Raiffeisenbank Russia Annual Report 2011 Self-portrait 011 2 ANNUAL REPORT
Survey of Key Data Contents ZAO Raiffeisenbank 2011 2010 Change Monetary values are in RUR mln Consolidated Income Statement Net interest income after provision for loan impairment 25,548 17,747 44.0% Net commission income 7,763 7,422 4.6% Statement of the Supervisory Board 2 Trading profit 4,175 3,033 37.7% Statement of the Chairman of the Board 4 Administrative and other operating expenses -20,475 -18,079 13.3% Profit before tax 18,286 9,411 94.3% Managing Board of ZAO Raiffeisenbank 6 Profit 13,855 7,288 90.1% Balance Sheet Russia: Economic Prospects 10 Due from other banks 3,999 21,725 -81.6% Loans and advances to customers 354,743 283,564 25.1% Raiffeisen Bank International AG at a glance 14 Due to other banks 29,935 20,535 45.8% Customer accounts 399,461 286,744 39.3% Vision and Mission 16 Total assets 605,086 508,305 19.0% Human Resources Policy 17 Capital adequacy in accordance with the Central Bank of Russian Federation requirements
Capital 78,314 69,121 13.3% Compliance Control. Anti-Money Laundering Policy 24 Actual capital adequacy ratio 13.59% 17.09% -20.5% Required minimum capital adequacy ratio 10.0% 10.00% 0.0% Treasury 28 Performance Return on average equity (ROE) before tax 20.13% 11.41% 76.4% Corporate Banking 42 Return on equity (ROE) after tax 15.25% 8.83% 72.7% 52 Cost/income ratio 55.30% 55.78% -0.9% Retail Customers Return on assets (ROA) before tax 3.3% 1.9% 78.4% Subsidiary Companies 64 Resources Number of staff as at 31 December 9,580 9,652 -0.7% Corporate Responsibility 72 Business outlets as at 31 December 189 195 -3.1% Financial Statements 76
Addresses 82 Statement of the Supervisory Board Statement of the Supervisory Board
Statement of the Supervisory Board Furthermore, Maria Minayeva, Head of the Risk Management Directorate; Gert Hebenstreit, Head of the Operations & IT Directorate and Nikita Patrakhin, Head of Corporate Finance and Investment Banking Division joined the Management Board. Andrey Stepanenko, Member of the Board and Head of the Retail Private Individuals Directorate, was appointed Ladies and Gentlemen, Deputy Chairman of the Board.
2011 was once again a fairly eventful year. The developments in Europe, and All these changes are a significant step towards strengthening Raiffeisenbank’s Management Board as the main governing particularly in the peripheral states of the eurozone, left their mark on the group body, which will help make the bank even more efficient and result-oriented. headed by Raiffeisen Bank International AG (RBI), the parent company of Raiffeisenbank. We too were unable to escape the effects of the market environment The Supervisory Board and I personally congratulate the team of Raiffeisenbank on its success! I also do thank all staff for following the sovereign debt crisis – which is what it really is, rather than a banking their invaluable contribution to this success, for their loyalty and trust, professionalism and dedication, which have been crisis. the foundation of our success during the 15 years we have operated in Russia.
RBI and banks in general are facing a lot of new rules. From our point of view, however, they are introduced at an unfortunate time and in too much haste. The Herbert Stepic, regulations published by the European Banking Authority (EBA) at the end of October CEO of Raiffeisen Bank International AG, which call for a core tier 1 capital ratio of 9 per cent by the end of June 2012 Chairman of the Supervisory Board of put pressure on many banks in Europe. However, we – to be more exact, the RZB ZAO Raiffeisenbank Group – are well-equipped to handle this. We have put together a comprehensive bundle of measures, consisting of numerous individual measures. We are also in the fortunate position of making profits which are strengthening our equity. As a result, we can meet the new requirements from our own resources.
Moreover, the Austrian regulators decided to introduce the Basel III rules earlier than previously planned and implemented a ratio system for banks operating in Central and Eastern Europe to bring funding from other sources than the shareholder and loans into balance. By meeting the EBA ratio, RBI is also reaching the Basel III ratio of 7 per cent, which the Austrian regulators have set as mandatory from the start of 2013. We do not regard the guideline that only € 110 should be lent in CEE for every € 100 of deposits (including certain other forms of funding) as a major restriction. As growth in lending is tied to economic growth, it is likely to be moderate in the next few years. Looking at growth rates, we have to distinguish between markets. While in the eurozone we are facing a real systemic and political crisis, in Central and Eastern Europe the economic uptrend is largely continuing. This region is and will continue to be the growth driver for Europe. Even if economic growth in the CEE region slows from 3.7 per cent in 2011 to 2.6 per cent in 2012, this is still higher than in the eurozone. This is not a bad outlook for us.
In this difficult environment, the RBI Group generated a profit before tax of € 1.37 billion, which is a solid result we can rightly be proud of. One thing that made this possible is that the markets in Central and Eastern Europe continued to show comparatively high economic growth, which also resulted in a significant improvement in our risk situation. Our result confirms our sustainable business model, which will continue to keep us very competitive!
Speaking of Raiffeisenbank, we suffered a great loss in 2011 with the untimely death of the Chairman of the Board, Pavel Gurin. He will remain in our memory as a brilliant, outstanding person and an astute and talented leader. In many respects, he can take credit for Raiffeisenbank’s achievements.
For many years, Raiffeisenbank has been one of the leading network banks in terms of income. In 2011, it celebrated its 15th anniversary with its most profitable year so far.
At the same time, the Russian economy continued to recover during 2011, and an increase in oil prices was the key driver for it. Moreover, annual inflation turned out to be lower than expected and overall, the Russian economy improved with real GDP growth of 4.3 per cent in 2011.
During 2011, there were quite a few changes to the Management Board of Raiffeisenbank. In September, Sergei Monin was appointed Chairman of the Board. His outstanding professionalism, many years of experience in the Russian banking sector and strong managerial skills will no doubt enable him to achieve all the goals we have set for our largest subsidiary bank, which has a high strategic importance for the RBI Group.
2 3 Statement of the Chairman of the Board Statement of the Chairman of the Board
Statement of the Chairman of the reached a new level. The range of investment and banking products was significantly expanded, and a new solution for remote account services was launched. Now, the Friedrich Wilhelm Raiffeisen services are available to wealthy clients in all regions of Russia where the bank is located. The rapid growth of the retail deposit base deserves a special mention, Board since this attests to the high level of consumer confidence in our bank. Our clients’ deposits have been growing steadily, despite the fact that the bank’s interest rates remained some of the lowest on the market, which points to the power of our Ladies and Gentlemen, brand and the bank’s reputation.
when we speak about the results of 2011, we experience mixed feelings: pride The high degree of reliability of the bank was reflected in most favorable ratings repeatedly awarded to the bank by for Raiffeisenbank’s unprecedented performance results, and at the same time leading international rating agencies. sorrow for the loss of Pavel Gurin, our Chairman of the Board, friend and colleague. Pavel was the ultimate professional. Under his leadership, the bank managed to In 2011, we continued to develop our regional branch network by opening four new offices in Moscow and other successfully overcome the difficulties of the crisis, and today’s success is largely the regions. In order to provide better service to our clients, we continued to transfer the network of regional offices onto result of the choices made then. Pavel Gurin will always be one of the bank’s most a single operating platform, and this process is almost complete. memorable and successful leaders. Speaking of success, it is imperative that I mention our subsidiaries, which complement the universal offer for private and In terms of the performance results, last year was undoubtedly a successful one for corporate clients. Raiffeisenbank. We not only fully recovered from the challenging recent years, but also made record profits in the fifteen-year history. Profits nearly doubled compared In 2011, Raiffeisen Capital Asset Management Company ranked third in the collective investment market in terms of to last year, which enabled us, once again, to make a key contribution to the assets in public funds. For the third consecutive year, the company remains an unchallenged leader as “The most popular financial results of the entire Raiffeisen Bank International Group in 2011. asset managing company in 2011” according to RBC.Rating.
Raiffeisenbank is a universal bank for everyone who appreciates quality. Our Raiffeisen-Leasing, which is a leader among local universal leasing companies with foreign capital, also made record inspiration is a short motto: “Attitude makes the difference.” We are working hard and will continue to do so to ensure profits in 2011. These results are due to the significant growth of the portfolio as well as a further improvement in its quality. that our services are the most accessible and our staff the friendliest. To implement our strategy, we aim to become the primary bank for a variety of clients: retail customers, including premium segment and private banking retail clients, major Whilst implementing its strategy of qualitative growth, NPF Raiffeisen managed to increase its assets under management corporate clients, and small and middle market enterprises. Through our commitment to Western banking standards and by 1.5 fold which reflects the very high consumer confidence in this fund. The fund’s high level of reliability is the basis of ability to offer high quality and efficient financial services, we aim to establish long-term relationships with clients in all of its reliability rating, reaffirmed at A+ by rating agency (Expert RA). these segments. In 2011, Raiffeisen Life Insurance Company maintained the strong growth rates of 2010. Having substantially increased Returning to the last year’s results, I will now focus on our major achievements. its client base, the company showed an increase in insurance premiums an almost 2.5-fold growth in insurance premiums.
The traditional synergy of the corporate and investment segments has resulted in a steady growth in corporate loans In recent years, the market has presented us with complex challenges, which the bank overcame whilst building a very with a significant improvement in their quality. We managed to support not only clients who needed traditional banking stable business model. The loans to deposits ratio is below 100 per cent, which demonstrates the bank’s complete self- products, but also borrowers interested in structured financial solutions. In 2011, Raiffeisenbank confirmed its position as sufficiency in its own refinancing. In addition, the assets and liabilities of the bank are quite diversified one of the leaders in investment banking in a highly competitive environment by organizing 23 syndicated loans totalling over USD 8.7 billion and 26 bond issues totalling RUR 144 billion (countervalue of approximately USD 4.9. billion) for All this gives us hope that the good results we achieved in 2011 are stable, and we are confident that we can continue companies with average level of capitalization as well as prime borrowers. We particularly value the fact that in 2011 to grow. the experience and professionalism of our staff were recognized in the nominations “Best bond market in Russian market” and “Best DSM team in Russian market“, according to Cbonds. Our solid foundation as well as the experience and professionalism of our team mean that we can enter 2012 with confidence. In 2011, the development of investment banking business was supplemented by the launch of a new business arm, namely “Raiffeisen Investment” LLC, which specializes in equity markets for public offerings as well as mergers and acquisitions. On behalf of the bank, I thank our clients and partners for their trust, cooperation and support!
When speaking about the growth of the retail sector, the first thing to highlight is the significant increase in the loan We believe that together we can make 2012 a successful year for all of us! portfolio, which is largely due to the fast-paced market growth and the timeliness of our offers, especially with regard to consumer loans and credit cards. By the middle of the year, sales of these products reached a record high in the history of the bank’s performance. Sergei Monin, Chairman of the Board In addition, particular emphasis was put on the development of the product line through innovative and integrated products ZAO Raiffeisenbank for private clients. For example, Raiffeisenbank was the first Russian bank to issue MasterCard World Black Edition credit card with its innovative one-touch payment system PayPassTM. The popularity of this card amongst our clients led to record sales in 2011: by the end of the year, more than 150,000 of these cards had been issued.
The comprehensive package proposal for Premium clients is rapidly growing as well: Premium package conditions were improved, and the new Golden package was launched. The products and services for Private Banking clients have
4 5 Managing Board of ZAO Raiffeisenbank Managing Board of ZAO Raiffeisenbank
Managing Board of ZAO Andrey Stepanenko Arndt Roechling Member of the Board, Deputy Member of the Board, Chairman of the Board; Head Head of Financial Raiffeisenbank of Retail Private Individuals Directorate Directorate
Nikita Patrakhin Mariya Minaeva Member of the Board, Member of the Board, Oksana Panchenko Sergei Monin Head of Corporate Head of Risk and Credit Finance and Investment Management Directorate Member of the Board, Head of Chairman of the Board Banking Division Corporate Banking&Corporate Finance Directorate
Gert Hebenstreit Member of the Board, Head of Operations & IT Directorate
6 7 ALEXEI ANTROPOV MARTIN VAN MEYTENS
1716 –1795 1695 –1770 One of the pioneers of Russian portrait painting, and The most prominent Austrian portrait painter of the Baroque a baroque-style artist. As a painter, he took part in the era, Director of the Vienna Academy of Fine Arts. As coronation of Empress Elizaveta Petrovna, and later on created a painter of the court, Martin van Meytens captured all a set of official portraits of the Russian empress. Antropov the major public events and ceremonies of his era, such got particularly famous as a result of a series of chamber as the coronation of Emperor Joseph II. Many elegant, art portraits of the people who were close to the Empress – ceremonial portraits, monumental multi-figure paintings, Russian aristocrats and waiting-ladies. Antropov’s portraits are and family portraits of aristocratic dynasties were created in distinct because of the brevity of their composition, his careful the artist’s studio. attention to detail, his exquisite skills of observation, and his ability to show the characters’ personalities.
Alexei Antropov Martin van Meytens Self-portrait Self-portrait 1784 1740 Oil on canvas Oil on canvas The State Russian Museum Museum of Fine Arts St. Petersburg Budapest Russia: Economic Prospects Russia: Economic Prospects
Russia: Economic Prospects Another supporting factor was the government’s tighter tariff policy. CBR measures have also become more effective at controlling inflation, as it gradually switches to inflation-targeting.
In 2011 the Russian economy continued to recover. GDP grew at the same pace as in 2010 when it posted growth of 4.3%. A 40% increase in oil prices was the key driver for the Russian economy during Economic Growth this difficult period. Increased consumption was a major contributor to economic growth, while investments came under pressure due to deteriorating global market conditions. Overall, the Russian economy improved with real GDP growth of 4.3% in 2011. The economic growth in 2010 mainly constituted a recovery, while the positive result for 2011 is primarily due to fundamental issues. In 2011 the development of the eurozone crisis was a major threat to economic growth in Russia Financial Sector and in many other countries. However, since oil prices were far more sensitive to geopolitical factors (Arab spring) than the eurozone debt crisis, they continued to rise. In turn, the relative stability of oil prices In 2011 the Russian stock market was highly volatile. The positive price trend in the first half of the year made provided a basis for the positive development of the Russian economy in 2011. a U-turn in the second half. The MICEX stock index suffered the steepest drop among emerging markets (-25% yoy). By year-end local bond market yields had risen by 100 b.p. amid a lack of rouble liquidity Fiscal expansion continued in 2011 on the back of high oil prices and led to stronger domestic purchasing caused by capital outflows and a budget surplus. The sovereign yield curve (OFZ) shifted up by 50-100 power. As a result, investments, which are dominated by large state infrastructure projects, grew for much b.p. and the price correction was more pronounced for bonds with a long maturity. Investor appetite for of the year. During the second half of the year this growth become more pronounced in response to both riskier assets reduced and the spread between corporate bonds and OFZs widened noticeably. The volume state and private capital expenditure programs. of primary placements on the local bond market was slightly above the 2010 figure, reaching RUB 880 billion. The bulk of the transactions came during the first three quarters of 2011 while at the end of the year In 2011, construction was a major contributor to stronger investment activity. Another driver was the some of them were of a club-deal nature. Overall, investor demand narrowed to high credit-quality and upgrade and replacement of machinery and equipment, both via the expansion of domestic production short-maturity issues. Loan growth accelerated in both the retail and corporate segments, reaching 22% and an increase in imports. Meanwhile, private investment remained under pressure due to the higher tax on average. Such strong growth along with tighter statutory requirements lowered the capital adequacy burden and uncertainty on global markets. Nonetheless, the pace of growth in total investments rose to ratio. Along with slower retail deposit growth this will hamper loan growth in 2012. This year started with 6.2% from 6.0% in 2010. The situation on the labour market also improved last year. Unemployment fell to a hike in retail deposit rates across the entire banking system which is likely to suppress banks’ margins. 6.1% from 7.2% in 2010, and a positive trend for payroll growth raised consumer confidence. Combined, these factors led to high growth rates for retail sales, which were comparable to the record levels seen in October 2008. This outstanding performance was primarily achieved by a reduction in savings and Forex Market accelerated growth in retail loans, in addition to growth in wages.
During 2011 the forex market moved in opposite directions. In 1H 2011 the rouble strengthened noticeably All that said, 85% of total GDP growth was the result of a build-up of inventories, which points to limited on the back of an improved balance of payments, following oil price rises. However, starting in August growth potential. In addition, higher growth rates for imports caused a negative contribution of foreign as symptoms of another global economic crisis emerged first in the US and then in the eurozone, capital trade in GDP growth. outflows from Russia accelerated pushing the rouble down. As a result, by early October when capital outflows became acute, the rouble had depreciated by 10%. 2012 Forecast The key reason behind yet another flight-to-quality was increased risk aversion as investors’ appetite for risky assets (including the Russian rouble) reduced dramatically. During this period, investors virtually We forecast that real GDP growth will decline to 3.2% in 2012 vs. 4.3% in 2011. ignored the still high oil prices. In the first half of the year, the Central Bank of Russia (CBR) was a net buyer of foreign currency. However, the autumn turbulence forced the regulator to become a seller in Decelerating growth will be a natural consequence of a gradual recovery in economic activity to a pre- order to support the rouble. In addition, in Q3 2011 imports recorded faster growth, which along with the crisis level, amid a lack of new stimuli and higher global economic risks. Nonetheless, stable oil prices (our bearish mood of investors resulted in stronger rouble devaluation expectations. Nonetheless, by year-end year-average forecast remains flat to the 2011 figure at USD109/bbl) will be a key positive factor for the concerns about the potential fallout from the Eurozone debt crisis had eased. Meanwhile, rouble liquidity Russian economy. on the local money market contracted and the rouble managed to recover slightly from its autumn fall. However, compared to last summer the rouble has only regained 50% of its value. The CBR has continued We believe that in 2012 economic growth will continue to rely upon consumer activity and capital with its policy of increasing exchange-rate flexibility. The regulator widened the bi-currency basket floating formation. But, we do not expect the same pace of growth as in 2011. Investments will be supported by band borders twice in 2011 (to 32.2-38.2 roubles vs. the basket). In spite of increased volatility and on expected high oil prices and fiscal expansion. However, private investment will remain under pressure due the back of surging growth in the price of Urals oil (up 40% to USD109/bbl) the rouble appreciated in to the higher tax burden and global market uncertainty. Meanwhile, increases in consumer demand will real terms in 2011: up 3.9% versus the foreign currencies of Russia’s key trading partners, by 1% to the US be restrained by rouble depreciation and slower loan growth in response to tighter funding conditions for dollar and by 1.9% to the euro. Russian banks.
In our view, economic growth remains unsustainable. Money market conditions have deteriorated, which Inflation may cause an easing in monetary policy via a reduction in key lending rates amid slower inflation in 1H 2012. We do not rule out at least one narrowing of the interest rate band (the differential between lending Annual inflation turned out to be lower than expected by the authorities and experts and hit a record low and deposit rates) and a refinancing rate cut of 25 b.p. during this period. As the year-end draws near of 6.1% compared to double-digit СPI for several years previously. The key reason behind lower price yoy inflation will begin to accelerate due to the 2011 lower base effect, which may require a subsequent growth was the good harvest in 2011 in contrast to 2010 when food prices spiked due to the drought. interest rate increase in Q4 2012.
10 11 DMITRY LEVITSKY ANTON VON MARON
1735–1822 1733–1808 An outstanding portrait painter, one of the most significant A brilliant and proficient portraitist, one of the most prominent Russian artists of the 18th century. It is often said that Levitsky’s exponents of Austrian oil painting from the classical period. ceremonial and chamber art captured an entire era of Russian Creator of a series of portraits of the Austrian emperor and history: emperors, scholars, writers, aristocrats, merchants, his family, he lived and worked in Rome for a long time, soldiers, philosophers and high-class beauties – all of and played an important role in the development of cultural the figureheads of the 18th century. The painter made an relations between the artist communities of Vienna and Rome. enormous contribution to the development of the Russian He held a number of top positions in art academies of both school of realism. He also taught a portrait painting class at the capitals, and he was director of the Roman Academy of St. Academy of Arts. Luke, where he gave lectures on the theory of painting.
Dmitry Levitsky Anton von Maron Self-portrait Self-portrait 1783 1794 Oil on canvas Oil on canvas Chelyabinsk Region Picture Gallery Art Gallery of Fesch Ajaccio Raiffeisen Bank International AG at a glance Raiffeisen Bank International AG at a glance
Raiffeisen Bank International AG remained the majority shareholder following the merger, holding approximately 78.5 per cent of the shares. The remaining 21.5 per cent of RBI’s shares are in free float.
at a glance RZB was formed in 1927 as “Genossenschaftliche Zentralbank” (GZB). Raiffeisen gained its first foothold in Central and Eastern Europe back in 1987, when it established its first subsidiary bank in Hungary. Other own subsidiaries have since been established; from 2000 onwards, Raiffeisen’s expansion in the CEE A leading bank in Central and Eastern Europe countries has mainly been achieved by acquiring existing banks, which were combined into a holding company that from 2003 until October 2010 operated under the name Raiffeisen International. Raiffeisen ZAO Raiffeisenbank is a subsidiary of Raiffeisen Bank International AG (RBI), which regards Central and International was listed on the stock exchange in April 2005 in order to finance its future growth as efficiently Eastern Europe (including Austria), as its home market. For nearly 25 years, RBI has been operating in the as possible. RBI was subsequently established in 2010 through the merger of Raiffeisen International with Central and Eastern Europe (CEE) region, where today it maintains a closely knit network of subsidiary the principal business areas of RZB. banks, leasing companies and numerous specialized financial service providers in 17 markets. As a universal bank, RBI ranks among the leading banks in the region. The powerful role played by the bank is supported by the Raiffeisen brand, which is one of the most widely recognized brands in the region. 125 years of Raiffeisen in Austria Following its strategic realignment in 2010, RBI has positioned itself as a fully integrated corporate and retail banking group in CEE. The bank not only has good access to retail and corporate customers, but also Raiffeisen’s strong roots in Austria date back more than 125 years. Raiffeisen’s first Austrian credit a comprehensive product offering. At the end of 2011 around 56,000 staff served approximately 13.8 cooperative was founded in Mühldorf, a village in Lower Austria, in 1886. Local cooperatives soon million customers in around 2,915 business outlets in CEE. started working together and, in turn, founded regional cooperatives marking the beginning of the multi- tiered structure of the Raiffeisen organization. This not only helped to strengthen their position in the market, In Austria, RBI is one of the top corporate and investment banks. It primarily serves Austrian customers but but also enabled better management and risk control. Numerous product and service cooperatives were also international as well as major multinational clients operating in CEE. Moreover, RBI is represented founded on the back of increasing specialization and market integration. In mid-2011, the Raiffeisen in the world’s financial centers and operates branches and representative offices in Asia. All in all, RBI Banking Group Austria (RBG), the country’s largest banking group, managed € 83.8 billion in Austrian employs about 59,000 staff and has total assets of approximately € 147 billion. customer deposits (excluding building society savings), of which around € 50.3 billion was held in savings deposits; with a market share of 32.2 per cent, RBG has continued to expand its role as market leader RBI operates subsidiary banks in the following CEE markets: among Austria’s banks. RBG has achieved its strong market position through healthy organic growth.
• Albania Raiffeisen Bank Sh.a. For more information please refer to www.rbinternational.com and www.rzb.at. • Belarus Priorbank, OAO • Bosnia and Herzegovina Raiffeisen Bank d.d. Bosna i Hercegovina • Bulgaria Raiffeisenbank (Bulgaria) EAD • Croatia Raiffeisenbank Austria d.d. • Czech Republic Raiffeisenbank a.s. • Hungary Raiffeisen Bank Zrt. • Kosovo Raiffeisen Bank Kosovo J.S.C. • Poland Raiffeisen Bank Polska S.A. • Romania Raiffeisen Bank S.A. • Russia ZAO Raiffeisenbank • Serbia Raiffeisen banka a.d. • Slovakia Tatra banka, a.s. • Slovenia Raiffeisen Banka d.d. • Ukraine VAT Raiffeisen Bank Aval
As the parent company of these banks, RBI’s shareholding in them is at or near to 100 per cent in most cases.
RBI’s development
RBI was established in October 2010 through the merger of Raiffeisen International with the principal business areas of Raiffeisen Zentralbank Österreich AG (RZB). RBI’s position as one of the leading banks in CEE (including Austria) was further reinforced by the merger. RBI has been listed on the Vienna stock exchange since 25 April 2005 (until 12 October 2010 as Raiffeisen International). It is represented in several leading national and international indices, including the ATX and EURO STOXX Banks. RZB
14 15 Vision and Mission Human Resources Policy
Vision and Mission Human Resources Policy
Raiffeisenbank continued its course of strengthening its position as one of the best employers in Russia in Vision 2011. According to global research conducted by two leading world consulting agencies in the sphere of human resource management — AonHewitt and RBL Group — RBI Group was included in the list of top We are the leading universal bank across Russia for all customers caring for quality -10 companies in the nomination “Best Company for Leaders”. The influence of investments into personnel development on Raiffeisenbank’s financial indicators was analyzed in this research. Furthermore, the results of the program “Talent management and leadership development” were estimated. The jury of Mission independent judges/experts selected the best companies from more than 470 participants, and Raiffeisen Bank International AG became one of the few banks which was included in the rating. • We seek long-term customer relationships • We provide a full range of high quality financial services throughout Russia. According to all RBI Group standards, the activity of ZAO Raiffeisenbank’s HR division is directed at • We co-operate closely with all members of RZB Group. increasing the qualitative component in the bank employees’ work, and at their professional development. • We achieve sustainable return on equity. • We empower our employees to be entrepreneurial and foster their development. The number of bank’s employees was stable throughout the year, except for insignificant seasonal fluctuations.
Number of employees
12 000
10 731 10 000 9 652 9 580 9 217 9 403 8 000
6 000
4 000
2 000 2 595
0
2006 2007 2008 2009 2010 2011
Source: Raiffeisenbank
Number of employees in Moscow and Regions
6 000 5 769
5 000 4 763 4 962 4 949 4 829 4 823 4 759 4 821 4 454 4 454 4 000
3 000
2 000 1 759
1 000 836
0
2006 2007 2008 2009 2010 2011
Source: Raiffeisenbank Moscow Regions
16 17 Human Resources Policy Human Resources Policy
Showing complete recovery of the labor market, the year 2011 made a record for the quantity of candidate Cameral tax inspections by the Social Security Fund of the Russian Federation were conducted in the bank responses received from different sources by the Human Resource Department of the bank’s headquarters. during 2011, by which results the Social Security Fund reimbursed expenditures in excess paid insurance A total of 31 500 candidates applied to headquarters, and about 5% of them received offers and took for a total amount more than RUR 38 million to the bank. positions opened in the bank. In total, more than 1 600 new employees were accepted for employment in the headquarters and Moscow branches. Furthermore, tax inspections by the Social Security Fund on subject to compliance with the current legislation regarding payments of social security benefits (maternal benefits and temporary disability It’s noteworthy that an internal rotation program was benefits), correctness and timeliness of payment by the employer of insurance security payments to the SSF Sources of resume reception further developed in 2011. About 100 employees were carried out in 2011. Eight branches and operational offices were inspected. No infringements by took new positions in Moscow alone under this the bank were found during the inspections. Moreover, inspections by the Pension Fund on the correctness program. of tax base formation and payment of insurance security payments to the Pension Fund and regarding Resumes presented by agencies observance of individual personified accounting were conducted. Inspections were carried out in 4 Found by 17% HR division References from employees Great attention was paid to improving the quality branches and operational offices. No infringements by the bank were found. 29% 5% Internal candidates of recruitment and appraisal of candidates. For 2% this reason HR business partners for recruitment, in The federal pilot project on modernization of the social insurance system was started in Russia in July, active interaction with the Training and Development 2011. The primary goal of the project is allocation and payment of benefits directly to local branches Center, elaborated and introduced an internal of the Social Security Fund of the Russian Federation. The Povolzhskiy Branch of the Volzhskiy regional training entitled “Recruitment. Effective interview” as center became the first participant of the given project. In this branch the employer pays insurance security well as an interactive course on how o work with the payments in full, without reducing them by the sum of benefits. Thus, benefits are calculated as before by recruitment data base “Recruitment DB” for internal the employer, and the sums which are necessary to pay are subject to notification to the Social Security users. Fund for further transfer of funds to personal accounts of employees. The given project was launched successfully, and work with the Social Security Fund was implemented. All liabilities are carried out in The year 2011 became one of further business time and in full by the bank. During the period of 2012-2013 years the list of territories where the given growth for the bank’s retail segment, which required project is launched will be extended until the entire country is covered with the new system of social security hiring a considerable quantity of young specialists. insurance. Candidates’ responses 37% In total, over 400 new employees were hired in
Source: Raiffeisenbank 2011 in retail business subdivisions, and about 100 The project of regional network transformation was continued in 2011.Due to centralization and transfer of them passed our traditional internship program. of the basic functions of the accounting department to the regional centers, the position of the chief Special attention was given to development of direct accountant was abolished in cases when the branch was transformed into an operational office. This channels of sales. The program for new employee training was changed in 2011. A total of more than 400 position remained only in main branches of the regional centers. new employees took part in this training in 2011. The project of System Evaluation of Employee’s Activity (assessment) of retail front-office employees was Special attention was paid to the developing of retail segment employees. A number of special projects successfully implemented in all regional centers. The project started in September 2010, and the first were implemented to this aim. About 400 branch employees took part in annual personnel certification. regional center which passed this assessment was the North West regional center. Another five regional The project named Branch Manager School was successfully completed as a result of which 5 participants centers joined the project in 2011, and two cycles of assessments were carried out. were appointed to the positions of directors of Moscow branches. The year 2011 was also one for launching a project on personnel reserve(successors pool) for the most critical positions in subdivisions of The participants of the performance management process were significantly expanded. New priorities for retail business. qualitative goals were established, including quality of service to internal and external clients (projects, initiatives), career planning and personnel development, optimization processes with use of technologies, Optimization of subdivisions focused on design and productivity connected with organizational regulation and improvement of quality and management efficiency projects. and efficiency management was successfully carried out in 2011. The essence of the given project consisted in the analysis of current activity of the given subdivisions which structurally were in different The possibility of internal personnel rotation was supported throughout the bank in 2011. A page was business segments and sometimes duplicated each others’ functions. Two strategically important divisions created on the bank’s internal website where the vacancies of all regional centers are displayed. Any have been created as a result of the performed analysis: Project, Portfolio and Demand Management employee of the bank considering the possibility of moving to another region can come to this page and Division and Organization, Process and Efficiency Management. see all available vacancies. The program of internal personnel rotation provides the opportunity for both vertical and horizontal professional growth. Thanks to this program we keep the best experts and give them In addition, 2011 was devoted to the problem of decreasing staff turnover in those bank’s subdivisions new possibilities for development. (such as the Call Center, Retail Lending) in which the given indicator was high enough in comparison with common banking. The Human Resources division carried out large-scale work at analyzing the principal Our bank continues to support employees at achieving good work results by means of various tools of causes of employee dismissal on the basis of data from questionnaires and group trainings for the purpose training and development. The possibility of choosing the format of training (in-class or e-learning, external of revealing employees’ satisfaction level. On the basis of the received data together with the heads of or internal) allows for maximum employee flexibility. business subdivisions, a series of measures has been developed making it possible to lower the quantity of employees leaving the company on their own accord. The steps carried out have raised the overall The advancement of the programs “Competency corporate model” and “Architecture of leadership” were performance of the given subdivisions and have shown positive change. one of the basic priorities in development of management skills and competencies in 2011. As a result the model has been integrated into the majority of the bank’s HR processes, and has become the base for the Assessment Centers. Individual development plans are worked out on the base of this model, and
18 19 Human Resources Policy Human Resources Policy
the assessment of various levels of leaders and profiling of positions with unique functions takes place. The regional center. The given team-building program includes a set of dynamic exercises directed at building personnel reserve (successors pool) for regional retail generated in December, 2011, became a main stronger teams. The particularity of the program is that it gives one general goal, the achievement of which achievement in talent management process. The candidates for key managerial positions underwent is carried out through exercises testing basic competencies. a competitive procedure, and a qualitative pool of successors was formed as a result. The year 2011 was very productive in the field of compensation and benefits. Special attention was paid The 4-modules program “Compass for a new reality” of the Moscow School of Management SKOLKOVO to an audit of fringe benefits. As a result, a number of demunded additions in the benefits package of the was finished in autumn 2011 for the first group of participants, and was begun for the second. The bank’s employees were made. The beneficial lending programs for the bank’s employees depending on “Compass” is a 10-day modular program for the company’s leaders. It forms a new generation of top their level of efficiency and length of servive, which has been functioning successfully since March 2011, managers who are armed with up to date management tools and who look at business reality in a new was developed. It proved itself as an extremely effective instrument of motivation, and also for increasing light. employee loyalty, and as a stimulus retaining the best employees.
When working out new internal trainings in the bank, focus is placed on programs of leadership We strive for the bank’s personnel to consist of effective and loyal employees who are motivated for long- development. A new unusual training format - business simulation - has been implemented. The simulation term work in the company in particular, therefore some benefits are focused on increasing our employees’ format combines the practice and the theory of organization management, gives the chance to predict well-being in long-term prospect, and are calculated based on long-term granting, such as, for example, company development for some years in advance, traces the dynamics of financial indicators, and our corporate pension plan. Starting from 2011, the sum of the maximum contribution made by the bank estimates the consequences of this or that decision made. has been raised by 25% (upto 5% of an employee’s salary).
The list of personal efficiency trainings for all employees has also been replenished with new programs. A tender for rendering services of voluntary health insurance in which the largest and most well-known Special attention is deserved for the “Project Management” training. The training program fully takes into insurance companies in Russia took part was organized and held in March, 2011. The continuation account those goals which are to be solved by our project teams. The training will allow participants both of partner relations with the company Rosgosstrakh, which has allowed our employees to keep the full to get acquainted with the standards of project management of the Project Management Institute, and to spectrum of the usual medical institutions and a high level of health services, was achieved as a result of introduce new practical tools of project activities. the given tender.
In total the program of the Training and Development Center has more than 50 various internal trainings The program of preferential mobile telephone communications offered by MTS was added to the corporate and seminars for all employees of the bank at present. Programs are carried out in regional subdivisions of package of social benefits for the bank’s employees. The given services have been used by more than the bank that give equal possibilities for training and development to all employees. 4 000 subscribers already, among them the bank’s employees and their relatives.
The basic changes in distant-learning in 2011 concerned the corporate portal of the Training and Preferential tariffs for Raiffeisen CONNECT Internet bank are provided to company employees. Development Center: The appearance and technical parameters were changed, giving new possibilities to portal visitors, while department heads got the chance to participate more actively in employee training. Under the unstable economic situation, incentive schemes continue to be developed taking into account the current conditions and considering the influence of international practice, which has become indicative Qualitative growth allowed the bank to win some prizes on the Russian market in the field of corporate for Russia. The main change which may be noted as a trend for the whole world financial community is the training, such as the prize nomination “For the best e-learning solution in the corporate sector”, and several use of key risk indicators among the basic indices of a company’s efficiency, besides income and profit. nominations in the competition organized by WebSoft for the best production of e-learning courses. The employees of the compensations & benefits department make monthly calculations of the bonuses rewarded, and also develop instruments allowing employees to predict the sum of bonus, and carry out The DSA Academy was opened in 2011. This is a joint project of the Human Resources Divison and consulting and explanatory work for principles of action of incentive schemes. Furthermore, analytical Delivery Channels Division. A scheme for career and professional growth of direct sales group employees materials are regularly prepared for department heads, making it possible to trace the efficiency of action was developed as part of this project. Under this project an individual set of training actions is created for of the given systems, and supervise deviations from target indicators which need adjustments both in the employees of each level. A program of managerial skills development was started for supervisors in the sums of rewards and establish planned indicator values. given group. The department of compensation and benefits traces the situation on labor market on a constant basis, The year 2011 was marked by changes in the training program for managers on work with clients of the taking part in Reward Policy surveys. A balanced approach to sharp fluctuations in setting employee salary “Premium” segment: a new “Financial album” with a “portfolio” approach at its core was introduced, ranges has proved to be effective, considering the change from somewhat of a market revival stage to which will allow making financial planning for clients more integrated, and advance its quality. a predicted downturn. Nevertheless, the decision to carry out two planned review of salaries towards an increase taking into account the differentiated approach was accepted, wherein the size of the allocated The new corporate project “Workshops” was started in the summer of 2011. The project’s main objectives budget was defined as a comparable value on volume with sums necessary for a concrete structural are improvement of internal communications among colleagues, and to give the possibility to communicate subdivision for correcting salary sizes concerning market values. outside of the daily working environment. The bank’s leading top managers shared their success stories in “open collar” meetings . The salary review matrix is successfully used for front-office employees in the bank’s additional branches. This tool makes it possible to objectively transfer the results of the System Evaluation of Employee’s Activity In continuation of the development of corporate creative projects, the first “Business simulation” game – the (assessment) into corresponding levels of employee salaries. This is a clear, transparent, convenient and business game “Bank market” – was issued. More than 100 new and skilled employees plunged into the effective tool of human resource management which, on the one hand, guarantees a certain salary at the nuances of the banking business, while colleagues from different subdivisions tested themselves in various market level at the minimum set of knowledge and skills, and also gives possibilities for highly professional roles and posts, forming in a game format an effective strategy of development for their imaginary banks. and effective employees to earn more. Besides the front-office employees of additional branches, the Special attention is deserved by the project “Raiffeisen-Land”, developed by employees of the North West employees working in the Premium segment and DSA’s supervisors have also joined the assessment.
20 21 VASILY PEROV FERDINAND WALDMULLER
1833–1882 1793–1865 A Russian painter, founder and member of the “Itinerants” One of the most famous Austrian painters of the first half of the community, he was one of the most popular country-wide 20th century, a prominent exponent of the artistic style, he is favourites among Russian artists. Perov painted a large known as the “Viennese Biedermeier.” Waldmuller’s paintings number of remarkable genre paintings: humorous ones (The are realistic and somewhat sentimental, which is quite typical for Bird Cather, The Hunters at Rest), strongly satirical ones paintings of this style. The artist is mostly known for depicting scenes (A Governess Arriving at a Merchant’s House, Tea Party at from peasant life. His genre paintings are realistic, full of critical Mytishchi), and deeply tragic ones (Seeing off the Dead Man, observations, and at the same time filled with a large sense of Troika). Depicting the lives of ordinary people, the artist gazes deep respect for ordinary people. In his theoretical essays, which into their faces with close attention and sincerely sympathizes had great influence on Austrian artists of that time, Waldmuller with their joys and sorrows. wrote: “The mirror of truth – nature – is eternally clear and is an inexhaustible source of creativity.”
Vasily Perov Ferdinand Waldmüller Self-portrait Self-portrait 1851 1828 Oil on canvas Oil on canvas Kiev National Museum of Russian Art Belvedere Gallery Kiev Vienna Compliance Control Anti-Money Laundering Policy Compliance ControlAnti-Money Laundering Policy
Compliance Control The main corporate document regulating the bank’s anti-money laundering activities is the Rules of Internal Control for Preventing Money Laundering and Financing of Terrorism.
Anti-Money Laundering Policy These rules are binding upon each bank official directly involved in operating processes.
Compliance control and anti- money laundering, which are intended to enhance the bank’s business Regular anti-money laundering trainings, timely updated corporate procedures complying with legal and reputation, strengthen the confidence of clients and counteragents in the bank, ensure strict compliance regulatory requirements, and the use of modern software ensure adequate control in this field. with the requirements of the Russian legislation and the Bank of Russia, are some of the most important bank’s activities. The ancient Romans said that «money has no smell». Such words are not acceptable for our bank. We put an emphasis on measures aimed at preventing collaboration with any shadowy clients and contractors. The word “compliance” is rather new in Russia, and may be a bit unusual to many people. This term implies the observance of laws, rules and ethic standards that govern the bank’s operations. These measures are also aimed at preventing any bank’s involvement in suspicious transactions.
This definition is very broad, so it needs further specification and formalization in order to be used in practice.
RZB Group Code of Conduct is the main guiding document which defines the bank’s basic values and sets such ethical business principles as customer focus, professionalism, quality, mutual respect, integrity, etc. It is available on our website.
Compliance with the Code of Conduct is a mandatory requirement for each and every employee.
All the bank’s officials shall guarantee that their private interests do not collide with their duties, the bank’s objectives, and clients’ interests.
Following the accepted customer service standards, the bank seeks to exceed the expectations of its clients by providing the best service possible. When advising a customer, the bank gives fair and just recommendations exclusively in the interests of the client, keeping him fully informed of possible risks.
False or confusing consultations are totally unacceptable to us.
The bank has developed and implemented a package of measures to prevent the misuse of inside information and market manipulation. We take an approach which allows us to be free of any taint of corruption.
24 25 IVAN KRAMSKOY FRIEDRICH VON AMERLING
1837–1887 1803–1887 An outstanding Russian artist, an art critic, One of the most prominent Austrian artists of the 19th century. and an art theorist, Kramskoy was one of the During his long life, he painted more than a thousand organisers and ideologists of the most significant canvasses, and portraits comprise the largest part of his artistic creative community of Russian painters – the legacy. Friedrich von Amerling was referred to as Vienna’s Association of Wandering Art Exhibitions, better favourite portrait painter: he painted ceremonial portraits of known as “The Itinerants.” As a recognised high aristocrats, lyrically-emotional female characters, and expert of genre and historical painting, the extraordinarily warm family portraits. In addition to his mastery painter achieved the peak of his creativity of painting techniques, Amerling stands out because of his working in the genre of portraits. In order to clever interpretation of his characters’ personalities: even on continue the humanistic traditions of the Russian the luxurious formal portrait of Francis II, the last emperor of school of painting, Kramskoy created a gallery the Holy Roman Empire, the first thing we see is not a king, but full of deep psychological images, ranging from a human being. simple peasants to members of the royal family.
Ivan Kramskoy Friedrich von Amerling Self-portrait Self-portrait 1867 1826 Oil on canvas Oil on canvas The Tretyakov State Gallery Residence Gallery Moscow Salzburg Treasury Treasury
Treasury a confident position. The bank is present in various councils of OAO MICEX-RTS, and takes part in activity of committees on working out new exchange products, as well as being in the list of the largest exchange operators. Being one of the major players in Russian financial market, ZAO Raiffeisenbank participates in Financial Market Operations regular meetings with Central Bank’s officials. Raiffeisenbank pays much attention to developing new technologies. In 2011 bank made a big step The first half of 2011 proved favourable for the markets: economic recovery in United States, growing towards the introduction of automatical calculations of quotes and delivering them to inhouse departments corporate revenues and low interest rates supported consistently high demand for commodities, which had and external consumers. The bank has started implementing an ambitious project for creating a remote a positive effect on the macroeconomic situation in Russia. service for Treasury products for corporate and retail clients. An enormous amount of work has been carried out in directing development of selling Treasury products to corporate clients. The bank stays A stronger ruble and rally in the corporate bond market enabled the bank to show considerable growth in one of the leading operators in derivatives market with wide range of interest risk hedging products for profits from foreign exchange trading and securities transactions. corporate clients in raw. Raiffeisenbank is one of the leading participants on the currency and monetary market and this market-maker position helps the bank in its own bidding, and also gives the bank the However, in the second half of the year escalating sovereign debt problems in a number of eurozone states chance to improve the quality of client servicing, providing best market prices. coupled with a downgrade in credit ratings for the United States and a number of European countries resulted in a large selloff and saw investors flock to safe havens such as the USD and gold. Despite a considerable slowdown in economic growth in China and stagnation in Europe, oil prices remained high Ratings due to rising political tension in the Middle East. According to the international rating agency Fitch Ratings: However, even high oil prices could not prevent the Russian market from retreating. The decline was due principally to internal factors: political instability prior to the elections and a growing protest mood • the long-term issuer default rating (IDR) in foreign and national currency is BBB+, and the among the population led to a significant capital outflow, which at year end exceeded USD 80 billion. outlook — «positive»; This outflow triggered a 20% decline in the ruble, a 150-200 bp rise in ruble interest rates and a severe • the short-term IDR in foreign currency is F2; liquidity shortage. The Ministry of Finance and the Central Bank were quick to coordinate their response, • the support rating is 2; and when the demand for liquidity was at its peak, they infused a total of more than RUR 2 trillion into the • the individual rating is C/D; banking system to prevent a large-scale financial crisis. • the viability rating is bb+ ; • the national long-term is AAA(rus), the outlook — «stable». In this environment the bank focused on mitigating risk in a highly volatile market, and consequently took a more conservative approach to speculative positions on the currency market. A well-balanced approach Standard & Poor’s has given the bank: to interest rate hedging of both the bank’s book and the securities portfolio allowed the bank to end the year with positive results and to retain earnings. • a long-term rating in foreign and national currency of BBB, the outlook — «stable»; • a short-term rating in foreign and national currency of A-3; Under the conditions of uncertainty and growth in risks observed in 2011, efficient liquidity control became • a national-scale rating of ruAAA. one of the bank’s basic priorities. The bank made diversification of funding sources throughout the year, as a result of which the share of client deposits in bank liabilities increased, and the share of means received Moody’s Interfax Rating Agency has given the bank a long-term national credit rating of Aaa.ru. from the parent bank decreased. Growth of client liabilities occurred in both the corporate and retail segments. The structure of passives improved simultaneously with this growth. In particular, maturity of Moody’s Investors Service has given Raiffeisenbank the following ratings: corporate deposits increased significantly. • Baa3 for long-term (the outlook — «positive»); Throughout the year the share of liquid assets in total assets of the bank didn’t fall below 25%. Thus the • Prime-3 — for short-term ratings of deposits in foreign and national currency; bank constantly supported the liquidity cushion necessary for protection against possible adverse changes • a financial-stability rating of D+ (the outlook — «stable»). in the macroeconomic environment. The procedures of short-term liquidity management have been optimized, allowing the bank to feel more confident under conditions of a lack of liquidity on the home market, and also to significantly increase profit on this activity. Along with liquidity cushion maintenance, the bank continued to develop its business in 2011. Growth of credit portfolio in both the corporate and retail segments was observed. The coordinated growth of client assets and liabilities promoted the bank’s balanced development. As of the end of December, 2011 the proportion of credits to deposits equaled 94.5%. Thus in 2011 liquidity cushion maintenance and diversification of funding sources were organically combined with business development.
Raiffeisenbank is an active participant in creation of currency and monetary markets indicators. The bank was one of the originators of the creation of MosPrime -the basic indicator of the Russian Money Market, and the indicator NFEA SWAP, reflecting the level of long term interest rates. The new indicator Ruonia has started to operate through active cooperation with the National Foreign Exchange Association. The presence of this indicator will give a new spin to development of the derivatives market, where Raiffeisenbank has
28 29 Treasury Treasury
Financial Institutions order, investment activity and inter-regional communications of the Republic of Tatarstan, and RTS-tender LLC. Russian banks The bank has continued to develop interaction with state and municipal organizations, participating in In 2011 Raiffeisenbank continued extending the range of its counterparts on the Russian foreign exchange implementation of special target programs, including in the sphere of housing and communal services, and money market and improving the contractual framework. The bank developed and introduced its own transport and publishing. In the end of 2011 Raiffeisenbank began cooperation with Nordic Environment general agreement on forward transactions on financial markets on the basis of standard documentation Finance Corporation (NEFCO) on crediting power saving projects in Russian cities within the limits of the for forward transactions on financial markets dated year 2009. program “Eco-efficiency”.
The bank originated a number of syndicated loans and bond issues for Absolute Bank (CJSC), JSC Agency In 2011 the bank made active placing of official body’s deposits, and confirmed its status as an authorized for Housing Mortgage Crediting, B&N Bank (JSC), Open joint-stock company VEB-LEASING, DeltaCredit credit organization for attracting temporarily available assets of the federal budget, the budgets of St. Bank CJSC, Eurasian Development Bank, ING BANK (EURASIA) ZAO (Closed Joint-Stock Company), KB Petersburg, the Krasnoyarsk Region, the Komi Republic, the Vologda and Kirov areas, and also the state LOKO-BANK (Joint-Stock Company), Credit Bank of Moscow (OAO), JSC Russian Standard Bank and corporations Fund of Assistance to Housing and Communal Services Reform, ROSNANO JSC and SC Home Credit & Finance Bank LLC. Olimpstroy. Raiffeisenbank completely corresponds to the requirements made of a financial organization in which temporarily free budgetary funds can be placed. Inclusion in the list of authorized banks shows Foreign Banks and Non-Bank Financial Institutions the high degree of Raiffeisenbank’s reliability.
In 2011 the demand for settlement in Russian Rubles from the side of foreign banks increased significantly. Besides rendering services to government organizations and state corporations, the bank has continued This fact, as well as development of cash management products for non-resident banks, allowed work with “small” enterprises of the Public sector – noncommercial organizations and budgetary Raiffeisenbank to attract a number of new clients. In order to develop it in future, the bank is working out establishments. Without feeling the need for credit resources, the given type of clients are interested in new services, which are aimed at simplifying settlement in Russian Rubles for non-resident banks. reception of high-quality services in settlement-cash services and salary projects with bank cards.
The bank cooperated efficiently with foreign financial institutions in the field of trade finance business, including export and import letters of credit (confirmation and financing), guarantees (issuance and acceptance). It is worthwhile mentioning that foreign counterparts increased tenors of their documentary limits in favor of Raiffeisenbank up to five years.
In the second half of 2011 the interest in the deposit placement from the side of non-banking financial institutions, especially insurance and asset management companies, increased considerably. In addition, the demand for cash management products and services allowed Raiffeisenbank to enlarge the volume of attracted funds.
Public Sector Department
ZAO Raiffeisenbank considers cooperation with public authorities and official bodies as one of its priority business directions. In 2011 the bank confirmed its strong positions on the highly competitive market of bank services rendered to state organizations.
The low level of credit risks inherent in the Public segment has caused constant interest among credit organizations to provide credit to public-law entities, the entry of new players into the market, and a consecutive decrease in crediting rates.
In 2011 Raiffeisenbank took an active part in auctions for the right of granting credits to regional and local authorities. Despite the increased competition, the bank generated a well-diversified and profitable portfolio.
When carrying out actions for settlement of problem debts in 2011, the return of 100% of portfolio problem credits (over RUR 200 million) was done. The absence of problem debts confirms the right credit strategy for state sector organizations chosen by the bank.
In connection with transition to electronic auctions system in sphere of state and municipal orders, the bank has received accreditation on five electronic trading platforms — CJSC Sberbank-Automated System for Trading, JSC United Electronic Market Place , MICEX-Information technology LLC, GUP Agency on state
30 31 Treasury Treasury
Corporate Finance and Investment Banking The following landmark transactions in the equity capital market and in the M&A market executed by the Group in Russia in 2011 should be highlighted: Raiffeisenbank continued its successful work in the field of corporate finance and investment banking in 2011. • successful initial public offering of JSC FosAgro, the largest producer of phosphorus-containing fertilizers in Europe, for the amount of USD 565 million (option-adjusted); Corporate bonds • private placement of JSC GV Gold, one of the largest gold mining companies in Russia, in favor of EBRD; In 2011 Raiffeisenbank acted as the lead arranger of 28 corporate bond issuances for a total notional • acquisition by JSC EMAlliance, one of the largest Russian power engineering companies, of 100% size of RUR 144 billion. shares of the company AE& Đuro Đaković, the leading European player in the boiler and heat- exchange equipment market. Among the noticeable deals of this year are the following: Syndicated Loans • OJSC Tele2 – Saint-Petersburg record bond placement in terms of demand (Tele2 Group, RUR 13 billion); The syndicated loans market continued its dynamic development in 2011. Overall growth in volume • FSUE Russian Post debut bond issue (RUR 7 billion); and number of transactions was recorded in spite of a slight decline in the growth rate and certain price • International financial organization Eurasian Development Bank bond issue program (including fluctuations. As in the year 2010, club deals comprised a large part of deals in 2011 while secured secondary placement) (totaling RUR 10 billion); lending and, specifically, pre-export financing (PXF) structures prevailed. A growing interest in syndicated • ING BANK (EURASIA) ZAO bond placement with floating interest rate (RUR 5 billion). loans from Russian and Japanese banks was witnessed, whereas smaller European investors retreated from the market due to rising funding costs and debt crisis in Europe. Most of the syndicated facilities and Group Raiffeisenbank International also successfully acted as the sole lead arranger of the Credit Bank of club loans in 2011 were US dollar loans for natural resources companies (mainly oil and gas) and banks. Moscow debut eurobond USD 200 million issue, and has also took participation as a co-arranger in the OJSC VEB-LEASING and JSC Koks Eurobond issues. Raiffeisenbank retained its leadership positions in the syndicated loans market in 2011 by leading and co-arranging loans for top and second tier Russian companies in retail, oil and gas, energy, chemicals, The results of the Bank’s work have once again been highly appreciated both by issuers and participants metals and mining, medical services, food industry and banking sectors. Total volume of deals closed in of the corporate bond market. 2011 accounted for more than USD 8.7 billion. Funds were routed for trade and working capital financing, investments and modernisation purposes. According to a Cbonds’s news agency poll, the experience and professionalism of the Bank’s employees have been noted in the following nominations in 2011: Landmark transactions arranged by Raiffeisenbank in 2011 include:
• Best DCM Team in Russian market (second place); • January 2011 — a 4-year USD 180 million club deal for Siberian Anthracite, one of the largest • Best bond market sales (third place). manufacturers of high quality anthracite; • February 2011 — a USD 300 million pre-export finance club loan for JSC Acron, a producer of Financial derivatives fertilizers, originally solely underwritten by Raiffeisenbank in July 2010, and increased by USD 125 million in 2011 with significant oversubscription from the market; The Bank expanded its product line offered to corporate clients with currency and interest rate risk hedging • July 2011 — a 5-year USD 1.3 billion syndicated pre-export finance deal for ОJSC MCC instruments. At the moment the Bank offers currency and interest rate options, interest rate and cross EuroChem, Russia’s largest producer of mineral fertilizers; currency swaps, deliverable and non-deliverable forwards. • August 2011 — a 5-year USD 325 million syndicated loan for oil company Itera. Raiffeisenbank also acted as bookrunner of the transaction; The risk hedging strategies offered by the Bank are always developed individually. Thus each client has • August 2011 — a 1-year USD 60 million and RUR 4.04 billion dual currency syndicated loan for the opportunity to conclude transactions basing on the client’s own estimation of necessary hedging depth Home Credit and Finance Bank with 1-year extension option. Raiffeisenbank acted as arranger, and horizon. bookrunner and facility agent; • December 2011 — a 4-year USD 100 million benchmark cross-border syndicated loan for Milkiland Equity capital market operations and M&A consultancy Group, one of the leading manufacturers of dairy products in Russia and Ukraine.
Raiffeisenbank Group achieved essential success in accordance with the approved strategy on development According to Cbonds, Raiffeisen Bank International Group was among top 3 arrangers in the syndicated of investment banking activity in the equity capital market and M&A in 2011. loans market in Russia by number of deals and ranked 3rd among other arrangers by volume of syndicated lending in Russian rubles in 2011. The Group extended analytical coverage, strengthtened the team of investment bankers and expanded the network of sales and distribution capacity in 2011.
In addition to the already-existing sales desks in Vienna, Moscow, London and Singapore, an expert sales team was established in New York last year as a part of the opening of a new office specializing in capital market operations.
32 33 Treasury Treasury
Syndicated Loans Corporate Bonds
Milkiland Binbank Slavneft Itera AHML Russian standard MCB Absolut Bank Syndicated Loan Syndicated Loan Syndicated Loan Syndicated Loan Bond Issue Bond Issue Eurobond issue Bond Issue USD 100 000 000 USD 50 000 000 USD 650 000 000 USD 325 000 000 14 000 000 000 RUB 5 000 000 000 RUB USD 200 000 000 1 800 000 000 RUB MLA, Bookrunner MLA MLA MLA, Bookrunner Arranger Arranger Arranger Arranger December 2011 September 2011 August 2011 August 2011 December 2011 November 2011 August 2011 August 2011
HCFB GEMC EuroChem JFC ING Bank CB DeltaCred BKE Russian Copper Syndicated Loan Syndicated Loan Syndicated Loan Syndicated Loan Bond Issue Bond Issue Bond issue program Company USD 60 000 000 and USD 70 000 000 USD 1 300 000 000 USD 88 000 000 and 5 000 000 000 RUB 5 000 000 000 RUB 5 000 000 000 RUB Bond Issue RUB 4 040 000 000 MLA, Bookrunner, MLA, Bookrunner RUB 1 500 000 000 Arranger Arranger Arranger 5 000 000 000 RUB MLA, Bookrunner, Agent Coordinator, Agent July 2011 MLA, Coordinator July 2011 June 2011 June 2011 Arranger August 2011 July 2011 March 2011 June 2011
Acron MDM Bank Siberian Anthracite СДС Уголь KOKS KOKS Тele2 OC Alliance Syndicated Loan Syndicated Loan Syndicated Loan Syndicated Loan Eurobond Issue Bond Issue Bond issue program Bond Issue program USD 300 000 000 and USD 300 000 000 USD 180 000 000 USD 150 000 000 and USD 350 000 000 5 000 000 000 13 000 000 000 RUB 10 000 000 000 RUB USD 125 000 000 MLA, Bookrunner MLA USD 50 000 000 Co-Arranger Arranger Arranger Arranger MLA, Sole Underwriter February 2011 January 2011 Lead Arranger June 2011 June 2011 June 2011 June 2011 February 2011 January, April 2011
VEB-Leasing HCFB RusHydro VEB-Leasing Eurobond issue Bond issue program Bond issue program Bond issue program USD 400 000 000 7 000 000 000 RUB 15 000 000 000 RUB 15 000 000 000 RUB Со-Arranger Arranger Arranger Arranger May 2011 April 2011 April 2011 April 2011
Russian Post OC Alliance Loko-Bank Mortgage Agent AHML Bond Issue Bond Issue program Bond Issue Bond Issue 7 000 000 000 RUB 5 000 000 000 RUB 2 500 000 000 RUB 8 000 000 000 RUB Arranger Arranger Arranger Arranger March 2011 February 2011 February 2011 February 2011
MCB EDB Bond Issue Bond Issue 3 000 000 000 RUB 5 000 000 000 RUB Arranger Arranger February 2011 February 2011
34 35 Treasury Treasury
Custody Services A new product - administration of unit investment funds which assets consist of foreign securities – was launched in 2011. As a result five new unit investment funds have been taken under administration of RBRU In 2011 Raiffeisenbank custody was awarded the “Top Rated” status as a provider of custody services in specialized depositary and three of them include foreign securities. the Russian security market on the basis of a non-resident customer’s poll for the fourth time. Electronic Data Interchange between the Raiffeisenbank specialized depositary, management companies, The poll was conducted by the most authoritative magazine in the global custody industry Global agents of unit investment funds` distribution, exchange and redemption and the Russian securities Custodian, and included 70 questions from various areas of the custody business. market regulator Federal Service for Financial Markets as well as further software upgrade has allowed Raiffeisenbank specialized depositary to handle the large volume of operations and fulfil control in In 2011 Raiffeisenbank custody organized several escrow transactions with shares for major corporate accordance with the Russian legislation. clients of the bank. Long-term experience of closure the escrow deals allowed the bank to offer each client the tailor made decision in compliance with the requirements of Russian currency control legislation. Private Banking The Net Asset Value (NAV) of unit investment funds under administration of Raiffeisenbank specialized depositary continued to increase in 2011. The business-direction of Private Banking, working under the brand of Friedrich Wilhelm Raiffeisen (FWR), continued in 2011 to develop actively within the framework of the strategy targeted in 2010 for a qualitative development of products and services offering to wealthy clients of the bank.
NAV under administration of RBRU specialized depositary As a result of the implemented changes, Private Banking of Raiffeisenbank is now an integrated platform for financial solutions in Russia and abroad, including a wide range of banking, investment products and
RUR million additional services based on opportunities of the RBI Group and its partners available through the “one 10 000 stop shop” to owners of private capital in an amount starting from EUR 500,000.
8 000 Among the numerous steps taken in 2011 to provide benefits of Private Banking listed above, it is reasonable to mention: 6 000
4 000 • expansion and renovation of classic banking product line: • supplement of classical banking offer for wealthy clients with special conditions for deposits and FX 2 000 operations, as well as with documentary operations through letters of credit and bank guarantees;
0 • improving conditions for cash management services and safety deposit box rental; • launch of the first ultra premium MasterCard World Elite card on the market and MasterCard World 2008 2009 2010 2011 Black Edition card; Source: Raiffeisenbank • optimization of credit card offer through the possibility to open credit cards in three currencies with a credit limit of up to RUR 2.5 million, and at the best Bank’s interest rate; • development of capability for structuring individual credit solutions; Quantity of operations per quarter made by the specialized depositary in the register of share investment funds • implementation of distance account management solution which has no analogues to date in the market, allowing clients to manage accounts remotely via an account manager;
Quantity of operations per quarter • development of investment consulting. 35 000 The year 2011 proved to be extremely volatile and sometimes unpredictable in terms of financial markets 30 000 movements, which could not but affect the performance of the investment portfolios of wealthy clients of
25 000 Raiffeisenbank, especially those who took a rather aggressive position in their investments in the first half of the year. 20 000 In response to the market conditions, Raiffeisenbank was able to quickly develop and offer its wealthy 15 000 clients a whole product line that helped to ensure full protection of initially invested capital. With the help of
10 0000 the Private Banking team’s investment expertise and its timely and well-thought actions, the least successful investments of wealthy clients were restructured, resulting in the opportunity for some of the investors to 5 000 recover their financial losses by the end of the year and place their funds in more conservative, but no less promising in terms of potential profitability, financial instruments. 0
2008 2009 2010 2011 In a practical context, these actions reflected not only in a minimal outflow of investments of wealthy Source: Raiffeisenbank customers of Raiffeisenbank in the second half of 2011, but also in a unique increase (within Raiffeisenbank International Group, and within the broader market of Private Banking) in investment portfolio volumes due to the so-called “new” money inflow.
36 37 Treasury Treasury
This fact indicates not only the highly competitive power of FWR products and the great expertise of the Today our competitive advantages are: Bank’s investment team, but also, which is especially important in the field of Private Banking, provides evidence of a unique approach to clients, a willingness to find individual solutions in each case and be • perfect daily banking service, adopted to the specific confidentiality, flexibility and speed a Bank whose customers trust it not only in good times, but in bad times as well. requirements of wealthy clients and their families; • a highly professional team of financial advisers, account managers and assistants with a balanced approach to clients’ needs and expectations; Implementation of the Advent portfolio • unique expertise of investment management with an emphasis on a balanced capital protection products and capabilities in individual structuring of global and local solutions; management system • special conditions and offers in classic banking products: deposits, FX, premium credit and debit cards; Continuing the development of investment services as our core specialization, the bank decided in 2011 • individual credit solutions and documentary instruments (bank guarantees, letters of credit); to implement an industrial portfolio management system as the technology platform of this business line. • tax and legal consulting, real estate advisory in partnership with the leading market experts; Guided by the leading players in the world market of investment management and anticipating the growth • round the clock support of a dedicated call center which operates according to the specific Private in potential requests from private investors, after thorough analysis of available options the software system Banking’s standard; of Advent Software was chosen, the American company with client base of more than 3,000 companies • a program of closed intellectual and cultural activities for clients, partners of Private Banking, and operating in more than 60 countries. their friends.
Implementation of the system in 2012 will allow the bank to provide its customers with service corresponding to the highest international standards.
Development of a non-financial relationship and effective bank’s communication with clients
Private Banking held a series of intellectual and entertainment events for its existing and potential customers, including support of the opening of the Chekhov International Theatre Festival, “debate clubs” with Vladimir Pozner, Mikhail Zhvanetsy and Sergei Guriev, and a number of partnership activities in the fields of fashion and art.
38 39 KARL BRYULLOV HANS MAKART
1799–1852 1840–1884 The most prominent representative of Russian academism An Austrian painter, academic, creator of allegorical paintings in the first half of the 19th century. All the iconic features about historical and mythological stories, fashionable of this type of art can be found in Bryullov’s paintings: portraitist. Makart’s paintings are characterized by their fluid historical, mythological, metaphoric, and multi-figure forms and brilliant colours that made him famous far beyond themes. Following the canons of academism and painting Austria. In 1870-80 Makart opened a huge workshop to techniques, Bryullov managed to break its boundaries. He the public, which became one of the most important centres introduced a fresh wave of Romanticism, sensual beauty, of cultural life in Vienna: it was a gathering place for artists, and subtle psychology into Russian academism. writers, and musicians.
Karl Bryullov Hans Makart Self-portrait Self-portrait 1848 1878 Oil on canvas Oil on canvas Tretyakov State Gallery Carolino Museum Moscow Salzburg Corporate Banking Corporate Banking
Corporate Banking Continuous improvement of clients’ comfort in utilizing the tool and technologies offered, widening the range of solutions and applications available to customers for conducting distant banking, unification of internal procedures aimed at reducing customer’s order processing time – our investments made under Banks and Business: 2011 Results these priorities became another drivers to business growth in 2011. All factors combined, we feel proud to state that the results achieved in 2011 prove to be another Another post-crisis year turned out to be quite an uneasy one. The weak rate of global economy’s justification of the true effectiveness of the model for business cooperation that we offer. This model is development, lack of certainty with regard to the prospects for business development in the domestic and based on the principles of mutual trust and responsibility, long-term relationships and common sense, the export markets across the majority of both developed and developing countries, and aggravation of the balance of interests, the consistent leadership in technological advancement and the flexibility in finding situation in financial markets caused by problems of sovereign debts in the European Union — the impact the best solutions to help our business partners respond to the challenges outstanding. This model tested of all of these factors on the relationships between banks and businesses was far from positive throughout by time and proven by customers’ loyalty let us both look ahead with confidence beyond the horizons of the entire 2011. future achievements.
On this background, in spite of and contrary to Comparative dynamics of total corporate portfolio change the action of external factors and constraints, the Achievements 2011 operating results of the Russian banking sector look RUR billion 3000 really impressive in 2011. The volume of Russian Assets 2964 banks’ total corporate portfolio as of December 2500 31, 2011 exceeded RUR 17.5 trillion, as per By end of 2011 the bank’s total corporate portfolio increased by almost RUR 40.2 billion, which posted Central Bank of Russia’s data. Therefore, the market 17.9% growth vs. the volume as of December 31, 2010. 2000 for corporate lending posted over 20% growth for 1651 the year, thus becoming one of the most dynamic It should be pointed out that the achieved growth in 1500 Comparative dynamics of loan portfolio sectors of the Russian financial sector. corporate assets was largely driven by enhanced (as of December 31, 2011) 1000 demand for credit resources in the regions, which The progressive recovery of the key sectors of proves the bank’s regional market position keeps 500 RUR million Russian economy coupled with the favorable 270 000 strengthening across all areas of presence. conjuncture of export markets and growing 0 36 265 241 260 000 2009 2010 2011 consumption of products and services on the local As a result, the volume of the bank’s average assets markets gave strong support to the demand for outside the most competitive (and low marginal) Sources: The Central Bank of the Russian Federation, Raiffeisenbank credit on the part of corporate clients. The volume 250 000 market of the Moscow region increased substantially
of new loans disbursed by banks to business entities 240 000 (+ 42%). Regional diversification of the total loan and organizations amounted to nearly three trillion portfolio also improved, which, in turn, reduced the rubles, which is over 80% higher the 2010 bentchmark 230 000 impact of price competition on the financial results. 225 007 In turn, such a massive expansion of credit supply was the source and the driving power to the economic 220 000 In addition, the growth of the regional assets widen
growth. 210 000 up prospects and opportunities for expanding the offer and acceleration of cross-selling of structured, 200 000 investment and non-credit products and services Components of success: our priorities 2010 2011 offered by the bank and its subsidiaries. Source: Raiffeisenbank Once again ZAO Raiffeisenbank demonstrated that it is capable of retaining the leadership position in The enhancement of lending activities was also due the industry, regardless of the changes in external environment, and also of making use of such changes to the achieved improvement in the loan portfolio to the maximum benefit to its customers, ensuring in the same time, stable, sustainable and long-term quality. Continued development and improvement of the risk management system, criteria, and procedures, development of its own business. credit analysis and compliance-control allowed to reduce the “burden” of non-performing loans (NPL) in absolute terms. This coupled with the portfolio growth resulted in the drop of NPL share in total corporate Reliable and responsible management of customers’ funds, willingness to support clients’ business assets down to 5.0% from 9.1% as of end of 2010 development, high quality of services and products, continued advancement of technical and technological systems & solutions that meet modern standards, requirements and the most demanding The efficiency of our systems and risk management procedures became one of the essential components clients’ expectations - by utilizing these business priorities we have achieved the outstanding results, some of this success. The development and improvement of these systems and procedures remained important of which were the record high in the entire history of operations in Russia. priorities in the bank’s activity in 2011.
Given the intense competition environment on the banking market it goes without saying that in addition to the bank’s team’s professionalism, our customers’ strong loyalty and confidence based on years of cooperation with the bank, their steady interest towards the products and services offered by us contributed significantly to our success.
42 43 Corporate Banking Corporate Banking
Average assets development The industrial composition of the bank’s credit Regional structure of assets and dynamics (as of 2010 and 2011) portfolio did not undergo any significant change, RUR million which once again justified for: 140 000 56.5% 9.8% 53.4% 9.6% 130 860 120 000 • the correctness of the selection of target industry 10.7% 10.5% 114 176 sectors, segments and specialized niches across 100 000 105 495 production and service industries when designing the structure of the bank’s industrial exposure; 80 000 81 320 • the efficiency of corporate assets allocation per
60 000 industry ; • the high stability of the established client base. 40 000 More than 86% of the loans provided by the bank 20 000 to the corporate sector is allocated across seven
0 major groups of industries where, in fact, the most and major part of country’s economic power and 2010 2011 the longer-term growth potential is concentrated. Source: Raiffeisenbank Moscow Regions 1.2% 12.3% 2.9% 11.3% Exposure to these groups implies the scale of demand 1.2% 8.4% 2.8% 9.5% for financial resources and, also, the relative stability of the demand in case of occurance of any systemic Source: Raiffeisenbank Moscow North-West Ural Siberia Volga South Center Composition of the average assets growth or cyclic changes. Further distribution of assets within the given industry groups allows minimizing RUR million the impact of the market or business specific risks on 60 000 58 221 the expected interest and non-interest income flows. Industrial composition of corporate credit portfolio
50 000 Our lending strategy for corporate sector assumes 25% 23.5% 40 000 steady and continued expansion of cooperation between the bank and business across all segments, 20% 32 856 30 000 including large, medium, small and micro business 17.1% 15% 25 365 levels. We offer our clients a universal and most 15.0% 20 000 complete variety of banking services and products 10% 11.4% 8.5% 10 000 including lending, structured and special finance 7.8% programs in every and any point of the bank’s 5% 3.5% 3.5% 0 2.7% 2.6% presence in Russia. 1.6% 0% 1.5% 1.1% Moscow Regions Total
Source: Raiffeisenbank The solutions that we offer in cross-boarder Trade Others (cyclic) Building operations
settlements, cash management, raising finance from Real estate and mining (non-cyclic) Energy sector Raw materials Business sector Medical sector external sources and markets are truly unique in Financial sector Energy resources
many aspects to Russian customers and create them Consumer durables Consumer commodities
additional benefits, competitive advantages and leverage to widen access to finance and to increase Source: Raiffeisenbank Telecommunication and IT business efficiency by using the most extended network of bank offices in Central and Eastern Europe established by RBI Group and the diversity of the sales channels available. was used as security against this loan. The initial USD 55 million loan was provided to IMMOFINANZ Project finance Group. The “Fifth Avenue” shopping center having a gross leasable area of about 21 200 m² and completely occupied with tenants was used as a security. Raiffeisenbank keeps holding leadership position on the market for project finance, and in particular, in financing commercial real estate. As of December 31, 2011 the bank’s project finance portfolio amounted Midmarket Business Segment to USD 1 977 million, which makes a 24.44% share in the total corporate loan portfolio. The majority of project finance assets are long-term loans to commercial real estate projects. Business with the middle sized companies remains one of the strategic areas for the bank’s business development. The goals and objectives remain unchanged – Raiffeisenbank aims to provide customers Despite the volotile environment on the global and the Russian financial market in 2011, the bank from the segment high-quality integrated services in all regions of presence and all points of sales . continued developing relations not only with the well-known clients, such as developers in Moscow and in the regions, but also entered into cooperation with new clients, including large international groups. We As a result of such focused and continuos efforts we achieved significant expansion of the client base in started business with the British fund Raven Russia by providing a 9 years 38 USD million loan. The first the midsize business segment. The rate of growth in clients’ funds on current and deposit accounts with the stage of the Klimovsk Warehouse Complex with gross leasable area of 55 000 m², completely leased out, bank made 50% by the end of the year.
44 45 Corporate Banking Corporate Banking
Regional structure of credit portfolio to middle business* In addition to the uprise in corporate liabilities, pro- Comparative growth dynamics of the average clients liabilities We developed and offered to our clients a line of new active development of business relations with the non-cash instruments in 2011 designed to optimize existing borrowing clients and accelerated efforts on RUR million and improve cash turnover and, subsequently, to RC “Volzhsky” 8.7% RC “Center” 160 000 RC “North-West” 3.5% acquisition of new customers interested in lending 159 392 reduce the need of a business for working capital 10.8% products offered by the bank resulted in over a 30% and short term finance. RC “South” 140 000 RC “Sibirsky” 1.6% 16.8% increase in the bank’s midsize business segment loan 120 000 portfolio. The volume of loans disbursed amounted 115 878 The volume of import L/Cs increased by 55.8% to almost RUR 11 billion as of the end of 2011. year-on-year in 2011. Instruments with post 100 000 financing from foreign correspondent banks
The number of borrowers using credit products 80 000 accounted for the substantial portion of the total under the lending programme designed specially volume. Also the bank actively participated in the for midsize businesses increased visibly. By 2011 60 000 international finance programs implemented by the year end the growth posted a 13.7% increase. 2010 2011 European Bank of Reconstruction and Development,
Implementation of the lending programme allowed Source: Raiffeisenbank and International Financial Corporation designed improving time efficiency in loan disbursement to specifically to support trade activities across Central clients and, in the same time, preserving the high and East European markets. Moscow qulity level of the total segment’s loan portfolio. RC “Sibirsky” 37.8% 20.8% Client Funds By and large, the special lending programme was Source: Raiffeisenbank * Data as of December 31, 2011. made available to midsize business clients in the By year-end of 2011 the volume of total corporate liabilities including clients’ funds on the current and majority of cities of the bank’s presence. Utilization of deposit accounts with the bank, reached the all-history record since the bank started operations in Russia. funds under the programme was observed the most active in Moscow, in Urals and Siberia regions, which In absolute terms the increase was over RUR 47 accounted for 37.9%, 20.8% and 16.9% of the total funds provided under the programme respectively Corporate average liabilities development billion or + 44% vs. 2010 which was substantially above the banking industry’s average. Documentary finance products offered by the bank were in high demand in 2011. The nominal volume of RUR million 120 000 guarantees and letters of credit issued doubled vs. 2010 level to have reached RUR 1.97 billion. 117 280 As a result of the stable inflow of resources onto clients’ accounts, the amount of external funds used 100 000 The majority portion (51.3%) of the total segment’s credit portfolio accounted for the working capital 97 533 for lending reduced noticeably, which, in tern,
finance. However, that was a 3.5% drop relative to last year’s benchmark due to enhanced growth of 80 000 mitigated the impact of interest risk to the profitability documentary business and the shift in demand towards longer-term investment facilities. of lending business. 60 000 We responded timely and flexibly to changes in customers’ needs and expectations throughout the year. In the second half of 2011 the bank accelerated 40 000 42 112 We modified products’ parameters accordingly and expanded the product diversity and offering while efforts on generating corporate liabilities and, thus,
maintaining the highest standards of service quality, performance discipline and the level of competitiveness 20 000 managed to buffer the pressure of the adverse 18 345 of our offers at the same time. The achieved success in midsize segment’s performance creates new developments across financial markets on business opportunities for further development of business cooperation and more active interaction with market 0 as access to finance resources got limited and money players across various industry segments as well as in product and service market niches. 2010 2011 rates propelled on foreign and local money markets. Source: Raiffeisenbank Moscow Regions Documentary Business In this regard, the contribution of the bank’s regional centers in strengthening its own funding base should Following the growth in lending activities, we expanded offerings of documentary products and services Composition of the average liabilities growth be specially noted. This contribution was really substantially and on time. As the liquidity squeeze tightened and the cost of money drove up across phenomenal – the total average volume of the financial markets, customers’ preferences shifted towards non-cash instruments. RUR million clients’ funds in regional branch offices increased 50 000 by 130% by year-end. Although Moscow region
In nominal terms the increase in volume of letters of credit and guarantees issued exceeded RUR 48 billion. 43 514 showed a “modest” + 20% vs. previous year mark; in 40 000 By year end the bank’s total portfolio of letters of credit and guarantees mounted to RUR 81 billion thus absolute terms, the increase was no less substantial.
posting a 94.5% growth on year-on-year basis. 30 000 We consider the success in attracting clients’ 23 767 20 000 The most popular among clients were guarantees nominated in Rubles and in foreign currencyies. The 19 747 resources to be a proof of our clients’ confidence nominal volume of guarantees issued increased within the year by RUR 28.4 billion or 57% above 2010 and trust towards the bank. In turn, we continue 10 000 level. The nominal volume of letters of credit issued and received under both local and cross-boarder responding to it via critical and balanced approach
settlements grew by 88.9% by year end. The share of L/C volumes in total documentary portfolio 0 to pricing and tariff policy, and by offering our clients
reached 21.8%. Moscow Regions Total diversity of products, services and opportunities that allow managing idle cash effectively and to the Source: Raiffeisenbank benefits of customers’ business.
46 47 Corporate Banking Corporate Banking
Cash Management Distance-Banking Services
Monitoring and analysis of clients needs, building long-term customer business and relationship, complex Raiffeisenbank offers its corporate clients the most modern, advanced and secure system for distant and combined approach to finding solutions to a clients needs - these are the cornerstones of the bank’s banking which includes a wide range of application and functions allowing to perform various transctions business development strategy in the area of cash management. with regards to current, deposit and other accounts held with the bank.
The bank offered cash management products extensively in 2011 aiming at attracting major international The convenience of usage and the powerful functional capabilities of the bank’s electronic banking and holding companies that do business in Russia. Our products are designed to create and implement engine were highly appreciated by the clients. The number of transactions executed via Direct banking additional opportunities for optimization and efficient management of multiple flows of financial resources tool increased by more than 30% in 2011 and exceeded 8 million , or about 22 thousand transactions within complex corporate structures. per day.
Raiffeisenbank worked consistently to improve and innovate CM products and services, as well as to In order to improve the quality of settlement and cash services, the Bank introduced ELBRUS Internet, upgrade technical and technological platform, processes and procedures. We analyzed client feedback a new platform for remote banking. The new engine will incorporate the best strandards and practices in and opinion with regard to the quality and the efficiency of products and services provided. Based on electronic banking and will operate under Raiffeisen Group information safety requirements to ensure the that we launched a number of new projects that anticipate adding more flexibility and convenience to the highest security possible. solutions offered to customers. In particular, the launch of customs card generated great interest among importers. Upgrade of business processes for connecting to the system implemented by the bank’s allowed to accelerate connection procedure by half. Further improvement of procedures and processes of back- Improvements were made to the process and procedures of selecting partners and clients which contributed office applications will make it possible to offer clients a more convenient maximum time of document to client base expansion and to income growth. Fee of commission income generated by cash management provision to the bank. business segment reached RUR 1.39 billions in 2011 (+7.7% vs. 2010).
Bringing clients the efficient and timely solutions to pending and non-standard issues and tasks, high level of professionalism, and the best result oriented approach in tackling clients’ needs – those are the particularities that always distinguish Raiffeisenbank in serving corporate clients.
48 49 ILYA REPIN JOSEF KRIEHUBER
1844 –1930 1800 –1876 A great Russian painter, creator of large-scale historical and An unsurpassed expert of lithographic portraits, the most genre paintings, one of the most prominent portraitists of famous and sought-after Austrian portraitist from the middle of his time. Repin created a truly impressive gallery of portraits the 19th century. It is hard to find at least one significant figure of his contemporaries: elegant portraits of high-society, of that era who was not captured by Kriehuber. During his life ceremonial portraits of Russian tsars and members of the State he created about three thousand lithographic portraits of the Council, portraits of cultural figures, scientists and artists which most prominent European politicians, royal family members, expressed great psychological depth. Repin’s portraits of the actors and artists. Josef Kriehuber’s gallery of portraits of great musicians – Modest Mussorgsky, Mikhail Glinka, Anton musicians and composers is well-known – Franz Schubert, Rubinstein and Franz Liszt are particularly expressive. Niccolo Paganini, Johann Strauss, Franz Liszt, and many others.
Ilya Repin Josef Kriehuber Self-portrait Self-portrait 1878 1860 Paper, ink Lithography Tretyakov State Gallery Albertina Gallery Moscow Vienna Retail Customers Retail Customers
Retail Customers Regular “product days” for credit cards, pension and investment products, and “Premium” bundles were held to promote sales of some of the bank’s products from January to December, 2011. The increase in sales of these products within the “product days” was 200% compared to the usual periods. Other important aspects in conducting such days were special conditions for clients for credit cards and Gold Branches service package.
In 2011 ZAO Raiffeisenbank continued to develop its branch network. During the year four new Furthermore, in order to increase sales effectiveness, several competitions between bank employees on the subdivisions were opened, two of them in Moscow – supplementary offices “Grina, 11” and “Mitino”. sales of bank products were organized in 2011.
In 2011 regional center Volzhsky opened a supplementary office ”Sormovsky” in Nizhny Novgorod and In September, 2011 the “Infinity” project was launched and is directed towards increasing the culture operational office “Prospect Yamasheva” in Kazan. of sales management in the retail segment. The project is focused on developing leadership skills, management skills, and communication skills of branch managers. By developing these competences, the Thus, as of the end of 2011 there are 189 operating subdivisions in the bank’s structure in Moscow and bank expects to increase the efficiency of employees’ work, which, in turn, will make greater satisfaction Russia’s regions. of the bank’s clients.
In order to improve the client service quality, all branches located in Barnaul, Tomsk, Omsk and Irkutsk were transferred to the unified bank’s platform. Direct and Corporate Sales
Furthermore, the process of transition to the unified operational platform of the bank was launched in Payroll Support outlets of “B” type located in Moscow. This process is expected to be completed in 2012. Extensive formation of teams in direct sales channels was continued in 2011. By year end the total number The marketing campaign “Presents for you and your friends” was held in 2011 and aimed at increasing of direct sales agents was increased to 458 employees. the client base and sales of priority products by getting contacts from the bank’s existing clients. A system of qualification levels was introduced for direct sales agents, thus providing the possibility for Raiffeisen CONNECT Internet bank was used as a channel for attracting clients under the program “Presents successful employees to get larger monthly bonuses for sales, to attend additional training courses, and to you and your friends”. Starting from October 1, 2011, an offer to participate in the program was placed move up the career ladder. in the personal profile of each client. The result of three months was more than 500 recommendations. Furthermore, motivational competitions for credit product sales were organized for employees of direct In total for the year, more than 60,000 recommendations were received. sales channels.
As a result the number of new clients within this campaign increased by 5 times relative to 2010. Moreover, key measures of credit product sales managers work effectiveness in the bank’s partner companies were introduced in 2011, thus providing the possibility to improve the work of direct sales The Branch Manager School project started in September, 2010, and was successfully completed in channels. April, 2011. The objective of the project is to select candidates for the position of the Moscow branch manager from the bank’s employees. This project was directed towards development of employees and The share of direct sales channels in the total volume of credit cards sold was 41%, while in the volume of improvement of their management competences. Those employees who have shown excellent work results personal loans sales it was 26%. in retail branches of the bank were provided with the opportunity to get additional training in the Training and evelopment center in order to improve their knowledge in the field of sales, coaching, as well as Within the framework of payroll projects 600 new companies were attracted, 32 000 accounts were a number of trainings directed towards an increase in personal effectiveness. Participants have successfully opened in Moscow, while 1 100 companies and 75 000 accounts were enlisted in the regions in 2011. used the obtained knowledge on tutorship and development of personnel in the network branches, and have supported the transfer of “B” type branches to the unified operational platform of the bank. Five The number of individuals who receive their wages at accounts in Raiffeisenbank increased by 22% in people have become branch managers in Moscow selected from nine candidates on the basis of the 2011. project results. Having excellent work experience in branches supported by additional knowledge in the field of management, motivation and planning obtained during the training and combined with wide Managers of the payroll projects servicing group continued the project started in 2010 on arrangement of practice of coaching, these employees are now creating their own teams that are effective and motivated a quality department employees meeting with clients of the payroll project and teleconferences in respect for excellent work. Since the first wave of the Branch Manager School showed high efficiency, the interest to the client’s satisfaction with the services of the bank in 2011. About 50 meetings and more than 600 of employees in career and professional growth, as well as the bank’s interest in personnel development, teleconferences were arranged during just the second half of 2011. As a result the outflow of clients was the competition for selection of candidates to the second wave of selection to the project was declared in reduced in 2011 to 1% (in 2010 it was 2.3%). September 2011, and the school is expected to start in February, 2012. VIP services for key clients have been organized inside the group, and this business direction is supported In order to increase sales of priority products in the bank’s branches in 2011, the successful practice of by the most experienced employees. creation of fixed plans for branches for contacts of specialists with clients was used, in the course of which the employee offers the client to consult on questions related to purchasing the bank’s products. The level In 2011 the group employees performed extensive work on transformation of payroll projects from the of consultation doubled in 2011 as compared to 2011. Usefulness of this line for the bank’s clients is operational platform “B” to platform “A”. expressed in statistics of product provision - each third client agrees to buy the offered product.
52 53 Retail Customers Retail Customers
The project is at the final stage – as of December, 2011, 85% of companies had been transformed. The penetration level and usage rate of remote channels in Moscow and St. Petersburg is quite high, but the growth opportunities in the regions are very significant. To reach this objective, a number of marketing The group accepted about 460 new companies for servicing in 2011, with a total number of clients of educational campaigns promoting utization of remote channels use were successfully carried out about 39 000 persons. throughout the year. The results met expectations, and the increase in initial subscription and consequent usage of demonstrated that our expectation were well grounded.
Call Centre While developing remote channels, the bank pays special attention to the informational security aspects searching for the right balance between informational security requirements and convenience for the The Call Centre of Raiffeisenbank provides remote customer service support on twenty-four-hour basis and clients. operates in several directions: round-the-clock support for the cardholders and merchants, informational support for the private individuals, special service for the Private and Premium banking customers. It also promotes the bank products and services. Personal Loans
The interactive voice response service Raiffeisen Teleinfo is also provided to the bank customers. This service 2011 was a year of record new volumes for the last several years in terms of consumer lending: enables the customers to receive general and personal information in automatically. The development of this service for the future expansion was proceeded in 2011. • New volumes disbursed - RUR 34.7 billion; • Portfolio growth was 57%; In 2011, as during the previous years, the Call Centre business was focused on service quality • The product is still the basic driver for growth of the retail assets’ portfolio and gross income of total improvement. Independent surveys of customers attitude to Call Centre service quality were handled on retail assets of the bank. regular basis to reveal all the service improvement area. The results of such surveys indicated a positive trend in the customer`s estimation of the service quality level in Call Centre in 2011. The evaluated All type of commission fees, including charges for Volume of provided loans customers’ satisfactory level was higher than the respective survey results of other Russian and German early repayment, were cancelled for unsecured Call Centres. Such service indicators as correctness and clearness of the provided information, the quality loans in 2011. RUR billion of the customers` enquiries execution, willingness to help, goodwill and the competence of the specialists 35 000 were mentioned by customers as strong points. Active optimization of unsecured loans internal 30 000 processes resulted in the application approval time Raiffeisenbank Call Centre in Russia keeps the leadership in RBI Group in the volumes of processed reduction to 1 business day 25 000 enquiries. The number of incoming calls received in 2011 was more than 5 mln of calls; this is for 23%
more than in 2010. More than 1.7 mln of outgoing calls and 0.8 mln of e-mails were handled in 2011. 20 000 In February, 2011, as a result of the improvement of loan’s conditions, the bank increased the ratio of There are 330 qualified specialists with wide range of professional knowledge employed in Raiffeisenbank 15 000 monthly loan payment to client’s income . Call Centre. 10 0000 Furthermore, the bank has reduced the possible
5 000 spread of interest rate values under the risk based Distance-Banking Services pricing program implemented in 2010. 0
The bank developed a middle term a remote banking service strategy concept for the key alternative 2009 2010 2011 It resulted in the increase of the number of approved
channels: Internet bank, SMS-bank, a system of automatic voice notification via phone (IVR) and ATM. The Source: Raiffeisenbank applications. By the middle of 2011 the growth was concept will be based on a unified complex IT platform, ensuring the integral and smooth implementation 27% of the value recorded in January. of functionality throughout all channels thus minimizing operational expenses for development of each channel. The bank has set an objective of creating a maximum range of possibilities for its clients who are Loan portfolio ready to take benefit offered by modern for banking services. RUR billion 50 25% The retail business together with the IT department has launched a number of large infrastructure projects aimed at complete modernization of technologies used in Internet-bank Raiffeisen CONNECT and system 40 20% of automatic phone notification Raiffeisen Teleinfo (IVR), creation of applications for smart phones and for other mobile operational systems. New functionality appeared in ATMs (on-line payment for housing 30 15% and public utilities services in Moscow and St. Petersburg, card to card on-line money transfers within the 20 10% bank, etc.). 10 5% The number of active users of the Internet bank increased by 41% in 2011 vs. 2010, and the number of transactions increased by 42%. 0 0 July, 1 October, 1 January, 1 April, 1 July, 1 October, 1 January, 1 2010 2010 2011 2011 2011 2011 2012 The number of users connected to SMS-notification services increased by 66% in comparison to 2010. The total penetration rate of SMS-notification into the database of card clients was 55%. Source: Raiffeisenbank Credit portfolio of ZAO Raiffeisenbank (unsecured loans) Growth rate of ZAO Raiffeisenbank» Growth rate in general for the market
54 55 Retail Customers Retail Customers
Excellent results were shown in large companies staff segment. The number of new loans disbursed in this In the used cars segment a decrease in the minimum downpayment for purchase of used cars from official segment increased by 88% in comparison to 2010. dealers was implemented. Raiffeisenbank then entered the market of unofficial dealers who concentrate the majority of used cars sales, with an analogous program. At the same time the bank continued to make special offers – pre-approved loans for existing clients with a positive credit history. The number of pre-approved loans disbursed increased more than two times in Personal watercrafts and launches were included in credit objects of the “Sports and extreme” lending 2011 compared to the previous year. program. This program also was extended on BRP. After launching this program in cooperation with ROSAN representation office, it has found a broad response among clients, and took leading positions on In the second half of 2011 the bank successfully launched the federal pilot project for express-lending, the market of lending for machinery for outdoor activities and sports. which provided one-hour decision process for applications. There was an expected change in financing of the vehicle`s insurance policy KASKO for the first year of The bank has successfully launched the pilot offer “Presents for you and your friends” directed towards credit servicing, the crediting of which now is possible without an increase in the minimum downpayment attracting new clients. for the vehicle.
Within sales development via the alternative channels, the possibility of offering clients pre-approved It is necessary to note the successes achieved in the basic direction of car lending development - partner unsecured loans via Internetbank Raiffeisen CONNECT was implemented in 2011. This service allowed channels. In spite of the high competition, Raiffeisenbank has kept the leading position in the field of sales our customers to reduce their time for application via the bank’s branch. From 5 to 7% (avg.) of the monthly of General Motors cars, which has been made possible by the aggregate of undertaken measures, such total number of viewed proposals in Raiffeisen CONNECT were accepted by clients. as a wide product line, fast decision making on credit application and mutually advantageous cooperation with the partner. The level of overdue debts in 2011 reached its historical minimum for the years of the bank’s operation on the consumer lending market. It is necessary to note cooperation with Rolf Import company – the distributor of Mitsubishi Motors in the Russian Federation, together with which the new market trend “Lead Generation” for clients attraction The number of client complaints received on product sales was reduced by two times in 2011. The number was opened; this trend implies consulting and follow-up with the client from the time of the client’s interest of complaints on application processing and disbursement reduced as well. in the car at the partner’s web-site up to the time of the car credit purchase formalities being completed. The innovation task of creating a joint interface for credit application acceptance has been implemented.
Car Loans Substantial new volumes were ensured by joint programs with the manufacturer Volvo Cars LLC and representative offices of Suzuki and Hyundai, under which the bank provides a decreased interest rate, The year 2011 was noteworthy for a steady increase in the bank’s car loan portfolio, which equaled more subsidy from representative offices, and other privileges. than 17% as of the end of the year (RUR 25.1 billion by year-end 2011), while the ruble loan portfolio increased by more than 50%. The volume of disbursed car loans approached indices of the pre-crisis Under the current conditions at the market for car loans, the development of joint programs with period, and was equal to RUR 19 billion. More than 35% of new volumes were loans under the state manufacturers, representative offices and major automobile holdings is a direction for business growth for subsidized program, the major share of which were foreign models of cars assembled in the Russian universal banks. Furthermore, the development of express crediting and closer development of the used Federation: Chevrolet and Hyundai. cars market is a promising direction in the development of the automobile market.
Dynamics of car loans portfolio Mortgage Loans
RUR billion pieces 25 100 000 By the end of 2011, the mortgage loan portfolio totalled RUR 31.184 billion. Over the course of the 25 24 24 25 year 3 621 loans totalling RUR 9.611 billion were extended, which was more than three times the amount 23 23 21 22 20 20 20 20 20 80 000 of loans granted in 2010. The growth in lending was attributable to the attractive mortgage lending terms offered by Raiffeisenbank, as well as to the introduction of new lending programmes (for instance, 15 60 000 refinancing mortgage loans extended by other banks, no upfront fees etc.) This was also possible thanks
10 40 000 to developments in client service and, the extension of a network of mortgage centres throughout Moscow and a number of other Russian cities. In 2011, Raiffeisenbank continued to actively cooperate with major 5 20 000 real estate agencies and developers to ensure a custom-tailored approach to the housing needs of each and every client: from the selection of housing market to prompt handling of loan-related paperwork. 0 0
January February March April May June July August September October November December 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 ATMs Source: Raiffeisenbank Car loans portfolio in amounts Car loans portfolio in units
As of 2011, ZAO Raiffeisenbank’s ATM network offered 1,875 machines in 7 regions of the Russian Federation, including Moscow. This was an increase of 14% over the previous year. There are 445 cash-in A wide product line has always been a mark of car loans provided by Raiffeisenbank, which tries to satisfy ATMs, or growth of 16% vs. 2010. the demands of the most exacting clients. This approach was continued in 2011: the existing programs were developed further, and new programs were launched.
56 57 Retail Customers Retail Customers
More than 6 million transactions are performed each month using Raiffeisenbank ATMs, these include over Unembossed is one of the few standard debit cards offered in the market that supports state-of the-art 10% cash deposits and about 6% mobile communication, Internet and cable television payments. technologies, from MasterCard® PayPass™ to MasterCard® SecureCode™.
Raiffeisenbank continues improving its ATM network and functionality. Starting at the end of 2011, the In 2011, online payment became available for the Electron and Maestro Raiffeisenbank’s cardholders. customers can pay for utility (Moscow, St. Petersburg) as well as Mosenergosbyt services (Moscow, The card holders are able to pay for goods and services via the Internet. This became possible after the Zelenograd) at Raiffeisenbank ATMs located in the bank’s Moscow branches. introduction of 3D-Secure technology.
In addition, the bank has implemented and activated an option which permits making instant card-to-card In 2011 the demand on deposits increased. The volume of retail deposits compared to the end of 2010 money transfers between Raiffeisenbank customers using the ATMs in the Moscow branches. increased by 30.1%. There was a positive tendency due to the competent product line and competence of bank’s employees involved in the sales process.
PCI DSS Compliance (Payment Card Industry Data Several new deposit products were added in 2011. For premium segment there were implemented special deposits successfully: Welcome! (Premium), Investment (Premium), Insurance (Premium), and the Jubilee Security Standard) deposit as well as the Welcome! (Gold) product developed and introduced for holders of the Gold service package. In 2011, independent experts confirmed the high level of cardholder data security in Raiffeisenbank. In 2011 we also optimised our deposit servicing software, which enhanced the product’s effectiveness. A PCI DSS compliance audit was carried out in Raiffeisenbank by the specialists of SRC Security Research & Consulting Gmbh, which has the status of Qualified Security Assessor required to perform such examination. Credit Cards
PCI DSS was developed by Visa International and MasterCard International to raise the security level of In many aspects, 2011 was a revolutionary year for credit cards. cardholder data processed, transferred and kept in the systems of banks and processing centres. By the middle of 2011, credit card sales had reached a record high for the bank. The PCI DSS audit not only proved the bank’s compliance to world payment card industry standard requirements, but also enhanced Raiffeisenbank’s reputation as a reliable bank that cares about the data Over the year, the bank actively optimised the application processes, with decision time reduced to two security of its customers. business days. Moreover, borrower requirements and lending processes continued to be optimised.
In April, Raiffeisenbank and ELLE magazine launched the jubilee series of the ELLE Gold Limited Edition Debit cards, service packages, deposits cards dedicated to the 15th anniversary of ELLE in Russia.
Without a doubt, 2011 was one of the most successful years for debit cards and service packages. In June, the regional co-branded Zolotaya Seredina-Raiffeisenbank MasterCard project was launched to offer special terms in more than 3 500 partner companies in a loyalty programme of the same name. Raiffeisenbank pioneered the introduction of MasterCard® PayPassTM cards with innovative «one-touch» payment technology in Russia. Together with iGlobe.ru, an online-portal for travel reservations, and VISA payment system, the co-branded Raiffeisen Travel Card designed for frequent travellers was launched in September 2011. Cardholders In March, the bank launched MasterCard World Black Edition card, which offers additional services for can accumulate miles for retail card transactions and later redeem them for tourist services at iGlobe.ru cardholders. (access to more than 380 airlines and 100 000 hotels globally, as well as car rental services).Additional advantages include special offers for booking via iGlobe.ru, concierge services, and free travel insurance. More than 14 thousand Premium service packages with MasterCard World Black Edition or Visa Platinum Premium cards were sold in 2011. This is one of the best market performance indexes. FEE FREE credit card, for which the annual fee is determined by the usage level, was launched in summer 2011. The FEE FREE card is a basic product offered to the bank’s retail customers. At the same time, interest The new Gold service package was launched in May, and offers access to a wide range of products rates for retail customers, employees of partner companies and payroll direct deposit customers were and services: clients can open five free MasterCard Gold Package cards with the PayPass™ contact-free reduced. During the fourth quarter, the maximum credit limit was increased to RUR 300 000 for standard payment option, earn higher interest on rouble current account balances, receive free insurance coverage cards and RUR 600 000 for Gold cards. on foreign trips for the whole family, take advantage of concierge services and receive a 20% discount on a safe deposit box. This product was actively promoted among existing and new clients, and 18 000 The range of premium cards available in the Premium service package was extended during 2011: packages were sold. Austrian Airlines – Raiffeisenbank MasterCard World Black Edition co-branded card with innovative PayPass™ technology was launched in the second quarter, and Visa Platinum Premium Travel co-branded Nearly all newly-issued MasterCards were transitioned to MasterCard® PayPass™ technology, and by card was launched in the fourth quarter. These cards offer credit limit up to RUR 1 million, and a 19.5% p.a. the end of the year more than 150 000 of such cards had been issued. interest rate, which is one of the lowest interest rates for retail clients.
MasterCard Unembossed was launched in November and offers MasterCard® PayPass™ contact-free The Discounts for You! in-house loyalty programme developed at impressive pace. By year-end it included payment technology as well. The card is equipped by chips and support MasterCard® SecureCode™ more than 4000 partners and became one of the major programmes in the Russian market. (3D-Secure protocol), which minimizes the risk of unauthorized use for Internet payments. MasterCard
58 59 Retail Customers Retail Customers
“BYSTRAYA POCHTA” Money Transfers A number of lifestyle events were organized for premium clients in 2011, such as special demonstrations at the exhibition of Austrian modern art “Austria, davaj” and invitations for plays and events during Chekhov In 2011, “BYSTRAYA POCHTA” turnover reached USD 706 million.* International theatre festival.
The number of “BYSTRAYA POCHTA” sales outlets increased by about 1000 to exceed 7 500. A dedicated Premium section was introduced within the bank’s loyalty program “Discounts for you”– this Geographic coverage was extended thanks to the engagement of new banks and the opening of new allowed to compliment the program with offers that fully meet the needs of our most sophisticated clients. outlets by the existing partners. The number of partner countries increased to 13, with transfers to the Republic of Abkhazia possible from December 2011. The volume of transfers via retail networks and Throughout 2011 the bank continued to invest in the development and increased professionalism of payment terminals, new sales channels for the “BYSTRAYA POCHTA” system, grew as well. Premium relationship managers. Within the framework of our multi-staged training program organized together with Raiffeisen Capital and Raiffeisen Life, significant focus was put on understanding the structure In 2011, as in previous years, the quality and reliability of funds transfers were key priorities for ZAO of financial markets and forecasts of macroeconomic development. Exactly this knowledge is used by Raiffeisenbank as a settlement bank and the owner of the “BYSTRAYA POCHTA” trademark. The efforts relationship managers for individual financial planning and for developing recommendations with regards made during the last year to reduce transaction time and increase the flexibility and reliability of the to clients’ investment strategies and long-term accumulation of capital. “BYSTRAYA POCHTA” software suite supported these priorities. Personalized approach, most competitive offerings, comprehensive approach and search for individual Last year also saw a considerable increase in rouble transfers within Russia as well as outbound transfers solutions for each client continue to remain the signature features of Premium Banking. Due to this, clients to CIS countries (which rose by 60% and 250% respectively). Outbound USD transfers to CIS countries highly estimated the services of Premium Banking throughout 2011. are still the main source of revenue from “BYSTRAYA POCHTA” despite the 26% decline in volume of such transfers in 2011. The increasing share of rouble transfers within Russia and the CIS countries gradually offset the reduced turnover in USD. Service Quality
In 2011, competition in the funds transfer markets in Russia and the CIS countries increased. The market In 2011, the bank focused on client service throughout its branch network, with outlets across Russia in was characterised by aggressive price cutting, lower profitability for all market players, and continuing competition to provide the highest level of service. We strive to improve our internal performance metrics rumours of industry consolidation. At the same time, according to our estimates, the market expanded system on a continuous basis, and the data obtained from internal measurements can be compared to results by about 25% in 2011, mainly due to further legalisation of money flows and the declining influence of of customer opinion and perception surveys regularly conducted by the bank. In 2011 we developed shadow brokers. systems for measuring the quality of client service, and will extend the systems to remote services in the future. Premium Banking
In 2011 Premium Banking was offered in 74 branches in Moscow, St Petersburg and 19 other Russian cities. Raiffeisenbank is one of the market leaders in terms of geographical coverage and number of branches offering premium services. By end of 2011 over 20 000 clients were enjoying Premium Banking at Raiffeisenbank.
Focusing on clients seeking high-class services and wide product range, the bank developed a Premium Service package, which includes most demanded and technologically innovative products, as well as a comprehensive approach to financial solutions to meet clients’ mid- and long-term plans.
Apart from 50% growth of liabilities of premium clients, the year 2011 demonstrated an increased interest of the premium segment to investment solutions.
In 2011 the bank made a stronger emphasis on clients’ needs in investments, and respectively further sophisticated the approach to financial planning. This resulted in increased sales of investment products which is a reflection of clients’ needs on a volatile market.
In 2011 the bank held a number of investment seminars together with Raiffeisen Capital Asset Management Company. The Head of Raiffeisen Research RBI Peter Brezinschek was the leading speaker at the seminars – he presented analytical forecasts for further development of the macroeconomic situation. The events provided actual and practical information to clients and evoked their substantial interest.
The year 2011 displayed premium clients’ increased interest to life insurance programs. Sales of Raiffeisen Life products in the premium segment increased 3.5 times compared to 2010.
* Turnover figures indicate only outbound “BYSTRAYA POCHTA” transfers.
60 61 KAZIMIR MALEVICH EGON SCHIELE
1879 –1935 1890 –1918 A Russian avant-garde artist, art theorist, he was a founder of A famous Austrian painter and graphic artist, Schiele is often the abstract style, which came to be known as Suprematism. referred to as one of the standout exponents of Austrian The most famous of Malevich’s Suprematist paintings was Expressionism, although he technically did not belong to this “Black Square,” which became a unique symbol of abstract movement. In his short life the artist created his own distinctive art. The visual ideas of Suprematism were based on dynamic style, well-known by every art lover: edgy colour contrasts, compositions of fundamental geometric forms, painted in dramatic pictures with an expressive line and explicit subject clean local colours, and they subsequently developed in the matter. In addition to his world famous distinguished portraits, architecture and style of the twentieth century. Schiele’s brush created a series of remarkable landscape paintings inspired by the works of Van Gogh.
Kazimir Malevich Egon Schiele Self-portrait Self-portrait 1910 1912 Paper, watercolour and gouache Wood, oil, pigment Tretyakov State Gallery The Leopold Museum Moscow Vienna Subsidiary companies Subsidiary companies
Subsidiary companies Raiffeisen Capital Asset Management Company
According to 2011 results, Raiffeisen Capital AMC was rated number one in the mutual funds industry for the third consecutive year in terms of retail funds sales (according to the ranking of AM Companies OOO Raiffeisen-Leasing by assets under management in mutual funds for 2011, complied by the National League of Asset Managers), thus confirming its leadership on the market. During the year company raised RUR 2.67 billion Today, Raiffeisen-Leasing is a leading Russian leasing company among cross-functional companies with out of the combined RUR 3.15 billion attracted by open-ended funds, or around 80% of the general foreign capital. Raiffeisen-Leasing is one of the top-20 companies in the industry with a developed branch amount. Company’s market share grew by more than 2% to reach 11.20%, making it one of the top three network and professional staff. The company is active in a broad range of economic sectors and plans to companies in the open-ended mutual funds market (according to the ranking of AM Companies by assets continue expanding actively. under management of net asset value of open investment funds as of December 30th,2011, complied by the National League of Asset Managers). In 2011 Raiffeisen-Leasing maintained the high pace Share of assets in portfolio of expansion it achieved in 2010, and completed To a large extent, this achievement was due to the expanded range of unit investment funds and continued 1210 new transactions valued at a total of RUR successful cooperation with ZAO Raiffeisenbank.
Industrial equipment 8.4 billion in terms of the value of the equipment 24% financed. This was two and a half times the 2010 In 2011, Raiffeisen Capital launched eight new funds, which naturally blended into the existing product Railcars 23% Construction machinery figure. line: Raiffeisen–Gold, Raiffeisen–Treasury, Raiffeisen–Active Management Fund, Raiffeisen–Industrial, 29% Raiffeisen–Information Technologies, Raiffeisen–USA, Raiffeisen–BRIC. The leasing portfolio grew by 55% year-on-year to RUR 9.9 billion. The leasing portfolio is diversified Three new funds offer the opportunity to invest in foreign markets. For Russian investors, this means the among various industries, with construction opportunity to achieve considerable diversification in terms of country risk. The launch of the open-ended equipment constituting 29% of the portfolio, cars Raiffeisen–Gold fund ensured more effective portfolio hedging for investors against negative events in the and trucks 24%, railcars 23% and industrial capital markets. The introduction of new open-ended funds with more conservative risk profiles added equipment 24%. to the investor toolbox and ensures effective portfolio management even in the case of the high market volatility that characterised the second half of 2011. 2011 was a very successful year for the regional divisions. The proportion of transactions with Successful cooperation with the Premium Banking segment was a significant factor. During the year, the regional clients increased to almost 40% of total share of sales of this segment demonstrated continuing growth, rising by more than 55% by the end of the transactions. The success of the regional centers year. Several investment seminars including regional ones were held for Premium clients. This was Passenger cars and commercial vehicles 24% North West, Uralsky and Volzhsky deserves special especially relevant during the second half of the year when it was even more critical to communicate with Source: Raiffeisenbank recognition. clients regarding situation on the financial markets and allay fears that the events of 2008 would be repeated. In the nearest future, key areas for development will include further expansion of the regional client Market share of Raiffeisen Capital* Share of regions in new business base and the development of new leasing products based on market demand. More specifically, the 12% Volga Hub Siberia Hub screening programme for vehicle leasing put on 8% 6% hold following the 2008 crisis will be reintroduced. 11.2% Urals Hub 10% 10% South Hub OOO Raiffeisen-Leasing will continue long-term 3% North West Hub 9.17% 10% cooperation with partners and clients and constantly 8% improve the quality of service. 6% 6.36%
4%
3.19% 3.11% 2% 2.52%
0
2006 2007 2008 2009 2010 2011
Source: National League of Asset Managers *in open-ended mutual funds
Central Hub 63% Raiffeisen Capital demonstrated remarkable results in other business segments as well. Particularly, despite Source: Raiffeisenbank declines in the stock market, Raiffeisen Capital reported positive results for institutional client accounts, including pension funds. Unlike most market players, company followed a conservative and weighted
64 65 Subsidiary companies Subsidiary companies
Growing assets under management approach in managing these kind of assets and preserved not only the funds invested by clients but their confidence as well. As of the end of 2011, the aggregate assets under management exceeded RUB 6.9 billion, growing more Raiffeisen Capital also expanded their partnership with Austrian management company Raiffeisen Capital than 1.7 times over the year. Management. Jointly managed Raiffeisen–Russland Aktien fund was named number one out of 19 funds included in the 3-year peer group in terms of return according to a global fund management performance Assets under management rating from Morningstar. Another Raiffeisen–BRIC fund, managed in partnership with Austrian colleagues, was named the best fund in the relevant category in Russian market in 2011. RUR billion 7 The asset management company’s successful performance in the above-mentioned areas had a positive 6.9 influence on their financial result despite negative course of events in the equity markets. At year-end 6 2011, Raiffeisen Capital, unlike many other major asset management companies, demonstrated positive financial result. 5
4 3.9 Non-State Pension Fund Raiffeisen 3
2.3 Key industry trends 2
1 1.2 Pension assets in the private sector exhibited robust growth, reaching RUB 1.037 trillion by October 1, 0.7 0.4 2011. 0 0.09 2005 2006 2007 2008 2009 2010 2011
The market shares of individual non-state pension funds (NPFs) in terms of pension assets continued Source: Raiffeisenbank shrinking – e.g., the share of the industry leader fell from about 50% in 2008 to 31% by the end of 2011.
The side effects of distribution through agents gave rise to development of more rigorous quality standards Ratings in the industry. • In 2011, the National Rating Agency confirmed the AA rating (very high reliability – second level) Growing public awareness assigned to the fund earlier; • In 2011, the Expert RA Rating Agency upgraded the Fund’s rating to A+ (very high reliability level). According to preliminary estimates, 2011 was the record year in terms of pension accounts transferred from the Pension Fund of the Russian Federation to NPFs and private asset management companies. As of October 1, 2011, out of 149 Russian non-state pension funds NPF Raiffeisen ranked: A critical mass has been accumulated to ensure sustainable interest to pension schemes among the most active population groups. • 1st by in terms of pension savings held in mandatory pension insurance personal accounts among the major NPFs: RUR 84 134 per person; Operating performance of the fund • 18th by 2nd pillar assets under management: RUB 4,039,348.48 thousand; Customer base increase • 23rd by 3rd pillar assets under management: RUB 2,201,156 thousand;
In 2011, 14,000 new customers entrusted their 2nd Pillar pension accounts to the fund as compared to Raiffeisen NPF remains one of the few market players to provide services both in b2c ( 2nd and 3rd pillar 8,060 in 2010. products) and b2b segments (administration of corporate pension plans).
The total customer base of the fund reached 122,000 people, including over 80,000 2nd Pillar accounts Thanks to the distribution system based on cooperation with ZAO Raiffeisenbank, the fund manages to and 41,000 3rd Pillar accounts. maintain high standards of sales performance and customer servicing.
The number of corporate accounts reached126, represented by major Russian and international players, leaders in their respective industries.
Quality of customer base
For many years, the fund has remained the leader among non-captive NPFs with 1,000+ participants in terms of average 2nd Pillar account balance.
66 67 Subsidiary companies Subsidiary companies
Raiffeisen Life Insurance Company LLC Raiffeisen Life payouts percentage breakdown by type of life With 3.5% of the Russian life insurance market insurance, 2009–2011* Raiffeisen Life ranks 10th among the top life In 2011, Raiffeisen Life Insurance Company LLC maintained the strong pace of expansion set in 2010. In insurance companies in the country, according to the scope of savings and financial protection programmes, the company offers a wide range of services in the Federal Insurance Supervisory Authority (FSSN) Car loan borrower OTC Endowment programs payouts the field of banking insurance for Raiffeisenbank clients in all retail segments. protection program payouts 1% data for 12 months of 2011. In 2011, the company 20% made insurance payouts across all life insurance Credit card user financial protection program payouts areas to 130 clients and held 31th position in terms Cumulative number of clients, 2009–2011 3% of payouts in the general rating of life insurers.
150 000 Raiffeisen Life Insurance Company strives to achieve the highest level of customer satisfaction among 120 000 125 595 Raiffeisenbank clients in the field of life insurance
90 000 and continues to improve its services.
75 001 60 000 During 2010-2011, Raiffeisen Life evolved from a market newcomer to a fully-functioning dynamic 30 000 life insurance company with a level of efficiency and
0 3 130 Loan borrower financial business processes near the highest Russian and protection program payouts 2009 2010 2011 76% international standards.
Source: Raiffeisenbank Source: Raiffeisenbank * On the basis of insurance payments
Total amount of premiums collected in 2011, RUR 1 094 793 800 Raiffeisen Life premiums and payouts percentage breakdown, 2009–2011 Number of clients as of December 31, 2011 (YTD figure) 125 595 Number of payouts in 2011 130 1 120 000 Total amount of payouts in 2011, RUR 13 892 545 1 094 794 1 000 000 Rating according to www.fssn.ru, the official web site of the Federal 10th place (YTD as of December 31,2011) Insurance Supervisory Authority
800 000
600 000 Rating of Raiffeisen Life Insurance Company on life insurance premiums collected by regions.
470 116 (YTD figures as of December 31,2011) 400 000
№ Region Amount of premiums collected Share of Raiffeisen Cumulative 200 000 Raiffeisen Life Insurance Raiffeisen Life Insurance revenues, YTD Company LLC, YTD figures Life Insurance Company LLC figures as of 0 5 606 157 8 642 13 893 as of December 31,2011 charges in ranking December 2009 2010 2011 (thousand of RUR) the total life 31,2011 insurance (thousand of Total amount of premiums collected, thousand of RUR Amount of payouts, thousand of RUR Source: Raiffeisenbank market charges RUR) 1 Moscow 639 802 5,32% 6 12 033 759 In 2011, Raiffeisen Life increased its client base by more that 50 000 people, and as of December 31, 2 Samara region 4 932 0,56% 7 872 670 2011, the company had about 125 000 clients. The amount of insurance premiums collected over the 3 The Republic of 8 904 1,04% 11 856 118 Tatarstan same period grew by almost 2.5 times. 4 St. Petersburg 86 661 12,30% 5 704 343 In September 2011, Raiffeisen Life, with prior permission from the insurance supervision authority raised 5 Saratov region 291 0,05% 17 588 439 its authorized share capital four-fold. The amount of authorized capital increased from RUR 60 mln to RUR 6 Tyumen region 5 350 0,98% 11 548 796 240 mln through additional capital contributions from the existing equity partners without any changes in 7 Rostov region 889 0,19% 17 467 826 partners’ shares: 75% of authorized capital is owned by “UNIQA International Beteiligungs-Verwaltungs 8 Republic of 526 0,12% 14 457 417 Gmbh”, 25% - by ZAO “Raiffeisenbank”. The abovementioned amendments were registered by Moscow Bashkortostan Inter-district Inspectorate №46 of the Federal Tax Service. Therefore the amount of authorized capital 9 Chelyabinsk region 2 657 0,70% 12 380 795 complies with the new Minimum Authorized Share Capital requirements of the Law «On insurance business 10 Nizhny Novgorod 6 559 1,74% 10 376 288 region in the Russian Federation» effective from January 1, 2012.
68 69 Alexander Golovin KOLOMAN MOSER
1863 –1930 1868 –1918 A Russian painter, stage designer and graphic artist, he actively Austrian painter and graphic artist, a standout exponent of participated in the artistic association “World of Art.” He was Austrian Art Nouveau and one of the founders of the Vienna engaged in interior and furniture design, and worked on the design Secession movement – a renowned and creative union of of the Russian pavilion at the World Exhibition in Paris in 1900. famous modernist artists. Moser had an extremely wide range Like many famous Art Nouveau decorators, Golovin was closely of creative interests: from painting and graphics, to set design connected with the theatre and designed the scenography and and decorative art. His work in industrial design was widely costumes for a variety of outstanding performances. At the turn of known: furniture, glass and ceramics, patterns for textiles. As the century, he provided the colourful scenic design for several a graphic designer, Moser was engaged in designing, posters, opera productions at the Bolshoy, Mariinsky and Alexandrinsky magazine covers and postage stamps. Theatres.
Alexander Golovin Koloman Moser Self-portrait Self-portrait 1919 1910 Canvas, tempera, pastel Oil on canvas The Tretyakov State Gallery Museum of Arts History Moscow Vienna Corporate Responsibility Corporate Responsibility
Corporate Responsibility In 2011, Raiffeisenbank co-sponsored two events for physically-challenged athletes: the Alexander Popov Cup open swimming tournament, which was opened to all categories of the disabled, and the Moscow Mayor’s Open Cup in seated volleyball for people with impaired motor systems. ZAO Raiffeisenbank, as well as all members of the RBI Group, has consistently focused on corporate responsibility programmes. The bank’s corporate responsibility is based on the civic-mindedness of Raiffeisenbank corporate teams participated in the Sports for Good events sponsored by the Downside employees and commitment of every employee to contribute to sustainable social development. Up Foundation to support children with Down’s syndrome. The events raised funds for early assistance programmes for these children in Russia. Business transparency Once again Raiffeisenbank supported the SOS Children’s Villages organisation and paid all maintenance Openness and transparency in cooperation with partners, clients, staff and authorities is the key priority of costs for a house in the village of Tomilino. SOS Children’s Villages is an international charitable organisation Raiffeisenbank. The bank discloses all details of activity and strictly observes the norms and requirements operating in 133 countries worldwide. For more than 60 years, the organisation has cared for children of Russian law. who have lost their parents as well as those whose parents are unable to care for them. In Russia more than 1300 children in St. Petersburg, Vologda, Pskov, Murmansk, Orlov and Moscow Regions are cared for A responsible employer by this organisation.
Raiffeisenbank is a responsible employer, maintaining a healthy working environment, offering appropriate Raiffeisenbank also holds regular charity events in regional centres. Raiffeisenbank employees were united benefits and competitive compensation. The bank maintains and constantly updates employee training in supporting the All-Russian campaign for the International Day of the Disabled. On December 3, 2011, and development programmes. In line with the commitment to ensure social protection for employees, bank employees wore white ribbons to demonstrate their support for people in difficult situations. Raiffeisenbank has established its own corporate pension programme. Moreover, in 2011, the bank introduced a system to individually review fines and penalties for clients in Support of vulnerable social groups and participation in projects aimed at distressed situations. sustainable social development Cultural initiatives Charitable mission of the bank: Raiffeisenbank contributes to projects aimed at sustainable social development. One major project • offering assistance for those groups in need who get the least support due to established stereotypes; supported last year was the International Chekhov Theatre Festival. Thanks to Raiffeisenbank, Russian • involving employees in charitable activities; spectators saw the masterpieces of foreign culture. • refusing any benefits from advertising opportunities connected with charitable activities. The biggest exhibition of contemporary Austrian art, «Austria, davaj!» was held in Moscow with the support Cultural sponsorship mission of the bank: of Raiffeisenbank. This was the first exhibition of contemporary Austrian art on a large scale. The project brought together the most popular contemporary Austrian artists, sculptors, photographers and designers. • supporting initiatives toward unifying the cultural environment between Russia and Europe • supporting innovative projects with a high level of organisation and great importance for the development of culture and society • supporting initiatives to create the most advantageous image for the bank
Charitable Programmes
In 2011, Raiffeisenbank’s key charitable initiatives included aid for the disabled of all ages, as well as social programmes for orphans.
In 2011, Raiffeisenbank continued to cooperate with the Russian Aid Fund established by the daily Russian newspaper Kommersant Publishing House. The Fund provides assistance to children in need of expensive therapy, acting exclusively as an intermediary between sponsors and those who need help rather than disbursing funds directly. An internal charitable programme Helping Together! was implemented in partnership with the Russian Aid Fund with the participation of bank employees.
In 2011, Raiffeisenbank once again supported Perspektiva, the Regional Public Union of the Disabled People (ROOI). Perspektiva protects the rights of the disabled people and assists in employment, as well as in other areas.
For a number of years, Raiffeisenbank has also provided assistance to the Illustrated Books for Small Blind Children Foundation; in 2011 we supported this organisation once again because we understand the importance of help for children with varying degrees of disability.
72 73 NATAN ALTMAN FRIEDENSREICH HUNDERTWASSER
1889 –1970 1928 – 2000 A Soviet avant-garde artist, an exponent of Cubism. Having An Austrian painter and pioneer architect, an exponent been recognized as an expert of pictorial portraits, he of artistic manifestos and a master of performance. continually expanded the scope of his creative interests: Hundertwasser’s mission as an artist was to encourage people He took part in the staging of revolutionary festivities, to be creative and live in harmony with nature through the experimented with sculpture, book illustrations and graphic power of art. His trademark work was eco-style houses with design, he drew designs for postage stamps, and created original designs – gardens on the rooftops and uniquely scenic designs for theatrical productions. designed external walls for each apartment. The artist left a will in which he gave his fortune to the cause of environment protection. © 2012 Hundertwasser Archive, Vienna © 2012 Hundertwasser Archive,
Natan Altman Friedensreich Hundertwasser Self-portrait Self-portrait 107 1911 1951 Tempera on paper Oil on canvas The State Russian Museum Hundertwasser Museum — St. Petersburg Vienna
74 Financial Statements Financial Statements
Financial Statements Consolidated Statement of Comprehensive Income In thousands of Russian Roubles Note 2011 2010 Interest income 27 37,660,581 32,108,360 Consolidated Statement of Financial Position Interest expense 27 (13,306,741) (10,338,073) Net interest income 24,353,840 21,770,287 In thousands of Russian Roubles Note 31 December 31 December 2011 2010 Provision for loan impairment 11 1,194,452 (4,023,677) Assets Net interest income after provision for loan impairment 25,548,292 17,746,610 Cash and cash equivalents 7 139,519,817 84,278,857 Fee and commission income 28 10,041,811 9,100,862 Mandatory cash balances with the Central Bank of the Russian Federation 5,921,349 2,698,403 Fee and commission expense 28 (2,278,810) (1,678,551) Trading securities 8 53,934,271 53,613,606 (Losses less gains) /gains less losses from trading securities (1,430,288) 343,308 Other securities at fair value through profit or loss 9 4,976,131 18,405,098 Gains less losses from other securities at fair value through profit or loss 82,850 934,879 Due from other banks 10 3,998,688 21,724,713 Losses, net of gains from redemption of investment securities available for sale (264,250) - Loans and advances to customers 11 354,743,067 283,563,919 Gains less losses from trading in foreign currencies 3,280,943 3,179,292 Investment securities available for sale 12 5,810,675 11,086,572 Unrealized losses, net of gains from derivative financial instruments 36 (559,047) (3,571,976) Premises and equipment 15 9,152,808 9,097,449 Realized gains less losses from derivative financial instruments 2,199,489 2,429,994 Intangible assets 16 11,862,200 11,777,347 Foreign exchange translation gains, net of losses/(losses, net of gains) 808,694 (195,860) Deferred income tax asset 30 2,749,879 2,248,290 Ineffectiveness from hedge accounting 36 56,596 (86,788) Investment securities held to maturity 13 509,681 512,148 Provisions for credit related commitments 35 544,195 (896,743) Derivatives and other financial assets 17 8,885,709 6,337,166 Provision for investment securities held to maturity 13 (4,991) (1,362) Investment in associates 14 1,349,943 1,058,323 Gains from the sale of loans 11 231,038 - Other assets 18 1,672,208 1,902,811 Other operating income 296,470 179,858 Total assets 605,086,426 508,304,702 Share of results of associates 14 207,716 6,682 Liabilities Operating income 38,760,708 27,490,205 Due to other banks 19 29,935,428 20,535,226 Administrative and other operating expenses 29 (20,474,605) (18,078,945) Customer accounts 20 399,461,342 286,744,158 Profit before tax 18,286,103 9,411,260 Term borrowings from the Parent Bank 22 46,987,518 81,169,487 Income tax expense 30 (4,430,655) (2,123,588) Term borrowings from other financial institutions 22 3,859,816 5,658,905 Profit for the year 13,855,448 7,287,672 Debt securities in issue 21 11,828,102 16,196,249 Revaluation of investment securities available for sale (217,096) 419,061 Current income tax liability 1,659,635 500,840 Redemption of investment securities available for sale 264,250 - Derivatives and other financial liabilities 23 10,857,907 7,542,341 Income tax recorded directly in other comprehensive income 30 (76,873) (178,220) Other liabilities 24 4,732,938 4,049,178 Valuation reserve due to cash flow hedge 36 337,210 472,038 Total liabilities 509,322,686 422,396,384 Other comprehensive income for the year, net of tax 307,491 712,879 Equity Total comprehensive income for the year, net of tax 14,162,939 8,000,551 Share capital 25 43,268,888 43,268,888 Share premium 591,083 591,083 Additional paid-in capital 26 1,520,016 1,520,016 Retained earnings and other reserves 50,383,753 40,528,331 Total equity 95,763,740 85,908,318 Total liabilities and equity 605,086,426 508,304,702
Approved for issue and signed on behaff of the Managing Board on 31 January 2012.
Sergei Monin Arndt Roechling Chairman of the Board Chief Financial Officer
76 77 Financial Statements Financial Statements
Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows
In thousands of Russian Rouble Note Share Share Additional Retained Other Total In thousands of Russian Roubles Note 2011 2010 capital premium paid-in earnings reserves Cash flows from operating activities capital Interest received 37,126,166 31,781,915 Balance at 1 January 2010 43,268,888 591,083 1,520,016 34,258,706 (532,685) 79,106,008 Interest paid (10,657,529) (7,967,061) Profit for the year - - - 7,287,672 - 7,287,672 Fees and commissions received 9,744,745 8,529,137 Other comprehensive income - - - - 712,879 712,879 Fees and commissions paid (2,269,380) (1,631,805) Total comprehensive income for 2010 - - - 7,287,672 712,879 8,000,551 Realized (losses, net of gains)/gains less losses from trading in trading securities (725,946) 917,439 Dividends declared 31 - - - (1,198,241) - (1,198,241) Realized gains less losses arising from other securities at fair value through profit or loss 73,796 995,672 Realized gains less losses from financial derivative instruments 2,811,510 2,479,532 Balance at 31 December 2010 43,268,888 591,083 1,520,016 40,348,137 180,194 85,908,318 Realized gains less losses arising from trading in foreign currencies 3,280,943 3,179,292 Profit for the year - - - 13,855,448 - 13,855,448 Cash proceeds from sale of loans 11 7,186,819 752,124 Other comprehensive income - - - - 307,491 307,491 Other operating income received 296,470 179,858 Total comprehensive income for 2011 - - - 13,855,448 307,491 14,162,939 Administrative and other operating expenses paid (17,262,647) (14,870,879) Dividends declared 31 - - - (4,307,517) - (4,307,517) Income tax paid (3,850,322) (2,923,048) Balance at 31 December 2011 43,268,888 591,083 1,520,016 49,896,068 487,685 95,763,740 Cash flows from operating activities before changes in operating assets and liabilities 25,754,625 21,422,176 Net increase in mandatory cash balances with the Central Bank of the Russian Federation (3,222,946) (89,432) Net increase in trading securities (651,237) (14,647,122) Net decrease/(increase) in other securities at fair value through profit and loss 13,443,433 (16,218,491) Net decrease in due from other banks 18,154,542 7,680,289 Net increase in loans and advances to customers (70,326,540) (42,410,202) Net increase in securities held to maturity - (354,742) Net increase in derivatives and other financial assets (356,198) (207,419) Net decrease in other assets 283,765 257,904 Net increase/(decrease) in due to other banks 9,301,617 (224,227) Net increase in customer accounts 108,003,426 31,826,916 Net (decrease)/increase in debt securities in issue (4,342,354) 6,066,116 Net increase/(decrease) in derivatives and other financial liabilities 314,998 (162,165) Net decrease in other liabilities (116,695) (57,722) Net cash from/(used in) operating activities 96,240,436 (7,118,121) Cash flows from investing activities Acquisition of premises and equipment 15 (1,981,917) (1,693,024) Acquisition of intangible assets 16 (799,202) (801,370) Investment in associate 14 (83,905) (113,709) Proceeds from disposal of investment securities available for sale 5,058,804 - Net cash from/(used in) investing activities 2,193,780 (2,608,103) Cash flows from financing activities Proceeds from term borrowings from the Parent Bank and other financial institutions 15,998,720 10,909,582 Repayment of term borrowings from the Parent Bank and other financial institutions (53,693,780) (53,684,632) Interest paid on term borrowings from the Parent Bank and other financial institutions (1,794,706) (2,172,963) Dividends paid 31 (4,307,517) (1,198,241) Net cash used in financing activities (43,797,283) (46,146,254) Change in accrued interest on cash and cash equivalents (9,551) (23,097) Effect of exchange rate changes on cash and cash equivalents 613,578 (5,059,537) Net increase/(decrease) in cash and cash equivalents 55,240,960 (60,955,112) Cash and cash equivalents at the beginning of the year 84,278,857 145,233,969 Cash and cash equivalents at the end of the year 7 139,519,817 84,278,857
78 79
Addresses Addresses
Addresses Slovakia Slovenia Ukraine Tatra banka, a.s. Raiffeisen Banka d.d. Raiffeisen Bank Aval JSC Hodžovo námestie 3 Zagrebeška cesta 76 9, Leskova Street 81106 Bratislava 2000 Maribor 01011 Kiev Raiffeisen Bank International AG Phone: +421-2-5919 1111 Phone: +386-2-229 3100 Phone: +38-044-490 8888 Fax: +421-2-5919 1110 Fax: +386-2-303 442 Fax: +38-044-285 3231 Austria SWIFT/BIC: TATRSKBX SWIFT/BIC: KREKSI22 SWIFT/BIC: AVALUAUK Am Stadtpark 9 www.tatrabanka.sk www.raiffeisen.si www.aval.ua 1030 Vienna Phone: +43-1-71707 0 Fax: +43-1-71707 1715 www.rbinternational.com Leasing companies [email protected] [email protected] Austria Bulgaria Kosovo Raiffeisen-Leasing Raiffeisen Leasing Bulgaria Raiffeisen Leasing Kosovo International GmbH OOD Gazmend Zajmi n.n., Sunny Hill Am Stadtpark 3 Mladost 4, Business Park Sofia 10000 Pristina Banking network 1030 Vienna Building 7B, 4th floor Phone: +381-38-222 222 Phone: +43-1-71707 2966 1504 Sofia Fax: +381-38-203 03011 Albania Croatia Poland Fax: +43-1-71707 762966 Phone: +359-2-491 9191 www.raiffeisen-leasing-ks.com Raiffeisen Bank Sh.a. Raiffeisenbank Austria d.d. Raiffeisen Bank Polska S.A. www.rli.co.at Fax: +359-2-974 2057 “European Trade Center” Petrinjska 59 Ul. Piękna 20 www.rlbg.bg Moldova Bulevardi «Bajram Curri» 10000 Zagreb 00-549 Warsaw Albania I.C.S. Raiffeisen Leasing Tirana Phone: +385-1-456 6466 Phone: +48-22-585 2001 Raiffeisen Leasing Sh.a. Croatia S.R.L. Phone: +355-4-238 1000 Fax: +385-1-481 1624 Fax: +48-22-585 2585 “European Trade Center” Raiffeisen Leasing d.o.o. Alexandru cel Bun 51 Fax: +355-4-227 5599 SWIFT/BIC: RZBHHR2X SWIFT/BIC: RCBWPLPW Bulevardi “Bajram Curri” Radnicka cesta 43 2012 Chisinau SWIFT/BIC: SGSBALTX www.rba.hr www.raiffeisen.pl Tirana 10000 Zagreb Phone: +373-22-2793 13 www.raiffeisen.al Phone: +355-4-2274 920 Phone: +385-1-6595 000 Fax: +373-22-2283 81 Czech Republic Romania Fax: +355-4-2232 524 Fax: +385-1-6595 050 www.raiffeisen-leasing.md Belarus Raiffeisenbank a.s. Raiffeisen Bank S.A. www.raiffeisen.al www.rl-hr.hr Priorbank JSC Hvezdova 1716/2b 15 Charles de Gaulle Square Poland 31-A, V. Khoruzhey Str. 14078 Prague 4 011857 Bucharest 1 Belarus Czech Republic Raiffeisen-Leasing Polska 220002 Minsk Phone: + 420-221-141 111 Phone: +40-21-306 1000 JLLC “Raiffeisen-leasing” Raiffeisen-Leasing s.r.o. S.A. Phone: +375-17-289 9090 Fax: +420-221-142 111 Fax: +40-21-230 0700 31-A, V. Khoruzhey Str. Hvezdova 1716/2b Ul. Prosta 51 Fax: +375-17-289 9191 SWIFT/BIC: RZBCCZPP SWIFT/BIC: RZBRROBU 220002 Minsk 14078 Prague 4 00-838 Warsaw SWIFT/BIC: PJCBBY2X www.rb.cz www.raiffeisen.ro Phone: +375-17-289 9394 Phone: +420-221-5116 11 Phone: +48-22-326 36 66 www.priorbank.by Fax: +375-17-289 9394 Fax: +420-221-5116 66 Fax: +48-22-3263 601 Hungary Russia www.priorbank.by www.rl.cz www.rl.com.pl Bosnia and Herzegovina Raiffeisen Bank Zrt. ZAO Raiffeisenbank Raiffeisen BANK d.d. Bosna i Akadémia utca 6 Smolenskaya-Sennaya Sq. 28 Bosnia and Herzegovina Hungary Romania Hercegovina 1054 Budapest 119020 Moscow Raiffeisen Leasing d.o.o. Raiffeisen Lízing Zrt. Raiffeisen Leasing IFN S.A. Zmaja od Bosne bb Phone: +36-1-484 4400 Phone: +7-495-721 9900 Sarajevo Hungaria krt. 40-44 Nusco Tower 71000 Sarajevo Fax: +36-1-484 4444 Fax: +7-495-721 9901 Zmaja od Bosne 11 1087 Budapest Sos Pipera Nr. 42 Phone: +387-33-287 101 SWIFT/BIC: UBRTHUHB SWIFT/BIC: RZBMRUMM 71000 Sarajevo Phone: +36-1-298 8000 Etaj 1A Fax: +387-33-213 851 www.raiffeisen.hu www.raiffeisen.ru Phone: +387-33-254 354 Fax: +36-1-298 8010 020112 Bucharest SWIFT/BIC: RZBABA2S Fax: +387-33-212 273 www.raiffeisenlizing.hu Phone: +40-21-306 9696 www.raiffeisenbank.ba Kosovo Serbia www.rlbh.ba Fax: +40-37-287 9998 Raiffeisen Bank Kosovo Raiffeisen banka a.d. Kazakhstan www.raiffeisen-leasing.ro Bulgaria J.S.C. Bulevar Zorana Djindjića 64a Raiffeisen Leasing Raiffeisenbank (Bulgaria) UÇK Str. No. 51 11070 Novi Beograd Kazakhstan LLP EAD 10000 Pristina Phone: +381-11-320 2100 Shevchenko St. 146, No. 12 18/20 Gogol Str. Phone: +381-38-222 222 Fax: +381-11-220 7080 050008 Almaty 1504 Sofia Fax: +381-38-203 01130 SWIFT/BIC: RZBSRSBG Phone: +7-727-3785 430 Phone: +359-2-9198 5101 SWIFT/BIC: RBKORS22 www.raiffeisenbank.rs Fax: +7-727-3785 447 Fax: +359-2-943 4528 www.raiffeisen-kosovo.com www.rlkz.kz SWIFT/BIC: RZBBBGSF www.rbb.bg
82 83 Addresses Addresses
Russia Real estate Branches and Malaysia Raiffeisen OOO Raiffeisen-Leasing RBI Labuan Branch Stanislavskogo St. 21/1 leasing representative Suite No. 28.02, Level 28 Zentralbank 109004 Moscow companies offices — Asia Johor Bahru City Square Office AG Phone: +7-495-721 9980 Tower Fax: +7-495-721 9901 Czech Republic and America 106-108 Jalan Wong Ah Fook Austria www.raiffeisen-leasing.ru Raiffeisen Leasing Real 80000 Johor Bahru Am Stadtpark 9 Estate s.r.o. China Phone: +607-291 3800 1030 Vienna Serbia Hvezdova 1716/2b RBI Beijing Branch Fax: +607-291 3801 Phone: +43-1-71707 0 Raiffeisen Leasing d.o.o. 14078 Prague 4 Beijing International Club 200 Fax: +43-1-71707 1715 Milutina Milankovića 134a Phone: +420-221-5116 10 2nd floor Singapore www.rzb.at 11000 Novi Beograd Fax: +420-221-5116 41 Jianguomenwai Dajie 21 RBI Singapore Branch Phone: +381-11-20177 00 www.rlre.cz 100020 Beijing One Raffles Quay Selected Raiffeisen Fax: +381-11-31300 81 Phone: +86-10-653 23388 #38-01 North Tower Specialist Companies www.raiffeisen-leasing.rs Fax: +86-10-653 25926 Singapore 048583 Branches and Phone: +65-6305 6000 F.J. Elsner Trading GmbH Slovakia RBI Representative Office Fax: +65-6305 6001 Am Heumarkt 10 Tatra Leasing s.r.o. representative Hong Kong 1030 Vienna Hodžovo námestie 3 offices — Unit 2106-08, 21st Floor, USA Phone: +43-1-797 36 0 81106 Bratislava Tower One, Lippo Centre RB International Finance Fax: +43-1-797 36 230 Phone: +421-2-5919 3168 Europe 89 Queensway, Hong Kong (USA) LLC www.elsner.at Fax: +421-2-5919 3048 Phone: +85-2-2730 2112 1133 Avenue of the Americas, www.tatraleasing.sk Germany Fax: +85-2-2730 6028 16th Floor Kathrein Privatbank RBI Representative Office 10036 New York Aktiengesellschaft Slovenia Frankfurt RBI Representative Office Phone: +01-212-845 4100 Wipplingerstraße 25 Raiffeisen Leasing d.o.o. Mainzer Landstraße 51 Xiamen Fax: +01-212-944 2093 1010 Vienna Bleweisova cesta 30 60329 Frankfurt Unit 01-02, 32/F Zhongmin Phone: +43-1-53 451 239 1000 Ljubljana Phone: +49-69-2992 1918 Building RBI Representative Office Fax: +43-1-53 451 233 Phone: +386-1-241 6250 Fax: +49-69-2992 1922 No 72 Hubin North Road New York www.kathrein.at Fax: +386-1-241 6268 Fujian Province 1133 Avenue of the Americas, www.rl-sl.si France 301012 Xiamen 16th Floor Raiffeisen Centro Bank AG RBI Representative Office Phone: +86-592-2623 988 10036 New York Tegetthoffstraße 1 Ukraine Paris Fax: +86-592-2623 998 Phone: +01-212-593 7593 1050 Vienna LLC Raiffeisen Leasing Aval 9-11 Avenue Franklin D. Fax: +01-212-593 9870 Phone: +43-1-515 20 0 9, Moskovskiy Av. Roosevelt India Fax: +43-1-513 43 96 Corp. 5 Office 101 75008 Paris RBI Representative Office Vietnam www.rcb.at 04073 Kiev Phone: +33-1-4561 2700 Mumbai RBI Representative Office Ho Phone: +38-044-590 2490 Fax: +33-1-4561 1606 803, Peninsula Heights Chi Minh City Raiffeisen Investment Fax: + 38-044-200 0408 C.D. Barfiwala Road, Andhere 6 Phung Khac Khoan Street, Aktiengesellschaft www.rla.com.ua UK (W) Room G6 Krugerstraße 13 RBI London Branch 400 058 Mumbai District 1, Ho Chi Minh City 1015 Vienna 10, King William Street Phone: +91-22-2623 0657 Phone: +84-8-3829 7934 Phone: +43-1-710 5400 0 London EC4N 7TW Fax: +91-22-2624 4529 Fax: +84-8-3822 1318 Fax: +43-1-710 5400 169 Phone: +44-20-7929 2288 www.raiffeisen-investment.com Fax: +44-20-7933 8099 Korea RBI Representative Office ZUNO BANK AG Sweden Korea Am Stadtpark 3 RBI Representative Office Leema Building, 8th floor 1030 Vienna Nordic Countries 146-1 Soosong-dong Phone: +43-1-71707 2691 Drottninggatan 89 Chongro-ku Fax: +43-1-71707 762691 P.O. Box 3294 Seoul 110-755 www.zuno.eu 10365 Stockholm Phone: +82-2-398 5840 Phone: +46-8-440 5086 Fax: +82-2-398 5807 Fax: +46-8-440 5089
84 85
Addresses Addresses
Tverskoye branch Marii Ulyanovoy 9 Raiffeisenbank in Anapa Addresses 1st Tverskaya-Yamskaya str., additional office 5/2 Marii Ulyanovoy str., 9, bld. 4 Anapsky operational office Grebenskaya str., 3 Raiffeisenbank in Lyublino branch Ploschad Ilicha branch Tishinskoye branch Na Novopeschanoy Moscow Krasnodarskaya str., 48 Sergiya Radonezhskogo str., 8 Tishinskaya square, 6, bld. 1 additional office Ul. M. Gorkogo operational Novopeschanaya str., 20/10, office Avrora branch Marksistskoye branch Podolskoye branch Troitskoye branch bld. 1А Gorkogo str., 7 Sadovnicheskaya str., 82, bld. 2 Marksistsky lane, 3 Moscow region, Troitskaya str., 17, bld. 1 Podolsk, Revolyutsionny Prospekt Mira additional Novorossiysky additional Arbatskoye branch Mayakovskoye branch prospekt, 62, bld. А Universitet branch office office Arbat str., 1 Bol’shaya Sadovaya, 1, bld. 1 Michurinsky prospekt, 7 Banny lane, 3 Novorossiysk, Engelsa/ Polyanka branch Novorossiysky partizan str., 50 Bagrationovskoye branch Mitino branch Bol’shaya Polyanka str., 3/9, Tsentralnoe branch Smolenskaya 28 additional Barklaya str., 16, bld. 1 Mitinskaya str., 37 bld. 1 Leninsky prospekt, 15A office Raiffeisenbank in Smolenskaya-Sennaya square, Barnaul Belyaevo branch Mozhayskoye branch Preobrazhenskoye branch Shmitovsky branch 28 Profsoyuznaya str., 104 Mozhayskoe shosse, 2 Preobrazhenskaya str., 2, bld. 1 Shmitovsky prospekt, 19 Barnaulsky branch Tallinskaya 26 additional Prospekt Lenina, 163 Bol’shie Kamenschiki branch Moscow-City branch Profsoyuznoye branch Bakuninskaya 10/12 office Bol’shie Kamenschiki str., 6, Testovskaya str., 10 Profsoyuznaya str., 20/9 additional office Tallinskaya str., 26 Raiffeisenbank in bld. 1 Bakuninskaya str., 10 -12, bld. Belgorod Mytishchi branch Pyatnitskoe branch 5 Balchug operational cash Varshavskoye branch Moscow region, Pyatnitskaya str., 34 office Belgorodsky operational Varshavskoe shosse, 64, bld. 1 Mytishchi, Komarova str., 2, Volgogradsky prospekt 9 Balchug str., 1 office bld. 3 Rechnoy Vokzal branch additional office Shorsa str., 26a Voikovskoye branch Leningradskoe shosse, 68 Volgogradsky prospekt, 9, bld. Borovskoye 6 operational Leningradskoe shosse, 16A, Nagatinskoe branch 1 cash office Raiffeisenbank in bld. 1 Varshavskoe shosse, 18, bld. 1 Romanov Dvor branch Borovskoe shosse, 6 Blagoveshchensk Romanov lane, 4/4 Zhulebino additional office Grina 11 branch Na Maysnitskoy branch Lermontovsky prospekt, 6 Vidnoe operational cash Blagoveshchensky branch Grina str., 11 Maysnitskaya str., 22/2/5, Rublevskoe branch office Pionerskaya str., 32/2 bld. 1 Rublevskoe shosse, 22, bld. 1 Zelenogradsky additional Moscow region, Leninsky Dmitrovskoe branch office district, Vidnoe, Operational cash office Butyrskaya str., 77 Novy Arbat branch Rayzansky prospekt branch Zelenograd, Tsentralny Solnechny microdistrict, 10 Zaburkhanovskaya str., 100 Novy Arbat str., 36/9 Rayzansky prospekt, 24, bld. 2 prospekt, bld. 435A Kolomenskoe branch Volgogradsky 11 Raiffeisenbank in Andropova prospekt, 42, bld. 1 Odintsovo branch Sadovo-Triumfalnoye branch Zemlyanoy val additional operational cash office Bryansk Moscow region, Malaya Dmitrovka str., 20 office Volgogradsky prospekt, 11 Krasnye vorota branch Odintsovo, Mozhayskoye Zemlyanoy Val str., 7/1-2, Bryansky operational office Orlikov lane, 8 shosse, 112a Semenovskoye branch bld. 1 Volgogradsky 73 Krasnoarmeyskaya str., 65 Semenovskaya square, 1 operational cash office Raiffeisenbank in Vladivostok Krylatskiye Kholmy branch Ostozhenka branch Kosmonavtov 4 additional Volgogradsky prospekt, 73, Krylatskaya str., 17, bld. 1 Ostozhenka str., 27, bld. 1 Smolenskoye branch office bld. 1 Vladivostoksky branch Smolensky boulevard, 13, bld. Kosmonatov str., 4, bld. 1 Prospekt Ostryakova, 8 Kutuzovskoye branch Otradnoye branch 1 Isakovskogo 6 operational Kutuzovsky prospekt, 34, bld. Khachaturyana str., 20 Leninsky prospekt 66 cash office Okeansky branch 14 Sukharevskoye branch additional office Isakovskogo str., 6, bld. 2 Okeansky prospekt., 8 Petrovka branch Prospekt Mira, 3/1 Leninsky prospekt, 66 Leningradsky prospekt Petrovka str., 5 Shirokaya 31/5 operational Additional office branch Sushchevsky val branch Leninsky prospekt 148 cash office Primorsky Kray, Artem, Frunze Leningradsky prospekt, 39A Petrovsky park branch Obraztsova str., 3 additional office Shirokaya str., 31/5 str., 51 Petrovsko-Razumovskaya Leninsky prospekt, 148 Leninsky 32 branch alleya, 10, bld. 3 Taganskoye branch Renaissance operational Leninsky prospekt, 32 Nikoloyamskaya str., 13/2 cash office Olimpiysky prospect, 18/1
88 89 Addresses Addresses
Raiffeisenbank in Raiffeisenbank in Kirova 48 operational office Raiffeisenbank in Centralny additional office Raiffeisenbank in Rostov- Volgograd Ivanovo Kirova str., 48 Krasnoyarsk Ordzhonikidze str., 23 on-Don Raiffeisenbank on Kamchatka Volgogradsky operational Ivanovsky operational office Krasnoyarsky branch Studenchesky additional Rostovsky branch office Palekhskaya str., 10 Kamchatsky branch Prospekt Mira, 74A office Kirovsky prospekt, 40A Prospekt Lenina, 35 Petropavlovsk-Kamchatsky, Karl Marks prospekt, 47/2 Raiffeisenbank in Izhevsk Artilleriyskaya str., 5/1 Na Vzletke additional office Zapadny additional office Volzhsky operational office 78 Dobrovolcheskoy brigady Na Prospekte additional Kommunistichesky propekt, 27 Volgograd region, Volzhsky, Izhevsky operational office Kamchatsky additional office str., 14, bld. А office Olomoutskaya str., 31a M. Gorkogo str., 156 Petropavlovsk-Kamchatsky, Krylova str., 7/Krasny prospekt, Raiffeisenbank in Artilleriyskaya str., 5/1 Na Kopylova additional 66 Samara Park House additional office Vorovskogo street office 30-letiya Pobedy boulevard, 21 operational office Nikolskoye additional office Kopylova str., 66 Zaeltsovsky operational Samarsky branch Vorovskogo str., 172 Kamchatka region, Aleutsky office Molodogvardeyskaya str., 180 Raiffeisenbank in district, Raiffeisenbank in Kursk Dusi Kovalchuk str., 258/1 Voronezh Raiffeisenbank in Irkutsk Nikolskoe village, Gagarina Molodezhny boulevar str., 4 Kursky branch Berdsk additional office additional office Voronezhsky operational Irkutsky branch Dzerzhinskogo str., 90B Novosibirsk region, Togliatti, Tsentralny region, office Rabochaya str., 2A Elizovo additional office Berdsk, Lenina str., 89/8 Molodezhny boulevar, 6 Svobody str., 14 Elizovo, Pogranichnaya str., 1 Raiffeisenbank in Lipetsk Furie additional office Raiffeisenbank in Omsk Raiffeisenbank in Saint Raiffeisenbank in Furie str., 16 Raiffeisenbank in Kirov Lipetsky operational office Petersburg Ekaterinburg Oktyabrskaya str., 1 Omsky branch Angarsky additional office Volgo-Vyatsky operational Mashala Zhukova str. Severnaya stolitsa branch Uralsky branch Irkutsk region, office Na Pervomayskoy corner Krasnykh zor’ srt., 77, Moyka river emb., 36 Krasnoarmeyskaya str., 10 Angarsk, 7A microdistrict, 6 Engelsa str., 66 operational office bld. 1/8 Pervomayskaya str., 101 Avstriyskaya ploshchad Na Kosmonavtov additional Bratsky additional office Oktyabrsky prospekt Karla Marksa prospekt branch office Irkutsk region, operational office Raiffeisenbank in operational office Kamennoostrovsky prospekt, Kuznetsova str., 21 Bratsk, Komsomolskaya str., Oktyabrsky prospekt, 125 Magadan Karl Marks prospekt, 16 13/2 38B Na Radicsheva additional Kondakova street Magadansky branch Raiffeisenbank in Orel Vladimirskaya ploshad’ office Raiffeisenbank in Kazan operational office Parkovaya str., 6A branch Radicsheva str., 12 Kirov region, Sovetsk, Orlovsky operational office Bol’shaya Moskovskaya str., Kazansky operational office Kondakova str., 24 Raiffeisenbank in Nizhny Moskovskaya str., 17 1-3, Na Kraulya additional office Nikolaya Ershova str., 35A Novgorod liter A, room 2H Kraulya str., 9a Raiffeisenbank in Raiffeisenbank in Perm Yamasheva operational Krasnodar Povolzhsky branch Kirochnaya ulitsa branch Magnitogorsky operational office M. Gorkogo str., 117 Kamsky operational office Kirochnaya str., 24, litea A, office Yamasheva prospect, 43A Uzhny branch Ordzhonikidze str., 101 room 21H Magnitogorsk, Lenina str., 156A Severnaya str., 311/1 Avtozavodsky additional Raiffeisenbank in office Permsky branch Komendantsky prospekt Raiffeisenbank in Kaliningrad Krasnodarsky branch Vedenyapina str., 1Б Sovetskaya str., 72 branch Zheleznogorsk Krasnaya str., 155/1 Komendantsky prospekt, 13, Kaliningradsky operational Nagornaya additional office Raiffeisenbank in bld. 1, liter A Zheleznogorsky operational office Ubileyny additional office Belinskogo str., 61 Petrozavodsk office Leninsky prospect, 109A 70-letiya Oktyabrya str., 15 Kupchino branch Lenina str., 13 Sormovskyi additional office Petrozavodsky operational Malaya Balkanskaya, 26 Ploshad’ pobedy Pyatigorsky operational Kominterna str., 139 office Liter A, room 17H Raiffeisenbank in operational office office Lenina prospekt, 26 Zlatoust Teatralnaya str., 30 Pyatogorsk, Lenina square., 2 Raiffeisenbank in Leninsky prospekt branch Novosibirsk Raiffeisenbank in Novatorov boulevard, 11, liter A Zlatoustovsky operational Raiffeisenbank in Kaluga Pyatigorsk office Sibirsky branch Maly prospekt branch Im. U.A. Gagarina prospect., Kaluzhsky operational office Uritskogo str., 20 Pyatigorsky additional office Maly prospekt V.O., 22 10A Tulskaya str., 15 Linina sqaure, 2
90 91 Addresses Addresses
Moskovsky prospekt branch Raiffeisenbank in Sochi Raiffeisenbank in Tula Raiffeisenbank in Chita Raiffeisenbank in Raiffeisenbank in Moskovsky prospekt, 216, liter Yakutsk Yaroslavl A Sochinsky additional office Tulsky operational office Chita credit-cash office Kurortny prospekt, 73 Fridrikha Engelsa str., 6 Krasnoyarskaya str., 31 Yakutsk credit-cash office Yaroslavsky operational Sadovaya ulitsa branch Dzerzhinskogo str., 23 office Sadovaya str., 10, liter A Raiffeisenbank in Raiffeisenbank in Sobinova str., 15/14 Stavropol Tyumen Sennaya ploschad branch Efimova str., 4A Stavropolsky operational Tyumensky branch office Kholodilnaya str., 114 Staronevskoye branch Mira str., 237 Nevsky prospekt, 137A Na Permyakova operational Lomonosova street office Park Pobedy branch operational office Permyakova str., 70/1 Mosckovsky prospekt, 186А Mira str., 355/Lomonosova str., 38 Raiffeisenbank in Ufa Primorskoe branch Savushkina str., 127A Raiffeisenbank in Stary Bashkortostan branch Oskol Karl Marks str., 20 Nevsky additional office Nevsky prospekt, 102, liter A Starooskolsky operational Raiffeisenbank in office Khabarovsk Volynsky additional office Komsomolskaya str., 61 Volynsky lane, 3А Khabarovsky branch Raiffeisenbank in Surgut Turgeneva str., 96, bld. 4 Raiffeisenbank in Saransk Surgutsky operational office K.Marksa operational office Profsoyuzov str., 18 K/ Marksa str., 57, bld. 1 Saransky operational office Prospekt Lenina, 7 Nefteyugansk additional Raiffeisenbank in office Chelyabinsk Raiffeisenbank in Nefteyugansk, microdistrict Saratov 14, 9 Yuzhny Ural branch Karl Marks str., 38 Saratovsky operational Raiffeisenbank in office Syktyvkar Severo-Zapadny additional Chernyshevskogo str., 60/62 office Syktyvkarsky operational Molodogvardeyskaya str., 53 Prospekt Kirova operational office office Pervomayskaya str., 62 Miassky operational office Prospekt Kirova, 1 Chelyabinsk region, Miass, Raiffeisenbank in Prospekt Oktyabrya, 72 Raiffeisenbank in Taganrog Smolensk Raiffeisenbank in Taganrogsky operational Cherepovets Smolensky operational office office Industrialnaya str., 2 Petrovskaya str., 88 Cherepovetsky operational office Nikolskie vorota operational Raiffeisenbank in Tomsk Sovetsky prospekt, 105 office Marshala Zhukova str., 9 Tomsky operational office Gukova operational office Berdskaya str, 23 Gukova str., 4
Prospekt Frunze operational office Prospekt Frunze, 40
92 93 Addresses Addresses
Representative office of Raiffeisen Non-State Pension Fund Raiffeisen Zentralbank Austria AG 119121 Moscow, Plushikha str., 44/2 1190002 Moscow, www.npfraiffeisen.ru Smolenskaya-Sennaya square, 28 e-mail: [email protected]
OOO Raiffeisen Leasing Raiffeisen Life Insurance Company 109004 Moscow, Stanislavskogo str., 21, bld. 1 LLC www.raiffeisen-leasing.ru 121009 Moscow, Novinsky boulevar, 8 e-mail: [email protected] www.raiffeisen-life.ru
OOO Raiffeisen Capital Asset www.raiffeisen.ru Management Company General Licenсe of Bank of Russia № 3292. 115054 Moscow, Stremyany per., 38 www.raiffeisen-capital.ru www.raiffeisencapital.ru www.rcmru.ru e-mail: [email protected]
You will find the online version of the Annual Report at www.raiffeisen.ru/about/annualreport
The forecasts, plans, and statements addressing the future are based on knowledge and estimates at the time at which they are draw up. Like all statements addressing the future, they are exposed to risks and uncertainty factors that may lead to considerable deviations in the result. No guarantees can therefore be provided that the forecasts are targeted values, or statements addressing the future, will actually materialize. We have exercised utmost diligence in the preparation of this annual report and checked the data contained there. The English version is a translation of the report that the bank originally prepared in the Russian language. The bank only recognizes the Russian version as the authentic version.
Data valid as of 31st of December 2011 Design by YellowDog
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