.7)
Cash flows from financing activities
Other borrowed funds received 182.4 258.6
Redemption of other borrowed funds (388.5) (249.2)
Repayment of interest on other borrowed funds (13.7) (14.1)
Subordinated debt received 238.9 39.5
Redemption of subordinated debt (0.7)
Repayment of interest on subordinated debt (34.5) (24.6)
Funds received from loan participation notes issued or reissued / other bonds issued 106.8 43.9
Redemption of loan participation notes / other bonds issued (36.9) (36.5)
Repayment of interest on loan participation notes / other bonds issued (23.8) (18.7)
Cash received from non-controlling shareholders 1.9
Acquisition of non-controlling interests in subsidiaries (0.3)
Purchase of treasury shares (34.5) (49.2)
Proceeds from disposal of treasury shares 34.9 48.8
Dividends paid (72.0) (58.3)
Net cash used in financing activities (40.9) (58.9)
Effect of exchange rate changes on cash and cash equivalents 254.0 37.5
Effect of hyperinflation on cash and cash equivalents 1.5 (1.0)
Net increase in cash and cash equivalents 984.9 36.2
Cash and cash equivalents as at the beginning of the year 1,327.0 1,290.8
Reclassification of cash and cash equivalents to assets of the disposal group and non-current assets held for sale (3.1)
Cash and cash equivalents as at the end of the year 2,308.8 1,327.0

These summary consolidated financial statements do not contain all the disclosures required by International Financial Reporting Standards (IFRS), namely summary of principal accounting policies and other explanatory information as presented in the audited consolidated financial statements of Sberbank and its subsidiaries (together “the Group”) prepared in accordance with IFRS for the year ended 31 December 2014. For a better understanding of the Group’s financial position, its financial performance and its cash flows, these summary consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Group which these summary consolidated financial statements were derived from.

The copies of the audited consolidated financial statements can be obtained from Sberbank of Russia.

Consolidated financial statements of Sberbank of Russia with independent auditor’s report for the year ended 31 December 2013 is publicly available at the bank’s website: www.sberbank.ru.