Investor Presentaiton
financial results
86
A
SBERBANK
CHARGE / RECOVERY
OF PROVISIONS FOR LOAN
IMPAIRMENT
170 YEARS. BY YOUR SIDE
ANNUAL REPORT
STATEMENT OF COMPREHENSIVE INCOME
87
RUB million
2011
2010
Change, %
Provision for loan impairment at 1 January
702,523
579,814
21.2
(Recovery)/charge for the year
(1,193)
153,809
(100.8)
Currency translation effect
(1,741)
Loans to customers written off during the year as uncollectible
Provision for loan impairment as of 31 December
(37,182)
(31,100)
19.6
662,407
702,523
(5.7)
Net gains from recovery of provision for loan impairment amount-
ed to RUB 1.2 billion in 2011, while in 2010 net provision charges
equalled RUB 153.8 billion. This shows that general quality of the
loan portfolio improved on the back of positive developments in the
Russian economy. Efforts to optimise overdue and non-performing
loans management system also had a positive effect on the Group's
figures. As a result of these efforts, a number of non-performing loans
were sold or repaid. The amount of loans written off as uncollectible
increased 19.6% in 2011. A significant part of write-offs results from
the sale of non-performing loans by the Group.
T
OF COMPREHENSIVE
STATEMENT
INCOME
he Group's comprehensive income reached RUB 309.0 billion
in 2011, up 50% year-on-year.
A gain from revaluation of the Group's office premises in the amount
of RUB 36.9 billion was recorded in comprehensive income in 2011.
In accordance with the current accounting policy, the Group revalued
its office premises as of 31 December 2011 (previous revaluation was
performed as of 31 December 2009). The loss from this revaluation
in the amount by which the fair value of office premises is lower
than its net carrying amount, net of previously accumulated positive
revaluation in the amount of RUB 11.3 billion, is also recorded in the
income statement for 2011.
The negative revaluation of securities available for sale in the amount
of RUB 28.8 billion is recorded in comprehensive income for 2011.
170 YEARS. IT'S JUST THE BEGINNING
WWW.SBERBANK.RU
financial results
2011View entire presentation