Sberbank of Russia

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Not to be confused with Sberbank of the USSR.
For other uses, see Sberbank (disambiguation).

Coordinates: 55°41′55.69″N 37°34′45.54″E / 55.6988028°N 37.5793167°E / 55.6988028; 37.5793167

Sberbank
Сбербанк
Type Public (OAO)
Traded as MCXSBER
Industry Banking, Financial Services
Founded 1841 (de jure 1991)
Headquarters Moscow, Russia
Key people Sergey Ignatev, (Chairman)
German Gref, (CEO)
Products consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, savings, Securities, asset management, wealth management, Credit cards
Revenue Increase US$ 30.5 billion (2012)
Net income Increase US$ 11.4 billion (2012)
Total assets Increase US$ 486.4 billion (2013)
Owners Central Bank of Russia 51% Listed 49%
Employees 286,019
Subsidiaries Troika Dialog
Denizbank
Website www.sbrf.ru

Sberbank Rossii (Russian: Сбербанк России, a contraction of "сберегательный банк" - sberegatelʹnyĭ bank; English: "Savings bank of Russia") is a shareholder-owned bank with the Russian government in the majority, headquartered in Moscow. As of 2012 it was the largest bank in Russia and Eastern Europe, and the third largest in Europe.[1] In July 2014 Sberbank was ranked 33rd in the world and first in central and eastern Europe in The Banker's Top 1000 World Banks ranking.[2] The company's history goes back to Cancrin's financial reform of 1841.[3] The bank's motto is: "Always by your side" (Russian всегда рядом (vsegda ryadom)).[4]

History[edit]

Volksbank International acquisition, 2011[edit]

Russian President Putin visits a Moscow branch of Sberbank, November 2001

In 2011, Sberbank acquired Volksbank International AG from its shareholders Österreichische Volksbanken AG, BPCE, DZ Bank and WGZ Bank. The deal included all VBI assets - banks in Slovakia, Czech Republic, Hungary, Slovenia, Croatia, Ukraine, Serbia and Bosnia and Herzegovina, except for Volksbank Romania. The agreed price was €585 to €645 million, depending on VBI business performance in 2011. VBI’s total assets excluding Romania was €9.4 billion in June 2011.[5]

Denizbank acquisition, 2012[edit]

In June 2012 Sberbank bought the Turkish DenizBank for Turkish Lira6,469 million (about EUR 2,821 million or US$3.504 billion) from the lender Dexia, which in 2011 was "partly nationalized by the governments of France, Belgium and Luxembourg".[6] The deal included DenizBank subsidiaries in Turkey, Austria and Russia.[7]

Boycott in Ukraine, 2013-present[edit]

Graffiti "It's Russian bank" near the department of bank in Oleksandriia, Ukraine

Since 2013 the bank's network had become a target of the Do not buy Russian goods! campaign. Ukrainian activists appealed not to use Sberbank's services because of their Russian origin.[8] The boycott had become widespread in March 2014 in connection with the Crimean crisis and 2014 Russian military intervention in Ukraine with a wave of protest actions against Russian banks in Ukraine, and against Sberbank of Russia in particular.[9][10][11][12][13] Banks were vandalized[14][15] in particular after the General Prosecutor's Office and the Security Service of Ukraine announced their accusation of funding for terrorism in Ukraine.[16]

U.S and EU sanctions, 2014[edit]

After Russia's annexation of Crimea in March 2014 the Obama administration imposed sanctions, to which the US Department of Treasury added new prohibitions in September 2014, coinciding with EU sanctions.[17] Sanctions consist of access restriction to the EU and US capital markets.[18] After announcement of the sanctions, and by the end of July, Sberbank's market value had dropped the most market value among the world’s major lenders plus investors moved $22 billion from Sberbank’s market capitalization.[19] Sberbank together with other Russian banks filed claims with the highest EU court to lift the punitive economic measures.[20]

Ownership[edit]

Bank cards (Visa and MasterCard) with private information removed

The majority shareholder of Sberbank has been the Central Bank of the Russian Federation, also known as The Bank of Russia, owning 50%+1 voting share of Sberbank's voting shares with the rest of the shares dispersed among portfolio, private and other investors with an estimated shareholding of about 20% by foreigners.[3]

Russia's central bank cannot sell its stake without a change in Russia's laws.[citation needed]

Management[edit]

The Chairman of the Board and Chief Executive Officer (CEO) is German Gref, confirmed by the Board of Directors on 16 October 2007.

Key statistics[edit]

As of 2013 the bank had about 19,000 branches with 250,000 employees.[3] As of November 2013 it accounted for 28.6% of aggregate banking assets, calling itself "the circulatory system of the Russian economy","key lender to the Russian economy and the biggest receiver of deposits".[3]

Largest financing projects[edit]

In 2004, the Sberbank's largest ten borrowers received RUB 297 billion in 2004[citation needed] and known projects include:

  • GT TEZ Energo (construction of gas turbine electric power plants)
  • Sevmorneftegaz, an oil company and Gazprom subsidiary, owning licenses for the Shtokman field and the Prirazlomnoye oil field
  • Sayanskhimplast leading Russian PVC producer to improve chlorine and caustic soda production facilities
  • The "Svyazinvest's 2004 investment programme"
  • Ilyushin Finance Co. to lease three aircraft
  • Delta Telecom for its St. Petersburg cell network
  • Sukhoi's Su-35 project for long-term production funding[21]
  • Khmelnytskyi, Ukraine nuclear power plant funding to finish blocks 2&3 until 2016.

As of January 1, 2014, the largest borrowers received RUB 4.6 trillion; Sberbank has not specified the projects.[22]

Export Credit Agencies relationships[edit]

Sberbank signed cooperation agreements with several Export Credit Agencies (ECAs) in 2004 including Eximbank USA, Eximbank Hungary and the Israel Foreign Trade Risks Insurance Corporation (ASHRA).

Sberbank has also cooperated with OeKB (Austria), UK Export Finance (ECGD), Euler Hermes (global), Servizi Assicurativi del Commercio Ester (SACE, Italy), Compañía Española de Seguros de Crédito a la Exportación (CESCE, Spain), Export Development Canada (EDC), Atradius (Netherlands), Korporacja Ubezpieczeń Kredytów Eksportowych (KUKE, Poland), COFACE (France), Finnvera (Finland), EGAP (Czech Republic), National Export Credits Guarantee Board (Sweden) (EKN), ERG (Switzerland), Nippon Export and Investment Insurance (NEXI, Japan) and Japan Bank for International Cooperation.

Subsidiaries[edit]

Sberbank Rossii's office in Atyrau, Kazakhstan

Criticism[edit]

Not returning of citizens' deposits[edit]

"Sberbank of Russia" is an assignee of saving banks of former USSR,[24] all assets of which belonged to the state. In process of liberalization of prices in the beginig of 1990's the state and Sberbank, in fact, refused assuring citizens' deposits,[25] which resulted in their landslide depreciation, which, in it's turn, induced dramatic discontent of population.[26] Since 1996 patrial compensation of depositors' losses is carried out.[27]

Low level of service[edit]

In 2000's "Sberbank of Russia" was repeatedly blamed for low level of service and lots of inconveniences in the bank's departments.[28][29][30][31][32][33]

Accusation of funding for terrorism in Ukraine[edit]

17 April 2014 General Prosecutor of Ukraine Oleh Makhnitskyi informed of criminal proceedings concerning "Sberbank of Russia" on suspition in funding of actions, which took place in the East and South of Ukraine.[34] It was also announced in the pressroom of Security Service of Ukraine that 45 million UAH in cash were transfered in March–April 2014 by Sberbank for funding for terrorism in the territory of Ukraine.[35] The press service of the bank denied any involvement in the financing of terrorists on the territory of Ukraine.[36]

See also[edit]

References[edit]

  1. ^ The Lex Column (September 17, 2012). "Sberbank – the consumer’s choice". Financial Times. Retrieved 23 September 2012. 
  2. ^ "Top 1000 World Banks – Sales bring changes in CEE but Russia still rules". The Banker. June 30, 2014. Retrieved 11 October 2014. 
  3. ^ a b c d "Sberbank of Russia - About Sberbank". Sbrf.ru. 2013-11-01. Retrieved 2014-03-21. 
  4. ^ "Sberbank of Russia". Sberbank.ru. Retrieved 2014-03-21. 
  5. ^ "Sberbank completes Volksbank buy". Russian Times. 2011-09-09. Retrieved 2014-03-21. 
  6. ^ Kramer, Andrew (June 8, 2012). "Sberbank of Russia to Buy DenizBank for $3.5 Billion". NYT (New York Times). Retrieved 12 September 2014. 
  7. ^ Sberbank Announces Agreement to Acquire 99.85% of DenizBank[dead link]
  8. ^ Не користуйся послугами російських банків! Кампанія бойкоту триває (Ukrainian). Maidan. 19 November 2013
  9. ^ В Києві активісти оголосили бойкот російським банкам (Ukrainian). 1+1. 24 April 2014
  10. ^ Активисты призвали бойкотировать "Сбербанк России", ВТБ и Проминвестбанк (Russian). ЦензорНЕТ. 24 April 2014
  11. ^ Чи мають банки Путіна майбутнє в Україні (Ukrainian). Ukrayinska Pravda. 6 March 2014
  12. ^ Горняки и металлурги Кривбасса за цивилизованный отказ от сотрудничества с российскими банками (Russian). Confederation of Free Trade Unions of Ukraine. 17 June 2014
  13. ^ «Не годуй армію окупанта!» – в Тернополі оголосили бойкот «Сбербанку Росії». ФОТО (Ukrainian). zz.te.ua. 23 May 2014
  14. ^ В центрі Києва розгромили Сбербанк Росії. Фото (Ukrainian). Ukrinform. 22 June 2014
  15. ^ В Житомире разгромили российские ВТБ и Сбербанк (Russian). Антикоррупционный портал. 21 June 2014
  16. ^ Cite error: The named reference UNIAN_18_April_2014 was invoked but never defined (see the help page).
  17. ^ Arshad Mohammed; Bill Trott (12 September 2014). "U.S. steps up sanctions on Russia over Ukraine". Reuters. Retrieved 12 September 2014. 
  18. ^ Нові санкції ЄС проти Росії опубліковано. У списку — Жириновський та «Калашников» (Ukrainian). Ukrayinska Pravda. 12 September 2014
  19. ^ Halia Pavliva (28 July 2014). "Sberbank Drops as EU Sanctions on Russian Lenders Loom". Bloomberg News (Bloomberg L.P.). Retrieved 14 November 2014. 
  20. ^ Jason Corcoran (24 October 2014). "Russian Banks Take EU to Court Over Ukraine Sanctions". Bloomberg News. Retrieved 15 November 2014. 
  21. ^ "Sukhoi’s Su-35S program to be funded by Sberbank". Defence Aviation. 20 September 2010. Retrieved 21 September 2010. 
  22. ^ "Management report: Corporate and investment business". Sberbank. Retrieved 12 September 2014. 
  23. ^ Klimentev, Gleb (2009-12-10). "Сбербанк открыл ячейку в Белоруссии". gazeta.ru. Retrieved 2009-12-11. 
    • Sberbank Rossii (Kazakhstan) (former Texakabank)
    • Sberbank Rossii (Ukraine) (former NRB)
  24. ^ § 3. Правовое регулирование сберегательного дела. Виды вкладов. Грачева Е. Ю., Соколова Э. Д. Финансовое право: Учебное пособие. — 2-е изд., испр. и доп. — М.: Юриспруденция, 2000. — 304 с. (Russian). ISBN 5-8401-0042-0.
  25. ^ Обнищание «народных масс» России. В. С. Сычёва. Социологические исследования. 1994. — № 3. — С. 66-69. Автор — канд. социол. наук, ст. н. с. (Russian). Institute of Sociology of RAS.
  26. ^ Банковские вклады, «сгоревшие» в 1992 году (Russian). Lyudmila Presnyakova. Fund «Общественное мнение». 22.02.2007.
  27. ^ Сбербанк России начал выплачивать компенсации по советским вкладам (Russian). Lenta.ru. 16.04.2008.
  28. ^ Как достичь конкурентных преимуществ на рынке платежей. В. В. Насочевский. Методический журнал «Банковский ритейл». № 3/2006. (Russian)
  29. ^ Андрей Юданов. (2007-04-23). Гении национального бизнеса (in Russian). Expert. Archived from the original on 2012-02-09. Retrieved 2010-08-14. 
  30. ^ В Коношском Сбербанке — волокита и некомпетентность. I. Izyumov. Konoshski kuryer. 21.01.05 (6-7) (Russian)
  31. ^ «В погоне за длинным гудком». Yelena Kovalyova. Kommersant Dengi. (Russian). № 35(591), 04.09.2006.
  32. ^ Очереди в Сбербанк остаются огромными. Sergey Oznobischev. Kreml.org. (Russian). 31.03.2006.
  33. ^ Кому выгодна очередь? N. Kabashova. Avangard. (Russian). 30.10.2004 (86).
  34. ^ Sberbank of Russia suspected of financing separatists - PGO. Ukrinform. 17.04.2014
  35. ^ Сбербанк Росії облили червоною фарбою після звинувачень у фінансуванні терористів (Ukrainian). UNIAN. 18.04.2014
  36. ^ «Сбербанк Росії» спростовує свою участь у фінансуванні сепаратистів на південному сході України (Ukrainian). 112 Ukraine. 17.04.2014

External links[edit]