Address of the CEO and Chairman of the Executive Board
Herman Gref

Dear shareholders, clients, and partners!

In the life of Sberbank, 2017 was an important milestone. We summed up interim results of the transformation we have been pursuing the past 10 years and approved our new strategic priorities.

External environment was controversial last year, however, in general, it was consistent with our expectations: Russian economy moved out of the recession, having demonstrated moderate growth of 1.5% against the backdrop of recovery in domestic demand. However, increasing consumer expenses were not recompensed by growth in revenues. The hard-line monetary policy and strengthening of the rouble in the beginning of the year resulted in record slowdown in inflation to a low of 2.5%. As a consequence, the Bank of Russia reduced its key interest rate to less than 10%, which promoted the demand for loans. Last year, we evidenced continued recovery of banking system: The Bank of Russia recapitalized three private banks, whose losses impaired the profitability index of the banking sector at large. However, profitable banks made record profits for 2017.

Address of the Chairman of the Supervisory Board
Sergey Ignatiev

Dear shareholders!

Despite the continuing uncertainty of the past few years and the significant changes in the external environment, Sberbank has managed to remain on the path toward sustainable development and to implement the key goals of Strategy 2014–2018 ahead of schedule.

A number of factors made all of this possible: the implementation of a large-scale technical transformation; the ability of the team of the largest bank in the country to stay abreast of and analyze trends, receive feedback from clients and immediately adapt to the situation; to remain true to the values and principles of Sberbank’s corporate culture; and the Supervisory Board’s continued focus on the strategic aspects of the Bank’s activity.

Sberbank today
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The Sberbank Group is the largest financial institution in Russia and Central and Eastern Europe. The Bank services 151 million clients, of whom 134.7 million are in Russia. Sberbank accounts for 29.9% of the total assets of the Russian banking system. Sberbank has already been working 76 years on the Russian market, and its brand is solidly associated with reliability and social orientation, and also more and more with innovation and technological leadership. The bank is actively developing its channels for interacting with clients through a unique physical and digital infrastructure, creating an IT system based on modern innovative technologies (artificial intelligence, machine learning, blockchain, robotics, and others). Sberbank is also transforming itself, moving towards the model of a global ecosystem, to provide its clients with the best financial and non-financial services to satisfy their everyday needs.

86.2  million active retail clients in Russia
The Sberbank Group in the world
22 countries
151  million clients, including 16.3 million outside of Russia
27.1  RUB trillion in assets
310.3  thousand employees
Clients in Russia
2.1  million active corporate clients
132.7  million retail clients, of which 86.2 million are active clients
41.2  million clients receive their salaries through Sberbank
17.5  million credit cards issued by Sberbank of Russia in circulation
121.5  million debit cards issued by Sberbank of Russia in circulation
818  thousand corporate cards issued by Sberbank of Russia
Traditional sales channels
>2  million visitors in Russia each day
14.3  thousand service points in Russia
76.3  thousand self-service terminals in Russia
931  thousand active retail service points
56.8  million unique active clients using remote channels (Internet bank and text message service)
29.4  million unique active users of the Mobile Bank text message service
32.6  million unique active users of the Sberbank Online mobile app
Active users in digital channels
50.4  million monthly active users (MAU)
14.6  million daily active users (DAU)
29%  DAU/MAU
1.63  million monthly active users (MAU)
784  thousand daily active users (DAU)
48%  DAU/MAU

Sberbank Corporate University received a prestigious international award in corporate education — the Global CCU Awards. It was declared best in the category Business Impact, which assessed the effect of the corporate university on the parent company’s business

Global CCU
Global Finance
Best Retail Digital Banking in Russia, Global Finance
Sberbank was recognized as best by the prize “Consumer Rights and Service Quality” in the categories: “Most Client-Centric Bank in Russia” and “Digital Security”
The Banker Awards 2017
Sberbank took first place by equity among banks in Central and Eastern Europe according to The Banker magazine
Transparency International Russia
Sberbank took first place in the corporate reporting transparency index among the 200 largest Russian companies according to a study by Transparency International Russia
Sberbank Online
The Sberbank Online mobile app took fourth place in popularity in the Russian App Store after WhatsApp, VK and Instagram
The Sberbank Online mobile app received the first place in the nomination «Finance and Insurance» of the Russian «Runet Rating» competition
Brand Finance
Sberbank took first place in a rating of the most valuable brands in Russia, and sixth in value of banking brands in Europe according to Brand Finance
Effie Awards Russia
The jury of the Effie Awards, the world’s most prestigious marketing awards, recognized Sberbank as company of the year. The Effie Awards are presented for the main achievement in advertising and marketing communications - effectiveness

Corporate governance lies at the foundation of the entire Sberbank system of management and control, and includes an organizational model, external and internal mechanisms for monitoring and control, and also corporate values and governing principles. The improvement and development of corporate governance practices is an undisputed priority for Sberbank and is within the area of attention and control of the Supervisory Board.

Corporate governance principles of Sberbank
Priority of shareholder rights and interests
Ensuring the long-term sustainable development of the business
Delimitation of powers and responsibilities in the management of the business
The competencies and qualifications of members of the Supervisory Board are commensurate with the scale of operations of Sberbank
A balanced and effective system of internal controls and risk management
Full subordination of management bodies to the shareholders
Informational transparency
8 points out of 10
Confirmation of the National Corporate Governance Rating at the level of “ Advanced Corporate Governance Practice” of the Russian Institute of Directors
Key highlights
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In 2017 the Group’s assets increased by 6.9%. The aggregate loan portfolio of the Group grew by 6.6% in 2017, showing an increase both in the corporate and in the retail segment. The Group’s equity rose in 2017 by 21.8%, mainly due to the Group’s operating profit.

Financial performance
Pre-provision operating profit, RUB billion
Net profit, RUB billion
Return on equity (ROE), %
Total assets, RUB billion
Loans to corporate clients, RUB billion
Loans to private clients, RUB billion
Return on assets (ROA), %
Cost income ratio (CIR), %
Cost of risk (COR), %
Due to corporate customers, RUB billion
Due to individuals, RUB billion
Total equity, RUB billion

The Sberbank Group finished 2017 with record net profits of RUB 748.7 billion, 38.2% higher than 2016. Profits per ordinary share equaled RUB 34.6, showing growth of 38.3% compared to 2016.

Earnings per ordinary share 34.58 RUB
Earnings per ordinary share (EPS)
Net profits RUB 748.7 billion
Group Strategy
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  • With our customers for life
  • Team and corporate culture
  • Technological breakthroughs
  • Financial performance
  • Mature organization

Customer experience in the financial sphere: expansion and refinement of the product and service line, building individual relationships with each customer, ensuring easy access to services in all channels, optimizing work in physical channels and creating and launching innovative interfaces in digital channels

Construction of an ecosystem of non-financial businesses: offering of additional services in various areas of customers’ lives that are synergistic with financial products.

Reliability and efficiency: ensuring the reliable, stable operation of both existing and new IT systems.

New platform: completion of the migration of customers, products and data to the new platform, which will be based on an innovative cloud infrastructure, with the implementation of DevOps practices and tools.

Security: ensuring the protection of custom data and investment in monitoring tools and the protection of all digital channels, training of employees, customers and partners.

Data-driven company: creation of systems to manage the growing amount of customer data, development of in-house competencies in data processing.

Innovation: creating laboratories for key business technologies, conducting applied research, and integrating new technologies in our products and services.

New competencies: promotion of a new model of competencies, training in new, sought-after skills.

Teams instead of hierarchies: increasing requirements on managers and employees as regards the ability to work in a team, the introduction of new forms of teamwork, creation of an atmosphere of psychological safety.

Corporate culture: development of leadership competencies among managers, incentives for self-development and self-improvement among employees, creation of a clear and personalized path for employee hiring and development, promotion among employees of a culture of continuous development and introduction of new products and services.

Transformation of the HR function: automation and digitization of HR processes, migration to a Success Factors cloud platform, keeping the growth in personnel costs and turnover of key personnel at an acceptable level, new role of HR as a partner focusing on long-term planning to ensure human resources with the necessary skills and raising the effectiveness of teamwork.

We are working to increase earnings per share, ensuring the growth of business value for our shareholders and investors.

Achievement of the set goals
Sberbank strategy for 2008–2014
Sberbank strategy for 2014–2018
Sberbank strategy for 2020
Cross-cycle profitability
Unique market position and deep knowledge of the client
Consistent dividend distribution
RUB 1 trillion dividend payout by 2020 Up to 50% dividend payout for 2019 profit
Laying the foundation of future competitiveness through technological leadership
Unified Front-End System
The Single Point of contact with the client
Business Hub
“Brain” – logic and decision-making system
Product Factories
“Production” – products, transactions, accounting
Platform Core
Data Factory
“Experience” – building up client experience and generating new knowledge