10. Loans and Advances to Customers
For the purposes of these consolidated financial statements a loan is considered past due when the borrower fails to make any payment due under the loan agreement at the reporting date. In this case the aggregate amount of all amounts due from borrower under the respective loan agreement including accrued interest and commissions is recognised as past due.
31 December 2012:
| In billions of Russian Roubles | Not past due loans | Past due loans | Total |
|---|---|---|---|
| Commercial loans to legal entities | 5,033.7 | 247.8 | 5,281.5 |
| Specialised loans to legal entities | 2,836.0 | 110.3 | 2,946.3 |
| Сonsumer and other loans to individuals | 1,472.6 | 97.1 | 1,569.7 |
| Mortgage loans to individuals | 1,094.6 | 48.8 | 1,143.4 |
| Car loans to individuals | 118.2 | 5.2 | 123.4 |
| Total loans and advances to customers before provision for loan impairment | 10,555.1 | 509.2 | 11,064.3 |
| Less: Provision for loan impairment | (237.1) | (327.9) | (565.0) |
| Total loans and advances to customers net of provision for loan impairment | 10,318.0 | 181.3 | 10,499.3 |
31 December 2011:
| In billions of Russian Roubles | Not past due loans | Past due loans | Total |
|---|---|---|---|
| Commercial loans to legal entities | 3,828.8 | 184.1 | 4,012.9 |
| Specialised loans to legal entities | 2,347.9 | 215.8 | 2,563.7 |
| Сonsumer and other loans to individuals | 898.7 | 45.3 | 944.0 |
| Mortgage loans to individuals | 741.6 | 35.8 | 777.4 |
| Car loans to individuals | 80.7 | 3.5 | 84.2 |
| Total loans and advances to customers before provision for loan impairment | 7,897.7 | 484.5 | 8,382.2 |
| Less: Provision for loan impairment | (281.6) | (380.9) | (662.5) |
| Total loans and advances to customers net of provision for loan impairment | 7,616.1 | 103.6 | 7,719.7 |
Commercial lending to legal entities comprises corporate loans, loans to individual entrepreneurs, federal bodies and municipal authorities of the Russian Federation. Loans are granted for current needs (working capital financing, acquisition of movable and immovable property, portfolio investments, expansion and consolidation of business, etc.). Majority of commercial loans are provided for periods up to 5 years depending on the borrowers’ risk assessment. Commercial lending also includes overdraft lending and lending for export-import transactions. The repayment source is cash flow from current production and financial activities of the borrower.
Specialised lending to legal entities includes investment and construction project financing and also developers’ financing. As a rule, loan terms are linked to payback periods of investment and construction projects, contract execution periods and exceed the terms of commercial loans to legal entities. The principal and interest may be repaid from cash flows generated by the investment project at the stage of its commercial operation.
Consumer and other individual loans comprise loans to individuals other than housing acquisition, construction and repair of real estate as well as car loans. These loans include loans for current needs and overdrafts.
Mortgage loans to individuals include loans for acquisition, construction and reconstruction of real estate. These loans are mostly long-term and are collateralized by real estate.
Car loans to individuals include loans for purchasing a car or other vehicle. Car loans are provided for periods of up to 5 years.
The table below shows the analysis of loans and provisions for loan impairment as at 31 December 2012:
| In billions of Russian Roubles | Gross loans | Provision for impairment | Net loans | Provision for impairment to gross loans |
|---|---|---|---|---|
| Commercial loans to legal entities | ||||
| Collectively assessed | ||||
| 4,972.5 | (105.9) | 4,866.6 | 2.1% |
| 29.3 | (3.5) | 25.8 | 11.9% |
| 11.0 | (3.1) | 7.9 | 28.2% |
| 6.6 | (2.3) | 4.3 | 34.8% |
| 14.9 | (8.2) | 6.7 | 55.0% |
| 133.2 | (121.8) | 11.4 | 91.4% |
| Total collectively assessed loans | 5,167.5 | (244.8) | 4 ,922.7 | 4.7% |
| Individually impaired | ||||
| 61.2 | (26.1) | 35.1 | 42.6% |
| 5.0 | (2.5) | 2.5 | 50.0% |
| 4.0 | (2.6) | 1.4 | 65.0% |
| 1.5 | (0.5) | 1.0 | 33.3% |
| 1.5 | (0.1) | 1.4 | 6.7% |
| 40.8 | (33.3) | 7.5 | 81.6% |
| Total individually impaired loans | 114.0 | (65.1) | 48.9 | 57.1% |
| Total commercial loans to legal entities | 5,281.5 | (309.9) | 4,971.6 | 5.9% |
| Specialised loans to legal entities | ||||
| Collectively assessed | ||||
| 2,772.8 | (76.1) | 2 696.7 | 2.7% |
| 12.3 | (1.4) | 10.9 | 11.4% |
| 2.2 | (0.4) | 1.8 | 18.2% |
| 1.4 | (0.7) | 0.7 | 50.0% |
| 3.4 | (2.2) | 1.2 | 64.7% |
| 43.7 | (39.6) | 4.1 | 90.6% |
| Total collectively assessed loans | 2,835.8 | (120.4) | 2,715.4 | 4.2% |
| Individually impaired | ||||
| 63.2 | (26.1) | 37.1 | 41.3% |
| 5.8 | (0.5) | 5.3 | 8.6% |
| 1.9 | (1.5) | 0.4 | 78.9% |
| 3.5 | (2.5) | 1.0 | 71.4% |
| 2.9 | (1.4) | 1.5 | 48.3% |
| 33.2 | (28.2) | 5.0 | 84.9% |
| Total individually impaired loans | 110.5 | (60.2) | 50.3 | 54.5% |
| Total specialised loans to legal entities | 2,946.3 | (180.6) | 2,765.7 | 6.1% |
| Total loans to legal entities | 8,227.8 | (490.5) | 7, 737.3 | 6.0% |
| Consumer and other loans to individuals | ||||
| Collectively assessed | ||||
| 1,472.6 | (2.0) | 1,470.6 | 0.1% |
| 35.1 | (2.1) | 33.0 | 6.0% |
| 9.7 | (1.9) | 7.8 | 19.6% |
| 6.4 | (2.1) | 4.3 | 32.8% |
| 11.2 | (7.0) | 4.2 | 62.5% |
| 34.7 | (30.4) | 4.3 | 87.6% |
| Total consumer and other loans to individuals | 1,569.7 | (45.5) | 1,524.2 | 2.9% |
| Mortgage loans to individuals | ||||
| Collectively assessed | ||||
| 1,094.6 | (0.8) | 1,093.8 | 0.1% |
| 13.6 | (0.5) | 13.1 | 3.7% |
| 3.8 | (0.4) | 3.4 | 10.5% |
| 2.4 | (0.4) | 2.0 | 16.7% |
| 2.9 | (1.0) | 1.9 | 34.5% |
| 26.1 | (23.4) | 2.7 | 89.7% |
| Total mortgage loans to individuals | 1,143.4 | (26.5) | 1,116.9 | 2.3% |
| Car loans to individuals | ||||
| Collectively assessed | ||||
| 118.2 | (0.1) | 118.1 | 0.1% |
| 2.0 | (0.1) | 1.9 | 5.0% |
| 0.4 | (0.1) | 0.3 | 25.0% |
| 0.3 | (0.1) | 0.2 | 33.3% |
| 0.4 | (0.2) | 0.2 | 50.0% |
| 2.1 | (1.9) | 0.2 | 90.5% |
| Total car loans to individuals | 123.4 | (2.5) | 120.9 | 2.0% |
| Total loans to individuals | 2,836.5 | (74.5) | 2,762.0 | 2.6% |
| TOTAL LOANS AND ADVANCES TO CUSTOMERS AS AT 31 DECEMBER 2012 | 11,064.3 | (565.0) | 10,499.3 | 5.1% |
The table below shows the analysis of loans and provisions for loan impairment as at 31 December 2011:
| In billions of Russian Roubles | Gross loans | Provision for impairment | Net loans | Provision for impairment to gross loans |
|---|---|---|---|---|
| Commercial loans to legal entities | ||||
| Collectively assessed | ||||
| 3,795.5 | (117.4) | 3,678.1 | 3.1% |
| 11.3 | (3.1) | 8.2 | 27.4% |
| 4.7 | (2.2) | 2.5 | 46.8% |
| 3.4 | (1.8) | 1.6 | 52.9% |
| 7.4 | (4.8) | 2.6 | 64.9% |
| 115.6 | (111.8) | 3.8 | 96.7% |
| Total collectively assessed loans | 3,937.9 | (241.1) | 3,696.8 | 6.1% |
| Individually impaired | ||||
| 33.3 | (22.3) | 11.0 | 67.0% |
| 7.0 | (7.0) | — | 100.0% |
| 0.5 | (0.2) | 0.3 | 40.0% |
| 4.1 | (0.3) | 3.8 | 7.3% |
| 0.1 | — | 0.1 | — |
| 30.0 | (28.7) | 1.3 | 95.7% |
| Total individually impaired loans | 75.0 | (58.5) | 16.5 | 78.0% |
| Total commercial loans to legal entities | 4,012.9 | (299.6) | 3,713.3 | 7.5% |
| Specialised loans to legal entities | ||||
| Collectively assessed | ||||
| 2,276.1 | (86.7) | 2 189.4 | 3.8% |
| 5.2 | (0.8) | 4.4 | 15.4% |
| 3.3 | (1.2) | 2.1 | 36.4% |
| 1.6 | (0.7) | 0.9 | 43.8% |
| 2.1 | (1.3) | 0.8 | 61.9% |
| 59.3 | (52.8) | 6.5 | 89.0% |
| Total collectively assessed loans | 2,347.6 | (143.5) | 2,204.1 | 6.1% |
| Individually impaired | ||||
| 71.8 | (38.7) | 33.1 | 53.9% |
| 4.0 | (2.8) | 1.2 | 70.0% |
| 2.2 | (1.6) | 0.6 | 72.7% |
| 0.4 | (0.3) | 0.1 | 75.0% |
| 137.7 | (106.8) | 30.9 | 77.6% |
| Total individually impaired loans | 216.1 | (150.2) | 65.9 | 69.5% |
| Total specialised loans to legal entities | 2,563.7 | (293.7) | 2,270.0 | 11.5% |
| Total loans to legal entities | 6,576.6 | (593.3) | 5,983.3 | 9.0% |
| Consumer and other loans to individuals | ||||
| Collectively assessed | ||||
| 898.7 | (10.9) | 887.8 | 1.2% |
| 12.5 | (0.2) | 12.3 | 1.6% |
| 3.1 | (0.2) | 2.9 | 6.5% |
| 1.7 | (0.2) | 1.5 | 11.8% |
| 2.8 | (0.6) | 2.2 | 21.4% |
| 25.2 | (25.2) | — | 100.0% |
| Total consumer and other loans to individuals | 944.0 | (37.3) | 906.7 | 4.0% |
| Mortgage loans to individuals | ||||
| Collectively assessed | ||||
| 741.6 | (4.6) | 737.0 | 0.6% |
| 8.2 | (0.2) | 8.0 | 2.4% |
| 2.0 | (0.2) | 1.8 | 10.0% |
| 0.9 | (0.1) | 0.8 | 11.1% |
| 1.3 | (0.3) | 1.0 | 23.1% |
| 23.4 | (23.4) | — | 100.0% |
| Total mortgage loans to individuals | 777.4 | (28.8) | 748.6 | 3.7% |
| Car loans to individuals | ||||
| Collectively assessed | ||||
| 80.7 | (1.0) | 79.7 | 1.2% |
| 1.0 | — | 1.0 | — |
| 0.2 | — | 0.2 | — |
| 0.1 | — | 0.1 | — |
| 0.1 | — | 0.1 | — |
| 2.1 | (2.1) | — | 100.0% |
| Total car loans to individuals | 84.2 | (3.1) | 81.1 | 3.7% |
| Total loans to individuals | 1,805.6 | (69.2) | 1,736.4 | 3.8% |
| Total loans and advances to customers as at 31 December 2011 | 8,382.2 | (662.5) | 7,719.7 | 7.9% |
The table below shows the credit quality analysis of the Group’s not past due collectively assessed loans before provision for loan impairment as at 31 December 2012:
| In billions of Russian Roubles | 1 group | 2 group | 3 group | Total |
|---|---|---|---|---|
| Commercial loans to legal entities | 522.7 | 2,620.7 | 1,829.1 | 4,972.5 |
| Specialised loans to legal entities | 151.3 | 1,336.7 | 1,284.8 | 2,772.8 |
| Сonsumer and other loans to individuals | 36.8 | 1,405.8 | 30.0 | 1,472.6 |
| Mortgage loans to individuals | 43.2 | 1,036.4 | 15.0 | 1,094.6 |
| Car loans to individuals | 2.5 | 113.6 | 2.1 | 118.2 |
| Total | 756.5 | 513.2 | 3,161.0 | 10,430.7 |
The table below shows the credit quality analysis of the Group’s not past due collectively assessed loans before provision for loan impairment as at 31 December 2011:
| In billions of Russian Roubles | 1 group | 2 group | 3 group | Total |
|---|---|---|---|---|
| Commercial loans to legal entities | 159.1 | 2,125.2 | 1,511.2 | 3,795.5 |
| Specialised loans to legal entities | 98.6 | 1,141.7 | 1,035.8 | 2,276.1 |
| Сonsumer and other loans to individuals | 5.6 | 892.6 | 0.5 | 898.7 |
| Mortgage loans to individuals | 5.0 | 735.4 | 1.2 | 741.6 |
| Car loans to individuals | 0.5 | 80.1 | 0.1 | 80.7 |
| Total | 268.8 | 4,975.0 | 2,548.8 | 7,792.6 |
For the purpose of these consolidated financial statements, all not past due collectively assessed loans to legal entities are classified in three quality groups presented in the tables above with group 1 loans being of the highest quality. The
For the purpose of these consolidated financial statements, all not past due loans to individuals are combined into three groups presented in the tables above. The
As defined by the Group for the purposes of internal credit risk assessment, loans fall into the “non-performing” category when a principal and/or interest payment becomes more than 90 days overdue.
As at 31 December 2012 the outstanding non-performing loans were as follows:
| In billions of Russian Roubles | Gross loans | Provision for impairment | Net loans | Provision for impairment to gross loans |
|---|---|---|---|---|
| Commercial loans to legal entities | 190.4 | (163.4) | 27.0 | 85.8% |
| Specialised loans to legal entities | 83.2 | (71.4) | 11.8 | 85.8% |
| Сonsumer and other loans to individuals | 45.9 | (37.4) | 8.5 | 81.5% |
| Mortgage loans to individuals | 29.0 | (24.4) | 4.6 | 84.1% |
| Car loans to individuals | 2.5 | (2.1) | 0.4 | 84.0% |
| Total non-performing loans and advances to customers as at 31 December 2012 | 351.0 | (298.7) | 52.3 | 85.1% |
As at 31 December 2011 the outstanding non-performing loans were as follows:
| In billions of Russian Roubles | Gross loans | Provision for impairment | Net loans | Provision for impairment to gross loans |
|---|---|---|---|---|
| Commercial loans to legal entities | 153.1 | (145.3) | 7.8 | 94.9% |
| Specialised loans to legal entities | 199.5 | (161.2) | 38.3 | 80.8% |
| Сonsumer and other loans to individuals | 28.0 | (25.8) | 2.2 | 92.1% |
| Mortgage loans to individuals | 24.7 | (23.7) | 1.0 | 96.0% |
| Car loans to individuals | 2.2 | (2.1) | 0.1 | 95.5% |
| Total non-performing loans and advances to customers as at 31 December 2011 | 407.5 | (358.1) | 49.4 | 87.9% |
Provisions for loan impairment. The analysis of changes in provisions for loan impairment for the year ended 31 December 2012 is presented in the table below:
| In billions of Russian Roubles | Commercial loans to legal entities | Specialised loans to legal entities | Сonsumer and other loans to individuals | Mortgage loans to individuals | Car loans to individuals | Total |
|---|---|---|---|---|---|---|
| Provision for loan impairment as at 1 January 2012 | 299.6 | 293.7 | 37.3 | 28.8 | 3.1 | 662.5 |
| Net provision charge/ (net recovery of provision) for loan impairment during the reporting period | 41.2 | (29.9) | 11.2 | (0.8) | (0.2) | 21.5 |
| Foreign currencies translation | — | (0.2) | — | (0.2) | — | (0.4) |
| Loans and advances written off during the reporting period | (30.9) | (83.0) | (3.0) | (1.3) | (0.4) | (118.6) |
| Provision for loan impairment as at 31 December 2012 | 309.9 | 180.6 | 45.5 | 26.5 | 2.5 | 565.0 |
The analysis of changes in provisions for loan impairment for the year ended 31 December 2011 is presented in the table below:
| In billions of Russian Roubles | Commercial loans to legal entities | Specialised loans to legal entities | Сonsumer and other loans to individuals | Mortgage loans to individuals | Car loans to individuals | Total |
|---|---|---|---|---|---|---|
| Provision for loan impairment as at 1 January 2011 | 312.9 | 320.8 | 36.1 | 29.3 | 3.4 | 702.5 |
| Net provision charge/ (net recovery of provision) for loan impairment during the reporting period | 10.7 | (15.7) | 3.0 | 1.1 | (0.3) | (1.2) |
| Foreign currencies translation | (0.5) | (1.1) | (0.2) | — | 0.1 | (1.7) |
| Loans and advances written off during the reporting period | (23.5) | (10.3) | (1.6) | (1.6) | (0.1) | (37.1) |
| Provision for loan impairment as at 31 December 2011 | 299.6 | 293.7 | 37.3 | 28.8 | 3.1 | 662.5 |
Renegotiated loans. Information on loans whose terms have been renegotiated, as at 31 December 2012 and 31 December 2011 is presented in the table below. It shows the amount for renegotiated loans before provision for loan impairment by class.
| In billions of Russian Roubles | Commercial loans to legal entities | Specialised loans to legal entities | Сonsumer and other loans to individuals | Mortgage loans to individuals | Car loans to individuals | Total |
|---|---|---|---|---|---|---|
| 31 December 2012: | ||||||
| Not past due collectively assessed loans | 477.2 | 379.8 | 3.0 | 8.2 | 0.5 | 868.7 |
| Other renegotiated loans | 90.4 | 37.1 | 2.0 | 6.4 | 0.6 | 136.5 |
| Total renegotiated loans before provision for loan impairment | 567.6 | 416.9 | 5.0 | 14.6 | 1.1 | 1,005.2 |
| 31 December 2011: | ||||||
| Not past due collectively assessed loans | 552.0 | 329.5 | 7.0 | 5.4 | 0.5 | 894.4 |
| Other renegotiated loans | 85.1 | 42.1 | 3.3 | 6.0 | 0.7 | 137.2 |
| Total renegotiated loans before provision for loan impairment | 637.1 | 371.6 | 10.3 | 11.4 | 1.2 | 1,031.6 |
Disclosure of corporate loans before provision for loan impairment by business size of borrowers. Sberbank Group members apply its own management policies in allocating corporate borrowers according to business size.
| In billions of Russian Roubles | 2012 | 2011 |
|---|---|---|
| Major clients | 4,164.6 | 3,557.0 |
| Large clients | 1,964.4 | 1,439.3 |
| Medium business | 1,379.5 | 1,099.2 |
| Small business | 719.3 | 481.1 |
| Total loans and advances to legal entities before provision for loan impairment | 8,227.8 | 6,576.6 |
Investments in finance lease. Included in specialised loans to legal entities are net investments in finance lease. The analysis of net investments in finance lease as at 31 December 2012 and as at 31 December 2011 is as follows:
| In billions of Russian Roubles | 2012 | 2011 |
|---|---|---|
| Gross investment in finance lease | 152.4 | 134.9 |
| Unearned future finance income on finance lease | (46.5) | (46.6) |
| Net investment in finance lease before provision for impairment | 105.9 | 88.3 |
| Less provision for impairment | (3.3) | (2.3) |
| Net investment in finance lease after provision for impairment | 102.6 | 86.0 |
The contractual maturity analysis of net investments in finance lease as at 31 December 2012 is as follows:
| In billions of Russian Roubles | Net investment in finance lease before provision for impairment | Provision for impairment | Net investment in finance lease after provision for impairment |
|---|---|---|---|
| Not later than 1 year | 31.3 | (1.4) | 29.9 |
| Later than 1 year but not later than 5 years | 62.8 | (1.6) | 61.2 |
| Later than 5 years | 11.8 | (0.3) | 11.5 |
| Total as at 31 December 2012 | 105.9 | (3.3) | 102.6 |
The contractual maturity analysis of net investments in finance lease as at 31 December 2011 is as follows:
| In billions of Russian Roubles | Net investment in finance lease before provision for impairment | Provision for impairment | Net investment in finance lease after provision for impairment |
|---|---|---|---|
| Not later than 1 year | 26.6 | (0.7) | 25.9 |
| Later than 1 year but not later than 5 years | 48.9 | (1.3) | 47.6 |
| Later than 5 years | 12.8 | (0.3) | 12.5 |
| Total as at 31 December 2011 | 88.3 | (2.3) | 86.0 |
The analysis of minimal finance lease receivables as at 31 December 2012 and as at 31 December 2011 per contractual maturity is as follows:
| In billions of Russian Roubles | 2012 | 2011 |
|---|---|---|
| Not later than 1 year | 34.5 | 28.5 |
| Later than 1 year but not later than 5 years | 88.9 | 72.0 |
| Later than 5 years | 29.0 | 34.4 |
| Total | 152.4 | 134.9 |
Economic sector risk concentration
Economic sector risk concentrations within the customer loan portfolio as at 31 December 2012 and as at 31 December 2011 are as follows:
| In billions of Russian Roubles | 2012 | 2011 | ||
|---|---|---|---|---|
| Amount | % | Amount | % | |
| Individuals | 2,836.5 | 25.6 | 1,805.6 | 21.5 |
| Services | 1,962.5 | 17.7 | 1,658.5 | 19.8 |
| Trade | 1,304.3 | 11.8 | 1,134.8 | 13.5 |
| Food and agriculture | 862.4 | 7.8 | 703.9 | 8.4 |
| Machine building | 528.6 | 4.8 | 355.6 | 4.2 |
| Energy | 512.2 | 4.6 | 379.9 | 4.5 |
| Telecommunications | 489.2 | 4.4 | 332.0 | 4.0 |
| Metallurgy | 410.6 | 3.7 | 299.4 | 3.6 |
| Construction | 402.7 | 3.6 | 451.3 | 5.4 |
| Transport, aviation, space industry | 387.0 | 3.5 | 285.4 | 3.4 |
| Chemical industry | 378.2 | 3.4 | 340.2 | 4.1 |
| Government and municipal bodies | 370.4 | 3.3 | 268.1 | 3.2 |
| Oil and gas | 162.2 | 1.5 | 164.7 | 2.0 |
| Timber industry | 72.3 | 0.7 | 50.4 | 0.6 |
| Other | 385.2 | 3.6 | 152.4 | 1.8 |
| Total loans and advances to customers before provision for loan impairment | 11,064.3 | 100.0 | 8,382.2 | 100.0 |
“Services” category includes financial, insurance and other service companies, as well as loans granted to holding and multi-industry companies.
Refer to for the information on amounts in loans and advances to customers which are collateralised by securities received under reverse sale and repurchase agreements.
As at 31 December 2012 the Group had 20 largest corporate borrowers with aggregated loan amounts due from each of these borrowers exceeding 59.1 billion RUB (2011: 20 largest borrowers with loan amounts due from each of these borrowers exceeding 47.9 billion RUB). The total aggregate amount of these loans was 2,140.3 billion RUB or 19.3% of the total gross loan portfolio of the Group (2011: 1,956.2 billion RUB or 23.3%).
Interest income accrued on loans, for which individual impairment has been recognised, for the year ended 31 December 2012, comprised 7.3 billion RUB (2011: 8.9 billion RUB).
For the year ended 31 December 2012 in interest income on loans and advances to customers in the consolidated income statement are included fines and penalties received from borrowers in the amount of 6.3 billion RUB (2011: 8.7 billion RUB).
The estimated fair value of loans and advances to customers is disclosed in Note 35. Currency and maturity analyses of loans and advances to customers are disclosed in Note 32. The information on related party balances is disclosed in 37 and 38.