Loans

Loan portfolio
  2013 2014 2015 2016
Loan portfolio (the Group, IFRS), RUB bln: 3,748 4,847 4,966 5,032
Mortgage loans 1,569 2,270 2,555 2,751
Consumer Loans 1,673 1,868 1,682 1,574
Credit cards and overdrafts 349 539 587 587
Car loans 157 170 142 120
Sberbank’s share in the Russian market, %
Mortgage loans
2013 2014 2015 2016
Sberbank's share in the Russian market of mortgage loans, % 50.4 53.0 55.0 54.6
Volume of Sberbank loans, RUB bln 638 898 667 722
Number of Sberbank loans, thousand loans 451 589 439 475

Mortgage loans remained Sberbank’s priority in the year under review. In total, in 2016, Sberbank issued 475 thousand mortgage loans in the amount of RUB 722 bln, which exceeds the result of the preceding year by 8.3%.

At the beginning of 2016, Sberbank and Rosreyestr (Federal Service for State Registration, Cadastre, and Cartography) launched the electronic registration service for finished housing transactions, and in the middle of the year the pre-existing scheme was supplemented by the option of electronic registration for newly-built property. Over 15 thousand transactions were registered in the electronic system throughout the country over the year.

To settle real estate transactions, Sberbank created a multi-format platform DomClick (“Dom” means “House”). The platform makes it possible to apply for a mortgage loan, select and approve a real estate item, as well as submit transaction documents for a state registration of real property rights. This service unites Sberbank clients, personnel and partners, which are real estate developers and agencies. Over 120 thousand people have already formalized their mortgage loans via DomClick.

The Mortgage for military personnel product was converted into the Credit factory technology, which reduced the decision-making time from ten to four days and increased the market share of this segment from 24.5% to 39.6%. Sberbank is the loan volume leader in this segment according to the results of H2 2016.

The Mortgage with state support program for both finished and in-construction housing in the primary real estate market was extended in March 2016. All in all, mortgage loans in the amount of RUB 429 bln were provided to 254 thousand families as part of this program in 2015–2016, while mortgages worth RUB 237 bln were granted to 142 thousand families in 2016. Upon the completion of the program as of January 1, 2017, Sberbank decided on the possibility of issuing loans on the terms thereof, provided the loan application was submitted in 2016.

Simultaneously with the extension of the “Mortgage with state support” program, Sberbank also launched a “Campaign for developers” with reduced downpayments (starting from 15%) and a fixed annual rate of 13.5%, inclusive of voluntary life insurance. A total of 10.3 thousand loans worth RUB 24.1 bln were issued as part of this program in 2016.

From August till the end of the year, Sberbank conducted a “Campaign for the workers of organizations providing care to orphans and legally free children”, offering soft (from 11.5% to 12.5%) annual lending rates, no surcharges for the mortgage registration, and a reduced initial contribution of 15%.

In 2016, the transfer of loan approval procedures to “Credit factory” technology and underwriters was also completed. The corresponding committees of the regional head offices were excluded from the loan-decision process. As a result, over 200 processes were optimized by a factor of 15, while decision-making time for a number of retail products was decreased by half.

The “Mortgage for Young Families” campaign was extended, and the interest rate discount within the program increased from 0.5% to 0.75%. A total of 122.4 thousand mortgages worth RUB 182 bln were issued as part of this campaign in 2016.

Sberbank decreased its interest rates several times in the course of 2016, by 1.5–2 percentage points in aggregate. Partner channels continued to play an important role in the development of mortgages, with their share during the year growing to up to 46.4%, and the number of partner-companies increasing to 28 thousand. A total of 5.4 thousand mortgage applications from 66 partner-companies were submitted thanks to the introduction of the new service to submit mortgage applications from the partners’ automated systems.

Starting in 2015, Sberbank has been participating in the assistance program for certain categories of housing mortgage borrowers who happened to be in difficult financial situations. The state allocated RUB 4.5 bln for its implementation. Joint-stock company “Agency for Housing Mortgage Lending” is the operator of this program. Over 6.7 thousand families participated in this program in 2016, receiving financial assistance in the amount of RUB 1.2 bln. Sberbank’s share is 73.4% of the total number of transactions carried out as part of this program.

As of the end of 2016, borrowers can submit applications for troubled debt restructuring to any of the Sberbank customer service centers. This scheme has increased the availability of restructuring for our clients, as previously the submission of applications and signing of documents was only possible in towns where overdue debt management subdivisions were located. In addition, Sberbank has simplified the application procedure. The Sberbank website contains information about the restructuring procedure and terms and has an open “hot line” to support the branch managers. All this facilitates product sales, which in turn helps clients ease their debt burden to an acceptable level and avoid default.

Consumer lending

Consumer loans portfolio
2013 2014 2015 2016
Sberbank's share in the Russian market of consumer loans, % 32.8 32.5 33.2 33.2
Volume of Sberbank loans, RUB bln 970 915 519 797
Number of Sberbank loans, thousand loans 5,518 5,081 3,168 4,385

The volume of consumer loans issued by Sberbank in 2016 surpassed the result of 2015 by 53%.

During the year, Sberbank decreased interest rates three times for consumer loans and launched three promotional campaigns, which helped achieve high results in the consumer loans market.

The development of remote service channels tripled the volume of consumer loans processed via these channels and made after-sales servicing more convenient by creating the option for early loan repayment and also making available detailed information on the loan payment schedule.

Car loans

Car loan portfolio
2013 2014 2015 2016
The joint share of Sberbank and Cetelem Bank LLC in the Russian car loan market, % 14.8 15.8 15.2 14.4
Joint position of Sberbank and Cetelem Bank LLC in the car loan market 2 1 1 1
Volume of Sberbank and Cetelem Bank loans, RUB bln 103 85 42 51
Number of Sberbank and Cetelem Bank loans, thousand loans 215 150 80 81

Practically all car loan businesses of the Group in Russia were transferred to Cetelem Bank LLC in 2013. Cetelem Bank LLC is a subsidiary bank of Sberbank specializing in car loans, point-of-sale loans (POS loans), as well as financing for car manufacturers against the assignment of receivables due from dealers (factoring). Partner dealer centers are Cetelem Bank’s main sales channels.

14.4% The joint share of Sberbank and Cetelem Bank LLC in the Russian car loan market