Capital adequacy
In 2012, the consolidated Tier 1 capital adequacy ratio decreased to 10.4% and the total capital adequacy ratio decreased to 13.7%.
This decrease is explained mostly by a 39% rise in risk-weighted assets, which was based on natural assets growth supported by acquisitions. The Group’s capital adequacy ratio is well above the Basel committee minimum requirements (8%). The total capital adequacy ratio of OJSC „Sberbank of Russia” on a standalone basis according to RAS (1Н) as of end 2012 was 12.6%.
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| mln RUB | 2012 | 2011 |
| Tier 1 capital | ||
| Share capital | 87.7 | 87.7 |
| Share premium | 232.6 | 232.6 |
| Retained earnings | 1,186.7 | 882.9 |
| Treasury shares | (7.6) | (7.0) |
| Less goodwill | (25.0) | (15.1) |
| Total Tier 1 capital | 1,474.4 | 1,181.1 |
| Tier 2 capital | ||
| Revaluation reserve for premises | 79.0 | 81.5 |
| Fair value reserve for investment securities available for sale | 16.8 | (3.4) |
| Foreign currency translation reserve | (4.7) | (5.7) |
| Subordinated capital | 382.7 | 303.5 |
| Less investments in associates | (8.6) | (4.7) |
| Total Tier 2 capital | 465.2 | 371.2 |
| TOTAL CAPITAL | 1,939.6 | 1,552.3 |
| Risk-weighted assets | ||
| Credit risk | 13,693.1 | 9,867.8 |
| Market risk | 452.5 | 349.0 |
| Total risk-weighted assets | 14,145.6 | 10,216.8 |
| Tier 1 capital adequacy ratio | 10.4 | 11.6 |
| Total capital adequacy ratio | 13.7 | 15.2 |