sberbank analyst day 2018 · 2021. 1. 23. · sberbank analyst day 2018 december 12, 2018. this...

Sberbank Analyst Day

2018

December 12, 2018

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Disclaimer

9.00-09:30 Guests registration, welcome coffee

09.30-10.15 Sberbank Strategy-2020 Update• Ekaterina Latypova, Vice President, Strategy and

Development

10.15-11.00Acquiring & Transactional

Business

• Svetlana Kirsanova, Deputy Chairman of the

Executive Board

11.00-11.20 Ecosystem Development • Mark Zavadskiy, Vice President, Digital Business

Development

11.20-11.40 E-commerce Platform • Maksim Grishakov, CEO, Yandex.Market

12.00-12.20 Coffee break

12.20-13:20Sberbank 2019 Outlook

Discussion

• Nikolay Frolov, Managing Director, Centre for

Macroeconomic Research

• Dzhangir Dzhangirov, Chief Risk Officer

• Alexander Morozov, Deputy Chairman of the

Executive Board, CFO

14.00-15.00 Lunch

15.00-15:30 Agile Home Tour Optional

Please confirm your participation at registration

AG

EN

DA

Ekaterina Latypova Strategy 2020 status

Macroeconomic outlook changed insignificantly

Oil Urals

USD/barrel.,

2019-20

Real GDP

growth, 2019-20USD/RUB,

2019-20

Inflation,

2019-2020

60-65 65-701,4 - 2,0% 4 - 5%

In line with Strategy

2020 outlook

Better than Strategy

2020 outlook

Insignificantly worse than

Strategy 2020 outlook

Worse than Strategy

2020 outlook

5

Key banking markets are expected to accelerate, comparing to Strategy 2020 outlook

Retail Corporate

15-18% 5-7%5-7% 8-11%


2020 outlook

Loans (CAGR 2018-20) Deposits (CAGR 2018-20)

Retail Corporate


2020 outlook


2020 outlook


2020 outlook

6

We maintain the key Strategy 2020 financial target – net income of 1 trln RUB

Profitability

Strategy 2020

target

Net income ~1 trln RUB

Current

status

ROE ~20%

On track

On track

7

Strategy 2020 priorities

The best customer

experience

and ecosystem

Technological

leadership

People with new skills in

effective teams

8

Financial services for retail customers

Financial services for corporate customers

Non-financial services

9

While client flow in braches is decreasing, number of digital users is growing

92,091,7

87,9

87,2

85,6

88,4

2Q18 Oct183Q18

89,4

1Q184Q173Q20171Q17

86,2

2Q17

Jun

57

51

5549

48

52

56

53

Feb Jul

56

57

61

58

52

MayJan AprMar Aug

54

68

Dec

62

52

65

57

Oct

63

Sep

5860

Nov

56

2017 2018

11 mon. 17/18∆-12%

2Q2018

54

1Q2018

53

58

Nov20183Q2018

56

11 mon Jan/Nov∆+16%

Growth of active customer base,

mln people

Client flow in branches, mln people

Digital channels monthly active users (MAU), mln people

Digital channels penetration is growing, mobile app is the key driver of growth

Share of sales through digital channels

~30%23%

Jan 2018 Nov 2018

DAU/MAU, %

31

27

3532

Oct 18Oct 17

Total App

Share of digital sales by products

29%30%

41%39%

Consumer

loan

Deposit

products

Dec 18 (forecast)Dec 17

Strategic initiatives will allow us to remain competitive in the long run

5 Competitiveness Disrupt

Market standards Niche practices

Cu

sto

mer

pen

etr

ati

on

Market novelty

Digitization (Sberbank Online)

“Spasibo” loyalty program

Biometrics

Cashless world

P2P transfers

ecosystem

Government

services

DomClick

Transaction glue

Marketplaces

5

25 ->61 services in digital channels

23% ->~30% sales in digital channels

Chat bot

Investments for mass

segment (PFM)

0% -> 42% clients

identified in the call center

Best card product

(digital card)

Marketplaces

(health)13% -> 20%

mortgages

18 –>64 cities with public

transport card acquiring

Sberbank ID Credit potential

Personalization of customer

service and communication1% ->12% share of real-

time offers

Office 2020

KPIs (beginning of 2018 -> 3Q 2018 or latest available date)XX

Insurance products with

services

◉ “Investments” section in

Sberbank Online

◉ Transfers to other Banks

◉ Opening of broker accounts

◉ Display of broker accounts

◉ Early loan repayment

◉ Statement for visa applications

◉ Transactions history

◉ Government services: Transfer of pension

◉ Government services: Statement from the Pension Fund of Russia

◉ Chat with operator

and chat bot

◉ Removal of mortgage encumbranceе

◉ Conversations in

Sberbank Online

◉ Promotion banners in

Sberbank Online

◉ Display of account details

◉ Credit card loan balance

◉ Optimized work of antivirus

◉ Debit card order

◉ IP-call

◉ Smart search

◉ Auto repayment of credit card loans

◉ Loan application

◉ Credit potential

Customer requests

Sberbank Online: over 25 releases and top 3-4 app in Apple Store …

2018

NEW

NEW

Agents network

~3 000+ agents

~960Consultants + self-

service device

Rural officeSmall rural

office

Mobile bank

office

Auto-shop

Customer

NEW

Cash withdrawal

Payments

Money transfers

Account replenishment

Rural coverage 2020

Banking services ≠ Bank office

… coverage model is also being significantly transformed

Improvement of accessibility from

4 km to 1,7 km (from 60 to 25

minutes by foot)

Growth of accessibility in rural

areas (with 3000+ inhabitants) to

99%

New coverage model

implementation will increase

accessibility without growth in

costs

14

We are successfully increasing our share on the rapidly growing

market of asset management products

The asset management market is growing rapidly…

SOURCE: RA Expert

Asset management market (AuM), trln RUB

Wealth management

Open-end mutual fund

Market share, 3Q 2018

…We are increasing our market share on this market

Change from beginning of 2018

6,4

10,3

2020F2017

Life insurance

30%

19%

37%

CAGR 17%

Pension savings 20%




16

We strive to achieve an almost fully digital interaction with corporate customers

Monthly active users (MAU) of Sberbank Business

Online, thsd. users

Share of priority services online or remotely

Share of sales through online and remote channels

92%35%

2017 2018 (forecast)

13711492

16601813

2Q2018 4Q2018

(forecast)

3Q20181Q2018

4Q2018

(forecast)

38%

2Q2018

35%

37%

1Q2018

36%

3Q2018

17

Strategic initiatives will allow us to remain competitive in the long run

5 Competitiveness Disrupt

Market standards Niche practices

Cu

sto

mer

pen

etr

ati

on

Market novelty

5

KPI (beginning of 2018 -> year end forecast 2018)XX

SberbankBusiness Online(share of sales through remote channels)

Instant Payments

Online account opening and business registration

Instant Loans:- Large and medium businesses – loan in 7 min- Small and micro businesses >50% pre-approved

loans

Banking for self-employed


FX trading/algo hedge

38%

Share of priority services available online

Every 3d card Launch in 2019

92%

Business cards (market share)

Brokerage(Number of accounts)

490 th.

90%

Complex industry-

specific lending

3 minutes

20x7

1 minute

23х7

NEW

35%

35%

257 Escrow accounts

NEW

51%

NEW

NEWLaunched

Unique lending and transaction products

Loan in 7 minutes…

• Credit, premium and moment

business cards were launched

• P2B transfers using business

cards

• Compliance procedures for

business cards (setting of limits)

• Issuance of cards in a branch of

choice (not only in the home

branch where the customer is

primarily served)

Offline• Preliminary calculation using cloud

technology

• Analysis of the customer and loan

decision (neural networks)

Online – 7 minutes• Assessment of credit risks

• Selection of product parameters

• Issuing and signing of credit

documentation

… daily transaction services –

business cards

Launched in August 2018 Every 3d card by Sberbank

19




20

We are developing 3 business models, 2 of which are completely new,

in the basis of Yandex Market

Price comparison Products marketplace Cross-border trade

April 2018 –

deal closure

May 2018 –

beta version

November 2018

– beta version

November 2018 –

country-wide launch

2019 Q2 –

full launch

DAU: >3,0 mln people DAU: >370 thsd people

Your gateway to Russia

>24 000 online stores

>1000 partners on the

platform

>20 000 suppliers

5m+ SKU

Ecosystem for corporate customers

Corporate customer

Banking services

Sberbank business online services

Partial integration(Leads/ advertisement/ products)

Not integrated yet

Business process outsourcing

HR

Lifestyle

Investments

Business Communications

Cash management

Bundles

Business cards

Loans

AccountingOnline accounting, business analytics, accounting outsourcing

Trade supportFiscal data operator, ‘My trade’, Internet shopping processing

Business supportCRM, Microsoft Office 365, ‘Market pulse’

Internet promotion

Settlements and documents

E-Invoicing, invoicing, check of business partners, guarantees , documents constructor, reporting and payments to gov., E-archive

Education

Financial advisor

Business management

Gov. servicesService center

Legal servicesPrivate lawyer 24/7

Marketing

B2С e-COM

Financial products

B2B e-COM

Real estate

Tech. solutionsSberCloud

BUSINESS TRAVEL

Industry specific solutions

Cybersecurity


The best customer

experience

and ecosystem

Technological

leadership


effective teams

23

New

PlatformPlatform

• Digital channels and

bank products safety

• Security Operation

Center

• New threats search

platform

Reliability

and efficiency Security

• Data availability,

uploading, storage

• Internal data capabilities

• Labs launch

• MVP for innovative

products

Data-driven company

and innovations

• Legacy reliability

• Automated system

(AS) centralization

• Digital back office

• Cost per transaction

• Program implementation

(EFS, PPRB, SFD)

• Platform reliability

• T2M reduction

• Architecture function


The best customer

experience

and ecosystem

Technological

leadership


effective teams

25

Our employees are operating at close to their maximum productivity …

2020F2017 2019F2018E

Productivity growth

+21%

+18%+3 pp

Note: growth in productivity as a result of headcount reduction, without accounting for growth of business drivers

Strategy 2020 Current outlook

… while we are creating conditions for comfortable and interesting work

Source: analysis of Employee Engagement Survey

consider their work

interesting

are motivated to work on

tasks beyond their formal

responsibilities70%

80%

We are making work interesting…. … and comfortable

# Comfortable

# Accessible

• Accessible to all employees from any point in the world

24/7

• Accessible from corporate devices

• Recruitment, education, assessment, career development in

1 instrument

• HR instruments available to everyone

• Employee management navigation

Q&AStrategy 2020 status

Svetlana Kirsanova Cashless transformation journey

SBERBANK KEY FACTS

CASHLESS TRANSFORMATION

TOP 2019 PRIORITIES

Q&A

TRANSIT

GOVERNMENT SERVICES

RETAIL | SME

CASHLESS RUSSIA

DIGITAL TRANSFORMATION

6thworld merchant acquirer

1.7 mln POS-terminals

100 % acquiring terminals are contactless

15 mlntransactions in public transport monthly

Sberbank key facts

Source: Sberbank, The Nilson Report

3 days

11th

average card delivery time

world debit card issuer

Every 2nd cashless transaction is contactless

World 1st Visa Digital Card

64 cities are in public transport projectThe best Apple Pay Launch

123 mln debit cards

100 % new card emission is contactless

31

SBERBANK KEY FACTS


TOP 2019 PRIORITIES

Q&A

TRANSIT

GOVERNMENT SERVICES

RETAIL | SME

CASHLESS RUSSIA


18.7 19.8

22.2

25.5

28.5

31.7

35.1 36.7

37.9

40.4

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Retail volume, RUB trln

3% 4% 5%8%

11%14%

18%22%

29%

36%

Share of cashless, %

CASHLESS RUSSIA

Share of cashless retail turnover in Russia grows fast, but still behind global benchmarks

Cashless in retail turnover| Russia Share of cashless retail turnover | Russia vs Benchmark

Source: Federal State Statistics Service, The Central Bank of the Russian Federation Source: Euromonitor, MasterCard Advisors analysis

40 – 80 % 0 – 40 %

o Sweden

o Norway

o Canada

o South Korea

o Finland

o Turkey

o UK

o Israel

o Spain

o Germany

o Russia

o Thailand

o Egypt

o Czech Republic

o UAE

. . . . . . . . .

80 – 100 %

33

3.9 5.0 5.94.2

6.18.2

36.7 37.940.4

2015 2016 2017

Other cashless, RUB trlnSberbank cashless, RUB trlnTotal retail turnover, RUB trln

CASHLESS RUSSIA

Sberbank accelerates cashless growth in Russia

Retail turnover | Russia

Source: Federal State Statistics Service, The Central Bank of the Russian Federation

∆ (17 vs 15)

+ 10 %

+ 51 %

+ 95 %

34

36.7 37.9 40.4

2015 2016 2017 … 2025

Total cashless, RUB trln

Potentinal cashless growth, RUB trln

Total retail turnover, RUB trln

CASHLESS RUSSIA

More to come: RUB 27 trln to reach 70% cashless

Retail turnover | Russia

~ RUB 27 trlncashless volume

forecast

Source: Federal State Statistics Service, The Central Bank of the Russian Federation, Sberbank

22% 29% 36% 36%

34%

35

SBERBANK KEY FACTS


TOP 2019 PRIORITIES

Q&A

TRANSIT

GOVERNMENT SERVICES

RETAIL | SME

CASHLESS RUSSIA



Sberbank boosts cashless behavior by providing tools for individuals and infrastructure for organizations

CASH

Individuals Organizations

Cards

P2P

Digital Products

Loyalty

Wallets

Acquiring

Internet Acquiring

Digital Products

Settlement

Payroll

37

CASH ZONE

Potential to cover RUB 11 trln cash market with cashless solutions

* SME - Small and medium-sized enterprises

Total addressable

market

Card acceptance

Total addressable

market

Card acceptance

1.2 trln

2 trln7.5 trln

Transportation

Retail

School

GovernmentservicesSME*

0.3 trln

38

PUBLIC TRANSPORTATION

Public Transportation

44cities in the world

(exc. Russia)

75

1

1

1

1

1

1

1

2

2

3

4

7

19

Belarus

Canada

France

Kazakhstan

Malaysia

South Africa

USA

Belgium

Italy

Ukraine

Czech Republic

Poland

UK

Russia is the world leader in cashless public transportation with more than 80% projects launched by Sberbank

Source: Sberbank

64

40

Public Transportation

Customer behavior changes after public transportation acquiring launch

KrasnodarPublic transport acquiring launch

Growth of Cashless rate of frequent travelers*| Krasnodar

Russia

* Cashless Rate = POS / (POS+CASH)Frequent travelers – passengers with 25 and more trips

31.3%

46.1%47.3%

51.7%50.4%

52.8%

58.2%

51.4%

54.4% 53.9%55.2%

26.3% 26.9% 27.9% 28.5%27.4%

33.4%

29.6% 30.3% 29.2%30.7% 30.3%

07.2017 08.2017 09.2017 10.2017 11.2017 12.2017 01.2018 02.2018 03.2018 04.2018 05.2018

Share of cashless | Frequent travelers, %

Share of cashless | Average cardholders, %

+ 23.9 p.p.

+ 3.4 p.p.

41

GOVERNMENT SERVICES

Government services | MFC* payments

Source: Sberbank

Successful pilot in Moscow: share of cashless payments reached 30% upon launchAll MFC offices will be equipped with acquiring terminals till the end of 2019

Cash + Fee

Before

Free cashless payments

Now

• Payments available at public terminals only; paid in cash with a fee applied

• Instant cashless payment

* MFC - multifunctional center

• No fee for clients and no need to wait in line for public terminal

43

RETAIL | SME

RETAIL | SME

Micro retail business still predominantly uses cash

The key reason for low acceptance is high merchant discount rate

Total addressable cash market is RUB 11 trln

45

QR PAYMENT | PAPER POS

QR provides benefits to both individuals and organizations

• Lower card acceptance cost as no equipment is needed

• Opportunity to pay by phone without NFC

46

SBERBANK KEY FACTS


TOP 2019 PRIORITIES

Q&A

TRANSIT

GOVERNMENT SERVICES

RETAIL | SME

CASHLESS RUSSIA


Digital Card |No Plastic

World first Visa Digital Card that can be used offline (240k cards issued from oct. 2018)

Plastic card

Before

Card without plastic that lives in your phone

Now

• Online ordering

• Instant issuance in 3 taps

• Pay everywhere without plastic, including offline

• Need to visit the office to pick up

48

Digital Service | Card blocking

Cards blocking process redesigned, 50+ % of blocking now done in digital (nov. 2018)

Office / IVR

Before

3 steps in the app

Now

• Clear guidelines on process steps

• Detailed information at the end of process

• Cost saving for the bank (RUB 150 mln per year)

• Non-transparent process

• Long wait

• No visibility of current status

• Expensive process for the bank

49

Digital Service | Expired card re-issuing

AI selects convenient card delivery branch (cost savings RUB200+ mln)

No choice

Before

AI selects convenient office

Now

• AI calculates probability of the event “client gets the card”

• Deliver the card to the branch where it was issued originally

• AI selects card delivery branch convenient for the client based on his/her behavior

50

SBERBANK KEY FACTS


TOP 2019 PRIORITIES

Q&A

TRANSIT

GOVERNMENT SERVICES

RETAIL | SME

CASHLESS RUSSIA


TOP 2019 priorities

Client experience

Operational experience

Uncommon products

Platform

AI-transformation

Government services

Ecosystem

52

Q&ACashless transformation journey

Mark Zavadskiy Ecosystem development

SBERBANK ECOSYSTEM FOCUSED ON NON-BANKING DIGITAL SYSTEMS

55

3TOP

player

x

x

Industries

Year horizon

4

5

December 2017

E-Real estate

DomClick

B2B Marketplace

Cybersecurity

Telecommunications

Advertising

B2B Services

FinTech

Lifestyle

E-Health

Current directionsIn progress

Future ideas

Identification

Cloud services

IoT

B2B Business Process

Outsourcing

E-Auto

Job Classified

Smart Data

Professional services

Technical support

Logistics

Unified

Communications

B2С E-Commerce

Sberbank Telecom

B2B Business Process

Outsourcing

SBERBANK ECOSYSTEM FOCUSED ON NON-BANKING DIGITAL SYSTEMS

56

E-Real estate

DomClick

B2B Marketplace

Cybersecurity

Telecommunications

Advertising

B2B Services

FinTech

Lifestyle

E-Health

Identification

Cloud services

SberCloud

December 2018

IoT

Logistics

E-Auto

Job Classified

Smart Data

B2C E-commerce

IoT Laboratory

Smart HomeSberMarketing

SberBPO

SberLegal

Loyalty Program Centre

Professional services

Sberbank Service

Technical support

СОВРЕМЕННЫЕ

ТЕХНОЛОГИИ

Current directionsIn progress 3TOP

player

x

x

Industries

Year horizon

4

5

Unified Communications

B2С E-Commerce

FoodPlex

SBERBANK NON-BANKING SUBSIDIARIES

57

CLIENT METRICS

2.5mn MAU

632k medical records per year

Average deposit amount : 18.6bn RUB

450k active paying devices per year

5m+ SKU, Beru, Bringly

CLIENT METRICS

No of car credits granted (1M-11M 2018): 108k

Active users: 85.9k

Proportion of applications in Moscow: 38%

1m MAU in all channelsFoodPlex

DomClick

EVOTOR: PROFESSIONAL SERVICES IN A MOBILE TOOL TO REPLACE OFFICE

58

345kNo of sold online checkout

terminals, 9M 2018 810kNo of online terminals

within Ecosystem, 9M 2018 2.7kNo of developers,

9M 2018 1mNo of online checkout terminals

to be sold, 2020 target

The most functional checkout

terminals for SME

Affordable solutions for large,

middle and small companies

The best Ecosystem for SME

TOP-1 IN SMART TERMINALS CATEGORY

TOP-1 IN FISCAL DATA OPERATOR

SYNERGIES FOR COMPANIES

Various financial services: payment instruments, acquiring,

settlement and cash services, lending, encashment, etc.

Solutions for micro- and SME businesses

Transacting, agency revenue types, revenue sharing model,

selling of services etc.

SBERBPO – LEADER IN ACCOUNTING AND STAFFING OUTSOURCE IN RUSSIA

59

800+ No of clients ,2018 70k+No of clients’ employees

serviced, 2018 30+ Serviced business industries

SberBPO

LEADER IN OUTSOURCINGACCORDING TO RAEX 2017

Large and middle-

sized business

solutions

Accounting and staffing

outsourcing

Legal outsourcing

(standardized services)

Operations

(support an insurance, Telecom

and Factoring subsidiaries )

Complex services

(management accounts etc.)

Accounting outsourcing

SaaS

(online accounting

services and staffing)

Staffing outsourcing

Legal outsourcing

(standardized services)

Micro and small-

sized business

solutions

Realized services with Sberbank

Partner’s services

New services to be realized

750+ No of staff, 2018

343kNo of medical

appointments, 2018 43kNo of doctors in the

database, 2018 1.8m Customer base, 2018 2.8k No of clinics, 2018

DOC.DOC: THE BIGGEST E-HEALTH MARKETPLACE IN RUSSIA

Tourism

Medical

appointmentAppointment

with HITelemedicine Check-ups

Marketplace

Account

Second opinionHealth

insuranceRecord

Recommend

ationWearables

TOP-1 TELEMEDICINE SERVICES PROVIDER IN RUSSIA

C L I E N T S

C L I N I C S

T E L E M E D I C I N E

D I A G N O S T I C C E N T E R

L A B S

D R U G S T O R E S

M E D I C A L C O N C I E R G E

G A D G E T S

O T H E R F I N A N C I A L

I N S T I T U T I O N S

R E T A I L

C O R P O R A T E

W E A L T H M A N A G E M E N T

R E T A I L M A R K E T

C O R P O R A T E M A R K E T

Share of commercial market: 70% in Moscow 40% in Saint-Petersburg

60

FOODPLEX: FORMATION OF A LEADER IN THE DIGITAL LIFESTYLE MARKET

61

15mNo of restaurant

visits per month 140% Growth rate in reservations

made per year

FoodPlex

Leader in business processes

automation for restaurants in

Russia and other CIS countries

Leader among marketing and

loyalty programme platforms for

restaurants

TOP-1 service for table

reservations, restaurant search

and recommendations

Restaurants

Clients

43k

10k

listed restaurants

restaurants available for

reservation

580k

300k

13k

MAU web mobile

MAU web desktop

Reservations made per months

1685

115

restaurants

new restaurants joining

per month

180k

7m

1,6m

20k

MAU

cheques per month

check-ins per month

payments via mobile app per

month

30k

470

55

active restaurants

Number of new restaurants

per month

Market share, %

50%+Annual growth rate

in No of restaurants

ONE OF THE MOST COMPETITIVE OFFERS IN

THE TELECOM INDUSTRY WITH FLEXIBLE

PRICING AND HIGH QUALITY SERVICE

SBERMOBILE

62

85.9No of active users,

2018 221.2RUB/month,

ARPAU ~90%Distributions through

Bank channels, 2018 160Average MBOU per active

user, 2018

SYNERGIES FOR COMPANIES

Automation of the data exchange with the Group

Integration of IP telephony in the mobile application SBBOL

Sending push notifications to improve marketing

efficiency

Joint marketing promotion in online and offline channels

of the Bank

Support for simcomat

IvR in Internet acquiring

Synergy realized

Synergy to be done

SYNERGIES

63

Included in financial and insurance

bundles for retail clients

Integration with the Bank’s Loyalty

Program

BERU - SBERBANK ONLINE DOCDOC

EVOTOR

93% of sim cards have been sold via

banking channels

25% of products have been sold via

corporate channels

Loyalty Program Centre

SBERMOBILE

VISIONLABS SEGMENTO

Face recognition has been

implemented in branches

Improving marketing efficiency

of the Bank, allowing for better

client targeting

B2B-solutions

B2C-solutions(realized via

Sberbank Online)

Maksim Grishakov E-commerce

Yandex Market (JV) Ecosystem and its elements

65

#1 bank in

Russia

Domestic and

cross-border

e-commerce

platforms

Red

Market

In-house and

3rd party

logistics

solutions

Retail logistics

solutions

Value added

services for

merchants

Merchant

support

#1 search

engine in

Russia

Yandex Market

Ecosystem

(YME)Product

inspiration and

evaluation

platform

Parent company

service offering

Core consumer

value proposition

Value added

services

Domestic product inspiration and evaluation

platform, helping customers identify what they

want to buy, and where to buy it

Provides merchants with direct traffic to their

website

Domestic e-commerce marketplace with 1P and

3P sales, along 15 product categories for basket

shopping

Cross-border platform with controlled logistics for

safer deliveries and international branded

products

JV with Yandex.Market

Estimate for FY 2018

LEADING SERVICE FOR PRODUCT SEARCH

AND COMPARISON

160+bn RUB,

GMV

DAU3.0+mn

Launch of the service on the basis of user-

generated content (UGC)

Launch of the offline FMCG pilot

Number of orders growth over 20%

800

450Cross-

border

1,250

>160

2018E

Domestic

~20% of Domestic

e-commerce passes through

the Yandex Market platform

E-commerce market in Russia, RUB trln.

Source: www.akit.ru

666

374

1,040

2017

+20%

Number

of orders20mn

66

JV with Yandex.Market

DOMESTIC MARKETPLACE

Launch of beta testing - May 2018,

end of beta testing – October 2018

Launch of 15 categories of products

Launch of the advertising campaign for Sberbank clients

(Sberbank Online, Text-bank, Spasibo loyalty program)

Establishment of the first regional fulfilment centre in

Rostov-on-Don, allowing for next day delivery (NDD)

introduction in the future

>1000 Partners 370k+ DAU

100k+ SKU

ONE OF THE FASTEST-GROWING

MARKETPLACES IN RUSSIA, GAINING

POPULARITY IN TOP CHARTS

>70%

Apr May Jun Jul Aug Sep Oct Nov Dec

Beru GMV growth

Piloting completed67

Beru!

Beru!

Guaranteed stock of key

products

Multiple safe payment

options

Multiple options for

delivery

2

3

1

4Quality control by

Beru

68

Categories of consumer items on “Beru”

15

Computer hardwareElectronics Appliances Goods for repair Washing and cleaning

Children's goodsHousehold products Goods for cottages Food Beauty and hygiene

Sports and recreationHealth Livestock products Souvenirs Christmas goods

Beru opened its first regional warehouse in Rostov in early December

Regional Rostov warehouse opening to

1. Support next day delivery (NDD)

delivery to Southern Federal District

2. Develop regional logistics capabilities

between Moscow and ‘Southbound’

population centers

3. Leveraging existing warehouse

capabilities and logistics infrastructure

Strategic priorities

Next day delivery

3-4 warehouses to be established

Highly efficient warehouse management

system

Built in-house platform and our

technologies

70

Beru is actively working with Sberbank to lower client acquisition

costs and quickly reach a wide audience

71

Cross-border market is the fastest-growing segment of the Russian e-commerce

~370 RUB

bln

Total value of cross-border e-commerce

market in 2017

~37% CAGRGrowth rate of cross-border market over

2015-2017

250 RUBAverage order value (AOV) for Chinese

platforms

~90% Share of packages, coming from China

~50%Share of cross-border value, coming from

China

~284 mlnNumber of parcels from cross-border

stores, 2017

72

Bringly at a Glance

Over 5 million

products available

for purchasing now

and

20 million by the

end of 2019

Average delivery

lead time 10 days,

average order

value +1000 RUB

Merchants from

China, Turkey,

Korea, India and

Israel.

UK, Germany, US,

France and Italy to

be added in 2019

Unique M2M

(marketplace-2-

marketplace)

partnerships with

Hepsiburada and

N11.

More marketplaces

to come…

73

Development of the marketplace concept for cross-

border trading has been completed

Trading agreements with marketplaces from India,,

Korea, Turkey, etc.

Faster delivery options with warehousing capabilities in

Latvia

goods available 5m+suppliers 20k

CROSS-BORDER PLATFORM, OFFERING HIGH-QUALITY

LOGISTICS SOLUTIONS AND BRANDED MERCHANDISE

7-10 Days, delivery to Moscow

for most orders

Exclusive sets of

best-sellers5 m SKUs already

offered

74

Bringly Global Logistics Network

Logistics Hub

- Dedicated line for registered mail

- Dedicated line for SRM

- Dedicated line for SSRM

Logistics hub

- Dedicated line

express delivery

Bonded Warehouse

Super fast delivery optionLogistics Hub

- Consolidation of

orders

from UK, US and EU

95% delivered

within 15 days95% delivered

within 7 days

95% delivered

within 7 days

95% delivered

within 10 days

Logistics hub

- Dedicated line postal /

express delivery

Logistics Hub

• Dedicated line for SRM

• Dedicated line for SSRM

• Express delivery channel

Fulfilled by Yandex (FBY) -

bonded warehouse solution for

the best selling items.

Warehouse located in Riga,

Latvia

75

Key strategic initiatives and focus for 2019

Further development of cross-

border trade on the Russian market

with a pool of unique products

• Development of 3 main product

categories: Fashion, Electronics,

Beauty and Health.

• Building relationships with key

partners in Europe and the

United States to achieve an

effective model of cross-border

trade

• Improving cross-border

shipping services. Ensuring the

speed of delivery is not more

than 10 days for 95% of

shipments

• Preparing for expansion to the

CIS countries after building up

business processes in Russia

Marketplace Cross-borderСервис сравнения цен

The development of the current

product with a wide range of

options for choosing WHAT to buy

and not just WHERE to buy

• Regional and categorical

expansion

• Restarting Mobile Application

• Development of user

community, development of

UGC, feedback.

• Prepare a basis for future

growth in FMCG and

comparing offline prices

• Exploring offline Product

Comparison opportunities

Develop in-house warehouse order

processing capabilities

• Creating your own contact

center to provide customers with

the best service.

• Building a day-to-day delivery

network in the vicinity of its own

FF centers.

• Development of a network of

own pickup points

Logistics

Development of operating

technologies and investment in low

prices

• Assortment development in 15+

product categories.

• Starting work on the technology

of cross-docking and drop-

shipping

• Creating convenient tools for

Merchants (analytics, price

management)

• Investing in attractive prices

• Creation of a highly scalable

content production factory

76

Q&AEcosystem development

E-commerce

Coffee break20 min

Nikolay Frolov Macroeconomic trends

WHAT TO EXPECT FROM OIL MARKET?

80

SBERBANK EXPECTS $62/BBL IN THE MIDTERMMARKET CONDITIONS

OVERSUPPLY

• Oil supply exceeded consumption first time

since 1Q17

• US oil production is growing fast and now

around 11,7mb/d (+23% YTD)

• OPEC+ will cut production by 1.2 mbd

DEMAND GROWTH MAY SLOW DOWN

• The IMF cut global economic growth forecast

to 3,7% for 2019 (-0,2pp)

• US-China trade war

• Risks for emerging markets growth

0

20

40

60

80

2016 2017 2018 2019 2020 2021

Sberbank Min of Economy

MACROECONOMIC CONDITIONS IMPROVED

81

-3,0

-1,5

0,0

1,5

3,0

4,5

2010 2012 2014 2016 2018 2020

World Russia

ECONOMY IS OUT OF RECESSION

RISKS FALL TO PRE-CRISIS LEVELS, 5-YEAR CDS SPREADCONSUMPTION AND WAGES ARE RECOVERING

CBR POSTPONES MONETARY ACCOMMODATION

Sources: IMF WEO, Rosstat, CBR, Reuters, Sberbank CMR

0

5

10

15

20

0

5

10

15

20

Jan-15 Sep-15 May-16 Jan-17 Sep-17 May-18

Key rate, % Inflation, yoy

-15

-10

-5

0

5

10

15

Q1-2015 Q1-2016 Q1-2017 Q1-2018

Private consumption, yoy Wage growth, yoy 0

100

200

300

400

500

600

700

Jan-14 Sep-14 May-15 Jan-16 Sep-16 May-17

Which Inflation Indicator Matters For the Monetary Policy

82

BANK ACTS WHEN THE INFLATION PRESSURE, NOT THE ANNUAL RATE

Source: Rosstat, Bank of Russia

-2

0

2

4

6

8

10

12

Jan 16 Jul 16 Jan 17 Jul 17 Jan 18 Jul 18

Key rate Actual inflation, %yoy Annualized core, %

CAPITAL OUTFLOWS IN EMERGING MARKET ECONOMIES PUT PRESSURE ON RUSSIA…

83

INTENSIFICATION OF CONCERNS ABOUT EM…

Stock market indexes, January 2018 = 100%

… LED TO CAPITAL OUTFLOWS FROM RUSSIA

Nonresidents’ OFZ holdings

-2%

-12%

80

85

90

95

100

105

110

115

Jan 18 Apr 18 Jul 18 Oct 18

MSCI World MSCI Emerging Markets

0

5

10

15

20

25

30

35

40

0

500

1000

1500

2000

2500

Jan 12 Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 Jan 18

Holdings, bln roubles

Market share, % (rhs)

Source: Thomson Reuters Source: Bank of Russia

… BUT RUSSIA IS RATHER RESILIENT TO EXTERNAL SHOCKS

84

RUSSIA HAS LOW DEBT, GROWING TRADE SURPLUS AND SUFFICIENT RESERVES

Source: World Bank, IMF

EXTENSIVE GROWTH DRIVERS ARE EXHAUSTED

85

0

1

2

3

4

5

6

7

8

9

10

52

54

56

58

60

62

64

66

68

2006 2008 2010 2012 2014 2016 2018

Загрузка мощностей (среднее за 3 месяца), %

Безработица, % (п.ш.)

LACK OF FREE CAPACITY

Capacity utilization (3m SMA)

Unemployment (RHS)

• The unemployment hits record low

• Capacity utilization is close to maximum

55

57

59

61

63

65

67

69

71

73

75

1995 2000 2005 2010 2015 2020 2025 2035

With raising the retirement age

Without raising the retirement age

LABOR FORCE IS SHRINKING

• Number of employed will have decreased by 1,3 mln to 2025

• Labor force participation ratio is 73,4% (OECD average – 71,3%)

NUMBER OF EMPLOYED, mln

“NOW, HERE, YOU SEE, IT TAKES ALL THE RUNNING YOU CAN DO, TO KEEP IN THE SAME PLACE”

86

GDP growth = 1.5% a year

The next time the GDP

will double in 50 years

The next time the GDP

will double in 20 years

ONE GENERATIONTWO GENERATIONS

WITHOUT STRUCTURAL REFORMS

REFORMS + TECHNOLOGICAL BREAKTHROUGH

THE ECONOMY WILL GROW, BUT HOW FAST?

GDP growth = 3.5% a year

OR

FISCAL POLICY TO FOCUS ON ECONOMIC GROWTH

87

17,8 20,1

29,1 27,2

30,423,8

22,7

23,9

5,0

0

20

40

60

80

100

2017 2021

Undetermined

National economy

and human capital

Social policy

National defense and

security

Others

-1,1

-3,4 -3,6

-1,5

1,9 1,6

1,00,7

-6

-5

-4

-3

-2

-1

0

1

2

3

2014 2015 2016 2017 2018 2019 2020 2021

EXPENDITURES ARE NOT GROWING

• Spendings are planned to be around 34.5% GDP

BUDGET IS PLANNED TO BE IN SURPLUS

General government fiscal balance, %GDP

BUT: SPENDINGS ARE TO BE MORE GROWTH-FOCUSED

Government expenditure structure, %

GOVERNMENT PROCLAIMS INVESTMENT INCREASE

• “Undetermined” spendings could be spent on

economic growth support

BASELINE SCENARIO: OIL PRICES WILL BE AT $62/BBL

88

ASSUMPTIONS INVESTMENT – DRIVER OF ECONOMIC GROWTH

2,54,1

4,84

4

7,8 7,87,5

76,8

2017 2018 2019 2020 2021

CPI inflation, % Key rate (r.s.), %

14

65,4

18 13 20

58,462,9 68,5 69,0 69,5

2017 2018 2019 2020 2021

Capital outflows, USD bln Exchange rate (rub/usd)

CBR WILL CUT THE KEY RATECAPITAL OUTFLOWS WILL STABILIZE

• Oil prices: $62

• VAT rate increases from 18% to 20%

• Raising the retirement age

• Public investment growth

• Relaunch of foreign currency purchases in the

1Q and deferred purchases in the 2Q 2019

1,5 1,6 1,42 2,2

4,3

1,62,6

3,5 3,6

2017 2018 2019 2020 2021

Real GDP growth, % Investment (r.s), %

Growth Structure by Industries, 2019

89

GROWTH DRIVERS AND LAGGARDS GROWTH DRIVERS IN MANUFACTURING

-3 -2 -1 0 1 2 3

Manufacturing

Construction

Mining

Transportation

Healthcare

Education

Public administration & Defence

Culture

%, YoY

Textile industry

Chemical industry

Metallurgy

Mechanical engineering

Dzhangir Dzhangirov Risk Management

SBERBANK GROUP LOAN PORTFOLIO AS OF October 1, 2018 (IFRS)

%

STAGE3+POCI

%

COR (%)

%

8.4% 1.2%

Sberbank of Russia

KEY RISK METRICS FOR

THE GROUP

GROUP LOAN PORTFOLIO STRUCTURE

90.8%

SBE

3.2%

CIS SB*

3.0%

Other

3.0%

* Subs CIS = Kazakhstan + Belarus + Ukraine91

2.4%1.9%

3.4%

2.1% 2.3% 2.3%

01.01.14 01.01.15 01.01.16 01.01.17 01.01.18 01.11.18

-1.1 pp

6,527

7,887 7,768 7,358

7,863 8,643

2,029

3,787 4,502

3,985 3,909 4,265

2 029 2 226 2 068 2 228 2 283 2 230

01.01.14 01.01.15 01.01.16 01.01.17 01.01.18 01.11.18

RUB

FX

FX rebased

SBERBANK: CORPORATE LOAN PORTFOLIO KEY QUALITY TRENDS (RAS)

92

CORPORATE LOAN PORTFOLIO, SBERBANK, RAS

RUB bn

SHARE OF NPL90+ ON BALANCE

THE SHARE OF DEFAULTS AND RESTRUCTURED LOANS

2.3%3.0%

8.8%7.6%

7.2% 7.5%6.7% 6.4%

4.8% 5.0%

01.01.14 01.01.15 01.01.16 01.01.17 01.01.18 01.11.18

Share of defaults

Share of restructured

defaults

+5.8 pp

Drivers: Oil&gas

Real estate

Metallurgy

PORTFOLIO STRUCTURE BY INDUSTRIES

RUB12,908 bn

Metallurgy

&mining

Oil&gas

Real estate

13%

12%

12%

9%8%7%

6%

6%

6%

5%4%

4%4%4%

Trade

AgroMachinery

Utilities&telecom

Energy

Construction

Transport

Other

Financing&

leasing

Chemical

State&municipal

SME LENDING TRENDS (SBERBANK STANDALONE, RAS)

93

SME

Large corporates

CIB

• .

Portfolio and NPL90+ breakdown

12 908RUB bn

Portfolio, RUB trln

1,41 1,491,26 1,16

1,381,65

01.01.14 01.01.15 01.01.16 01.01.17 01.01.18 01.11.18

+31.1%

NPL90+,%

8,6% 8,6%

12,1% 11,4%

8,6%6,6%

01.01.14 01.01.15 01.01.16 01.01.17 01.01.18 01.11.18

-5.5 pp1,2%

X,X

%- NPL90+ Ratio

3,1%

6,6%

• SME SEGMENT:

• 13% OF CORPORATE PORTFOLIO

• ~90% BY NUMBER OF LOAN AGREEMENTS

• SME LENDING DRIVEN BY NEW TECHNOLOGIES TO IMPROVE ASSET QUALITY

01/07/18

5,594

01/11/18

6,103

3.22% 3.12%

SBERBANK: RETAIL LOAN PORTFOLIO – 41% OF THE MARKET (RAS)

Banking sector without

Sberbank8.3%

Sberbank (RAS)3.1%

NPL90+ SHARE. SBERBANK VS BANKING

SECTOR

as of 1 October 2018

2.7

LEVEL OF NPL90+

on balance

PORTFOLIO

RUB bln

94

0,0%

0,4%

0,8%

1,2%

1,6%

Jan

2016

Jul

2016

Jan

2017

Jul

2017Mortgages Consumer loans Total

Stable quality of the Mortgage Portfolio even as

LTV grows

66,1%

71,7% 74,1%

30%

50%

70%

90%

2016 2017 October 2018

14,8%13,6%

19,2%

46,6%

44,4%45,3%

30%

35%

40%

45%

50%

10%

15%

20%

25%

30%

2016 2017 October 2018

Incoming PTI (left axis) PTI in loans (right axes)

Risks in segments with meaningful debt burden

are managed by risk strategy

0,0%

0,2%

0,4%

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17

1. LTV up to 75%, incl. 2. LTV 75%-80% (incl.) 3. LTV 80%+

NPL90+ @ 12mobNPL90+ @ 12mob

SBERBANK: RETAIL RISK STRATEGY MANAGEMENT (RAS)

VINTAGE ANALYSIS BY PRODUCTS

Mortage and consumer loans

VINTAGE ANALYSIS BY LTV SEGMENTS

Mortgage loans

vintagesvintages

vintages

vintages

95

The collection indicators have been improving for the past 3 years

89.41%

92.39% 91.88%92.62%

93.95%

97.72% 98.06% 98.13% 98.07%

85%

90%

95%

100%

Jan 16 Jan 17 Jan 18 Apr 18 Sep.18

1–30 1–180

2.54% 2.42% 2.29%

1.87%

0.66%0.70% 0.65% 0.67%

2.08%

1.71%1.55% 1.43%

November 1, 15, 4:54:4 p.m. November 1, 16, 4:54:4 p.m. November 1, 17, 4:54:4 p.m. November 1, 18, 4:54:4 p.m.

Consumer loans Mortgages Credit cards

Portfolio risk is sustained at a low level

Loan quality indicators are stable

MORTGAGE LOANS CONSUMER LOANS CREDIT CARDS

0,0%

0,5%

1,0%

1,5%

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3

2013 2014 2015 2016 2017 2018

30+@2 mob 90+@12 mob 90+@36 mob

0%

2%

4%

6%

8%

10%

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3

2013 2014 2015 2016 2017 2018

30+@2 mob 90+@6 mob

90+@12 mob 90+@24 mob

0%

2%

4%

6%

8%

10%

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3

2013 2014 2015 2016 2017 2018

30+@2 mob 90+@6 mob 90+@12 mob

SBERBANK: MAIN RISK QUALITY METRICS OF NEW LOAN ISSUANCES &RETAIL LOAN PORT. (RAS)

EL POINT-IN-TIMEExpected losses for the portfolio by the end of the period in one year

ACCUMULATED COLLECTION by vintages of 1+ overdue loans on the horizons of 1-30, 1-180

vintages vintages vintages

vintage

96

– use of provisions + change of fair value

PORTFOLIO DYNAMICS BY STAGES, PROVISION RATE & COR 12М 2018 + 2019 FORECAST (IFRS)

97

LOAN PORTFOLIO BY STAGES COR FOR 12 MONTHS 2018 + forecast for 2019

1

1

CHANGE OF THE SHARE OF STAGES IN PORTFOLIO PROVISION RATE CHANGE BY STAGES IN THE PORTFOLIO

RUB trillion

2—the provision amount is calculated for each stage

2

12М’19

forecast

Common

COR

~1.3%

1.6% 1.4% 1.2%7.4% 7.6% 7.3%

63.6%68.7% 69.7%

01.04.2018 01.07.2018 01.10.2018

Stage 1 Stage 2 Stage 3+ POCI

81.3% 80.8% 80.0%

9.3% 10.8% 11.6%9.4%8.4% 8.4%

01.04.2018 01.07.2018 01.10.2018

Stage 1 Stage 2 Stage 3+ POCI

0.4%

1.1%1.4% ~1.5%

0.5%1.0% 1.2% ~1.3%

0.8%

0.8% 0.9% 0.9%

3M'18 6M'18 9M'18 12M'18

forecastCorporate(АС+FV)

Total

Retail

1.7 1.6 1.61.6 2.0 2.3

14.3 15.2 15.5

17.6 18.8 19.4

01.04.2018 01.07.2018 01.10.2018

Stage 1

Stage 2

Stage

3+POCI

RWA DENSITY OF THE GROUP HAS BEEN SUBSTANTIALLY DECREASING IN 2018 (IFRS)

98

108.6%

104.6%

102.6%

RWA TO ASSETS RATIO

IFRS, %

Standardized approach IRB

-2.0 p.p.

-6.0 p.p.

WE WILL CONTINUE TO IMPROVE THE RWA DENSITY BY:

• IMPROVING IRB MODELS

• EXPANDING IRB PERIMETER

• STREAMLINING PORTFOLIO STRUCTURE USING RORWA

-6.8

p.p.

101.3%

97.5%

95.6%

Standardized approach IRB

-1.9 p.p.

-5.7 p.p.

RWA DENSITY AND 2019YE FORECAST

IFRS, %

FORECAST

94.5%

2019YE

CB

FI

TECHNOLOGY TRANSFORMATION OF CORP. BUSINESS and FIN. INSTITUTIONS CREDIT PROCESS

2016

2018

Working with

the client

Verification Analysis Due diligence Risk

expertise

Decision

makingClose

the deal

>20days

ONLINEapplication

Riskexpertise

Risktools Close

the dealOn-line risk estimate

ON-LINEmonitoringof the news flow

Evolution ofof models

DigitalAnti-fraud

DigitalCash Flow

EvergreenLimits

RoboticProcess

automation

Digitallimitmonitoring

ON-LINELimits

ON-LINE LIMITS FOR BANKSDECISION < 1 MINUTE

DECISION MAKING IN LESS THAN 1 HOUR FOR 65% OF THE CUSTOMERS

DECISIONS MADE WITHOUT HUMAN

INTERVENTION99

TECHNOLOGICAL TRANSFORMATION OF RETAIL CREDIT PROCESS

Verification Risk

expertise

Decision

making

Signing

the contract

2016

2018

Data

analysis

Disbursement without visiting a branch

0 fieldsCredit

potential

Real Time Decision

New modelswith risk-adjusted return

Application

152 fields

Visiting

branch

Application

0 fields

Automated

decision making

Disbursement

of a loan

Saving time for our clients

automatic form filling

approving a loan in 5 minutes

70%of decisions

are human-free

~2days

<10 minutes

Disbursement

of a loan

100

New sources for building models

New methodsand tools for modeling

Neuralnetworks

Cash flowmodeling XGBoost

Classifier

Graphanalytics

Transaction data in the Bank

EVOLUTION OF MODELS — Application of AI algorithms

Open internetdata

Operators of fiscal data

Info part of CHB

History of relations with the Bank

Aggregatorsof fin.reports

Increasing models’ precision

Saving clients’ time on document collection

Quick response to negative information

101

From minimizing risk to maximizing value

Maximizing NPV of retail portfoliowithin set risk appetite levelconsidering clients sensitivity

CBLNew strategy for setting a limit

Higher loan issuances thanks to increasingclients’ satisfaction within set limits

Risk-adjusted

return

New approval strategy considering maximizing NPV for a loan application

Higher margin thanks to lending in high-returnsegments

VBP New strategy for setting the % rate

Higher loan issuances and higher marginthanks to customer retention by offeringbetter % rate

102

Evolution of CF modeling and stress-testing

models for large and medium size segments

models for largest clients

Working with Excel models of different types generates potential

models

Infrastructure with 40 projectedservers

of automated quality checks for CF models

(machine learning)

stress-testing of CF models

for portfolio testing (stress PD)sensitivity analysis

models uploaded

to complete a basic individual stress-

test

sensitivity analysis

Portfolio analysis covers the entire unit

2017Excel models contain a big array of valuable information which

2018

103

WORKFLOW system

NEWS

FEED

NEWS PROVIDER

(Russian-language)

DATABASE

News feed import MONITORING AUTOMATED

SYSTEM

Selection of relevantnews for monitoring

Rating for counterparty,

limits

SEMANTIC

MODELS

Event

Romashka ltd.

Person V. Ivanov

Organization

Position Shareholder

Criminal prosecution

Risk manager notesimportant news,alerts

Quality-related factors are filled out automatically,

risk factors and alerts for counterparties are

identified

ONLINE MONITORING OF COUNTERPARTIES AFTER AUTOMATION

104

Alexander Morozov Banking sector trends

Financial Plan 2019

Sberbank Guidance 2018 – on track

106

EFFICIENCY Cost to income Ratio (CIR)

PROFITABILITY

NIM (average)

Net Fees & Commissions Growth

Cost of Risk

ROE

CAPITAL CET 1 CAR under Basel 3 for the Group

2018 Guidance

Below 35%

Over 5.5%

High-teens

Around 130 bps*

Over 20%

Over 11.5%

*Subject to FX volatility

Sberbank key metrics as of 3Q 2018

107

Assets 30.1%

Corporate loans 32.8%

Retail loans 41.4%

Mortgages 55.8%

Credit card balances 45.2%

Corporate deposits 24.1%

Retail deposits 44.6%

Utility payments 55.7%

Internet acquiring 32.6%

Pension distribution 62.3%

90 mln active retail clients

in Russia, including

2.4 mln active corporate

clients in Russia, including

43 mln payroll clients and

pensioners

62.4 mln active “Sberbank

Online” and text banking users

1.7 mln active users of

Sberbank Business Online

digital platform

17 mln Sberbank Online DAU

56 mln Sberbank Online MAU

2.1 mln SME clients

Banking sector trends

Corporate loans Retail loans

160

170

180

190

200

210

220

18 000

20 000

22 000

24 000

26 000

28 000

30 000

1.01.14 1.07.14 1.01.15 1.07.15 1.01.16 1.07.16 1.01.17 1.07.17 1.01.18 1.07.18

RUB, bn $, bn

RUB-denominated

FX-denominated

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18

RUB, bn

Mortgage loans

Other retail loans

Retail and ruble-denominated corporate lending driving growth

Russian sector data Russian sector data

109

Stabilizing asset quality while ruble-denominated corporate loans recover slower

Asset quality of corporate loans Asset quality of retail loans

0%

2%

4%

6%

8%

10%

12%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Ruble loans overdue

FX loans overdue

0%

2%

4%

6%

8%

10%

12%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

NPL 90+, %

Overdue 1D+ ratio, %

Russian sector data Russian sector data

110

Funding mix in line with FX asset dynamics

Corporate funds Retail funds

150

160

170

180

190

200

210

10 000

12 000

14 000

16 000

18 000

20 000

22 000

RUB, bn. $, bn

80

82

84

86

88

90

92

94

96

98

100

12 000

13 000

14 000

15 000

16 000

17 000

18 000

19 000

20 000

21 000

22 000

1.01.14 1.07.14 1.01.15 1.07.15 1.01.16 1.07.16 1.01.17 1.07.17 1.01.18 1.07.18

RUB, bn $, bn

FX-denominated

RUB-denominated

FX-denominated

RUB-denominated

Russian sector dataRussian sector data

111

The banking system maintain currency liquidity through proactive

reduction of FX loan portfolio

Changes in FX liquidity as a result of operations with

clients in the previous 12 months

- 40

- 30

- 20

- 10

0

10

20

1.01.14 1.07.14 1.01.15 1.07.15 1.01.16 1.07.16 1.01.17 1.07.17 1.01.18 1.07.18 75%

80%

85%

90%

95%

100%

FX LDR*

Russian sector dataRussian sector data

112

The default rate of banks remains at

about 10% per year for the fifth year

15,0

%

3,3

%

6,7

%

6,7

%

6,7

%

10,0

%

14,0

%

7,3

%

8,0

%

7,9

%

9,7

%

12,7

%

18,0

%

9,0

%

14,7

%

13,3

%

14,1

%

15,0

%

12,2

%

7,0

%

11,0%

13,0% 13,9%

9,5%

11,5%

2014 2015 2016 2017 2018

1-20 21-50

51-200 201-500

500+ Total default rate

46%39%

52% 51% 50%

67%

148%

72%102% 67%

-150%

-100%

-50%

0%

50%

100%

150%

200%

-1200

-800

-400

0

400

800

1200

1600

2014 2015 2016 2017 10М18

Pre-tax Income of profitable banks

Incl. Sberbank Pre-tax Income

Loss of loss-making banks

Sberbank share in Income of profitable banks, % (RS)

Sberbank share in Income of all banks, % (RS)

RUB bn

Profitability of the Russian banking system increases

113

Russian banking sector growth in 2019

114

CORPORATE LOANS

+5-7 %

RETAIL LOANS

+15-18 %

CORPORATE DEPOSITS

+8-11 %

RETAIL DEPOSITS

+5-7 %

SB

ER

BA

NK

SEC

TO

R

In line with

the sector

Slightly better

than the sector

Slightly better

than the sector

In line with

the sector

Financial Plan 2019

Financial plan 2019

116

ROE

Net Income

growth

Equity

growth

Net Interest Income growth

Net F&C Income growth

Cost of Risk

Cost to Income Ratio

Loan growth portfolio

Net Interest Margin, average

Clients funds growth

20%+

10%+

10%+

Around 10%

>15%

>5.5%

Around 130 bps

-50-100 bps

Around 10%

6-9%

Operations with bank cards

>20%

Brokerage

>60%

Corporate payments and

settlement transactions

>20%

Sberbank guidance 2019

117

EFFICIENCY Cost to income Ratio (CIR)

PROFITABILITY

NIM (average)

Net Fees & Commission Income Growth

Cost of Risk

ROE

CAPITAL CET 1 CAR under Basel 3 for the Group

2019 Guidance

-50-100 bps yoy

Over 5.5%

Mid-teens

Around 130 bps*

Over 20%

Over 12.5%

2018 Guidance

Below 35%

Over 5.5%

High-teens

Around 130 bps*

Over 20%

Over 11.5%

*Subject to FX volatility

“Obstacles are those frightful

things you see when you take

your eyes off your goal”

Henry Ford

Q&AMacroeconomic trends

Risk management

Financial Plan 2019

sberbank analyst day 2018 · 2021. 1. 23. · sberbank analyst day 2018 december 12, 2018. this...

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