Article
Sberbank spent RUB 360 billion for reserves in 2014

According to international reports, the net profit of Sberbank reduced by 19,8% and amounted to RUB 290,3 billion as of year-end 2014. The representatives of the bank name among the key reasons of net profit reduction the increase of expenses on creation of reserves. Last year the reserves achieved RUB 361,4 billion last year.

The last year turned out to be complicated for the domestic financial sector. The increase of the key interest rate to 17% in the end of the year caused the steep money appreciation while the rumors about the exit of the international Payment Systems Visa and MasterCard from the Russian market generated the panic among the clients. They massively began to withdraw their money from the accounts. The Sberbank felt the bite.

As of year-end 2014 the return on equity of Sberbank amounted to 14,8%. According to Alexander Morozov, the Financial Director of Sberbank, the reduction of the return on equity lower than 10% is expected in the current year. The bank representatives explain the significant reduction of the net profit last year by the increase of expenses on creation of reserves from RUB 135 to RUB 361,4 billion.

NPL Mostovik, OAO Mechel as well as credit in Ukraine are worth noting among distressed assets of the state bank. According to Morozov’s estimates, the financial difficulties related to these assets cost the bank 1-1,2 margin percentage points. It decreased from 5,9% to 5,6% over the last year. In the beginning of the current year the net interest margin dropped to a record minimum and amounted to 3%. However as of year-end 2015 the bank expects the net interest margin above 5%.

The bank representatives stated that they are ready to sacrifice the market share for the quality of assets. Thus Sberbank plans to reduce the retail uncovered lending and to concentrate on mortgage services. Last year namely the mortgage portfolio became the major source of the credit portfolio increase by 44,7% as of year-end. In addition, the share of non-performing loans increased from 2,9% to 3,2%.

In whole Sberbank managed to demonstrate pretty good result under current condition. The bank showed the good dynamic of interest and fee revenue. While the mortgage lost the ground not that much as it was expected. At the same time in the fourth quarter of the last year Sberbank managed to economize on the payment of interest on the background of funding cost increase. Due to the fact that the depositors re-deposited the assets or converted them.

As of year-end 2015 Sberbank is willing to get the profit. The Central bank of Russia lowered the key interest rate from 17% to 14%. According to Alexander Morozov, this fact gives to the bank additional RUB 105 billion of income.

Article
The Government will reduce inspections of small business

In governmental authorities they talk constantly about the development of small business, but sometimes good ideas bump up against the practice of frequent inspections by all sorts of regulatory bodies, when it becomes difficult to conduct business due to the high bureaucratization.

Today, when country’s economy is not in the best condition, the problem of lifting of excess restrictions gained a new actuality. In particular, at a meeting with the First Deputy PM Igor Shuvalov in March, the Federal Antimonopoly Service (FAS) was tasked to establish immunity for enterprises with annual revenues being below 400 mln RUB and reduce the number of inspections of small business for a period of not less than three years.

The idea seems to be quite reasonable and should give a new impulse to the development of the business environment.