Addres from Chairman of the Supervisory Board of Sberbank of Russia
CEO and Chairman
of the Executive Board
Dear shareholders, customers and partners,
Though for the Russian economy last year was difficult, for Sberbank Group it was a year of significant achievements. We again set a record in terms of net profit, which reached RUB 362 bn, according to international financial reporting standards. Return on equity (ROE) remained high and amounted to 20.8%. The cost-to-income ratio decreased to 46.6%. The loan book grew by 22.4%: corporate — by 19.1%, retail — by 32.1%. In the mortgage business, Sberbank’s share exceeded the 50% threshold, in the retail deposit market it reached 46.7%.
In the current difficult conditions, our priorities for 2014 remain unchanged: preserving asset quality, improved operational efficiency, and ensuring that the return on equity continues at a level sufficient to maintain a comfortable capital adequacy.
We completed the Development Strategy of Sberbank for 2009 — 2013, exceeding our goals on profit and return on equity. We launched our brand in Europe. Sberbank really became an international group, one of global financial institutions. Thus, we proved that not only Russian resource companies could operate successfully in the global market.
In 2013, we adopted the Sberbank Development Strategy which covers the period until 2018. The Strategy was developed on the basis of four principles of effective organisation formulated by Stephen Covey:
- The organisation, which consistently achieves the highest level of performance and succeeds in both the short and the long term;
- The organisation, which gains loyalty, devotion, and love of its customers;
- The organisation, the staff of which take the business personally and commit to work with all the passion and energy;
- The organisation whose mission distinguishes it from all others.
We have identified five key areas for further development of Sberbank Group:
- With the customer for life — We will build deep relationships of trust with our customers, and we will become a useful, sometimes imperceptible but still an integral part of their lives. Our goal is to exceed the expectations of our customers;
- Team and corporate culture — We strive to ensure that our employees and corporate culture of Sberbank become one of the key sources of our competitive advantage;
- Technological breakthrough — We will complete the technological modernisation of the Bank and learn to integrate all of the most sophisticated technology and innovation in our business;
- Financial performance — We will improve the financial returns of our business through more effective cost management and the risk-return ratio;
- Mature organisation — We will build the organisational and managerial skills, creating processes that are in line with the scale of Sberbank Group and our ambitions.
Having launched the implementation of the new Strategy, Sberbank Group stepped into a new stage. By 2018, we will have to be at the same level in key technology areas with global leaders, or even outstrip them. Of course, it is a very serious goal, however, Sberbank is of those companies which are not afraid of difficulties and is able to scale all new heights.
I know this for sure, because we have a great team of professionals who understand and support our clients and shareholders. Thank you all for your support.