Sberbank — Interim / Quarterly Report 2012

Sep 30, 2012

Sberbank of Russia

Condensed Interim Consolidated Financial Statements and Review Report

30 September 2012

Condensed Interim Consolidated Statement of Financial Position 1
Condensed Interim Consolidated Income Statement 2
Condensed Interim Consolidated Statement of Comprehensive Income 3
Condensed Interim Consolidated Statement of Changes in Equity 4
Condensed Interim Consolidated Statement of Cash Flows 5

1	Introduction 6
2	Operating Environment of the Group7
3	Basis of Preparation7
4	Accounting Policies, Critical Accounting Estimates and Judgements, Adoption of New or Revised Standards
	and Interpretations, and Reclassifications7
5	Trading Securities9
6	Securities Designated at Fair Value through Profit or Loss9
7	Loans and Advances to Customers 10
8	Securities Pledged under Repurchase Agreements21
9	Investment Securities Available for Sale22
10	Investment Securities Held to Maturity22
11	Other Assets23
12	Due to Individuals and Corporate Customers24
13	Debt Securities in Issue25
14	Other Liabilities26
15	Interest Income and Expense27
16	Fee and Commission Income and Expense28
17	Net Gains Arising from Trading in Foreign Currencies, Operations with Foreign Currency Derivatives and
	Foreign Exchange Translation Gains28
18	Operating Expenses 29
19	Earnings per Share 29
20	Dividends 30
21	Segment Analysis30
22	Financial Risk Management37
23	Credit Related Commitments 43
24	Related Party Transactions43
25	Operations with State‐Controlled Entities and Government Bodies45
26	Principal Subsidiaries 47
27	Capital Adequacy Ratio 53
28	Subsequent Events54

Con densed In nterim Con nsolidated d Stateme ent of Fina ancial Pos sition

		30 September 2012	31 December 2011
In billions of Russian roubles	Note	(Unaudited)
ASSETS
Cash and cash equivalents		798,0	625,6
Mandatory cash balances with central banks		197,6	101,2
Trading securities	5	75,8	102,0
Securities designated at fair value through profit or loss	6	23,9	52,0
Due from banks		96,4	35,1
Loans and advances to customers	7	9918,7	7719,7
Securities pledged under repurchase agreements	8	506,7	300,8
Investment securities available for sale	9	932,6	884,5
Investment securities held to maturity	10	272,9	286,5
Deferred income tax asset		5,0	7,8
Premises and equipment		421,3	359,9
Other financial assets	11	187,9	163,1
Other non-financial assets	11	318,7	196,9
TOTAL ASSETS		13 755,5	10 835,1
LIABILITIES
Due to banks		1026,0	532,4
Due to individuals	12	6503,8	5726,3
Due to corporate customers	12	3 0 1 7,6	2 2 0 5,8
Debt securities in issue	13	597,3	268,7
Other borrowed funds		380,2	244,0
Deferred income tax liability		29,5	21,2
Other financial liabilities	14	250,5	222,8
Other non-financial liabilities	14	92,0	42,4
Subordinated debt		334,9	303,5
TOTAL LIABILITIES		12 231,8	9567,1
EQUITY
Share capital		87,7	87,7
Treasury shares		(8, 4)	(7, 0)
Share premium		232,6	232,6
Revaluation reserve for office premises		79,5	81,5
Fair value reserve for investment securities available for sale		15,5	(7, 5)
Foreign currency translation reserve		(0, 9)	(5,7)
Retained earnings		1 100,8	882,9
		1506,8
Total equity attributable to shareholders of the Bank Non-controlling interest		16,9	1 2 6 4, 5 3,5
TOTAL EQUITY		1523,7	1 268,0
TOTAL LIABILITIES AND EQUITY		13 755,5	10 835,1

Appro oved for issue and signed o n behalf of th he Manageme ent Board on 4 4 December 20 012.

Con densed In nterim Con nsolidated d Income Statemen nt

(Unaudited)		Nine months ended 30 September		Three months ended 30 September
In billions of Russian roubles	Note	2012	2011	2012	2011
Interest income	15	816,7	615,2	295,9	213,3
Interest expense	15	(295, 4)	(198, 4)	(110, 2)	(65, 4)
Expenses directly attributable to deposit insurance	15	(17,5)	(14, 8)	(6,1)	(5,1)
Net interest income		503,8	402,0	179,6	142,8
(Net provision charge) / net recovery of provision for
loan impairment	7	(10,6)	16,8	(11,7)	(5,4)
Net interest income after provision charge / recovery
of provision for loan impairment		493,2	418,8	167,9	137,4
Fee and commission income	16	131,9	107,4	46,6	38,5
Fee and commission expense	16	(11,8)	(7, 5)	(4, 8)	(2,8)
Net gains/(losses) arising from trading securities		0,6	(2, 2)	2,4	(2,3)
Net gains/(losses) arising from securities designated at
fair value through profit or loss		1,7	(0, 3)	0,5	0,9
Net gains/(losses) arising from investment securities
available for sale		3,7	10,3	(0,5)	1,8
Impairment of investment securities available for sale			(2, 1)		(2,1)
Net gains arising from trading in foreign currencies,
operations with foreign currency derivatives and
foreign exchange translation	17	4,4	4,6	3,0	0,9
Net gains/(losses) arising from operations with precious
		4,5
metals and precious metals derivatives			1,6	(0,1) 0,8	(0,7)
Net gains arising from operations with other derivatives		7,9	3,3		4,9
(Net provision charge) / net recovery of provision for
impairment of other assets		(2,4)	(1,4)	0,5	(0,6)
Other operating income		21,3	25,6	5,9	8,1
Operating income		655,0	558,1	222,2	184,0
Operating expenses	18	(314, 6)	(239, 4)	(109,3)	(84, 3)
Profit before tax		340,4	318,7	112,9	99,7
Income tax expense		(77, 6)	(62, 9)	(25, 4)	(20,1)
Profit for the reporting period		262,8	255,8	87,5	79,6
Attributable to:
- shareholders of the Bank		263,3
- non-controlling interest		(0, 5)	256,3 (0, 5)	87,7 (0, 2)	79,8 (0, 2)
Earnings per ordinary share for profit attributable to
the shareholders of the Bank, basic and diluted (expressed in RR per share)	19	12.13	11.81	4.08	3.69

Appro oved for issue and signed o n behalf of th he Manageme ent Board on 4 4 December 20 012.

Condensed Interim Consolidated Statement of Other Comprehensive Income

(Unaudited)	Nine months ended 30 September		Three months ended 30 September
In billions of Russian roubles	2012	2011	2012	2011
Profit for the reporting period recognised in the income statement	262,8	255,8	87,5	79,6
Components of other comprehensive income:
Investment securities available for sale:
‐ Net gains/(losses) on revaluation of investment securities available for sale	32,3	(39,6)	18,7	(43,4)
‐ Impairment of investment securities available for sale transferred to Income statement	‐	2,1	‐	2,1
‐ Accumulated (gains)/losses transferred to Income statement upon disposal of securities	(3,7)	(10,3)	0,5	(1,8)
Net foreign currency translation gains/(losses)	4,8	(3,6)	2,1	2,2
Deferred income tax relating to components of other comprehensive income:
‐ Investment securities available for sale	(5,6)	9,5	(3,8)	8,6
Total components of other comprehensive income for the
reporting period, net of tax	27,8	(41,9)	17,5	(32,3)
Total comprehensive income for the reporting period	290,6	213,9	105,0	47,3
Attributable to:
‐ shareholders of the Bank	291,1	214,5	105,2	47,5
‐ non‐controlling interest	(0,5)	(0,6)	(0,2)	(0,2)

Condensed InterimConsolidated Statement of Changes in Equity

f th Att rib ble har eho lde e B k uta t s o rs o an
b illio of oub les In Rus sia ns n r	No te	Sha re l ita cap	Tre asu ry sha res	Sha re mi pre um	alu ati Rev on for res erv e off ice mis pre es	alu Fai v r e for res erv e inv est nt me uri tie sec s ilab le ava for le sa	eig For n cur ren cy nsl ati tra on res erv e	Ret ain ed nin ear gs	al Tot	No n‐ llin tro con g int st ere	Tot al uit eq y
Bal t 1 J 201 1 anc a e s a an uar y		87, 7	‐	232 6 ,	53, 6	24, 4	( 1) 1,	585 8 ,	983 0 ,	4, 1	987 1 ,
Ch in e ity for the nin hs end ed ont ang es qu e m
ber ( d) 30 S 201 1 Un aud ite tem ep ide nds d ecl d Div are f re val e f off Am isat ion ion ice ort uat o res erv or	20	‐	‐	‐	‐	‐	‐	( 0) 21,	( 0) 21,	‐	( 0) 21,
mis of t net pre es, ax		‐	‐	‐	( 4) 1,	‐	‐	1, 4	‐	‐	‐
ine bin ati Bus ss c om ons		‐	‐	‐	‐	‐	‐	‐	‐	0, 1	0, 1
Acq uis itio f n llin int in s ubs idia ries tro sts n o on‐ con g ere		‐	‐	‐	‐	‐	‐	( 1) 0,	( 1) 0,	0, 1	‐
al reh d for the Tot ive inc ise nin co mp ens om e r eco gn e nth nde d ber 3 0 S 201 1 tem mo e s ep		‐	‐	‐	‐	( 2) 38,	( 6) 3,	256 3 ,	214 5 ,	( 6) 0,	213 9 ,
( d) Bal t 3 S 0 ber 201 1 Un aud ite tem anc a e s a ep		87, 7	‐	232 6 ,	52, 2	( 8) 13,	( 7) 4,	822 4 ,	1 1 76, 4	3, 7	1 1 80, 1
Bal t 1 J 201 2 anc a e s a an uar y		87, 7	( 0) 7,	232 6 ,	81, 5	( 5) 7,	( 7) 5,	882 9 ,	1 2 64, 5	3, 5	1 2 68, 0
Ch in e ity for the nin hs end ed ont ang es qu e m ( d) 30 S ber 201 2 Un aud ite tem ep
f tr Pur cha sha se o eas ury res		‐	( 4) 1,	‐	‐	‐	‐	‐	( 4) 1,	‐	( 4) 1,
ide nds d ecl d Div are	20	‐	‐	‐	‐	‐	‐	( 5) 47,	( 5) 47,	‐	( 5) 47,
f re val e f off Am isat ion ion ice ort uat o res erv or
mis of t net pre es, ax		‐	‐	‐	( 0) 2,	‐	‐	2, 0	‐	‐	‐
ine bin ati and d isp ls o f su bsi dia ries Bus ss c om ons osa		‐	‐	‐	‐	‐	‐	0, 2	0, 2	13, 6	13, 8
f n llin ubs Acq uis itio int in s idia ries tro sts n o on‐ con g ere al reh d for the Tot ive inc ise nin co ens om eco		‐	‐	‐	‐	‐	‐	( 1) 0,	( 1) 0,	0, 3	0, 2
mp e r gn e nth nde d ber 3 0 S 201 2 tem mo e s ep		‐	‐	‐	‐	23, 0	4, 8	263 3 ,	291 1 ,	( 5) 0,	290 6 ,
( d) Bal t 3 S 0 ber 201 2 aud ite tem Un anc a e s a ep		87, 7	( 4) 8,	232 6 ,	79, 5	15, 5	( 9) 0,	1 1 00, 8	1 5 06, 8	16, 9	1 5 23, 7

Condensed Interim Consolidated Statement of Cash Flows

(Unaudited)		Nine months ended 30 September
In billions of Russian roubles	Note	2012	2011
Cash flows from operating activities
Interest received		808,2	600,6
Interest paid Expenses paid directly attributable to deposit insurance		(260,3) (16,7)	(175,0) (14,3)
Fees and commissions received		132,1	108,0
Fees and commissions paid		(12,2)	(7,3)
Net (losses)/ gains received from trading securities		(3,3)	0,4
Net gains/ (losses) incurred from securities designated at fair value through profit or loss		0,4	(0,2)
Net (losses incurred)/ gains received from trading in foreign currencies and from operations with foreign
currency derivatives		(1,4)	12,3
Net gains received from operations with other derivatives		0,3	1,1
Net gains received from operations with precious metals and precious metals derivatives		4,0	6,1
Other operating income received		17,7	56,7
Operating expenses paid		(235,1)	(212,8)
Income tax paid		(69,8)	(72,1)
Cash flows from operating activities before changes in operating assets and liabilities		363,9	303,5
Changes in operating assets and liabilities
Net increase in mandatory cash balances with central banks		(20,7)	(39,3)
Net decrease in trading securities		34,3	12,8
Net decrease in securities designated at fair value through profit or loss		30,0	31,9
Net increase in due from banks		(45,5)	(25,3)
Net increase in loans and advances to customers		(1 359,3)	(1 075,9)
Net increase in other assets Net increase in due to banks		(40,8) 384,7	(21,3) 6,6
Net increase in due to individuals		361,2	409,9
Net increase in due to corporate customers		453,6	124,4
Net increase/ (decrease) in debt securities in issue		166,3	(31,4)
Net increase in other liabilities		28,9	17,1
Net cash from / (used in) operating activities		356,6	(287,0)
Cash flows from investing activities
Purchase of investment securities available for sale		(303,7)	(689,5)
Proceeds from disposal and redemption of investment securities available for sale		186,3	954,3
Purchase of investment securities held to maturity		(4,2)	(66,4)
Proceeds from redemption of investment securities held to maturity		45,6	17,1
Acquisition of premises and equipment		(61,2)	(42,7)
Acquisition of investment property		(0,1)	(2,2)
Proceeds from disposal of premises and equipment including insurance payments Acquisition of subsidiaries		3,0 (82,0)	8,2 (0,2)
Proceeds from disposal of subsidiaries		5,9	‐
Dividends received		3,4	3,2
Net cash (used in) / from investing activities		(207,0)	181,8
Cash flows from financing activities
Other borrowed funds received		92,4	72,9
Redemption of other borrowed funds		(139,1)	(28,6)
Repayment of interest on other borrowed funds Subordinated debt received		(3,0) 0,4	(1,7) ‐
Redemption of subordinated debt		(4,0)	‐
Repayment of interest on subordinated debt		(0,1)	‐
Funds received from loan participation notes issued under the MTN programme		137,2	27,9
Redemption of loan participation notes issued under the MTN programme		(0,7)	‐
Repayment of interest on loan participation notes issued under the MTN programme		(9,1)	(6,7)
Purchase of treasury shares		(1,4)	‐
Dividends paid	20	(47,3)	(20,9)
Net cash from financing activities		25,3	42,9
Effect of exchange rate changes on cash and cash equivalents		0,5	‐
Effect of inflation on cash and cash equivalents		(3,0)	(10,7)
Net increase/(decrease) in cash and cash equivalents		172,4	(72,9)
Cash and cash equivalents at the beginning of the reporting period		625,6	719,6
Cash and cash equivalents as at the end of the reporting period		798,0	646,7

1 Introduction

These condensed interim consolidated financial statements of Sberbank of Russia (Sberbank, "the Bank") and its subsidiaries (together referred to as "the Group" or "Sberbank Group") have been prepared in accordance with IAS 34 Interim Financial Reporting for the nine months ended 30 September 2012. Principal subsidiaries include foreign commercial banks and other Russian and foreign companies controlled by the Group. A list of principal subsidiaries included in these condensed interim consolidated financial statements is disclosed in Note 26.

The Bank is an open joint stock commercial bank established in 1841 and operating in various forms since then. The Bank was incorporated and is domiciled in the Russian Federation. The Bank's principal shareholder, the Central Bank of the Russian Federation ("Bank of Russia"), owns 52.3% of ordinary shares or 50.0% plus 1 voting share of the issued and outstanding shares as at 30 September 2012 (31 December 2011: 60.3% of ordinary shares or 57.6% of the issued and outstanding shares). The decrease by 7.6% was due to the sale of shares and global depository receipts by the Bank of Russia to institutional investors in September 2012.

As at 30 September 2012 the Supervisory Board of the Bank is headed by the Chairman of the Bank of Russia. Two First Deputy Chairmen of the Bank of Russia are Deputy Chairmen of the Supervisory Board. The Supervisory Board also includes independent directors.

The Bank operates under a full banking license issued by the Bank of Russia since 1991. In addition, the Bank holds licenses required for trading and holding securities and engaging in other securities‐related activities, including acting as a broker, a dealer, a custodian, and provision of asset management services. The Bank is regulated and supervised by the Bank of Russia and by the Federal Service for Financial Markets. The Group's foreign banks operate under the banking regulatory regimes of their respective countries.

The Group's principal business activity is corporate and retail banking. This includes, but is not limited to, deposit taking and commercial lending in freely convertible currencies, local currencies of countries where the subsidiary banks operate and in Russian roubles, support of clients' export/import transactions, foreign exchange, securities trading, and trading in derivative financial instruments. The Group's operations are conducted in both Russian and international markets. As at 30 September 2012 the Group conducts its business in Russia through Sberbank with its network of 17 (31 December 2011: 17) regional head offices, 475 (31 December 2011: 505) branches and 18 455 (31 December 2011: 18 727) sub‐branches, and through principal subsidiaries located in Russia such as CJSC Sberbank Leasing, LLC Sberbank Capital, companies of Troika Dialog Group Ltd. and BNP Paribas Vostok LLC. The Group carries out banking operations in Turkey, Ukraine, Belarus, Kazakhstan, Austria, Switzerland and other countries of Central and Eastern Europe and also conducts operations through a branch office in India, representative offices in Germany and China and companies of Troika Dialog Group Ltd. located in the United States of America, the United Kingdom, Cyprus and certain other jurisdictions.

The actual headcount of the Group's employees as at 30 September 2012 was 278 247 (31 December 2011: 266 187).

Registered address and place of business. The Bank's registered address is: Vavilova str., 19, Moscow, Russian Federation.

Presentation currency. These condensed interim consolidated financial statements are presented in billions of Russian roubles ("RR billions") unless otherwise stated.

At 30 September 2012 the principal rates of exchange used for translating each entity's functional currency into the Group's presentation currency and foreign currency monetary balances were as follows:

	/RUR	/UAH	/BYR	/KZT	/EUR	/CHF	/TRY
RUR/	1	0,264	272,990	4,855	0,025	0,030	0,058
USD/	30,917	8,148	8 440,000	150,095	0,773	0,936	1,791
EUR/	39,979	10,536	10 913,752	194,088	1	1,210	2,315

1 Introduction (Continued)

At 31 December 2011 the principal rates of exchange used for translating each entity's functional currency into the Group's presentation currency and foreign currency monetary balances were as follows:

	/RUR	/UAH	/BYR	/KZT	/EUR	/CHF	/TRY
RUR/	1	0,250	259,348	4,611	0,024	0,029	0,059
USD/	32,196	8,038	8 350,001	148,455	0,773	0,940	1,913
EUR/	41,671	10,404	10 807,403	192,146	1	1,217	2,477

2 Operating Environment of the Group

The Group primarily conducts its business in the Russian Federation. The Russian Federation continues economic reforms and development of its legal, tax and regulatory frameworks. The recent developments of the Russian government are focused on modernization of the Russian economy in order to improve its productivity and quality, increase the proportion of industries producing high‐value‐added products and services. The future stability of the Russian economy is largely dependent upon these reforms and developments and the effectiveness of economic, financial and monetary measures undertaken by the government.

Despite economic recovery trends there continues to be uncertainty regarding further economic growth in Russia, access to capital markets and cost of capital, which could negatively affect the Group's future financial position, results of its operations and its business prospects. As the Russian economy is vulnerable to global economic slowdowns, there still remain the risks of fluctuations on the Russian financial markets.

While the management of the Group believes it is taking appropriate measures to support the sustainability of the Group's business in the current circumstances, unexpected deterioration in the areas described above could negatively affect the Group's results and financial position in a manner not currently determinable.

3 Basis of Preparation

These condensed interim consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the annual consolidated financial statements of the Group for the year ended 31 December 2011.

These condensed interim consolidated financial statements do not contain all the explanatory notes as required for a full set of consolidated financial statement.

4 Accounting Policies, Critical Accounting Estimates and Judgements, Adoption of New or Revised Standards and Interpretations, and Reclassifications

The accounting policies and methods of computation applied in the preparation of these condensed interim consolidated financial statements are consistent with those disclosed in the annual consolidated financial statements of the Group for the year ended 31 December 2011, except for the changes introduced due to implementation of new and/or revised standards and interpretations as of 1 January 2012, noted below:

Deferred tax: Recovery of underlying assets – Amendment to IAS 12 (issued in December 2010 and effective for annual periods beginning on or after 1 January 2012). IAS 12 has been updated to include a rebuttable presumption that deferred tax on investment property measured using the fair value model in IAS 40 should be determined on the basis that its carrying amount will be recovered through sale and a requirement that deferred tax on non‐depreciable assets, measured using the revaluation model in IAS 16, should always be measured on a sale basis.

4 Accounting Policies, Critical Accounting Estimates and Judgements, Adoption of New or Revised Standards and Interpretations, and Reclassifications (Continued)

Disclosures – Transfers of Financial Assets – Amendments to IFRS 7 (issued in October 2010 and effective for annual periods beginning on or after 1 July 2011). The amendment requires additional disclosures in respect of risk exposures arising from transferred financial assets. The amendment includes a requirement to disclose by class of asset the nature, carrying amount and a description of the risks and rewards of financial assets that have been transferred to another party yet remain on the entity's statement of financial position. Disclosures are also required to enable a user to understand the amount of any associated liabilities, and the relationship between the financial assets and associated liabilities. Where financial assets have been derecognised but the entity is still exposed to certain risks and rewards associated with the transferred asset, additional disclosure is required to enable the effects of those risks to be understood.

The above mentioned new or revised standards and interpretations effective from 1 January 2012 did not have a material impact on the accounting policies, financial position or performance of the Group unless otherwise stated.

Management's estimates and judgements. Judgements and critical estimates made by Management in the process of applying the accounting policies were consistent with those disclosed in the annual consolidated financial statements for the year ended 31 December 2011. Management has not identified new areas of judgement or critical estimates.

Income tax expense is recognised in these condensed interim consolidated financial statements based on management's best estimates of the effective annual income tax rate expected for the full financial year. Costs that occur unevenly during the financial year are anticipated or deferred in the interim report only if it would also be appropriate to anticipate or defer such costs at the end of the financial year.

Changes in presentation and reclassifications. The Group has changed disclosure of expenses directly attributable to deposit insurance according to the substance of such expenses. The presentation of the comparative figures has been adjusted to be consistent with the new presentation. The effect of changes on the condensed interim consolidated income statement for the nine months ended 30 September 2011 is as follows:

(Unaudited) In billions of Russian roubles	As previously reported	Reclassification	As reclassified
Operating expenses State deposit insurance system membership fee	14,8	(14,8)	‐
Consolidated Income Statement Expenses directly attributable to deposit insurance	‐	14,8	14,8

The effect of changes on the condensed interim consolidated income statement for the three months ended 30 September 2011 is as follows:

(Unaudited) In billions of Russian roubles	As previously reported	Reclassification	As reclassified
Operating expenses State deposit insurance system membership fee	5,1	(5,1)	‐
Consolidated Income Statement Expenses directly attributable to deposit insurance	‐	5,1	5,1

4 Accounting Policies, Critical Accounting Estimates and Judgements, Adoption of New or Revised Standards and Interpretations, and Reclassifications (Continued)

The effect of correspondent reclassifications on the condensed interim consolidated statement of cash flows for the nine months ended 30 September 2011 is as follows:

(Unaudited) In billions of Russian roubles	As previously reported	Reclassification	As reclassified
Operating expenses paid	(227,1)	14,3	(212,8)
Expenses paid directly attributable to deposit insurance	‐	(14,3)	(14,3)

5 Trading Securities

	30 September	31 December
	2012	2011
In billions of Russian roubles	(Unaudited)
Federal loan bonds (OFZ bonds)	13,4	26,0
Foreign government bonds	13,4	3,9
Corporate bonds	9,2	26,6
Russian Federation Eurobonds	7,5	6,3
Municipal and subfederal bonds	4,1	7,2
Total debt trading securities	47,6	70,0
Corporate shares	25,8	29,7
Investments in mutual funds	2,4	2,3
Total trading securities	75,8	102,0

6 Securities Designated at Fair Value through Profit or Loss

30 September	31 December
2012	2011
(Unaudited)
	30,5
0,4	‐
	0,2
0,1	0,1
14,3	30,8
8,9	21,2
0,7	‐
23,9	52,0
	13,6 0,2

7 Loans and Advances to Customers

The tables below show credit quality of the Group's loan portfolio by loan classes as at 30 September 2012 and 31 December 2011.

For the purposes of these condensed interim consolidated financial statements a loan is considered past due when the borrower fails to make any payment due under the loan agreement at the reporting date. In this case the aggregate amount of all amounts due from borrower under the respective loan agreement including accrued interest and commissions is recognised as past due.

30 September 2012:

(Unaudited)	Not past due
In billions of Russian roubles	loans	Past due loans	Total
Commercial loans to legal entities	4 721,1	253,0	4 974,1
Specialised loans to legal entities	2 698,8	129,8	2 828,6
Сonsumer and other loans to individuals	1 422,8	90,6	1 513,4
Mortgage loans to individuals	1 008,7	50,3	1 059,0
Car loans to individuals	110,7	5,1	115,8
Total loans and advances to customers before provision for loan
impairment	9 962,1	528,8	10 490,9
Less: Provision for loan impairment	(245,7)	(326,5)	(572,2)
Total loans and advances to customers net of provision for loan impairment	9 716,4	202,3	9 918,7
31 December 2011:
	Not past due
In billions of Russian roubles	loans	Past due loans	Total
Commercial loans to legal entities	3 828,8	184,1	4 012,9
Specialised loans to legal entities	2 347,9	215,8	2 563,7
Сonsumer and other loans to individuals	898,7	45,3	944,0
Mortgage loans to individuals	741,6	35,8	777,4
Car loans to individuals	80,7	3,5	84,2
Total loans and advances to customers before provision for loan
impairment	7 897,7	484,5	8 382,2
Less: Provision for loan impairment	(281,6)	(380,9)	(662,5)
Total loans and advances to customers net of provision for loan
impairment	7 616,1	103,6	7 719,7

7 Loans and Advances to Customers (Continued)

Commercial lending to legal entities comprises corporate loans, loans to individual entrepreneurs, federal bodies and municipal authorities of the Russian Federation. Loans are granted for current needs (working capital financing, acquisition of movable and immovable property, portfolio investments, expansion and consolidation of business, etc.). Majority of commercial loans are provided for periods up to 5 years depending on the borrowers' risk assessment. Commercial lending also includes overdraft lending and lending for export‐import transactions. The repayment source is cash flow from current production and financial activities of the borrower.

Specialised lending to legal entities includes investment and construction project financing and also developers' financing. As a rule, loan terms are linked to payback periods of investment and construction projects, contract execution periods and exceed the terms of commercial loans to legal entities. The principal and interest may be repaid from cash flows generated by the investment project at the stage of its commercial operation.

Consumer and other individual loans comprise loans to individuals other than housing acquisition, construction and repair of real estate as well as car loans. These loans include loans for current needs and overdrafts.

Mortgage loans to individuals include loans for acquisition, construction and reconstruction of real estate. These loans are mostly long‐term and are collateralized by real estate.

Car loans to individuals include loans for purchasing a car or other vehicle. Car loans are provided for periods of up to 5 years.

7 Loans and Advances to Customers (Continued)

The table below shows the analysis of loans and provisions for loan impairment as at 30 September 2012:

				Provision for
(Unaudited)		Provision for		impairment to
In billions of Russian roubles	Gross loans	impairment	Net loans	gross loans
Commercial loans to legal entities
Collectively assessed
Not past due	4 665,0	(115,4)	4 549,6	2.5%
Loans up to 30 days overdue	30,2	(3,9)	26,3	12.9%
Loans 31 to 60 days overdue	11,3	(3,2)	8,1	28.3%
Loans 61 to 90 days overdue	6,5	(2,1)	4,4	32.3%
Loans 91 to 180 days overdue	15,8	(9,7)	6,1	61.4%
Loans over 180 days overdue	131,7	(122,8)	8,9	93.2%
Total collectively assessed loans	4 860,5	(257,1)	4 603,4	5.3%
Individually impaired
Not past due	56,1	(13,6)	42,5	24.2%
Loans up to 30 days overdue	4,1	(0,4)	3,7	9.8%
Loans 31 to 60 days overdue	4,3	(2,7)	1,6	62.8%
Loans 61 to 90 days overdue	2,0	(0,9)	1,1	45.0%
Loans 91 to 180 days overdue	11,9	(5,5)	6,4	46.2%
Loans over 180 days overdue	35,2	(30,1)	5,1	85.5%
Total individually impaired loans	113,6	(53,2)	60,4	46.8%
Total commercial loans to legal entities	4 974,1	(310,3)	4 663,8	6.2%
Specialised loans to legal entities
Collectively assessed
Not past due	2 621,7	(88,5)	2 533,2	3.4%
Loans up to 30 days overdue	23,5	(3,1)	20,4	13.2%
Loans 31 to 60 days overdue	6,9	(1,6)	5,3	23.2%
Loans 61 to 90 days overdue	1,1	(0,6)	0,5	54.5%
Loans 91 to 180 days overdue	4,0	(1,9)	2,1	47.5%
Loans over 180 days overdue	51,8	(45,1)	6,7	87.1%
Total collectively assessed loans	2 709,0	(140,8)	2 568,2	5.2%
Individually impaired
Not past due	77,1	(25,7)	51,4	33.3%
Loans up to 30 days overdue	4,1	‐	4,1	‐
Loans 31 to 60 days overdue	0,1	‐	0,1	‐
Loans 61 to 90 days overdue	1,8	(1,2)	0,6	66.7%
Loans 91 to 180 days overdue	2,5	(1,3)	1,2	52.0%
Loans over 180 days overdue	34,0	(26,9)	7,1	79.1%
Total individually impaired loans	119,6	(55,1)	64,5	46.1%
Total specialised loans to legal entities	2 828,6	(195,9)	2 632,7	6.9%
Total loans to legal entities	7 802,7	(506,2)	7 296,5	6.5%

7 Loans and Advances to Customers (Continued)

				Provision for
(Unaudited)		Provision for		impairment to
In billions of Russian roubles	Gross loans	impairment	Net loans	gross loans
Consumer and other loans to
individuals
Collectively assessed
Not past due	1 422,8	(1,8)	1 421,0	0.1%
Loans up to 30 days overdue	37,2	(1,6)	35,6	4.3%
Loans 31 to 60 days overdue	10,2	(1,6)	8,6	15.7%
Loans 61 to 90 days overdue	5,6	(1,7)	3,9	30.4%
Loans 91 to 180 days overdue	7,9	(5,0)	2,9	63.3%
Loans over 180 days overdue	29,7	(26,8)	2,9	90.2%
Total consumer and other loans to individuals	1 513,4	(38,5)	1 474,9	2.5%
Mortgage loans to individuals
Collectively assessed
Not past due	1 008,7	(0,6)	1 008,1	0.1%
Loans up to 30 days overdue	16,8	(0,5)	16,3	3.0%
Loans 31 to 60 days overdue	4,7	(0,3)	4,4	6.4%
Loans 61 to 90 days overdue	2,4	(0,3)	2,1	12.5%
Loans 91 to 180 days overdue	2,4	(0,9)	1,5	37.5%
Loans over 180 days overdue	24,0	(22,7)	1,3	94.6%
Total mortgage loans to individuals	1 059,0	(25,3)	1 033,7	2.4%
Car loans to individuals
Collectively assessed
Not past due Loans up to 30 days overdue	110,7 2,2	(0,1) (0,1)	110,6 2,1	0.1% 4.5%
Loans 31 to 60 days overdue	0,5	‐	0,5	‐
Loans 61 to 90 days overdue	0,2	‐	0,2	‐
Loans 91 to 180 days overdue	0,2	(0,1)	0,1	50.0%
Loans over 180 days overdue	2,0	(1,9)	0,1	95.0%
Total car loans to individuals	115,8	(2,2)	113,6	1.9%
Total loans to individuals	2 688,2	(66,0)	2 622,2	2.5%
Total loans and advances to customers as at 30 September 2012	10 490,9	(572,2)	9 918,7	5.5%

7 Loans and Advances to Customers (Continued)

The table below shows the analysis of loans and provisions for loan impairment as at 31 December 2011:

				Provision for
		Provision for		impairment to
In billions of Russian roubles	Gross loans	impairment	Net loans	gross loans
Commercial loans to legal entities
Collectively assessed
Not past due	3 795,5	(117,4)	3 678,1	3.1%
Loans up to 30 days overdue	11,3	(3,1)	8,2	27.4%
Loans 31 to 60 days overdue	4,7	(2,2)	2,5	46.8%
Loans 61 to 90 days overdue	3,4	(1,8)	1,6	52.9%
Loans 91 to 180 days overdue	7,4	(4,8)	2,6	64.9%
Loans over 180 days overdue	115,6	(111,8)	3,8	96.7%
Total collectively assessed loans	3 937,9	(241,1)	3 696,8	6.1%
Individually impaired
Not past due	33,3	(22,3)	11,0	67.0%
Loans up to 30 days overdue	7,0	(7,0)	‐	100.0%
Loans 31 to 60 days overdue	0,5	(0,2)	0,3	40.0%
Loans 61 to 90 days overdue	4,1	(0,3)	3,8	7.3%
Loans 91 to 180 days overdue	0,1	‐	0,1	‐
Loans over 180 days overdue	30,0	(28,7)	1,3	95.7%
Total individually impaired loans	75,0	(58,5)	16,5	78.0%
Total commercial loans to legal entities	4 012,9	(299,6)	3 713,3	7.5%
Specialised loans to legal entities
Collectively assessed
Not past due	2 276,1	(86,7)	2 189,4	3.8%
Loans up to 30 days overdue	5,2	(0,8)	4,4	15.4%
Loans 31 to 60 days overdue	3,3	(1,2)	2,1	36.4%
Loans 61 to 90 days overdue	1,6	(0,7)	0,9	43.8%
Loans 91 to 180 days overdue	2,1	(1,3)	0,8	61.9%
Loans over 180 days overdue	59,3	(52,8)	6,5	89.0%
Total collectively assessed loans	2 347,6	(143,5)	2 204,1	6.1%
Individually impaired
Not past due	71,8	(38,7)	33,1	53.9%
Loans up to 30 days overdue	4,0	(2,8)	1,2	70.0%
Loans 31 to 60 days overdue	2,2	(1,6)	0,6	72.7%
Loans 91 to 180 days overdue	0,4	(0,3)	0,1	75.0%
Loans over 180 days overdue	137,7	(106,8)	30,9	77.6%
Total individually impaired loans	216,1	(150,2)	65,9	69.5%
Total specialised loans to legal entities	2 563,7	(293,7)	2 270,0	11.5%
Total loans to legal entities	6 576,6	(593,3)	5 983,3	9.0%

7 Loans and Advances to Customers (Continued)

				Provision for
		Provision for		impairment to
In billions of Russian roubles	Gross loans	impairment	Net loans	gross loans
Consumer and other loans to
individuals
Collectively assessed
Not past due	898,7	(10,9)	887,8	1.2%
Loans up to 30 days overdue	12,5	(0,2)	12,3	1.6%
Loans 31 to 60 days overdue	3,1	(0,2)	2,9	6.5%
Loans 61 to 90 days overdue	1,7	(0,2)	1,5	11.8%
Loans 91 to 180 days overdue	2,8	(0,6)	2,2	21.4%
Loans over 180 days overdue	25,2	(25,2)	‐	100.0%
Total consumer and other loans to individuals	944,0	(37,3)	906,7	4.0%
Mortgage loans to individuals
Collectively assessed
Not past due	741,6	(4,6)	737,0	0.6%
Loans up to 30 days overdue	8,2	(0,2)	8,0	2.4%
Loans 31 to 60 days overdue	2,0	(0,2)	1,8	10.0%
Loans 61 to 90 days overdue	0,9	(0,1)	0,8	11.1%
Loans 91 to 180 days overdue	1,3	(0,3)	1,0	23.1%
Loans over 180 days overdue	23,4	(23,4)	‐	100.0%
Total mortgage loans to individuals	777,4	(28,8)	748,6	3.7%
Car loans to individuals
Collectively assessed
Not past due	80,7	(1,0)	79,7	1.2%
Loans up to 30 days overdue	1,0	‐	1,0	‐
Loans 31 to 60 days overdue	0,2	‐	0,2	‐
Loans 61 to 90 days overdue	0,1	‐	0,1	‐
Loans 91 to 180 days overdue	0,1	‐	0,1	‐
Loans over 180 days overdue	2,1	(2,1)	‐	100.0%
Total car loans to individuals	84,2	(3,1)	81,1	3.7%
Total loans to individuals	1 805,6	(69,2)	1 736,4	3.8%
Total loans and advances to customers as at 31 December 2011	8 382,2	(662,5)	7 719,7	7.9%

7 Loans and Advances to Customers (Continued)

As defined by the Group for the purposes of internal credit risk assessment, loans fall into the "non‐performing" category when a principal and/or interest payment becomes more than 90 days overdue.

As at 30 September 2012 the outstanding non‐performing loans were as follows:

(Unaudited)		Provision for		Provision for impairment to
In billions of Russian roubles	Gross loans	impairment	Net loans	gross loans
Commercial loans to legal entities	194,6	(168,1)	26,5	86.4%
Specialised loans to legal entities	92,3	(75,2)	17,1	81.5%
Сonsumer and other loans to individuals	37,6	(31,8)	5,8	84.6%
Mortgage loans to individuals	26,4	(23,6)	2,8	89.4%
Car loans to individuals	2,2	(2,0)	0,2	90.9%
Total non‐performing loans and advances to customers as at 30 September 2012	353,1	(300,7)	52,4	85.2%

As at 31 December 2011 the outstanding non‐performing loans were as follows:

In billions of Russian roubles	Gross loans	Provision for impairment	Net loans	Provision for impairment to gross loans
Commercial loans to legal entities	153,1	(145,3)	7,8	94.9%
Specialised loans to legal entities	199,5	(161,2)	38,3	80.8%
Сonsumer and other loans to individuals	28,0	(25,8)	2,2	92.1%
Mortgage loans to individuals	24,7	(23,7)	1,0	96.0%
Car loans to individuals	2,2	(2,1)	0,1	95.5%
Total non‐performing loans and advances to customers as at 31 December 2011	407,5	(358,1)	49,4	87.9%

Provisions for Loan Impairment. The analysis of changes in provisions for loan impairment for the nine months ended 30 September 2012 is presented in the table below:

(Unaudited) In billions of Russian roubles	Commercial loans to legal entities	Specialised loans to legal entities	Сonsumer and other loans to individuals	Mortgage loans to individuals	Car loans to individuals	Total
Provision for loan impairment as at
1 January 2012	299,6	293,7	37,3	28,8	3,1	662,5
Net provision charge/ (net recovery of provision) for loan impairment
during the reporting period	30,6	(19,5)	2,8	(2,6)	(0,7)	10,6
Foreign currencies translation	(0,1)	(0,1)	‐	(0,2)	‐	(0,4)
Loans and advances written off
during the reporting period	(19,8)	(78,2)	(1,6)	(0,7)	(0,2)	(100,5)
Provision for loan impairment as at 30 September 2012	310,3	195,9	38,5	25,3	2,2	572,2

7 Loans and Advances to Customers (Continued)

The analysis of changes in provisions for loan impairment for the three months ended 30 September 2012 is presented in the table below:

(Unaudited) In billions of Russian roubles	Commercial loans to legal entities	Specialised loans to legal entities	Сonsumer and other loans to individuals	Mortgage loans to individuals	Car loans to individuals	Total
Provision for loan impairment as at
1 July 2012	301,8	190,8	39,7	27,8	2,6	562,7
Net provision charge / (net recovery
of provision) for loan impairment
during the reporting period	7,1	7,2	(0,1)	(2,2)	(0,3)	11,7
Foreign currencies translation	(0,2)	(0,1)	‐	(0,2)	‐	(0,5)
Loans and advances written off
during the reporting period	1,6	(2,0)	(1,1)	(0,1)	(0,1)	(1,7)
Provision for loan impairment as at 30 September 2012	310,3	195,9	38,5	25,3	2,2	572,2

The analysis of changes in provisions for loan impairment for the nine months ended 30 September 2011 is presented in the table below:

(Unaudited) In billions of Russian roubles	Commercial loans to legal entities	Specialised loans to legal entities	Сonsumer and other loans to individuals	Mortgage loans to individuals	Car loans to individuals	Total
Provision for loan impairment as at
1 January 2011	312,9	320,8	36,1	29,3	3,4	702,5
Net provision charge / (net recovery
of provision) for loan impairment
during the reporting period	8,3	(31,6)	4,2	2,4	(0,1)	(16,8)
Foreign currencies translation	(0,4)	(0,7)	(0,1)	0,1	‐	(1,1)
Loans and advances written off
during the reporting period	(17,5)	(6,3)	(1,0)	(1,0)	(0,1)	(25,9)
Provision for loan impairment as at
30 September 2011	303,3	282,2	39,2	30,8	3,2	658,7

7 Loans and Advances to Customers (Continued)

The analysis of changes in provisions for loan impairment for the three months ended 30 September 2011 is presented in the table below:

(Unaudited) In billions of Russian roubles	Commercial loans to legal entities	Specialised loans to legal entities	Сonsumer and other loans to individuals	Mortgage loans to individuals	Car loans to individuals	Total
Provision for loan impairment as at
1 July 2011	298,7	292,1	36,5	29,3	3,3	659,9
Net provision charge/ (net recovery of provision) for loan impairment
during the reporting period	11,0	(10,3)	3,1	1,7	(0,1)	5,4
Foreign currencies translation	‐	0,7	0,1	0,3	‐	1,1
Loans and advances written off
during the reporting period	(6,4)	(0,3)	(0,5)	(0,5)	‐	(7,7)
Provision for loan impairment as at 30 September 2011	303,3	282,2	39,2	30,8	3,2	658,7

Renegotiated loans. Information on loans whose terms have been renegotiated, as at 30 September 2012 and 31 December 2011 is presented in the table below. It shows the amount for renegotiated loans before provision for loan impairment by class.

In billions of Russian roubles	Commercial loans to legal entities	Specialised loans to legal entities	Сonsumer and other loans to individuals	Mortgage loans to individuals	Car loans to individuals	Total
30 September 2012: (Unaudited)
Not past due collectively
assessed loans	485,0	363,8	2,6	7,8	0,5	859,7
Other renegotiated loans	96,9	53,9	2,2	6,0	0,6	159,6
Total renegotiated loans before
provision for loan impairment	581,9	417,7	4,8	13,8	1,1	1 019,3
31 December 2011:
Not past due collectively
assessed loans	552,0	329,5	7,0	5,4	0,5	894,4
Other renegotiated loans	85,1	42,1	3,3	6,0	0,7	137,2
Total renegotiated loans before
provision for loan impairment	637,1	371,6	10,3	11,4	1,2	1 031,6

7 Loans and Advances to Customers (Continued)

Investments in finance lease. Included in specialised loans to legal entities are net investments in finance lease. The analysis of net investments in finance lease as at 30 September 2012 and as at 31 December 2011 is as follows:

In billions of Russian roubles	30 September 2012 (Unaudited)	31 December 2011
Gross investment in finance lease Unearned future finance income on finance lease	156,9 (45,7)	134,9 (46,6)
Net investment in finance lease before provision for impairment	111,2	88,3
Less provision for impairment	(2,8)	(2,3)
Net investment in finance lease after provision for impairment	108,4	86,0

The contractual maturity analysis of net investments in finance lease as at 30 September 2012 is as follows:

(Unaudited) In billions of Russian roubles	Net investment in finance lease before provision for impairment	Provision for impairment	Net investment in finance lease after provision for impairment
Not later than 1 year	39,1	(0,9)	38,2
Later than 1 year but not later than 5 years	61,4	(1,6)	59,8
Later than 5 years	10,7	(0,3)	10,4
Total as at 30 September 2012	111,2	(2,8)	108,4

The contractual maturity analysis of net investments in finance lease as at 31 December 2011 is as follows:

In billions of Russian roubles	Net investment in finance lease before provision for impairment	Provision for impairment	Net investment in finance lease after provision for impairment
Not later than 1 year	26,6	(0,7)	25,9
Later than 1 year but not later than 5 years	48,9	(1,3)	47,6
Later than 5 years	12,8	(0,3)	12,5
Total as at 31 December 2011	88,3	(2,3)	86,0

7 Loans and Advances to Customers (Continued)

The analysis of minimal finance lease receivables as at 30 September 2012 and as at 31 December 2011 per contractual maturity is as follows:

In billions of Russian roubles	30 September 2012 (Unaudited)	31 December 2011
Not later than 1 year	44,4	28,5
Later than 1 year but not later than 5 years	84,1	72,0
Later than 5 years	28,4	34,4
Total	156,9	134,9

Economic sector risk concentration. Economic sector risk concentrations within the customer loan portfolio as at 30 September 2012 and as at 31 December 2011 are as follows:

	30 September 2012		31 December 2011
	(Unaudited)
In billions of Russian roubles	Amount	%	Amount	%
Individuals	2 688,2	25.6	1 805,6	21.5
Services	1 912,4	18.2	1 658,5	19.8
Trade	1 296,1	12.4	1 134,8	13.5
Food and agriculture	830,1	7.9	703,9	8.4
Energy	494,7	4.7	379,9	4.5
Machine building	486,9	4.6	355,6	4.2
Telecommunications	458,9	4.4	332,0	4.0
Construction	406,4	3.9	451,3	5.4
Metallurgy	399,8	3.8	299,4	3.6
Chemical industry	378,5	3.6	340,2	4.1
Transport, aviation, space industry	339,5	3.2	285,4	3.4
Government and municipal bodies	260,8	2.5	268,1	3.2
Oil and gas	177,2	1.7	164,7	2.0
Timber industry	73,8	0.7	50,4	0.6
Other	287,6	2.8	152,4	1.8
Total loans and advances to customers before provision for loan impairment	10 490,9	100.0	8 382,2	100.0

"Services" category includes financial, insurance and other service companies, as well as loans granted to holding and multi‐industry companies.

As at 30 September 2012 the Group had 20 largest corporate borrowers with aggregated loan amounts due from each of these borrowers exceeding RR 56,3 billion (31 December 2011: 20 largest borrowers with loan amounts due from each of these borrowers exceeding RR 47,9 billion). The total aggregate amount of these loans was RR 2 092,5 billion or 19.9% of the total gross loan portfolio of the Group (31 December 2011: RR 1 956,2 billion or 23.3%).

8 Securities Pledged under Repurchase Agreements

	30 September	31 December
	2012	2011
In billions of Russian roubles	(Unaudited)
Trading securities pledged under repurchase agreements
Corporate shares	26,1	34,3
Corporate bonds	16,7	6,1
Russian Federation Eurobonds	5,8	7,0
Federal loan bonds (OFZ bonds)	3,2	0,4
Foreign government bonds	0,4	‐
Municipal and subfederal bonds	0,1	‐
Investments in mutual funds	‐	0,3
Total trading securities pledged under repurchase agreements	52,3	48,1
Securities designated at fair value through profit or loss pledged under repurchase agreements
Federal loan bonds (OFZ bonds)	2,7	8,1
Corporate shares	0,9	1,3
Total securities designated at fair value through profit or loss pledged under
repurchase agreements	3,6	9,4
Investment securities available for sale pledged under repurchase agreements
Federal loan bonds (OFZ bonds)	245,8	25,5
Russian Federation Eurobonds	32,5	29,4
Corporate bonds	27,8	30,8
Foreign government bonds	21,8	0,3
Corporate shares	10,2	20,1
Total investment securities available for sale pledged under repurchase agreements	338,1	106,1
Investment securities held to maturity pledged under repurchase agreements
Federal loan bonds (OFZ bonds)	67,6	136,4
Municipal and subfederal bonds	36,6	‐
Corporate bonds	8,5	0,8
Total investment securities held to maturity pledged under repurchase agreements	112,7	137,2
Total securities pledged under repurchase agreements	506,7	300,8

As at 30 September 2012 included in Securities pledged under repurchase agreements are securities pledged under sale and repurchase agreements with corporate customers; correspondent deposits are included in Due to corporate customers in the amount of RR 22,1 billion (31 December 2011: RR 38,1 billion). Refer to Note 12.

Included in Securities pledged under repurchase agreements are also securities pledged under sale and repurchase agreements with banks; correspondent deposits are included in Due to banks in the amount of RR 443,7 billion (31 December 2011: RR 220,9 billion).

9 Investment Securities Available for Sale

In billions of Russian roubles	30 September 2012 (Unaudited)	31 December 2011
Corporate bonds	396,5	320,3
Federal loan bonds (OFZ bonds)	221,3	410,9
Foreign government bonds	138,4	22,0
Russian Federation Eurobonds	98,0	23,6
Municipal and subfederal bonds	43,9	47,6
Total debt investment securities available for sale	898,1	824,4
Corporate shares	34,5	60,1
Total investment securities available for sale	932,6	884,5

10 Investment Securities Held to Maturity

In billions of Russian roubles	30 September 2012 (Unaudited)	31 December 2011
Corporate bonds	125,5	130,1
Federal loan bonds (OFZ bonds)	110,5	74,7
Municipal and subfederal bonds	30,7	79,6
Foreign government bonds	6,2	0,1
Promissory notes	‐	2,0
Total investment securities held to maturity	272,9	286,5

11 Other Assets

	30 September	31 December
	2012	2011
In billions of Russian roubles	(Unaudited)
Other financial assets
Receivables on plastic cards settlements	80,3	78,8
Derivative financial instruments	66,6	51,1
Settlements on operations with securities	15,7	15,2
Settlements on currency conversion operations	7,6	6,5
Accrued fees and commissions	3,7	3,9
Trade receivables	3,1	2,7
Funds in settlement	3,1	0,2
Other financial assets	10,2	6,9
Provision for impairment of other financial assets	(2,4)	(2,2)
Total other financial assets	187,9	163,1
Other non‐financial assets
Precious metals	92,6	66,0
Inventory of non‐banking subsidiaries	52,8	12,7
Prepayments for premises and other assets	50,2	29,9
Goodwill	38,2	15,1
Intangible assets acquired through business combinations	23,5	12,2
Investment property	16,9	11,8
Non‐exclusive licences	9,9	8,9
Investments in associates	6,9	4,7
Prepaid expenses	6,3	3,8
Tax settlements (other than on income)	6,0	9,8
Non‐current assets held for sale and assets of the disposal group	5,6	14,4
Prepayment on income tax	1,3	1,5
Other non‐financial assets	15,8	10,0
Provision for impairment of other non‐financial assets	(7,3)	(3,9)
Total other non‐financial assets	318,7	196,9
Total other assets	506,6	360,0

As at 30 September 2012 included in assets of the disposal group were assets of Vester Retail N.V., a company specializing in retail trading. In October 2012 the Group signed an agreement on the sale of 38% share in Vester Retail N.V. According to the agreement the sale must be completed by December 2012. Also in October 2012 the Group signed an agreement on the sale of the remaining 16% share in Vester Retail N.V. which must be completed by March 2013. Refer to Note 28.

As at 31 December 2011 included in assets of the disposal group were assets of OJSC Holding company GVSU Center. In January 2012 the Group signed an agreement for sale of 74.5% share of OJSC Holding company GVSU Center. The settlement took place in February 2012. As a result the Group lost control over subsidiaries of OJSC Holding company GVSU Center. Also in February 2012 the Group signed an agreement for sale of the remaining 25.5% share. Refer to Note 26.

12 Due to Individuals and Corporate Customers

In billions of Russian roubles	30 September 2012 (Unaudited)	31 December 2011
Individuals:
‐ Current/demand accounts	1 179,8	1 077,0
‐ Term deposits	5 324,0	4 649,3
Total due to individuals	6 503,8	5 726,3
State and public organisations:
‐ Current/settlement accounts	146,9	142,2
‐ Term deposits	354,9	39,6
Total due to state and public organisations	501,8	181,8
Other corporate customers:
‐ Current/settlement accounts	1 138,2	1 230,1
‐ Term deposits	1 377,6	793,9
Total due to other corporate customers	2 515,8	2 024,0
Total due to corporate customers	3 017,6	2 205,8
Total due to individuals and corporate customers	9 521,4	7 932,1

Economic sector concentrations within customer accounts are as follows:

	30 September 2012 (Unaudited)		31 December 2011
In billions of Russian roubles	Amount	%	Amount	%
Individuals	6 503,8	68.3	5 726,3	72.2
Services	678,9	7.1	450,2	5.7
Oil and gas	489,5	5.1	311,9	3.9
Municipal bodies and state organisations	373,0	3.9	58,3	0.7
Trade	351,6	3.7	305,6	3.9
Construction	201,6	2.1	182,7	2.3
Machine building	141,2	1.5	132,2	1.7
Transport, aviation, space industry	125,3	1.3	79,7	1.0
Energy	105,4	1.1	122,2	1.5
Chemical	94,2	1.0	56,3	0.7
Metallurgy	81,3	0.9	43,3	0.5
Food and agriculture	80,0	0.8	61,7	0.8
Telecommunications	53,0	0.6	48,7	0.6
Timber industry	22,3	0.2	17,2	0.2
Other	220,3	2.4	335,8	4.3
Total due to individuals and corporate
customers	9 521,4	100.0	7 932,1	100.0

12 Due to Individuals and Corporate Customers (Continued)

As at 30 September 2012 included in term deposits of corporate customers are deposits in the amount of RR 22,1 billion (31 December 2011: RR 38,1 billion) received under sale and repurchase agreements with legal entities. Fair value of securities collateralised under these agreements amounted to RR 27,1 billion and was included in securities pledged under repurchase agreements (31 December 2011: RR 46,1 billion). Refer to Note 8.

Included in term deposits of corporate customers are deposits in the amount of RR 5,8 billion (31 December 2011: RR 3,9 billion) under sale and repurchase agreements which are collateralised with securities of clients. Fair value of such securities totalled RR 9,0 billion (31 December 2011: RR 5,1 billion).

As at 30 September 2012 included in Due to corporate customers are deposits of RR 74,9 billion (31 December 2011: RR 95,0 billion) held as collateral for irrevocable commitments under import letters of credit. Refer to Note 23.

As at 30 September 2012 the Group had 20 largest customers with balances above RR 11,2 billion (31 December 2011: 20 customers with balances above RR 11,5 billion). The aggregate balance of these customers was RR 1 055,1 billion (31 December 2011: RR 621,1 billion) or 11.1% (31 December 2011: 7.8%) of total due to individuals and corporate customers.

13 Debt Securities in Issue

	30 September 2012	31 December 2011
In billions of Russian roubles	(Unaudited)
Loan participation notes issued under the MTN programme	312,6	169,6
Savings certificates	143,6	9,8
Promissory notes	109,8	77,2
Other bonds issued	30,2	9,9
Structured notes	1,0	1,5
Deposits certificates	0,1	0,7
Total debt securities in issue	597,3	268,7

In February 2012 the Group issued the eighth series of loan participation notes under the MTN issuance programme in the amount of USD 1 billion equivalent to RR 30,2 billion as at the date of issue. The notes mature in February 2017 and have contractual fixed interest rate of 5.0% p.a. In August 2012 the Group issued additional notes for USD 0,3 billion (equivalent to RR 9,6 billion as at the date of issue) which form a single series with the eighth series issue and have the same interest rate and maturity. As at 30 September 2012 the notes were accounted for at amortised cost of RR 40,6 billion; the effective interest rate on the notes was 4.8% p.a.

In February 2012 the Group issued the ninth series of loan participation notes under the MTN issuance programme in the amount of USD 0,75 billion equivalent to RR 22,7 billion as at the date of issue. The notes mature in February 2022 and have contractual fixed interest rate of 6.1% p.a. In July 2012 the Group issued additional notes for USD 0,75 billion (equivalent to RR 24,3 billion as at the date of issue) which form a single series with the ninth series issue and have the same interest rate and maturity. As at 30 September 2012 the notes were accounted for at amortised cost of RR 48,5 billion; the effective interest rate on the notes was 5.6% p.a.

In March 2012 the Group issued the tenth series of loan participation notes under the MTN issuance programme in the amount of CHF 0,41 billion equivalent to RR 13,2 billion as at the date of issue. The notes mature in September 2015 and have contractual fixed interest rate of 3.1% p.a. As at 30 September 2012 the notes were accounted for at amortised cost of RR 13,4 billion; the effective interest rate on the notes was 3.2% p.a.

13 Debt Securities in Issue (continued)

In June 2012 the Group issued the eleventh series of loan participation notes under the MTN issuance programme in the amount of USD 1 billion equivalent to RR 32,8 billion as at the date of issue. The notes mature in June 2019 and have contractual fixed interest rate of 5.2% p.a. As at 30 September 2012 the notes were accounted for at amortised cost of RR 31,1 billion; the effective interest rate on the notes was 5.3% p.a.

Other bonds issued represent interest‐bearing securities issued by the Group, denominated in Turkish lira, Belorussian roubles, Kazakh tenge, US dollars and euro.

14 Other Liabilities

In billions of Russian roubles	30 September 2012 (Unaudited)	31 December 2011
Other financial liabilities
Payables on plastic card settlements	81,5	45,8
Short position on securities	56,2	67,4
Derivative financial instruments	33,3	26,7
Funds in settlement	20,9	10,1
Settlements on operations with securities	20,7	10,5
Deferred consideration on acquisition of subsidiaries	10,5	36,1
Deposit insurance system fees payable	6,0	5,2
Trade payables	5,8	13,1
Deferred commissions received on guarantees issued	1,3	1,4
Other	14,3	6,5
Total other financial liabilities	250,5	222,8
Other non‐financial liabilities
Accrued employee benefit costs	51,2	17,9
Taxes payable other than on income	17,4	9,5
Income tax payable	5,6	1,5
Liabilities of the disposal group	5,5	8,5
Advances received	1,5	1,8
Deferred gains on initial recognition of financial instruments	0,4	0,8
Other	10,4	2,4
Total other non‐financial liabilities	92,0	42,4
Total other liabilities	342,5	265,2

As at 30 September 2012 included in liabilities of the disposal group were liabilities of Vester Retail N.V., a company specializing in retail trading. In October 2012 the Group signed an agreement on the sale of 38% share in Vester Retail N.V. According to the agreement the sale must be completed by December 2012. Also in October 2012 the Group signed an agreement on the sale of the remaining 16% share in Vester Retail N.V. which must be completed by March 2013. Refer to Note 28.

14 Other Liabilities (continued)

As at 31 December 2011 included in liabilities of the disposal group were liabilities of OJSC Holding company GVSU Center. In January 2012 the Group signed an agreement for sale of 74.5% share of OJSC Holding company GVSU Center. The settlement took place in February 2012. As a result the Group lost control over subsidiaries of OJSC Holding company GVSU Center. Also in February 2012 the Group signed an agreement for sale of the remaining 25.5% share. Refer to Note 26.

15 Interest Income and Expense

(Unaudited)	Nine months ended 30 September		Three months ended 30 September
In billions of Russian roubles	2012	2011	2012	2011
Interest income
Interest income on financial assets carried at amortised cost and on financial assets available for sale:
‐ Loans and advances to customers	732,4	532,3	265,6	186,3
‐ Debt investment securities available for sale	53,2	51,2	20,4	16,2
‐ Debt investment securities held to maturity	21,9	19,6	7,2	6,8
‐ Due from banks	3,5	6,0	0,4	2,1
‐ Correspondent accounts with banks	0,5	0,1	0,3	‐
	811,5	609,2	293,9	211,4
Interest income on financial assets carried at
fair value through profit or loss:
‐ Debt trading securities	3,8	3,1	1,6	1,0
‐ Debt securities designated at fair value
through profit or loss	1,3	2,9	0,3	0,9
‐ Other interest income	0,1	‐	0,1	‐
	5,2	6,0	2,0	1,9
Total interest income	816,7	615,2	295,9	213,3
Interest expense
Term deposits of individuals	(167,4)	(141,0)	(57,7)	(45,2)
Term deposits of legal entities	(44,0)	(18,3)	(17,9)	(7,0)
Term placements of banks	(29,3)	(1,3)	(14,1)	(0,3)
Debt securities in issue	(15,8)	(9,6)	(6,9)	(3,4)
Subordinated debt	(15,2)	(14,6)	(5,1)	(5,0)
Current/settlement accounts of legal entities	(12,3)	(7,5)	(4,3)	(2,4)
Current/demand accounts of individuals	(5,8)	(3,1)	(2,1)	(1,2)
Other borrowed funds	(4,3)	(2,7)	(1,4)	(0,8)
Correspondent accounts of banks	(0,8)	(0,3)	(0,2)	(0,1)
Other interest expense	(0,5)	‐	(0,5)	‐
Total interest expense	(295,4)	(198,4)	(110,2)	(65,4)
Expenses directly attributable to deposit insurance	(17,5)	(14,8)	(6,1)	(5,1)
Net interest income	503,8	402,0	179,6	142,8

16 Fee and Commission Income and Expense

(Unaudited)	Nine months ended 30 September		Three months ended 30 September
In billions of Russian roubles	2012	2011	2012	2011
Fee and commission income
Cash and settlements transactions with
individuals	34,7	31,2	12,6	10,4
Plastic cards operations	34,4	22,8	12,7	8,9
Cash and settlements transactions with legal
entities	33,6	30,5	12,1	11,0
Agent commissions on selling insurance
contracts	12,9	9,3	4,1	3,0
Guarantees issued	4,8	2,7	1,7	1,1
Operations with foreign currencies	4,1	5,0	1,1	2,0
Cash collection	3,6	3,4	1,3	1,2
Transactions with securities	1,7	0,7	0,5	0,2
Other	2,1	1,8	0,5	0,7
Total fee and commission income	131,9	107,4	46,6	38,5
Fee and commission expense
Settlement transactions	(7,7)	(5,0)	(2,9)	(1,9)
Operations with foreign currencies	(0,3)	(0,2)	(0,1)	‐
Cash collection	(0,2)	(0,2)	(0,1)	(0,1)
Other	(3,6)	(2,1)	(1,7)	(0,8)
Total fee and commission expense	(11,8)	(7,5)	(4,8)	(2,8)
Net fee and commission income	120,1	99,9	41,8	35,7

17 Net Gains Arising from Trading in Foreign Currencies, Operations with Foreign Currency Derivatives and Foreign Exchange Translation Gains

(Unaudited)	Nine months ended 30 September		Three months ended 30 September
In billions of Russian roubles	2012	2011	2012	2011
Net gains arising from trading in foreign
currencies Net foreign exchange translation gains/(losses)	5,6 1,4	4,0 (6,0)	5,1 (4,6)	1,2 19,3
Net (losses)/gains from operations with foreign currency derivatives	(2,6)	6,6	2,5	(19,6)
Total net gains arising from trading in foreign currencies, operations with foreign currency derivatives and foreign exchange translation	4,4	4,6	3,0	0,9

18 Operating Expenses

(Unaudited)	Nine months ended 30 September		Three months ended 30 September
In billions of Russian roubles	2012	2011	2012	2011
Staff costs	178,9	147,1	60,2	48,6
Depreciation of premises and equipment	41,4	30,7	13,5	11,0
Administrative expenses	19,2	13,5	7,8	5,2
Repairs and maintenance of premises and
equipment	18,5	15,3	6,8	5,7
Taxes other than on income	12,2	8,1	4,3	3,1
Operating lease expenses for premises and
equipment	11,0	7,1	4,5	2,6
Telecommunication expenses	9,0	5,8	4,1	2,3
Advertising and marketing services	5,6	2,2	1,9	0,9
Consulting and assurance services	3,0	1,6	1,4	1,0
Other	15,8	8,0	4,8	3,9
Total operating expenses	314,6	239,4	109,3	84,3

19 Earnings per Share

Basic earnings per share is calculated by dividing the profit attributable to shareholders of the Bank by the weighted average number of ordinary shares in issue during the period, excluding treasury shares. The Bank has no dilutive potential ordinary shares; therefore the diluted earnings per share equals the basic earnings per share.

(Unaudited)	Nine months ended 30 September		Three months ended 30 September
In billions of Russian roubles	2012	2011	2012	2011
Profit for the reporting period attributable to
the shareholders of the Bank	263,3	256,3	87,7	79,8
Less preference dividends declared	(2,6)	(1,1)	‐	‐
Profit attributable to the ordinary shareholders of the Bank	260,7	255,2	87,7	79,8
Weighted average number of ordinary shares in issue (billions)	21,5	21,6	21,5	21,6
Earnings per ordinary share, basic and diluted (expressed in RR per share)	12.13	11.81	4.08	3.69

20 Dividends

(Unaudited)	Nine months ended 30 September 2012		Nine months ended 30 September 2011
In billions of Russian roubles	Ordinary	Preference	Ordinary	Preference
Dividends payable at 1 January Dividends declared during the nine months	0,1	‐	0,1	‐
ended 30 September	44,9	2,6	19,9	1,1
Dividends paid during the nine months ended 30 September	(44,8)	(2,5)	(19,8)	(1,1)
Dividends payable as at 30 September	0,2	0,1	0,2	‐
Dividends per share declared during the year (RR per share)	2.09	2.71	0.92	1.15

All dividends were declared and paid in Russian roubles.

21 Segment Analysis

For the purposes of management the Group is divided into operating segments of activity – central head office, 17 regional banks and subsidiaries – which are defined on the basis of organizational structure of the Group and geographical areas. The principal activity of all operating segments is banking operations. For the purposes of presentation in these condensed interim consolidated financial statements the operating segments are aggregated in the following reportable segments:

Moscow, including:

• ─ Central head office of the Group,
• ─ Regional bank of Moscow,
• ─ Subsidiaries of the Group located in the region.

Central and Northern regions of European part of Russia, including:

Regional banks:

• ─ Severny Yaroslavl,
• ─ Severo‐Zapadny Saint‐Petersburg,
• ─ Tsentralno‐Chernozemny Voronezh,
• ─ Srednerussky Moscow,

Subsidiaries of the Group located in the region.

Volga region and South of European part of Russia, including:

Regional banks:

• ─ Volgo‐Vyatsky Nizhniy Novgorod,
• ─ Povolzhsky Samara,
• ─ Severo‐Kavkazsky Stavropol,
• ─ Yugo‐Zapadny Rostov‐on‐Don,

Subsidiaries of the Group located in the region.

21 Segment Analysis (Continued)

Ural, Siberia and Far East of Russia, including:

Regional banks:

• ─ Zapadno‐Uralsky Perm,
• ─ Uralsky Ekaterinburg,
• ─ Sibirsky Novosibirsk,
• ─ Zapadno‐Sibirsky Tumen,
• ─ Severo‐Vostochny Magadan,
• ─ Dalnevostochny Khabarovsk,
• ─ Vostochno‐Sibirsky Krasnoyarsk,
• ─ Baikalsky Irkutsk,

Subsidiaries of the Group located in the region.

Other countries, including:

• ─ Subsidiaries located in Turkey,
• ─ Subsidiaries located in CIS (Ukraine, Kazakhstan, Belarus),
• ─ Subsidiaries located in Austria and Switzerland,
• ─ Subsidiaries of Sberbank Europe AG( former Volksbank International AG ("VBI")) located in Central and Eastern Europe,
• ─ Companies of Troika Dialog Group Ltd. located in the USA, the United Kingdom, Cyprus and certain other jurisdictions,
• ─ A branch office in India.

The Management of the Group analyses operating results of every segment of activity for the purposes of making decision about allocation of resources and assessment of segments' business results. The segments' reporting and operating results which are provided to the Management of the Group for analysis are prepared under Russian accounting standards, except the segments' reporting of the subsidiaries which is prepared under International Financial Reporting Standards.

Intersegment operations are performed on the basis of internal transfer pricing rates which are established, approved and regularly revised by the Management of the Group.

The subsidiaries' activity is controlled by the Group integrally.

Segment reporting of the Group's assets and liabilities as at 30 September 2012 is as follows:

(Unaudited) In billions of Russian roubles	Moscow	Central and Northern regions of European part of Russia	Volga region and South of European part of Russia	Ural, Siberia and Far East of Russia	Other countries	Total
Total assets	5 692,9	2 101,1	1 777,3	2 503,6	1 718,8	13 793,7
Total liabilities	5 063,4	2 174,1	1 578,5	2 016,7	1 433,6	12 266,3

21 Segment Analysis (Continued)

Segment reporting of the Group's assets and liabilities as at 31 December 2011 is as follows:

In billions of Russian roubles	Moscow	Central and Northern regions of European part of Russia	Volga region and South of European part of Russia	Ural, Siberia and Far East of Russia	Other countries	Total
Total assets	4 849,0	1 877,8	1 530,8	2 110,4	445,5	10 813,5
Total liabilities	3 825,7	2 045,3	1 434,0	1 876,4	349,5	9 530,9

Reconciliation of total assets and total liabilities as per the reportable segments with the Group's total assets and total liabilities under IFRS as of 30 September 2012 and 31 December 2011 is as follows:

	Total assets		Total liabilities
In billions of Russian roubles	30 September 2012 (Unaudited)	31 December 2011	30 September 2012 (Unaudited)	31 December 2011
Total amount per segment information	13 793,7	10 813,5	12 266,3	9 530,9
Adjustment of provisions	104,7	73,0	(17,9)	(17,2)
Additional interest accrued on loans	4,5	4,2	0,1	0,5
Deferred commission income on loans	(24,0)	(25,5)	0,3	0,7
Adjustment of depreciation and cost or revalued amount of premises and equipment including
effect of deferred tax	(66,7)	(51,2)	(2,5)	3,4
Loaned repo securities	(55,8)	‐	(55,8)	‐
Accounting for derivatives at fair value	1,9	17,4	1,0	17,2
Adjustment of income tax	‐	‐	13,3	18,9
Staff expenses accrued related to the reporting period (bonuses, annual leave, pension
liabilities)	0,4	0,2	20,5	13,8
Deferred comission income on guarantees	‐	‐	1,3	1,3
Other adjustments	(3,2)	3,5	5,2	(2,4)
The Group's total amount under IFRS	13 755,5	10 835,1	12 231,8	9 567,1

21 Segment Analysis (Continued)

Segment reporting of the Group's income and expenses for the nine months ended 30 September 2012 is as follows:

Moscow	Central and Northern regions of European part of Russia	Volga region and South of European part of Russia	Ural, Siberia and Far East of Russia	Other countries	Total
					805,9
					(295,1)
					‐
					133,6
					(12,0)
					3,4
7,4	3,0	1,9	2,2	(2,2)	12,3
0,2	‐	‐	‐	3,8	4,0
0,7	0,3	0,3	0,5	(0,8)	1,0
					28,1
197,3	154,4	124,5	181,4	23,6	681,2
(8,8)	(16,7)	(9,5)	(0,9)	(7,8)	(43,7)
188,5	137,7	115,0	180,5	15,8	637,5
(100,8)	(61,2)	(51,0)	(80,9)	(16,2)	(310,1)
87,7	76,5	64,0	99,6	(0,4)	327,4
38,2	12,2	11,0	16,5	1,8	79,7
(10,7)	(5,1)	(4,6)	(6,7)	(1,1)	(28,2)
	305,2 (139,6) (17,7) 28,8 (3,9) 5,9 10,3	149,1 (54,7) 22,8 32,0 (2,1) ‐ 4,0	130,2 (38,1) 0,2 27,0 (1,4) ‐ 4,4	183,3 (47,8) (5,3) 39,7 (2,9) ‐ 11,7	38,1 (14,9) ‐ 6,1 (1,7) (2,5) (2,3)

21 Segment Analysis (Continued)

Segment reporting of the Group's income and expenses for the three months ended 30 September 2012 is as follows:

(Unaudited) In billions of Russian roubles	Moscow	Central and Northern regions of European part of Russia	Volga region and South of European part of Russia	Ural, Siberia and Far East of Russia	Other countries	Total
Interest income Interest expense	111,6 (55,6)	53,1 (19,3)	46,8 (13,4)	67,4 (16,7)	13,8 (5,1)	292,7 (110,1)
Inter‐segment (expense)/
income	(7,5)	9,2	0,5	(2,2)	‐	‐
Fee and commission income	7,6	11,5	9,6	14,1	2,1	44,9
Fee and commission expense	(2,1)	(0,8)	(0,4)	(1,1)	(0,4)	(4,8)
Net gains arising from securities Net gains/(losses) arising from trading in foreign currencies, operations with foreign currency derivatives and	0,8	‐	‐	‐	0,6	1,4
foreign exchange translation	2,4	1,1	0,8	1,0	(3,2)	2,1
Net (losses)/gains arising from operationswith other
derivatives	(0,1)	‐	‐	‐	2,4	2,3
Net gains/(losses) arising from
operations with precious
metals	0,2	0,1	0,1	0,2	(1,0)	(0,4)
Other net operating
gains/(losses)	7,4	5,4	7,1	6,6	(4,4)	22,1
Operating income before provision charge for loan impairment	64,7	60,3	51,1	69,3	4,8	250,2
Net provision charge for loan
impairment	(3,3)	(12,9)	(14,2)	(5,2)	(4,8)	(40,4)
Operating income	61,4	47,4	36,9	64,1	‐	209,8
Operating expenses	(40,3)	(22,5)	(18,6)	(29,6)	(4,6)	(115,6)
Profit/ (loss) before tax
(Segment result)	21,1	24,9	18,3	34,5	(4,6)	94,2
Other disclosures Capital expenditure incurred
(additions of fixed assets) Depreciation of premises and	30,2	5,4	4,8	7,3	0,7	48,4
equipment	(4,2)	(1,7)	(1,6)	(2,3)	(0,4)	(10,2)

21 Segment Analysis (Continued)

Segment reporting of the Group's income and expenses for the nine months ended 30 September 2011 is as follows:

(Unaudited) In billions of Russian roubles	Moscow	Central and Northern regions of European part of Russia	Volga region and South of European part of Russia	Ural, Siberia and Far East of Russia	Other countries	Total
Interest income	234,8	117,0	100,8	134,1	16,1	602,8
Interest expense	(81,2)	(43,8)	(30,2)	(36,5)	(6,3)	(198,0)
Inter‐segment (expense)/income	(28,3)	18,4	3,8	6,1	‐	‐
Fee and commission income	18,3	27,8	22,2	31,6	3,5	103,4
Fee and commission expense	(1,6)	(1,5)	(1,3)	(2,4)	(0,7)	(7,5)
Net gains arising from securities Net gains arising from trading in foreign currencies, operations with foreign currency derivatives and foreign	7,9	‐	‐	‐	‐	7,9
exchange translation	17,3	2,6	1,5	2,0	1,7	25,1
Net gains arising from operations with other derivatives	0,8	‐	‐	‐	‐	0,8
Net gains/(losses) arising from operations with precious
metals	3,1	0,7	0,6	1,0	(0,2)	5,2
Other net operating
gains/(losses)	13,6	(0,8)	1,1	1,1	(0,5)	14,5
Operating income before recovery of provision / provision charge for loan impairment	184,7	120,4	98,5	137,0	13,6	554,2
Net recovery of provision / (net provision charge) for loan
impairment	17,2	(4,7)	(3,1)	6,0	(4,1)	11,3
Operating income	201,9	115,7	95,4	143,0	9,5	565,5
Operating expenses	(65,8)	(52,6)	(45,2)	(65,6)	(5,9)	(235,1)
Profit before tax (Segment result)	136,1	63,1	50,2	77,4	3,6	330,4
Other disclosures
Capital expenditure incurred (additions of fixed assets) Depreciation of premises and	17,7	8,4	7,7	10,7	2,1	46,6
equipment	(5,9)	(4,7)	(4,2)	(5,9)	(2,9)	(23,6)

21 Segment Analysis (Continued)

Segment reporting of the Group's income and expenses for the three months ended 30 September 2011 is as follows:

(Unaudited) In billions of Russian roubles	Moscow	Central and Northern regions of European part of Russia	Volga region and South of European part of Russia	Ural, Siberia and Far East of Russia	Other countries	Total
Interest income	81,8	40,4	34,9	47,0	5,6	209,7
Interest expense	(27,6)	(14,0)	(9,5)	(11,8)	(2,3)	(65,2)
Inter‐segment (expense)/income	(7,4)	5,8	(0,3)	1,9	‐	‐
Fee and commission income	6,7	9,8	8,1	11,3	1,2	37,1
Fee and commission expense	(0,6)	(0,6)	(0,4)	(0,9)	(0,3)	(2,8)
Net gains arising from securities Net gains/(losses) arising from trading in foreign currencies, operations with foreign currency derivatives and	1,1	‐	‐	‐	‐	1,1
foreign exchange translation	19,8	0,9	0,5	0,4	(3,9)	17,7
Net gains arising from operations
with other derivatives	1,9	‐	‐	‐	‐	1,9
Net gains/(losses) arising from operations with precious
metals	1,8	0,4	0,3	0,5	(0,1)	2,9
Other net operating gains/(losses)	1,3	(0,6)	(0,3)	0,9	0,1	1,4
Operating income before provision charge / recovery of provision for loan impairment	78,8	42,1	33,3	49,3	0,3	203,8
(Net provision charge) / net recovery of provision for loan impairment	(7,1)	(5,5)	3,9	4,2	(1,2)	(5,7)
Operating income/(loss)	71,7	36,6	37,2	53,5	(0,9)	198,1
Operating expenses	(24,8)	(19,5)	(16,7)	(25,3)	(1,8)	(88,1)
Profit/(loss) before tax (Segment result)	46,9	17,1	20,5	28,2	(2,7)	110,0
Other disclosures
Capital expenditure incurred (additions of fixed assets)	14,1	4,1	3,8	5,3	0,1	27,4
Depreciation of premises and equipment	(3,5)	(1,6)	(1,3)	(2,0)	(2,5)	(10,9)

21 Segment Analysis (Continued)

Reconciliation of profit before tax for the reportable segments with the Group's income statement profit before tax under IFRS for the nine months ended and for the three months ended 30 September 2012 and 30 September 2011 is as follows:

(Unaudited)	Nine months ended 30 September		Three months ended 30 September
In billions of Russian roubles	2012	2011	2012	2011
Total amount per segment information	327,4	330,4	94,2	110,0
Adjustment of provisions	29,4	17,9	16,5	9,1
Staff expenses accrued related to the reporting period (bonuses, annual leave, pension
liabilities)	(8,6)	(9,9)	3,3	(0,2)
Differencies arising on securities' classification	4,2	0,7	2,5	(1,1)
Accounting for derivatives at fair value	1,8	(16,9)	0,3	(15,3)
Additional interest and deferred commission
income accrued on loans	1,9	7,4	0,9	2,2
Adjustment of depreciation and cost of premises
and equipment	(12,4)	(7,8)	(2,1)	(2,8)
Other adjustments	(3,3)	(3,1)	(2,7)	(2,2)
The Group's total amount under IFRS	340,4	318,7	112,9	99,7

The differences shown above arise from classification variances as well as different accounting policies.

Adjustment of provisions is related to the difference between estimation methodology applied in statutory accounting records used as a basis for management reporting and estimation methodology according to IFRS.

Differences arising on securities' classification relate to gains/(losses) on revaluation of securities designated at fair value through profit or loss in IFRS reporting but classified as available for sale in statutory accounting records used as a basis for management reporting.

For the nine months ended 30 September 2012 the Group's revenues from customers in the Russian Federation amounted to RR 952,0 billion (for the nine months ended 30 September 2011: RR 742,0 billion); revenues from customers in all foreign countries from which the Group derives revenues amounted to RR 40,7 billion (for the nine months ended 30 September 2011: RR 23,5 billion).

For the three months ended 30 September 2012 the Group's revenues from customers in the Russian Federation amounted to RR 338,3 billion (for the three months ended 30 September 2011: RR 261,3 billion); revenues from customers in all foreign countries from which the Group derives revenues amounted to RR 16,2 billion (for the three months ended 30 September 2011: RR 4,1 billion).

No revenue from transactions with a single external customer or counterparty amounted to 10% or more of the Group's total revenue during the nine months ended 30 September 2012 and during the nine months ended 30 September 2011.

22 Financial Risk Management

The risk management function within the Group is carried out in respect of major types of risks: credit, market, liquidity and operational risks. Market risk includes interest rate risk, equity risk and currency risk. The Group's risk management policies are designed to identify and analyze these risks, to set appropriate risk limits and controls, and to monitor the risks and limits. The operational risk management functions are intended to ensure proper functioning of internal policies and procedures to minimise operational risk.

22 Financial Risk Management (Continued)

The Group's risk management policies and procedures are consistent with those disclosed in the annual consolidated financial statements of the Group for the year ended 31 December 2011.

Currency Risk. Currency risk results from fluctuations in the prevailing foreign currency exchange rates. The Group is exposed to foreign exchange risk on open positions (mainly US dollar/RUB and EUR/RUB exchange rate fluctuations).

The table below summarizes the Group's exposure to foreign exchange risk in respect of monetary assets, liabilities and notional positions on currency derivatives as at 30 September 2012. Foreign exchange risk on forward and future contracts is represented by their discounted notional positions. Foreign exchange options are disclosed in the amount that reflects theoretical sensitivity of their fair value to reasonable change in exchange rates.

(Unaudited)	Russian
In billions of Russian roubles	roubles	USD	Euro	Other	Total
Assets Cash and cash equivalents	475,4	162,0	62,6	98,0	798,0
Mandatory cash balances with central banks	116,2	9,5	39,5	32,4	197,6
Debt trading securities	21,4	15,2	0,4	10,6	47,6
Debt securities designated at fair value through
profit or loss	13,7	‐	‐	0,6	14,3
Due from banks	42,9	11,6	20,5	21,4	96,4
Loans and advances to customers	7 259,1	1 693,8	340,7	625,1	9 918,7
Debt securities pledged under repurchase
agreements	379,4	67,9	‐	22,2	469,5
Debt investment securities available for sale	540,4	182,0	69,0	106,7	898,1
Debt investment securities held to maturity	252,2	13,4	2,6	4,7	272,9
Other financial assets (less fair value of
derivatives)	88,0	23,5	2,8	7,0	121,3
Total monetary assets	9 188,7	2 178,9	538,1	928,7	12 834,4
Liabilities
Due to banks	804,8	100,7	64,1	56,4	1 026,0
Due to individuals	5 203,2	506,9	436,5	357,2	6 503,8
Due to corporate customers	1 724,9	808,4	184,6	299,7	3 017,6
Debt securities in issue	206,9	323,2	17,1	50,1	597,3
Other borrowed funds	0,8	286,5	66,5	26,4	380,2
Other financial liabilities (less fair value of
derivatives)	160,7	28,8	11,6	16,1	217,2
Subordinated debt	317,9	11,9	5,1	‐	334,9
Total monetary liabilities	8 419,2	2 066,4	785,5	805,9	12 077,0
Net monetary assets/(liabilities)	769,5	112,5	(247,4)	122,8	757,4
Net foreign exchange derivatives	21,9	(40,8)	96,2	(52,4)	24,9
Credit related commitments (Note 23)	1 765,3	635,1	244,8	358,1	3 003,3

22 Financial Risk Management (Continued)

The table below summarizes the Group's exposure to foreign exchange risk in respect of monetary assets, liabilities and notional positions on currency derivatives as at 31 December 2011.

	Russian
In billions of Russian roubles	roubles	USD	Euro	Other	Total
Assets
Cash and cash equivalents	488,8	58,9	20,9	57,0	625,6
Mandatory cash balances with central banks	99,5	0,6	0,1	1,0	101,2
Debt trading securities	48,0	17,1	2,3	2,6	70,0
Debt securities designated at fair value through
profit or loss	30,6	‐	‐	0,2	30,8
Due from banks	23,7	8,1	0,1	3,2	35,1
Loans and advances to customers	6 074,4	1 385,5	157,4	102,4	7 719,7
Debt securities pledged under repurchase
agreements	178,4	65,8	0,1	0,5	244,8
Debt investment securities available for sale	696,7	73,4	39,4	14,9	824,4
Debt investment securities held to maturity	273,4	12,9	0,1	0,1	286,5
Other financial assets (less fair value of
derivatives)	93,1	17,1	1,3	0,5	112,0
Total monetary assets	8 006,6	1 639,4	221,7	182,4	10 050,1
Liabilities
Due to banks	404,6	98,9	21,0	7,9	532,4
Due to individuals	4 959,6	366,6	265,2	134,9	5 726,3
Due to corporate customers	1 517,5	524,6	88,2	75,5	2 205,8
Debt securities in issue	64,4	181,8	1,8	20,7	268,7
Other borrowed funds	0,3	222,3	19,8	1,6	244,0
Other financial liabilities (less fair value of
derivatives)	145,5	48,3	0,8	1,5	196,1
Subordinated debt	303,3	0,2	‐	‐	303,5
Total monetary liabilities	7 395,2	1 442,7	396,8	242,1	9 476,8
Net monetary assets/(liabilities)	611,4	196,7	(175,1)	(59,7)	573,3
Net foreign exchange derivatives	6,0	(167,4)	167,6	16,2	22,4
Credit related commitments (Note 23)	1 406,2	594,1	113,4	41,8	2 155,5

22 Financial Risk Management (Continued)

Liquidity Risk. Liquidity risk is defined as the risk of mismatch between the maturities of assets and liabilities. The Group is exposed to daily calls on its available cash resources from overnight deposits, customer's current accounts, term deposits, loan drawdowns, guarantees and from margin and other calls on cash settled derivative instruments.

The table below shows assets and liabilities at 30 September 2012 by their remaining expected maturity. Following principles underlying gap analysis presentation and the Group liquidity risk management are based on the mix of CBR initiatives and the Bank's practice:

• Cash and cash equivalents represent highly liquid assets and are classified as "on demand and less than 1 month";
• Trading securities, securities designated at fair value through profit or loss and highly liquid portion of investment securities available for sale, including those pledged under repurchase agreements are considered to be liquid assets as these securities could be easily converted into cash within short period of time. Such financial instruments are disclosed in gap analysis table as "on demand and less than 1 month";
• Investment securities available for sale which are less liquid are disclosed according to remaining contractual maturities (for debt instruments) or as "no stated maturity" (for equities);
• Investment securities held to maturity including those pledged under repurchase agreements are classified based on the remaining maturities;
• Loans and advances to customers, due from banks, other assets, debt securities in issue, amounts due to banks, other borrowed funds and other liabilities are included into gap analysis table based on remaining contractual maturities;
• Customer deposits diversification by number and type of depositors and the past experience of the Group indicate that such accounts and deposits provide a long‐term and stable source of funding, and as a result they are allocated per expected time of funds outflow in the gap analysis table on the basis of statistical data accumulated by the Group during the previous periods and assumptions regarding the "permanent" part of current account balances.

22 Financial Risk Management (Continued)

The liquidity position of the Group's assets and liabilities as at 30 September 2012 is set out below.

	On demand
	and less				More
(Unaudited)	than	From 1 to	From 6 to	From 1 to	than	No stated
In billions of Russian roubles	1 month	6 months	12 months	3 years	3 years	maturity	Total
Assets
Cash and cash equivalents	798,0	‐	‐	‐	‐	‐	798,0
Mandatory cash balances with
central banks	51,9	34,5	19,5	80,5	11,2	‐	197,6
Trading securities	75,8	‐	‐	‐	‐	‐	75,8
Securities designated at fair
value through profit or loss	23,9	‐	‐	‐	‐	‐	23,9
Due from banks	62,8	24,6	2,2	0,2	6,6	‐	96,4
Loans and advances to
customers	520,2	1 356,3	1 344,1	3 256,2	3 441,9	‐	9 918,7
Securities pledged under
repurchase agreements	395,0	26,5	7,3	34,3	43,4	0,2	506,7
Investment securities available
for sale	896,7	6,8	3,4	12,9	12,4	0,4	932,6
Investment securities held to
maturity	9,7	32,3	32,0	94,8	104,1	‐	272,9
Deferred income tax asset	‐	‐	‐	‐	‐	5,0	5,0
Premises and equipment	‐	‐	‐	‐	‐	421,3	421,3
Other assets	167,2	50,3	12,8	88,6	20,3	167,4	506,6
Total assets	3 001,2	1 531,3	1 421,3	3 567,5	3 639,9	594,3	13 755,5
Liabilities
Due to banks	494,6	354,3	109,8	28,2	39,1	‐	1 026,0
Due to individuals	1 610,7	1 041,7	841,2	2 662,6	347,6	‐	6 503,8
Due to corporate customers	998,0	610,9	43,2	1 363,5	2,0	‐	3 017,6
Debt securities in issue	50,6	115,8	112,5	96,2	222,2	‐	597,3
Other borrowed funds	41,1	46,0	66,7	180,0	46,4	‐	380,2
Deferred income tax liability	‐	‐	‐	‐	‐	29,5	29,5
Other liabilities	168,4	58,2	7,8	25,2	6,6	76,3	342,5
Subordinated debt	‐	‐	0,5	0,3	334,1	‐	334,9
Total liabilities	3 363,4	2 226,9	1 181,7	4 356,0	998,0	105,8	12 231,8
Net liquidity (gap)/surplus	(362,2)	(695,6)	239,6	(788,5)	2 641,9	488,5	1 523,7
Cumulative liquidity (gap)/ surplus at 30 September 2012	(362,2)	(1 057,8)	(818,2)	(1 606,7)	1 035,2	1 523,7	‐

22 Financial Risk Management (Continued)

The liquidity position of the Group's assets and liabilities as at 31 December 2011 is set out below.

	On
	demand
	and less
	than	From 1 to	From 6 to	From 1 to	More than	No stated
In billions of Russian roubles	1 month	6 months	12 months	3 years	3 years	maturity	Total
Assets
Cash and cash equivalents	625,6	‐	‐	‐	‐	‐	625,6
Mandatory cash balances with
central banks	27,7	10,7	8,9	47,7	6,2	‐	101,2
Trading securities	102,0	‐	‐	‐	‐	‐	102,0
Securities designated at fair
value through profit or loss	52,0	‐	‐	‐	‐	‐	52,0
Due from other banks	19,0	13,8	1,8	0,2	0,3	‐	35,1
Loans and advances to
customers	253,2	1 043,4	1 243,3	2 477,6	2 702,2	‐	7 719,7
Securities pledged under
repurchase agreements	163,7	‐	39,0	82,1	16,0	‐	300,8
Investment securities available
for sale	869,3	‐	2,8	3,1	8,4	0,9	884,5
Investment securities held to
maturity	0,7	11,7	9,0	116,9	148,2	‐	286,5
Deferred income tax asset	‐	‐	‐	‐	‐	7,8	7,8
Premises and equipment	‐	‐	‐	‐	‐	359,9	359,9
Other assets	138,3	35,7	29,9	39,7	19,1	97,3	360,0
Total assets	2 251,5	1 115,3	1 334,7	2 767,3	2 900,4	465,9	10 835,1
Liabilities
Due to other banks	373,1	118,9	36,7	3,2	0,5	‐	532,4
Due to individuals	1 243,7	739,2	654,1	2 726,0	363,3	‐	5 726,3
Due to corporate customers	973,9	88,0	50,8	1 081,8	11,3	‐	2 205,8
Debt securities in issue	35,3	36,7	17,9	53,5	125,3	‐	268,7
Other borrowed funds	0,2	19,7	52,3	152,0	19,8	‐	244,0
Deferred income tax liability	‐	‐	‐	‐	‐	21,2	21,2
Other liabilities	186,0	47,5	9,6	11,9	6,5	3,7	265,2
Subordinated debt	‐	‐	‐	0,2	303,3	‐	303,5
Total liabilities	2 812,2	1 050,0	821,4	4 028,6	830,0	24,9	9 567,1
Net liquidity (gap)/surplus	(560,7)	65,3	513,3	(1 261,3)	2 070,4	441,0	1 268,0
Cumulative liquidity (gap)/ surplus at 31 December 2011	(560,7)	(495,4)	17,9	(1 243,4)	827,0	1 268,0	‐

23 Credit Related Commitments

The primary purpose of credit related commitments instruments is to ensure that funds are available to a customer when required. Guarantees and standby letters of credit, which represent irrevocable assurances that the Group will make payments in the event that a customer cannot meet the obligations to third parties, carry the same credit risk as loans. Documentary and commercial letters of credit, which are written undertakings by the Group on behalf of a customer authorising a third party to draw drafts on the Group up to a stipulated amount under specific terms and conditions, are collateralised by the underlying shipments of goods to which they relate or cash deposits and therefore carry less risk than direct lending.

Commitments to extend credit represent unused portions of authorisations to extend credit. With respect to credit risk on commitments to extend credit, the Group is potentially exposed to a loss equal to the total amount of unused commitments. However, the likely amount of loss is less than the total unused commitments since most commitments to extend credit are contingent upon customers maintaining specific credit standards. The Group monitors the maturities of credit related commitments because longer‐term commitments generally have a greater degree of credit risk than shorter‐term commitments. Outstanding credit related commitments are as follows:

In billions of Russian roubles	30 September 2012 (Unaudited)	31 December 2011
Commitments to extend credit	1 030,5	741,9
Guarantees issued	920,8	490,6
Undrawn credit lines	583,1	378,0
Export letters of credit	287,5	364,5
Import letters of credit and letters of credit for domestic settlements	181,4	180,5
Total credit related commitments	3 003,3	2 155,5

At 30 September 2012 included in Due to corporate customers are deposits of RR 74,9 billion (31 December 2011: RR 95,0 billion) held as collateral for irrevocable commitments under import letters of credit. Refer to Note 12.

The total outstanding contractual amount of undrawn credit lines, letters of credit and guarantees does not necessarily represent future cash payments, as these financial instruments may expire or terminate without any payments being made.

24 Related Party Transactions

For the purposes of these condensed interim consolidated financial statements, parties are considered to be related if one party has the ability to control the other party, is under common control, or can exercise significant influence over the other party in making financial or operational decisions. In considering each possible related party relationship, attention is directed to the substance of the relationship, not merely the legal form.

The Group's principal shareholder is the Bank of Russia (refer to Note 1). Other related parties in the tables below comprise key management personal, their close family members, associated companies of the Group. Disclosures are made in Note 25 for significant transactions with state‐controlled entities and government bodies.

24 Related Party Transactions (Continued)

As at 30 September 2012 and 31 December 2011, the outstanding balances with the Bank of Russia and other related parties were as follows:

	30 September 2012		31 December 2011
	(Unaudited)
	The Bank of	Other related	The Bank of	Other related
In billions of Russian roubles	Russia	parties	Russia	parties
Assets
Cash and cash equivalents	25,9	‐	51,3	0,9
Mandatory cash balances with the Bank of Russia	116,2	‐	99,5	‐
Due from banks	‐	‐	‐	0,8
Gross amount of loans and advances to customers	‐	0,8	‐	0,3
Impairment provision for loans and advances to
customers	‐	(0,3)	‐	‐
Other assets	0,6	‐	‐	0,1
Liabilities
Due to banks	693,1	‐	265,6	‐
Due to corporate customers	‐	3,6	‐	1,5
Subordinated debt	318,0	‐	303,3	‐
Other liabilities	‐	‐	‐	0,3

The income and expense items with the Bank of Russia and other related parties for the nine months ended 30 September 2012 and 30 September 2011 were as follows:

	Nine months ended 30 September
	2012		2011
(Unaudited)	The Bank of	Other related	The Bank of	Other related
In billions of Russian roubles	Russia	parties	Russia	parties
Interest income	‐	0,1	9,0	‐
Interest expense on subordinated debt	(14,7)	‐	(14,6)	‐
Interest expense other than on subordinated debt	(25,1)	(0,1)	‐	‐
Net provision charge for loan impairment	‐	(0,3)	‐	‐
Other operating income	‐	‐	‐	0,2
Operating expenses	(1,0)	‐	(0,9)	(0,1)

The income and expense items with the Bank of Russia and other related parties for the three months ended 30 September 2012 and 30 September 2011 were as follows:

	Three months ended 30 September
	2012		2011
(Unaudited)	the Bank of	Other related	the Bank of	Other related
In billions of Russian roubles	Russia	parties	Russia	parties
Interest income	‐	0,1	0,6	‐
Interest expense on subordinated debt	(5,0)	‐	(4,9)	‐
Interest expense other than on subordinated debt	(11,8)	‐	‐	‐
Other operating income	‐	‐	‐	0,2
Operating expenses	(0,4)	‐	(0,2)	(0,1)

24 Related Party Transactions (Continued)

For the nine months ended 30 September 2012, remuneration of the members of the key management personnel comprised salaries and bonuses totaling RR 0,7 billion (for the nine months ended 30 September 2011: RR 0,4 billion). For the three months ended 30 September 2012, remuneration of the members of the key management personnel comprised salaries and bonuses totaling RR 0,3 billion (for the three months ended 30 September 2011: RR 0,1 billion).

25 Operations with State‐Controlled Entities and Government Bodies

In the normal course of business, the Group enters into contractual agreements with the government of the Russian Federation and entities controlled or significantly influenced by it. The Group provides the government‐ related entities with a full range of banking services including, but not limited to, lending, deposit‐taking, issue of guarantees, operations with securities, сash and settlement transactions. Operations with government‐related entities are carried out on general market terms and constitute the minority of the Group's operations.

Balances with government‐related entities which are significant in terms of the carrying amount as at 30 September 2012 are disclosed below:

(Unaudited)
In billions of Russian roubles		30 September 2012
		Loans and	Due to
		advances to	corporate	Guarantees
Client	Sector	customers	customers	issued
Client 1	Oil and gas	68,9	‐	‐
Client 2	Oil and gas	‐	48,9	‐
Client 3	Energy	96,5	18,1	0,6
Client 4	Energy	89,4	16,6	‐
Client 5	Energy	70,1	‐	‐
Client 6	Telecommunications	117,0	‐	‐
Client 7	Telecommunications	‐	‐	11,1
Client 8	Machine building	74,8	‐	8,9
Client 9	Machine building	73,5	18,6	‐
Client 10	Machine building	64,7	16,7	7,4
Client 11	Machine building	‐	‐	9,9
Client 12	Transport, aviation, space industry	‐	‐	15,2
Client 13	Transport, aviation, space industry	‐	‐	7,1
Client 14	Government and municipal bodies	‐	179,5	‐
Client 15	Government and municipal bodies	‐	122,0	‐
Client 16	Government and municipal bodies	‐	32,8	‐
Client 17	Government and municipal bodies	‐	17,5	‐
Client 18	Services	‐	‐	100,0
Client 19	Mining	‐	‐	35,7
Client 20	Other	56,4	‐	‐

25 Operations with State‐Controlled Entities and Government Bodies (Continued)

Balances with government‐related entities which are significant in terms of the carrying amount as at 31 December 2011 are disclosed below:

In billions of Russian roubles		31 December 2011
		Loans and	Due to
		advances to	corporate	Guarantees
Client	Sector	customers	customers	issued
Client 2	Oil and gas	‐	44,2	‐
Client 3	Energy	87,4	12,5	‐
Client 4	Energy	79,3	37,9	‐
Client 5	Energy	52,6	11,6	‐
Client 6	Telecommunications	93,4	‐	‐
Client 7	Telecommunications	‐	‐	7,6
Client 8	Machine building	51,1	‐	2,1
Client 9	Machine building	65,4	13,5	‐
Client 10	Machine building	‐	‐	4,2
Client 11	Machine building	‐	‐	9,9
Client 13	Transport, aviation, space industry	‐	‐	0,8
Client 15	Government and municipal bodies	‐	11,7	‐
Client 17	Government and municipal bodies	‐	12,0	‐
Client 18	Services	‐	‐	100,0
Client 20	Other	‐	21,3	‐

As at 30 September 2012 and 31 December 2011 the Group's investments in securities issued by government‐ related corporate entities were as follows:

	30 September 2012 (Unaudited)		31 December 2011
In billions of Russian roubles	Corporate bonds	Corporate shares	Corporate bonds	Corporate shares
Trading securities	6,8	3,6	8,2	8,1
Securities designated at fair value through profit or loss	‐	‐	‐	2,7
Securities pledged under repurchase
agreements	18,6	28,4	11,6	40,5
Investment securities available for sale	168,1	8,6	139,2	20,7
Investment securities held to maturity	45,4	‐	45,9	‐

For disclosures on investments in government debt securities please refer to Notes 5, 6, 8, 9 and 10.

26 Principal Subsidiaries

The table below provides details on principal subsidiaries of the Bank as at 30 September 2012:

	Nature of	Percentage of	Country of
Name	business	ownership	registration
Subsidiaries:
DenizBank AS	banking	99.85%	Turkey
Sberbank Europe AG (former Volksbank International AG ("VBI"))	banking	100.00%	Austria
OJSC Belpromstroy Bank (OAO BPS Bank)	banking	97.91%	Belarus
SB JSC Sberbank	banking	100.00%	Kazakhstan
JSC Sberbank of Russia	banking	100.00%	Ukraine
Sberbank (Switzerland) AG (former SLB Commercial Bank AG)	banking	99.15%	Switzerland
BNP Pariba Vostok LLC	banking	70.00%	Russia
CJSC Sberbank Leasing	leasing	100.00%	Russia
LLC Sberbank Capital	finance	100.00%	Russia
Troika Dialog Group Ltd.	finance	100.00%	Cayman islands
CJSC Rublevo‐Archangelskoe	construction	100.00%	Russia
LLC Sberbank Investments	finance	100.00%	Russia
Sberbank Asset Management Company	asset management	100.00%	Russia
LLC Aukсion	services	100.00%	Russia
OJSC Krasnaya Poliana	construction	50.03%	Russia
CJSC NK Dulisma	oil company	100.00%	Russia
LLC Khrustalnye Bashni	construction	50.01%	Russia

In September 2012 the Bank completed the acquisition of 99.85% of DenizBank AS (DenizBank) following the entering into the sale and purchase agreement in June 2012 with the shareholders of DenizBank ‐ Dexia NV/SA and Dexia Participation Belgique SA (together "Dexia"). DenizBank is ranked 6th among private and 9th among all Turkish banks by consolidated total assets. The deal represents a major step in the implementation of the Group's strategy and allows the Group to enter the fast‐growing Turkish banking market.

Consideration paid by the Bank amounted to TRY 6,5 billion. Payments were performed in Euro at the exchange rate as of the date of payment. By year‐end, the Bank will pay to Dexia a further sum equivalent to the increase in DenizBank's net asset value in the period from 1 January 2012 to 28 September 2012, subject to post‐closing adjustments and limited by a cap of TRY 0,4 billion.

The goodwill is primarily attributable to the potential synergies of the business as well as well established business processes. The goodwill will not be deducted for tax purposes in future periods.

Gross amount of loans and receivables acquired through this business combination amounted to RR 637,3 billion. The amount of cash flows not expected to be received was assessed at RR 23,0 billion.

The Group's consolidated net profit for the nine months ended 30 September 2012 would be RR 271,3 billion if the acquisition occurred on 1 January 2012.

26 Principal Subsidiaries (Continued)

For the purpose of determining goodwill from the business combination fair values of identifiable assets and liabilities of DenizBank based on the preliminary results of an independent external appraisal at the acquisition date were as follows:

(Unaudited) In billions of Russian roubles	Fair value
Cash and cash equivalents	47,2
Mandatory cash balances with central banks	64,7
Trading securities	7,4
Due from banks	2,2
Loans and advances to customers	614,3
Securities pledged under repurchase agreements	22,7
Investment securities available for sale	95,7
Investment securities held to maturity	4,5
Deferred income tax asset	3,4
Premises and equipment	6,4
Other assets	34,0
Total assets	902,5
Due to banks	(46,4)
Due to individuals	(341,9)
Due to corporate customers	(238,5)
Debt securities in issue	(27,5)
Other borrowed funds	(102,5)
Deferred income tax liability	(1,8)
Other liabilities	(30,1)
Subordinated debt	(15,4)
Total liabilities	(804,1)
Fair value of net assets of subsidiary	98,4
Calculation of goodwill:
Total purchase consideration	118,7
Non‐controlling interest at fair value	0,4
Fair value of net assets of subsidiary	(98,4)
Goodwill on acquisition	20,7

In August 2012 the Bank and BNP Paribas Personal Finance, the consumer lending division of the BNP Paribas Group and leading provider of consumer loans in France and Europe, closed the transaction on the creation of the Russian POS (Point of Sale) finance bank. The bank BNP Paribas Vostok LLC will operate under the Cetelem brand. The Bank has 70% share in BNP Paribas Vostok LLC with the remaining 30% stake being owned by BNP Paribas Personal Finance France, which owns the Cetelem brand. The bank will allow the Group to take up a leading position in the Russian POS market. Consideration paid by the Bank amounted to RR 5,2 billion.

The goodwill is primarily attributable to the potential synergies of the business as well as well established business processes. The goodwill will not be deducted for tax purposes in future periods.

26 Principal Subsidiaries (Continued)

Gross amount of loans and receivables acquired through this business combination amounted to RR 16,9 billion. The amount of cash flows not expected to be received was assessed at RR 0,1 billion.

Loss of BNP Paribas Vostok LLC since the acquisition date included in the condensed interim consolidated statement of comprehensive income for the reporting period amounted to RR 0,1 billion.

For the purpose of determining goodwill from the business combination fair values of identifiable assets and liabilities of BNP Paribas Vostok LLC based on the preliminary results of an independent external appraisal at the acquisition date were as follows:

(Unaudited)
In billions of Russian roubles	Fair value
Cash and cash equivalents	1,3
Mandatory cash balances with central banks	0,2
Due from banks	0,3
Loans and advances to customers	16,8
Premises and equipment	0,2
Other assets	1,3
Total assets	20,1
Due to banks	(11,7)
Due to customers	(0,8)
Other liabilities	(0,6)
Total liabilities	(13,1)
Fair value of net assets of subsidiary	7,0
Calculation of goodwill:
Total purchase consideration	5,2
Non‐controlling interest at fair value	2,1
Fair value of net assets of subsidiary	(7,0)
Goodwill on acquisition	0,3

In February 2012 following the entering into sale and purchase agreement in September 2011 the Bank has completed its acquisition of 100% of Sberbank Europe AG (former Volksbank International AG ("VBI")). Consideration paid by the Bank amounted to Euro 0,5 billion.

This transaction represents the Bank's first major acquisition outside the CIS and is another step in its transformation from a dominant domestic financial institution to a leading international bank. Sberbank Europe AG has 295 branches and over 600,000 clients. Sberbank Europe AG's subsidiaries are within the top 10 financial institutions (by total assets) in each of Bosnia and Herzegovina, Croatia, the Czech Republic, and Slovakia, and within the top 15 financial institutions (by total assets) in each of Hungary, Serbia and Slovenia. It also has presence in Ukraine and holds a limited banking license in Austria.

26 Principal Subsidiaries (Continued)

The goodwill is primarily attributable to the potential synergies of the business as well as well established business processes. The goodwill will not be deducted for tax purposes in future periods.

Gross amount of loans and receivables acquired through this business combination amounted to RR 301,2 billion. The amount of cash flows not expected to be received was assessed at RR 18,2 billion.

Loss of Sberbank Europe AG since the acquisition date included in the condensed interim consolidated statement of comprehensive income for the reporting period amounted to RR 4,8 billion.

The Group's consolidated net profit would not change if the acquisition occurred on 1 January 2012.

For the purpose of determining goodwill from the business combination fair values of identifiable assets and liabilities of Sberbank Europe AG based on the final results of an independent external appraisal at the acquisition date were as follows:

(Unaudited) In billions of Russian roubles	Fair value
Cash and cash equivalents	42,8
Mandatory cash balances with central banks	10,5
Trading securities	0,4
Due from banks	15,9
Loans and advances to customers	251,0
Securities pledged under repurchase agreements	4,9
Investment securities available for sale	14,9
Investment securities held to maturity	1,9
Deferred income tax asset	1,2
Premises and equipment	4,5
Other assets	13,9
Total assets	361,9
Due to banks	(50,5)
Due to individuals	(109,4)
Due to corporate customers	(77,3)
Debt securities in issue	(9,4)
Other borrowed funds	(92,1)
Deferred income tax liability	(0,6)
Other liabilities	(4,4)
Subordinated debt	(3,4)
Total liabilities	(347,1)
Fair value of net assets of subsidiary	14,8
Calculation of goodwill:
Total purchase consideration	20,0
Non‐controlling interest at fair value	0,3
Fair value of net assets of subsidiary	(14,8)
Goodwill on acquisition	5,5

26 Principal Subsidiaries (Continued)

In June 2012 under the settlement of the loan to its borrower the Group repossessed a 100% share in CJSC Rublevo‐ Archangelskoe, a construction development company operating in Russia. The details of the fair value of net assets of CJSC Rublevo‐Archangelskoe based on the results of the appraisal at the acquisition date were as follows:

(Unaudited)
In billions of Russian roubles	Fair value
Other non‐financial assets	37,5
Total assets	37,5
Due to corporate customers Deferred income tax liability	(0,2) (0,3)
Total liabilities	(0,5)
Fair value of net assets of subsidiary	37,0
Calculation of goodwill: Total purchase consideration	37,0
Fair value of net assets of subsidiary	(37,0)
Goodwill on acquisition	‐

Net loss of CJSC Rublevo‐Archangelskoe since the date of acquisition amounted RR 0,1 billion. The Group's consolidated net profit would not change if the acquisition occurred on 1 January 2012.

26 Principal Subsidiaries (Continued)

During the nine months ended 30 September 2012 the Group acquired controlling interests in OJSC Krasnaya Poliana and several other companies. The fair value of net assets of these companies was as follows:

(Unaudited)
In billions of Russian roubles	Fair value
Cash and cash equivalents	1,5
Due from banks	0,2
Loans and advances to customers	1,1
Premises and equipment	22,9
Advances to developers	7,4
Other assets	0,5
Total assets	33,6
Borrowed funds	(5,3)
Advances received	(1,5)
Other liabilities	(0,8)
Total liabilities	(7,6)
Fair value of net assets of subsidiary	26,0
Calculation of goodwill:
Total purchase consideration	14,9
Non‐controlling interest at fair value	12,7
Fair value of net assets of subsidiary	(26,0)
Goodwill on acquisition	1,6

Net loss of the acquired companies since the date of acquisition amounted RR 0,1 billion. The Group's consolidated net profit would not change if the acquisition occurred on 1 January 2012.

In February the Group disposed of the 74.5% share in OJSC Holding company GVSU Center for RR 4,1 billion. The gain from this operation amounted to RR 0,1 billion. From this moment the Group has lost the control over the company. Refer to Notes 11 and 14.

In April 2012 the Group disposed of a 60.00% share in CJSC GOTEK Group Management Company, a company involved in production and sale of packaging materials, for RR 0,06 billion. The gain from this operation amounted to RR 0,5 billion.

The share of the subsidiaries of the Bank in the consolidated assets of the Group as at 30 September 2012 was 15.1% (31 December 2011: 7.1%).

27 Capital Adequacy Ratio

The Group's objectives when managing capital are (i) to comply with the regulatory capital requirements set by the Bank of Russia and (ii) to safeguard the Group's ability to continue as a going concern.

According to requirements set by the Bank of Russia statutory capital ratio has to be maintained above the minimum level of 10%. As at 30 September 2012 the regulatory capital adequacy ratio was 12.0% (31 December 2011: 15.0%). Compliance with capital adequacy ratios set by the Bank of Russia is monitored monthly with reports outlining the calculation.

The Group also monitors capital adequacy ratio based on Basel Accord to make sure it maintains a level of at least 8%. As at 30 September 2012 and 31 December 2011, Capital Adequacy Ratios calculated by the Group in accordance with the International Convergence of Capital Measurement and Capital Standards (July 1988, updated to November 2005) and Amendment to the Capital Accord to incorporate market risks (updated November 2005), commonly known as Basel 1 requirements, were as follows:

In billions of Russian roubles	30 September 2012 (Unaudited)	31 December 2011
			Tier 1 capital
Share capital	87,7	87,7
Share premium	232,6	232,6
Retained earnings	1 100,8	882,9
Treasury shares	(8,4)	(7,0)
Less goodwill	(38,2)	(15,1)
Total Tier 1 capital	1 374,5	1 181,1
Tier 2 capital
Revaluation reserve for premises	79,5	81,5
Fair value reserve for investment securities available for sale	7,0	(3,4)
Foreign currency translation reserve	(0,9)	(5,7)
Subordinated capital	333,4	303,5
Less investments in associates	(6,9)	(4,7)
Total Tier 2 capital	412,1	371,2
Total capital	1 786,6	1 552,3
Risk weighted assets (RWA)
Credit risk	13 023,9	9 867,8
Market risk	412,9	349,0
Total risk weighted assets (RWA)	13 436,8	10 216,8
Core capital adequacy ratio (Total Tier 1 capital to Total RWA)	10.2	11.6
Total capital adequacy ratio (Total capital to Total RWA)	13.3	15.2

28 Subsequent Events

In October 2012 the Group issued the twelfth series of loan participation notes under the MTN issuance programme in the amount of USD 2 billion equivalent to RR 63,0 billion as at the date of issue. The notes have the status of subordinated. The notes mature in October 2022 and have contractual fixed interest rate of 5.1% p.a.

In October 2012 the Group disposed of 100% share in LLC Sportloto, a Russian company – handler of all‐Russia government lotteries conducted to support the Sochi 2014 Winter Olympics and Paralympics, for RR 1,9 billion. Gain from this operation amounted to RR 1,7 billion.

In October 2012 the Group signed an agreement on the sale of 38% share in Vester Retail N.V., a company specializing in retail trading. According to the agreement the sale must be completed by December 2012. Also in October 2012 the Group signed an agreement on the sale of the remaining 16% share in Vester Retail N.V. which must be completed by March 2013. As at 30 September 2012 assets and liabilities of Vester Retail N.V. were classified as assets and liabilities of the disposal group in the condensed interim consolidated statement of financial position. Refer to Notes 11 and 14.