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management report << 20 SBERBANK 170 YEARS. BY YOUR SIDE ANNUAL REPORT RETAIL BUSINESS 2011 21 Retail lending 20 Retail deposit operations 23 retail banking services 24 Other RETAIL BUSINESS n December 2011, Sberbank won three nominations at the Retail Finance Awards, which are held by the Retail Finance magazine to recognise notable achievements in developing retail finance in Rus- sia. Sberbank received awards for the Best Advertising Campaign and Breakthrough of the Year. The Bank was also ranked third in the Best Retail Bank nomination. RETAIL LENDING Loan portfolio changes In 2011, the Bank provided more than 4.3 million retail loans for a total value of RUB 1,230 billion, or 1.7 times the figure for 2010. This resulted in a 36.8% increase in our retail loan portfolio, which is now worth RUB 1,806 billion. Developing our product range In the first quarter of 2011, the Bank launched a new retail product range that envisages individual lending terms for different borrower groups: employees of the Bank and its subsidiaries, employees of cor- porate customers that participate in salary programmes, etc. Discounts to interest rate are available for borrowers with good credit histories. In 2011, Sberbank increased its market share in the mortgage lending segment from 45.8% to 46.9%, thereby strengthening its leading posi- tion in this market segment. This was largely driven by special offers re- sulting in more than 60,000 new loans issued for RUB 65 billion. These offers included V Desyatku! (All Tens: interest rate 10% p.a., initial deposit 10%, maturity 10 years) and Vozmi za 8 (Take it for 8: interest rate 8% p.a., maturity up to 8 years, decision made within 8 days). The Bank has been, and is still, actively involved in programmes such as Government-Backed Mortgages, Building Societies, Military Mortgages, Mortgages Plus Child Benefit and Mortgage Refinancing. Car lending is another important line in the Bank's retail business. In 2011, the Bank simplified and expedited its lending process. Bor- rowers may now apply for a car loan directly at dealerships through Sberbank's automated systems, which significantly reduces the ap- plication processing time. Furthermore, written consent is no longer required from a borrower's spouse to collateralise vehicles purchased under the loan. To get a car loan, applicants now have to provide only two documents. High Speed, Low Cost is a special offer we launched in 2011 to offer car loans at affordable rates. It helped buck the trend of our declining car loan portfolio. During the promotion campaign, Sberbank issued about 73,000 car loans for RUB 29 billion. In the consumer lending business, according to the Bank's principles a borrower's creditworthiness and ability to repay the debt affects the cost of lending. In 2011, the Bank introduced two new borrower categories. The first is young people aged between 18 and 20. Loans to these borrowers are guaranteed by their parents. Loan conditions stipulate a required length of current employment of 4 months. The second is pensioners whose pensions are paid into a Sberbank account. Sberbank continued to improve its value propositions for consumer loans: the maximum limit for uncollateralised loans and loans guar- anteed by individuals was doubled. Additionally the upper age limit to qualify for an uncollateralised loan was increased to 65 years and a pilot project to relax the requirements for a borrower's residence registration was launched. The Bank continued its involvement in the Experimental Government- Backed Student Loan Programme. Considering past experience, Sber- bank simplified the type of university certificate to be submitted by the 170 YEARS. IT'S JUST THE BEGINNING WWW.SBERBANK.RU management report

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