1. 30th Efma Convention:
Leadership in retail fi
L d hi i t il finance
13 p.m. & 14 March 2008 - Paris
Andrei Kazmin
Director General
Russian Post

2. Reforming the Russian Banking Sector
g g
and Sberbank’s Role in the Development
of Economy
Andrey I. Kazmin,
I Kazmin,
Chairman of the Board and CEO,
Sberbank
2008
2008 EFMA’s 30th Annual Convention
Paris, March
2

3. Rapid G ow o Russian Economy
p d Growth of uss co o y
34%
2006 GDP growth:
Growth over 3 years Russia and
22%
industrially
y
10% 11% developed
7% 8% 7%
4% 3% 2%
6% 6% countries
2% 2%
Growth, %
62%
Assets/GDP 52%
45%
42% 42% 44%
38% 41%
35% 37%
35%
Banking
B ki assets i
t in 34%
31%
27%
Russia
20 20 20 20 20 20 20
01 02 03 04 05 06 07
(E
) 3

4. Russian Banks: Good Potential for G ow
uss s: oe o Growth
325%
Banking assets /
205%
GDP *)
148%
106% 92% 91%
74%
52%
Ge It a Ja Cz Tu Ka Po Ru 8.9%
r ly pa ec rk z lan ss 8.3%
m n h ey ak d ia 7.9%
an Re hs
y pu ta
b n
lic 6.4%
5.9%
Bank loans / 4.4%
fixed
fi d capital
it l
investments
2001 2002 2003 2004 2005 2006
*) 2006 4

5. Shortage of Capital as Hindrance to
Development
D l t
19,1% 17,0% 16,8%
16,0% 14,9%
14 9%
15,0%
15 0%
Capital adequacy
10%
(Central Bank’s
Standard No. 1)
2003 2004 2005 2006 2007 01.07.07
54%
44% Public
37% offerings by
41% Sberbank and
Banking 27% VTB
36%
capital and 28%
31%
assets growth 16% Capital
Assets
* Estimate 2004 2005 2006 2007* 5

6. Long Funds S o ge
o g u ds Shortage
Trillion RUB
Deposits
10 65%
Loans
Loans in deposits, % 54%
8
42%
6 Changes in the
31%
4
saving behaviour
20%
14%
2
Loans covered by deposits
0
20%
2002 2003 2004 2005 2006 2007 Share of long loans in assets
Share of long deposits in liabilities 17%
15%
15%
9%
Shortage of l
Sh t f long 10%
12%
funds 27% 23%
17%
16%
5%
2% 3% 3% 3%
0%
2004 2005 2006 01.07.2007 6

7. Impacts on the Domestic Banking Sector
US sub-prime mortgage crunch is limiting access to global capital
markets. Banks re-orient towards domestic funding.
Russia’s current
Speculative capital
account balance is
flows out of Russia
Russian impaired
bankingg
Interbank loan
sector Demand for Central
Bank refinancing
rates go up
g p instruments goes up
Funding base and retail deposits
g p Balances of correspondent and
p
growth goes through a stage of deposit accounts with the Central
seasonal slowdown Bank shrink
7

8. Sberbank Today
Sbe b od y
Major Performance Results for 9 Months 2007 *)
)
01 Jan.2007, billion 01 October 2007, Growth over 9mo
Parameter
RUB billion RUB 2007
Net assets 3 574 4 592 28,5%
Book profit 112,8 102,9 22.9%*
Net profit 87,9 81,2 22.4%*
Capital 347 633 82,4%
ROAE 28,6% 20,0%
ROAA 2,9%
, 2,6%
,
*) All figures here and hereafter are by RAR.
* Year on year 8

9. Profit G ow
o Growth
37,2
40
33,9
31,7 27,7
,
27,6
27 6
30
25,9
Billion RUB
20
10
0
Q1 2007 Q2 2007 Q3 2007
Book profit Net profit
1 EUR = 36 62 RUB
36,
9

10. Fundraising
Deposits Breakdown of raised funds
2 435
2 311
2 500 2 148
2 029 Retail deposits
63.2%
63 2%
Billion RUB
2 000
1 500 26.3%
01.01.07 01.04.07 01.07.07 01.10.07
Corporate accounts *
1 062 Corporate funds
1 016 Other
1 100 870 7.4%
%
822
llion RUB
900
Global borrowings
700
3.1%
Bil
500
Q4 2006 Q1 2007 Q2 2007 Q3 2007
* - average daily balance for the quarter 10

11. Corporate Lending
Sector-wise breakdown Loan book 2 578
2 500
2 115
Industry and other 1 999
UB
2 000 1 929
sectors: 55 6%
Billion RU
55.6
Trade: 1 500
23.9%
1 000
01.01.07 01.04.07 01.07.07 01.10.07
1 500 Lending quarter wise
quarter-wise
1 332
Billion RUB 1 111
Transport Construc
R
1 000 917
and Agriculture: tion:
communicat 6,5% 5,9%
ions: 8.1%
500
Q1 2007 Q2 2007 Q3 2007
11

12. Corporate Lending Customer-wise
Corporate loan book Small b i
S ll business loans growth
l th
ion RUB
388
288
Billi
205
146
Large customers Medium 89
46.6%
46 6% 37.7%
37 7%
01.01.04 01.01.05 01.01.06 01.01.07 01.10.07
Small business loans as percentage
of corporate loan book
15.0%
15.5% 14.9% 15.0%
14.5%
13.2%
13 2%
Government 13.5%
12.1%
authorities: 0.7% Small
business 11.5%
01.01.04 01.01.05 01.01.06 01.01.07 01.10.07
12

13. Retail Lending
Retail loan book breakdown Loan book
L b k 867
900
794
800
UB
719
Billion RU
695
Consumer loans: 62.8% 700
600
01.01.07 01.04.07 01.07.07 01.10.07
Mortgage loans as percentage of
27.3% retail loan book
30% 27.3%
22.1%
20% 15.2%
Car loans 13.0%
Mortgage loans 7.6%
Other 4.2% 10%
5.7%
5 7%
0%
01.01.04 01.01.05 01.01.06 01.01.07 01.10.07
13

14. Credit Risk Management
Loan book and percentage of loans Risk level
overdue
2%
6%
3500 1.1%
1.1% 1.1%
1.0%
5.2%
Billion RUB
1%
3000 4%
3 550 3.7% 3.9%
3.5%
3.2% 3.1%
2500 3 077 1% 2%
2 901
2 712
2000 0% 0%
01.01.07 01.04.07 01.07.07 01.10.07 01.01.04 01.01.05 01.01.06 01.01.07 01.07.07 01.10.07
Loans outstanding
Loans overdue / loans outstanding
14

15. Revenues for 9 Months 2007
Revenues
Revenues for 9mos 2007,
RAR
160
2006 2007 134
122 Interest income on
113 lending: 67.6%
120
103
89 91
llion RUB
80
Bil
40
Fees:
0 Securities: 11.4% 18.1%
Q1 Q2 Q3
Other:
2.9%
15

16. Fee Income
Fee i
F income growth
th Fee i
F income breakdown
b kd
30 2006 2007
21.3%
24.9
23.0 32.8%
19.0
19 0 19.7
19 7
20 17.6
llion RUB
14.8 15.4%
2.2%
Bil
10 13.3% 15.0%
0 Retail cashier/payment services
Q1 Q2 Q3 Corporate cashier/payment services
Retail lending
Corporate lending
Bank cards
Other
16

17. Expenses for 9 Months 2007
Expenses
p Expenses breakdown for
p
120 55%
9mos 2007
Deposit
50.3% insurance:
90 50%
Retail d
R t il deposits
it
47.1% 3.6%
interest: 36.7%
Billion RUB
45.2%
60 45%
30 40%
0 35%
Other:
Q1 II квартал Q3
Administrative, 19,2%
Expenses Cost / Income operational, staff: Provisions:
31.9% 8,6%
17

18. Capital, Capital Adequacy Ratio
Capital Capital adequacy
600 20%
19.1% 17.7%
15.9%
16%
UB
11.7%
11 7%
Billion RU
400
12%
602 606 633
8% 10%
200 347
4%
0 0%
01.01.2007 01.04.2007 01.07.2007 01.10.2007 01.01.2007 01.04.2007 01.07.2007 01.10.2007
18

19. Sberbank Market C p
Sbe b e Cap
RTS index
Ordinaries price (RTS)
01.01.07 01.04.07 01.07.07 01.10.07 01.11.07
110 4.3 4.5
45
4.2
100 3.9
SD)
40
4.0
billion US
90
Cap
Ordinari price
3.6
3.4
(USD)
80
ies
3.5
(b
70
60 3.0
01.01.07 01.04.07 01.07.07 01.10.07 01.11.07
Capitalization Ordinaries price (RTS)
Historical prices recalculated per new par value 19

20. Development of the Banking Sector:
What Has to be Done
Wh t H t b D
A i
Actions to raise capitalisation
i i li i
Revise approaches to long funds accumulation and
use
Improve mechanisms for money supply and
I h i f l d
refinancing from the Bank of Russia
Develop stock market and long-term investment
market
20