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Investor Presentaiton

SBERBANK 170 YEARS. BY YOUR SIDE ANNUAL REPORT CORPORATE BUSINESS 2011 A 33 Λ management report 32 CORPORATE DEPOSIT OPERATIONS The focus in 2011 was on generating customer loyalty by improving service quality. A substantial liquidity buffer maintained for the most part of the year allowed the Bank to adopt a more conservative approach to pricing in contrast to its competitors. Consequently, Sberbank's market share in the corporate deposit segment declined from 15.9% to 14.5%. The number of corporate deposits held by the Bank rose from 1.79 mil- lion to 1.84 million over the year. The average daily balance in cor- porate deposits totalled RUB 1,871 billion, up 5.7% on the previous year. Corporate customers kept 62% and 38% of their deposits in cur- rent and savings accounts respectively. In 2011 the Bank introduced fixed public deposit rates for funds invested by corporate clients in fixed term instruments. Corporate customers can enter into a de- posit agreement, including deposits with a fixed minimum balance, on the Bank's website. The number of corporate deposits held by the Bank rose to 1.84 million over the year The Bank offers its corporate deposit products in all regions of Russia. Our market share varies by region depending on economic factors. As of 31 December 2011, Sberbank accounted for 10.6% of the Moscow market and 57.3% of the market in the area served by Baikalsky Bank*, which represented minimum and maximum market shares respectively in the corporate deposit segment among Sberbank's regional banks. As of 31 December 2010, the smallest and largest market shares were recorded in the area served by Severo-Zapadny Bank (11.0%) and in the area served by Baikalsky Bank (44.5%) respectively. CORPORATE BANKING SERVICES Cash and settlement services In 2011 Sberbank launched a Unified Banking Service Agreement, a new product that provides access to banking service packages (currently 10) without the need to execute additional agreements. The terms and conditions are available on Sberbank's website (www.sbrf.ru, www.sberbank.ru, hereinafter, the Bank's website) and are applied uniformly by all branches. * Baikalsky Bank operates in the Zabaikalsky Territory, Irkutsk Region and the Republic of Buryatia. Two new product offerings for holdings and companies with multiple branches are Single Account Balance and our Groupwide Overdraft Facility. One of the individual service proposals we offer is integration into the holding company's accounting system through a common payment gateway to help the holding company centralise cash and settlement services for its subsidiaries and affiliates. We also launched Sberbank Corporation, a centralised IT platform designed to expand the Bank's product offerings for holding companies. The rollout of Sberbank Business Online, a centralised remote service system, was continued in 2011, with over 260,000 customers using the system by the end of the year Intensive efforts to unify service fees for corporate customers resulted in the creation of a unified list of fees for 90 services. The list is uni- formly applied by all of the Bank's branches in each constituent entity of Russia (though in some areas separate fees are established for large cities). This effort helped us considerably improve tariff performance across the Bank and had a positive impact on customer loyalty. The rollout of Sberbank Business Online, a centralised remote service system, was continued in 2011, with over 260,000 customers using the system by the end of the year. Bank of New York Mellon gave Sberbank a Quality Recognition Award for providing high quality payment processing services in US Dollars. Sberbank also received a 2010 STP Award from Commerzbank AG (Germany) in recognition of the excellent quality of payment orders routed through Sberbank's euro correspondent account with Com- merzbank AG in Frankfurt am Main. Two other awards, the 2010 USD STP Excellence Award and the 2010 EUR STP Excellence Award, were given to Sberbank by Deutsche Bank AG for excellence in straight through processing of payments in US Dollars and euros. International economic activities and currency control The total volume of transactions served by Sberbank in 2011 under contracts for the export and import of goods, performance of work, provision of services and transfer of intellectual property between residents and non-residents, and under commission agreements in foreign trade deals between residents, totalled USD 153.7 billion, up 9.2% on the previous year. The Bank opened deal passports for 99,000 foreign trade deals, which were added to its service portfolio. 170 YEARS. IT'S JUST THE BEGINNING WWW.SBERBANK.RU management report
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