Financial Highlights of Sberbank's Operations for 11 Months 2008 Under Russian Accounting Standards (RAS) (non-consolidated)

Dec 31, 2008

22 December 2008, Moscow

Please note that herein, for compatibility purposes, growth rates for 2008 were calculated using the Bank’s internal methodology introduced on 1 January 2008 following the introduction of the new accounting rules (See the Bank of Russia’s Regulation No.302-P). The growth rate of the bank’s regulatory capital is calculated from the bank’s capital as of 1 January, 2008, which amount includes the effects of the events after the reporting date.

In the past 11 months of complicated economic conditions both in Russia and globally Sberbank's lending business showed a high rate of growth. Corporate loan portfolio grew by 25.5% to about RUB3,900 bn. Retail loans portfolio grew by 33.5% to nearly RUB 1,270 bn. At the same time retail loans portfolio growth of RUB317 bn for 11 months of 2008 exceeded the growth of RUB225 bn for the equivalent period last year.

In November 2008, more than RUB440 bn were extended in loans to corporates and about RUB58 bn in loans to individuals. Moreover, Sberbank provided RUB20 bn to corporate clients by purchasing bonds issued by Russian companies from transport, energy, telecom and communications industries as well as fertilizer producers and aircraft manufacturers.

Given current economic environment Sberbank keeps true to a conservative risk management policy. Provisioning ratio is 3.8% whereas overdues make 1.7% of the portfolio which means 2.3 coverage ratio.

The Bank generates good return on its lending operations: stable for retail portfolio and even growing for corporate portfolio this year.

Investment in securities has remained unchanged at RUB513 bn. The Banks securities portfolio still consists of mainly federal debt securities used for liquidity management purpose. 11-month gain on operations with securities recognized through P&L was RUB26 bn.

The Bank's funding base increased due to inflow of retail deposits and corporate funds as well as through subordinated loans from the Bank of Russia.

For the first 11 months of 2008 deposits from legal entities increased by RUB425 bn, which is a 32% year-to-date growth. The inflow of legal entities’ deposits continued in November as well. However, in November RUB100 bn worth deposits raised through the Ministry of Finance - auctions matured decreasing the balance of corporate accounts by RUB84 bn.

Balances of individual accounts showed an 11-month increase of RUB265 bn exceeding RUB2,920 bn. November growth made RUB13.3 bn. As of 1 November 2008 Sberbank's share of retail funds market was 52.3%.

Bank of Russia's subordinated loans made another important source of funding for Sberbank amounting to RUB300 bn. as of 1 December, 2008.

Profit before tax for the past 11 months of 2008 was RUB146.0 bn, net profit totaled RUB113.2 bn. The figures for 11 months of 2007 were RUB148.9 bn and RUB118.4 bn respectively. This change can be accounted for by lower income from operations with securities due to current economic environment and by substantial income received last November through one-off disposal of significant RF eurobonds portfolio due 2018.

Sberbank accounts for 46% of the aggregate 10-month 2008 pre-tax profit of the Russian banking sector.

Cost/Income ratio of 41.9% was 4.2 percentage point better than in 2007. For 11 months of 2008 net operating income growth outpaced the increase of operating expenses as a result of cost-cutting policy.

Sberbank's regulatory capital reached RUB1,087.5 bn., increasing by 60% year-to-date through net profit and the Bank of Russia subordinated loans.