YUZHNO SAKHALINSK KHABAROVSK VLADIVOSTOK YAKUTSK IRKUTSK KRASNOYARSK
KEMEROVO TOMSK BARNAUL NOVOSIBIRSK NOVY URENGOI SURGUT
OMSK TYUMEN UGORSK CHELYABINSK EKATERINBURG PERM
GAZPROMBANK GROUP ANNUAL REPORT 2010 BASED ON IFRS CONSOLIDATED FINANCIAL STATEMENTS
UFA ORENBURG
UKHTA IZHEVSK SAMARA KAZAN ASTRAKHAN JOSHKAR OLA
MAKHACHKALA CHEBOKSARY SARATOV VOLGOGRAD NIZHNY NOVGOROD STAVROPOL
KOSTROMA ROSTOV ON DON LIPETSK KRASNODAR SHCHELKOVO MOSCOW
TULA BELGOROD BRYANSK MURMANSK ST. PETERSBURG KALININGRAD
GAZPROMBANK GROUP 2010 ANNUAL REPORT Based on IFRS consolidated financial statements
Statement by the Chairman of the Board of Directors 3
Statement by the Chairman of the Management Board 4
Bank Profile 6 Main Events of 2010 and Positioning 6 Key Performance Indicators 8 Geographic coverage 10 Shareholders 12 Board of Directors 13 Management Board 14
Performance Results and Development Prospects 15 Russian Economy in 2010 15 The Russian Banking System in 2010 18 Group’s Financial Totals and Performance Indicators 19 Development Strategy for 2011-2015 22 Participation in Federal and Regional Programs and Projects 23
Classic Banking Services 25 Corporate Business 25 Retail Business and E-Services 30 Private Banking and Art Banking 32 Depository Business 32
Investment Banking 34 Financial Market Transactions 34 Project and Structured Finance 35 Mergers and Acquisition Advisory Service 37 Structured and Syndicated Finance 38 Trust Management 39 Management of Non-Financial Assets 40
Risk Management 43 Risk Management Framework 43 Internal Control System 48 Compliance Control in the Bank 50
Corporate Governance 51 Corporate Governance System 51 Infrastructure and Regional Network Development 53 Personnel and Organizational Development 54 IT Development 55 Social Responsibility 56
Summary Consolidated Financial Statements 58
Reference Information 72
1 2 GAZPROMBANK GROUP. annual report 2010
Statement by the Chairman of the Board of Directors
Dear Shareholders,
In 2010, GPB (OJSC) not only providing turnkey services at a modern Group’s business and the development achieved the performance measures level to multiple enterprises belonging of the Group. established by its Strategic Growth to Gazprom Group. The high performance of the Bank Plan, but also far exceeded them. The One of GPB’s achievements in re- both in 2010 and since 2006 is the best Bank managed to achieve perfor- cent years has been its involvement confirmation of the correctness of the mance that is significantly better than in Gazprom Group’s internal cash flow strategic course selected by its share- the targeted indicators related to its management system. Today, the ma- holders and enables the Bank to set new assets, capital, loan portfolio, borrow- jority of OAO Gazprom’s subsidiaries, ambitious goals. ings and profits. Those results have branches and representative offices The primary goal is to further increase been achieved during challenging located across several time zones are the value of GPB. For this purpose, we macroeconomic conditions influenced included in Gazprom’s cash pooling. plan to place special emphasis on the by the negative consequences of the The Bank’s investment and financial ad- growth of the banking segment and im- global financial crisis. visory services that are provided within provement of the Bank’s capital structure. The Bank’s day-to-day operations as the strategic partnerships established to I am sure that by implementing such well as its growth prospects are closely implement a series of major projects and a strategy, GPB will further strengthen tied to the operations of OAO Gazprom. transactions are of great importance for its position as one of the leading Russian This company is the Bank’s largest share- the Company as well. banks. holder and customer. We consider the Thus, our cooperation with the Bank Bank as a reliable partner capable of is instrumental in optimizing Gazprom
Alexey B. Miller Chairman of the Board of Directors, GPB (OJSC) Chairman of the Management Board, OAO Gazprom
3 Statement by the Chairman of the Management Board
Dear Shareholders, Customers and Partners of the Bank,
I can note with satisfaction that More than 90% of the portfolio was com- target segment is represented by the the past year has been successful for prised of loans extended to corporate officers of corporate customers and GPB (OJSC). The Bank has achieved bal- customers. GPB (OJSC) is in fact the only their families. During the reporting year, ance-sheet figures that are significantly non-government bank in the country that more than 65 thousand new individual better than target. The structure of as- is capable of providing effective loan sup- borrowers applied to GPB (OJSC) for its sets and liabilities has improved, and port to leading companies on a national services. The viable choice of a target cus- there is a sufficient capital reserve. The scale. The share of the largest enterprises tomer segment and stringent risk analy- growth rates of main operations, as in among the Bank’s corporate borrowers sis and monitoring procedures have the previous year, were higher than av- was 96% as of January 1, 2011. From an ensured that the share of overdue loans erage Russian banking indices. Thanks industry perspective, these include enter- in the Bank’s retail loan portfolio is sig- to this exceptional growth, the Bank has prises in the metallurgical, gas, oil, coal, nificantly lower than the market average. increased its share in a number of key electric power and machine-building in- The volume and structure of our re- business segments and strengthened its dustries. In addition the portfolio of loans source base have noticeably improved. market position. According to Gazprom- provided to agro-industrial holdings, trad- Almost two-thirds of the Bank’s total li- bank’s performance in 2010, it ranks No. ing and transportation companies grew abilities comprised funds raised from 3 in the country in terms of capital, as- at a rapid rate in 2010. corporate customers with an increased sets, loans extended to the non-financial A concentration on corporate cus- proportion of mid- and long-term de- sector and raised customer funds. tomers does not prevent, but, indeed, posits. The recovery of international debt The Bank’s loan portfolio exceeded significantly facilitates expansion of markets created a favorable opportu- RUR 1 trillion as of the beginning of 2011. the Bank’s retail business since its main nity in August and September 2010, to
4 GAZPROMBANK GROUP. annual report 2010
offer two installments of the Bank’s Eu- finance markets, M&A market and trust the foundation of the customer base, robonds for a total amount of USD 1 bil- management market. but a massive segment of mid-sized lion and raise a syndicated loan totaling One of the special areas of the businesses must be added to them. USD 900 million on mutually beneficial Bank’s business is the management of GPB’s corporate loan portfolio will ex- terms. All of these capital transactions non-financial assets which last year in- ceed 60% of its banking assets by 2015. have improved the stability and balance cluded more than three-hundred com- At the same time, its business structure of our resource base. panies operating in the petrochemical, will be purposefully transformed to In attracting customers, the Bank is machine-building, media and other in- achieve the best combination of profit- consistently expanding its geographical dustries within Russia and abroad. A top to-risk ratios to increase the share of presence. To date, GPB (OJSC) is the core priority here is the implementation of regular (including commission) income of an international banking group. It has production capacity upgrade programs, in the total revenues of the Group. The 43 branches, 6 subsidiary and associated business development plans, strengthen- structure of assets and capital will signifi- banks and about 300 bank offices across ing the HR potential of enterprises and cantly improve. Russia, from Kaliningrad to Kamchatka. supporting their employees’ social needs. Another strategic objective for the Two new branches, in Kazan and Surgut This is a matter of national importance Bank is the improvement of its corporate were registered in 2010. Three foreign addressed by the Bank in a responsible governance system. It is not needed just to subsidiary banks are located in Belarus, and steadfast manner in consultation improve ratings and ensure growth in mar- Armenia and Switzerland. A representa- with its shareholders and close coopera- ket value. The unexpected crisis, atypical in tive office was established in India in ad- tion with federal and local government its scale of movement, has revealed a spe- dition to those in China and Mongolia at authorities. Some companies have al- cial practical importance for such business the end of the last year. ready successfully implemented their practices as corporate procedures, internal The growth in volumes and territorial investment programs, thus enabling the controls, risk management, social responsi- coverage of the Bank’s operations is ac- Bank to consider withdrawing from their bility and business ethics. Shortcomings in companied by the consistent expansion capital. Thus, in the reporting year, in ac- these matters have resulted in direct losses of the business lines, financial instru- cordance with the Board of Directors’ for many companies and put their survival ments, and products and services of- recommendation to reduce investments in question during the recent financial fered. In addition to traditional banking in non-core assets, the Bank sold large turmoil. Today, the whole world is con- services, such as cash and settlement blocks of shares in CJSC SIBUR Holding cerned with searching for new effective services, deposits and lending, the in- and OAO Sibneftegaz. These transac- systems to regulate financial and bank- vestment banking line has been actively tions have significantly increased the ing businesses. Gazprombank shares the developed. Expert, advisory and follow- Bank’s consolidated profits and improved concern and is ready for new challenges. up support is provided to investment the structure of its balance sheet. The skill of learning lessons from our own projects, securities of customers are is- The “Strategy until 2015”, approved mistakes and those of others is a sign of sued and placed, trust management and by the Board of Directors, aims to con- maturity. The outcomes and quality of the brokerage services are offered, risk hedg- sistently strengthen banking operations. Bank’s performance in the last year is elo- ing techniques employing derivative The Bank will continue to develop on quent evidence of its professionalism and financial instruments are applied, etc. the principles of versatility and diver- the maturity of its team. Gazprombank holds leading positions sification of its sectoral and product I wish all of us success in business in the Russian project and structured lines. The largest companies will remain and further fruitful cooperation.
Sincerely yours, Andrey I. Akimov Chairman of the Management Board GPB (OJSC)
5 Bank Profile Bank Profile
Main Events of 2010 and Positioning
●● The “Strategy until 2015” has been approved by the Bank’s Board of Directors.
●● The key performance indicators of Gazprombank’s business in 2010, grew at rates that exceeded banking system averages: corporate loans — by 37%; amounts owed to companies — by 33%; net profit — by 13%.
●● According to results from 2009, Gazprombank has allocated 36% of its net profit for dividends, calculated under RAS.
●● In financial markets, Gazprombank: placed a USD 1 billion issue of 6.25% Eurobonds maturing in December 2014; raised a syndicated loan for a total amount of USD 900 million repayable in 3 years; redeemed the first CHF 500 million issue of Eurobonds denominated in Swiss francs in a timely manner; registered and commenced the placement of 5 issues of GPB’s exchange-traded bonds for a total amount of RUR 50 billion; maintained its leading position among the TOP-3 arrangers of customer loans in the debt market by ensuring the placement of 24 issues of bonds at MICEX with a total face value exceeding RUR 200 billion; executed an agreement with LLC VEB Capital to arrange a RUR 30 billion issue of the Bank’s mortgage bonds within Vnesheconombank’s investment program for the construction of affordable housing and mortgage loans from 2010 to 2012.
●● Within its investment efforts, Gazprombank: acquired shares in ZAO MK Uralmash (50%) and ZAO Vasilievsky Rudnik (62%); sold non-banking assets, i.e. CJSC SIBUR Holding (25%) and OAO Sibneftegaz (51%); financed facility upgrades for manufacturing drilling and machine-building equipment within its investment program designed to develop industrial assets; acting through CJSC Gazprombank-Asset Management, has held the second position among all management companies in terms of net investments in mutual funds for three years; for the second straight year maintained leadership among M&A advisors with regard to the number of completed transactions (according to ThomsonReuters).
6 GAZPROMBANK GROUP. annual report 2010
●● A 25% + 1 share in OAO AKB Eurofinance Mosnarbank has been acquired as part of the project to set up Russian-Venezuelan joint-venture bank.
●● Gazprombank has ranked first in the rating of business partners for the Russian Federation’s higher education institutes in the nomination “Greatest Contribution to Support Gifted Students and Young Teachers 2009” among state participation companies.
Ratings as of January 1, 2011 International rating agencies have assigned the following ratings:
●● Moody’s Investors Service: long-term national and foreign currency deposit rating and debt rating — Baa3 (stable outlook); national scale bank deposit rating — Aaa.ru.
●● Standard & Poor’s: long-term counterparty credit rating and debt rating — BB (positive outlook); national scale long-term credit rating — ruAA.
The main Russian rating agencies such as Moody’s Interfax, Rus-Rating, Expert RA and Information Center Rating rate Gazprom- bank’s reliability and creditworthiness at the highest level.
As of year-end 2010, Gazprombank ranked #3 in terms of capital, assets, loans extended to the non-financial sector, and funds raised from corporate and individual customers.
As of January 1, 2010, Gazprombank’s share in total banking industry assets was 5%, equity — 5%, funds raised from corpora- tions — 11%, loans extended to corporate customers — 6%, retail deposits — 2%, and loans provided to individuals — 1.5%.
According to The Banker published in July 2011, the Bank, at year-end 2010, ranked: #152 in the world in terms of capital; #14 in the world in terms of return on capital.
7 95
90
85
80
75
70
65
60
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
95 37 95 90 90 36 85 85 80 3580 75 75 70 7034 65 65 60 33 60 JAN FEB MAR APR MAY JUN JUL JANAUG FEBSEP MAROCT APRNOV MAYDEC JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
37 1.800 95 37 1,70095 90 36 1,60090 36 85 1,50085
3580 1,400 3580 75 1,300 75 7034 1,200 7034 1,100 65 65 33 1,000 60 33 JAN FEB MAR APR MAY JUN JUL60 JANAUG FEBSEP MAROCT APRNOV MAYDEC JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL JANAUG FEBSEP MAROCT APRNOV MAYDEC JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT51,9 NOV DEC 60,5 51.9 60.5 67.9 75.9 75.2 67,9 6,3 1.800 6.3 8.0 9.2 11.9 10.5 75,9 37 1.800 76 8 37 9,2 1,70095 1,700 11,9 10,6 1,60090 36 1,600 36 1,50085 1,500 1,400 3580 1,400 35 1,300 75 1,300 1,200 2006 2007 2008 2009 2010 7034 1,200 34 1,100 1,100 65 1,000 33 1,000 60 JAN FEB MAR APR MAY JUN JUL33 AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL JANAUG FEBSEP MAROCT APRNOV MAYDEC JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL JANAUG FEBSEP MAROCT51,9 APRNOV MAYDEC JUN JUL AUG SEP OCT44 NOV DEC 60,5 51,944,1 51.9 60.5 67.9 75.9 75.244.0 44.1 67,9 39.2 5.0 14.9 60,539,2 6.3 8.0 9.2 11.9 10.551.936.3 60.557.8 67.942.76,3 75.921.2 75.22.4 67,95 36,3 75,9 6,3 1.800 6.3 8.0 76 9.28 11.9 10.5 75,914,9 57,8 37 1.800 9,2 76 42,78 9,2 1,700 11,9 21,2 1,700 10,6 11,92,4 10,6 1,600 36 1,600 1,500 1,500 1,400 35 1,400 1,300 2006 2007 2008 2009 1,3002010 2006 2007 2008 2009 2010 1,200 2006 2007 2008 2009 2010 34 1,200 1,100 1,100 1,000 33 1,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL JAN16.5AUG FEBSEP 22.9MAROCT44 APRNOV24.7 MAYDEC 28.5JUN JUL 38.2 AUG SEP OCT NOV DEC 187.2 250.4 51,944,1 316.7 389.1 441.5 44 51,9 44.0 44.1 39.2 5.0 14.9 60,539,2 44,1 60,5 51.936.3 60.557.8 67.942.7 75.921.2 75.22.4 44.0 44.1 67,95 39.236,3 5.0 14.9 39,2 51.9 60.5 67.96,3 75.9 75.2 67,9 36,3 6.3 8.0 9.2 11.9 10.536.3 57.8 75,914,9 42.757,8 21.2 2.4 5 6.3 8.0 9.28 11.9 10.5 16,5 57,86,3 1.800 76 42,7 75,914,9 187,2 9,2 22,9 42,78 21,2 76 250,4 11,9 24,7 21,29,2 1,700 2,4 316,7 10,6 28,5 11,92,4 38,2 389,110,6 1,600 441,5
1,500
1,400
1,300 2006 2007 2008 2009 2010 2006 2007 2008 2009 20102006 2007 2008 2009 2010 1,200 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 1,100
1,000
JAN16.5 FEB 22.9MAR APR24.7 MAY 28.5JUN JUL 38.2 0.81AUG SEP 2.28 OCT NOV3.15 DEC 3.81 4.21 187.2 250.4 316.7 389.1 441.5 16.50.39 1.4222.9 44 1.8824.7 1.9428.5 2.4538.2 187.2 0.04 250.4 0.33 44,151,9 316.7 0.81 389.10.91 441.51.23 44 44.0 44.1 39.2 5.0 14.9 39,260,5 44,1 51.936.3 60.557.8 67.942.7 75.921.2 75.22.4 44.0 44.1 67,95 39.236,3 5.0 14.9 39,2 16,5 6,3 36,3 6.3 8.0 9.2 11.9 10.536.3 57.8 14,975,9 42.757,8 21.2 2.4 5 22,9 187,28 16,5 57,8 76 42,7 14,9 187,2 24,7 250,49,2 22,9 42,7 21,2 250,4 28,5 316,711,9 24,7 21,2 2,4 316,7 38,2 389,110,6 28,5 2,4 441,5 38,2 389,1 441,5
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 20102006 2007 2008 2009 2010 2006 2007 2008 2009 2010
0.81 2.28 3.15 3.81 4.21 16.50.39 1.4222.9 1.8824.7 1.9428.5 2.4538.2 6.800.81 16.722.28 28.223.15 30.193.81 41.754.21 187.2 0.04 250.4 0.33 316.7 0.81 389.10.91 441.51.23 16.50.39 1.4222.9 44 1.8824.7 1.9428.5 2.4538.2 187.2 0.04 250.4 0.33 44,1 316.7 0.81 389.10.91 441.51.23 44.0 44.1 39.2 5.0 14.9 39,2 36.3 57.8 42.7 21.2 2.4 5 36,3 16,5 187,2 14,9 57,8 22,9 187,2 16,5 250,4 42,7 187,2 24,7 250,4 22,9 316,7 21,2 250,4 28,5 316,7 24,7 389,1 2,4 316,7 38,2 389,1 28,5 441,5 441,5 38,2 389,1 441,5
2006 2007 2008 2009 20102006 2007 2008 2009 2010 2006 2007 2008 2009 20102006 2007 2008 2009 2010 2006 2007 2008 2009 2010
1.3 5.4 5.4 37.4 58.1 59.2 6.800.81 16.722.28 28.223.15 30.193.81 41.754.21 9.0 10.7 5.5 25.6 31.6 25.9 16.50.39 1.4222.9 1.8824.7 1.9428.5 2.4538.2 6.800.81 16.722.28 28.223.15 30.193.81 41.754.21 187.2 0.04 250.4 0.33 316.7 0.81 389.10.91 441.51.23 0.39 1.42 1.88 1.94 2.45 0.04 0.33 0.81 0.91 1.23 187,2 16,5 250,4 187,2 187,2 22,9 316,7 250,4 250,4 24,7 389,1 316,7 316,7 28,5 441,5 389,1 38,2 389,1 441,5 441,5
2005 2006 2007 2008 2009 2010
2006 2007 2008 2009 2010 2006 2007 2008 2009 20102006 2007 2008 2009 2010 2006 2007 2008 2009 20102006 2007 2008 2009 2010
1.3 5.4 5.4 37.4 58.1 59.214.3 50.5 96.9 145.7 183.9 228.6 9.0 10.7 5.5 25.6 31.6 25.929.81.3 82.55.4 128.25.4 160.637.4 186.558.1 217.159.2 6.800.81 16.722.28 28.223.15 30.193.81 41.754.21 9.0 10.7 5.5 25.6 31.6 25.9 0.39 1.42 1.88 1.94 2.456.80 16.72 28.22 30.19 41.75 0.04 0.33 0.81 0.91 1.23
187,2 250,4 187,2 316,7 250,4 389,1 316,7 441,5 389,1 441,5
2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010
2006 2007 2008 2009 2010 2006 2007 2008 2009 20102006 2007 2008 2009 2010
14.3 50.5 96.9 145.7 183.9 228.6 29.81.3 82.55.4 128.25.4 160.637.4 186.558.1 217.159.214.3 50.5 96.9 145.7 183.9 228.6 9.0 10.7 5.5 25.6 31.6 25.929.81.3 82.55.4 128.25.4 160.637.4 186.558.1 217.159.2 6.80 16.72 28.22 30.19 41.759.0 10.7 5.5 25.6 31.6 25.9
187,2 250,4 2009 316,7 2010 389,1 441,5
2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
14.3 50.5 96.9 145.7 183.9 228.6 29.81.3 82.55.4 128.25.4 160.637.4 186.558.1 217.159.214.3 50.5 96.9 145.7 183.9 228.6 9.0 10.7 5.5 25.6 31.6 25.929.8 82.5 128.2 160.6 186.5 217.1
833.9 948.5 1,852.2 1,741.1 1,951.6
2009 2010 2009 2010
2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
14.3 50.5 96.9 145.7 183.9 228.6 29.8 82.5 128.2 160.6 186.5 217.1
833.9 948.5 1,852.2 1,741.1 1,951.6 175.1 201.6 127.9 196.0 221.9 833.9 948.5 1,852.2 1,741.1 1,951.6
175,1 201,6 127,9 196,0 221,9 2009 2010 2009 2010
2005 2006 2007 2008 2009 2010
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
175.1 201.6 127.9 196.0 221.9 273.1 346.2 557.3 723.3 988.2 833.9 948.5 1,852.2 1,741.1 1,951.6 175.1 201.6 127.9 196.0 221.9 833.9 948.5 1,852.2 1,741.1 1,951.6 175,1 201,6 127,9 196,0 221,9 175,1 201,6 127,9 196,0 221,9 2009 2010
Bank Profile
Key Performance Indicators 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
Assets, RUR billion Equity (capital), RUR billion
273.1 346.2 557.3 723.3 988.2 44.3 68.5 96.6 81.3 95.8 175.1 201.6 127.9 196.0 221.9 273.1 346.2 557.3 723.3 988.2 833.9 948.5 1,852.2 1,741.1 1,951.6 175.1 201.6 127.9 196.0 221.9
175,1 201,6 127,9 196,0 221,9 175,1 201,6 127,9 196,0 221,9
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
Loans provided to corporate customers, RUR billion Retail loans, RUR billion
44.3 68.5 96.6 81.3 95.8 225.5 284.6 510.0 710.2 947.0 273.1 346.2 557.3 723.3 988.2 44.3 68.5 96.6 81.3 95.8 175.1 201.6 127.9 196.0 221.9 273.1 346.2 557.3 723.3 988.2
175,1 201,6 127,9 196,0 221,9
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
Amounts owed to corporate customers, RUR billion Amounts owed to individuals, RUR billion
225.5 284.6 510.0 710.2 947.0 75.9 106.7 132.6 170.6 238.4 44.3 68.5 96.6 81.3 95.8 225.5 284.6 510.0 710.2 947.0 273.1 346.2 557.3 723.3 988.2 44.3 68.5 96.6 81.3 95.8
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
8
75.9 106.7 132.6 170.6 238.4 26.9 22.1 9.2 14.8 16.8 225.5 284.6 510.0 710.2 947.0 75.9 106.7 132.6 170.6 238.4 44.3 68.5 96.6 81.3 95.8 225.5 284.6 510.0 710.2 947.0
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
26.9 22.1 9.2 14.8 16.8 21.7 19.9 7.8 9.6 10.6 75.9 106.7 132.6 170.6 238.4 26.9 22.1 9.2 14.8 16.8 225.5 284.6 510.0 710.2 947.0 75.9 106.7 132.6 170.6 238.4
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
21.7 19.9 7.8 9.6 10.6 0.4 0.9 1.5 3.9 2.1 26.9 22.1 9.2 14.8 16.8 21.7 19.9 7.8 9.6 10.6 75.9 106.7 132.6 170.6 238.4 26.9 22.1 9.2 14.8 16.8
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
0.4 0.9 1.5 3.9 2.1 3.9 3.3 3.6 6.9 4.7 21.7 19.9 7.8 9.6 10.6 0.4 0.9 1.5 3.9 2.1 26.9 22.1 9.2 14.8 16.8 21.7 19.9 7.8 9.6 10.6
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
3.9 3.3 3.6 6.9 4.7 37.8 18.0 -34.4 36.4 29.6 0.4 0.9 1.5 3.9 2.1 3.9 3.3 3.6 6.9 4.7 21.7 19.9 7.8 9.6 10.6 0.4 0.9 1.5 3.9 2.1
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
37.8 18.0 -34.4 36.4 29.6 6.3 3.0 -5.5 3.1 3.7 3.9 3.3 3.6 6.9 4.7 37.8 18.0 -34.4 36.4 29.6 0.4 0.9 1.5 3.9 2.1 3.9 3.3 3.6 6.9 4.7
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
6.3 3.0 -5.5 3.1 3.7 37.8 18.0 -34.4 36.4 29.6 6.3 3.0 -5.5 3.1 3.7 3.9 3.3 3.6 6.9 4.7 37.8 18.0 -34.4 36.4 29.6
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
6.3 3.0 -5.5 3.1 3.7 37.8 18.0 -34.4 36.4 29.6 6.3 3.0 -5.5 3.1 3.7
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
6.3 3.0 -5.5 3.1 3.7
2006 2007 2008 2009 2010 95
90
85
80
75
70
65
60
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
95 37 95 90 90 36 85 85 80 3580 75 75 70 7034 65 65 60 33 60 JAN FEB MAR APR MAY JUN JUL JANAUG FEBSEP MAROCT APRNOV MAYDEC JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
37 1.800 95 37 1,70095 90 36 1,60090 36 85 1,50085
3580 1,400 3580 75 1,300 75 7034 1,200 7034 1,100 65 65 33 1,000 60 33 JAN FEB MAR APR MAY JUN JUL60 JANAUG FEBSEP MAROCT APRNOV MAYDEC JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL JANAUG FEBSEP MAROCT APRNOV MAYDEC JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT51,9 NOV DEC 60,5 51.9 60.5 67.9 75.9 75.2 67,9 6,3 1.800 6.3 8.0 9.2 11.9 10.5 75,9 37 1.800 76 8 37 9,2 1,70095 1,700 11,9 10,6 1,60090 36 1,600 36 1,50085 1,500 1,400 3580 1,400 35 1,300 75 1,300 1,200 2006 2007 2008 2009 2010 7034 1,200 34 1,100 1,100 65 1,000 33 1,000 60 JAN FEB MAR APR MAY JUN JUL33 AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL JANAUG FEBSEP MAROCT APRNOV MAYDEC JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL JANAUG FEBSEP MAROCT51,9 APRNOV MAYDEC JUN JUL AUG SEP OCT44 NOV DEC 60,5 51,944,1 51.9 60.5 67.9 75.9 75.244.0 44.1 67,9 39.2 5.0 14.9 60,539,2 6.3 8.0 9.2 11.9 10.551.936.3 60.557.8 67.942.76,3 75.921.2 75.22.4 67,95 36,3 75,9 6,3 1.800 6.3 8.0 76 9.28 11.9 10.5 75,914,9 57,8 37 1.800 9,2 76 42,78 9,2 1,700 11,9 21,2 1,700 10,6 11,92,4 10,6 1,600 36 1,600 1,500 1,500 1,400 35 1,400 1,300 2006 2007 2008 2009 1,3002010 2006 2007 2008 2009 2010 1,200 2006 2007 2008 2009 2010 34 1,200 1,100 1,100 1,000 33 1,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL JAN16.5AUG FEBSEP 22.9MAROCT44 APRNOV24.7 MAYDEC 28.5JUN JUL 38.2 AUG SEP OCT NOV DEC 187.2 250.4 51,944,1 316.7 389.1 441.5 44 51,9 44.0 44.1 39.2 5.0 14.9 60,539,2 44,1 60,5 51.936.3 60.557.8 67.942.7 75.921.2 75.22.4 44.0 44.1 67,95 39.236,3 5.0 14.9 39,2 51.9 60.5 67.96,3 75.9 75.2 67,9 36,3 6.3 8.0 9.2 11.9 10.536.3 57.8 75,914,9 42.757,8 21.2 2.4 5 6.3 8.0 9.28 11.9 10.5 16,5 57,86,3 1.800 76 42,7 75,914,9 187,2 9,2 22,9 42,78 21,2 76 250,4 11,9 24,7 21,29,2 1,700 2,4 316,7 10,6 28,5 11,92,4 38,2 389,110,6 1,600 441,5
1,500
1,400
1,300 2006 2007 2008 2009 2010 2006 2007 2008 2009 20102006 2007 2008 2009 2010 1,200 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 1,100
1,000
JAN16.5 FEB 22.9MAR APR24.7 MAY 28.5JUN JUL 38.2 0.81AUG SEP 2.28 OCT NOV3.15 DEC 3.81 4.21 187.2 250.4 316.7 389.1 441.5 16.50.39 1.4222.9 44 1.8824.7 1.9428.5 2.4538.2 187.2 0.04 250.4 0.33 51,944,1 316.7 0.81 389.10.91 441.51.23 44 44.0 44.1 39.2 5.0 14.9 60,539,2 44,1 51.936.3 60.557.8 67.942.7 75.921.2 75.22.4 44.0 44.1 67,95 39.236,3 5.0 14.9 39,2 16,5 6,3 36,3 6.3 8.0 9.2 11.9 10.536.3 57.8 75,914,9 42.757,8 21.2 2.4 5 22,9 187,28 16,5 57,8 76 42,7 14,9 187,2 24,7 250,49,2 22,9 42,7 21,2 250,4 28,5 316,711,9 24,7 21,2 2,4 316,7 38,2 389,110,6 28,5 2,4 441,5 38,2 389,1 441,5
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 20102006 2007 2008 2009 2010 2006 2007 2008 2009 2010
0.81 2.28 3.15 3.81 4.21 16.50.39 1.4222.9 1.8824.7 1.9428.5 2.4538.2 6.800.81 16.722.28 28.223.15 30.193.81 41.754.21 187.2 0.04 250.4 0.33 316.7 0.81 389.10.91 441.51.23 16.50.39 1.4222.9 44 1.8824.7 1.9428.5 2.4538.2 187.2 0.04 250.4 0.33 44,1 316.7 0.81 389.10.91 441.51.23 44.0 44.1 39.2 5.0 14.9 39,2 36.3 57.8 42.7 21.2 2.4 5 36,3 16,5 187,2 14,9 57,8 22,9 187,2 16,5 250,4 42,7 187,2 24,7 250,4 22,9 316,7 21,2 250,4 28,5 316,7 24,7 389,1 2,4 316,7 38,2 389,1 28,5 441,5 441,5 38,2 389,1 441,5
2006 2007 2008 2009 20102006 2007 2008 2009 2010 2006 2007 2008 2009 20102006 2007 2008 2009 2010 2006 2007 2008 2009 2010
1.3 5.4 5.4 37.4 58.1 59.2 6.800.81 16.722.28 28.223.15 30.193.81 41.754.21 9.0 10.7 5.5 25.6 31.6 25.9 16.50.39 1.4222.9 1.8824.7 1.9428.5 2.4538.2 6.800.81 16.722.28 28.223.15 30.193.81 41.754.21 187.2 0.04 250.4 0.33 316.7 0.81 389.10.91 441.51.23 0.39 1.42 1.88 1.94 2.45 0.04 0.33 0.81 0.91 1.23 187,2 16,5 250,4 187,2 187,2 22,9 316,7 250,4 250,4 24,7 389,1 316,7 316,7 28,5 441,5 389,1 38,2 389,1 441,5 441,5
2005 2006 2007 2008 2009 2010
2006 2007 2008 2009 2010 2006 2007 2008 2009 20102006 2007 2008 2009 2010 2006 2007 2008 2009 20102006 2007 2008 2009 2010
1.3 5.4 5.4 37.4 58.1 59.214.3 50.5 96.9 145.7 183.9 228.6 9.0 10.7 5.5 25.6 31.6 25.929.81.3 82.55.4 128.25.4 160.637.4 186.558.1 217.159.2 6.800.81 16.722.28 28.223.15 30.193.81 41.754.21 9.0 10.7 5.5 25.6 31.6 25.9 0.39 1.42 1.88 1.94 2.456.80 16.72 28.22 30.19 41.75 0.04 0.33 0.81 0.91 1.23
187,2 250,4 187,2 316,7 250,4 389,1 316,7 441,5 389,1 441,5
2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010
2006 2007 2008 2009 2010 2006 2007 2008 2009 20102006 2007 2008 2009 2010
14.3 50.5 96.9 145.7 183.9 228.6 29.81.3 82.55.4 128.25.4 160.637.4 186.558.1 217.159.214.3 50.5 96.9 145.7 183.9 228.6 9.0 10.7 5.5 25.6 31.6 25.929.81.3 82.55.4 128.25.4 160.637.4 186.558.1 217.159.2 6.80 16.72 28.22 30.19 41.759.0 10.7 5.5 25.6 31.6 25.9
187,2 250,4 2009 316,7 2010 389,1 441,5
2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
14.3 50.5 96.9 145.7 183.9 228.6 29.81.3 82.55.4 128.25.4 160.637.4 186.558.1 217.159.214.3 50.5 96.9 145.7 183.9 228.6 9.0 10.7 5.5 25.6 31.6 25.929.8 82.5 128.2 160.6 186.5 217.1
833.9 948.5 1,852.2 1,741.1 1,951.6
2009 2010 2009 2010
2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
14.3 50.5 96.9 145.7 183.9 228.6 29.8 82.5 128.2 160.6 186.5 217.1
833.9 948.5 1,852.2 1,741.1 1,951.6 175.1 201.6 127.9 196.0 221.9 833.9 948.5 1,852.2 1,741.1 1,951.6
175,1 201,6 127,9 196,0 221,9 2009 2010 2009 2010
2005 2006 2007 2008 2009 2010
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
175.1 201.6 127.9 196.0 221.9 273.1 346.2 557.3 723.3 988.2 833.9 948.5 1,852.2 1,741.1 1,951.6 175.1 201.6 127.9 196.0 221.9 833.9 948.5 1,852.2 1,741.1 1,951.6 175,1 201,6 127,9 196,0 221,9 175,1 201,6 127,9 196,0 221,9 2009 2010
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
273.1 346.2 557.3 723.3 988.2 44.3 68.5 96.6 81.3 95.8 175.1 201.6 127.9 196.0 221.9 273.1 346.2 557.3 723.3 988.2 833.9 948.5 1,852.2 1,741.1 1,951.6 175.1 201.6 127.9 196.0 221.9
175,1 201,6 127,9 196,0 221,9 175,1 201,6 127,9 196,0 221,9
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
44.3 68.5 96.6 81.3 95.8 225.5 284.6 510.0 710.2 947.0 273.1 346.2 557.3 723.3 988.2 44.3 68.5 96.6 81.3 95.8 175.1 201.6 127.9 196.0 221.9 273.1 346.2 557.3 723.3 988.2
175,1 201,6 127,9 196,0 221,9
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
225.5 284.6 510.0 710.2 947.0 75.9 106.7 132.6 170.6 238.4 44.3 68.5 96.6 81.3 95.8 225.5 284.6 510.0 710.2 947.0 273.1 346.2 557.3 723.3 988.2 44.3 68.5 96.6 81.3 95.8
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
75.9 106.7 132.6 170.6 238.4 26.9 22.1 9.2 14.8 16.8 225.5 284.6 510.0 710.2 947.0 75.9 106.7 132.6 170.6 238.4 44.3 68.5 96.6 81.3 95.8 225.5 284.6 510.0 710.2 947.0
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
26.9 22.1 9.2 14.8 16.8 21.7 19.9 7.8 9.6 10.6 75.9 106.7 132.6 170.6 238.4 26.9 22.1 9.2 14.8 16.8 225.5 284.6 510.0 710.2 947.0 75.9 106.7 132.6 170.6 238.4
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
21.7 19.9 7.8 9.6 10.6 0.4 0.9 1.5 3.9 2.1 26.9 22.1 9.2 14.8 16.8 21.7 19.9 7.8 9.6 10.6 75.9 106.7 132.6 170.6 238.4 26.9 22.1 9.2 14.8 16.8
GAZPROMBANK GROUP. annual report 2010
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
Capital Adequacy (Basel I), % Tier 1 capital adequacy, %
0.4 0.9 1.5 3.9 2.1 3.9 3.3 3.6 6.9 4.7 21.7 19.9 7.8 9.6 10.6 0.4 0.9 1.5 3.9 2.1 26.9 22.1 9.2 14.8 16.8 21.7 19.9 7.8 9.6 10.6
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
Ratio of non-performing loans, % Ratio of loan loss provisions to loan portfolio, %
3.9 3.3 3.6 6.9 4.7 37.8 18.0 -34.4 36.4 29.6 0.4 0.9 1.5 3.9 2.1 3.9 3.3 3.6 6.9 4.7 21.7 19.9 7.8 9.6 10.6 0.4 0.9 1.5 3.9 2.1
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
ROAA, % ROAE, %
37.8 18.0 -34.4 36.4 29.6 6.3 3.0 -5.5 3.1 3.7 3.9 3.3 3.6 6.9 4.7 37.8 18.0 -34.4 36.4 29.6 0.4 0.9 1.5 3.9 2.1 3.9 3.3 3.6 6.9 4.7
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
9
6.3 3.0 -5.5 3.1 3.7 37.8 18.0 -34.4 36.4 29.6 6.3 3.0 -5.5 3.1 3.7 3.9 3.3 3.6 6.9 4.7 37.8 18.0 -34.4 36.4 29.6
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
6.3 3.0 -5.5 3.1 3.7 37.8 18.0 -34.4 36.4 29.6 6.3 3.0 -5.5 3.1 3.7
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
6.3 3.0 -5.5 3.1 3.7
2006 2007 2008 2009 2010 Bank Profile
Geographic coverage
Murmansk
Kaliningrad Sovetsk
Sosnovy Bor
Saint Petersburg Maloshuika Severodvinsk Veliky Novgorod Zürich Arkhangelsk Staraya Russa Vytegra Borovichi Plesetsk Babayevo Ustyuzhna Smolensk Kaduy Konosha Nyandoma Cherepovets Sheksna Vozhega Tarnogsky gorodok Kuloy Vologda Sokol Klintsy Uglich Gryazovets Yubileiny Totma Vorkuta Starodub Myshkin Pogorelovo Usinsk Moscow Yaroslavl Nyuksenitsa Kotlas Kaluga Rostov Koryazhma Mikun Bryansk Privodino Urdoma Ukhta Pechora Aleksin Schelkovo Kostroma Veliky Ustyug Vychegodsky Tula Sindor Sosnogorsk Labytnangi Ivanovo Yamburg Kurchatov Novomoskovsk Kineshma Syktyvkar Vuktyl Salekhard Yagelny Yelets Nizhny Novgorod Long-Yugan Zapolyarny Belgorod Pripolyarny Надым Lipetsk Arzamas Kirov Verkhnekazymsky Pangody Novy Urengoy Priozerny Petropavlovsk-Kamchatsky Khalimsunt Igrim Korotchayevo Yoshkar-Ola Beloyarsky Pravookhettinsky Cheboksary Svetly Peregrebnoye Urengoy Priobye Pelym Nyagan Lykhma Gubkinsky Kazan Andra Tarko-Sale Ivdel Unyugan Sorum Izhevsk Yugorsk Муравленко Perm Saratov Mozhga Votkinsk Krasnoturyinsk Yakutsk Rostov-on-Don Taganrog Lesnoy Ноябрьск Chaikovsky Temryuk Novocherkassk Tolyatti Neftekamsk Nizhnyaya Tura Khanty-Mansiysk Novorossiysk Nizhny Tagil Samara Surgut Krasnodar Nefteyugansk Volgograd Novokuibyshevsk Pervouralsk Tuapse Ufa Yekaterinburg Nizhnevartovsk Sochi Armavir Izobilny Ryzdvyany Tobolsk Strezhevoy Sterlitamak Tyumen Aleksandrovskoye Nevinnomyssk Stavropol Salavat Chelyabinsk Shadrinsk Podgorodnyaya Prokrovka Orenburg Pyatigorsk Aksaraisky Kargasok Krasny Yar Rostoshi Magnitogorsk Parabel Ishim Astrakhan Kolpashevo Novotroitsk
Khasavyurt Omsk Seversk Makhachkala Tomsk Achinsk Komsomolsk-on-Amur Derbent Novosibirsk Zheleznogorsk Krasnoyarsk Yuzhno-Sakhalinsk Kemerovo Zelenogorsk
Barnaul Novokuznetsk Khabarovsk
Biysk
Angarsk Irkutsk Regional network of Gazprombank Group as of the end 2010: – 7 subsidiary banks (ZAO AKB Sibirgazbank, OAO KB Severgazbank, OAO Credit Ural Bank, AB GPB-Ipoteka (OAO), OOO CB Noyabrsknefte- Vladivostok kombinat, ZAO AREXIMBANK–GAZPROMBANK GROUP, Gazprombank (Switzerland) Ltd., and 2 associated banks (OAO Belgazprombank and OAO AKB Eurofinance Mosnarbank); – 3 representative offices: in Beijing (China), Ulan-Bator (Mongolia) Beijing and New Delhi (India); – more than 580 bank offices; – more than 3,000 ATMs, 2.1 thousand cash advance offices and 15.3 thou- New-Delhi sand POS-terminals.
10 GAZPROMBANK GROUP. annual report 2010
Murmansk
Kaliningrad Sovetsk
Sosnovy Bor
Saint Petersburg Maloshuika Severodvinsk Veliky Novgorod Zürich Arkhangelsk Staraya Russa Vytegra Borovichi Plesetsk Babayevo Ustyuzhna Smolensk Kaduy Konosha Nyandoma Cherepovets Sheksna Vozhega Tarnogsky gorodok Kuloy Vologda Sokol Klintsy Uglich Gryazovets Yubileiny Totma Vorkuta Starodub Myshkin Pogorelovo Usinsk Moscow Yaroslavl Nyuksenitsa Kotlas Kaluga Rostov Koryazhma Mikun Bryansk Privodino Urdoma Ukhta Pechora Aleksin Schelkovo Kostroma Veliky Ustyug Vychegodsky Tula Sindor Sosnogorsk Labytnangi Ivanovo Yamburg Kurchatov Novomoskovsk Kineshma Syktyvkar Vuktyl Salekhard Yagelny Yelets Nizhny Novgorod Long-Yugan Zapolyarny Belgorod Pripolyarny Надым Lipetsk Arzamas Kirov Verkhnekazymsky Pangody Novy Urengoy Priozerny Petropavlovsk-Kamchatsky Khalimsunt Igrim Korotchayevo Yoshkar-Ola Beloyarsky Pravookhettinsky Cheboksary Svetly Peregrebnoye Urengoy Priobye Pelym Nyagan Lykhma Gubkinsky Kazan Andra Tarko-Sale Ivdel Unyugan Sorum Izhevsk Yugorsk Муравленко Perm Saratov Mozhga Votkinsk Krasnoturyinsk Yakutsk Rostov-on-Don Taganrog Lesnoy Ноябрьск Chaikovsky Temryuk Novocherkassk Tolyatti Neftekamsk Nizhnyaya Tura Khanty-Mansiysk Novorossiysk Nizhny Tagil Samara Surgut Krasnodar Nefteyugansk Volgograd Novokuibyshevsk Pervouralsk Tuapse Ufa Yekaterinburg Nizhnevartovsk Sochi Armavir Izobilny Ryzdvyany Tobolsk Strezhevoy Sterlitamak Tyumen Aleksandrovskoye Nevinnomyssk Stavropol Salavat Chelyabinsk Shadrinsk Podgorodnyaya Prokrovka Orenburg Pyatigorsk Aksaraisky Kargasok Krasny Yar Rostoshi Magnitogorsk Parabel Ishim Astrakhan Kolpashevo Novotroitsk
Khasavyurt Omsk Seversk Makhachkala Tomsk Achinsk Komsomolsk-on-Amur Derbent Novosibirsk Zheleznogorsk Krasnoyarsk Yuzhno-Sakhalinsk Kemerovo Zelenogorsk
Barnaul Novokuznetsk Khabarovsk
Biysk
Angarsk Irkutsk
Vladivostok
GPB branches Beijing GPB supplementary, operational and lending and cash services offices GPB subsidiary and associated banks New-Delhi Representative offices abroad Regional presence of GPB (OJSC)
11 Bank Profile
Shareholders
Equity stake
As of January 01, 2010 As of January 01, 2011
ZAO Leader, (on behalf of Non-State Pension Fund GAZFOND) 42.89% 42.89%
OAO Gazprom 41.73% 41.73%
Non-State Pension Fund GAZFOND 7.11% 7.11%
Treasury stock 5.82% 6.58%
Individuals 2.45% 1.69%
12 GAZPROMBANK GROUP. annual report 2010
Board of Directors
Chairman of the Board of Directors
Alexey B. Miller Chairman of OAO Gazprom Management Board
Deputy Chairmen of the Board of Directors
Andrey I. Akimov Chairman of the Management Board of Gazprombank (Open Joint-stock Company)
Mikhail L. Sereda Deputy Chairman of OAO Gazprom Management Board, Chief Administration Officer of OAO Gazprom
Yury N. Shamalov President of Non-State Pension Fund GAZFOND
Members of the Board of Directors
Yelena A. Vasilyeva Deputy Chairperson of OAO Gazprom Management Board, Chief Accountant of OAO Gazprom
Anatoly A. Gavrilenko Chief Executive Officer of ZAO Leader, Trust Management
Ilya V. Eliseev Deputy Chairman of the Management Board of Gazprombank (Open Joint-stock Company)
Dmitry V. Konov President of OOO Sibur
Alexander V. Krasnenkov Chief Executive Officer of Baltic LNG Company
Andrey V. Kruglov Deputy Chairman of OAO Gazprom Management Board, Head of OAO Gazprom Financial and Economic Department
Kirill G. Seleznev Member of OAO Gazprom Management Board, Head of the Gas & Liquid Hydrocarbons Processing and Marketing Department
Nikolay Y. Senkevich Chief Executive Officer of OAO Gazprom-Media
13 Bank Profile
Management Board
Chairman of the Management Board
Andrey I. Akimov
Deputy Chairmen of the Management Board
Ilya V. Eliseev
Sergey S. Ivanov (until April 04, 2011)
Farid M. Kantserov
Viktor A. Komanov
Nikolay G. Korenev
Viktor B. Korytov
Svetlana E. Malyuseva Bank’s Chief Accountant
Alexey A. Matveev
Alexander Y. Muranov
Alexey A. Obozintsev
Famil K. Sadygov
Alexander I. Sobol
Members of the Management Board
Oleg M. Vaksman First Vice-President
Valery A. Seregin First Vice-President
Natalia A. Chervonenko First Vice-President
Alexander O. Shmidt First Vice-President
14 GAZPROMBANK GROUP. annual report 2010 Performance Results and Development Prospects
Russian Economy in 2010
The recovery of the Russian econo- by the anti-crisis measures of the gov- economy proved to be below growth my in 2010 was facilitated by the gener- ernment which gave rise to the recovery rates of the global economy that were ally improved global economic situation, of internal demand, both consumer and above 5% in 2010. growth in prices for exported Russian investment. GDP growth during the year One of the most noticeable trends raw materials due to increased external was 4% despite a pause in the economic of the previous year was the accelerated demand, recovery of stock markets and recovery due to a drop in agricultural growth in consumer prices which ex- strengthening of balance of payments. production expected in the 3rd quarter. ceeded all forecasts. While during the first A certain positive effect was also exerted At the same time, growth in the Russian six months of 2010, the moderate growth
Urals oil price, USD/barrel
95
90
85
80
75
70
65
60
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
37 15
36
35
34
33
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1.800
1,700
1,600
1,500
1,400
1,300
1,200
1,100
1,000
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
51,9 60,5 51.9 60.5 67.9 75.9 75.2 67,9 6.3 8.0 9.2 11.9 10.5 75,9 6,3 76 8 9,2 11,9 10,6
2006 2007 2008 2009 2010
44 44,1 44.0 44.1 39.2 5.0 14.9 39,2 36.3 57.8 42.7 21.2 2.4 5 36,3 14,9 57,8 42,7 21,2 2,4
2006 2007 2008 2009 2010
16.5 22.9 24.7 28.5 38.2 187.2 250.4 316.7 389.1 441.5
16,5 22,9 187,2 24,7 250,4 28,5 316,7 38,2 389,1 441,5
2006 2007 2008 2009 2010
0.81 2.28 3.15 3.81 4.21 0.39 1.42 1.88 1.94 2.45 0.04 0.33 0.81 0.91 1.23
2006 2007 2008 2009 2010
6.80 16.72 28.22 30.19 41.75
187,2 250,4 316,7 389,1 441,5
2006 2007 2008 2009 2010
1.3 5.4 5.4 37.4 58.1 59.2 9.0 10.7 5.5 25.6 31.6 25.9
2005 2006 2007 2008 2009 2010
14.3 50.5 96.9 145.7 183.9 228.6 29.8 82.5 128.2 160.6 186.5 217.1
2005 2006 2007 2008 2009 2010
2009 2010
833.9 948.5 1,852.2 1,741.1 1,951.6
2006 2007 2008 2009 2010
175.1 201.6 127.9 196.0 221.9
175,1 201,6 127,9 196,0 221,9
2006 2007 2008 2009 2010
273.1 346.2 557.3 723.3 988.2
2006 2007 2008 2009 2010
44.3 68.5 96.6 81.3 95.8
2006 2007 2008 2009 2010
225.5 284.6 510.0 710.2 947.0
2006 2007 2008 2009 2010
75.9 106.7 132.6 170.6 238.4
2006 2007 2008 2009 2010
26.9 22.1 9.2 14.8 16.8
2006 2007 2008 2009 2010
21.7 19.9 7.8 9.6 10.6
2006 2007 2008 2009 2010
0.4 0.9 1.5 3.9 2.1
2006 2007 2008 2009 2010
3.9 3.3 3.6 6.9 4.7
2006 2007 2008 2009 2010
37.8 18.0 -34.4 36.4 29.6
2006 2007 2008 2009 2010
6.3 3.0 -5.5 3.1 3.7
2006 2007 2008 2009 2010 Performance Results and Development Prospects Russian Economy in 2010
in prices was restrained by limited con- due to abnormally hot weather during Imports also increased significantly sumer demand, a sequential acceleration the summer last year, agricultural output compared to 2009 (by 29.7%), and to- of inflation commenced starting in Au- significantly decreased, impacting the taled USD 248.8 billion. The increase gust due to increasing global and domes- overall trend. Annual aggregate output in imports was associated with a suc- tic prices for grain and food; in December decreased by 11.9%. cessive restoration of physical imports 2010, prices increased by 1.1% compared Real disposable income grew by (by 28.1%), while prices for imported to 0.8% in November. At year-end 2010, 4.3% during 2010, with real salaries in- goods remained nearly unchanged. The headline inflation was 8.8%, the same as creasing by 4.2%. As for the labor mar- growth in imports was observed with the previous year. Moreover, by the start ket, the number of unemployed per- respect to all types of products. The of 2011, the economy had accumulated sons decreased by 0.7 million during import of investment goods increased significant inflation risks that resulted in 2010, averaging 5.6 million across the most noticeably. the growth of prices in other consumer year, or 7.5% of the economically ac- The trade balance was positive in market sectors. tive population (0.9 p.p. lower than the 2010 at USD 149.2 billion, USD 37.6 bil- Industrial output increased by 8.2% 2009 average). lion higher than in 2009. in 2010, with manufacturing making the At year-end, retail turnover increased The net outflow of capital from the greatest contribution with an 11.8% in- by 4.4% compared to 2009. Gradual private sector was USD 38.3 billion in crease. The growth of manufacturing growth in monthly retail turnover was 2010, and sharply accelerated by the and other economic output has been observed during the first half of 2010. end of the year. To a large extent this was significantly95 influenced by the growth After a drop in August and September due to a decreased interest in Russian in investment90 demand. Fixed capital 2010, the growth trend resumed. Paid assets on the part of foreign investors. expenditures increased by 6.0% during services increased by 1.4% during 2010. In late 2010, the acceleration of capital 85 2010; at the same time, the greatest ac- In the last year, in connection with outflows was also related to growth in celeration80 of investment growth was in a more favorable commodity market foreign assets in the banking sector. the 4th quarter and totaled 7.7%. environment, Russian exports increased By year-end 2010, the Ruble/Dollar 75 During the crisis, from 2009 until by 31.2% compared to 2009, and totaled exchange rate decreased slightly (by mid-2010,70 agriculture preserved stability USD 398.0 billion with physical volumes 0.9) while the Ruble/Euro exchange and positive65 trends best of all. However, increasing by 11.9%. rate increased significantly (by 6.3%), the
60
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Dual Currency Basket of the Russian Central Bank, RUR/basket unit
37
36
35
34
33
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
16 1.800 1,700
1,600
1,500
1,400
1,300
1,200
1,100
1,000
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
51,9 60,5 51.9 60.5 67.9 75.9 75.2 67,9 6.3 8.0 9.2 11.9 10.5 75,9 6,3 76 8 9,2 11,9 10,6
2006 2007 2008 2009 2010
44 44,1 44.0 44.1 39.2 5.0 14.9 39,2 36.3 57.8 42.7 21.2 2.4 5 36,3 14,9 57,8 42,7 21,2 2,4
2006 2007 2008 2009 2010
16.5 22.9 24.7 28.5 38.2 187.2 250.4 316.7 389.1 441.5
16,5 22,9 187,2 24,7 250,4 28,5 316,7 38,2 389,1 441,5
2006 2007 2008 2009 2010
0.81 2.28 3.15 3.81 4.21 0.39 1.42 1.88 1.94 2.45 0.04 0.33 0.81 0.91 1.23
2006 2007 2008 2009 2010
6.80 16.72 28.22 30.19 41.75
187,2 250,4 316,7 389,1 441,5
2006 2007 2008 2009 2010
1.3 5.4 5.4 37.4 58.1 59.2 9.0 10.7 5.5 25.6 31.6 25.9
2005 2006 2007 2008 2009 2010
14.3 50.5 96.9 145.7 183.9 228.6 29.8 82.5 128.2 160.6 186.5 217.1
2005 2006 2007 2008 2009 2010
2009 2010
833.9 948.5 1,852.2 1,741.1 1,951.6
2006 2007 2008 2009 2010
175.1 201.6 127.9 196.0 221.9
175,1 201,6 127,9 196,0 221,9
2006 2007 2008 2009 2010
273.1 346.2 557.3 723.3 988.2
2006 2007 2008 2009 2010
44.3 68.5 96.6 81.3 95.8
2006 2007 2008 2009 2010
225.5 284.6 510.0 710.2 947.0
2006 2007 2008 2009 2010
75.9 106.7 132.6 170.6 238.4
2006 2007 2008 2009 2010
26.9 22.1 9.2 14.8 16.8
2006 2007 2008 2009 2010
21.7 19.9 7.8 9.6 10.6
2006 2007 2008 2009 2010
0.4 0.9 1.5 3.9 2.1
2006 2007 2008 2009 2010
3.9 3.3 3.6 6.9 4.7
2006 2007 2008 2009 2010
37.8 18.0 -34.4 36.4 29.6
2006 2007 2008 2009 2010
6.3 3.0 -5.5 3.1 3.7
2006 2007 2008 2009 2010 GAZPROMBANK GROUP. annual report 2010
first time in the last three years the Ru- year-end, the RTSI increased by 22.7%, outflow in the rd3 and 4th quarters had ble exchange rate strengthened against to 1,772.53, while the MICEX index in- a significant impact on the currency the dual currency basket. The value of creased by 23.2%, to 1,687.99. The abso- market. The high level of Ruble liquidity the Dual Currency Basket decreased by lute leaders during the year were share associated with the inflow of proceeds RUR 1.07,95 or slightly less than 3% during indexes of the companies focused pri- from export operations and the soft the year. marily on the domestic market — con- monetary policy pursued by the Central 90 The Bank of Russia’s currency re- sumer products and services (+85.2%) Bank of the Russian Federation resulted serves increased85 by USD 36.8 billion dur- and machine-building (+73.9%). At the in decreasing interest rates both for ing 2010,80 due to balance of payments same time, companies operating in loans and in the public debt market. At transactions. At the same time, the the oil & gas industry, whose index in- the same time, the tightening of mon- 75 growth in reserves took place primarily creased by only 17.6%, were manifest etary policy due to noticeable growth in during 70the first half of the year and de- outsiders. Given the fact that the stock inflation entailed a correction in the mar- creased USD 8.6 billion by the end of the of the companies operating in that sec- ket for Ruble-denominated bonds dur- 65 year due to capital outflow. tor has a large share in the total capitali- ing the 4th quarter. The European debt Trends60 in the Russian stock mar- zation of consolidated indexes, the total crisis, however, had almost no effect on ket during 2010JAN wereFEB not homogeneMAR - APRgrowthMAY in the MICEXJUN and RTSIJUL appearsAUG theSEP Ruble debtOCT market.NOV Its limitedDEC effect ous and had three well defined move- to be relatively skewed. was a lower availability of borrowings for ments: an active growth during the first Apart from factors tied closely to the Russian banks in the external market. months37 of the year when the market global financial and economic crisis, the In general, the instability and hetero- managed to reach July 2008 levels; a de- Russian financial market in 2010 was geneity of social and economic develop- cline from36 April to June; and a resump- affected, on the one hand, by stabilized ment in Russia during 2010, and gener- tion of growth during the second half of prices for energy carriers at a level com- ally fragile positive trends demonstrate the year which resulted in new annual fortable for the Russian companies and the need to continue anti-crisis meas- 35 maximums. As to growth rates, the na- state budget and, on the other hand, ures by the government and more in- tional stock market holds a mid position by a limited growth in investments by tensive measures to reform the structure in the list34 of emerging economies. By Russian companies. A surge of capital of the Russian economy.
33
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
MICEX Index, points
1.800
1,700
1,600
1,500
1,400
1,300
1,200
1,100
1,000
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
51,9 60,5 51.9 60.5 67.9 75.9 75.2 67,9 6.3 8.0 9.2 11.9 10.5 75,9 6,3 76 8 17 9,2 11,9 10,6
2006 2007 2008 2009 2010
44 44,1 44.0 44.1 39.2 5.0 14.9 39,2 36.3 57.8 42.7 21.2 2.4 5 36,3 14,9 57,8 42,7 21,2 2,4
2006 2007 2008 2009 2010
16.5 22.9 24.7 28.5 38.2 187.2 250.4 316.7 389.1 441.5
16,5 22,9 187,2 24,7 250,4 28,5 316,7 38,2 389,1 441,5
2006 2007 2008 2009 2010
0.81 2.28 3.15 3.81 4.21 0.39 1.42 1.88 1.94 2.45 0.04 0.33 0.81 0.91 1.23
2006 2007 2008 2009 2010
6.80 16.72 28.22 30.19 41.75
187,2 250,4 316,7 389,1 441,5
2006 2007 2008 2009 2010
1.3 5.4 5.4 37.4 58.1 59.2 9.0 10.7 5.5 25.6 31.6 25.9
2005 2006 2007 2008 2009 2010
14.3 50.5 96.9 145.7 183.9 228.6 29.8 82.5 128.2 160.6 186.5 217.1
2005 2006 2007 2008 2009 2010
2009 2010
833.9 948.5 1,852.2 1,741.1 1,951.6
2006 2007 2008 2009 2010
175.1 201.6 127.9 196.0 221.9
175,1 201,6 127,9 196,0 221,9
2006 2007 2008 2009 2010
273.1 346.2 557.3 723.3 988.2
2006 2007 2008 2009 2010
44.3 68.5 96.6 81.3 95.8
2006 2007 2008 2009 2010
225.5 284.6 510.0 710.2 947.0
2006 2007 2008 2009 2010
75.9 106.7 132.6 170.6 238.4
2006 2007 2008 2009 2010
26.9 22.1 9.2 14.8 16.8
2006 2007 2008 2009 2010
21.7 19.9 7.8 9.6 10.6
2006 2007 2008 2009 2010
0.4 0.9 1.5 3.9 2.1
2006 2007 2008 2009 2010
3.9 3.3 3.6 6.9 4.7
2006 2007 2008 2009 2010
37.8 18.0 -34.4 36.4 29.6
2006 2007 2008 2009 2010
6.3 3.0 -5.5 3.1 3.7
2006 2007 2008 2009 2010 95
95 90
90 85
85 80
80 75
75 70
70 65
65 60
60 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
37
37
36
36 Performance Results and Development Prospects 35
35 The34 Russian Banking System in 2010 34
33
33 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC As of the end of 2010, 1,012 credit or- efforts aimed at optimizing its branch The aggregate capital of the banking JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC ganizations operated in Russia, including network which resulted in 2010 in the system exceeded RUR 4.7 trillion and in- 955 banks. In 2010, major multibranch reduction of its branches by 71 (11.0%). creased by 2.4% during the year, with the 1.800 banks, while expanding their presence Simultaneously with the reduction ratio of the aggregate capital of the bank- 1,7001.800 in the regional markets of banking ser- of branches in 2010, the number of ing system to GDP having reduced from vices,1,6001,700 simultaneously pursued a policy supplementary and operational offices 11.9% to 10.5%. Aggregate assets were aimed1,5001,600 at reducing costs through the increased. The total number of inter- growing up at a higher rate (a 14.9% in- optimization1,4001,500 of their regional opera- nal structural units in organizations in- crease) and totaled, at the end of the year, tions. The number of the existing credit creased by 884 units during the year to- RUR 33.8 trillion or 75.2% of GDP. The top 1,3001,400 organizations’ branches (exclusive of taling 38,431 as of January 01, 2011. This five banks’ share in the total assets of the 1,300 OAO1,200 Savings Bank of Russia) reduced resulted in the number of banks’ subdi- banking system is 47.7%. from1,1001,200 2,538 to 2,352 (by 7.3%). The Sav- visions increasing in 2010 from 26.5 to The aggregate share of assets of the ings 1,0001,100Bank of Russia also continued its 27.1 per 100,000 persons. banks, in which more than 50% of share capital (191 banks) is held by non-resi- 1,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC dent, was 18% of assets and 19% of the JAN FEB MAR APR MAY JUN JUL AUG SEP OCT51,9 NOV DEC Banking system assets and capital, % of GDP capital of the60,5 whole banking system. 51.9 60.5 67.9 75.9 75.2 67,951,9 6.3 8.0 9.2 11.9 10.5 The post-crisis75,960,5 rehabilitation6,3 of 51.9 60.5 67.9 75.9 75.2 67,976 8 6.3 8.0 9.2 11.9 10.5 economy in75,9 2010 entailed9,26,3 an increase 76 11,98 in demand for bank loans10,69,2 both on the part of corporate borrowers11,9 and on the 10,6 part of citizens. The main portion of the increase in lending volumes fell at the second half of the year under review. At year-end, the increase in the amount of 2006 2007 2008 2009 2010 loans extended to non-financial organi- 2006 2007 2008 2009 2010 zations was 12.1% and loans extended Assets Liabilities to individuals was 14.3%. The amount of overdue corporate loans reduced
Change in banking system assets and capital, 2006-2010, % , y-o-y by 14.6% and44 amount of overdue retail loans increased44,1 by 16.6%. 44.0 44.1 39.2 5.0 14.9 39,244 36,3 36.3 57.8 42.7 21.2 2.4 The growth44,15 rates of the banking 44.0 44.1 39.2 5.0 14.9 39,214,9 57,8 36.3 57.8 42.7 21.2 2.4 system’s resource5 base36,342,7 significantly 14,9 57,821,2 outstripped the growth42,72,4 rates of the 21,2 loan portfolio. The amount2,4 of money raised from organizations increased, at the end of the year, by 16.4%, exceed- ing RUR 11.1 trillion. The amount of deposits raised from individuals was 2006 2007 2008 2009 2010 RUR 9.8 trillion or 29% of the banking
Assets 2006 Capital 2007 2008 2009 2010 system’s liabilities, having increased in the year by 31.2%.
18 16.5 22.9 24.7 28.5 38.2 187.2 250.4 316.7 389.1 441.5 16.5 22.9 24.7 28.5 38.2 187.2 250.4 316.7 389.1 441.5 16,5 22,9 187,2 24,716,5 250,4 28,522,9 316,7187,2 38,224,7 389,1250,4 28,5 441,5316,7 38,2 389,1 441,5
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
0.81 2.28 3.15 3.81 4.21 0.39 1.42 1.88 1.94 2.45 0.040.81 2.280.33 3.150.81 3.810.91 1.234.21 0.39 1.42 1.88 1.94 2.45 0.04 0.33 0.81 0.91 1.23
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
6.80 16.72 28.22 30.19 41.75
6.80 16.72 28.22 30.19 41.75
187,2 250,4 316,7187,2 389,1250,4 441,5316,7 389,1 441,5
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
1.3 5.4 5.4 37.4 58.1 59.2 9.0 10.7 5.5 25.6 31.6 25.9 1.3 5.4 5.4 37.4 58.1 59.2 9.0 10.7 5.5 25.6 31.6 25.9
2005 2006 2007 2008 2009 2010
2005 2006 2007 2008 2009 2010
14.3 50.5 96.9 145.7 183.9 228.6 29.8 82.5 128.2 160.6 186.5 217.1 14.3 50.5 96.9 145.7 183.9 228.6 29.8 82.5 128.2 160.6 186.5 217.1
2005 2006 2007 2008 2009 2010
2005 2006 2007 2008 2009 2010
2009 2010 2009 2010
833.9 948.5 1,852.2 1,741.1 1,951.6
833.9 948.5 1,852.2 1,741.1 1,951.6
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
175.1 201.6 127.9 196.0 221.9
175.1 201.6 127.9 196.0 221.9 175,1 201,6 127,9 196,0 221,9
175,1 201,6 127,9 196,0 221,9
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
273.1 346.2 557.3 723.3 988.2
273.1 346.2 557.3 723.3 988.2
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
44.3 68.5 96.6 81.3 95.8
44.3 68.5 96.6 81.3 95.8
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
225.5 284.6 510.0 710.2 947.0
225.5 284.6 510.0 710.2 947.0
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
75.9 106.7 132.6 170.6 238.4
75.9 106.7 132.6 170.6 238.4
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
26.9 22.1 9.2 14.8 16.8
26.9 22.1 9.2 14.8 16.8
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
21.7 19.9 7.8 9.6 10.6
21.7 19.9 7.8 9.6 10.6
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
0.4 0.9 1.5 3.9 2.1
0.4 0.9 1.5 3.9 2.1
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
3.9 3.3 3.6 6.9 4.7
3.9 3.3 3.6 6.9 4.7
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
37.8 18.0 -34.4 36.4 29.6
37.8 18.0 -34.4 36.4 29.6
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
6.3 3.0 -5.5 3.1 3.7
6.3 3.0 -5.5 3.1 3.7
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010 GAZPROMBANK GROUP. annual report 2010
Group’s Financial Totals and Performance Indicators
Gazprombank Group’s business is both existing and new customers rep- The most significant growth in conducted within individual opera- resenting the strategic sectors of the corporate loans was achieved by tional business units, which are primar- national economy. The loan portfo- loan portfolios servicing the metal- ily represented by banking and non- lio, including all allowances, increased lurgy, telecommunications, oil & gas, financial assets consolidated in the by 34.7% compared with 2009, to agriculture, transportation and food Group’s financials. RUR 1,084.0 billion. At the same time, industries. Gazprombank Group’s consolidated the amount of corporate loans increased At the end of 2010, the level of assets at year-end increased by 12% to by 36.6% and totaled RUR 988.2 billion. non-performing loans (aggregate loans RUR 1,951.6 billion. The amount of retail loans also increased remaining past due for more than In 2010, Gazprombank continued from RUR 81.3 billion at year-end 2009 to 90 days) decreased both in absolute to expand its lending operations using RUR 95.8 billion as of January 1, 2011. terms and in relation to the size of the
The main financial performance indicators of Gazprombank Group
Dec 31, 2010, Dec 31, 2009, Change in 2010 RUR billion RUR billion Assets 1951.6 1741.1 +12.1% Equity 221.9 196.0 +13.2% Loans provided to corporate customers 988.2 723.3 +36.6% Retail loans 95.8 81.3 +17.9% Securities 233.6 182.6 +27.9% Funds held for corporate customers 947.0 710.2 +33.3% Amounts owed to individuals 238.4 170.6 +39.8% Issued securities 145.3 169.1 –14.1% Subordinated deposits 143.4 144.6 –0.8%
Capital adequacy (Basel I), % 16.8 14.8 +2.0 pct. Tier 1 capital adequacy, % 10.6 9.6 +0.9 pct. Ratio of non-performing loans to loan portfolio, % 2.1 3.9 -1.8 pct. Ratio of loan loss provisions to loan portfolio, % 4.7 6.9 -2.2 pct.
2010 2009 Change in 2010 Net profit of the Group, RUR billion 66.3 58.8 +12.8% Total income of the Group, RUR billion 76.6 65.1 +17.6% ROAE, % 29.6 36.4 ROAA, % 3.7 3.1 Net interest margin, % 2.5 2.6 Ratio of operating expenses to operating income, % 32.1 18.9
19 95
90
85
80
75
70
65
60
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
37
36
35
34
33
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1.800
1,700
1,600
1,500
1,400
1,300
1,200
1,100
1,000
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
51,9 60,5 51.9 60.5 67.9 75.9 75.2 67,9 6.3 8.0 9.2 11.9 10.5 75,9 6,3 76 8 9,2 11,9 10,6
2006 2007 2008 2009 2010
44 44,1 44.0 44.1 39.2 5.0 14.9 39,2 36.3 57.8 42.7 21.2 2.4 5 36,3 14,9 57,8 42,7 21,2 2,4
2006 2007 2008 2009 2010
16.5 22.9 24.7 28.5 38.2 187.2 250.4 316.7 389.1 441.5
16,5 22,9 187,2 24,7 250,4 28,5 316,7 38,2 389,1 441,5
2006 2007 2008 2009 2010
0.81 2.28 3.15 3.81 4.21 0.39 1.42 1.88 1.94 2.45 0.04 0.33 0.81 0.91 1.23
2006 2007 2008 2009 2010
6.80 16.72 28.22 30.19 41.75
187,2 250,4 316,7 389,1 441,5
2006 2007 2008 2009 2010
1.3 5.4 5.4 37.4 58.1 59.2 9.0 10.7 5.5 25.6 31.6 25.9
2005 2006 2007 2008 2009 2010
14.3 50.5 96.9 145.7 183.9 228.6 29.8 82.5 128.2 160.6 186.5 217.1
2005 2006 2007 2008 2009 2010
2009 2010
833.9 948.5 1,852.2 1,741.1 1,951.6
2006 2007 2008 2009 2010
175.1 201.6 127.9 196.0 221.9
175,1 201,6 127,9 196,0 221,9
2006 2007 2008 2009 2010
273.1 346.2 557.3 723.3 988.2
2006 2007 2008 2009 2010
44.3 68.5 96.6 81.3 95.8
2006 2007 2008 2009 2010
225.5 284.6 510.0 710.2 947.0
2006 2007 2008 2009 2010
75.9 106.7 132.6 170.6 238.4
2006 2007 2008 2009 2010
26.9 22.1 9.2 14.8 16.8
2006 2007 2008 2009 2010
21.7 19.9 7.8 9.6 10.6
2006 2007 2008 2009 2010
0.4 0.9 1.5 3.9 2.1
2006 2007 2008 2009 2010
3.9 3.3 3.6 6.9 4.7
2006 2007 2008 2009 2010
37.8 18.0 -34.4 36.4 29.6
2006 2007 2008 2009 2010
6.3 3.0 -5.5 3.1 3.7
Performance Results and Development Prospects Group’s Financial Totals and Performance Indicators
loan portfolio (2.1% compared to 3.9% at 2006 2007 2008 2009 2010 Loan portfolio breakdown as of December 31, 2010 year-end 2009). The improvement in the quality of Gazprombank’s loan portfolio resulted in the reduction of loan loss allowances from 6.9% of the total loan portfolio at year-end 2009, to 4.7% as of January 1, 2011. As of year-end 2010, loan loss pro- visions covered non-performing loans by more than 2.2 times. Gazprombank Group has increased its securities portfolio by 27.9% to RUR 233.6 billion, primarily thanks to increasing investments in Russian cor- porate bonds (+31%) and government bonds (+79%). In 2010, the share of customer mon- ey in liabilities increased from 57.0% to 68.5%. At year-end 2010, money raised from customers totaled RUR 1,185.4 bil- lion, having increased by 34.6% during
Industry 2010, Share, Change in 2010, the year. At the same time, money raised RUR billion % pct. from corporate customers increased by Metal manufacture 226,208 21.0 2.9 33.3% to RUR 947 billion in 2010. Mon- Acquisition finance 193,250 17.9 11.2 ey raised from individuals increased by Gas extraction, transportation 108,367 10.0 -2.2 39.8% to RUR 238.4 billion. The ratio of and sales enterprises loans, including allowances, to funds Individuals 95,832 8.8 -1.3 raised from customers was 91.5% as of Mining 52,649 4.9 -1.1 the January 2011, compared to 91.3% at year-end 2009. Oil extraction, transportation, 81,163 7.5 1.5 sales enterprises, and The Group’s capital has increased petrochemical industries by 13.2% since year-end 2009, to Electric power industry 49,294 4.5 -0.7 RUR 221.9 billion. Capital adequacy calcu- Machine building 39,570 3.7 -1.5 lated as required by the Basel Agreement Real estate construction 34,946 3.2 0.0 (Basel I) was 16.8% as of January 1, 2011, compared with 14.8% at year-end 2009; Telecommunications 33,739 3.1 1.1 tier I capital adequacy was 10.6% com- Nuclear industry 27,881 2.6 -2.7 pared to 9.7% in 2009. Therefore, capital Agriculture 23,921 2.2 0.2 adequacy figures are significantly higher Financing 20,792 1.9 -2.0 than the minimum level required by the and investment companies Basel Agreement and demonstrates the Food industry 19,990 1.8 1.1 efficiency of capital, including sufficiency Transport 19,927 1.8 1.2 for covering unexpended losses. Other 56,472 5.1 -7.7 Gazprombank Group’s net prof- its totaled RUR 66.3 billion in 2010,
20 GAZPROMBANK GROUP. annual report 2010
compared with RUR 58.8 billion in 2009. Profits from other securities trans- company. As a result, the Group stopped Its total income totaled RUR 76.6 billion actions totaled RUR 4.6 billion in 2010, consolidating the financial indicators of in 2010 compared with RUR 65.1 billion compared with RUR 34.3 billion in 2009. SIBUR Holding Group in December 2010. in 2009. Return on equity in 2010 was The value of the Group’s industrial as- In 2010, net income from FX trans- 29.6% and return on assets was 3.7%. sets increased in 2010 to RUR 37.7 billion actions including those resulting from In 2010, the market faced a general compared with RUR 11.8 billion in 2009. the revaluation of forward transactions downward trend in interest rates which Industrial assets in 2010 included those in totaled RUR 12.3 billion compared with maintained income for banks from lend- the petrochemical segment (SIBUR Hold- RUR 28.0 billion recorded in 2009. ing and commission operations stable ing Group), machine-building segment In spite of its significant indicators of during 2010 at RUR 40.1 billion, a level (OMZ Group and a number of other as- business growth, Gazprombank strictly comparable to 2009. In general, net in- sets), media business (Gazprom Media monitors the level of its personnel-re- terest margin was 2.5% in 2010, nearly Group) and a series of other investments. lated expenses and other administrative unchanged from 2009 (2.6%). At the In 2010, Gazprombank sold a series costs. In 2010, the ratio of operating ex- same time, the second half of 2010 wit- of investments in non-banking assets, in penses to operating income was 32.1%. nessed an upward trend in relation to particular, 51% of shares in OAO Sibneft- This is within the target range set by the net interest market due to a decrease egaz, and 25% of shares in CJSC SIBUR the bank for controlling the level of its in the cost of the resource base. Holding. Profits from those transactions expenses. Expenses incurred to create loan pro- were RUR 23.3 billion. Apart from the As a result of the sale of non-bank- visions in 2010 were associated solely sale of the block of shares in CJSC SIBUR ing investments, Gazprombank expects with the growth of lending operations Holding, Gazprombank’s management growth to further exceed 2010 for its and made up RUR 1.7 billion. decided to sell its remaining share in the main banking business in 2011.
21 Performance Results and Development Prospects
Development Strategy for 2011-2015
In the year under review, the Bank account, first of all, its modernization Another important strategic goal for summarized the results of implementing goals as well as the provisions and pa- Gazprombank is the strengthening of the Strategy until 2010 and developed rameters of the development strategy its position among the leading Russian the new Strategy until 2015, which has set for the Russian Federation banking banks offering investment banking ser- been approved by the Bank’s Board of sector for 2011-2015. vices. That will be achieved by expanding Directors. The development strategy set for the product line and increasing the cus- Gazprombank’s performance during 2011-2015 aims to increase sharehold- tomer base. the last 5 years demonstrates its high lev- er value for GPB and maintain at least It is planned to further improve and el of competitiveness and strengthening third place in the banking industry in extend efforts in financial markets, to positions in the Russian banking sector. terms of assets. The banking segment become one of the top three players in of GPB Group will continue to develop the Russian OTC market, and to increase on the principles of universalization and the Bank’s share of the syndicated fi- The targets set for further diversification of its customer nance and asset securitization markets. business areas by the base, industries served and product Gazprombank intends to continue to end of 2010 have been lines. To maintain and strengthen GPB implement its primary and secondary surpassed the growth Groups’ position in the banking system, share and bond placement programs, rates of Bank’s assets have it is planned to more than double assets, to offer investment advisory services, in- noticeably exceeded sector primarily by increasing the share of cus- cluding those for privatization deals, as averages. The increase tomer loans in the Bank’s assets. well as advisory and financing services in the SIZE of assets was Servicing with the largest customers is for mergers and acquisitions. The intend- primarily facilitated one of Gazprombank’s main competitive ed outcome of these efforts is nearly by consumer loans. advantages. The development of stable a three-fold growth in commission rev- long-term relations with these custom- enues from investment business. ers is one of the key strategic objectives. The highly efficient management of The customer base and product line By the end of 2015, the Bank’s corporate the portfolio of shares in rapidly growing have been significantly diversified large- loan portfolio will make up more than and highly liquid companies, ensuring ly due to the introduction of investment 60% of the assets belonging to GPB an increase in the value of investments banking products and services; the sales Group’s banking segment. For this pur- and their subsequent sale with a high network has been expended in perspec- pose, the amount of loans extended to level of return, will enable the Bank to tive business regions. The trends and corporate customers will more than dou- increase its income from transactions in conditions for growing the Bank’s busi- ble. There will be a noticeable increase in assets of that type. ness have required a significant increase the amount of investment lending. In its work with retail customers, in its capital that has been successfully The structure of the loan portfolio Gazprombank aims to maintain priori- completed. will undergo certain changes in relation ties for providing services to the em- The results from implementing the to its customer segments. The largest ployees of corporate customers. The Strategy until 2010 have validated the businesses will remain a target customer main mission is to increase income adopted strategic course and helped segment in lending operations. At the from retail lending operations and of- establish development priorities for the same time, it is proposed to diversify the fer a wide range of services to retail next 5 years. In setting long-term plans, loan portfolio by increasing the share of customers. The retail loans portfolio is the development goals set for the Rus- loans extended to mid-sized corporate expected to increase by almost three sian economy have been taken into customers. times. Increase in mortgage-backed
22 GAZPROMBANK GROUP. annual report 2010
lending for the employees of Gazprom will be ensured by improving banking rate for its assets. The performance Group and other corporate customers, technology. achieved (return on assets and equity) representing petochemical, nuclear, oil The implementation of key strategies also demonstrates GPB Group’s poten- and power sectors is a top-priority task. will increase profit and capital for GPB tial to remain highly competitive from Dynamic growth in the retail business Group and ensure competitive growth 2011 to 2015 while growing.
Participation in Federal and Regional Programs and Projects
agro-industrial holdings in the Orel, Li- companies that have emission sources. Confirming its status petsk, Sverdlovsk and Belgorod regions. By the end of 2010, CTF had created as a backbone bank with As of January 1, 2011, the total financing a portfolio of contracts to buy 6% of the state-oriented thinking, provided by the Bank for the project ex- Russian ЕСВ market. In 2010, the Govern- Gazprombank actively ceeded RUR 40 billion. ment approved three projects prepared participates in the Gazprombank provides a set of jointly with the Bank’s strategic partners implementation of federal banking services to participants in the MMK, OJSC Oil Company Rosneft and and regional economic “Program on Constructing Olympic Fa- OAO RUSAL Krasnoyarsk. In the report- and financial programs. cilities and Developing Sochi as a Moun- ing year, CTF once again ranked No.1 in tain Climate Resort”. As to the “Devel- the Environmental Rankings of the inter- opment of the Transport System of the national edition of Energy Risk in the cat- Gazprombank, as an authorized Russian Federation (Years 2010 to 2015)” egory “Primary market of carbon units”. bank, finances contractors who are par- program, the Bank is acting as a financial Gazprombank is an active participant ties to government contracts within the adviser and underwriter for the project in the efforts being taken to develop the “Housing” federal target program and designed to reconstruct federal highway financial infrastructure of the Russian activities of MC LLC Skolkovo within the M-1 “Belarus” Moscow — Minsk”. market. “Education” federal target program. Gazprombank is actively participating In particular, the development of Implementation of the “Mortgage in the implementation of the govern- the project to arrange exchange com- for servicemen” mortgage loan pro- ment’s environmental and climate pol- modity trades on the Saint-Petersburg gram was started under an agree- icy on a corporate level. As part of efforts International Mercantile Exchange ment executed between the Bank and to implement the environmental mecha- (ZAO SPIMEX) continued at impres- FGU Rosvoenipoteka. nisms contemplated by the Kyoto Proto- sive rates in 2010. A regulatory base The Bank also finances enterprises col to the UN Framework Convention on and technological support for clear- belonging to the agro-industrial com- Climate Change, Gazprombank jointly ing services to be provided to traders plex within the Top-Priority National Pro- incorporated the special purpose carbonic based on RDK (ZAO)’s clearing system ject “Development of the Agro-Industrial company Carbon Trade and Finance S.A. were prepared using advanced for- Complex”. RUR 19.8 billion of loans have (CTF) with Dresdner Bank (Germany) eign practices with the involvement been extended since 2006 to finance (currently Commerzbank) in 2006. A full of Gazprombank’s specialists to ensure the construction of large livestock and range of services to implement carbonic access to a wide range of settlement poultry facilities initiated by Russian projects are being provided to Russian services and banking products. During
23 Performance Results and Development Prospects Participation in Federal and Regional Programs and Projects
the reporting year, ZAO SPIMEX’s com- Working Committee on arranging ex- Agro-Industrial Complex” and a federal plex — RDK (ZAO) covered up to 10% change trades in gas (Order No.64 issued program on subsidizing the utilization of of sales in the domestic oil product by OAO Gazprom on March 18, 2010). old cars. market made using exchange tech- During the implementation of these The Bank’s branches are participat- nologies with a stable increase in spot measures with Gazprombank specialists, ing in the implementation of a number trades up to 15% of the domestic out- RDK (ZAO) and OOO Gazprom Mezhre- of regional programs designed to pro- put of that commodity group. giongaz, trained potential traders and vide young families with dwellings, de- In addition, proper attention was paid tested the settlement and clearing com- velop and support small and mid-sized to improving exchange trade arrange- plex and trading platform. Full readiness businesses and develop physical cul- ments for natural gas within the efforts for servicing trades in natural gas futures ture and sports. Throughout 2010, the being made to develop partnerships was confirmed. Bank provided significant financial sup- with the gas industry. That work with All branches of the Bank are involved port to regional backbone enterprises; Gazprom Group was structured in line in implementing the National Projects aid was also provided for implement- with the action plan of the Temporary “Housing” and “Development of the ing anti-crisis measures in regions.
24 GAZPROMBANK GROUP. annual report 2010 Classic Banking Services
Corporate Business
Providing banking services to corporate One of Gazprombank’s top-priority The provision of operational clients remains the primary line of business strategic plan is to further increase vol- loans has been arranged for suppli- for Gazprombank Group. During the report- umes related to customers in the mid- ers and contractors directly involved in ing year, Gazprombank continued to devel- sized segment. In the year under review, Gazprom’s investment program. op on the principles of versatility, focusing this portion of the Bank’s portfolio more Within the successful performance on the market demand of target customer than doubled; industry standards for of a payment agent charged with the segments, both major companies, holdings selling loan products were introduced. payment of income on securities, divi- and a wide range of mid-sized corporate The product line for mid-sized compa- dends were paid to 545,000 sharehold- customers, 45,000 in all. nies is constantly being improved. ers of OAO Gazprom in 2010. The lump Gazprombank provides packaged sum payment technologies offered by banking services to the enterprises of Gazprombank, unique in Russia for pay- The Bank managed not only OAO Gazprom and the gas industry. ing income to significant numbers of to strengthen its positions As in previous years, special attention shareholders, help ensure that the issuer in its strategically was paid in 2010 to projects imple- will continue to comply with its statu- important traditional mented within the strategic partnership tory duty to pay dividends no later than sectors of economy, but with Gazprom, in particular, to manag- 60 days after Gazprom’s General Meet- also started to work with ing internal cash flows and monitoring ing of Shareholders adopts relevant customers representing payments. For the benefit of Gazprom resolutions. new industries. Apart Group, a cash pooling service (in Ru- A fruitful partnership with from the expansion of its bles and foreign currencies) has been OAO Novatek, one of the largest inde- customer base inside the successfully introduced and highly pendent gas producers, continued in country, Gazprombank is rated by Gazprom management. Most 2010 and partnerships were established actively interacting with of Gazprom’s subsidiary companies, with ZAO Nortgaz, another gas produc- the most promising major branches and representative offices er, for whom settlement accounts were enterprises in Ukraine across several time zones have been opened and a credit risk limit was set. and Belarus. connected to the system which allows Gazprombank is actively partnering on-line monitoring of cash movements with companies in the power indus- within Gazprom Group’s accounts, to try. In 2010, settlement accounts were As of December 31, 2010 the share create market conditions for investing opened for all branches of JSC FGC UES of large-scale and major corporate cli- temporarily free cash equal for all mem- (Backbone Electric Networks and En- ents in Group’s loan portfolio exceed- bers and to increase the effectiveness of terprises Operating Backbone Electric ed 92%. such investments. Network) with the Bank’s branches and
25 Classic Banking Services Corporate Business
head office. Gazprombank acted as one Region), as part of oil and gas industry including financing provided to bor- of the arrangers in offering corporate under the strategic partnership between rowers from the adjacent coal industry. bonds issued by JSC FGC UES. JSC Gazprom Neft and OJSC Oil Com- It is necessary to separately note the In developing its business with the pany Rosneft. increased volume of business with the Group of INTER RAO UES companies, the In 2010, Gazprombank significantly major ferrous and non-ferrous metallur- Bank began to provide services to the strengthened its position as a bank pro- gy holding companies such as Mechel energy sales companies of the Group viding services to OJSC ANK Bashneft. OAO, OAO TMK, EVRAZ Group S.A., and a cash pooling services was initi- To develop a strategic partnership with OJSC Novolipetsk Steel, UC RUSAL, Russ- ated for INTER RAO UES and its subsidi- OJSC ANK Bashneft, the Bank has es- kaya Mednaya Kompaniya ZAO, UMMC, aries JSC OGK-1, OAO Mosenergosbyt, tablished a loan and documentary limit MMK and major coal companies such as OJSC Altayenergosbyt, OAO Petersburg to finance the company’s day-to-day OJSC SUEK, JSC “CC” Kuzbassrazrezugol, Retail Company, OAO Saratovenergo operations. SBU Holding, OJSC Zarechnaya Mine and OJSC Tambov Energy Sales Com- The Bank is the support bank for and Mechel-Mining OAO. pany. The Bank is the exclusive provid- the nuclear power sector of the Rus- Special emphasis must be placed on er of payment processing services to sian Federation and holds leading po- Gazprombank’s role in financing invest- OAO Mosenergosbyt for customer ener- sitions with cash flow processing for ment projects, whose completion was gy bills. A brokerage services agreement a number of enterprises of the State critical for companies in those sectors. was executed with OAO RAO Energy Atomic Energy Corporation ROSATOM. Among major projects, the Bank’s par- System of East. The Bank’s customers include more than ticipation in financing the construction In 2010, the Bank continued its part- 160 of the State Corporation’s subsidiaries of a universal rail and structural steel mill nership with companies in the chemi- (57 new customers were attracted during at the Chelyabinsk Metallurgical Plant cal and petrochemical industries. With the year) including, inter alia, OAO Atom- (Mechel Group) is noteworthy. the addition of OAO Moscow Refinery, energoprom, OJSC Rosenergoatom Con- With representative offices in China the number of major Russian refineries cern, JSC TVEL, ARMZ Uranium Holding and India and subsidiary banks in Swit- receiving services from GPB (OJSC) has Co., JSC Techsnabexport, all major pro- zerland and Belarus, Gazprombank is increased to 20. duction companies and research centers. able to actively partner with the largest Salary-related projects have been In 2010, the Bank participated in all major metallurgical holdings, including those managed through GPB’s branch net- projects by companies in the industry, in- outside the Russian Federation. The Bank work for OJSC Tyre Enterprise Amtel- cluding the following: participates in providing syndicated and
Povolzhye and Voronezh Tyre Plant ●● Arranged a RUR 10 billion bonded commercial loans both to major Russian managed by OJSC SIBUR-Russian Tyres. debt for OAO Atomenergoprom; holding companies and to enterprises in
The number of the officers employed ●● Implemented service to reallocate the promising market of CIS countries, by those companies receiving salary us- funds between customer bank ac- e.g. Metinvest, a major Ukrainian metal- ing GPB’s plastic cards has increased to counts — cash pooling with the lurgical holding. 20,000 persons. group of TVEL Fuel Company and In developing its partnership with To support construction of a modern ARMZ Uranium Holding Co.; the subsidiaries of Russian Federal facility for producing polypropylene in ●● Supported international projects ini- Space Agency, the Bank has signed the Russian Federation, GPB (OJSC) has tiated by the ARMZ Uranium Holding a Partnership Agreement with the Inter- issued various types of guarantees for Co. to acquire uranium assets. national Association of Space Activities OOO Tobolsk-Polymer, a subsidiary of Gazprombank is one of the major Participants. CJSC SIBUR Holding, in favor of licensors financial partners of the metallurgical The main element of the Bank’s busi- and equipment suppliers. and coal industries. The total amount of ness with companies in the defense Packaged services have been pro- financing provided to major metallurgi- industry and machine-building sector vided to OAO Tomskneft-VNK (the larg- cal companies in 2010 was more than is the development of a set of corpo- est oil producing company in Tomsk RUR 170 billion and over RUR 268 billion rate solutions including both banking
26 GAZPROMBANK GROUP. annual report 2010
products and other products custom- in the transportation and transport Agreements with another 14 constitu- ized for each enterprise. infrastructure industries. Currently, ent entities of the Russian Federation The specific nature of Russian-made the Bank’s customers include major (Republic of Chuvashia, Mariy-El and military products supplied to foreign transportation companies such as Bashkortostan, Novosibirsk region) are in countries, and increased competition OJSC Aeroflot-Russian Airlines, Russian a stage of preparation. The Bank consid- between major players in the global Railways, OJSC Transaero and a num- ers its work with the constituent entities market require active banking support ber of others. of the Russian Federation as not only for export contracts which Gazprom- Particular emphasis in this sector is a mere partnership with their Adminis- bank provides to Russian companies in placed on the Bank’s partnerships with trations, but also as an integrated work close cooperation with State Corpora- companies that construct transportation involving all regional state-financed or- tion Rosoboronexport. infrastructure. Gazprombank is a leading ganizations, and as a way of expanding The Bank paid particular attention service provider to most of the major its presence in a given region. to the top-priority projects initiated by contracts within governmental and re- In 2010, the Bank actively financed the Russian defense industry and an- gional programs for reconstructing exist- the agro-industrial complex and nounced by the Russian Government ing roads and constructing new facilities companies in the food industry. The in 2010. These projects are designed to for upcoming large-scale events (e.g. Bank’s loan portfolio servicing these upgrade industry facilities, finance new APEC Summit 2012 in Vladivostok, Olym- companies exceeded RUR 40 billion at development and enhance the compet- pic Games in Sochi in 2014). In 2010, the year-end. The Bank partners with large itiveness of military products made by Bank actively developed its partnership vertically integrated agricultural hold- Russian companies by, inter alia, structur- with OJSC MOSTOTREST, setting a total ings at a federal or regional level which ing proposals to finance foreign buyers credit risk limit over RUR 25 billion and have their own raw materials base, pro- and using offset programs. issuing a bank guarantee to secure its cessing capacities, a stable ready-prod- One of the results of the Bank’s joint obligations under a Government Con- uct sales system as well as a stable fi- activities with the Federal Service for Mil- tract for RUR 18.2 billion. nancial position. About 50% of loans are itary-Technical Cooperation (FSMTC) was Gazprombank was the first bank to used to finance investment projects, in- Gazprombank’s decision to create the enter into a partnership agreement with cluding those under the “Development “Golden Idea” Fund in 2010, to facilitate the State Company Russian Highways of Agricultural Complex” National Priority military and technical cooperation and and to complete a transaction associat- Project. Investment projects supported to hold an anniversary competition to ed with an offering of Ruble-denominat- with the Bank’s financial resources are award the National Prize “Golden Idea” in ed bonds issued by the State Company. being successfully implemented in the December 2010. The Bank’s main customers from the Orel, Lipetsk, Belgorod and Sverdlovsk Gazprombank’s representatives joined communication industry include the regions, the Republic of Tatarstan, Ud- working teams established for interacting companies of the united holding Rost- murtia and in other regions of the Rus- with Russian Technologies State Corpora- elecom, JSFC Sistema, MTS, FSUE Post of sian Federation. tion, and, inter alia, for dealing with issues Russia. To expand its presence in the in- related to creating a single settlement Gazprombank constructively inter- surance market, the Bank increased its center for the Corporation. During the acts with governmental authorities of share as a guarantor bank in the clear- year, the Bank managed to organize work the constituent entities of the Russian ing system to 22% in 2010, providing on trilateral cooperation between the Federation. In 2010, the Bank executed settlement services to insurance com- corporate customers of OMZ Group, the Partnership Agreements with the Ad- panies which provide MTPL coverage Bank and OMZ to boost the sales of the ministrations of the Rostov region, Re- on a direct loss recovery basis. The Group’s products and to provide financial public of Tatarstan and Sverdlovsk re- amount of guarantee deposits placed support to buyers. gion. In aggregate, as of the beginning by companies providing MTPL cover- In 2010, Gazprombank actively of 2011, the Bank had executed Agree- age on accounts maintained with the developed relations with companies ments with 11 regional Administrations; Bank exceeded RUR 1 billion.
27 Classic Banking Services Corporate Business
In 2010, the Bank identified a new pension benefits for retail and corporate to the budget of excessive amounts of segment in the settlement services mar- customers in all operational subdivisions value added tax received by or refund- ket and made arrangements to establish of the Bank. ed to a tax payer upon its application. a partnership with CJSC OSMP (QIWI The Bank continued to actively ex- The Bank’s strategic customers, such as brand), a major operator of the instance pand its documentary credit business. the subsidiaries of LUKOIL Group, SIBUR payment market, to create a single set- The amount of bank guarantees issued Group, OJSC Gazprom Neftekhim Sala- tlement system for CJSC OSMP and pay- by GPB (OJSC) was RUR 337.6 billion vat, KuibyshevAzot OJSC and OJSC Oil ment agents in all regions where they (2,427 papers) in 2010, which is 2.5 times Company Rosneft, were the first to re- do business. higher than in 2009. At the same time, ceive such guarantees. At year-end 2010, Gazprombank’s Settlement Cent- the Bank’s total liabilities under these RUR 12 billion of these guarantees had er has been granted two awards by guarantees were about RUR 210 billion been issued. Deutsche Bank AG for making error-free at the end of 2010. At the request of the Bank’s custom- payments both in Dollars and Euros. The The highest demand was from ers and counterparty banks, 300 letters Bank has also been granted an award by companies in the machine-building, of credit were opened for a total amount Commerzbank “For High Level of STP in metallurgical, energy, gas, oil and min- of about RUR 34 billion; the amount 2009”. ing industries. The amount of guar- of transactions unsecured by the Moreover, during the year it was de- antees advised by the Bank totaled Bank’s customers on the date the let- cided to develop the “financial supermar- RUR 28 billion. ters of credit were opened was 78% of ket” institute and a development strategy In 2010, Gazprombank was one of the total amount of the transactions. was formulated. the first in the Russian market to devel- 440 letters of credit for a total amount of In particular, work has been done op and implement procedures for issu- RUR 268 billion were advised by the Bank to prepare and implement a project to ing the bank guarantees contemplated which was 1.4 times higher than the pre- sell products from Non-State Pension by Article 176.1 of the Tax Code of the vious year. In 2010, the Bank’s customers Fund GAZFOND related to mandatory Russian Federation, assuring repayment started to more actively use collection
Growth trends in sales of integrated customer cash flow management services
Product Indicator Growth in 2010 Corporate settlement center Holdings using the product from 46 to 67; by 1.45 times Customers (legal entities and branches) from 383 to 672; by 75% being members of such holdings Accounts connected to the service from 1308 to 2067; by 58% Subsidiary structures of OAO Gazprom from 31 to 76; by 2.4 times connected to the service Gazprom Group's accounts connected to the service from 558 to 765; by 37% Acceptance by a management Controlling specialized depositories from 7 to 10 company of payments from Controlled management companies from 10 to 17 a specialized depository Accounts connected to the service from 204 to 331; by 62% Redistribution of cash among Legal entities connected to the service from 32 to 70; by more customer bank accounts The service is provided to companies which are than 2 times (virtual cash pooling) members of the following groups: SUEK, TVEL, ARMZ Uranium Holding Co., INTER RAO UES Cash pooling for Gazprom Group Subsidiaries and branches of OAO Gazprom from 30 to 110 connected to the service
28 GAZPROMBANK GROUP. annual report 2010
transactions for settling accounts with was RUR 3 billion. The volume of busi- The Bank’s top priority short-term counterparties to foreign trade contracts. ness with the foreign banks, being projects include the development of The Bank performed RUR 731.6 billion of members of Gazprombank Group, was the trade finance business as well as the collection transactions. increased during the year, in particu- expansion of operations with exporters During 2010, the Bank continued to lar, with such banks as Belgazprom- under the government-backed program implement its strategy to further expand bank OJSC and AREXIMBANK — to support industrial product exports. trade finance transactions for corporate GAZPROMBANK GROUP (CJSC). In 2010, At year-end 2010, Gazprom- customers and financial institutions. The RUR 2.4 billion of transactions were bank’s turnover from factoring transac- total amount of transactions performed performed at the request of subsidiary tions was RUR 18.5 billion, which is more using trade finance instruments was banks to make settlements in connec- than two times higher than 2009. more than RUR 31 billion in 2010, which tion with the foreign trade business of To further grow the business in this is almost 3 times higher than in 2009. corporate customers. area, GPB-factoring (LLC), a subsidiary of The amount of transactions performed Terms were negotiated and propos- the Bank, was incorporated. In Septem- at the request of corporate customers als were furnished to the Bank’s strate- ber 2010, the first non-recourse factor- exceeded RUR 27 billion, including fi- gic partners to finance projects imple- ing transactions were performed. The nancing for import contracts using the mented with buyers from countries in financing of Gazprombank’s branch instruments of the documentary credit Asia, the Middle East, South America network customers was ensured via a re- business and funds raised from foreign and CIS within the government program mote access system. banks which totaled RUR 2.7 billon. designed to support Russian industrial In 2010, the Bank introduced To increase the Bank’s commis- export operations. For this purpose, two a standard factoring financing pro- sion income, active work was done projects associated with supplying Rus- gram for the suppliers of federal trade to expand the range and volume of sian hi-tech equipment to Angola and networks which increased the qual- trade finance transactions performed Ecuador are at the stage of coordinating ity of services offered to customers at the request of counterparty banks. loan and security documentation with thanks to accelerating limit setting The total amount of the transactions the concerned borrowers. procedures.
29 Classic Banking Services
Retail Business and E-Services
The development strategy for portfolio at year-end was 3.2%, with the Porsche Financial Services Rusland and Gazprombank’s retail business is aimed totaling 3.8%. AUTOVAZ. Partnerships were established at expanding and optimizing its cus- Gazprombank traditionally offers the with the official representative offices of tomer base and establishing a stable officers of its corporate customers a wide Cheri, Chance and Suzuki operating in group of individual customers consum- range of various lending programs. the Russian Federation such as Cheri Au- ing bank products. The Bank’s main tar- Within its strategic partnership with tomobiles Rus, QWEENGROUP (distribu- get customer segment is the officers of the gas sector, in 2010 the Bank devel- tor of Chance) and Suzuki Motors Rus. corporate customers and third-party oped and approved special mortgage To improve the attractiveness of individuals with a medium or high in- lending programs for the employees of Gazprombank’s credit cards, interest come level. Gazprom Group. rates were reduced in 2010 (by 2 pct.) The amount of deposits received The Bank executed a partnership and maximum limits available were in- from individuals to accounts maintained agreement with FGU Federal Depart- creased (to RUR 350,000). A new credit was RUR 238.4 billion as of January 1, ment of the Savings and Mortgage Sys- card-based lending program was ap- 2011 (a 40% increase during 2010). tem of Housing Support for Servicemen proved for the Bank’s individual borrow- Gazprombank Group’s retail credit to arrange lending programs for service- ers who had obtained mortgage or car portfolio was RUR 95.8 billion as of Janu- men. The “Mortgage for servicemen” purchase loans. ary 1, 2011, an 18% increase during year lending program has been developed Gazprombank’s corporate network which was significantly higher than mar- and approved. of points offering E-services covers 92 re- ket averages. In 2010, the Bank continued to imple- gions of Russia (regional, district and ma- The retail credit portfolio is currently ment special auto loan programs with jor industrial centers) with more than structured as follows: 68% — mortgage the representative offices of automobile 3,500 ATMs, more than 2,100 cash-out loans, 18% — consumer loans, 12% — companies such as ROLF Import (distrib- points and about 15 thousand POS ter- car purchase, and 2% — credit cards. The utor of Mitsubishi), Ford Motor Compa- minals installed. The Bank’s international share of overdue loans in the Bank’s retail ny, KIA Motors Rus, Hyundai Motor CIS, cards (VISA and MasterCard branded) ensure easy and convenient 24/7 access to bank account funds. New premium- grade products (VISA Infinite, MasterCard Trends in individual account balances , RUR billion World Signia) for VIP customers have been launched and offered. January 1, January 1, Annual 2010 2011 increase, % In 2010, Gazprombank offered its On-demand accounts 50.6 69.6 38% customers a wide range of co-branded Term deposit accounts 120.0 168.8 41% programs: ●● “Gazprombank — FC Zenit” Master- Composition of the retail loan portfolio, RUR billion Card settlement bank cards; ●● “Gazprombank — Aeroflot” Master- Loan Type 2009 2010 % change Card settlement bank cards, com- Mortgage loans 55.8 65.2 17 bining an international settlement Consumer loans 12.7 17.2 35 bank card from GPB (OJSC) and an Car purchase loans 12.3 11.8 -4 opportunity to earn miles under Credit cards and overdrafts 0.5 1.7 240 Aeroflot’s loyalty program “Aero- flot — Bonus”;
30 95
90
9585
9080
8575
8070
7565
7060 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 65
60
37 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
36 37
35 36
34 35
33 34 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
33
1.800 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1,700
1,600 1.800 1,500 1,700 1,400 1,600 1,300 1,500 1,200 1,400 1,100 1,300 1,000 1,200 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 1,100 51,9 1,000 60,5 51.9 60.5 67.9 75.9 75.2 67,9 6,3 JAN6.3 FEB 8.0 MAR APR9.2 MAY 11.9JUN JUL 10.5 AUG SEP OCT75,9 NOV DEC 76 8 51,9 9,2 60,5 11,9 51.9 60.5 67.9 75.9 75.2 67,9 10,6 6.3 8.0 9.2 11.9 10.5 75,9 6,3 76 8 9,2 11,9 10,6
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
44 44,1 44.0 44.1 39.2 5.0 14.9 39,2 36.3 57.8 42.7 21.2 2.4 5 36,3 14,9 57,8 44 42,7 44,1 21,2 44.0 44.1 39.2 5.0 14.9 39,2 2,4 36.3 57.8 42.7 21.2 2.4 5 36,3 14,9 57,8 42,7 21,2 2,4
GAZPROMBANK GROUP. annual report 2010 2006 2007 2008 2009 2010
●● “Gazprombank — Gazprom Neft” about the status of their pension ac- holders are offered a package of extra in- 2006 2007 2008 2009 2010 MasterCard co-branded settlement counts using the Bank’s ATMs (slips surance services. Since 2007, a program 16.5 22.9 24.7 28.5 38.2 bank cards,187.2 offering benefits250.4 at the 316.7printed out by389.1 ATMs accessing441.5 the offering discounts from 10 to 30% has fueling stations of JSC Gazprom Neft; Fund’s data base). Since the 1st quarter of been offered jointly with SOGAZ for the
●● Co-branded bank cards issued jointly 2011, the service has been offered in the holders of 16,5Gazprombank’s cards. 16.5 22.9 24.7 28.5 38.2 22,9 187,2 with the187.2 Moscow Subway250.4 (CJSC Ex- 316.7Bank’s branches.389.1 441.5 During24,7 2010, the Bank’s250,4 entire re- 28,5 316,7 press Card). A “Shareholder’s Card” is serviced gional network38,2 completed389,1 the imple- 441,5 Pension Cards were serviced in Mos- jointly with the Depository Center; as of mentation16,5 of a remote service system 22,9 187,2 cow and the Bank’s branches as part of January 1, 2011, 10,300 cards had been (that can be24,7 accessed via250,4 ATMs, self-ser- 28,5 316,7 a joint project with Non-State Pension issued. vice banking38,2 devices, and389,1 Telecard sys- 441,5 Fund GAZFOND, and a service was im- In cooperation with the insurance tem) to enable non-cash transactions for plemented to notify the Fund’s members company SOGAZ, Gazprombank card card holders to pay for services provided
2006 2007 2008 2009 2010 by the most popular telecom operators, internet providers, commercial TV and Non-cash Transactions Performed Using the Bank’s ATMs, RUR billion utility services, to repay loans obtained
20060.81 20072.28 20083.15 20093.81 20104.21 from Gazprombank, to pay for shares in 0.39 1.42 1.88 1.94 2.45 mutual investment funds or contribu- 0.04 0.33 0.81 0.91 1.23 tions to charities, etc. (over 230 services
0.81 2.28 3.15 3.81 4.21 are available). 0.39 1.42 1.88 1.94 2.45 0.04 0.33 0.81 0.91 1.23
2006 2007 2008 2009 2010
Payments Card-to-card transfers Repayment of loans
2006 2007 2008 2009 2010 Trends in bank6.80 card transactions16.72 at merchants28.22 serviced by30.19 Gazprombank,41.75 RUR billion
187,2 6.80 16.72 28.22 30.19 41.75 250,4 316,7 389,1 441,5 187,2 250,4 316,7 389,1 441,5
2006 2007 2008 2009 2010
20061.3 5.42007 5.4 2008 37.4 200958.1 201059.2 9.0 10.7 5.5 25.6 31.6 25.9
1.3 5.4 5.4 37.4 58.1 59.2 31 9.0 10.7 5.5 25.6 31.6 25.9
2005 2006 2007 2008 2009 2010
2005 2006 2007 2008 2009 2010
14.3 50.5 96.9 145.7 183.9 228.6 29.8 82.5 128.2 160.6 186.5 217.1
14.3 50.5 96.9 145.7 183.9 228.6 29.8 82.5 128.2 160.6 186.5 217.1
2005 2006 2007 2008 2009 2010
2005 2006 2007 2008 2009 2010
2009 2010
2009 2010
833.9 948.5 1,852.2 1,741.1 1,951.6
833.9 948.5 1,852.2 1,741.1 1,951.6
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
175.1 201.6 127.9 196.0 221.9
175,1 201,6 127,9 196,0 221,9
175.1 201.6 127.9 196.0 221.9
175,1 201,6 127,9 196,0 221,9
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
273.1 346.2 557.3 723.3 988.2
273.1 346.2 557.3 723.3 988.2
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
44.3 68.5 96.6 81.3 95.8
44.3 68.5 96.6 81.3 95.8
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
225.5 284.6 510.0 710.2 947.0
225.5 284.6 510.0 710.2 947.0
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
75.9 106.7 132.6 170.6 238.4
75.9 106.7 132.6 170.6 238.4
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
26.9 22.1 9.2 14.8 16.8
26.9 22.1 9.2 14.8 16.8
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
21.7 19.9 7.8 9.6 10.6
21.7 19.9 7.8 9.6 10.6
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
0.4 0.9 1.5 3.9 2.1
0.4 0.9 1.5 3.9 2.1
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
3.9 3.3 3.6 6.9 4.7
3.9 3.3 3.6 6.9 4.7
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
37.8 18.0 -34.4 36.4 29.6
37.8 18.0 -34.4 36.4 29.6
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
6.3 3.0 -5.5 3.1 3.7
6.3 3.0 -5.5 3.1 3.7
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010 Classic Banking Services Private Banking and Art Banking
Private Banking and Art Banking
Private Banking advisory processes for establishing arrangements for customers to partici- Gazprombank is one of leaders in long-term relations with its customers pate in auctions, advising on laws gov- the Russian Private Banking industry. based on mutual trust. Today, recom- erning the import and export of cultural Gazprombank offers high-income cus- mendations issued by the Banks’ cus- valuables, customs clearance and taxa- tomers a wide range of financial solu- tomers constitute an important part tion matters, as well as arrangements tions including both classic banking of new customers joining the Bank for expert examinations, insurance, and products and capital management ser- which evidences the high-quality work storage of pieces of art. vices in Russia and abroad. by customer relations managers and Private Banking customers also have In April 2010, the Private Bank- is a foundation for ensuring further access to analyses on various aspects of ing Unit was transformed into the growth in 2011. the art market, invitations to museums Private Banking Department (BPD). and gallery exhibitions, presentations This reorganization was a result of the Art Banking Project covering projects in the art field and par- Bank’s successful business develop- As part of its customer asset diversi- ticipation in art tours to the world’s lead- ment during recent years that gave rise fication strategy, the Bank continued to ing sales exhibitions, and many other to a significant increase in the amount provide financial and information ser- features. of assets raised and the number of vices in the art market in 2010, includ- Within the project, the Bank contin- customers served. ing investments related to art, decisions ues to make efforts to develop public- During the last two years, Gazprom- associated with the purchase or sale of private partnerships in the fields of cul- bank’s Private Banking team completed cultural valuables and their financial ture and infrastructure of the Russian art a significant effort to expand its prod- valuation. The set of services offered un- market, and endeavors to create new uct and service lines and to improve der the Art Banking Project also includes instruments and services.
Depository Business
Gazprombank’s Depository is one of A distinctive feature of Gazprom- of the Russian equity market; about the oldest and largest in Russia. bank’s depository is its customer-orient- 400,000 customer transactions were ex- The technologies developed and in- ed design. The Depository’s customer ecuted in 2010. troduced by the Bank, which are unique base, which is represented predominant- According to the ratings published by across the country, ensure the uninter- ly by private investors, contains about INFI PARTAD, as of July 1, 2010, GPB’s De- rupted functioning of one of the largest 0.6 million customers including both pository ranked No.3 in Russia in terms of depository networks which currently in- minority shareholders and major secu- the market value of securities deposited cludes over 120 depository offices, from rities market professionals and inves- by customers, and No.5 in terms of the Vladivostok to Kaliningrad and from tors. Total customer assets have reached value of property controlled by the spe- Arkhangelsk to Makhachkala. about 10% of the total capitalization cialized depository.
32 95
90 95 85 90 80 85 75 80 70 75 65 70 60 65 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
60
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 37
37 36
36 35
35 34
34 33
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 33
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 1.800
1,700 1.800 1,600 1,700 1,500 1,600 1,400 1,500 1,300 1,400 1,200 1,300 1,100 1,200 1,000
1,100 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 1,000 51,9 60,5 JAN51.9 FEB 60.5MAR APR67.9 MAY 75.9JUN JUL 75.2 AUG SEP OCT67,9 NOV DEC 6.3 8.0 9.2 11.9 10.5 75,9 6,3 51,976 8 60,5 9,2 51.9 60.5 67.9 75.9 75.2 67,9 11,9 6.3 8.0 9.2 11.9 10.5 75,9 10,66,3 76 8 9,2 11,9 10,6
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
44 44,1 44.0 44.1 39.2 5.0 14.9 39,2 36.3 57.8 42.7 21.2 2.4 5 36,3 14,944 57,8 44,1 42,7 44.0 44.1 39.2 5.0 14.9 39,2 21,2 36.3 57.8 42.7 21.2 2.4 5 36,32,4 14,9 57,8 42,7 21,2 2,4
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
16.5 22.9 24.7 28.5 38.2 187.2 250.4 316.7 389.1 441.5
16.5 22.9 24.7 28.5 38.2 187.2 250.4 316.7 389.1 441.5 16,5 22,9 187,2 24,7 250,4 28,5 316,7 38,216,5 389,1 22,9 441,5187,2 24,7 250,4 28,5 316,7 38,2 389,1 441,5
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
0.81 2.28 3.15 3.81 4.21 0.39 1.42 1.88 1.94 2.45 0.04 0.33 0.81 0.91 1.23
0.81 2.28 3.15 3.81 4.21 0.39 1.42 1.88 1.94 2.45 0.04 0.33 0.81 0.91 1.23
GAZPROMBANK GROUP. annual report 2010
2006 2007 2008 2009 2010 The Bank’s depository was the first of Gazprombank Group and major corpo- In 2010, the Bank actively developed custodian to provide infrastructural sup- rate customers, the depository is taking effective operational programs for the 2006 2007 2008 2009 2010 port to the “Affordable Housing” National measures to consolidate the Group’s as- record-keeping system covering shares Project and, 6.80therefore, achieved16.72 a lead- 28.22sets in one single30.19 depository. 41.75 issued by Russian issuers and derivative ing position in the mortgage-backed se- The produce line for the depository instruments (depository receipts). curities services6.80 market per 16.72the amount 28.22is being expanded;30.19 software and41.75 tech- The work performed187,2 during the year of deposited mortgages and business of nical upgrades are being implemented. will allow the Bank to promptly250,4 “adjust” 316,7 a specialized depository. GPB’s special- Given the fact that the Bank is currently operations for the depository389,1 network 441,5187,2 ized depository controls more than 30% a major Russian custodian, such transac- and services supporting250,4 units which in- 316,7 of the total amount of existing mort- tions may allow Gazprombank to posi- teract with shareholders389,1 and investors at gage coverage. tion itself in the future as a global custo- a time when Russian issuers441,5 will enter into To optimize and improve the reliabil- dian offering the highest quality services a practical phase of approaching new eq- ity of transactions between the members to its customers. uity markets (e.g. Asia-Pacific Region).
2006 2007 2008 2009 2010 Assets controlled by the specialized depository (SD)
2006 2007 2008 2009 2010
1.3 5.4 5.4 37.4 58.1 59.2 9.0 10.7 5.5 25.6 31.6 25.9
1.3 5.4 5.4 37.4 58.1 59.2 9.0 10.7 5.5 25.6 31.6 25.9
2005 2006 2007 2008 2009 2010
V alue of assets controlled by the SD, RUR billion Share of assets2005 controlled2006 by the SD2007 of the total2008 amount 2009 2010 of deposited mortgages, %
Transactions14.3 in mortgages50.5 held in custody96.9 145.7 183.9 228.6 29.8 82.5 128.2 160.6 186.5 217.1
14.3 50.5 96.9 145.7 183.9 228.6 29.8 82.5 128.2 160.6 186.5 217.1
2005 2006 2007 2008 2009 2010
2005 2006 2007 2008 2009 2010
Total amount of mortgages in safekeeping, RUR billion Total number of mortgages accepted for safekeeping, thousands
33
2009 2010
2009 2010
833.9 948.5 1,852.2 1,741.1 1,951.6
833.9 948.5 1,852.2 1,741.1 1,951.6
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
175.1 201.6 127.9 196.0 221.9
175,1 201,6 127,9 196,0 221,9 175.1 201.6 127.9 196.0 221.9
175,1 201,6 127,9 196,0 221,9
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
273.1 346.2 557.3 723.3 988.2
273.1 346.2 557.3 723.3 988.2
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
44.3 68.5 96.6 81.3 95.8
44.3 68.5 96.6 81.3 95.8
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
225.5 284.6 510.0 710.2 947.0
225.5 284.6 510.0 710.2 947.0
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
75.9 106.7 132.6 170.6 238.4
75.9 106.7 132.6 170.6 238.4
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
26.9 22.1 9.2 14.8 16.8
26.9 22.1 9.2 14.8 16.8
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
21.7 19.9 7.8 9.6 10.6
21.7 19.9 7.8 9.6 10.6
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
0.4 0.9 1.5 3.9 2.1
0.4 0.9 1.5 3.9 2.1
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
3.9 3.3 3.6 6.9 4.7
3.9 3.3 3.6 6.9 4.7
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
37.8 18.0 -34.4 36.4 29.6
37.8 18.0 -34.4 36.4 29.6
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
6.3 3.0 -5.5 3.1 3.7
6.3 3.0 -5.5 3.1 3.7
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010 Investment Banking Investment Banking
Financial Market Transactions
Providing services to corporate cus- In 2010, Gazprombank main- issuing insurance company bonds and tomers in financial markets remains one tained its leading positions among the infrastructural bonds for road construc- of Gazprombank›s top-priority business Top-3 arrangers of customer loans in the tion projects under concession agree- areas. In 2010, the Bank continued to debt market by ensuring the placement ments; a technique was worked through develop its customer-oriented business of 24 issues of bonds at MICEX with a to- for offering corporate bonds via quota- model offering its customers the widest tal face value exceeding RUR 200 billion; tion lists “A1” and “B” and issuing a place- possible range of services. Gazprombank completed a number ment report without requiring the is- Throughout the year, the Bank ex- of benchmark transactions including: suer’s approval and registration with the ecuted about 300 long-term framework ●● RUR 50 billion offering of 30-year Federal Financial Market Service. agreements with its customers for fi- bonds (issued by Federal Grid Com- During the reporting year, Gazprom- nancial market transactions, including pany of United Energy System); bank significantly increased the volume
260 agreements associated with plac- ●● large-scale market offering of 7-year of its own fixed income security transac- ing temporary surplus money as de- bonds with fixed coupon (issued by tions. The Bank Treasury’s trade portfolio of posits to minimum-balance settlement RUSNANO); debt securities was created primarily with accounts. ●● large-scale market offering of 2-tier investments in short-term and mid-term During the year, the Bank actively bonds (bonds issued by MTS); assets characterized by high-level credit participated in tenders designed to al- ●● IPO of foreign government 2-year quality. Starting in the second half of 2010, locate temporary surplus funds for gov- bonds at MICEX (8.7% bonds is- the volumes of equity and debt securi- ernment-owned corporations and com- sued by the Republic of Belarus ties transactions performed in the REPO panies included in the register of natural government for a total amount of market noticeable increased. Completed monopolies, including State Atomic En- RUR 7 billion); transactions enabled the investment of ergy Corporation ROSATOM, RUSNANO, ●● IPO of Ruble-denominated 5-year temporary surplus funds and regulation of GC Olympstroy, GCK Housing and Pub- corporate Eurobonds in international imbalances in depository accounts occur- lic Utilities Reformation Support Fund, markets (7.785% bonds issued by ring during day-to-day operations. In par- Russian Railways, OJSC Russian Venture JSC RusHydro for a total amount of ticular, due to the introduction of a new Company and others. RUR 20 billion). This transaction was banking product, i.e. floating rate repos During the reporting year, the mar- recognized as the best bond offering with interim interest payments, the Bank ket risk hedging business was devel- of 2010 on Central and Eastern Euro- had a significant liquidity reserve. oped for corporate customers using de- pean markets by EMEA Finance. In 2010, Gazprombank raised financ- rivative financial instruments associated In 2010, the Bank developed (and ing in Russian and international public with FX markets, both interest rates and registered with the Federal Financial debt capital markets for a total amount of commodity prices. Markets Service) documentation for USD 1.9 billion and RUR 10 billion.
34 GAZPROMBANK GROUP. annual report 2010
After a break due to the international for a total amount of USD 900 million 3-year bonds in the Russian market for financial crisis, Gazprombank successful- for 3 years at an interest rate equal to a total amount of RUR 10 billion. ly placed an issue of 6.25% Eurobonds in LIBOR + 2.5% p.a. This loan became During the year, the Bank punctually international financial markets for a total the largest syndicated loan raised by redeemed three issues of Eurobonds: amount of USD 1 billion maturing in De- Gazprombank in the international fi- a RUR 10 billion issue of Ruble-denom- cember 2014. nancial market. inated Eurobonds, a USD 700 million is- In September 2010, the Bank raised In December 2010, the Bank placed sue of USD-denominated floating rate a syndicated loan from an associa- a debut issue of 7.75% BO-1 series ex- Eurobonds, and a CHF 500 million issue tion of 12 major international banks change-traded Ruble-denominated of CHF-denominated Eurobonds.
Project and Structured Finance
Gazprombank holds one of the lead- EximBank (China) with ECA coverage CHP for OJSC Schekinoazot. The Bank, ing positions in the Russian project and (SINOSURE) (“Transaction of the Year with the involvement of JSC Gazprom- structured finance market. 2010” according to Trade Finance bank Leasing, paid for drilling equipment Magazine); supplied to ERIELL GROUP on a project
●● a project to construct a gas process- finance basis. In 2010, ERIELL GROUP in- The Bank›s loan portfolio ing plant at the Prirazlomnoye field creased its volume of Russian equipment for project and initiated by CJSC Ob’ GasProcessing purchases by entering into a supplies structured financing (Roza Mira Group) for a total amount contract providing for the delivery of ten exceeded RUR 250 billion of USD 48.2 million with funds raised drilling units manufactured by JSC Ural- at year-end 2010. from Export Canada; mash Plant in 2010-2012.
●● construction of the DSP-120 metal- The amount of long-term loan re- lurgic complex as part of the efforts sources extended by the Bank to its In 2010, the diversification of the to upgrade the metallurgic facilities agro-industrial customers totaled Bank’s customer base across different in- of OMZ-Special Steels, which in- RUR 16 billion as of year-end. In addition dustries and portfolio of financed projects ter alia involved raising funds from to new projects, the Bank continued to increased its share of agricultural projects Landesbank Berlin. finance current projects, providing loans (+5%), transportation (+2%) and com- The Bank started to finance a pro- to such major companies as Znamen- munications (+0.4%). At the same time, ject to develop the Yuzhno-Mechetkin- sky GSC, Agro-industrial holding EXIMA, the share of projects related to machine- skoye oil and gas field in the Saratov Svinokompleks Uralsky (JSC Siberian building and metallurgy was reduced region (ZAO Geotex). Within the efforts Agrarian Group) and OJSC Lipetskmya- while the oil sector increased to 28%. to finance leasing projects initiated by soprom (Cherkizovo Group). In partnership with foreign banks JSC Gazprombank Leasing, projects were As part of implementing the statutory and export credit agencies, the Bank im- implemented to purchase railway cars for measures initiated to support the Russian plemented transactions to finance: JSCo. Novotrans-Holding and tank con- Federation financial system and to raise
●● OAO Chelyabinsk Metallurgic Plant tainers for TANK YARD Group, as well as subordinated loans from VEB, the Bank con- (Mechel Group) for a total amount equipment and specialized machinery for tinued to finance the top-priority sectors of of USD 219.4 with funds raised from a project to upgrade the Pervomayskaya economy, in particular, machine-building,
35 Investment Banking Project and Structured Finance
aero-space, residential construction, metal- strategic project , the Shtokman field de- ●● Construction of a mini-thermal lurgical, transportation and leasing com- velopment, and various projects connected power plant for internal use by panies (related to domestic machinery with constructing underground gas stor- ZAO Shtark, a member of PJSC Om- purchases) and expanded the volume of age in Europe (Gazprom Export). skshina, SIBUR’s tyre-manufacturing finance provided to agricultural projects. In connection with a project initi- division;
In 2010, the Bank continued to ated by LLC SIBUR-Portenergo, the Bank ●● Construction of a toll road finance current projects such as signed a mandate and provided finan- SHALI (М-7) — BAVLI (М-5) to develop OOO Serebriansky Cement Plant, cial advisory services related to the con- a new route of the Kazan-Orenburg OMZ Special Steels, CJSC DZGI (construc- struction of a Liquefied Hydrocarbon federal motor road in the Republic of tion of a gas concrete plant), OJSC Karase- Gases (LHCG) transshipment facility in Tatarstan; jeozersk-2 (construction of a cottage vil- Ust-Luga sea merchant port in the Kingi- The Bank also executed partnership lage in Yekaterinburg) and continued to sepp municipal district. agreements with: implement real estate projects in partner- The Bank, jointly with Deutsche ●● state company Russian Highways — ship with the GPBI group of companies. Bank AG, successfully provided advisory to provide financial advisory services In the field of structured financing, services to OAO Glavnaya Doroga for for projects designed to develop in 2010, the Bank significantly expanded their project New Access to the Moscow road infrastructure in Russia; its products line including lending col- Ring Road from Motor Road М1 “Belarus” ●● PPP Center of Vnesheconombank — lateralized by shares, financing corporate Moscow-Minsk. for joint participation in infrastruc- acquisitions and transactions in financial Mandates were signed to provide fi- ture projects implemented on a PPP derivatives and financing of projects de- nancing advisory services for the follow- basis. signed to create new facilities. ing projects: During 2010, Gazprombank par-
During 2010, as part of its strategic part- ●● Development of the Omsk Central ticipated in industry seminars and nership with Gazprom Group, the Bank act- Airport area and construction of the conferences and provided informa- ed as a financial adviser for the Sakhalin-2 Omsk-Feodorvka airport; tional support to the meetings of
Most Significant Projects 2010
Project Description Bank's Role Total Amount in the Project of Financing Eriell Holding Financing the purchase of drilling and auxiliary equipment in order to execute drilling contracts in the Russian Federation, Libya, and the Republics of Kazakhstan and Turkmenistan. Arranger, lender USD 415 million Chelyabinsk Financing the construction of a 1.1 million Co-arranger, Metallurgical Plant ton rail and structural steel mill lender USD 219.4 million JSC Uralmash Plant Financing an investment program for upgrading production facilities Arranger, lender RUR 5.9 billion OAO Gazprom Financing a project to create and launch Space Systems the space complex Yamal-401 Arranger, lender RUR 4.6 billion Svinokompleks Kalinovsky Financing of a project to construct pig (Miratorg Group) farms in the Belgorod region Arranger, lender RUR 3.9 billion JSCo. Novotrans-Holding Financing the construction of railway-car repair facilities in Irkutsk and Prokopievsk and financing the purchase of railway cars by providing funds to OAO Gazprombank Leasing Arranger, lender RUR 3.2 billion
36 GAZPROMBANK GROUP. annual report 2010
Intergovernmental Committees such as of advisory, methodological and practi- ●● implement infrastructure projects the Intergovernmental Commission for cal assistance for matters related to ar- (including PPP based) to leverage Economic, Industrial and Scientific-Tech- ranging, structuring and financing in- the Bank’s strong position in that nical Cooperation between Russia and vestment projects. segment;
Czech Republic. The main objectives for develop- ●● strengthen the leading position of The Bank’s specialists participate in ing project and structured financing in the Bank in developing mid-size the development and expert examina- 2011-2012 are: and major enterprises in the Russian tion of draft laws on project and struc- ●● expand partnerships with custom- Federation; tured finance and PPPs, and provide ers, including Gazprom Group, par- ●● develop and introduce new struc- support as representatives of agent ticularly in financial advisory services tured banking products, and expand banks to government contracts. The provided for arranging large-scale the Bank’s investment product lines Bank’s customers are offered a full range project financing; in project and structured financing.
Mergers and Acquisition Advisory Service
Gazprombank is one of leaders in a RUR 7.5 billion shareholder loan Gazprombank also provided services to the M&A market in Russia. According agreement. Gazprom Group in connection with the to ThomsonReuters, in 2010, Gazprom- ●● Sale of a controlling stake in Beleg- sale of the Group’s service companies as bank was among the leaders in provid- gingsmaatschappij Lemore BV, one well as investment advisory services to ing M&A advisory services in terms of of the largest distributors of medi- Gazprombank’s customers for projects completed transactions for two straight cal items in Russia and CIS-countries related to the export logistics of oil and years, which demonstrates the consist- with USD 366.7 million in total pay- oil products. ency of results. outs from 2008 to 2010. OAO NOVATEK contracted the The following are the most sig- Traditionally, one of Gazprom- Bank’s specialists to receive advice on nificant transactions completed by bank’s most important business areas is the selection of international partners Gazprombank in 2010: investment banking services for oil and for a project to create a LNG (liquefied
●● Acquisition by OOO Yamal Razvitiye gas companies, including advising on natural gas) production center on the (joint project with OAO NOVATEK M&A matters and asset management as Yamal peninsula to process gas reserves and JSC Gazprom Neft) of a control- well as a company’s own investments in from the Yuzhno-Tambeyskoye field. ling stake in LLC SeverEnergia, con- the sector. At the same time, Gazprombank trolling the development of an oil & During 2010, Gazprombank continued to successfully offer its gas condensate field in the Yamalo- continued to actively partner with M&A advisory services to clients in Nenets Autonomous District of the OAO Gazprom and its subsidiaries, pro- other industries and the services sector, Russian Federation with total hydro- viding investment and financial advi- being the exclusive advisor for custom- carbon reserves exceeding 1.5 bil- sory services for international transac- ers in the power system, coal-mining, lion TOE. The price of the transaction tions which, among others, included agriculture, retail and wholesale trade, was RUR 48.7 billion. Furthermore, the acquisition by Gazprom Germany hi-tech, telecommunications, insur- 51% of receivables payable by LLC of a 5.26% stake in VNG, a German gas- ance and banking industries. Custom- SeverEnergia were purchased under distributing company from GdF Suez. ers are advised on attracting investors,
37 Investment Banking
acquiring and selling businesses, merg- expectations for a good level of growth the absence of a significant number ing companies, creating JVs and ex- in the advisory business in 2011-2012. of major foreign players in the area, changing blocks of shares. In early 2011, Gazprombank considers this business Gazprombank plans to take up key po- the Bank served as an adviser to ap- segment to be one of the most impor- sitions in that promising market. The proximately 20 planned M&A transac- tant business lines in the coming years. Bank’s unique position in the Russian tion, a number of which are expected In 2010, the Bank began to actively market and its comprehensive range to close as early as this year. develop its merchant banking (invest- of financial products and services will The recovery of investor activ- ment of its own capital in minority in- make it an attractive partner for many ity in the M&A market in 2010 raises terests of non-public companies) In successful companies.
Structured and Syndicated Finance
In 2010, Gazprombank implemented acquisition of over 258.5 million (9.4%) Shyam Teleservices Limited, an Indian a number of projects to finance acquisi- ordinary shares in OAO NOVATEK. The subsidiary of JSFC Sistema. Accord- tions and provide financing against a loan portion of the transaction was ingly, a mandate letter was signed pledge of blocks of shares in strategic RUR 55 billion. between Gazprombank and Sistema companies. An outstanding feature of In the syndicated loan market in Shyam Teleservices Limited during the the projects was the innovation in the 2010, the Bank acted as an arranger events surrounding the opening of transactional structures developed by and participated in the syndication of Gazprombank’s Representative Office the Bank that allowed proposed business four loans for companies from Russia in New Delhi in the presence of the ideas to be implemented in the shortest and other CIS countries. The syndicat- Vice Premier of the Russian Federation, possible time and in line with applicable ed loans totaled RUR 5.2 billion which Mr. Sergey B. Ivanov. laws and regulatory limitations. earned RUR 74.1 million in fees. One A number of projects implemented An example of such work was of the largest transactions involved during 2010 laid a good foundation for the completed transaction for a cus- a financing in Indian rupees (equiva- increasing business volumes in 2011 and tomer in which the Bank financed the lent to USD 200 million) for Sistema in the years to come.
38 GAZPROMBANK GROUP. annual report 2010
Trust Management
Gazprombank is one of leaders in management company subsidiary, GPB industries by participating in and win- the Russian trust management busi- Asset Management, in Luxemburg. Cur- ning tenders held to select trust man- ness. Today, based on data from Expert rently, our clients are offered a range of agers for endowment funds or target RA, Gazprombank’s asset management 26 funds featuring an optimal combina- capital funds. The funds of Skolkovo business ranked No.2 in 2010, with more tion of risk exposure and profitability. and Tomsk Polytechnic University have than RUR 150 billion under manage- Competitive returns were achieved joined major Russian funds such as De- ment. In 2010, thanks to professional for investment products in each catego- velopment Funds of MGIMO, Saint Pe- management skills, market growth ry of risk exposure during the year. Thus, tersburg State University and Tyumen and an increasing customer base, the the Gazprombank-Shares, Gazprom- State University which have entrusted amount of assets under management bank-Elektroenergetika and Gazprom- their funds to Gazprombank. increased by RUR 50 billion. bank-MICEX Index mutual funds were In 2010, MC Gazprombank-Asset The unique combination of the among the best 25% of funds in Russia Management became a private inves- Bank’s capabilities with those of manage- in terms of profitability. tor favorite among major management ment companies in Russia and Luxem- The Bank’s corporate segment also companies. Thus, Gazprombank-Fund of burg enables the creation of the widest achieved significant results: Gazprom- Developing Sectors and Gazprombank- possible range of investment products bank-Telecommunications, a closed-end Elektroenergetika were among the top- meeting the investment management investment fund, was created for the 20 funds in terms of the amount of funds requirements for various types of Russian subsidiaries of Sviazinvest to become drawn to openend investment funds. and foreign customers. Such services in- the first in Russia to implement an op- Their customer base has also grown: the clude mutual funds, bank-managed mu- tion program for top managers. number of registered personal accounts tual funds, international investment prod- Following current market trends, has reached 9,500, which is 90% higher ucts, and services of the wholly-owned Gazprombank interacts with new than in 2009.
39 Investment Banking
Management of Non-Financial Assets
Oil and Gas Sector a functioning 350,000 t.p.a. gold extrac- Petrochemistry In November 2010, Gazprombank tion plant, more than 80 units of pro- On December 23, 2010, Gazprom- completed a transaction to sell its 51% duction machinery, power-generation bank Group entered into a share sale shareholding in OAO Sibneftegaz en- capacity and necessary related infra- agreement to sell 25% of its shares in gaged in the production of gas in the structure. Its gold output was 1,082 kg CJSC SIBUR Holding. The approval of Yamalo-Nenets Autonomous District to in 2010. antitrust bodies for the purchase of the a third party. As part of its strategy aimed at de- block of shares in CJSC SIBUR Holding by The 51% stake in OAO Sibneft- veloping the gold ore business area, the buyer was obtained in March 2011. egaz was purchased by Gazprombank Gazprombank Group is actively partici- The sale of the above mentioned block Group in 2006. While holding the pating in the management and devel- of shares in CJSC SIBUR Holding has re- stake, the Group financed OAO Sibneft- opment of ZAO Vasilievsky Rudnik. Cur- sulted in Gazprombank Group having egaz’s investment programs aimed at rently, a project is being implemented lost control over CJSC SIBUR Holding. In developing the following four fields: to construct a heap leaching string for this connection, the financial indicators Beregovoye, Puireynoye, Khaduirkhin- processing ore from the Arkhangelsk SIBUR Holding group are no longer con- skoye and Zapadno-Zapoliarnoye. Two field. Efforts are underway to protect the solidated in Gazprombank Group’s finan- fields, Beregovoye (in 2007) and Puirey- reserves of the promising Gerfed field. cial statements. Furthermore, in Decem- noye (in 2009), were put into industrial Concurrently, steps are being taken to ber 2010, Gazprombank Group agreed operation with their aggregate yearly enhance the company’s efficiency by on conditions of the future sale of the production output totaling about improving its personnel list, introduc- remaining share in CJSC SIBUR Holding. 11 billion cubic metres of gas. Geologi- ing incentive programs for key manage- Such transaction will also require an the cal exploration work is underway at the ment personnel, introducing automa- approval of antitrust bodies as well as two other fields. tion systems, engaging contractors for a consent of the Government Commit- The price of the transaction designed mining work and improving the quality tee for Monitoring Foreign Investments to sell the 51% stake in OAO Sibneftegaz of production, managerial and financial into Strategic Sectors. In this connection, was RUR 25.6 billion and revenues from reports. the Group has classified its remaining the transaction totaled RUR 23.9 bil- As part of developing its mineral 45% nominal share in SIBUR Holding lion. OAO Sibneftegaz has also repaid all and raw material base, in early 2011, group actually owned as of January 01, loans made available to it earlier. ZAO Vasilievsky Rudnik was announced 2011 as an investment into an associ- the winner of a tender held to select the ated company held for sale. Gold-mining Industry licensee for such promising areas as Za- As a result of restructuring part of padnaya, Mitrofanovskaya and Ilyinsko- Machine-Building Gazprombank’s loan and redeeming the Talovskay, and won an auction held to Being an active participant in govern- bonds issued by Angara Mining Plc. in license the Sergeyevsky plot. These ar- ment initiatives to develop the national September 2010, Gazprombank Group eas are in close proximity to the produc- economy, and relying on real experi- acquired a 62.5% share of the authorized tion facilities of ZAO Vasilievsky Rudnik, ence in managing large-scale indus- capital of ZAO Vasilievsky Rudnik. which will ensure quick access to begin trial assets, Gazprombank ensured the ZAO Vasilievsky Rudnik deals with their development. overall development of Gazprombank the exploration and production of gold Gazprombank is actively financing Group’s machine-building enterprises in ore within the Partizansky Ore Cluster of the development of ZAO Vasilievsky 2010, being of strategic importance for the Motiginsky region in the Krasnoyarsk Rudnik with total opened credit facilities the Russian economy in addition to per- Territory. Its production facilities include exceeding USD 25 million. forming main tasks in the financial area.
40 GAZPROMBANK GROUP. annual report 2010
Thanks to the mobilization of its own investment programs aimed at devel- areas. Favorable market conditions and financial and managerial resources, sup- oping the production and process ca- long-term growth prospects in the key port from its leading shareholders and pabilities in line with the requirements sectors demanding construction and customers as well as the proper coordi- of the market and government target engineering services associated, among nation with federal executive authorities, programs. other things, with the implementation Gazprombank has succeeded in achiev- A significant increase in production of large-scale projects to upgrade the ing certain positive results in the area of output and sales has been achieved national infrastructure make this sector recovery and development of machine- due to a return to traditional sales mar- especially attractive. building enterprises. kets, the introduction of new products An important investment for With the assistance of Gazprombank, types in the markets, and inclusion of Gazprombank Group in this area is the Group’s machine-building enter- Gazprombank’s customers in the list of JSC South center of power engineer- prises have successfully mastered new clients. ing (JSC SCPE), a multi-field engineering product manufacturing which is strate- Another top-priority business area for company offering packaged services gically important for both business de- Gazprombank per its approved develop- in connection with the construction of velopment and the petrochemical sec- ment strategy is investment activity. In power assets. In 2010, the Bank approved tor of the Russian Federation in general. 2010, with the assistance of Gazprom- the “Long-Term SCPE Development Plan In particular, during the course of 2010, bank, a share in ZAO REP Holding, one through 2015” which contemplates the the Ural Industrial Site resumed pro- of the leading national producers of in- transformation of the company’s busi- duction of complete drilling units and dustrial gas turbines and gas compres- ness model into an EPC-contractor fo- successfully delivered the first samples sor units, was purchased. This will further cusing on the implementation of large- of its equipment to OJSC Oil Company diversify the markets in which Gazprom- scale turn-key projects. Rosneft and OJSC Gazprom Neft. As a re- bank is present and significantly expand In 2010, the company continued to sult, the amount of contracts executed the range of products offered by energy- show stable growth by contracting with in that area has increased by more than related machine-building enterprises. the facilities of the Kalinin NPP (its largest 20 times over the previous year. It is In 2010, Gazprombank Group also scope of work to date). Furthermore, the the first time in the history of the Rus- completed the sale of its minority in- SCPE became a member of a consortium sian machine-building industry that the terest in Machine-Building Factory of with OJSC Stroytransgaz and JSC Federal Izhora Industrial Site has manufactured Podolsk, its 100% share in the Czech Grid Company of Unified Enetgy System and supplied two unique supersized machine-building company Pilsen Steel to take part in a large-scale construction hydrocracker units weighing more than s.r.o. (member of OMZ Group) and the program relating to the network facilities 1,200 tons each. Also, it is the first time 100% share in OAO ORMETO-YUMZ held of JSC FGC UES. in the history of the national industry by ZAO MK Uralmash, a joint-venture that OAO Uralkhimmash has mastered company between Gazprombank Group Power Sector the manufacturing of tank containers and Metalloinvest Holding. As a re- In accordance with its approved designed for transporting liquefied gas sult of the last transaction mentioned, strategy for electric power assets and kept at up to minus 50°С. ORMETO-YUMZ has ceased to exist and given the total recovery of equity mar- The engineering and structural po- Gazprombank Group has become the kets during 2010, Gazprombank has sold tential of companies has been strength- holder of the 100% share in ZAO MK its minority interests in JSC OGK-1 and ened. The manufacturing of unique Uralmash. JSC OGK-6. The proceeds from these products to replace imported ones (e.g. sales totaled about RUR 1.2 billion. sliding shutters for trunk pipelines) has Construction and Engineering In 2010, Gazprombank acquired been mastered based on domestic engi- One of the top-priority investment a 100% share in Centrex Europe Energy neering capacities. areas for Gazprombank Group is the & Gas AG (Centrex). The companies be- The Bank has ensured the imple- construction and engineering segment longing to Centrex group supply and mentation of large-scale innovative in oil & gas, energy and infrastructural store gas in underground storage in
41 Investment Banking Management of Non-Financial Assets
European countries and produce gas to arrange financing for projects in of Gazprom-Media Holding owned by in Middle Asia. Centrex’s development the EE area. Moreover, Gazprombank Gazprombank Group) succeeded in strategy aims at strengthening partner- has acquired 30% of the authorized strengthening their leading positions ships with key gas consumers and sup- capital of RUDEA. in the Russian television market. The pliers, and at purposefully developing its To date, most EE projects by NTV channel is steadily among the top retail gas business in European countries. Gazprombank and RUDEA are being three Russian TV channels in terms of implemented in the Ural Federal district audience and regularly outperforms its Infrastructure and are actively supported by the admin- main competitors by ratings covering During the year under review, the istrations of the corresponding districts both Moscow and the whole territory of Bank continued to implement its invest- and regions. In particular, Gazprombank, Russia. The TNT channel holds a leading ment initiatives in Russia’s infrastructural is jointly financing a project with the position among the country’s economi- sector. One of the major projects in which German Energy Agency DENA to de- cally active population and is among the the Bank continues to structure its partici- velop a model for upgrading the street channels that are most highly rated by pation as lender and investor, is the con- lighting system of Yekaterinburg, and its advertisers. struction of an oil product transshipment results will be used to implement similar Net By Net, a high-speed Internet terminal in the North-Western region of projects in the future. service provider (which Gazprombank the Russian Federation. It is expected that Projects have been started at holds a share in) continues to increase the final documents for this transaction OJSC Uralmash, JSC Uralmash Plant and its share in the Moscow and Moscow will be signed in the first half of 2011. OJSC Izhora plants as part of the pro- regional markets. In 2010, it success- The continued development and gram to improve the energy efficiency fully expanded its network in the Cen- increase of investments in Russia’s infra- of Gazprombank Group’s industrial en- tral Federal District of the Russian Fed- structure sector is one of the most im- terprises. To implement these projects, eration. The company’s subscriber base portant areas of Gazprombank’s invest- Gazprombank is actively contracting has reached 400,000 subscribers which ment business development strategy. In with both Russian and foreign technical makes it one of the largest national 2011, Gazprombank will continue to ac- experts. operators. tively search for attractive infrastructure The creation of an internal energy ser- NATIONAL TELECOMMUNICATIONS projects which can leverage other assets vice company in 2010 was a key step in (OAO NTK — which Gazprombank holds owned by the Bank. developing Gazprombank’s EE business. a share in) has strengthen its leading The company is Gazprombank’s main position in the social and paid TV mar- Energy Efficiency tool for implementing EE projects under ket and the high-speed internet service In supporting initiatives to improve energy service contracts in accordance market covering Moscow and Saint- the energy efficiency (EE) of the Russian with Federal Law No.261-FZ “On Energy Petersburg by increasing its subscriber economy, Gazprombank actively works Conservation and Energy Efficiency Im- base to 4.8 million people and recording across a wide range of areas and con- provement and Amendment of Individ- record high profits. tinues to actively develop its business in ual Legislative Instruments of the Rus- Morion, a member of Gazprombank this field. sian Federation”. Group and the world’s leader in manu- In 2010, Gazprombank and the facturing high precision frequency selec- Russian and German Energy Agency Media, Telecom, tion and stabilization devices, reached (RUDEA) executed a partnership agree- Internet and Hi-Tech its highest level of sales ever, and its in- ment contemplating the development In 2010, the television broadcast- come statement show that operations and implementation of mechanisms ers NTV and TNT (which are members were absolutely profitable in 2010.
42 GAZPROMBANK GROUP. annual report 2010 Risk Management
Risk Management Framework
The Bank manages its risks centrally along with high-level coordination by transactions, instruments and coun- to ensure uniform risk assessment and the Risk Management Block. terparties are considered by the Bank control principles for GPB Group in gen- The assessment and analysis func- within established procedures (includ- eral, and facilitates the improvement of tions for economic and operational ing preliminary and follow up analysis, software and technology used. risks are held by the Risk Manage- assessment, monitoring, etc.). ment Block managed by a responsible Credit risk is managed in accord- member of the Management Board ance with the regulations by the Bank The Bank divides (Chief Risk Officer). Economic and op- of Russia, principles and guidelines its main risks from erational risks are managed by special developed by the Basel Committee on company activities management bodies (committees) Banking Supervision, and the Bank’s in- into three categories: which have individual decision-mak- ternal policies which take into account business, economic ing authority. these principles. The Credit Policy and and Operational risks. Risk appetite is measured using a sys- Risk Management Policy are the main tem of indicators limiting the total risk documents determining the principles, level and structure of accepted risks mechanisms and processes for manag- Business risks are associated with the with respect to individual transactions ing credit risk. making of strategic decisions concern- and portfolios. The actual levels of risk ing business development. Business are monitored on a quarterly basis and risks (including assessment, analysis and reviewed by the Management Board in The uniformity of risk mitigation-related matters) are managed accordance with its meeting plan. assessment results when during the development of business Risk factors that affect the Bank are making credit decisions, strategies and their management is re- classified as systemic and individual governinig and monitoring served to the Bank’s Management Board factors. risk, and making provisions, and Board of Directors. Systemic factors that give rise to a set is a fundamental principle Economic risks are assumed by the of risks and are able to exert a significant for managing credit risk. Bank in the ordinary course of business influence on the Bank are taken into ac- purposefully for generating relevant in- count during strategic planning and in come and are subdivided into credit, crisis management procedures (stress- The credit risk management system market and liquidity risks. testing, emergency planning, continuity comprises measurement of credit risk on Operational risks arise as an inevitable of operations). a case-by-case (expert review of individ- component of business and are mitigat- Individual factors and risks relating ual transactions) and portfolio (assess- ed directly by subdivisions owning them to them are connected with certain ment of risk concentration) approaches.
43 Risk Management Risk Management Framework
GPB Group’s Risk Management Framework
Board of Directors of GPB (OJSC)
Management Board of GPB (OJSC)
Committees
Risk Management Block of GPB Group
Risk Management of GPB Group Risk Management of GPB (OJSC)
GPB (OJSC) logically coordinates and monitors risk exposures of its subsidiary banks
Risk management units of subsidiary banks
Risks of industrial companies Risks of GPB (OJSC) of GPB Group Each subsidiary bank has a unit performing risk management functions
Risks of subsidiary banks • business risks Risk exposures of industrial companies are managed on an aggregated level • economic risks through the integrated assessment of • operational risks • business risks investment depreciation risks • economic risks • operational risks
Credit risk is measured using qualitative for individual groups of transactions. The setting minimum requirements for (expert) and quantitative (statistical) results of qualitative measurements of a particular transaction. measurements. credit risk are used by the Bank’s com- The quantitative measurement of Qualitative measurement of credit risk mittees when deciding whether or not credit risk is developed taking into ac- is the main tool for measuring credit risk to accept credit risk, assessing the con- count the recommendations issued and is made in terms of and is performed centration of major credit risks and by the Basel Committee on Banking
44 GAZPROMBANK GROUP. annual report 2010
Supervision and best international bank- liquidity risks) is based on the qualitative to different liquidity tiers and a scenario ing practice. and quantitative market risk assessment analysis. All tiers determine periods dur- The Bank is one of the participants involving VaR methodology, stress-test- ing which the growth of liquidity risk is in a project being implemented by the ing, scenario analysis and sensitivity anal- expected and the available measures Bank of Russia to realize the principles ysis. For calculating VaR estimates, the adequate to eliminate it. contemplated by the Basel Agreement delta normal/historical method is used within the Russian banking practice. with a 98.8% confidence probability cor- For this purpose, the Bank is currently responding to the Bank’s target credit The system of indicators independently creating a methodologi- rating (without taking government and and ratios developed cal and technological framework to en- shareholder support into account). by the Bank facilitates able a staged transition to the Basel II The qualitative measures of mar- assessment of changes methodology. ket risks are supported by the results of occurring in external For the purposes of implementing a scenario analysis and (in case of inter- markets (Russian and the principles set by the Basel Com- est rate risk) with an analysis of sensitiv- international) and mittee on Banking Supervision, the ity of the Bank’s economic performance monitors the dynamics Bank in 2010 developed and began and net interest income to changes in and probability implementing a project to automate interest rates. of occurrence for crisis GPB’s integrated risk management sys- The market risk management events on a daily basis. tem for improving the quality of risk system was adjusted in 2009 and tolerance and capital requirements as- 2010 to function in a post-crisis econ- sessments, to introduce economically omy. A stress-testing procedure was A similar system based on intra-bank reasonable pricing models, and to use introduced within the business pro- indicators is employed to determine po- a proactive approach in managing cess for setting and revising limits. tential shock changes in the Bank’s port- credit risks based on a combination of The regulatory framework governing folio and mitigating measures to be used expert estimates, models, forecasts and the measurement and management to minimize then at preliminary stages. other methods. of all market risks was updated. The The Bank regularly assesses the ad- In 2010, the Bank developed and process of preparing regular manage- equacy of the models employed and, if introduced a system of indicative addi- rial reports for the Bank’s management necessary, revises parameters and meth- tions/discounts for the threshold inter- and collegial bodies in relation to all odological approaches for measuring li- est rates applicable to loans extended to types of financial risks was accelerated. quidity risk. In 2010, the Bank approved corporate borrowers, as well as a tech- A project was also launched to imple- the “Unified Approach to Forecasting nique for building conservative scenar- ment an integrated system for manag- GPB Cash Flows “ to update the main ios, given the crisis events occurring in ing market and liquidity risks with the principles and parameters used to meas- the concerned sectors. involvement of the world’s leaders in ure liquidity risk. The list and parameters for standard the development of IT risk manage- Operational risk is understood by retail lending programs were optimized ment systems. Assesment of models for the Bank as the risk of losses which given the existing economic conditions market risk measurement at the end of may be incurred due to inadequate and efficiency analysis. Score cards were 2010 proved models to be reliable. or erroneous processes, actions by developed for a number of retail lend- The liquidity risk management sys- the Bank’s personnel or its systems, ing areas (consumer and auto loans) tem enables aggregated qualitative and or external factors. In 2006, the based on SAS Credit Scoring for Banking quantitative measurement of liquidity Bank’s Management Board approved system. risk with respect to GPB Group’s transac- the Operational Risk Management GPB’s market risk management sys- tions in general. Policy ensuring a systemic approach to tem (relating to equity and debt securi- The approach employed by the Bank identifying, analyzing and measuring ties, currency, interest rate and market is based on allocating all transactions operational risks and losses that may
45 Risk Management Risk Management Framework
be incurred due to their occurrence information regarding operating losses. to analyze, measure and manage op- (risk events) as well as planning for the The results of quantitative measures for erational risks. The Bank is currently im- Bank’s operations during unforeseen operational risk are aggregated into the plementing an IT project designed to (force-majeure) circumstances. Bank’s single qualitative measure of all introduce SAS Oprisk Management, an The operational risks management types of risks. automated operational risk manage- system is being developed by the Bank To ensure feedback from the ment system. on a scheduled basis with consistent Bank’s management, an operational This project is expected to improve integration of system components, risk reporting system is in place. The the efficiency of subdivision perfor- from basic to complex ones. Since Bank’s risk management unit prepares mance due to the improvement of the beginning of 2007, the Bank has and submits a report on the Bank’s ma- operational risk management pro- been collecting information about op- jor operational risks to the Corporate cesses and providing the Bank with erational risk-related risk events within Governance and Remuneration Com- the necessary set of tools to bring the a single informational space, combin- mittee on a quarterly basis. After discus- Bank’s operational risk management ing the Bank’s head office and branch sions, the Corporate Governance and system in compliance with Basel II network. The unified approach to Remuneration Committee approves/en- requirements. identifying, measuring and monitoring dorses managerial decisions and meas- In term of the Bank’s risk manage- operational risks is based on the meth- ures designed to manage operational ment system, risk insurance is consid- odological base created in the Bank. To risks that are significant to the Bank’s op- ered one of the management methods implement its proactive approach to erations and, if necessary, prepares a list providing for the transfer of unfavorable managing operational risks, the Bank of additional measures and orders for financial consequences to a third party employs a system of key indicators of implementation. (insurer). operational risk (KRIs). The main provisions of this report are For purposes of managing credit The Bank’s main approach to opera- included in the Bank’s Report on Major risks, insurance coverage is provided in tional risk assessment today is qualita- Risks submitted to the Bank’s Manage- the following ways: tive measurement based on risk rat- ment Board on a quarterly basis. ●● the Bank executes insurance con- ing by a degree of significance. The Another strategic task for opera- tracts with respect to loss risks arising results of the qualitative measurement tional risk management is to improve from the failure of the Bank’s coun- of operational risk are used by the the Bank’s risk management culture terparties to fulfill or properly fulfill Bank’s committees, among other things, and general knowledge of operational their obligations. when empowering the Credit Commit- risk management procedures em- ●● the Bank’s counterparties execute in- tees of branches to independently as- ployed by the Bank and its subsidiar- surance contracts covering the items sume credit risks and setting personal ies. For purposes of improving general of property provided as a collateral, limits for the Bank’s officers. operational risk management culture, health and life of a borrower (guaran- At the same time, the Bank has also officers are regularly trained to im- tor) and liability for a failure to prop- developed (and fixed in its internal reg- prove their risk management skills both erly honor obligations to the Bank. ulations) methodologies for quantita- in an on-site mode and a generally In 2008, the Bank established a regu- tive measurement of operational risk as available remote mode. latory framework for risk insurance and required by Basel II. Since 2009, the Bank The concept of the operational risk documented the principles to comply has regularly conducted quantitative management system employed by the with when contracting insurance com- analyses of operational risk in accord- Bank presumes that the main func- panies to obtain insurance against the ance with the approved approaches; tions associated with the day-to-day above mentioned risks and eligibility the measurement results are expected management of operational risks must requirements to insurers, including the to be used for making managerial de- be charged directly to the Bank’s sub- requirement to comply with the provi- cisions following the accumulation divisions which require, correspond- sions of the Federal Law “On Protecting of an adequate amount of statistical ingly, comfortable and effective tools Competition”.
46 GAZPROMBANK GROUP. annual report 2010
For purposes of managing opera- as well as within the Bank’s current stra- Bank’s business and ensure capital ad- tional risks, Gazprombank enters into tegic planning. equacy in the event extremely unlikely the following insurance contracts The purpose of assessing risk-ad- events occur simultaneously (e.g. a de- each year: justed performance and business plan- fault by several major borrowers) and to
●● A packaged property insurance ning is to ensure an adequate income- consider the effects of the relevant eco- contract under the program “Bank- to-risk ratio. The achievement of such nomic cycle and model risks. ers Blanket Bond” (“BBB”) (with a re- a ratio allows the Bank to optimize per- In accordance with the approved sponsibility cap for 2010 and 2011 of formance with a guarantee of absolute risk appetite figures, the final value of USD 40 million) that includes: reliability subject to the prescribed capital requirement plus the buffer Classical BBB policy (insurance risk appetite. Necessary economic must not exceed the Bank’s actual of banks against crimes); capital is determined as the sufficient (available) capital. Electronic and Computer Crime; amount of the Bank’s own capital for The creation of a integrated group- Professional Indemnity. covering unexpected losses and fulfill- wide risk management system for
●● Insurance contract covering the ing the Bank’s unsubordinated obliga- Gazprombank Group is one of the top- Bank’s risks as those of an issuer of tions during 1 year with a probability priority objectives in coordinating risk credit cards. corresponding to its own target credit management processes.
●● Insurance contract covering the rating (without taking into account Bank’s ATMs. any uplifts on its ratings related to To reduce the level of credit risks potential support from government The transition of arising from the execution of insurance or shareholders). The target reliabil- the Group’s banks to contracts in unstable conditions, the ity level, inclusive of government and group risk management Bank is permanently monitoring the fi- shareholder support, depends on the standards covering risks nancial stability of insurance companies Bank’s credit rating and is set at 99.7 % of the Group’s financial to ensure an optimal ratio of insurers’ (98.8% without taking the support into organizations was own capital to their obligations assumed account accordingly). completed in 2010, and has under insurance contracts covering the The models employed to measure allowed improvements in Bank’s risks. risks for purposes of calculating capital the qualitative level of Risk aggregation and economic requirement are based on provisions measuring and monitoring capital assessment techniques have of the Basel Agreement “International economic risks and been regularly employed since 2010. Convergence of Capital Measure- enhanced control over ment and Capital Standards: New Ap- the management of risks proaches”, known as Basel II, and pro- in GPB Group’s financial Gazprombank evaluates posals included in the package known organizations. and allocates its economic as Basel III given the specificity of the capital between business Bank’s business. Capital requirements areas and assesses its risk- are calculated using credit risk, curren- The regulatory and methodological adjusted performance. cy risk, equity and debt securities risk, base underlying the Group’s risk man- operational risk and interest rate risk. agement system is comprises the high- Risk exposure and capital require- level documents approved by the Board Risk-adjusted performance is as- ments are measured at the descending of Directors of the Bank in September sessed for the Bank in general, by busi- phase of economic cycle. Nevertheless, 2009 (GPB Group’s Risk Management ness area and for individual portfolios. the Bank creates an additional capital Policy and Procedure for Arranging a Risk Such assessments are made for actually “buffer” equal to 25% of the capital re- Management System in GPB Group’s Fi- opened positions, the level of their ex- quirement. The purpose of the buff- nancial Organizations) and methodolog- posure to risk and performance results er is to ensure the continuity of the ical internal bank documents approved
47 Risk Management
in December 2009 by the Bank’s Man- by the Group’s bank organizations to exposed, has been introduced. A task agement Board. Gazprombank’s Management Board. has been set requiring the develop- In the current phase of creat- For purposes of implementing a proac- ment of a risk management function ing an integrated risk management tive risk management approach, an on- in the Group’s banks and improving its system for the Group, regular risk re- line day-to-day monitoring of key risks, level of integration with corporate gov- ports are prepared and submitted to which the banks of the Group are ernance processes.
Internal Control System
In accordance with the generally The Bank’s management bodies are The ICS performs its monitoring accepted international practice, the responsible for creating an adequate cor- functions by inspecting and verify- Bank is implementing an integrated porate culture by emphasizing and dem- ing the activities of all subdivisions approach to coordinating internal con- onstrating to employees the importance (branches) of the Bank and the per- trol procedures. The internal control of internal controls at all levels. formance of its individual officers for procedures encompass all manage- Compliance with the principles of compliance with the requirements ment levels of the Bank, and all types corporate and business ethics is one of the applicable Russian Federation of its business as well as its branches of the main areas for improving the laws, regulations and professional and units. Bank’s internal control system. standards, internal business regula- Gazprombank Group’s internal policy The Audit Committee under the tions and determining its policies and documents establish Principles and uni- Bank’s Board of Directors functions in job descriptions. form standards for arranging the Internal the Bank. The Audit Committee’s pow- Reports on the results of the ICS’s in- Control System. ers include assessing the Bank’s internal spections containing information about control procedures and preparing sug- defects and deficiencies as well as rec- The culture of gestions on how to improve them. Any ommendations on how to remedy them internal control matters referred to the Bank’s Board of and improve control procedures are fur- is a fundamental Directors for examination which relate to nished to the corresponding heads of component of the such areas, are subject to prior examina- the Bank’s subdivisions (branches), the Bank’s internal control tion by the Committee. Chairman of the Management Board system, i.e. all moral An important role in ensuring the ef- and the Board of Directors. and ethic principles, fective functioning of the Bank’s internal The ICS interacts, within its pow- professional and control system is played by the Internal ers, with the Audit Committee of the corporate culture Control Service (ICS) that directly assists Bank’s Board of Directors, Revision Com- standards aimed at the Bank’s management bodies in en- missions and external auditors by pro- ensuring that employees suring the effective performance of the viding information about the internal at all levels are aware Bank. control system and main defects re- of the importance, The work of the Internal Control Ser- vealed during inspections. significance of and need vice is based on the principles of consist- The ICS participates in the work of for internal controls. ency, independence, impartiality and the Bank’s committees and has the right professional competence. of consultative vote.
48 GAZPROMBANK GROUP. annual report 2010
A package of measures designed to One of the ICS’s top-priority missions for controllers are being developed mitigate the Bank’s potential losses if is to create a risk-oriented internal con- pursuant to the ICS’s action plan. any risks occur has been developed and trol system contemplating the conduct The internal control system is is under implementation. An integral of audits with respect to the areas which monitored on an ongoing basis by the part of internal control processes is the most affect risk exposure, which im- Bank’s management bodies, the Inter- implementation of procedures which proves the efficiency of internal controls. nal Control Service, the independent guarantee a complete separation of auditor, and the heads and officers of business areas to avoid any heightened various departments, including those operational risks and conflicts of interest, The ICS’s top-priority tasks performing banking transactions and and, in general, to provide an adequate in 2011 and 2012 also trades, and those responsible for main- mechanism for approving transactions include improving the taining accounting statements and tax and ensure the safety of shareholder, in- monitoring efficiency reports. vestor, depositor and customer funds. of the internal The Bank has implemented proce- The Bank’s internal policy documents control system for dures for the regular complex assess- set out methods for handling any conflicts the Bank’s regional ment of its internal control system. of interest between the property and oth- network, arranging The units of the Bank’s head office and er interests of the Bank, and/or those of its effective cooperation branches take part in the annual as- officers and/or those of its customers and with the controllers of sessment procedures arranged by the counterparties, as well as methods for miti- branches, and monitoring Internal Control Service. gating any related negative consequences. transactions performed by The outcomes of an assessment of In the processes of managing infor- the Bank’s branches. the Bank’s internal control system are mation flows and ensuring informational regularly reviewed by the Corporate safety, internal controls are based on Governance and Remuneration Com- generally accepted control models em- Currently, controllers work in mittee and brought to the attention of ployed in the IT area. 27 branches of the Bank. Work plans the Bank’s Board of Directors.
49 Risk Management
Compliance Control in the Bank
The world’s banking practice pays measures to manage compliance risks. the employees of Gazprombank (Open more and more attention to the man- Proper methods must be developed Joint-stock Company) when perform- agement of compliance risks. Compli- for eliminating and mitigating their ing transactions in financial instruments”, ance is an integral part of the corporate negative consequences for the Bank, its pursuant to which the Compliance Con- culture in which the performance by shareholders and customers, taking the trol Department monitors transactions each officer of its office duties, includ- interests of all parties into account. Infor- executed by the Bank’s officers in their ing decision making at all levels, must mation about any compliance risks re- personal interests. be consistent with the requirements of vealed is brought to the attention of the Furthermore, in 2010 the Compliance laws, regulators, various standards, and Bank’s top executive responsible for co- Control Department was charged with internal policy documents and regula- ordinating compliance functions and to the task of monitoring the Bank’s com- tions of the company itself. the attention of the head of the impact- pliance with the requirements of Federal In accordance with international ed business units, and must be included Law No.224-FZ dated July 27, 2010, “On practice, GPB has created a Compliance in the annual performance report by the Prevention of the Illegal Use of Insid- Control Department, whose main func- the Compliance Control Department er Information and Market Manipulation tion is to monitor Bank officers’ compli- which is furnished to the Bank’s Board of and Amendment of Individual Legisla- ance with applicable rules, requirements Directors. tive Instruments of the Russian Federa- and banking standards, including pro- In 2010, for the purposes of prevent- tion”. In 2011, the Compliance Control fessional ethical standards, and compli- ing any misuse by the Bank’s officers Department will continue its efforts to ance risk management 1. of insider information and to handle create adequate control procedures to The purpose of the compliance risk conflicts of interest when entering into ensure compliance with the require- management system is to prevent the transactions in the securities market for ments of Law No.224-FZ of the Russian occurrence, and to identify a poten- their benefit and account, the Chair- Federation; the list of the Bank’s insider tial occurrence, of compliance risks at man of the Bank’s Management Board information and insiders has been pre- early stages and to employ effective approved the “Rules for compliance by pared and approved.
1 Compliance risk is the risk that compliance orders will be issued or sanctions will be imposed by the Bank of Russia, judicial or executive bodies; that losses will be incurred; that the bank will lose its reputation as a result of its failure to comply with applicable rules, requirements or standards, i.e. laws or by-laws, generally accepted principles or standards of international law or international treaties, to which the Russian Federation is a party, or business practices or other requirements binding on the Bank or its internal regulations.
50 GAZPROMBANK GROUP. annual report 2010 Corporate Governance
Corporate Governance System
The Bank’s corporate governance Risk management processes are de- management system has been intro- system was improved in 2010 based veloped under the immediate supervi- duced in GPB Group. on Gazprombank’s fundamental docu- sion of the Board of Directors and the The Bank’s Management Board ex- ments including its updated versions of Management Board of GPB. The quality amined 328 matters during its weekly the Charter, Regulations on the Board of the Bank’s risk management system meetings (60 meetings). The Manage- of Directors, Regulations on GPB’s Ex- has been improved by reorganizing its ment Board determined priorities in the ecutive Bodies and Regulations on Re- structure, improving employee com- field of financial policies and the man- munerations and Reimbursements for position and methodical development, agement of assets and liabilities, and Members of the Board of Directors ap- and by increasing responsibility through preliminarily examined matters referred proved by the annual General Meeting subordination of the relevant business to the Board of Directors for review. Is- of Shareholders in June 2010. line to a member of the Bank’s Manage- sues associated with the Bank’s financial At its 24 meetings, the Board of ment Board. planning, strategic development, bank- Directors focused its attention on set- The Bank’s Board of Directors has ing process improvements and approval ting strategic and long-term develop- approved the Long-Term Incentive Pro- of accounting statements were regularly ment objectives for the Bank, both in gram for GPB employees. The principles discussed. general and for specific business lines. of financial incentives are consistent The Management Board systemati- The Strategy until 2015 and Financial with the recommendations of the Cen- cally reviewed reports and strategies for Plan of GPB Group 2011 were both tral Bank of the Russian Federation and developing individual business lines. approved. market trends, both in terms of their The Management Board has reviewed The Board of Directors functions connection to the performance of the the Bank’s prospects for providing ser- were expanded for matters associated Bank and its subdivisions, and in terms vices to Russian exporters as part of with ensuring effective interaction be- of the use of deferred and long-term a government program to support the tween the Bank’s shareholders and man- benefits. export of industrial products. It has agement and expanding joint efforts The coordination of work for improv- also reviewed plans for developing the between GPB (OJSC) and its main share- ing the corporate governance systems Bank’s business geared towards mid- holder OAO Gazprom. of subsidiary banks is based on regular sized corporate customers, and meas- The Audit Committee of the Board of monitoring and utilizing best practices ures to mitigate the risks associated Directors considered matters reserved to accumulated by the Group. Constitu- with the Bank’s depository business it as scheduled and, among other things, ent documents and internal regulations and other key issues. assessed the efficiency of internal control for subsidiary banks covering corporate To coordinate the scope of the procedures, compliance control in the governance are brought into compli- Bank’s business, the Management Board Bank, and draft action plans prepared for ance with the standards employed has examined matters associated with the corresponding subdivisions. by Gazprombank. A consolidated risk the optimization and development of
51 Corporate Governance
Organizational Management Сhart оf Gazprombank (Open Joint-Stock Company)
MEETING OF SHAREHOLDERS
AUDITOR OF THE BANK BOARD OF DIRECTORS Revision COMMISSION
Audit Committee of the Board of Directors
MANAGEMENT BOARD Chairman of the MANAGEMENT Board
First/Executive/Vice Presidents, advisors Committees TO the Chairman and TO the MANAGEMENT Board
Deputy Chairman of the MANAGEMENT Board Deputy Chairman of the MANAGEMENT Board Administrative & corporate governance, HR management, Financial planning, equity development, subsidiary companies branch network, subsidiary banks
Deputy Chairman of the MANAGEMENT Board Deputy Chairman of the MANAGEMENT Board — Treasury, customer transactions in financial markets, capital market, trust management, correspondent relations Chief Accountant Accounting and tax records and reports, back office, non-cash settlements
Deputy Chairman of the MANAGEMENT Board Deputy Chairman of the MANAGEMENT Board Legal support to corporate policy, media assets management, Corporate customer base, private banking compliance control
Deputy Chairman of the MANAGEMENT Board Member of the MANAGEMENT Board, Credit policy, transactions in precious metals, information technologies First Vice President Legal support to banking activities and troubled debt
Member of the MANAGEMENT Board, Deputy Chairman of the MANAGEMENT Board FIRST VICE PRESIDENT Safety, industrial assets management, financial monitoring, tender purchases, Corporate lending, factoring, documentary transactions administrative support
Member of the MANAGEMENT Board, Deputy Chairman of the MANAGEMENT Board First Vice President Project & structured finance, direct investments, non-core assets Implementation of retail business policy, Moscow regional retail network, depository services
Deputy Chairman of the MANAGEMENT Board Deputy Chairman of the MANAGEMENT Board Corporate finance, direct investments (gas & oil production, other mineral resources) Policy and general coordination of matters associated with safety
Member of the MANAGEMENT Board, Deputy Chairman of the MANAGEMENT Board Bank development strategy, retail business policy, participation in government First Vice President programs, industrial assets Risk management policy, limits policy, online monitoring of transactions in financial markets
52 GAZPROMBANK GROUP. annual report 2010
GPB’s regional network and subsidiary included the assets and liabilities man- Corporate Governance and Remunera- banks, and heard reports on the perfor- agement committee, the credit com- tion Committee). New versions of pro- mance of a number of its branches. mittee, the investment committee, cedures covering the work of a series The Bank’s devoted Management the process committee, the customer of committees have been approved. Board committees held their meetings policy committee and corporate gov- The composition of the committees has on a regular basis. These committees ernance committee (converted to the been optimized.
Infrastructure and Regional Network Development
The front office network of GPB, as of Further development of the In 2010, the Banking Group included January 1, 2011, included 43 branches, Bank’s branch network requires attract- subsidiary banks such as Credit Ural 194 supplementary offices, 12 operational ing major enterprises to the regions Bank, Noyabrskneftekombank, Sever- offices, 1 credit and cash services office, where the branches are currently locat- gazbank, Sibirgazbank, AREXIMBANK — 10 out-of-the-office cash counters, i.e. ed, participating in the most important GAZPROMBANK GROUP, GPB-Ipoteka 260 offices selling banking products in total. investment projects and further expand- and Belgazprombank. Russian Com- Two new branches, in Kazan and Sur- ing joint efforts with Gazprom Group. mercial Bank AO (Zurich, Switzerland), gut, were registered in 2010. One of the top-priority strategies for the also a member of the Group, was re- In completing a project designed to Bank’s regional policy is to actively ex- named Gazprombank (Switzerland) Ltd optimize the branch network operating pand relations with mid-sized corporate in 2010. in the Tyumen region, the Nadim Branch customers and individual customers. The development of each bank of GPB was assigned the status of a satel- It is expected that 22 internal busi- within the Group is subject to the lite office of GPB in Noviy Urengoy on Oc- ness units of GPB’s branches will be Group’s development strategy in tober 1, 2010. The internal business units open for business to provide services general. Uniform standards for the of the branch were made subordinate to to corporate and individual customers Group’s business and common ap- the Noviy Urengoy Branch of the Bank. in 2011. In particular, satellite offices will proaches to planning, budgeting and In 2010, projects were completed be opened in cities such as Nabereah- reporting are being developed; a sin- which established 15 internal business niye Chelni, Nizhnekamsk, Kazan and gle customer policy applying to large units within the Bank’s branches, while Saint-Petersburg. corporate customers and financial in- 2 satellite offices were separated. In Gazprombank’s representative offices stitutions is being implemented; cen- 2010, the Bank’s Management Board re- facilitate the promotion of business and tralized risk management based on in- solved to open another 14 internal busi- implementation of individual projects ternational recommendations is being ness units in 2011. for the Bank’s corporate customers in introduced. The strengthening of the Within Gazprombank’s “Developing China, Mongolia and India and provide Group’s positions in certain regions is a Network of Satellite Offices in Saint- assistance in moving forward projects ensured through expanding the range Petersburg in 2010” project, work was in the field of direct investments, pro- of available banking services, introduc- completed to open 2 satellite offices ject and trade finance, and commercial ing new financial instruments and de- (Severniy and Vasileostrovsky). lending. veloping the banks’ equity.
53 Corporate Governance
Personnel and Organizational Development
GPB’s shareholders and Manage- capitalization and achievement of the V. Lomonosov Moscow State University. ment Board are devoted to the prin- Bank’s strategic plans are linked to in- About 200 students have undertaken an ciple that the Bank’s officers are the dividual performance, achievement of internship in the Bank’s subdivisions. Bank’s main “intangible” asset, whose key performance indicators by business Gazprombank’s long-term business value must only increase over time. It is units and interspaced in time. partnership with the country’s leading the Bank’s officers who create additional The challenges facing Gazprombank educational centers has been highly rat- value for shareholders, customers and require maintaining a high level of quali- ed by the Russian Rectors Union — GPB society in general with their effective fication and training for personnel. Reg- won the 1st Business Partners of Higher and creative efforts. ular advanced training was facilitated by Education Institutes Competition in the The Bank’s team is comprised of about 600 training and advisory events Largest Contribution to Supporting Gifted about 9,000 highly qualified managers completed during the year. 2,900 officers Students and Young Teachers nomination. and specialists united by a common passed on-site training and 6,100 were The Bank’s investments in its person- vision and focused on accomplishing trained using remote means. New forms nel reserve and the education of young common tasks who have passed train- of training (e.g. open trainings) and new people pay back very quickly. By the ing in the best Russian and leading for- partners (in particular, Skolkovo Business end of training, about 40% of succes- eign educational centers. They include School which provides managerial edu- sion candidates execute employment 10 Doctors of Science and Philosophy cation services) have become available. contracts and a number of students, Doctors. The training provided to the who have received name scholarships, The creation of a comfortable inter- Bank’s executive staff is based on a two- join the Bank’s team after graduation. nal work environment among officers level model. Individual training plans This is also facilitated by the active role facilitates the discovery of talented spe- have been developed for the managers of the Bank’s top managers in selecting cialists, fosters self-actualization, creates and specialists included in the opera- the reserve, which creates a feeling of in- a sense of ownership and achievement tional reserve. A special annual develop- volvement and vision with GPB’s devel- of common goals, and satisfies their ment program has been prepared for opment prospects. needs for development and growth. employees included in the future-orient- The Bank’s organizational structure is Employee turnover at the Bank is the ed reserve. The training system covering constantly transforming in accordance lowest in the Russian banking system. the reserve of future executives has ad- with the needs for business develop- This is also facilitated by a constantly de- ditional functions such as an “incubator” ment. Efforts are being redirected to- veloping social protection system cover- of innovations, improvement of team- wards long-term investment projects ing the interests of officers and family work and achievement of the creative aimed at the technological refurbish- members through various internal cor- potential of succession candidates. ment of mid-sized and small businesses, porate programs. The Bank also takes care of its future more effective management of bank- The Bank pursues a policy which con- employees. 20 name scholarships are al- ing risks, and expanding GPB’s regional templates the reformation of compensa- located each year to the most successful presence. The service enhancements of tion practices and the introduction of students of 7 leading Russian higher ed- feasibility, reliability, quality, convenience international standards in its employee ucation institutes. In 2010, 6 grants were and safety offered to the Bank’s custom- incentive system. Variable employee paid to the best students at the Mos- ers also remain among the key priorities benefits tied to long-term growth in cow School of Economics under the M. of the Bank.
54 GAZPROMBANK GROUP. annual report 2010
IT Development
The following areas were GPB’s prior- with respect to heterogeneous infor- One of the innovative IT projects im- ity development strategies for the IT area mation systems employing the latest plemented by the Bank has been the in- during 2010: IT solutions and software. This solution troduction in the financial company GPB
●● Introduction of a hardware and soft- will allow the prompt and effective Financial Services of an information sys- ware platform to automate cash combination of information systems tem enabling end-to-end automation of and settlement services using the into a single communication contour. trading operations in financial markets. software developed by the Center The successful connection of one of the It is based on a solution developed by of Financial Technologies and the Bank’s branches to the centralized set- Calypso, one of the world leaders in IT Bank’s integration platform based on tlement system has provided opportu- products in that particular niche. Start- IBM’s WebSphere software; nity to master the technology in order ing in 2011, the solution will be integrat-
●● Centralization of the Bank’s settle- to further interconnect all branches of ed to cover all transactions performed ment system using a solution from the Bank to create a single communica- by the Bank’s head office. the Center of Financial Technologies. tion contour. To improve the level of corporate Measures have been taken to im- governance, the implementation of an prove fail safety, reliability and accessibil- HR assessment and document man- One of the main results for ity of the main banking and corporate agement system has been completed the year was the launching information systems based on current which has automated personnel-relat- (in a test mode) of the hardware and software platforms of- ed processes. The conversion of salary automated General Ledger fered by companies such as IBM, HP, Ora- and personnel-related record-keeping system developed by CustIS cle, Symantec, EMC. processes to a centralized accounting which enables the complete The internet-based Home Bank system has been completed using the automation of accounting banking service has been successfully Boss — Company solution. and statutory reporting put into pilot operation based on a so- The corporate intranet portal based for the Central Bank of the lution developed by BSS. This system on MS SharePoint was introduced in Russian Federation. offers all transactional and information 2010, and has enabled the Bank to cre- services to holders of the Bank’s plastic ate a single information room for joint cards. The Bank plans to expand func- work between business units (includ- The Bank is planning to implement tional capabilities of that system in ing branches) and for the centralized the architecture for a centralized ledger 2011 to service retail accounts, trans- search of structured and unstructured in accordance with the Bank’s main IT fers and credit products. The technol- information. development principles (componenti- ogy allows significant reductions in The short-range plans include zation, centralization and integration of operating expenses for providing ser- launching an automated document main automated banking systems). vices to individuals and represents an management system based on the Doc- The Interaction Management Sys- alternative remote communication umentum solution and upgrading of the tem — IMS integration platform has channel which allows banking services Bank’s corporate telephony and call pro- been introduced to enable the imple- to be available at any time convenient cessing center using the most modern, mentation of integration principles for customers. hi-tech IT solution offered by Avaya.
55 Corporate Governance
Social Responsibility
Charitable projects and other spon- Gazprombank also made its contribution a monument of federal importance sorships were implemented under the by providing aid to children who suf- were restored. 20th Anniversary banner in 2010, an an- fered from fires through the charitable Significant attention is paid to pro- niversary year for the Bank. During the hockey match arranged by the Admin- viding aid to veterans. Over the past year, Gazprombank successfully imple- istration of the President of the Russian several years, the Bank has provided sup- mented more than 500 charitable and Federation and Spartak, a professional port to the Moscow Non-Governmental sponsorship projects. hockey club from the Capital (“With All Organization of Veterans of War, the GPB’s charitable activities were car- Heart” campaign). Penza regional organization All-Russian ried out on a systematic basis with the On New Year’s Eve, the Bank held the Non-Governmental Organization of Af- core of the Charity and Sponsorship I believe in Santa! charity event which has ghanistan War Disabled Veterans, and Program 2010 comprised of projects already become a good tradition for the the Regional Charity Non-Governmen- that had been financed by the Bank GPB team — the Bank’s officers fulfilled tal Support Fund for Developing the for many years. the wishes of orphaned children who Bolshoy Theater. Charity events have The Bank’s long-term projects in- dreamt of receiving New Year’s gifts. In been held in honor of the 65th Anniver- clude providing aid to children deprived 2010, gifts were purchased for children sary of the Great Victory Day to provide of parental care and supporting educa- living in Special Orphanage No.2 which financial aid to the veterans of the Great tional and social-and-cultural institu- accommodates orphaned children Patriotic War, who include ex-officers of tions such as Valaamsky Friary, The State deprived of parental care. Each of the OAO Gazprom, Saint-Petersburg State Museum Moscow Kremlin, Pushkin State 62 children living in the orphanage re- University, the Mercy regional charity Museum of Fine Arts, Orthodox Ency- ceived a gift. fund for supporting the social protection clopedia Church and Scientific Center, Another opportunity for the of foreign intelligence service veterans Russian Dancers’ Union and others. Bank’s officers to make a personal con- and members of their families, and the Special attention was paid to the vet- tribution to charitable projects is the an- regional Non-Governmental organiza- erans of the Great Patriotic War during nual Help Children! event, the proceeds tion, Military Counterintelligence Service the celebration of the 65th Anniversary of which are used for the medical treat- Veterans. of Victory Day. ment of sick children. Facilitating the preservation of Traditionally, one of the Bank’s main As part of its cooperation with the Russia’s historical and cultural herit- areas of emphasis in social support is Russian Orthodox Church, the Bank age is one of the top-priority areas of providing aid to orphaned and handi- provides financial support both to or- Gazprombank’s charity and sponsorship capped children as well as to persons thodox monasteries and public ortho- activities. The Bank’s cooperation with facing difficult challenges in their lives. dox organizations. Such projects in- the State History and The State Museum Thus, in 2010, the Bank implemented clude the publication of the Orthodox Moscow Kremlin has a special place in various support programs for regions Encyclopedia and restoration of two those efforts. In the course of partner- that had suffered from summer fires. At stavropegial friaries, Spaso-Preobraz- ships, a great number of exhibition the initiative of its branches, the Bank hensky Valaamsky and Spaso-Preobraz- events has been arranged to present allocated funds for restoring burnt-out hensky Solovetsky Friaries. unique items of the world’s cultural her- homes and providing financial support In particular, thanks to Gazprom- itage and recreate a true historic atmos- to local communities. Such aid was sent bank’s aid, the buildings of the Port- phere. The projects supported by the to the settlement centers in the Voron- naya and Chobotnaya Chambers, Bank during 2010 included the exhibi- ezh, Lipetsk, Nizhniy Novgorod and oth- being part of the Spaso-Preobrazhen- tion “Sovereign Knights; Foreign Orders er regions of the central area of Russia. sky Solovetsky Friary ensemble and of Russian Emperors”.
56 GAZPROMBANK GROUP. annual report 2010
The Bank has been partnering with supports Russia’s Bike Sports Federation, One of the Bank’s outstanding anni- Pushkin State Museum of Fine Arts the all-Russia Shooting Union of Russia versary events was the Gazprombank’s and Chekhov Studio School under public sports organization, and the Stu- Working Scholarship Holders All-Russian the Moscow Academic Art Theatre for dent Sports Support Fund. Competition aimed at supporting pri- many years. The Bank actively partners with the mary and secondary professional edu- The top-priority tasks for the country’s leading higher education in- cation and popularizing working spe- Bank’s charity and sponsorship activities stitutes such as Lomonosov Moscow cialties. The competition was arranged also aim at providing support to sports State University, National University in cooperation with 18 industrial firms organizations and promoting a healthy Higher School of Economics, Moscow representing the strategic sectors lifestyle. The Bank has sponsored of the State Institute of International Relations, of the national economy. 23 educa- Zenit football club for many years. For Saint-Petersburg State University of Eco- tional institutions from 16 cities of the the purposes of developing the Chil- nomics and Finance (FINEK) and others. country have taken part in the event. dren’s and Youth Sports School of Zenit In 2010 the Bank became a partner of Those educational institutions train football club, a special co-branded bank the FINANCES AND DEVELOPMENT fund, representatives of working specialties card was issued in 2010. Each payment a founder of the National Competition for the strategic sectors of the Russian made using the card increases charita- in Economics. The aim of the competi- economy such as nuclear power, heavy ble contributions used to develop the tion was to create conditions to identify and medium machine-building, auto system for identifying and training gifted and implement the talents of students manufacturing and aircraft manufactur- young football players. Another impor- of higher education institutes, young ing. Following the results of each con- tant sports project was the Bank’s part- specialists and scientists, to support test, the jury determines the winners nership with the Continental Hockey and encourage their scientific activities, who are awarded Gazprombank’s yearly League. During the 2010/2011 season, to reward them for scientific achieve- name scholarships. 920 students have Gazprombank sponsored the KHL ments, to lead them into innovative received Gazprombank’s scholarships Championship. In 2010 finance was al- activities by creating a competitive en- and, upon graduation will be afford- located for developing the Ural-Yekat- vironment, to develop Russia’s intellec- ed an employment opportunity with erinburg basketball club. Moreover, as tual potential and to further integrate Gazprombank or its strategic partners part of its long-term partnerships, GPB science and practice. and customers.
57 Summary Consolidated Financial Statements Summary Consolidated Financial Statements derived from the audited consolidated financial statements for the year ended 31 December 2010
58 GAZPROMBANK GROUP. annual report 2010
Independent
ZAO KPMG Auditors’ Report 10 Presnenskaya Naberezhnaya Moscow Russia 123317 Telephone +7 (495) 937 4477 Fax +7 (495) 937 4400/99 Internet www.kpmg.ru
To the Board of Directors, Gazprombank (Open Joint-Stock Company)
The accompanying summary consolidated financial statements, which comprise the summary consolidated statement of finan- cial position as at 31 December 2010, the summary consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and related notes, are derived from the audited consolidated financial statements of Gazprombank (Open Joint-Stock Company) and its subsidiaries (the Group) as at and for the year ended 31 December 2010. We expressed an un- qualified audit opinion on those consolidated financial statements in our report dated 20 April 2011. The summary consolidated financial statements do not contain all the disclosures required by International Financial Reporting Standards. Reading the summary consolidated financial statements, therefore, is not a substitute for reading the audited consoli- dated financial statements of the Group.
Management’s Responsibility for the Summary Consolidated Financial Statements Management is responsible for the preparation of a summary of the audited consolidated financial statements on the basis de- scribed in note 2.
Auditors’ Responsibility Our responsibility is to express an opinion on the summary consolidated financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810 Engagements to Report on Summary Financial Statements.
Opinion In our opinion, the summary consolidated financial statements derived from the audited consolidated financial statements of the Group as at and for the year ended 31 December 2010 are consistent, in all material respects, with those consolidated financial statements on the basis described in note 2.
ZAO KPMG 20 April 2011
ZAO KPMG, a company incorporated under the Laws of the Russian Federation, a subsidiary of KPMG Europe LLP, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
59 Summary Consolidated Financial Statements
Summary Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2010
(in millions of Russian Roubles unless otherwise stated) 2010 2009 (re-presented) Interest income 100,188 140,274 Interest expense (68,417) (105,748) Net interest income 31,771 34,526 Impairment of interest earning assets (1,655) (25,875) Net interest income after impairment of interest earning assets 30,116 8,651 Non-banking operating revenues 94,752 80,458 Non-banking operating expenses (91,055) (73,068) Non-banking operating profits 3,697 7,390 Non-interest (loss) gain from financial assets and liabilities held for trading (5,099) 27,911 Gain from disposal of investments available-for-sale and investments in associates 30,743 8,461 Fees and commissions income 10,882 8,788 Fees and commissions expense (2,529) (3,291) Gain from derivative contracts with foreign currency 19,711 15,608 (Loss) gain from foreign exchange (7,427) 12,407 Other operating income 4,571 7,824 Non-interest income 50,852 77,708 Banking salaries and employment benefits (25,737) (15,211) Banking administrative expenses (14,854) (12,285) Recovery of impairment (impairment) of assets and provisions for other risks 443 (8,392) Impairment of goodwill (5,989) (1,156) Non-interest expense (46,137) (37,044) Operating profit from continuing operations 38,528 56,705 Result from acquisitions of subsidiaries and associates 231 - Income (loss) from equity accounted associates 2,599 (2,027) Profit from continuing operations before profit tax 41,358 54,678 Profit tax expense from continuing operations (12,761) (15,550) Profit for the year from continuing operations 28,597 39,128 Profit for the year from discontinued operations, net of profit tax 37,666 19,640 Profit for the year 66,263 58,768
60 GAZPROMBANK GROUP. annual report 2010
2010 2009 (re-presented)
Other comprehensive income Investments available-for-sale: Net change in fair value of investments available-for-sale 13,759 7,349 Net change in fair value transferred to profit or loss (4,850) (380) Exchange differences on translating of foreign operations 1,381 (620) Other comprehensive income, net of tax 10,290 6,349 Total comprehensive income 76,553 65,117
Profit for the year attributable to: Group’s shareholders 56,881 54,255 Non-controlling interests 9,382 4,513 66,263 58,768
Total comprehensive income attributable to: Group’s shareholders 67,864 60,351 Non-controlling interests 8,689 4,766 76,553 65,117 Basic and diluted earnings per share (Russian Roubles) 3,048 2,941
The summary consolidated financial statements were derived from the consolidated financial statements of Gazprombank Group, which were approved for issue by the Board of Directors of the Management Board of Gazprombank (Open Joint-Stock Com- pany) and signed on its behalf on 20 April 2011.
Andrey I. Akimov Alexander I. Sobol Chairman of the Board Deputy Chairman of the Board
20 April 2011
The summary consolidated financial statements should be read in conjunction with the consolidated financial statements of the Gazprombank Group from which they were derived.
61 Summary Consolidated Financial Statements
Summary Consolidated Statement of Financial Position as of 31 December 2010
(in millions of Russian Roubles unless otherwise stated) 31 December 31 December 2010 2009
Assets Cash and cash equivalents 347,066 307,723 Obligatory reserve with the Central Bank of the Russian Federation 10,400 9,860 Due from credit institutions 25,452 110,847 Financial assets held for trading 172,802 138,138 Loans to customers 1,033,370 749,292 Investments available-for-sale 57,141 43,687 Investments in associates 7,867 6,105 Receivables and prepayments 56,318 71,397 Inventories 44,537 54,171 Deferred tax assets 16,812 31,907 Property, plant and equipment 56,201 155,798 Goodwill 19,726 27,725 Intangibles 22,777 20,757 Other assets 10,659 13,735 Investments in associate held for sale 68,070 - Other assets held for sale 2,423 - Total assets 1,951,621 1,741,142
Liabilities Amounts owed to governmental bodies 56,272 49,247 Amounts owed to credit institutions 89,535 139,654 Amounts owed to customers 1,185,377 880,751 Subordinated deposits 143,422 144,630 Financial liabilities held for trading 27,378 72,764 Eurobonds issued 79,392 88,227 Certificated debts 65,923 80,887 Deferred tax liabilities 10,817 14,634 Other liabilities 69,925 74,354 Liabilities associated with assets held for sale 1,699 - Total liabilities 1,729,740 1,545,148
62 GAZPROMBANK GROUP. annual report 2010
31 December 31 December 2010 2009
Equity Share capital 31,836 31,836 Additional paid-in-capital 32,916 33,322 Treasury stock (5,513) (1,661) Foreign currency translation reserve 489 (1,585) Fair value reserve 15,275 6,366 Retained earnings 141,434 83,757 Total equity attributable to the Group’s shareholders 216,437 152,035 Non-controlling interests 5,444 43,959 Total equity 221,881 195,994 Total liabilities and equity 1,951,621 1,741,142
The summary consolidated financial statements should be read in conjunction with the consolidated financial statements of the Gazprombank Group from which they were derived.
63 Summary Consolidated Financial Statements
Summary Consolidated Statement of Changes in Equity for the Year Ended 31 December 2010
(in millions of Russian Roubles unless otherwise stated) Share Additional Treasury Foreign Fair value Retained Equity Non- Total capital paid-in stock currency reserve earnings attributable controlling equity capital translation to the Group’s interests reserve shareholders 31 December 2008 31,836 29,731 (2,372) (712) (603) 30,256 88,136 39,744 127,880 Profit for the year - - - - - 54,255 54,255 4,513 58,768
Other comprehensive income: Net change in fair value of investments available-for-sale - - - - 7,349 - 7,349 - 7,349 Disposal of investments available-for-sale - - - - (380) - (380) - (380) Exchange differences on translating foreign operations - - - (873) - - (873) 253 (620) Total comprehensive income - - - (873) 6,969 54,255 60,351 4,766 65,117 Acquisition of non- controlling interests in subsidiaries - - - - - 480 480 (480) - Acquisition of subsidiaries ------18 18 Dividends paid - - - - - (1,234) (1,234) (89) (1,323) Employee share- option plan - 3,591 711 - - - 4,302 - 4,302 31 December 2009 31,836 33,322 (1,661) (1,585) 6,366 83,757 152,035 43,959 195,994 Profit for the year - - - - - 56,881 56,881 9,382 66,263
64 GAZPROMBANK GROUP. annual report 2010
Share Additional Treasury Foreign Fair value Retained Equity Non- Total capital paid-in stock currency reserve earnings attributable controlling equity capital translation to the Group’s interests reserve shareholders
Other comprehensive income: Net change in fair value of investments available-for-sale - - - - 13,759 - 13,759 - 13,759 Disposal of investments available-for-sale - - - - (4,850) - (4,850) - (4,850) Exchange differences on translating foreign operations - - - 2,074 - - 2,074 (693) 1,381 Total comprehensive income - - - 2,074 8,909 56,881 67,864 8,689 76,553 Acquisition and disposal of non-controlling interests in subsidiaries - - - - - 1,915 1,915 (5,587) (3,672) Disposal of subsidiaries ------(40,268) (40,268) Acquisition of subsidiaries ------500 500 Dividends paid - - - - - (1,119) (1,119) (1,849) (2,968) Acquisition and sale of treasury shares - 1,199 (3,852) - - - (2,653) - (2,653) Transfer of puttable instruments to liability - (1,605) - - - - (1,605) - (1,605) 31 December 2010 31,836 32,916 (5,513) 489 15,275 141,434 216,437 5,444 221,881
The summary consolidated financial statements should be read in conjunction with the consolidated financial statements of the Gazprombank Group from which they were derived.
65 Summary Consolidated Financial Statements
Summary Consolidated Statement of Cash Flows for the Year Ended 31 December 2010
(in millions of Russian Roubles unless otherwise stated) 2010 2009 (re-presented)
Cash flows from operating activities Interest received 99,807 141,469 Fees and commissions received 10,781 7,846 Interest paid (62,417) (106,025) Fees and commissions paid (2,120) (3,454) Non-interest receipts from financial assets and liabilities held for trading 6,652 10,314 Payments from derivative contracts with foreign currency (37,017) (27,458) Foreign exchange receipts 1,758 3,208 Media business operating receipts 39,909 34,087 Media business operating payments (19,017) (16,099) Machinery business operating receipts 33,841 40,408 Machinery business operating payments (36,663) (32,782) Other segment operating receipts 21,001 5,964 Other segment operating payments (19,896) (5,057) Other operating receipts 3,376 5,768 Banking salaries and employment benefit payments (19,610) (15,739) Banking administrative expenses and other operating payments (13,366) (10,909)
Cash flows from operating activities before changes in operating assets and liabilities 7,019 31,541
(Increase) decrease in operating assets Obligatory reserve with the Central Bank of the Russian Federation (540) (8,496) Due from credit institutions 79,885 (11,508) Financial assets held for trading (34,007) 24,963 Loans to customers (197,179) (100,738) Receivables and prepayments, inventories, and other assets (12,518) 748
66 GAZPROMBANK GROUP. annual report 2010
2010 2009 (re-presented)
Increase (decrease) in operating liabilities Amounts owed to credit institutions and governmental bodies (72,414) (569,068) Amounts owed to customers 308,463 228,648 Financial liabilities held for trading - (36) Other liabilities 7,049 (9,618) Net cash flows from (used in) operating activities before profit taxes 85,758 (413,564) Profit taxes paid (2,402) (21,732) Net cash flows from (used in) operating activities 83,356 (435,296)
Cash flows from operating activities from discontinued operations 55,257 24,582
Cash flows from investing activities Investments available-for-sale purchased (7,870) (22,292) Investments available-for-sale sold 11,055 30,129 Property, equipment and intangibles purchased (71,492) (52,713) Property, equipment and intangibles sold 52,850 22,850 Acquisition of subsidiaries, net of cash acquired (8,380) 1,190 Acquisition of non-controlling interest (1,020) - Dividends received 1,314 1,930 Other cash flows from investing activities (1,698) (929) Net cash flows used in investing activities (25,241) (19,835)
Cash flows used in investing activities from discontinued operations (55,821) (27,632)
The summary consolidated financial statements should be read in conjunction with the consolidated financial statements of the Gazprombank Group from which they were derived.
67 Summary Consolidated Financial Statements Summary Consolidated Statement of Cash Flows for the Year Ended 31 December 2010
2010 2009 (re-presented)
Cash flows from financing activities Share premium - 398 Treasury stock sold - 193 Treasury stock acquired (4,258) - Certificated debts redeemed (15,787) (6,003) Eurobonds issued 30,548 3,055 Eurobonds redeemed (40,401) - Eurobonds repurchased (1,386) (8,652) Syndicated loans received 27,087 49,247 Syndicated loans redeemed (1,050) - Subordinated deposits received 325 115,000 Subordinated deposits redeemed (1,472) (46) Financing of non-banking activities received 9,999 13,173 Financing of non-banking activities redeemed (7,255) (12,367) Dividends paid (2,975) (3,627) Net cash flows (used in) from financing activities (6,625) 150,371
Cash flows from financing activities from discontinued operations 3,112 488
Effect of change in exchange rates on cash and cash equivalents (14,695) 16,145 Change in cash and cash equivalents 39,343 (291,177) Cash and cash equivalents, beginning of the year 307,723 598,900 Cash and cash equivalents, end of the year 347,066 307,723
68 GAZPROMBANK GROUP. annual report 2010
Note 1 — Principal activities and organization
a) Activities and organization (the Gazprom Group). The principal Federation and the Czech Republic. As activities comprise commercial lend- of 31 December 2010 the Group effec- The Gazprombank Group (the Group) ing, project finance, acquisition finance, tively controlled 46.31% of OMZ voting primarily consists of: trade finance, deposit taking, foreign ex- stock (17,704,613 ordinary shares trans-
●● the parent company — Gazprom- change and securities trading, precious lating to the effective share of 56.37% of bank (Open Joint-stock Company) metals operations, settlement services, OMZ Group).
●● the group of companies owned by debit/credit card services, depositary In December 2010 the Group dis- CJSC SIBUR Holding (SIBUR Holding and custodian services, fund manage- posed of a portion of its investment in Group) (discontinued) ment services and brokerage services. CJSC SIBUR Holding that resulted in a loss
●● the group of companies owned by The Bank also provides a range of retail of control by the Group over SIBUR Hold- Gazprom-Media Holding (Gazprom services, principally to the employees of ing Group. SIBUR Holding Group is a ver- Media Group) its corporate clients. The legal address tically integrated Russian petrochemical
●● the group of industrial companies of the Bank is: Bld.1, 16, Nametkina Str., group of companies involved in refining, (machinery production) Moscow, 117420, Russian Federation. processing and distribution of petro-
●● other smaller companies and banks, Gazprom Media Group is a Russian chemical products and production and which are primarily part of the bank- media group of companies, the princi- distribution of tires. SIBUR Holding Group ing business, including Severgaz- pal activities of which are TV and radio operations and results from disposal are bank, Sibirgazbank, GPB-Mortgage, broadcasting, advertising, publishing, presented as discontinued operations in Credit Ural Bank, Noyabrskneftekom- film production and distribution primar- these consolidated financial statements. bank, Areximbank, and Gazprom- ily undertaken in the Russian Federa- As of 31 December 2010 the investment bank (Switzerland) Ltd. tion. As of 31 December 2010 the Group in SIBUR Holding Group retained by the The parent company of the Group — owned 100% interest in Gazprom-Me- Group is recognised as an investment in Gazprombank (Open Joint-stock Com- dia Holding, the holding company of associate held for sale. Comparative infor- pany) (the Bank) was established in 1990. Gazprom Media Group. mation for the year ended 31 December The Bank has a general banking license The group of industrial compa- 2009 was reclassified accordingly. and a license for operations with precious nies (machinery production) comprise The summary consolidated financial metals from the Central Bank of the Rus- OMZ (Uralmash-Izhora) Group, Cryogen- statements were authorized for issue by sian Federation (the CBR), and licenses for mash Group, Glazovskiy zavod Khim- the Management Board of the Bank on securities operations and custody servic- mash, Uralkhimmash Group, Uralener- 20 April 2011. es from the Federal Service for Financial gomontazh Group, MK Uralmash Group, Markets. REP Holding and certain other indus- b) Economic dependence The Bank is the third largest bank in trial assets, which the Group acquired in the Russian Federation in terms of as- 2008-2010. OMZ is the holding company As of 31 December 2010, sets and equity, and it provides a broad of the OMZ (Uralmash-Izhora) Group, OAO Gazprom owned 41.73% of the range of predominantly commercial which produces nuclear power plant outstanding shares of the Group. A sub- banking services to many of Rus- equipment, speciality steels, machinery stantial portion of the Group’s funding is sia’s leading corporations and govern- equipment, manufacturing and mining from the Gazprom Group. As such the ment entities including, among others, equipment. The OMZ Group manufac- Group is economically dependent on OAO Gazprom and its related parties turing facilities are based in the Russian the Gazprom Group.
69 Summary Consolidated Financial Statements
Note 2 — Basis of presentation
a) General reporting periods. Actual results could business combinations. Estimation differ from those estimates. Key areas of of fair values of identifiable assets These summary consolidated finan- judgments and key assumptions con- and liabilities acquired in business cial statements, which comprise the cerning the future and other key sources combinations involves the exercise summary consolidated statement of fi- of estimation uncertainty at the report- of judgement and use of valuation nancial position as at 31 December 2010, ing date, that have a significant risk of models, which among others include the summary consolidated statements causing a material adjustment to the assumptions about future business of comprehensive income, changes in carrying amounts of assets and liabilities performance and cash flows and ap- equity and cash flows for the year then within the next financial year, include: propriate discount rates ended, and related notes are derived ●● estimation of allowance for im- ●● estimation of impairment losses for from the audited consolidated financial pairment losses for financial assets non-financial assets. Estimation of statements of the Group. measured at amortized cost. These impairment losses for non-financial The complete consolidated financial include mainly amounts due from assets involves the exercise of judge- statements are prepared in accordance credit institutions, loans to custom- ment and use of valuation models, with International Financial Reporting ers, receivables and other assets. The which among others include as- Standards (IFRS). These summary consol- estimation of allowance for impair- sumptions about future business idated financial statements are derived ment losses involves an exercise of performance, estimation of cash from the complete consolidated finan- judgment and is based on internal flows from assets assessed for impair- cial statements, except that substantially credit risk rating systems and statisti- ment and estimation of appropriate all note disclosures are omitted. cal data discount rates
Management is responsible for the ●● valuation of complex and illiquid ●● decisions whether the Group ceased preparation of the consolidated financial financial instruments. Valuation of to control a subsidiary as a result of statements in accordance with the IFRS. complex and illiquid financial instru- a sale of its stake in the subsidiary The preparation of consolidated fi- ments involves the exercise of judg- that is subject to further regulatory nancial statements in accordance with ment and use of valuation models. approval. Management considers all IFRS requires management to make In the absence of an active market relevant facts and circumstances, in- judgements and key estimates and as- management has to make assump- cluding an assessment of the prob- sumptions that affect the reported tions in respect of appropriate inputs ability of obtaining such an approval, amounts of assets and liabilities and used in valuation models, some of and applies judgment to determine disclosures of contingent assets and li- which may not be based on observ- whether the control over the subsidi- abilities at the date of the financial in- able market data ary is lost before the Group legally formation and the reported amounts ●● estimation of fair values of identifi- transfers the ownership rights to of revenues and expenses during the able assets and liabilities acquired in a third party.
70 GAZPROMBANK GROUP. annual report 2010
b) Russian economic operations in the Russian Federation financial statements reflect manage- environment involve risks that typically do not ex- ment’s assessment of the impact of ist in other markets. In addition, the the Russian business environment on The Russian Federation is experienc- contraction in the capital and credit the operations and the financial posi- ing political and economic change that markets and its impact on the Rus- tion of the Group. The future business has affected, and may continue to af- sian economy have further increased environment may differ from manage- fect, the activities of enterprises operat- the level of economic uncertainty in ment’s assessment. ing in this environment. Consequently, the environment. These consolidated
71 Reference Information Reference Information
GPB Branches and Representative Offices
Astrakhan Established 3/22/1994 Address 12, Bldg.2 Vorobyova Drive, Astrakhan, 414057 2 Phone number: (851-2) 49-36-23 Head of the branch Gennadiy N. Sagunov
Barnaul Established 3/6/2002 Address 20 Severo-Zapadnaya St., Barnaul, 656037 Phone number: (385-2) 36-15-13 Head of the branch Vyacheslav A. Neupokoyev
Belgorod Established 7/13/2009 Address 36 Kostyukova St.,Belgorod, Belgorod Region, 308012, Russia Phone number: (472-2) 58-82-92 Head of the branch Gennady N. Koptyaev
Bryansk Established 3/23/2000 Address 4 Partizan square, Briansk, 241050 Phone number: (483-2) 74-59-17 Head of the branch Sergey V. Lomako
Vladivostok Established 3/19/2009 Address 5a Uborevicha St., Vladivostok, Primorsky Territory, 690091 Phone number: (423-2) 65-08-35 Head of the branch Dmitry V. Gutnikov
72 GAZPROMBANK GROUP. annual report 2010
Volgograd Established 8/24/1993 Address 34a Kozlovskaya St., Volgograd, 400074 Phone number: (844-2) 93-04-50 Head of the branch Larisa S. Turetskaya
Ekaterinburg Established 1/24/2000 Address 134v Lunacharskogo St., Ekaterinburg, 620075 Phone number: (343) 355-58-00 Head of the branch Yan V. Tsenter
Izhevsk Established 2/4/1993 Address 89 Krasnogeroiskaya St., Izhevsk, Udmurt Republic, 426034 Phone number: (341-2) 68-05-63 Head of the branch Alexander N. Zarubey
Irkutsk Established 7/31/2006 Address 41 Sverdlova St., Irkutsk, Irkutsk Region, 664011 Phone number: (395-2) 28-31-82 Head of the branch Yury V. Gorshkov
Yoshkar Ola Established 9/17/2009 Address 17 Uspenskaya St., Yoshkar Ola, the Republic of Marij El, Russia, 424000 Phone number: (836-2) 41-66-16 Head of the branch Oleg A. Ovsyannikov
Kazan Established 2/9/2010 Address 3 Levo-Bulachnaya St., Kazan, Kazan, Republic of Tatrstan,420111, Russia Phone number: (843) 221-73-01 Head of the branch Boris P. Pavlov
Kaliningrad Established 8/2/2007 Address 5 Leninsky Avenue, Kaliningrad, Kaliningrad Region,236039, Russia Phone number: (401-2) 30-52-00 Head of the branch Viktor E. Baranov
73 Reference Information GPB Branches and Representative Offices
Kemerovo Established 2/27/2007 Address 3 Sobornaya St., Zavodskoy District, Kemerovo, Kemerovskaya Region, 650004 Phone number: (384-2) 34-50-90 Head of the branch Nelly D. Morozenko
Kostroma Established 6/13/1997 Address 8a Sovetskaya St., Kostroma, 156000 Phone number: (494-2) 49-09-00 Head of the branch Yury A. Migachev
Krasnodar Established 11/3/1992 Address 11 Dmitrievskaya Damba str., Krasnodar city, Krasnodar region, 350033 Phone number: (861) 210-48-00 Head of the branch Vladislav D. Tsyganesh
Krasnoyarsk Established 1/25/2006 Address 87 Б Akademika Kirenskogo Str., Krasnoyarsk, Krasnoyarsk Territory, 660041, Russia Phone number: (391) 274-58-00 Head of the branch Pavel G. Avdeev
Lipetsk Established 11/17/1995 Address 49a Gagarina St., Lipetsk, 398002 Phone number: (474-2) 42-01-01 Head of the branch Vladimir R. Arustamov
Makhachkala Established 8/25/1994 Address 24 Ermoshkina St., Makhachkala, the Republic of Dagestan, 367025 Phone number: (872-2) 67-53-45 Head of the branch Abdulatip M. Saypulaev
Murmansk Established 6/1/2009 Address 15 Karla Marksa St., Murmansk Region, Russia, 183025 Phone number: (815-2) 55-36-00 Head of the branch Mikhail K. Samotaev
74 GAZPROMBANK GROUP. annual report 2010
Nizhny Novgorod Established 2/4/1993 Address 3, Bldg. 5, Piskunova St., Nizhny Novgorod, 603005 5 Phone number: (831) 421-82-00 Head of the branch Sergey A. Voskresensky
Novosibirsk Established 2/5/2001 Address 2 Kavaleriyskaya St., Novosibirsk, 630105 Phone number: (383) 200-10-00 Head of the branch Namzhil N. Urbanaev
Novy Urengoi, the Tyumen Region Established 2/4/1993 Address 4, 26-go S’ezda KPSS St., Novy Urengoi, Tyumen Region, 629300 Phone number: (349-4) 93-53-81 Head of the branch Larisa G. Khomyakova
Omsk Established 9/23/2002 Address 20 Magistralnaya St., Omsk, 644088 Phone number: (381-2) 24-50-00 Head of the branch Elena P. Kholopova
Orenburg Established 6/13/1997 Address 18 Pravdy St., Orenburg, 460000 Phone number: (353-2) 73-30-71 Head of the branch Elena S. Varnavskaya
Perm Established 10/9/2002 Address 77a Maksima Gorkogo Str., Sverdlovsky district, Perm Perm Region, 614007 Phone number: (342) 219-00-55 Head of the branch Sergey V. Yaremchenko
Rostov-on-Don Established 1/11/1996 Address 20/17 Voroshilovsky Ave., Rostov-on-Don, Rostov Region, 344006, Russia Phone number: (863) 249-77-60 Head of the branch Olga N. Ogurtsova
75 Reference Information GPB Branches and Representative Offices
Samara Established 3/9/2007 Address 191 Galaktionovskaya St. (through passage to 190 Samarskaya St.), Leninsky District, Samara, 443001 Phone number: (846) 273-83-93 Head of the branch Alexey P. Anfimov
St. Petersburg Established 12/13/1993 Address “A” 3, Proletarskoy Diktaturi Str., Saint-Petersburg, 191124 Phone number: (812) 301-99-99 Head of the branch Olga V. Dragomiretskaya
Saratov Established 9/24/1993 Address 2/10 Valovaya St., Saratov, 410031 Phone number: (845-2) 39-06-02 Head of the branch Viktor I. Sverchkov
Stavropol Established 12/26/1997 Address 419, Bldg. 2, Lenina St., Stavropol, 355012 Phone number: (865-2) 56-67-83 Head of the branch Valery V. Kostyukov
Surgut Established 7/14/2010 Address 12 Svobody Blvd., Surgut, Khanty-Mansi Autonomous Area — Yugra, Tyumen Region, 628417, Russia Phone number: (3462) 24-49-80 Head of the branch Maxim E. Nigmatullin
Tomsk Established 10/19/1993 Address 52 E Pushkina St., Tomsk, 634006 Phone number: (382-2) 61-00-63 Head of the branch Elena G. Novoselova
Tula Established 2/4/1993 Address 106 Lenina St., Tula, 300026 Phone number: (487-2) 50-05-55 Head of the branch Valery V. Kuznetsov
76 GAZPROMBANK GROUP. annual report 2010
Tyumen Established 1/31/1994 Address 62 Respubliki St., Tyumen, 625000 Phone number: (345-2) 46-51-91 Head of the branch Lyubov G. Dorokhova
Ufa Established 2/3/1999 Address 138 Mendeleeva St., Ufa, the Republic of Bashkortostan, 450022 Phone number: (347) 256-67-80 Head of the branch Roza N. Urazgildeyeva
Ukhta Established 9/23/1994 Address 25 30-Letiya Oktyabrya Str., Ukhta, the Komi Republic, 169400 Phone number: (821-47) 9-67-57 Head of the branch Yury A. Godovnikov
Khabarovsk Established 10/28/2008 Address 46 Turgeneva Str., Khabarovsk, Khabarovsk Region, 680000, Russia Phone number: (421-2) 41-69-59 Head of the branch Yury A. Korolev
Cheboksary Established 12/11/2008 Address 2 Prospect Lenina, Tcheboksari, Chuvash Republic, 428000 Phone number: (835-2) 30-30-10 Head of the branch Oleg L. Simunov
Chelyabinsk Established 6/28/2004 Address 116 Krasnoarmeiskaya St., Chelyabinsk, 454091 Phone number: (351) 247-91-90 Head of the branch Alexander E. Grabovsky
Shchelkovo, the Moscow Region Established 6/23/2000 Address 1-1a Proletarsky Ave., Shchelkovo, Moscow Region, 141100 Phone number: (495) 526-47-36 Head of the branch Vadim V. Lisakovich
77 Reference Information GPB Branches and Representative Offices
Yugorsk, the Tyumen Region Established 2/4/1993 Address 31 Lenina St., Yugorsk, Sovetsky District, Tyumen Region, 628260 Phone number: (346-75) 2-04-75 Head of the branch Roman R. Dubinsky
Yuzhno-Sakhalinsk Established 7/23/2009 Address 38 Kurilaskaya St., Yuzhno-Sakhalinsk, Sakhalinsk Region, Russia, 693020 Phone number: (4242) 45-40-00 Head of the branch Vladimir I. Shapoval
Yakutsk Established 10/17/2008 Address Floors 1& 2, 18 Ammosova St., Yakutsk, the Republic of Sakha, Yakutia 677000 Phone number: (411-2) 42-14-03 Head of the branch Albert Z. Egorov
Representative office in Beijing (China) Established (registration date) 7/17/2006 Address 1801, Tower D, Central International Trade Centre, 6A, Jianguomenwai Dajie,Beijing, China, 100022 Phone number: (+86-10) 65 63 05 16 Head of the branch Alexander I. Kobin
Representative office in Ulan Bator (Mongolia) Established (registration date) 2/14/2008 Address P.O. Box 661, 6 Enkh Taivan, Ulan Bator, Mongolia, 14250 Phone number: (+976) 99 10 99 02 Head of the branch Valery A. Kislov
Representative office in New-Delhi (India) Established (registration date) 5/25/2010 Address 10 / 48 Malcha Marg, Diplomatik Enclave, Chanakyapuri, New Delhi — 110021, Delhi, INDIA Phone number: (+91) 11 2410 86 48 Head of the branch Alexey A. Sovko
78 GAZPROMBANK GROUP. annual report 2010
Subsidiary and Affiliated Banks
Subsidiary Banks in Russia
Severgazbank Commercial Bank, Open Joint-Stock Company Established on April 29, 1994 General license CB-RF No. 2816 GPB Group ownership 98.4% Regional network 13 branches, 49 additional offices and 13 cash counters. Address 3 Blagoveshchenskaya St., Vologda, 160001 Phone number: (8172) 57-36-00 Web site www.severgazbank.ru
Sibirgazbank Commercial Joint-Stock Bank, Closed Joint-Stock Company Established on August 4, 1994 General license CB-RF No. 3042 GPB Group ownership 100.0% Regional network 1 Supplementary Office Address 1/1 Universitetskaya St., Surgut, Tyumen Region, 628400 Phone number: (3462) 502-502 Web site www.sibgazbank.ru
GPB-Ipoteka, Open Joint-Stock Company Established on June 30, 1993 License for bank operations No. 2403 GPB Group ownership 98.2% Address 14, Kolomensky proezd, Moscow, 115446 Phone number: (495) 223-40-40 Web site www.gpb-ipoteka.ru
Credit Ural Bank Open Joint-Stock Company Established on November 25, 1993 General license CB-RF No.2584 GPB Group ownership 100.0% Regional network 1 branch, 1 additional office, 1 lending-and-cash services office and 8 cash counters. Address 17 Gagrina St., Magnitogorsk, Chelyabinsk Region, 455044 Phone number: (3519) 24-89-10 Web site www.creditural.ru
79 Reference Information Subsidiary and affiliated banks
Noyabrskneftekombank Commercial Bank, LLC Established on March 3, 1993 General license CB-RF No.2274 GPB Group ownership 99.2% Regional network 1 branch Address 73 Sovetskaya St., Noyabrsk, the Yamalo-Nenets Autonomous District, Tyumen Region, 629807 Phone number: (3496) 35-30-01 Web site http://nnkb.tngs.ru/
Subsidiary and affiliated foreign banks
Belgazprombank Open Joint-Stock Company Registered on November 28, 1997 General license No.8 of the National Bank of the Republic of Belarus GPB Group ownership 49.0% Regional network 8 branches, 57 additional offices and 125 cash counters. Address 60/2 Pritytskogo St., Minsk, Republic of Belarus, 220121 Phone number: +7-10-(37517) 229-16-29 Web site www.belgazprombank.by
ARMENIAN-RUSSIAN EXPORT-IMPORT BANK Closed Joint-Stock Company Registered on June 3,1998 License No.80 of the Central Bank of the Republic of Armenia GPB Group ownership 100.0% Regional network 15 branches Address 12 Mger Mkrtchyana St., Erevan, Republic of Armenia, 375010 Phone number: (495) 411-74-85 +7-10-(37410)-54-89-12 Web site www.areximbank.am
Gazprombank (Switzerland) Ltd. State registration certificate No.020.3.002.981-3 of September 25, 1992 License 92 GPB Group ownership 100.0% De facto address: Zollikerstrasse 183, 8008 Zurich Postal address Postfach 1274, CH-8032 Zurich Phone number: +41 44 386 86 86 +7 495 956 75 52 Web site www.gazprombank.ch
80 GAZPROMBANK GROUP. annual report 2010
Licenses, Permits, Certificates
●● General License of the Bank of Russia No. 354, September 28, 2007
●● License of the Bank of Russia for Precious metals trading No. 354, September 28, 2007,
●● Russian Federal Financial Markets Service license No. 177-04464-000100, January 10, 2001, for depository activities
●● Russian Federal Financial Markets Service license No. 177-04280-010000, December 27, 2000, for dealing activities
●● Russian Federal Financial Markets Service license No. 177-04329-001000, December 27, 2000, for securities management
●● Russian Federal Financial Markets Service license No. 177-04229-100000, December 27, 2000, for brokerage activities
●● Russian Federal Financial Markets Service license No. 22-000-0-00021, December 13, 2000, for operating a specialized depository of investment funds, unit funds and non-governmental pension funds
●● Russian Federal Financial Markets Service No. 1327, February 25, 2009, for conducting business as an exchange intermediary.
●● General License No. ЛГ0270900300360 issued on June 17, 2009, by the Ministry of Industry and Trade of the Russian Federation (authorizing the export of gold in bars)
●● General License No. ЛГ0270900300361 issued on June 17, 2009, by the Ministry of Industry and Trade of the Russian Federation (authorizing the export of silver in bars)
●● Certificate series 77 No. 004890355 issued by the Interregional Department of the Ministry of Taxation of the Russian Federation on August 28, 2002 (OGRN)
●● Certificate series 77 No. 010022158 issued by Moscow Interregional Inspectorate No.50 of the Federal Tax Service (INN/KPP)
●● Certificate No. 354 evidencing the registration of the credit organization JSB Gazprombank (CJSC) with state authorities issued by the Bank of Russia on November 13, 2001 (stamped by the Moscow Head Territorial Department of the Bank of Russia on September 27, 2007)
●● Certificate No. 629 issued by the State Corporation Deposit Insurance Agency on May 10, 2005
●● Certificate No. 045 evidencing the registration of the organization as a member of the National Stock Association, February 28, 2001
●● Certificate of membership in PARTAD series А No. 0000193, April 29, 2004
●● Notice from International Saint-Petersburg Inspectorate No. 9 of the Federal Tax Service dated November 17, 2006 (KPP)
81 Reference Information
Contact Info
Full Name: GAZPROMBANK (Open Joint-Stock Company) Abbreviated Name: GPB (OJSC) Start of Business Operations: July 31, 1990 Legal Address: 117420 Moscow, 16 Nametkina St., bldg. 1 Place of business: 63 Novocheremushlinskaya St., Moscow 16 Raushskaya naberezhnaya, Moscow Single Help Desk: (495) 913-74-74 Fax: (495) 913-73-19 Telex: 412027 GAZ RU Web site: www.gazprombank.ru E-mail: [email protected] Swift Code: GAZPRUMM Reuters Dealing code: GZPM Correspondent Account: 30101810200000000823 with the Operating Department of Moscow GTU of the Bank of Russia; INN: 7744001497 KPP: 997950001 BIC: 044525823 OKPO: 09807684 OKVED: 65.12
82 GAZPROMBANK GROUP. annual report 2010
83 © GAZPROMBANK GROUP, 2011
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