2018 annual report · 2019-08-07 · integral part of the economy of kazakhstan. sberbank is the...

2018ANNUAL REPORTof Subsidiary Bank

SberbankJoint Stock Company

TABLE OF CONTENTS:

2

1. Speech of the Management of SB Sberbank JSC• Speech of the Chairman of the Board of Directors of SB Sberbank JSC• Speech of the Chairman of the Management Board of SB Sberbank JSC

2. Information about SB Sberbank JSC:• Sberbank Group• History of SB Sberbank JSC • Main events of 2018

3. Corporate Governance of SB Sberbank JSC :• Organizational Structure• Board of Directors• Production structure • Management Board

4. Financial Indicators for 2018:• Financial and Economic Indicators• Balance Sheet Structure Analysis under IFRS

5. Business Report of 2018:• Operating Activity• Banking Sector• Retail Business• Corporate Business• Branch Network• Information Technology• Marketing activity• Risk Management• Social Responsibility• Human Resources• Development Prospects

6. Financial Reporting of SB Sberbank JSC

7. Additional information:• Main Business Contacts• Details of SB Sberbank JSC

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3

Speech of the Management of SB Sberbank JSC

4

SPEECH OF THE CHAIRMAN OF THE BOARD OFDIRECTORS OF SB SBERBANK JSCDear shareholders, clients and colleagues!

I am pleased to announce that following theresults of 2018 SB Sberbank JSC became the secondlargest financial institution of Kazakhstan interms of assets, having exceeded the growth rate ofthe national market twice. In 2018 Sberbank's profitincreased by 3 times and amounted to 41.2 billiontenge. Reliability and solid growth of SB SberbankJSC are acknowledged by Fitch Ratingsinternational agency at "BB+"/ outlook "Positive". Iam proud of our results, we have fulfilled thegoals set in the development strategy. I expressgratitude to the whole team of Sberbank inKazakhstan and each employee.

We, as before, intend to constantly improvethe quality of service. So, in 2018 we started issuingloans to individuals online through the bank’swebsite and mobile application, provided theopportunity to pay for purchases in a contactlessway using a smartphone, made online ordering anddelivery of payment cards available withoutvisiting office, started selling insurance products.

Sberbank in Kazakhstan has succeeded in thedevelopment of corporate business by increasingthe number of active clients for the year by 15%. Wefocused on attracting clients in the small andmedium-sized enterprise segment, where the loanand deposit portfolios increased twice. The Banklaunched online guarantees, online foreignexchange contracts, online overdraft and FXplatform.

Sberbank is always striving to be at theforefront of the digital transformation of the

banking sector. Our goal is to save client time, sowe intend to provide online access to 70% of retailproducts and services of the Bank. In 2019 the Bankplans to develop a product line for corporateclients and offer even more profitablepersonalized products developed based on analysisof customer behavior.

In the sphere of small and medium-sizedenterprises our clients will receive about 20 newremote services, and will also be able to acquire theEvotor smart terminals that have provedthemselves in Russia. Thanks to such services, clientswill be able to more effectively conduct theirbusiness. We also intend to increase the speed ofcross-border transactions between the businessstructures of Kazakhstan and Russia. As in Russia,Sberbank in Kazakhstan is increasinglytransforming from a credit institution to atechnology company with its own ecosystem. Thisrests a great responsibility upon us, but at the sametime makes us closer to a client.

I express my personal appreciation to eachclient for choosing our bank. Every day we set newambitious goals to effectively support yourbusiness by offering the most modern bankingservices.

Sincerely,Chairman of the Board of Directors of SB Sberbank JSC

I.B. Kolomeiskiy

5

Dear clients, partners and colleagues!

SPEECH OF THE CHAIRMAN OF THEMANAGEMENT BOARD OF SB SBERBANK JSC

At the end of 2018 Sberbank demonstrated adynamic growth of financial indicators. The Bankranked 2nd in terms of assets. The Bank's net profitincreased three times up to 41.2 billion tenge.

It was possible to achieve such resultsprimarily due to the coordinated work of astrong and professional team of employees, as wellas thanks to the trust and support of our clients.Today, Sberbank has more than 43.2 thousandcorporate and about 2 million retail clients. I candefinitely say that our Bank has become anintegral part of the economy of Kazakhstan.Sberbank is the sole Kazakhstan bank that servicesclients in five languages: Kazakh, Russian, English,Turkish and Chinese. Especially for this purpose aunique subdivision, International Desk, is created,which has been successfully servicing more than athousand international companies during 5 years.

Technologies are one of the main areaswhere we invest. Here we see the development ofinnovative technologies in two planes. The first isto increase productivity. The second is theintroduction of new products using hightechnologies. Therefore, we continue to form thesystem of accessibility to our products in the 24/7format through online services.

The main capital of the Bank were and stillare employees that are professional, result-oriented, ambitious and involved in the process,talented and efficient. In turn, the Bank seeks tocreate the most comfortable conditions for thework of its employees. The formation of a

corporate culture aimed at attracting anddisclosing the potential of prospective specialistsis the key to high quality of customer service.

I extend my gratitude to the entire staff of SBSberbank JSC for coordinated and fruitful effort,and our clients and partners for support andinspiration!

Sincerely,Chairman of the Management Board of SB Sberbank JSC

A.I. Kamalov

6

Information about

SB Sberbank JSC

7

Today, Sberbank PJSC is the largest bank inRussia and one of the leading globalfinancial institutions. Sberbank accountsfor about a third of the assets of the entireRussian banking sector. Sberbank is a keylender for the national economy and holdsthe largest share in the deposit market.Sberbank's services are used by more than 145million clients in 22 countries around theworld. The Bank has the most extensivebranch network in Russia: about 15 thousandservice points. The Bank's foreign networkconsists of subsidiary banks, branches andrepresentative offices in the UK, USA, CIS,Central and Eastern Europe, India, China, andother countries.

SBERBANK GROUP

We are a teamI am a leader

All for the client

Mission and values

Our Mission

We give people confidence andreliability, we make their life better byhelping realize their hopes and dreams.

Our ValuesOur values are the foundation for an attitude to life andwork, an inner compass we use to make decisions in difficultsituations, principles that we remain committed to at all timesand anywhere.

Benchmarks that help us make the right decision in anysituations:

• I assume responsibility formyself and what is happeningaround

• I am honest with myself,colleagues and clients

• We evolve all the time andimprove myself, our Bank andour surroundings

• We are willing to help eachother to achieve a commongoal

• We help our colleagues togrow and develop

• We are open, treat each otherwith respect and trust ourcolleagues

• All our operations revolve aroundand serve the interests of ourclients

• We want our clients to be surprisedat and delighted with our qualityof service and attitude

• We exceed our clients' expectations

8

SB SBERBANK JSC (Kazakhstan)

• is a part of international Sberbank group; has thirteen-yearsuccessful experience in the financial market of the Republic ofKazakhstan and ranks 2nd in terms of assets and deposits amongsecond-tier banks of the Republic of Kazakhstan;

• is the largest foreign bank in Kazakhstan market;• is a universal Bank with a wide range of products and services;• operates in partnership with the state, is a key investor into

Kazakhstan's economy and a leader of the state entrepreneurshipdevelopment programs;

• has a branch network of 91 structural subdivision, 17 out of which arebranches; The central office of the Bank is located in Almaty.

Our awards and achievements

according to the results of the annual rating Top-30 Mobile Applications of Kazakhstan of the Association of Kazakhstan Internet Business and

Mobile Commerce (AKIB) and Intervale Kazakhstan company

The history of Subsidiary Bank Sberbank of Russia Joint StockCompany in Kazakhstan begins at the end of 2006, when Sberbank ofRussia, the flagship of the Russian financial system and the largestfinancial institution in Central and Eastern Europe, acquires 99.99% ofTexakaBank shares. In 2007 the Bank obtained a license to conductbanking and other operations made by banks in national and foreigncurrencies. SB Sberbank JSC has extensive dealings with the largest banksin the world, as well as extensive experience in working with clients andpartners engaged in various sectors of the economy. Today, SB SberbankJSC:

«The Most Innovative Bank»

among the retail banks of Central and Eastern Europe according to the Global Finance

magazine's international award

Sberbank Online ranked 2nd among bank mobile applications of

KazakhstanReliability and solid growth of SB Sberbank JSC are acknowledged by Fitch ratings.

In December 2018 Fitch Ratingsinternational rating agencyestablished the Bank's rating at "BB +" /outlook “Positive”.

9

In 2018 the Bank became the second largest bank in Kazakhstan market.

Main eventsof 2018

The Bank has reached the maximum value of net profit for the whole

time of operation in Kazakhstan

RANKS

in the market#

billion tenge

41,2

10

Corporate Governance

11

Organizational structure of corporate governance at SB Sberbank JSC

Board of DirectorsCompliance

Controller

General Shareholders Meeting

Corporate Secretary

Management Board

BoD Committee for Strategic Planning, HR and

Remuneration

Internal Audit Division

External Auditor

BoD Committee for Social Issues

BoD Committee for Internal Audit

General Shareholders Meeting of SB Sberbank JSC

The General Shareholders Meeting is the supreme governing body ofthe Bank. The exclusive competence of the General Shareholders Meetingincludes:

1. amending or approving a new version of the Bank's Articles ofIncorporation;

2. approving the Code of Corporate Governance and amendmentsthereto;

3. carrying out voluntary reorganization or liquidation of the Bank;4. making a resolution to increase the number of the Bank's authorized

shares or modify the type of the Bank's unallocated authorizedshares;

5. determining and modifying the terms of and procedure forconversion of the Bank's securities;

6. making a decision to issue securities convertible into the Bank'sordinary shares;

7. making a decision to exchange one type of allocated shares for sharesof another type, determining the terms of and procedure for suchexchange;

8. determining the number of members of the Returning Board and theirterm of office, electing new members and terminating existingmembers;

9. determining the number of members of the Board of Directors andtheir term of office, electing new members and terminating existingmembers; determining the amount, and procedure for payment,remuneration and compensation to members of the Board of Directorsfor the discharge of their responsibilities;

10. identifying the audit organization which audits the Bank;11. approving annual financial statements;12. approving the procedure for distribution of the Bank's net income for

the reporting financial year, making a resolution on payment ofdividends for ordinary shares and approving the amount of dividendper one ordinary share of the Bank;

13. making a resolution to withhold dividend for ordinary shares of theBank;

14. making a resolution on voluntary delisting of the Bank's shares;15. making a resolution on the Bank's participation in the creation or

operation of other legal entities or cessation as a member(shareholder) of other legal entities by way of transferring(acquiring) a portion or several portions of assets totaling twenty-five or more percent of all assets owned by the Bank;

16. determining the form of the Bank's notice to shareholders about theconvening of the General Shareholders’ Meeting and resolving tomake such information available in the press;

17. approving changes to the methodology (approving the methodology,if not approved at the constituent meeting) of valuation of sharessubject to repurchase by the Bank at the OTC market in accordancewith the Law “On Joint Stock Companies”;

18. approving the agenda of the General Shareholders Meeting;19. determining the procedure for provision of shareholders with

information about the Bank's operations, including identifying mediaoutlets;

20. approving internal normative documents that regulate the activitiesof the Board of Directors and the proceedings at the Bank'sshareholders meetings;

21. making a resolution to conclude a major transaction by the bank, as aresult of which the bank alienates (can alienate) property, the value ofwhich is fifty or more percent of the total balance sheet value of thebank's assets on the date of the decision on the transaction, as a resultof which fifty percent or more is alienated (may be alienated);

22. other matters the resolution of which is included in the exclusivecompetence of the General Shareholders Meeting pursuant to theBank's internal normative documents, laws of the Republic ofKazakhstan and/or the Bank's Articles of Incorporation.

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General Shareholders Meeting of SB Sberbank JSC

1. On approving annual financial statements of SB Sberbank JSC for 2017;2. On approving the procedure for distribution of the 2017 net income and

the amount of dividend per one ordinary share of SB Sberbank JSC;3. On shareholders complaints against the actions of SB Sberbank JSC and

its officials and the outcomes of their consideration;4. On identifying the audit organization responsible for the audit of SB

Sberbank JSC for 2018;5. On approving of the Articles of Incorporation of SB Sberbank JSC in new

version;6. On approving changes to the Corporate Governance Code of SB Sberbank

JSC;7. On approving amendments to the Regulation of the Board of Directors

of SB Sberbank JSC;8. On determination of the term of office of the Board of Directors of SB

Sberbank JSC;

The General Shareholders Meetings of the Bank held in 2018considered issues such as:

The Annual General Meeting of Shareholders held on April 27, 2018, hasdecided not to pay dividends according to the results of 2017.

13

The Board of Directors of SB Sberbank JSC as of December 31, 2018The Board of Directors is the Bank's body responsible for overall management of the Bank's operations other than on issues related to theexclusive competence of the General Shareholders Meeting.

N

o.Full name

Year of

birthPosition at SB Sberbank JSC Positions for the last three years

1

Igor Borisovich Kolomeyskiy (Elected

to the Board of Directors on April 28,

2017;

Elected as the Chairman of the Board

of Directors on April 28, 2017)

1971Chairman of the Board of

Directors of SB Sberbank JSCFrom 2017 -Senior Vice President, Head of Sberbank International Block of Sberbank PJSC

2

Natalya Nikolayevna Avdeyenko

(Elected to the Board of Directors on

April 25, 2014).

(change of the surname of a member of

the BoD from N.N. Lazareva to N.N.

Avdeyenko)

1970Member of the Board of Directors

of SB Sberbank JSC

From 2013 to 2017 -Managing Director, Head of International Transaction Block of Sberbank PJSC

From 2017 - Senior Managing Director of Corporate Development and Business Performance Department of Sberbank

International Block of SberbankPJSC

From 2016 - Member of Supervisory Board of BPS-Sberbank OJSC

From 2017 - Member of the Board of Sberbank JSC (Ukraine)

3Grigoriy Mikhailovich Anashkin


April 24, 2015).


of SB Sberbank JSC

From 2015 -Senior Managing Director for Foreign Banks, Head of Finance Block of Sberbank PJSC

From 2015 - Member of Supervisory Board of BPS-Sberbank OJSC

From 2017 - Member of Supervisory Board of Sberbank Europe A.G.


4Serik Akhmetzhanovich Akhanov


11.10.2017).

1951

Member of the Board of Directors

of SB Sberbank JSC –Independent

Director

From 2015 - Member of the Board of Directors - Independent Director of ATF Bank JSC;

From 2015 to 2018 -Member of the Board of Directors - Independent Director of IC Kazkommerts-Policy JSC

From 2016 -Kazakhstan Financier Association, Council Member, Honorary Chairman of the Council.Honored financier

5Aleksey Anatolyevich Ashurkov


April 28, 2017).


of SB Sberbank JSC

From 2016 -Senior Managing Director, Head of the Risks Block of Sberbank PJSC

From 2017 - Member of Supervisory Board, Member of Risk Committee, BPS-Sberbank JSC

From 2016 - Member of the Board of Directors of Denizbank Moscow JSC


6Pavel Sergeyevich Barchugov


April 28, 2017).


of SB Sberbank JSC

From 2017 - Senior Managing Director - Director of Corporate Solution and Business Performance Division, Sberbank PJSC

From 2014 - Deputy Chairman of Supervisory Board of BPS-Sberbank OJSC

From 2016 - Member of the Board of Directors of Denizbank A.S.

From 2017 -Member of Supervisory Board of DenizBank AG

From 2017 - Member of Supervisory Board of Sberbank Europe A.G.

7Denis Aleksandrovich Zvyagintsev


December 26, 2007).

1977



Director

From 2004 Head of Criminal Law and Process Chair, Federal State Budgetary Educational Institution of the Higher

Professional Education "Russian State Academy of Intellectual Property"

From 2014 to 2017 Financial and Construction Company Zapsibinterstroy LLC –Member of the Board of Directors

8Bakhytzhan Iztleuovich Isengaliyev


November 25, 2011).

1950



Director

From 2008 to 2017 Vice President, PetroKazakhstan JSC

From 2011 - Chairman of the Board of Trustees of DOM PF

9Aleksandr Ilyasovich Kamalov


November 14, 2012).


of SB Sberbank JSCFrom 2012 - Chairman of the Management Board of SB Sberbank JSC

10Vladimir Vyacheslavovich Sitnov


April 28, 2017).


of SB Sberbank JSC

From 2013 to 2018 -Chairman of Volga Region Bank of Sberbank PJSC, Samara

From 2018 - Senior Vice President of Sberbank PJSC 14

The exclusive competence of the Board of Directors of SB Sberbank JSCincludes the following issues:1. Identifying priority areas of the Bank's operations and development

strategy or approving the Bank's development plan in situations set forth inthe laws of the Republic of Kazakhstan;

2. Making a decision to convene the annual and extraordinary GeneralShareholders Meeting, identifying the agenda of the General ShareholdersMeeting, the date for drawing up the list of shareholders entitled toparticipate in the General Shareholders' Meeting in compliance with theterms of the Bank’s Articles of Incorporation;

3. Making a decision to allocate (sell) shares, including as relates to thenumber of shares to be allocated (sold), within the number of authorizedshares, the manner and price of allocation (sale);

4. Making a decision regarding the Bank's repurchase of allocated shares orany other securities, and the repurchase price;

5. Making preliminary approval of annual financial statements of the Bank;6. Approving regulations of the committees of the Board of Directors;7. Determining the terms of issuance of bonds and derivative securities of the

Bank and making a decision to issue same;8. Determining the number of members of the executive body and their term of

office, electing and terminating its manager and members;9. Determining the basic pay, remuneration, and bonus conditions for the

manager and members of the executive body;10. Determining the number of members of the Internal Audit Service and their

term of office, appointing and terminating its manager and members,determining the operating procedure of the Internal Audit Service, the basicpay, remuneration, and bonus conditions for employees of the InternalAudit Service;

11. Appointing, determining the term of office of, terminating, determining thebasic pay and remuneration conditions for the Corporate Secretary;

12. Determining the service fee of the audit organization for the audit offinancial statements and the appraiser for the market valuation ofproperty transferred in payment for the Bank's shares or subject to a majortransaction;

13. Approving documents regulating internal activities of the Bank (otherthan documents adopted by the executive body to organize the Bank'sactivities), approving the statement of general terms and conditions ofoperations, including documents on management of banking risks andequity, using the reserve capital, and the internal normative documentestablishing the conditions of and procedure for auctions andsubscription to the Bank's securities, other internal normative documents

related to the terms of reference of the Board of Directors in accordancewith the Articles of Incorporation, internal regulations of the Bank andlaws of the Republic of Kazakhstan;

14. Making decisions to create and close branches and representative officesof the Bank and approving their regulations;

15. Making decisions regarding the Bank's acquisition (alienation) of ten ormore percent of shares in (interest in the authorized capital of) other legalentities;

16. Making decisions on operating matters related to the competence of theGeneral Shareholders (Members) Meeting of a legal entity where the Bankowns ten or more percent of shares (interest in the authorized capital);

17. Increasing the Bank's liabilities by an amount that is equal to ten or morepercent of its equity;

18. Identifying information about the Bank or its operations which constitutesrestricted, commercial or otherwise legally protected secret;

19. Making decisions to enter into major transactions or related-partytransactions, with the exception of major transactions decision on theconclusion of which is made by the general shareholders meeting inaccordance with the Articles of Association of the Bank;

20. Approving the Budget, business plans, and reports on the execution of theBank's business plans;

21. Approving the list and materiality of banking operations and othertransactions execution of which requires preliminary approval of theBoard of Directors;

22. Determining the form of ballot papers for absentee (or in-person secret)voting on agenda items of the General Shareholders Meeting;

23. Determining the Bank's accounting policy;24. Hearing reports of the Chairman of the Bank's Management Board, the

regularity, substance and procedure for the provision of which will bedetermined by the Bank's Board of Directors;

25. Other matters not related to the exclusive competence of the GeneralShareholders Meeting pursuant to the Bank's internal normativedocuments, laws of the Republic of Kazakhstan and/or the Bank's Articles ofIncorporation.

44 meetings of the Bank's Board of Directors were conducted in 2018 (eitherin presentia or absentia form).

15

16

Committees of the Board of Directors of SBSberbank JSC and their functions

The Committee of the Board of Directors of SBSberbank JSC for Strategic Planning, Human Resourcesand Remuneration is a consultative and advisory bodyof the Board of Directors established to preparerecommendations and proposals on the developmentof the Bank's strategic objectives (DevelopmentStrategy), including the development of measurescontributing to the increase of the effectiveness ofthe Bank's activities in medium-term and long-termperspective, the monitoring of the functioning ofeffective risk management systems in the Bank,provision of the Board of Directors of the Bank withreliable and timely management reporting andinformation in accordance with the laws of theRepublic of Kazakhstan, as well as proposals on theBank's priorities in the personnel policy andremuneration issues to the members of the Board ofDirectors of the Bank, the Bank's Management Boardand the Corporate Secretary.

The Committee of the Board of Directors of SBSberbank JSC for Internal Audit Issues preparesrecommendations and proposals on monitoring ofthe effectiveness of corporate governance systems,risk management, internal control and monitoringof internal and external audit activities within thepowers conferred by the Board of Directors of theBank.

The Committee of the Board of Directors of SBSberbank JSC for Social Affairs is a consultative andadvisory body of the Board of Directors establishedto prepare recommendations and proposals oncreation and operation of the corporate socialresponsibility system of the Bank.

Remuneration of members of the Board of Directors in 2018

Remuneration 92,9 million tenge

Remuneration of members of the Board of Directors for the year is carriedout on the basis of the financial result achieved by the Bank, and also takinginto account the norms and requirements of the legislation of the Republicof Kazakhstan.

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Production Structure ofSB Sberbank JSC

Corporate Business

IT technologies

Digital transformation of the Bank: In 2018 the organizational structure of retail and IT blocks was improved.

Management Board

Retail Business

HR, Marketing Operating Activity

Risk Management

Finance

Problem debt

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Management Board ofSB Sberbank JSC

AleksandrIlyasovich Kamalov

Chairman of the Management Board

of SB Sberbank JSC

Denis AleksandrovichYamanov

Deputy Chairman of the Management Board of SB

Sberbank JSC

Yeldar AmantayevichTenizbayev


Sberbank JSC

Aleksey VladimirovichAkimov

Deputy Chairman of the Management Board for

Retail Business of SB Sberbank JSC

Nursultan Gabdil-Mazhitovich Taskaranov


Sberbank JSC

Remuneration of members of key management personnel in January–December 2018

Remuneration 1 129,8 million tenge

DividentsNumber of

ordinary shares

Cost of placement of 1

share, tenge

Authorized capital,

million tenge

On 31 December 2017 12 839 114 4.011 51,500

On 31 December 2018 12 839 114 4.011 51,500

Every ordinary share accords one vote and an equal right to receive dividends. All shares aredenominated in tenge.

The remuneration of the board members for the year is basedon the financial result achieved by the Bank, as well astaking into account the norms and requirements of thelegislation of the Republic of Kazakhstan.

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Management Board ofSB Sberbank JSC

Year of birth: 1974Work experience in the last three years: from 2012 to present Chairman of the Management Board

Aleksandr Ilyasovich KamalovChairman of the Management Board of SB Sberbank JSC

Year of birth: 1984Work experience in the last three years: from 2013 to present Deputy Chairman of the Management Board

Yeldar Amantayevich TenizbayevDeputy Chairman of the Management Board of SB Sberbank JSC

Aleksey Vladimirovich AkimovDeputy Chairman of the Management Board for Retail Business of SB Sberbank JSCYear of birth: 1976Work experience in the last three years: Previously held the position of Managing Director for Retail Sales, and from 2016 to present Deputy Chairman of the Management Board

Denis Aleksandrovich YamanovDeputy Chairman of the Management Board of SB Sberbank JSCYear of birth: 1980Work experience in the last three years: from 2013 to present Deputy Chairman of the Management Board

Nursultan Gabdil-Mazhitovich TaskaranovDeputy Chairman of the Management Board of SB Sberbank JSCYear of birth: 1978Work experience in the last three years: from 2012 to present Deputy Chairman of the Management Board

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Financial Indicators for 2018

21

Financial and economic indicators ofSB Sberbank JSC in 2018

NET PROFIT

41,2 billion tenge

NET INTEREST INCOME

71,9 billion tenge

OPERATING INCOME

PRE-PROVISION

120,7 billion tenge

NET COMMISSION INCOME

21,7 billion tenge

6,7% 7,3%8,9%267%

22

INTEREST INCOMEINTEREST INCOME

2018 2017 Growth rate

million

tenge

specific

weight

million

tenge

specific

weight% abc.

Loans and advance payments to

customers133,633 88.7% 122,481 81.4% 9.1% 11,152

Investment securities measured at fair

value through other comprehensive

income

10,797 7.2% - 0.0% 0.0% 10,797

Available-for-sale investment securities - 0.0% 17,322 11.5% -100.0% -17,322

Cash and cash equivalents 4,447 3.0% 9,392 6.2% -52.7% -4,945

Funds in other banks 1,115 0.7% 894 0.6% 24.7% 221

Investment securities carried at

amortized cost474 0.3% - 0.0% 0.0% 474

Held-to-maturity investment securities - 0.0% 448 0.3% -100.0% -448

Reverse repurchase agreements 100 0.1% 22 0.0% 354.5% 78

Trading securities 127 0.1% - 0.0% 0.0% 127

Total interest income 150,693 100% 150,559 100% 0.1% 134

2018 2017

million tengeAverage

balances

INTEREST

INCOME

Average

yield, %

Average

balances

INTEREST

INCOME

Average

yield, %

Assets

Cash and cash

equivalents143,997 4,447 3.1% 108,386 9,392 8.7%

Funds in other banks 15,377 1,215 7.9% 9,841 916 9.3%

Loans and advance

payments to

customers

1,074,454 133,633 12.4% 960,431 122,481 12.8%

Securities 185,568 11,398 6.1% 239,453 17,770 7.4%

Performing assets,

total1,419,396 150,693 10.6% 1,318,109 150,559 11.4%

In 2018 interest income increased slightlyand amounted to 150.7 billion tenge.

Compared to previous year, the averagereturn of performing assets decreased by 0.8percentage points and amounted to 10.6%.

The return of the loan portfolio was12.4% in the reporting period.

23

INTEREST EXPENSES

INTEREST EXPENSES


million

tenge

specific

weight

million

tenge

specific

weight% abc.

Term deposits of individuals -42,961 54.5% -36,499 49.7% 17.7% -6,462

Term deposits of corporate clients -20,796 26.4% -19,737 26.9% 5.4% -1,059

Funds from lending institutions -8,220 10.4% -9,644 13.1% -14.8% 1,424

Issued debt securities -4,208 5.3% -5,331 7.3% -21.1% 1,123

Current accounts of corporate

clients and individuals-2,166 2.7% -2,115 2.9% 2.4% -51

Repurchase Agreements with Securities -420 0.5% -124 0.2% 238.7% -296

Total interest expenses -78,771 100% -73,450 100% 7.2% -5,321

In 2018 interest expenses grew by 7.2% or5.3 billion tenge compared to 2017 andamounted to 78.8 billion tenge as of thereporting date.

The share of expenses for fundsattracted from customers accounted for83,7%, increased by 4,2 % compared to theprevious year.

The expenses of issued bonds accountedfor 5,3% (7,3 % in 2017). Expenses related tofunds from banks increased by 1 424 milliontenge and accounted for 10,4 % (13,1% in 2017).

2018 2017

million tengeAverage

balances

INTEREST

EXPENSES

Average

value, %

Average

balances

INTEREST

EXPENSES

Average

value, %

Liabilities

Funds from lending

institutions158,067 8,640 5.5% 151,956 9,768 6.4%

Funds from clients 1,407,658 65,923 4.7% 1,309,236 58,351 4.5%

Issued debt securities 52,671 4,208 8.0% 62,101 5,331 8.6%

Interest-bearing

liabilities, total1,618,396 78,771 4.9% 1,523,292 73,450 4.8%

24

NET COMMISSION INCOME million tenge 2018 year 2017 yearchange,

%

change,

abc.

Commission income 31,341 25,797 21.5% 5,544

Payment card

transactions11,254 7,224 55.8% 4,030

Settlement transactions 7,825 7,179 9.0% 646

Cash transactions 4,530 4,385 3.3% 145

Package offers 2,109 851 147.8% 1,258

Foreign exchange

transactions1,806 1,806 0.0% -

Granted guarantees 1,781 1,578 12.9% 203

Agent services 678 73 828.8% 605

Documentary settlements 260 1,656 -84.3% -1,396

Other 1,098 1,045 5.1% 53

Commission expenses -9,676 -5,597 72.9% -4,079

Net commission income 21,665 20,200 7.3% 1,465

The Bank's net commission income increased by 7.3% or1.5 billion tenge and amounted to 21.7 billion tenge as ofJanuary 1, 2019. Cash and settlement operations and feesfor payment card transactions account for the bulk ofcommission income.

The commission income generated in 2018 by cash andsettlement operations grew by 0.8 billion tenge, paymentcards — increased by 4.0 billion tenge compared to theprevious year.

NON-INTEREST INCOME

The Bank's non-interest income grewby 100.2% or 13,6 million tenge. Income onderivative financial instruments andoperations with foreign currency for2018 increased by 13,02 billion tenge.

million tenge 2018 year 2017 year change, %change,

abc.

Income from derecognition of investment securities

evaluated at fair value through other

comprehensive income

169 - 0.0% 169

Income net of expenses on investment securities

available for sale- 366 -100.0% -366

Income on derivative financial instruments and

operations with foreign currency26,453 13,436 96.9% 13,017

Income from government subsidy 1,144 - 0.0% 1,144

Net losses as the result of initial recognition of

financial assets evaluated at amortized cost-297 - 0.0% -297

Other income 933 2,144 -56.5% -1,211

Other expenses -1,310 -2,411 -45.7% 1,101

25

OPERATING EXPENSES

The Bank's operating expenses increased by 17.7% or 7,097 million tengefor the reporting period and amounted to 47.2 billion tenge as of January 1,2019.

The growth was due to an increase in: HR costs by 1,093 million tenge(by 5.0% compared to the previous year), Administrative and maintenanceexpenses by 4,705 million tenge (by 7.4% compared to the previous year),Expenses for depreciation of fixed assets by 1,201 million tenge or 25.9%

million tenge 2018 year 2017 year change, %change,

abc.

HR costs 22,803 21,710 5.0% 1,093

Taxes, other than the corporate income tax 1,088 1,013 7.4% 75

Administrative expenses 14,458 9,753 48.2% 4,705

Depreciation of fixed assets 5,846 4,645 25.9% 1,201

Expenses of guaranteed deposit insurance 2,955 2,932 0.8% 23

Total operating expenses 47,150 40,053 17.7% 7,097

26

Balance Sheet Structure Analysis

In 2018 the Bank's assets increased by 7.7% or133 billion tenge and amounted to 1,870 billiontenge on 01.01.2019.

The loan portfolio was 1,120.2 billion tenge asof 01.01.2019, having increased by 91.6 billion tengeor 8.9% over the year. The loan portfolioaccounted for 59.9% of the Bank's total assets.

Cash and cash equivalents grew by 18.2% or77.7 billion tenge and amounted to 505 billiontenge. Cash accounted for 27 % in assets as of thereporting date.

The share of funds in other banks in thetotal assets of the Bank grew by 0.1% compared tothe previous period and amounted to 17.6 billiontenge.

In 2018 the Bank's securities portfoliodecreased by 21.6% or 45 billion tenge andamounted to 163 billion tenge on 01.01.2019.

Assets


million

tenge

specific

weight

million

tenge

specific

weightabc. %

Cash and cash equivalents 505,008 27.0% 427,325 24.6% 77,683 18.2%

Funds in other banks 17,634 0.9% 13,120 0.8% 4,514 34.4%

Derivate financial

instruments- 0.0% 17 0.0% -17 -100.0%

Loans and advance payments

to customers1,120,232 59.9% 1,028,676 59.2% 91,556 8.9%

Investment securities 163,070 8.7% 208,066 12.0% -44,996 -21.6%

Assets related to current

corporate income tax- 0.0% 377 0.0% -377 -100.0%

Fixed assets 30,964 1.7% 32,062 1.8% -1,098 -3.4%

Intangible assets 16,312 0.9% 15,905 0.9% 407 2.6%

Other assets 17,105 0.9% 11,785 0.7% 5,320 45.1%

Assets, total 1,870,325 1,737,333 132,992 7.7%

Assets

under IFRS

27

Over the last year, the loan portfolio gross increasedby 86.1 billion tenge or 7.3%, including:

• the loan portfolio of legal entities decreased by 1%or 8.5 billion tenge;

• the loan portfolio of individuals increased by 30.6%or 94.6 billion tenge.


million

tenge

specific

weight

million

tenge

specific

weightabc. %

Loans of legal entities 865,941 68.2% 874,461 73.9% -8,520 -1.0%

Loans of individuals 403,490 31.8% 308,920 26.1% 94,570 30.6%

Total loan portfolio,

gross1,269,431 1,183,381 86,050 7.3%

Reserves for impairment

of loan portfolio-149,199 -154,705 5,506 -3.6%

Total loan portfolio,

net1,120,232 1,028,676 91,556 8.9%

LOANS TO CLIENTS

During 2018 key sectors that received loans included:

2018 2017Growth

rate

million

tenge

specific

weight

million

tenge

specific

weight

million

tenge

Consumer, residential loans, and

auto lending of individuals403,490 31.8% 308,920 26.1% 94,570

Trade 226,008 17.8% 237,711 20.1% -11,703

Production 218,626 17.2% 187,735 15.9% 30,891

Service 126,416 10.0% 136,305 11.5% -9,889

Transport 90,868 7.2% 83,134 7.0% 7,734

Operations with real estate 77,874 6.1% 81,798 6.9% -3,924

Mining industry 49,523 3.9% 59,068 5.0% -9,545

Construction 45,436 3.6% 33,330 2.8% 12,106

Agriculture 23,134 1.8% 20,606 1.7% 2,528

Education 5,598 0.4% 4,262 0.4% 1,336

Extraction of fuel and energy

minerals1,515 0.1% 29,888 2.5% -28,373

Other 943 0.1% 624 0.1% 319

Total loan portfolio 1,269,431 1,183,381 86,050

28

The Bank's liabilities increased by 7.8% or 123 billion tenge in 2018. Growthwas primarily driven by the deposit portfolio of legal entities andindividuals.

In 2018 funds from lending institutions increased by 2,4 % or 3.7 billionand amounted to 159,9 billion tenge. Over the year, funds of legal entitiesincreased by 7.7 % or 48.5 billion tenge, and funds of individuals increased by9,9% or 71.4 billion tenge. The loan of issued debt securities decreased by 6.3%or 3.5 billion tenge.


million

tenge

specific

weight

million

tenge

specific

weightabc. %

Funds from lending

institutions159,935 9.4% 156,199 9.9% 3,736 2.4%

Funds from corporate clients 676,096 39.9% 627,561 39.9% 48,535 7.7%

Funds from individuals 791,546 46.7% 720,113 45.8% 71,433 9.9%

Issued debt securities 50,944 3.0% 54,397 3.5% -3,453 -6.3%

Liabilities related to deferred

corporate income tax2,477 0.1% 7,077 0.4% -4,600 -65.0%

Other liabilities 15,251 0.9% 7,919 0.5% 7,332 92.6%

Liabilities, total 1,696,249 1,573,266 122,983 7.8%

LIABILITIES

29

Clients' funds remain the primary source of theBank's funding with specific weight of 86.5% of allliabilities.

Clients' funds amounted to 1,467.6 billion tenge asof 01.01.2019, having grown by 8.9% or 119.97 billiontenge, including:

• by 7.7% or 48.5 billion tenge for funds ofcorporate clients;

• by 9.9% or 71.4 billion tenge for funds ofindividuals.

The Bank increased its share in the market ofcustomer resources from 7.0% to 8.0% for legal entitiesand increased from 8.5% to 8.7% for funds ofindividuals.


million

tenge

specific

weight

million

tenge

specific

weightabc. %

Corporate clients

CURRENT ACCOUNTS 310,497 45.9% 274,053 43.7% 36,444 13.3%

Term deposits 365,599 54.1% 353,508 56.3% 12,091 3.4%

Funds from corporate

clients676,096 46.1% 627,561 46.6% 48,535 7.7%

Individuals

CURRENT ACCOUNTS 119,625 15.1% 94,593 13.1% 25,032 26.5%

Term deposits 671,921 84.9% 625,520 86.9% 46,401 7.4%

Funds from individuals 791,546 53.9% 720,113 53.4% 71,433 9.9%

Funds from clients 1,467,642 1,347,674 119,968 8.9%

FUNDS FROM CLIENTS

Deposits raised from corporate clients by sector of the economy are as follows:

Provision of services to consumers

Production

Trade

Real estate and construction

Insurance and pension funds

Financial, investment activities

Mining industry

Transport and communications

Agriculture

Oil and gas industry

Public administration

Other

30

As of 31.12.2018 debt securities include four tenge-denominated bond issues at Kazakhstan StockExchange with interest rates of 6.90%–11.00% p.a. andmaturity in 2019–2021.

In 2018 the Bank effected scheduled repayment ofsubordinated bonds TXBNb6, and also issued couponbonds Sberb9 in the amount of 16 billion tenge with thematurity date25.03.2019.

As of December 31, 2018, the book value of issuedbonds was 50.12 billion tenge, and as of December 31, 2017:53.56 billion tenge

1 January 2019 1 January 2018 Growth rate

million tenge million tenge abc. %

Authorized capital 51,500 51,500 0 0.00%

Retained earnings 79,925 70,645 9,280 13.1%

Other 28,452 38,798 -10,346 -26.67%

Total equity 159,877 160,943 -1,066 -0.66%

ISSUED DEBT SECURITIES

CAPITAL ADEQUACY

In 2018 the Bank successfully switched to IFRS 9. Thevalue of the capital adequacy ratios is higher thanprudential values. Attraction of a subordinated loanwas not required.

As of December 31, 2018, 12,838,826 issued shares (99.99%)are owned by the Parent Company.

Regulator's

requiremen

ts

1 January

2019

1 January 2018

Capital adequacy ratio k1-1 min 7,0% 11.5% 12.0%

Capital adequacy ratio k1-2 min 8,5% 11.5% 12.0%

Capital adequacy ratio k2 min 10,0% 11.6% 12.8%

31

Business Report

of 2018

32

OPERATING ACTIVITY

The year 2018 in the economy was intense - plummeting oftenge exchange rate, opening of Astana International FinancialCenter, transfer of UAPF funds to management companies,increase in prices for key Kazakhstan exports, expansion of trade,and growth in investment. In 2018 Kazakhstan tenge celebratedits 25th anniversary.

At the end of 2018 real GDP growth was 4.1%. The main driversof GDP growth were: mining and retail trade. Investment in fixedassets continued to play a key role in economic growth. For 12months of 2018 the volume increased by 17.2%.

In January-December 2018 the volume of industrialproduction amounted to 27.6 trillion tenge in current prices,which is by 4.1% more than in 2017. Inflation in annual termsamounted to 5.3%, prices for food products increased by 5.1%, non-food products by 6.4%, paid services by 4.5%. On 01.01.2019 thecountry's international provisions amounted to 88.6 billion USdollars, including the gold-value assets of the National Bank -30.9 billion US dollars, assets of National Fund in foreigncurrency - 57.7 billion US dollars. Revenues to the state budgetamounted to 10.9 trillion tenge, the main revenues from theorganizations of oil sector. Revenues to the republican budgetamounted to 8.9 trillion tenge. As of 01.01.2019 government debt,taking into account guarantees and sureties, amounted to 16trillion tenge, an increase of 14.7% compared with the beginningof 2018.

Analysis of Key Markets where SB Sberbank JSC Operates.Macro- and Microeconomic Changes in 2018.

GDP dynamics in 2018

4,0%

1q2018

4,1%

2q2018

4,1%

4q20183q2018

4,2%

• The dynamics of the physical volume of GDP in 2018 comparedwith the previous year slowed down (+ 1% annual growthagainst + 4% in 2017). The largest contribution to the economygrowth in 2018 was accounted for mining industry (outputgrowth by 4.6%), manufacturing (by 4%), wholesale and retailtrade (by 7.6%), transport and warehousing (by 4, 6%), real estateoperations (by 2.7%);

• The main contribution to GDP growth was made by net exportsand gross savings, which is due to the improved priceenvironment in the world markets of raw materials and theaccumulation of fixed capital.

• The growth in household spending is due to an increase inconsumer lending and a gradual slowdown in annualinflation.

33

Reduction of players continues in the banking sector. In 2018 the NBK revoked licensesfrom three second-tier banks. The main events of 2018 were: consolidation of the country'slargest banks and purchase by Forte Bank of the entire stake in KassaNova. In general, theprobability of reducing the number of players in the market will continue. In this case, theoccurrence of new players in the market in the near future is unlikely.

In the banking sector the main driver is still retail lending: express loans, unsecuredloans and installment cards. In 2018 there was a revival in the sector due to the adoptionof a number of state programs in the field of mortgage lending. The main sources forfinancing legal entities remain government programs. In 2018 the average interest rate onLE loans was 12.5% in tenge and 5.4% in freely convertible currency, on loans of individuals -18.7% in tenge and 15.6% in freely convertible currency. At the end of 2018 the NBK increasedthe base rate from 9% to 9.25% due to the increased proinflation risks.

BANKING SECTOR

An important event in 2018 is the launch of Apple Pay and Android Pay contactlesspayment system. Apple Pay was launched in six banks in the country. Kazakhstan is thethirtieth country in the world, which Apple gave the right to introduce the system. Bankscontinue to stimulate the growth of non-cash payments and look for new opportunitiesfor remote maintenance.

Banks continue to invest in the development of digitalization of business processes inorder to maintain competitiveness in the banking sector. One of the key trends in thedevelopment of domestic banking is the introduction of Big Data which in the future willallow banks to move to a more personalized approach to develop products for clients.

34

0,6%

Dynamics of the market share of the loan portfolio in TOP-10 STB by assets for 2017-2018.

0,9%

City EurasianBank

4,6% 4,8%

HCSBK

3,4%

4,9%

Forte

4,3%5,3%

ATF

5,9%6,7% 6,8%

7,9%

BCC

6,9%8,4%

Kaspi SBERBANK

8,5%9,2%

12,5%

10,2%

Tsesna

19,5%

28,7%

Halyk

2017 2018

+9,2 п.п.

In 2018 the loan portfolio of the banking sector increasedby 1.3% compared with 2017. The main driver of growth was retaillending against a backdrop of growth of household incomesand consumption. The main share of problem assets is still madeup of LE loans. At the same time, the share of loans with a delayof more than 90 days decreased by 19.7% due to the collectionand write-off of problem loans.

In 2018 the loan portfolio of SB Sberbank JSC increased by9.8% due to the active development of the retail business, as wellas the optimization of processes and the improvement of thequality of the offered service.

As of 01.01.2019 the share of 10 largest banks in the totalloan portfolio amounted to 86.9%, which reflects a high levelof concentration in the banking sector.

In 2018 SB Sberbank JSC continued to actively lend to key

sectors of Kazakhstan economy. The loan portfolio structureis formed in the framework of the general market lendingstructure, while the focus remains on lending to industry,trade, construction and transport. Lending to the real sectoris part of Sberbank’s policy to support the development ofKazakhstan’s economy.

1q

9731 097 1 060

1 137

2q

1 1471 217

3q 4q

1 1541 267

20182017

Dynamics of the Loan Portfolio of SB Sberbank JSC

billion tenge +9,8%

35

At the end of 2018 the total sector deposits increasedby 2.2%. The main increase was due to deposits ofindividuals (+ 7%). The share of sector deposits in foreigncurrency decreased from 47.6% to 46.8% due to the activework of the regulator to reduce the level ofdollarization of the funding base in the sector.

In 2018 the total volume of deposits of individualsand LE at SB Sberbank JSC increased by 10.1% compared with2017 due to the trust of clients shown to the Bank. Thevolume of LE deposits increased by 11.2%, and deposits ofindividuals by 9.2%.

The Bank is the largest foreign bank in Kazakhstan interms of assets, loan portfolio and deposits.

1q

1 1101 256 1 187

1 293

2q

11901 337

3q 4q

1 2921 423

20182017

Dynamics of Funds Attracted of SB Sberbank JSC

billion tenge+10,1%

2,0%

Dynamics of the market share of the deposits in TOP-10 STB by assets for 2017-2018.

3,2%

City EurasianBank

3,1% 3,9%

HCSBK

9,4%

4,1%

Forte

4,0%4,4%

ATF

4,9% 5,3% 5,7% 6,2%

BCC

6,2% 6,2%

Kaspi SBERBANK

7,7% 8,4%

5,9%7,2%

Tsesna

21,4%

38,2%

Halyk

+16,8п.п.

2017 2018

36

The bank follows generally accepted trends in theformation of the structure of the loan portfolio focusingon those industries where there is a large growth dynamics.

Comparison of the sectoral structure of the loanportfolio of the banking sector of the Republic of Kazakhstanand SB Sberbank JSC in 2018

Key factors at determination of priority lending sectorsof the economy:

• Working with the industrial and construction sectorsdemonstrates the confidence of enterprises of these industriesin the activities of Sberbank, and also allows to generate stablecash flows in the long term in view of the existing partnership.

• Within development of industrial sector the specialattention is paid to lending of manufacturing industryincluded in priority programs of development andindustrialization of economy. Lending to manufacturingindustry reflects the current economic and consumer trends:the growth of consumption of domestic food products, demandfor construction and facing materials due to the continuinghigh rates of construction, external demand for products ofmetallurgical industry.

• Agricultural sector, traditionally, is one of the mostrisky directions of money placement, including due to theestablished business practice within the CIS. Thereof, the Banklimits own investments in this sector. This sector will remain ahigh-risk segment with low investment attractiveness for theBank without launching government programs to develop theagro-industrial complex

• An important priority for the Bank may be an activity intransport sector. Stabilization of commodity prices andgradual increase in demand for products of Kazakhstan'sexport will contribute to recovery of lending to this segmentof the economy.

Such approach allows in the best way to strengthen theposition of Sberbank in the STB market, and also to implement thesynergetic potential of interaction of the financial marketand real sector of economy.

37

RETAIL BUSINESS

• At the end of 2018 the number of active clients increased by147 thousand people or by 15%.

• In 2018 the growth in the loan portfolio of the retailbusiness amounted to 32.1%, which, in turn, is more than theincrease in the market by 1.8 times.

• According to the results of 2018 the loan portfolio of theretail block amounted to 369 billion tenge with sales ofloans to individuals of 228 billion tenge, including: The consumer loan portfolio increased by 50% compared

with 2017 and amounted to 195.9 billion tenge. The auto loan portfolio increased by 18% compared with

2017 and amounted to 35.7 billion tenge. The mortgage loan portfolio increased by 16% compared

with 2017 and amounted to 137.3 billion tenge.• In 2018 the market share in loans was 7.6%.• In 2018 the balance of funds attracted increased by 9.1%

outperforming the market growth rate by 1.4 times.• The increase in the issue of payment cards amounted to 319

thousand cards in 2018.• The share of online products reached 8.4% in the 4th

quarter of 2018.• The number of active clients of Sberbank Online grew by 62%

and reached 298 thousand people.

The results in the retail business were achievedthrough the implementation of the followingactivities and programs:

Lending:

Reduction in time to make a decision on loans:• up to 5 min. - unsecured loans and low-risk credit cards• up to 45 min. - secured loans (preliminary decision)

Reduction in time of issue of:• auto loan from 7 days to 1 days• secured loans from 14 days to 7 days• unsecured loan: day per day to the client's card

Improvement of terms for products: Auto loan, Mortgage,for Emergency needs.

Optimization of processes for unsecured loans and autoloans

Card and Loan Applications in Sberbank Online have beenimplemented without registration with the application.

Introduction of online lending process for unsecuredloans

Launch of state program for residential mortgagelending 7-20-25

Launch of market mortgage product Baspana Hit

38

The results in the retail business were achieved through theimplementation of the following activities and programs:

Digital and payment cards

• Launch of instant card issue (7 minutes)• Launch of address delivery to the client of debit cards in Almaty

and Astana• Issue of Children's card• Introduction of a flagship card product “Sberbank All in” with

cashback and zero fees for withdrawing, maintaining, issuing acard, as well as for transfers to the Bank's cards

• One of the first banks which is launched Apple pay and Sberbank Payapplication for payment by smartphones on Android

• Issue of FIFA card product related to the World Cup• Transfer of self-service devices to a new interface• Implementation of a new design in Sberbank Online• Implementation of Sberbank Online for VIP clients• Introduction of early loan repayment in self-service terminal,

Sberbank Online• Implementation of the possibility of receiving a notification of the

reason for blocking a payment card in Sberbank Online• Launch of co-brand payment card Lamoda• Sberbank Online shows the amount of fees charged for transfers to

payment cards• Bank clients with Visa Platinum and Visa Infinite payment cards can

visit airport lounge rooms underLounge Key program free ofcharge

• Implementation of the possibility of obtaining payment carddetails through self-service devices

• Intra-bank transfers by details in SBOL• Introduction of Kazakh language on self-service devices• Introduction of the possibility of obtaining information about

the loan on self-service devices with confirmation via SMS• Possibility of sending a deposit agreement to an e-mail through

SBOL.

Other commission products

• Introduction of life insurance and loss of labour capacityunder the issue of secured loans

• Introduction of Personal Lawyer remote legal support service• Implementation of online service for insurance of persons

traveling abroad under the platform of the Bank's partner• Launch of a new unique product in the market of Kazakhstan,

cumulative life insurance "The Gold of Nomads", for clients ofPremier and First.

39

CORPORATE BUSINESS

In 2018 the Bank financed the country’s economy in the amount of892.8 bln. tenge.

1846 projects for the total amount of 511.43 bln. tenge wereapproved within the State Business Road Map 2020 Program.

In 2018 the number of active corporate clients increased by 15.5%and amounted to 45 thousand companies.

The Bank puts special focus on the development of remote servicechannels. At the end of 2018 payments made by legal entities throughthe Internet Office system accounted for 97.5% of all payments.

Main events of 2018:

Sberbank is the largest financial institute of the Republic ofKazakhstan. Sberbank is the first in terms of financing among foreignSTB in the Republic of Kazakhstan. Support from parent Bank andsynergy with Sberbank Group allow stating that the leader's positionsamong foreign banks will remain in the next 5 years.

Significant companies of Kazakhstan, such as Kazakhstan UtilitySystems LLP, MMC Kazakhaltyn JSC, Mining Technologies LLP, Bayan SuluJSC, Green Capital LLP have been financed. Sberbank is an activeparticipant in most government programs with the participation ofvarious development institutions (Damu EDF, Kazakhstan DevelopmentBank JSC (KDB), etc.).

The construction of a plant for the production of buckwheat wasfinanced and a mill complex was launched in Kostanay, production ofdoped aluminum was organized in Pavlodar SEZ, a multidisciplinarymedical center was built and equipped in Rudniy, production capacitiesof mineral fertilizers in the special economic zone “Astana - newcity”were expanded in the framework of Business Road Map 2020Program.

In particular, Karat LLP (for the purchase of equipment for milland automated pasta production line with a capacity of 1000 kg / h) andShymkentmay JSC (for the construction of a plant for the refining ofvegetable oil and the purchase of equipment) were financed under theLarge Business Financing Program of KDB.

Sberbank was the first commercial bank to start financing underNurly Zher program. Comfort House multi-apartment residentialcomplex has been built in Karaganda with the support of Sberbank. TheBank has financed Eurasia Building construction company in theamount of KZT 500 million to complete the house construction.Residential houses were built in Aktobe and Kyzylorda with the supportof Sberbank. Ьore than 8 thousand square meters of housing areconstructed in Atyrau, Uralsk and Shymkent.

40

Financing programs within government support of small and medium-sized enterprises:

• SB Sberbank JSC has additionally received funds in the amount ofKZT 4.1 billion in the framework of the Productive Employment andMass Entrepreneurship Development Program. The total programamount was KZT 7.6 billion.

• Sberbank has received funds in the amount of KZT 19.5 billion as partof the programs of Agrarian Credit Corporation JSC ;

• SB Sberbank JSC has additionally received funds in the amount of 4.5billion tenge from EDF Damu JSC as part of the program forfinancing regional priority SME projects “Damu Regions III”.Thetotal program amount was 18.8 billion tenge;

• SB Sberbank JSC has additionally received funds in the amount ofKZT 1.3 billion from EDF DAMU JSC in the framework of the RegionalFinancing Programs for Small and Medium-sized Private Enterprises.

• SB Sberbank JSC has additionally received funds in the amount ofKZT 3.2 billion from EDF DAMU JSC in the framework of the Small andMedium-sized Enterprises Lending Program in the manufacturingsector. The total program amount was KZT 16.9 billion.

• Commission income from documentary operations and tradefinance transactions with financial institutions amounted to 335.2million tenge in 2018;

• 31 deal are made with foreign financial institutions for insurancecoverage of EIC KazExportGarant JSC for the total amount of 359.1million Russian rubles;

• 14 transactions were financed in the framework of pre-exportfinancing program of EIC KazakhExport JSC for a total amount of2,731.7 million tenge. 3 new clients were attracted: Shymkentmay JSC,Kaynar-AKB LLP, Kazgiprotsvetmet LLP;

• General Interbank Market Operation Agreements, ISDA agreementsand correspondent account (loro) contracts have beenconcluded with 11 financial institution.

• An Agreement of connection of SB Sberbank JSC to Sberbank FINLINEcash settlement system has been concluded with Sberbank PJSC.

International Business:

41

The Bank has developed a product line for corporate businesswhich includes products, such as:

• Corporate lending means the funding of the borrower's current operations,business expansion and modernization. The loan is repaid at the expense of cashflows generated by current operations, for up to 3 years.

• Overdraft means the financing for making urgent payments of borrower attemporary absence of funds on its account to perform ongoing activities. Theloan is repaid at the expense of cash flows generated by current operations, forup to 12 months.

• Contract lending means the funding of contract costs within the borrower'scurrent operations against the security of cash received through the executionof such contracts, for up to 3 years. This funding product is designed for twoareas — trade and services.

• Lending against the pledge of funds means the funding of borrowers against thepledge of funds (credited to current or savings accounts) for the borrower'soperations, for up to 3 years.

• Project financing means the funding of expenses within the borrowers'investment projects; the loan is repaid at the expense of cash flows generated bythe funded project; for up to 10 years.

• Financing of construction projects. The product is divided into two areas -financing of construction of residential real estate and construction ofcommercial real estate. The financing terms and requirements for borrower arebuilt taking into account the specifics of the laws and available industryspecifics in construction sector.

• Bank guarantees to corporate clients within credit lines for any purposes,

including participation in tenders, performance of obligations undercontracts, return of advance payment, etc.

In the second quarter of 2018 corporate business launched a major project ofMSB Loan Process Automation (at AC FICO). The industrial launch is scheduled forthe end of the first quarter of 2019. The project objective is to optimize the MSB loanprocess and its 100% automation:• Storage of structured data previously used for all types of issues;• Integration with internal and external data sources, automation of individual

stages of analysis;• Automatic generation of loan documentation;• Product designer using risk models and risk rules to speed up the decision making

process.The sectoral structure of the loan portfolio of legal entities of Sberbank

corresponds to the sectoral structure of GDP of the Republic of Kazakhstan. Thequality of selected projects allows to contain industry risks. Sberbank diversifiesits loan portfolio by reducing the volumes in “Trade” sector due to its large shareand reducing volumes in the potentially problematic sectors “Construction” and“Agriculture”. In 2018 the reduction in loan debt in “Construction” sector was 5 pp,in “Trade” sector - 1 pp. ~30% of the loan portfolio is in manufacturing industry.

The main priority sectors in 2019 will be: Manufacturing industry, Transportand Communications, Energy.

Transaction products:

• Opening of current accounts, including online;• Transfer operations in national and foreign

currencies;• Cash transactions;• Opening of deposits, including online;• FX transactions, including Sales desk service and

FX platform;• Barcoding of payment orders;• Safekeeping;

• Opening of Escrow accounts;• Sberbank Business Online remote service;• Sberbank corporation (cash management);• Traditional and complex collection;• Self-collection;• Package offers;• Payroll card program;• Business card;• POS terminal;

• Online account reservation;• Mobile banking for legal entities / individual

entrepreneurs;• Smart terminal;• Acquiring;• Foreign exchange control;• E-cheque (cash withdrawal from ATM for LE).

42

STRATEGIC COOPERATION

Following the results of 2018 SB Sberbank JSC once again confirmed thestatus of leader to participate in state programs and develop technologiesof banking sector. The Bank is the leader among the second-tier banks interms of subsidy and guarantees of Damu Entrepreneurship DevelopmentFund, issued under Business Road Map 2020 Unified Business Support andDevelopment Program.

A memorandum of cooperation was signed with Kazakhstan UtilitiesSystems (KUS), a large vertically integrated company in the energy sectorof Kazakhstan with assets in generation, transmission, and sale of heatenergy and electricity in South Kazakhstan, Karaganda, East Kazakhstanand Mangystau regions. The signed memorandum provides for cooperationof Sberbank Group in financing the activities o KUS group and providingfinancial advisory services, including in the field of investment banking.

In honor of the 25th anniversary of the National Currency of theRepublic of Kazakhstan the Almaty City Akimat initiated the awarding ofemployees of SB Sberbank JSC for the work performed in terms of the city’seconomic development.

SB Sberbank JSC became the first bank to finance an internationalenvironmental project of the United Nations Development Program for aperiod of 3 years.

43

BRANCH NETWORKAs of 01.01.2019 the Bank’s branch network lists 17 branches and 91 outlet of the Bank.

Branch Network Development

In 2018 3 new outlets were opened, including a branch in the cityof Turkestan, as part of the implementation of Branch NetworkDevelopment Plan. Also the Operations Unit of Nur-Sultan Branchwas reformatted.

New standard formats of subdivisions are introducing. Theintroduced formats affect changes in the sales and customerservice system through the creation of specialized service areas andservice procedures for different customer segments. Outlets ofSberbank meet the most modern standards of bank service. New banktechnologies allow to process, analyze and execute the incomingqueries in the shortest possible time. Functional infrastructure ofoperational halls create the most comfortable conditions forcustomer service.

The objectives of the Bank’s branch network development are:• intensive development of the branch network, expansion of the

presence of the bank in regional centers and industrial centers ofregions;

• ensuring cost-effective and efficient operation of subdivisionsof branches, achievement of payback of open subdivisions.

The branch network development plan for 2019-2021 is aimed atexpanding Sberbank's presence geography. Thus, it is planned to open27 new outlets, including in cities where Sberbank has not yet beenrepresented. Out of 27 new outlets, the Bank plans to open 9 outlets in2019.

Customer Service Quality

In 2018 the Bank continued to work on improvement of qualitymanagement system:

• Introduction of a centralized model of work with clients'appeals allowed to free up time for front-office employees andimprove the quality of preparation of responses;

• The system for the preparation of responses to client’scomplaints by developing a unified approach in the preparation ofwritten and verbal responses to complaints is optimized.

• The employees of retail business front office weekly conducthigh-quality testing of cases for CSI and NPS.

In 2019 the Bank will continue to improve the Customer ServiceQuality by implementing the following key activities:

1. Identification and elimination of systemic problems inconjunction with responsible subdivisions of the Bank;

2. Developing and introducing training programs / video clipsfor excellent service to the certification program of massspecialties and front-managers of retail business (branches, contactcenter, telemarketing);

3. Implementation of an action plan to increase the customerloyalty index NPS.

44

INFORMATIONTECHNOLOGIES

Key highlights of 2018:• Increase in the scalability of key information systems

and reduction in Time-to-Market;• Standardization of resource requirements providing

the ability to allocate server resources;• Reducing the cost of purchasing servers;• Reorganization of Technology Block with division

into development, support, architecture subdivisionsThe following key projects are planned for 2019:• Engineering Transformation - reduction in Time-To-

Market by 30%•Organization of IT services monitoring

MARKETINGPOLICY

В In 2018 Sberbank implemented a number of marketing and PRprograms intended to boost sales of banking products, improvecustomer orientation, quality of service, and sustain a positivebrand image of Sberbank. The following advertising campaigns weresuccessfully carried out:

• Happy Friday campaign• Unsecured Loan campaign• Lending is Easy campaign• Loan from 1% campaign• Secured Loan Refinancing campaign•Nomad Black Edition Card campaign• Cashback 1.3% campaign• Lamoda campaign• Apple Pay campaign• Seize the Moment campaign• Business Success campaign• Easy Start campaign•Welcome campaign• Auto loan project with Aster Auto• Auto loan project with Bipek Auto• Free of Charge Card Delivery projectIn addition to marketing activities aimed directly at the

promotion of Sberbank products and services, various projects wereimplemented in the development of the strategic marketing, amongwhich conducting marketing research, BTL-campaigns of nationaland regional level.

45

RISK MANAGEMENT

CREDIT RISK

Credit risk management is determined by requirements ofauthorized agencies, the Bank's risk management policy andinternal regulations on credit risks. Credit risk managementpivots on an independent approach to the assessment andanalysis of credit risks associated with the Bank's lendingoperations.

In order to reduce its credit risks, the Bank applies keymethods and methodologies, such as:• Centralized, automated, collegial decision-making toestablish/modify the terms and conditions of funding ofborrowers;• Limiting the credit risk by setting limits;• Use of scoring models in decision-making procedures;• Approval and monitoring of control risk metrics;• Automation of the soft-collection process for individualloans;• Analyzing the dynamics and quality of the loan portfolio,flow of applications, designing steps to reduce the creditportfolio risks;• Monitoring whether prudential regulations andthreshold values are observed;• Monitoring of financial condition of borrower, pledgedproperty on an ongoing basis.

In the context of deceleration in economy growth,the Bank attaches great significance to the managementof risks inherent to banking.

Key risk management tasks include identifying andclassifying the Bank's risks, determining and applyingeffective risk assessment and management tools, settinglimits for an acceptable level of risk, monitoring, andtaking steps to reduce and control risks associated withthe Bank's operations.

There is a system in place at the Bank for risk control,monitoring, and management based on the requirements ofauthorized agencies of the Republic of Kazakhstan,recommendations of the Basel Committee on BankingSupervision and high standards of Sberbank Group. Today,SB Sberbank JSC participates in the integration of SberbankGroup in terms of risk management. The Bank identifies thefollowing significant types of risk: credit, market,liquidity, and operating risks.

46

Loan Portfolio Structure by Currencies

The structure of loan portfolio in terms of currencieshas significantly changed for 2019. The level ofdiversification in terms of currencies is assessed asacceptable, because loans issued in national currency (83.8%)account for the largest share in the loan portfolio as ofJanuary 1, 2019. Loans issued in US dollars decreased by 36% in2018 and amounted to 14.12% of the total loan portfolio ofthe Bank.

Loan Portfolio Structure by Sectors of the Economy

As of today, there is a system of limits in place at the Bankwhich allows an acceptable concentration of risks of the loanportfolio in terms of sectors of the economy. As of January 1,2019, sectors such as Trade (17.8%), Individuals (31.8%), andProduction (17.2%) account for the largest share of the loanportfolio.

Quality of loan portfolio

The level of credit risk at the end of 2018 has significantlyimproved. The share of loans with overdue debt of over 90 days asof January 1, 2019, was 5.6% (on 01.01.18 – 6,1%).

IFRS formed provisions for the Bank's loan portfolio for theyear increased from 13% to 12.2%. The level of coverage by loanprovisions with overdue of 90+ is 224%.

production

trade

services

transport

real estate transactions

mining industry

constructing

Agriculture

other

retail business

47

MARKET RISKMarket risk is the probability of financial losses on balance-

sheet and off-balance-sheet items resulting from adverse changes inmarket interest rates, foreign exchange rates, market value offinancial instruments, commodities.

The purpose of managing the market risk of operations infinancial markets as a component of the strategic risk managementprocess at the Bank is to build a risk management system founded onthe principles of the Basel Accord and laws of the Republic ofKazakhstan.

The Bank identifies three risks within the market risk —currency, interest, and price.

The currency risk means the probability of financial lossesresulting from adverse changes in foreign exchange rates duringthe Bank's activities.

The Bank is exposed to currency risk which arises from openpositions on foreign currencies and adverse changes in marketrates. Within its system of limits and restrictions, the Bankestablishes limits of the total open currency position, limits of theopen position in individual foreign currencies, etc. To manage itscurrency risk, the Bank identifies, assesses, and limits the risk andthen monitors and controls it. Due to the Bank's conservativepolicy of management of its open currency position, the currencyrisk is estimated to be low.

The interest risk means the probability of financial lossesresulting from an adverse change in market interest rates forassets, liabilities, and off-balance-sheet instruments.

Procedures for interest risk assessment, measurement, control,and monitoring include analyzing and forecasting the dynamics

of market conditions of interest rates, establishing performancebenchmarks for the net operating income, establishing targetfigures for the monitoring of the net interest margin and spread,taking steps to balance interest-bearing assets and liabilities interms of their volumes and maturity dates (revaluation) dependingon their sensitivity to changes in the level of interest rates in themarket, performing hedging operations, setting limits for theinterest gap.

The price risk means the probability of financial losses causedby adverse changes in the market value of financial instruments,commodities.

The portfolio of marketable securities is made up mainly ofgovernment securities and corporate securities with the issuerrating of at least B (according to Standard & Poor's and/or Fitch)or B2 (according to Moody's Investors Service) for foreign issuers,and for the securities of issuers from the Republic of Kazakhstan —at least B (according to Standard & Poor's and/or Fitch) or a ratingsimilar to that of one of the other rating agencies.

In order to control its market risk, the Bank monitors andcontrols risk metrics such as VaR, DV01, conducts stress testing, etc.VaR is used to evaluate the maximum volume of expected financiallosses over a specific time frame with the given probability. DV01identifies the average value change resulting from a change in theyield by 1 basis point. Stress testing can be defined as the evaluationof potential impact in extraordinary, but still possible situations onthe bank's financial position.

Tools of market risk management available to the Bank allowmaintaining risk at an acceptably low level.

48

OPERATIONAL RISKOperational risk is managed in accordance with the

requirements of the National Bank of the Republic of Kazakhstan,recommendations of the Basel Committee on Banking Supervision andis subject to the requirements of the Bank's regulations onoperational risk management.

Operational risk management is intended to prevent and/orreduce risks associated with losses that may be caused by deficienciesin the organization of operations, technologies used, functioningof information systems, inadequate actions or mistakes of the staff,inadequate construction of business processes, as well as impact ofexternal events.

All structural subdivisions, branches, and employees of the Bankare involved in the operational risk management system becauseevery area of business is exposed to the operational risk. Theoperational risk is managed by them as they perform their mainfunctions.

To effectively manage its operational risk and calculate thesize of its operational risk, the Bank uses such elements ofoperational risk management as gathering internal data onoperational risk incidents, gathering external data on operationalrisk incidents, conducting operational risk self-evaluation,monitoring key risk indicators and control indicators, conductingscenario analysis and risk mapping. Elements of operational riskmanagement are used in combination and correlation to achieve anintegral and comprehensive management of operational risks.

For the purposes of regular monitoring of its operational risk,the Bank uses a reporting system for the management of the Bank andcollective bodies involved in risk management processes.

As of January 1, 2019, the operational risk (the share of expenses tocover losses of the realized operational risk in the Bank's expenses)was 0.002%. Therefore, the level of the operational risk is understoodto be acceptable and remains within limits set for the Bank.

LIQUIDITY RISK

The key objective of liquidity management is to comply with theprinciple of the Bank as a going concern, i. e. to make sure the Bank isable, when necessary, to attract funds required to continue, withoutany interruption, and expand its operations. The strategy used by the

Bank to attract adequate funding is closely associated with itsliquidity management system because risks inherent to the selectedstrategy inevitably affect liquidity management.In 2018 liquidity ratios were complied with sufficient margin.

Liquidity

ratio

Normative

standard1.01.18 1.02.18 1.03.18 1.04.18 1.05.18 1.06.18 1.07.18 1.08.18 1.09.18 1.10.18 1.11.18 1.12.18 1.01.19

к4 min 0,3 1,3 1,4 1,4 1,3 1,3 1,4 1,5 1,4 1,3 1,3 1,2 1,3 1,0

к4-1 min 1,00 26,4 31,0 27,2 30,9 24,1 23,3 28,9 25,5 13,6 11,4 9,9 7,0 8,0

к4-2 min 0,90 10,9 11,6 12,5 12,3 10,7 13,1 14,9 11,8 8,7 7,3 5,9 3,9 4,3

к4-3 min 0,80 5,1 5,4 5,4 5,4 5,6 5,7 5,3 4,7 3,6 2,6 2,1 1,8 2,1

49

SOCIAL RESPONSIBILITYof SB Sberbank JSC

CHARITABLE EFFORT AND SPONSORSHIP

Sponsorship and charity are a part of Sberbank's corporate culture. Byimplementing charitable projects Sberbank demonstrates its values andcommitment to the principles of openness and cooperation.

Sberbank's social responsibility includes both charity and a wide range ofissues related to business compliance, compliance with business and professionalethics, commitments to employees, customers and partners, transition tointernational standards of quality and management.

Sberbank finds its duty to support children's institutions, publicorganizations, and also to pay due attention to sponsorship in the developmentof education, sports, culture and art.

The Bank also promotes major Kazakhstan and international businessevents in the framework of sponsorship projects.

Today, sponsored orphanages and other children's institutions areassigned to each branch of Sberbank throughout the country, assistance towhich is provided on a regular basis. Sberbank organizes children's holidays,acquires the necessary goods for shelters and orphanages.

The Bank's employees are actively involved in volunteer projects. They helpwith their own efforts in repairing and landscaping the territories oforphanages and boarding schools. The Bank monthly purchases food products,provides necessary assistance and organizes cultural and sports events fororphans.

Today, Sberbank assists more than 50 organizations throughoutKazakhstan. This figure includes orphanages, shelters, boarding schools, schoolsfor children with various disabilities, facilities for children with disabilities,centers for the rehabilitation and adaptation of minors, public funds and otherorganizations.

In 2018 the budget for charitable projects of Sberbank amounted to 31.5million tenge.

A number of the most significant projects can be identified among thelarge number of charitable and sponsorship events in 2018:

• Since 2017 Sberbank has been cooperating with Mercy Volunteer SocietyPublic Fund. The Bank allocates funds to the treatment of seriously ill childrenin the framework of Give Children Life project.

• As part of the republican charity campaign of the Ministry of Educationand Science of the Republic of Kazakhstan Sberbank has provided support toprimary school children from low-income, large families, orphans, childrenwithout parental support and children with special needs. 250 primaryschoolchildren throughout Kazakhstan received school backpacks with thenecessary stationery. The lists of pupils were provided by regional structures ofthe Ministry of Education and Science of the Republic of Kazakhstan.

• Sberbank provides material support to veterans of the Great Patriotic War(hereinafter - GPW) on an ongoing basis. In all regions of own presence Sberbanktwice a year, on May 9 and New Year, congratulates more than 300 sponsoredveterans of the GPW and work by giving address financial support andorganizing festive actions.

• Sberbank takes an active part in the development of culture and art. From2016 to the present day, Sberbank is the General Partner of the Theatre namedafter M.Yu. Lermontov.

• In 2018 Sberbank was the general partner of the theatrical performance ofthe State Opera and Ballet Theater Astana Opera, which will premiere in April2020.

• In 2018 Sberbank was the general partner of the State Institution Library ofthe First President of the Republic of Kazakhstan - Yelbasy on the draft ofpublication of the Glossary and the first tome of the encyclopedia on the life ofN.Nazarbayev.

• Green Marathon sports and environmental campaign became a goodtradition for Sberbank. This campaign has been conducting in Kazakhstan since2014 and is designed to attract people to sports activities, attach to a healthylifestyle, and also pay attention to environmental problems. The GreenMarathon program includes sports run for a symbolical distance of 4,2kilometers, and conduction of environmental campaign by participants. In 2018 7cities took part in it. More than seven thousand Kazakhstan citizens took part inrun. As part of the event, trees were planted, feeders for squirrels and birds werebuilt, which were later transferred to sponsored orphanages.

50

STAFF

Highly qualified staff of the Bank is one of its mainresources and competitive advantages, and personnelpolicy is a key element of strategic planning.

At the end of 2018 the actual number of the Bank'sstaff was 3507 employees, including 44% of them under theage of 30. The average age of employees working with theBank is 32 years.

More than 70 % employees have been working withthe Bank up to 5 years, about 29% — from 5 to 15 years.Further, more than 30 % employees have been workingwith the Bank for under 1 year, more than 15% — from 1 to2 years, about 9% — from 2 to 3 years, about 15% — from 3 to4 years, more than 22% — from 5 to 9 years, 6% — from 10 to14 years, and 1%— for 15 years or more.

Most of the Bank's employees are employed in theRetail Block - 38.7%, 19.8% - Corporate Block. The share ofemployees employed in the field of Treasury, ALM, Financeand Branch Management is 3.8%, Administrative SupportBlock - 7.4%, Technology and Operational andMaintenance Support Block - 16.8%, Risks, Problem Assetsand Legal Issues Block- 13.5%.

Age structure of staff:

Work experience at the Bank:

Functional structure of staff: Retail Block

under 30

from 30 to 40

from 40 to pre-retirement

pre-retirement and retirement

Under 1 year

From 1 to 2 years

From 2 to 3 years

From 3 to 4 years

Corporate Block

Risks, Problem Assets and Legal Issues Block

Technology and Operational and Maintenance Support BlockFinance Block, Treasury, ALM, Branch Management

Administrative Support Block

From 5 to 9 years

From 10 to 14 years

15 years and more

51

DEVELOPMENT PROSPECTSIn 2019 the Bank identified main priorities and directions of activities:

In 2019 SB Sberbank JSC will continue tofocus on quality performance indicators, aswell as on increasing lending volumes. TheBank’s corporate business will continue tofocus on three main client segments: large,medium and small businesses. The main businessobjectives for 2019: online lending, loanprocess automatization, launching newproducts.

In order to achieve the Bank’s strategicgoals, the retail block focuses on the design ofunique service models and value offers thatwill meet all the preferences and needs ofclients in various segments. The key task of theretail business is to increase the share ofonline sales.

Service and quality

Efficiency increase

Digitalization

52

Financial Reporting of SB Sberbank JSC

Additional information

57

58

MAIN BUSINESS CONTACTS DETAILS OF SB SBERBANK JSC

Department Full name E-mail

Corporate block

NATIONAL COMPANY AND

MAJOR CLIENT DIVISIONKaliyev Yertysovich Askar [email protected]

INTERNATIONAL DESK

DIVISIONBakytzhan Timurovich

[email protected]

MAJOR CLIENT DIVISION Pavel Vladimirovich Kulagin [email protected]

TREASURY DIVISION Ilyas Shayakhmetovich Izotov [email protected]

Retail block

Retail Sales Division Konstantin Ivanov [email protected]

Premium Banking DivisionGuliya Maksutovna

[email protected]

Contact Centre

of SB Sberbank JSC

8(727)250-30-20

from mobile phone 5030

13/1 Al-Farabi Avenue, Bostandyk district, Almaty, theRepublic of Kazakhstan, 050059

BIN 930740000137

BIC SABRKZKA

Code 914

Correspondent account (IIC) KZ82125KZT1001300306

GCEO code 28109833

Monetary Operation Accounting

Department of the NBKNBRKKZKX

Reuters SBKZ

Beneficiary code 14

Certificate of VAT registration 60001 №0037440 dated 20.08.2012

Name in English Subsidiary Bank Sberbank of Russia Joint Stock

Company

Abbreviated name SB SBERBANK JSC

2018 annual report · 2019-08-07 · integral part of the economy of kazakhstan. sberbank is the...

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