Sberbank Annual Report on 2016 Performance · Yandex.Money – Runet payment aggregator – e-wallet in Russia Share of Sberbank — 75% minus RUB 1 acquirer in Europe The Nilson

Sberbank Annual Report on 2016 Performance

Herman Gref

2 / 18 2017

10066

2012 2013 2014 2015 2016

Annual General Meeting of Shareholders of Sberbank 26 May 2017

Finance Strategy Digital Business Technologies Sbergile

In 2016 Sberbankearned a recordprofit

Profit/Loss

20.8%24.2%

● 20.8%

●

14.8%

●10.2%

●

20.8%

●

542Net Profit

RUB bn

Return on equity #1 in return on equity amongTOP-50 banks in Europe

#5 in return on equity amongTOP-100 banks in Europe

#47 in profit among the world’s public companies

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25+75+U

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016



Dividends 25%of net profit135.5

RUB bn

RUB

Net profit (IFRS) paid out in dividends Dividend per 1 ordinary share, RUB

per ordinary and preferred share

2.57

3.20

0.45

1.97

6.00

16.9%●

20.0%●

3.5%

●

20.0%●

25.0%● 6.00

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#4

+71%

#21

+77%

1Q 2Q 3Q 4Q

180

160

140

120

100

80



Summing up, in 2016 SberbankSberbank shares

bank in Europe by market cap

equity upside in 2016

bank in the world by market cap

total returns for shareholders

Sberbank’s share price trend in 2016

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1002525

ICBC

China Construction Bank

Bank of China

Sberbank 2016

Agricultural Bank of China

Commonwealth

Sberbank 2015

JPMorgan Chase

Wells Fargo

Citigroup

Bank of America

HSBC2012 2013 2014 2015 2016



The Bank is continuing its program for improving efficiency and cutting operating costs

Efficiency

Cost to Income Ratio (CIR)39.7% Cost to Income Ratio (CIR),

TOP-10 banks in the world

48.7%

●

46.0%

●

43.2%

●

43.7%

●

39.7%

●

33.1%

33.1%

39.6%

39.7%

41.9%

42.3%

43.7%

57.6%

58.5%

59.6%

65.0%

83.0%

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2012 2013 2014 2015 20162012 2013 2014 2015 2016 85+15+ZAnnual General Meeting of Shareholders of Sberbank 26 May 2017


In 2016, Sberbank lent over RUB 10 tn to the Russian economyLending to economy

Loans to corporates, RUB tn9.1 Loans to individuals,

RUB tn1.6

1.5

1.8

2.1

1.3

1.6

5.9

7.38.0

6.8

9.1

10.7RUB tn

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2012 2013 2014 2015 2016

22

135

361

475

342

2014 2015 2016 2014 2015 2016



Quality of Sberbank’s loans is higher than generally in the Russian banking sectorLoan quality

Provisioning expense, RUB bn342 Overdue loans as share of portfolio

Corporates Individuals

Banking system without Sberbank● Sberbank●

1.9% ●

2.4%●

5.5%●

7.8%●

3.1% ●

3.8% ●

7.7% ●

10.8% ●

2.0%● 3.7%

●

7.9%●

10.8%●

-7.1 pp-5.9 pp

-28%

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Subsidiary Banks

Sberbank Europe AG

SB Sberbank JSC(Kazakhstan) BPS-Sberbank Sberbank of Russia Denizbank

9 countries bank #4 bank #3 bank #7 bank #5

Market share 2.5% 6.1% 8.7% 3.7% 4.8%

Net Profit, RUB bn 2.4 1.4 0.3 -7.6 38.0

&

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Активы

2016 2016 2016/2013



Financial performance

Returns and equity Efficiency Growth

The most client focused bank in RussiaWinner of Customer Rights and Service Quality award

IT systems centralization programWinner of international Legacy Transformation award

CIPR Inside award for internal communicationsWinner of the international innovation award organized by Efma & Accenture

With our customer for life

Technological Break-Through

Mature Organization

Best example of employee engagement CIPR Inside award for internal communications

Team and Culture

Return on equity

Tier 1 Capital Adequacy

12.3% >10.0%

Cost/Income

39.7% <40.0%

Cost/Assets

2.6% <2.5%

Net Profit

х1.5 х1.8+

х1.4 х1.8

21% ~18%

Goal of 2018 Strategy Goal of 2018 Strategy Goal of 2018 Strategy /2013

129 Х20retail clients

shortened incident downtimemln

5 of 10best international business schools are partners with Sberbank Corporate University

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+82%

+26%

+19%

+25%

+35%

#1#1

+40%

+5%

+10%

124 37 1

27 36 25



cards

millionusers in Sberbank Online

POS terminals

million million

1.4users of Mobile Bank users of Sberbank

Business Onlineactive users of Autopayments

million million million7.5card-to-card transfers (P2P)

RUB tnparticipants in SberbankSpasibo loyalty program

million

Yandex.Money

– Runet payment aggregator

– e-wallet in Russia

Share ofSberbank —75% minus RUB 1

acquirer in EuropeThe Nilson Report

11 / 18 2017

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Consultants educate clients

near ATMs

Contactless payments by smartphone

Usage of remote channels best in

the country

Paper-free transactions in

branches

Unique payment service

for mobile connectivity

(900 number)

P2P transfers market created

Autopayment: 0 seconds per

transaction

Purchase of real estate simplified

Biometrics-based payments

Over 1 million acquiring terminals

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Fully Cashless City

ZelenodolskRepublic of Tatarstan

Doctor appointment

Shopping in a farmer’s market

Social services

CITIZEN’S CARD

universal tool to manage daily needs of a citizen

Public services

Shopping in stores

Transit fare

Loyalty program

13 / 18 2017

10069Сбербанк Телеком

охранное поле

SBERBANK IRInvestor application



New products of Sberbank

DomClick

SPASIBO from Sberbank - Travel

Active Retirement

Sberbank TelecomEvotor - Evolution of Trade

Sberbank Together

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Comfortable tool for trading sharesSberbank Investor

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&300,000tasks a week are set by the program to management automatically

Intelligent (Smart) Management System

Sberbank received a record number of votes in the history of EFMA & Accenture innovations competition

managers7,000

branches6,000

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95%



Digital technologies have taken risk management to a new level in SberbankRisk management

Risk assessment models

584475

in 2015

SMART-loans for SMEs

15-60 minutes

3-11 days in 2015

Daily

once a year in 2015

Checking transaction exposure limits

for eFX CIB

6 milliseconds

“Loan in 1 day” for small & medium

businesses

7.5 hours

11 days in 2015

Cyberfraud attempts against clients

prevented

69% in 2015

Review of exposure to banks

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DomClick – domclick.ru

Online registration of

the transaction

11 business days

4 trips

1 business day

Filing registration documents

1 business day

Transfer of registration

documents to the bank

Trip to the bank

Trip to the bank

Trip to Multifunctional center

Trip to Multifunctional center

Rosreestr

2 business days

Transfer registration documents

2 business days

Transfer of registration documents

5 business days

Transaction registration

Registration ofthe transaction

at Sberbank

5 business days

1 trip

Bank

Transfer of documentation to Rosreestr – instantly

Notification of completed registration and final

documents attached in email

5 business days Transaction registration

Trip to the bank

Legal review

% of price

Sale ofmortgaged properties

Renovation and furniture

TitleInsurance

Propertyselection

Secure settlements

Electronic registration

Documents for the transaction

Multi-format platform forreal estate transactions

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Moscow, Kutuzovsky Prospekt, 32

Sberbank Office

Agile Team of Sberbank’s Retail Business Block

The most expensive way of payment is time