Unconditional fulfillment by Sberbank of its obligations towards depositors and clients, reliable and sustainable performance in major segments of Russian financial market throughout year 2000 ensured regaining by the Bank leadership in the Russian banking sector. The growth figures for the past year evidence not only continued positive trends of 1999 but an accelerated growth rate.
This is another tangible evidence that Sberbank functions reliably as an integrated system- making credit institution of the country and is the main source of financing for the real sector of economy.
Sberbank profit for the year 2000 reached 16.5 billion rubles (USD 585 million) and the net profit after tax increased 1.5 times in comparison with the previous year and totaled 12.7 billion rubles (USD 451 million).
The Bank's equity increased dynamically to 42.7 billion rubles (USD 1.5 billion) by January 1, 2000, an increase of 44 per cent within the year.
The Bank achieved an impressive ROE of 29.8 per cent, higher than in 1999.
Income structure changed significantly in 2000 with the share of income from lending making 48 per cent of the Bank's total income.
Lending to the real sector of the economy remains the strategic priority for the Bank which was successfully continued over the past year. The main borrowers of the bank in 2000 were the integrated power grid RAO UES, OAO "Russkiy Alluminiy" aluminium producer, "Volga- Dnepr" and "Sibir airlines", the oil companies ZAO "Severnaya Neft", OAO "Tyumen Oil company", OAO "Vympelcom" telecommunications operator as well as small and medium size business companies.
The key feature of assets performance during the year 2000 was the sustained loan portfolio growth while invariably maintaining its high quality. The loan portfolio of the bank reached 280.8 billion rubles with 255.1 billion rubles loans provided to the real sector.
In the year 2000 Sberbank maintained its leading positions on the market of retail services which was testified by the growing confidence of depositors in the Bank and significant inflow of deposits in the branches of Sberbank. Sberbank's share in the total volume of retail deposits of physical persons made 87.3 per cent of the ruble deposits and 51.2 per cent of deposits in hard currency.
One of the main features evidencing strengthening authority of Sberbank internationally was raising the long term rating of the bank from "B-" to "B" by the international rating agency Fitch IBCA last August. Sberbank is convinced that economic results achieved ensure new possibilities for its economic growth, increase of investments in the real sector of economy and will contribute to the strength of banking system of the country.