Investor Presentaiton
SBERBANK
170 YEARS. BY YOUR SIDE
ANNUAL REPORT
RETAIL BUSINESS
2011
A
management report
24
OTHER RETAIL BANKING SERVICES
Cash and settlement services
Cash and settlement services remain the most significant service
line in terms of transaction volume and income from fees and com-
mission. In 2011, commission income on retail cash and settlement
services amounted to RUB 41.5 billion or 27.3% of total income from
fees and commission.
Processing payments from individuals is the service that accounts
for the bulk of the Bank's business. The aggregate volume of pay-
ments processed in 2011 was more than RUB 1.8 trillion, with the
total number of payments approaching 1 billion. Payment's volume
growth was driven by improvements in billing technologies and the
expansion of self-service and online banking channels. Payments
made using billing technologies accounted for more than 74% of total
payments processed by the Bank.
In 2011 the Bank launched its Auto-Payment service, which allows
customers to automatically top up their mobile phone accounts di-
rectly from their bank card accounts. By the end of the year, a total
of 1.1 million people were taking advantage of this service.
Sberbank continued to grow its share in the highly competitive
money transfer market. The number of transfer orders amounted
to around 25 million and the total volume of such orders was more
than RUB 750 billion.
BLITZ express international money transfers between Sberbank divi-
sions in Russia and subsidiary branches in Kazakhstan, Ukraine and
Belarus are gaining popularity, with the number of transfers exceed-
ing 340,000 in 2011. Additionally, more than 8,200 Sberbank outlets
provide express money transfer services through the international
MoneyGram system. In 2011, the Bank processed a total of 150,000
transfer orders for USD 119 million.
Sberbank successfully competed with other banks in payroll and
pension-related bank account transfers. The Bank maintains payroll
accounts for over 50% of Russia's workforce. 95% of people who re-
ceive pensions from national security, defence and law enforcement
agencies do so through a Sberbank account. 46% of social pensioners
receive their pensions through Sberbank. Throughout 2011, the num-
ber of people receiving their salaries and pensions through Sberbank
rose from 43 million to 48 million.
In thousands
Bank cards
Bank cards are the second largest business generating fee and com-
mission income of RUB 35.1 billion or 23.1% of total fee and com-
mission income earned in 2011. The rapid growth of this business
helped extend Sberbank's lead over its competitors.
Number of active cards
Including credit cards
Number of ATMs
Number of active retailers and service providers using the Bank's
acquiring service
2011
2010
Change, %
68,626
51,390
33.5
4,327
1,927
124.5
34.5
27.9
23.7
137.0
100.2
36.7
In terms of the number of cards issued, Sberbank remains the absolute
leader not just in Russia but in the whole of Europe. The Bank also
became Russia's largest credit card lender in 2011.
In 2011, Sberbank successfully completed a number of major initiatives
in this area, including issuing the first ever 3D card in Russia, virtual
cards for secure online banking, individually designed cards based
on an image created by our customers or selected from our existing
image gallery, cards that can be issued instantly and cards that can
be used as metro passes. In celebration of the Bank's 170th anni-
versary, we launched Thank You from Sberbank, a customer loyalty
programme that allowed cardholders to earn bonus points on each
purchase they make using their Sberbank card. These bonus points
could then be used to pay for goods and services in participating stores.
Insurance products
Sale of insurance programmes played a prominent role in boosting
income from fees and commission in 2011. The Bank earned RUB 14
billion from insurance programmes in 2011, which represented 9.2%
of total fee and commission income.
2011 saw continued growth in our insurance business, propelled
by the expansion of existing programmes and the launch of new
products. Corporate Insurance, a programme focused on individual
entrepreneurs and corporate customers, was introduced across the
Bank's branch network. The Bank rolled out its voluntary life insur-
ance and health insurance programmes to cover mortgage borrowers.
Clients can now buy travel insurance, accident and illness insurance
and card fraud insurance policies at each retail branch.
170 YEARS. IT'S JUST THE BEGINNING
WWW.SBERBANK.RU
25
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