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Investor Presentaiton

SBERBANK 170 YEARS. BY YOUR SIDE Net interest income The Group's net interest income was RUB 561.0 billion in 2011, up 17.1% from 2010. Return on assets, cost of liabilities and interest spread and margin for 2010 and 2011 are presented in the table below. SPREAD DYNAMICS ANNUAL REPORT GROUP IFRS INCOME STATEMENT 2011 % 11.8 10.5 10.2 9.9 9.9 9.5 9.6 9.7 RUB million 2011 2010 Average for the year Interest income/ (interest Average return/ cost, % Average for the year Interest Average income/ return/ (interest cost, % expense) expense) 6.8 Total interest-earning assets 8,806,778 850,624 9.7 7,532,447 795,646 10.6 5.7 6.1 6.2 6.4 5.9 5.6 5.0 5.1 Total interest-bearing liabilities 7,968,249 289,598 3.6 6,702,232 316,543 4.7 4.1 3.9 3.7 4.8 4.8 3.5 3.5 Net interest income Net interest spread Net interest margin 561,026 6.1 6.4 479,103 Q1 5.9 2010 Q2 2010 Q3 Q4 Q1 Q2 Q3 Q4 2010 2010 2011 2011 2011 2011 6.4 80 O Spread A Factors that affected margin in 2011 and 2010 are presented below. financial results % 2011 2010 Prior year margin 6.37 7.61 Return on corporate loans -1.08 -1.28 Return on retail loans -0.02 0.03 Return on amounts due from other banks -0.02 0.01 Return on securities 0.00 -0.44 Structure of interest-earning assets 0.22 -0.42 O Return on interest-earing assets O Cost on interest-bearing assets Interest spread* grew 20 b.p. to 6.1% in 2011, which is due to increased amounts of interest-earning assets and the reduced cost of interest- bearing liabilities.The table below presents an analysis of changes in interest income and expense for 2011 versus 2010 by looking at the following factors: Changes in average annual balances of items recorded in the Statement of Financial Position; Changes in average interest rates. Cost of amounts due to corporate customers 0.08 0.32 RUB million Volume factor Interest rate factor Change in interest income/expense Cost of amounts due to individuals Cost of amounts due to other banks Cost of securities in issue and subordinated debt 0.83 0.25 ASSETS -0.03 0.07 Loans and advances to customers 138,334 0.11 0.07 Debt securities available for sale (15,443) (78,548) (352) 59,786 (15,795) Structure of interest-bearing liabilities Interest-earning assets to interest-bearing liabilities* Reporting year margin Interest margin remained stable at 6.4% in 2011. -0.03 0.01 -0.06 0.14 Due from other banks, including correspondent accounts and overnight deposits with other banks 651 (1,742) (1,091) 6.37 6.37 Debt investment securities held to maturity 15,604 2,094 17,698 Other debt securities designated at fair value through profit or loss (1,934) (218) (2,152) Debt trading securities (1,343) (2,125) (3,468) Change in interest income 135,869 (80,891) 54,978 170 YEARS. IT'S JUST THE BEGINNING WWW.SBERBANK.RU * Interest spread is the difference between the return on interest- earning assets and the cost of interest-bearing liabilities. 81 Λ financial results
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