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Investor Presentaiton

SBERBANK 170 YEARS. BY YOUR SIDE ANNUAL REPORT GROUP IFRS INCOME STATEMENT 2011 NET FEE AND COMMISSION INCOME Agency agreements RUB million Volume factor Interest rate factor Change in interest income/expense RUB million 2011 2010 Change, % LIABILITIES Fee and commission income 151,876 130,949 16.0 Due to individuals (38,971) 60,708 21,737 Cash and settlement transactions with legal entities 42,500 40,623 4.6 Due to corporate customers (3,768) 6,024 2,256 Cash and settlement transactions with individuals 41,476 41,845 (0.9) Subordinated debt 5,023 3,684 8,707 Operations with bank cards 35,084 23,639 48.4 Other borrowed funds (2,226) (360) (2,586) 13,973 9,448 47.9 Debt securities in issue Due to other banks Change in interest expense (2,179) 2,777 598 6,551 5,858 11.8 (1,870) (1,897) (3,767) 4,733 4,445 6.5 (43,991) 70,936 26,945 4,364 2,717 60.6 CHANGE IN NET INTEREST INCOME 82 Λ 91,878 (9,955) 81,923 1,120 1,116 0.4 2,075 1,258 64.9 83 (11,242) (7,375) 52.4 A 140,634 123,574 13.8 financial results As evident from the table above, the dynamics of net interest income was driven by four major factors: Higher lending volumes, the impact of which was partially offset by lower returns on loan portfolio in 2011 as compared with 2010. - The steadily decreasing cost of retail deposits throughout 2010 and 2011 as a result of the repayment of long-term deposits with high interest rates, which had been raised during the financial crisis. Significantly increased interest income on securities held to ma- turity due to growing portfolio of the securities. - A reduction in the portfolio of debt investment securities available for sale, primarily due to the repayment of the Bank of Russia bonds in the first half of 2011. Operations with foreign currency Cash collection Guarantees issued Operations with securities Other Fee and commission expenses NET FEE AND COMMISSION INCOME The Group's fee and commission income increased to RUB 151.9 bil- lion in 2011, up 16% on 2010. This growth was fuelled by increased volumes of transactions generating fee and commission income, especially operations with bank cards, with cash and settlement transactions with legal entities and individuals traditionally gen- erating the bulk of this income. Cash services to legal entities and money transfer services to individuals represent the largest items of fee and commission income. To diversify the structure of its fee and commission income, the Group is actively looking for increase proceeds from other sources: commissions on agency agreements to sell insurance policies, plastic card operations, foreign currency and securities transactions. Fee and commission expenses primarily relate to settlement trans- actions. financial results 170 YEARS. IT'S JUST THE BEGINNING WWW.SBERBANK.RU
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