History SB of JSC Sberbank

«Sberbank of Russia» - the largest bank of Russia taking 1 place by the size of assets. The «Sberbank of Russia» was created in 1991. The founder and the main shareholder of Bank - the Central bank of the Russian Federation (Bank of Russia). It possesses over 60% of voting shares.

The Sberbank group is the largest bank structure in the territory of the CIS countries and one of the world's largest. Enter it:

• 17 territorial banks and more than 19 thousand divisions across all Russia;

• subsidiary banks in Kazakhstan, Ukraine and Belarus;

• representation in Germany, China and branch in India;

Subsidiary banks in the CIS countries are one of leaders in efficiency of bank activity: their share in cumulative profit of national banking systems considerably surpasses a share in the capital and assets.

The history of Subsidiary Bank of «Sberbank of Russia» Joint-Stock Company in Kazakhstan begins at the end of 2006 when «Sberbank of Russia», the leader of the Russian financial system, the largest financial institution of the Central and Eastern Europe, acquires 99,99% of shares of Teksakabank recognized by bank with the best level of client service according to the National Business magazine.

In 2007 the Bank obtained the license for carrying out the bank and other operations which are carried out by banks in national and foreign currency. The same year authorized capital of Bank was increased almost by 15 times and made 29 billion tenge (more than 240 million dollars) that allowed SB of JSC «Sberbank» to enter into number 10 of the largest banks of the Republic of Kazakhstan by the size of authorized capital.

In 2008 the Bank became the Basic member of the international payment Visa and MasterCard International systems.

The SB of JSC «Sberbank» started cooperating with the large companies of various branches of economy: «Magnum Company» LLC - retail network «Magnum», wholesale and retail trade; Association of the enterprises of the coal industry «Gefes» - the enterprise of the coal industry; JSC «Karaganda Plant of Asbestos-cement Products» - production and processing of cement; «Aktobe Copper Company» LLС - production and processing of copper, «SM Market retail» LLС - a «SM Market» retail network; «Sevkazenergo Petropavlovsk» LLС - the largest energy company of the city of Petropavlovsk.

The most important transactions following the results of 2008 became: conclusion of agreement about cooperation between SB of JSC «Sberbank» and Taldykorgan plant of lead accumulators of «Kaynar» LLC and conclusion of agreement about cooperation between SB of JSC «Sberbank» and one of the largest retailers of Atyrau area by Group of companies "Dana".

In 2009 opening of the first LIN-laboratory which laid the foundation of the big program for introduction of the Production System of Sberbank became one of important events.

The bank took part in the third tranche of the Anti-recessionary Program of the Government of Kazakhstan for crediting of SMB which is carried out together with fund the Damu, having allocated for itself three main priorities – timeliness, the importance and prospects of the credited project.

In September, 2009 the new image advertising campaign "Started money is your work" which main idea is careful attitude to money as a necessary condition of prosperity of each citizen of the country.

The SB of JSC «Sberbank» was among the leading financial institutions of Kazakhstan which signed with the Ministry of the industry and trade of the Republic of Kazakhstan the Memorandum of creation Kazakhstan "Club of Investors and Creditors".

By the decision of Board of the Kazakhstan stock exchange (KASE) the Subsidiary Bank JSC «Sberbank of Russia» (Almaty) was given the status of the market maker of ruble of the Russian Federation.

The SB of JSC «Sberbank» and «Air Astana airline» signed the Cooperation agreement thanks to which there was an opportunity to pay tickets through branches of the bank for all territory of Kazakhstan.

In January, 2010 in the North Kazakhstan area to Petropavlovsk, the twelfth Branch of Sberbank in the territory of Kazakhstan was open. The SB of the Joint-Stock Company The Savings Bank started the production the Visa payment cards with a microchip.

The SB of JSC «Sberbank» concluded the cooperation agreement with «Magnum Company» LLC. Within this agreement of the party intend to develop cooperation in investment financing, in particular, in construction of 2 new shops «Magnum» in Almaty in 2010.

In 2010 February of SB JSC «Sberbank» and «Batys Samal» Group of companies, uniting 18 largest and steadily working enterprises of the West Kazakhstan area which primary activities, production of construction materials and consumer goods, the passenger and cargo transportation, agriculture and mechanical engineering are, concluded the General Agreement on settlement and cash service.

For the first time the international rating agency Fitch Ratings assigned to SB of JSC Sberbank score "BBB -". Thus, the SB of JSC «Sberbank» corresponds to a rating, the second for level, among BSL of Kazakhstan.

The credit portfolio of SB of JSC «Sberbank» exceeded the sum of 100 billion tenge. For the end of the first quarter 2010 the credit portfolio grew by 43,4% in comparison with the similar period of last year and reached a point in 104 987 732 692 tenge, thus growth of a portfolio for the first quarter of the current year made 18,4%.

The SB of JSC «Sberbank» has broad communications with the largest banks of the world, and also an extensive experience of work with the clients and partners occupied in various areas of economy. Today the SB of JSC «Sberbank» has the branch network consisting of 117 structural divisions 16 of which are branches. The central office of Bank is in Almaty. The bank pays close attention to each office opened and operating in any point of Kazakhstan. The major role is played both customer service, and creation of team – amicable and productive.

The highly skilled personnel of Bank is one of its main resources and competitive advantages, and personnel policy – a key element of strategic planning. As of 31.12.2013 the actual number of the personnel of Bank made the 3237th worker, more than a half of them aged till 30 years. Average age of the employees working in Bank – 31 years.

 

1.2. Bank operations provided to SB of JSC «Sberbank»

The bank carries out the following types of bank operations:

• Reception of deposits, opening and maintaining bank accounts of legal entities and individuals

• Opening and maintaining correspondent accounts of banks and organizations

• Opening and maintaining metal accounts of natural and legal entities

• Cash operations: receiving and delivery of cash

• Translated operations

• Registration operations

• Bank loan operations

• Organization of exchange operations with foreign currency

• Collection of banknotes, coins

• Opening and confirmation of the letter of credit

• Issue of bank guarantees

 

1.3. Governing bodies of SB of JSC «Sberbank»

Bodies of bank are:

• the supreme body – General shareholder meeting;

• governing body – Board of directors;

• executive body – Board;

• control body – service of internal audit.

General shareholder meeting is the supreme body of management of Sberbank. At general shareholder meeting decisions on the main questions of activity of bank are made.

Questions of definition of priority activities of bank, appointment of board members and the early termination of their powers, questions of convocation and preparation of General shareholder meetings, recommendations about the size of dividends about actions, periodic hearing of reports of the President, Chairman of the board on activity of bank and other questions are within the competence of Board of directors

The board is collegiate executive body of management. The board discusses previously all questions which are subject to consideration by General shareholder meeting and the Supervisory board of bank, defines policy of bank in the sphere of risk management and other spheres of activity, discusses reports of heads of divisions of central office of bank.

The service of internal audit carries out a preliminary estimate of candidates for auditors of bank, prepares recommendations to board of directors at the choice of audit organization for the statement at general shareholder meeting, develops recommendations about the draft agreement, concluded with the auditor, considers the conclusions of the auditor.

Organizational structure of corporate management of SB of JSC Sberbank (See the appendix 1)

 

Departments of bank

• The department on retail crediting provides realization of policy of bank in the field of crediting of natural persons.

• The department of questions of human resource management provides realization of Strategy of development of bank regarding human resource management.

• The department on processes and technologies provides realization of Strategy of development of bank regarding development of processes and technologies.

• The department on corporate business provides realization of Strategy of development of bank regarding service of corporate clients (the biggest, big, average corporate customers and the enterprises small and microbusiness), etc.

 

1.4. Awards of SB of JSC «Sberbank»

2009 - The Subsidiary Bank JSC «Sberbank of Russia» in Kazakhstan became the winner of the honorable international business award "Bayterek" in the nomination "Capital Partner"

2009 - The SB of JSC «Sberbank» became the winner in the nomination the «Best Bank»

2008 - with foreign participation the Republic of Kazakhstan in 2008 according to the «Delovar» magazine with assistance of National economic chamber «Union Atameken» and Akimat of the city of Almaty.

2010 - The SB of JSC «Sberbank» entered in 50 of the best in «A rating of the companies with the best reputation» (according to researches overview – the analytical magazine Exclusive). The Sberbank took the fourth place in the «Existence of the Recognizable Image» parameter.

2010 - The SB of JSC «Sberbank» became the winner in the nomination the Most dynamic bank on the II Annual forum of large business «Expert 100-Kazakhstan» - For 2009 SB the «Sberbank» increased the assets by 127% that Kazakhstan is the best indicator among banks of Expert RA.

Thus the income of bank grew by 60% that allowed it to move with 70 on 51 places in a rating.

 

2. Analysis of financial results of SB of JSC «Sberbank»

2.1. The analysis of the balance sheet on IFRS (See the appendix 2)

Assets

For 2014 assets of Bank grew by 42% or 305,7 billion tenge, having made for 01.01.2015 1 033 billion tenge.

The credit portfolio for 01.01.2015 made 730,8 billion tenge, having increased in a year by 213,8 billion tenge, or 41,3%. The share of a credit portfolio in total assets of Bank made 70,7%.

Money and their equivalents grew by 46,4%, or 42,9 billion tenge, and made 135,6 billion tenge. The share of money in assets for reporting date made 13,1%.

The portfolio of securities for 2014 grew by 5,4% or 4,9 billion tenge, having made on 01.01.2015. 96,7 billion tenge. Specific weight of securities was lost from 12,6% in 2013% to 9,4% in 2014.

The market share of Bank on assets grew from 5,3% in 2013 to 6,7% in 2014, in a rating of assets the Bank moved from the 6th place on the 5th place.

 

Obligations

Obligations of bank for 2014 increased by 43,3%, or 276,7 billion tenge. The main source of growth there is a deposit portfolio of clients. Within a year the Bank also carried out active attraction in the interbank market. For 2014 means in credit institutions increased by 10,7%, or 11,1 billion having made 115,5 billion tenge. Thus in structure of obligations, the share of these resources decreased from 16,3% in 2013 to 13% in 2014.

Means of clients are the main source of funding of bank with the specific weight of 80% from the volume of obligations.

Means of clients on 01.01.2015 made 733,5 billion tenge, having increased by 45,4%, or 228,9 billion tenge, including:

- on means of corporate clients – for 32,3% or 124,4 billion tenge

- on means of natural persons – for 87,3%, or 104,5 billion tenge.

The share of Bank in the market of client resources increased from 7,3% to 8,0% on corporate clients, from 3,5% to 5,7 on means of natural persons.

As of 01.01.2015 debt securities are submitted by three issues of bonds on KSE nominated in tenge with nominal rates of remuneration of 6,3%-9,0% per annum and a repayment period of 2017-2020. In 2013 the Bank carried out three issues of bonds within the second bonded program with the total par value of 32,9 billion tenge, the total amount of the placed bonds made 62,3 billion tenge.

 

Capital

For 2014 own capital increased by 32,9%, or 29 billion tenge, including for 14,9 billion tenge at the expense of net profit of Bank.

In December, 2014. The bank increased authorized capital by 7,5 billion tenge, having let out additional issue of an action.

The coefficients of sufficiency of the capital calculated according to requirements of FSA exceed the minimum demanded level. During 2013 the Bank observed all established requirements of FSA for standards of sufficiency of own capital.