Download - Sbank Ar2002 Eng
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Time is impassive and implacable. Time breaks up
worlds, washes down civilizations their languages
and odours, rhythm and motions. And only with an
ancient Meissen cup in the hand you wonder at how
correctly, not fussily it rests in your hand, and the
Grandmas brilliants flow on your neck without with-
drawing into their own beauty , but only to accentuate
its curve. Piece-things. Things created by somebody
for someone. Things not knowing dismal impersonal-
ity of stamping. Things telling about worlds and civi-
lizations more than historians surmises. Only things
created for you are worth of a free man.
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Table of contents
2 3
Chairman Address 7
Macroeconomic Situation in Russia in 2002 10
Development of the Russian Banking System in 2002 13
Main Results of Sudostroitelny Bank in 2002 16
Financial Markets. Money Markets 22
Securities 23
Correspondent banking 25
Client Policy 28
Crediting 30
Leasing 32
Collection 33
Plastic Cards 36
Latest Technologies 37
St.-Petersburg Branch 38
Sponsorship 39
Balance Sheet 42
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Carved facet of the cognac carafe
sparkling with amber and ruby in glea
of fair, and vine ordour of a ripe bun
cut in times immemorial is turning yo
head. The same way it was floating in t
drawing-room of a snow-covered man
200 years ago, - and muted voices of o
cers with epaulets embroidered in go
keep living in this ordour, and Heres
Fatherland!" and "Heres to Ladies! y
drink together.
Piece-things. Cognac
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Dear Madams and Sirs!
The year 2002 was very important for the development of Sudostroitelny Bank by the volume of assets
and equity capital the Bank was ranked among 50 largest credit institutions of Russia, joined the elite of the
national banking business.
The new status of the Bank not only opens wide perspectives, but also imposes great responsibility.
At the beginning of 90s the Bank development was not coordinated by a purposeful strategy the Bank tac-
tics were aimed at making a good use of the moment and new market opportunities. Today the Bank is not in
a position to afford it. We are now facing the task to adhere to an adjusted strategic line based on projected
numerical parameters. In order to secure a stable competitive position, the growth rates of basic carrying
amounts must exceed average indices in the banking sector. It is really very pleasant for me to inform that
judging by the results of 2002 this program was successfully realized. The assets and equity capital of the
Bank grew by 2.5 times.
In many respects it was possible due to a new positioning of the Bank in the market Sudostroitelny Bank
became an active participant of the interbank services market. As a result the number of LORO accounts in
2002 doubled, and balances on those accounts increased by 4 times.
The growing confidence of the clients and correspondent banks resulted in a successful issue of own bills
of exchange with a maturity date of more than one year.
The attraction of long-term resources and the increase in the volume of own funds provided a solid basis
for the growth of the credit portfolio. As a result, by the end of the year the credit portfolio increased by
almost 3 times.
However, even the significant increase in the volume of crediting was not followed by the fundamental
change of the Bank policy in this field. Satisfying to the maximum the needs of its clients, the Bank continued
crediting the projects that corresponded with the requirement yield-reliability at the most.
One of the most important results achieved by the Bank in 2002 was the extension of the services range
and the introduction of the latest technologies. Meeting the requirements of the corporate clients the Bank
was intensively developing leasing and factoring operations, salary projects with the use of VISA plasticcards, services on effecting customs payments via the customs card system, services on acquiring, and bro-
kerage services in the securities market.
An important place in the Bank client policy today occupies the work with private persons. In 2002 the
Bank issued plastic cards VISA Gold, VISA Classic and VISA Electron, worked out new types of term deposits,
became a correspondent of international money transfer system RIA Envia in Russia. In order to improve the
customer service the Department of the customer relations development was created.
The achieved results allow us to make plans for the future with confidence. In the coming year
Sudostroitelny Bank is going to confirm and consolidate the status of a large universal credit institution. We
will seek after further optimization of the existing business-processes, the reduction of risks, development
and introduction of new products and services, which correspond to the requirements of the clients, as well as
to the international standards of the banking service.
In conclusion I would like to express to everyone our clients, partners, and employees my sincere
appreciation for the trust and support. The joint efforts of our team allowed the Bank to take the present
positions and to become the Bank you know today.
Alexey Golubkov
Chairman of the Board
7
Chairman Address
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The world broken to pieces comes to life
ordour and things. A Grandma will find
faded rose in Clarissa and put it in
Nadsons book, and a ray will slide on
page dropped by tears, and new roses w
blossom out in rosary, and sweet smell
young roses will flow together with o
books odour, girls dressed in muslin w
become ladies clothed in silk and v
vetAnd boys cried while rea
Napoleon at St. Helen will put on m
tary uniform and leave for war, but all th
will be later, later Both Clarissa a
Napoleon wont go to pieces, loose pag
like pocket one-day books do and now
the 21st century your daughter will op
the heavy volume and find the Grandm
rose there.
Piece-things. Books
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According to the latest data on the volume of
import provided by the Central Bank of Russia its
growth stopped in the autumn at the rate of USD 5.4bn
per month. Such development is usual for the autumn.
One can assume that weakening of the ruble against
the euro had a certain restraining impact on import.
According to the Goskomstat the volume of import in
2002 amounted to USD 62bn exceeding by 12% theresult of the previous year. It is c. 16.7% less than in the
record year of 1997. At the same time the volume of
import by the end of the year exceeded 70% of its crisis
drop in 1998.
The annual export surplus decreased, though not sig-
nificantly. In the estimation of experts the export surplus
decreased from USD 48bn to USD 46bn (or from USD
45.7bn to USD 41.5bn as regards to the trade with non-CIS
countries).
Judging by the international balance of payment,
stability of the money market and financial system on the
whole, one should not be anxious about the current for-
eign trade situation since a high safety margin still exists.
However one should take into account that the export
dynamics is not stable enough to sustain sharp deteriora-
tion of the external market situation, first of all in the
energy resources markets, while the import is strongly
supported by the outpacing growth of the domestic
demand. This involves a potential risk of an export sur-
plus decrease.
In such situation the proper reaction of the authorities
will be to follow a policy of real weakening of the ruble
that will naturally ease the negative impact of the external
shock. Tariff regulation and introducing import quotas on
products of domestic manufacture which are most sensi-
tive to external competition, will make the problem less
acute to a certain extent.
InflationThe annual increase in consumer prices amounted to
15.1%. This result can be estimated in two ways. On the
one hand, the increase in consumer prices in 2002 indicates
the tendency of a slow annual inflation decrease. On the
other hand, it means that the efforts to keep inflation
within the expected limits of 14% in 2002 failed. The rise inprices for services contributed greatly to the annual infla-
tion rate. Tariffs for services rendered to people grew by
36.2% during the year, while the prices f or food increased
by 11% (excluding fruit and vegetable products by
8.5%), and the prices for non-food consumer goods rose
by 10.9%.
11
Macroeconomic Situation in Russia in 2002
Analysis of the Russian economy in 2002In the last year the basic macroeconomic parameters
fully corresponded to expectations. A 4% economic growth
of all production indices which took place in 2002 had been
forecasted a year ago by both the government and most
part of independent experts. Such a high accuracy of fore-
casts is an evidence of stability of the main economic
processes. As before the production growth was determinedby external demand resulting from a favorable market situa-
tion and by an outpacing growth of the domestic demand.
The highest growth rates were demonstrated by the fuel
industry, non-ferrous metallurgy and food industry.
The analysis of the results of economic development
during the past several years shows that the established
mechanism of economic growth which is mainly based on
the export-oriented manufacture of non-deep processing
products does not have necessary elements for the fast
qualitative improvement of the economy structure and for
the raise of the economy effectiveness on the whole. Such
economy can provide only moderate growth rates (3-5%)
during the next few years and a slow forming of conditions
for structural changes which will imply the increase in the
share of high-level processing products. Quicker structural
changes are also possible, but only as a result of recessions
caused by shocks of external demand first of all by a
slump in prices for mineral energy resources.
ProductionThe GDP growth amounted to 4.3% as compared with
the previous year. One should note that the main driver for
the GDP growth was a higher growth rate of services, that
resulted in the increase of their share in the GDP structure in
basic prices from 54.8% in January-September 2001 to
57.5% during the same period of 2002. This growth was
mostly provided by the growth of market services share that
increased from 46.4% to 48.4%.
The significant growth of the services share indicates
that the internal commodity production was not less impor-
tant for the excessive demand satisfaction than the import
increase. Thus the prospects of the beginning of 2003 look
quite promising.
The volume of industrial production increased by only
0.6% in December 2002 as compared with the same periodof 2001. This is the lowest index for the last three and a half
years. As for the industry, the December result is extremely
low and indicates the negative break of the industrial pro-
duction dynamic that took place in the autumn last year.
Thus the annual increase of the industrial production
amounted to 3.7%.
InvestmentsThe increase of investments in fixed capital in 2002
was similar to the one in 2001 with the exception of one
important factor the previous year did not experience
such a deep recession in January. The annual increase of
investments amounted only to 3.2%. Such a low result
was achieved exactly because of the January recession
which is a record one for the last seven years and wascaused by the cancellation of investment privilege on
income tax.
Consumer demandThe development of the retail trade turnover was char-
acterized in 2002, as well as in the previous year, by a
steady positive growth that provided an average monthly
increase of 0.8%. As a result the annual increase amount-
ed to 9.2%.
High growth rates of the retail trade turnover during
the last 3 years (8.7% in 2000 and 10.7% in 2001) indicate
the positive change of the consumer demand factor that
provides stability for the production development. Besides,
a rapid growth of the consumer demand establishes
potential for the acceleration of an economic upturn.
However this potential can be realized only if correspon-
ding inducing measures of economic policy are taken,
which will be aimed at supporting the internal producers in
the competition with the import for consumer demand.
Foreign tradeThe volume of export increased slightly in December
and almost reached its historical maximum recorded in
December 2000 (USD 10.1bn). However, eliminating the
influence of the seasonal factor reveals that the export
growth rate exceeded substantially the level reached 2
years ago. The export volume in December exceeded
USD 9.8bn; at the end of 2000 it was equal to around
USD 9bn.
Due to the rapid growth in 2002 comparable by its
rates to the rehabilitation upturn period in 1999, the export
was able to totally catch up with the growth as compared
with 2001.
The annual volume of export exceeded not only the
result of 2001 but also the record result of 2000 USD105.0bn. According to the State Committee of Statistics
(Goskomstat) the volume of export in 2002 amounted to
USD 107.2bn that is 4% higher as compared to the previ-
ous year. It is also important to mention that the share of
non-CIS countries in the export structure keeps up steadily
near the mark of 85%.
10
Income of the population andunemployment
Real disposal income of the population grew in 2002 by
9% as compared with 2001. Thus for the last three years the
real income of the population grew almost by one third and
reached the maximum level of 1997.
High rates of real income growth imply higher potential
for further increase in consumer demand. This is a positivefactor for the development of production activities.
Monetary policyThe exchange rate dynamics in 2002 was mostly
smooth and monotonous. The US dollar exchange rate
was growing by 0.2-0.4% per month, except for July
when it didnt change virtually, and December when it
declined by 0.2%. The last change is unique. For the first
time from the beginning of 90-s the US dollar exchange
rate declined in December. Obviously it was determined by
the excessive supply of foreign currency caused by both
the considerable export surplus and probably the inflow of
foreign capital in the form of credits provided to private
business.
The Bank of Russia was obviously evading the intensive
ruble intervention measures to support the US dollar rate. It
tried to avoid an excessive money supply as it could cause
high inflation in January. As a result the US dollar exchange
rate for the last year increased only by 5.5%. This consoli-
dated the real position of the ruble by the end of the year by
10% as compared with the previous year.
At the same time 2002 was characterized by a signifi-
cant consolidation of the euro against the US dollar, and
correspondingly against the ruble. The annual growth of the
euro exchange rate amounted to 25% which means the real
weakening of the ruble by 8% against the euro. This should
be considered as a factor restraining the import growth in
the previous year, taking into account that a considerable
part of the Russian import falls to the share of Eurozone
countries.
The established rate fixing mechanism, when the state
of the foreign currency market is entirely determined by a
substantial excess of currency supply over currency demand,
determined the further accumulation of gold and foreign
currency reserves. As of the end of the year their total vol-ume was equal to USD 47.8bn exceeding the result of the
previous year by USD 11.2bn. The accumulated volume of
gold and foreign currency reserves is a good safety margin
for the whole financial system that allows considering the
problem of external debt service for the nearest several
years insignificant.
Macroeconomic Situation in Russia in 2002
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In 2002 the main indices of the banking system
exceeded the level reached before the crisis of 1998: as
of December 2002 the ratio of the banking sector assets
to the GDP volume amounted to 37.6% as compared to
26.3% in 1998.
The total volume of the banking sector assets
amounted to RUR 4 015.1bn (c. USD 130bn) that is
21.3% more as compared to the beginning of the year.
Banking assets-GDP ratio increased by 3.6% in 2002.
However, Russian banking system assets-GDP ratio is
still almost 2 times less than the similar index in the
countries with emerging economy, and almost 3 times
less than in the developed countries. At the same time
the number of profitable credit institutions decreased
by 16 as compared with the beginning of the year, and
the number of unprofitable credit institutions increased
by 31. The volume of losses of credit institutions grew
by RUR 954.4m up to more than RUR 4bn.
The capitalization of the banking system increased:
the volume of equity capital of credit institutions
amounted to RUR 570.6bn as of the end of 2002
(c. USD 18.5bn), having increased by 20.6% from the
beginning of the year. Equity capital-GDP ratio was
equal to 5.4%. It increased by 0.4% from the beginning
of the year. The number of credit institutions withauthorized capital of RUR 300m and more grew by 23
from the beginning of the year and amounted to 156.
The number of credit institutions with authorized capital
from RUR 150m to RUR 300m increased by 22 and
amounted to 119.
The volume of credits and other funds provided by
banks to non-financial institutions amounted to RUR
1605.8bn or 39.9% of the banking sector assets. From
the beginning of the year the volume of credits provid-
ed by banks to non-financial institutions increased by
24%. Rapid growth of crediting rates raise the risk of
non-payments on banking credits (the so-called bad
loans crisis), but this index is still far from the critical
point it constitutes only 2.4% in the banks credit port-
folios.
As of December 2002 the volume of credits to pri-
vate persons amounted to RUR 145.8bn that is 51%
more than at the beginning of the year. The volume of
credits to private persons constitutes 3.6% of the bank-
ing sector assets.
13
Macroeconomic Situation in Russia in 2002
The analysis of the Russianstock market in 2002
The results of the Russian stock market in the previous
year turned out to be positive, though less impressive than in
2001. During the year the RTS-index increased by 38.08%
(in 2001 the growth was 81.49%).
The change in the trend was observed several times dur-
ing the year. Rise in quotations was observed from October2001 to the middle of May 2002. In the press and analysts
comments, the situation was even compared to the year of
1997. The main factor influencing the market was the
dynamics of prices for oil and non-ferrous metals. Besides,
financial reports and dividend policy of some issuers influ-
enced strongly the prices for their shares.
However, starting from the second half of May, right
before the George W. Bushs visit to Moscow, the price cor-
rection began. It had been expected by specialists for a long
time. As a result the quotations were fluctuating within the
limits of a wide declining corridor to the middle of August.
During that period the Russian stock market became more
dependent on the dynamics of international stock markets,
first of all American stock markets (the influence of this fac-
tor was observed to the end of September).
From the end of August to December the market was
growing slowly. The main negative events of this period
were capture of hostages during Nord-Ost performance
on the 24-25th of December and a sale auction of the
states stake in Slavneft.
The minimal value of the RTS-index in 2002, as well as in
2001, was recorded on the first trading day of the year, and
was equal to 267.7 points. The maximum of 425.43 points
was reached on the 20th of May.
On the 31st of December the RTS-index value was equal
to 359.07 points exceeding by 38.08% the result of
December 29, 2001.
The total RTS turnover amounted to USD 4236.2m in
2001. 55 228 deals were done in the Russian Trade System
during this period.
The trading volumeon the main stock exchanges for the year:
Stock Volume, Average turnoverexchange USD m for the day. USD m
2002 2001 2002 2001
RTS 4236.2 4239.15 16.94 16.89
MICEX 11907.91 18498.82 47.63 73.94
FBSP(Gazprom) 1015.34 758.67 4.06 3.03
GKO-OFZ market analysis in 2002A smooth growth of prices in the GKO-OFZ market,
which started right after the Presidents election at the end
of the March 2000, continued in 2002. This is explained by
the fact that the GKO-OFZ market is influenced mainly by
the financial situation in Russia, which remained favorable
in 2002.
In 2002 prices for OFZ of 27th series rose by 0.9-8%
(in 2001 the increase in prices was 2.4-14%), and the
coupon payments yield amounted to 14.22-16.15% of theprice as of the end of 2001 (the same yield in 2001 was
equal to 15.35-18.41%).
Under the circumstances of import growth and simul-
taneously of comparatively high prices for oil the yield
from investments in OFZ-bonds amounted to 16-24.5%
(in 2001 15-25%).
An average growth of prices in the OFZ-market made
up 3.8% (in 2001 9.4%), average coupon yield 15.6%
(16.9%), and average market yield including coupon pay-
ments in 2002 19.5% (26.3%).
12
The volume of deposits of private persons with the
banks increased to RUR 984.9bn that is 59.9% more than
at the beginning of the year; the deposits constituted
24,2% (+2,7%) of the banking sector liabilities; the ratio
of the private persons deposits to the GDP was equal to
9.3% (+1.8%). Thus, one can observe positive changes in
the structure of deposits of private persons. In particular,
the volume of term deposits have increased and the share
of funds on current accounts decreased at the same time.
In such a way the share of funds of private persons on
current accounts decreased by almost 10% during the
year, the share of short-term deposits by 4%.
Simultaneously, the share of medium-term deposits rose
by almost 2 times. The long term capital formation of
credit institutions that is explained by the increase in the
share of private persons deposits placed for more than 1
year is not yet accompanied by corresponding changes in
crediting periods of the real sector of economy. The state
reduced its participation in the banking sphere.
As for the banking legislation, the Russian
Government, the State Duma and the Bank of Russia con-
sidered the opinion of the "financial community" profes-
sional participants. The Government and the Bank of
Russia accepted the development strategy of the banking
sector till 2007 which determines the exact amount of theauthorized capital to be registered to establish a bank
EURO 5m. This will increase the stability and capitalization
of the whole banking system. The document also states
that before 2004 all banks must switch to the internation-
al accounting standards.
Some more decisive steps have been taken. The govern-
ment approved the bill on the insurance of bank deposits.
The currency exchange regulation concept is stated in the bill
on foreign currency regulation. Besides, last year the law on
the counteraction to the legalization (laundering) of rev-
enues gained by criminal means came into force.
The perspectives of the banking sector development
for 2003 look positive on the whole. The trend of its capi-
talization growth is quite stable. A 4-5% economy growth
results in the annual increase of the credit volume by 20-
22%. Provided that the monetary authorities manage the
banking sector risks in a careful and balanced way, one
could expect a considerable consolidation of the banking
system on the whole, business diversification and turn to
the real sector of economy.
Development of the Russian Banking System in 2002
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Trigger, blanched by fingers. Game-b
smelling by leather and a bit by a wet do
There is the same high autumn sky ov
you, and the report spreads far off, clou
are floating almost like in summer and t
gun is adjusted by many hunt generatio
who shouldered it the same way.
Piece-things. Hunt
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the situation in the global financial markets and the pos-
sibility for Russia to get an investment grade in the near-
est future, state securities can be considered very reliable
and liquid assets. The growth of the Bank bills of
exchange portfolio was very significant it increased by
almost 8 times up to RUR 618m (Chart 7). The portfolio
consists of bills of exchange of the largest reliable
Russian companies, mainly of extracting enterprises(Gazprom, TNK, etc.) as well as of the well-known
Russian banks (the Savings Bank, Vneshtorgbank,
Gazprombank, Trust Bank, Alfa-bank, etc.). Over 80% of
the portfolio securities circulated in the over-the-counter
market being quite liquid.
Sudostroitelny Bank also maintains high liquidity due
to considerable balances on NOSTRO correspondent
accounts: by the end of 2002 they were equal to RUR
4,115m (Chart 8).
Such an increase in the volume of operations has cer-
tainly affected the results of the Bank activities. In 2002
the Bank profit amounted to RUR 23,8m, thus exceeding
the result of 2001 by more than 10 times; and retained
earnings were equal to RUR 21,5m, exceeding the previ-
ous year result by more than 15 times (Chart 9).
The above indicated figures show only the profit
reflected in the accounts, whereas the Bank provision
which can be considered a deferred profit also grew sub-
stantially. It amounted to nearly RUR 210m as of the end
of 2002 exceeding the volume at the beginning of the
year by more than 2 times (Chart 10). Thus the total prof-
it of Sudostroitelny Bank from the beginning of its activi-
ties to the end of 2002 constituted RUR 250m including
all its reserves and provision. In addition to the sharehold-
ers capital this is a guarantee of stability and reliability of
the credit institution.
Sudostroitelny Bank is developing very intensively in
accordance with the worked-out strategy. The net profit
growth in the last year was mainly caused by the increase
in net operational revenues and optimal growth of non-
operational costs. The net operational revenues (accord-
ing to the Bank methodology) increased by more than
1.7 times up to RUR 178m in 2002. At the same time (as it
has already been mentioned above) their main part con-
stituted revenues from crediting. During 2002 the volumeof credits increased by over 2.5 times up to RUR 133m
making up 75% of net operational profit of the Bank
(Chart 11). Such a considerable increase in the field of
crediting of the real sector of economy has become pos-
sible due to a number of macroeconomic factors:
improvement of the investment climate in Russia, eco-
17
Main Results of Sudostroitelny Bank in 2002
The further rapid development of the Bank in 2002
yielded considerable results the Bank is now ranked
among 50 largest Russian credit organizations. The Bank
assets increased by more than 2.5 times up to RUR 8,493m
(Chart 1). This allowed the Bank to acquire greater value in
the market and to open new possibilities for itself and its
clients. The equity capital rose during the last year also by
2.5 times (up to RUR 1,660m, Chart 2). This made possibleto cover most risk assets by own resources.
The growth of the resource base was supported by the
growth of clients accounts. The 33% increase (up to RUR
2,007m, Chart 3) attained in 2002 exceeds substantially
average banking sector indices. It is quite a good result in
the view of a high market competition. One should empha-
size that the main progress achieved by the Bank in this
field i s conn ected with a number of factors including
acquisition of several big clients, continuing process of the
resource base diversification as regards to the main clients
and industries, as well as attraction of long-term resources.
A considerable growth in balances of the LORO
accounts is also to be noted. Performing regular operations
in the interbank market is quite a new area of the Bank
activities. The Bank started developing it intensively at the
end of 2001 and achieved considerable results already in
2002. A two times increase in the number of LORO
accounts and a four times growth of accounts balances
(Chart 4) were caused by the change of the Bank position
in the banking services market, the growth of clients confi-
dence and an active implementation of the policy aimed at
attracting other banks.
Successful issue of own bills of exchange for the total
sum of RUR 300m with over one year maturity date and
the rise in the equity capital resulted in the growth of the
credit portfolio, making it the main source of income.
During 2002 the credit portfolio increased by more than
3 times and reached RUR 1,842m (Chart 5). The weighted
policy of the bank management regarding credit risks
made this growth balanced and adequate. The Bank still
keeps to the policy of crediting its reliable clients and does
not use this tool as the main marketing trick for attracting
the new ones.
In addition to direct crediting of the real sector of
economy Sudostroitelny Bank trades actively in securities.During 2002 the volume of the emissive securities portfolio
(state and corporate bonds and shares) as well as the
shares traded actively in the over the counter market, was
almost doubled and reached RUR 250m (Chart 6). A con-
siderable part of it (over 60%) constitute state securities
Russian internal and external liabilities. Taking into account
16
Main Results of Sudostroitelny Bank in 2002
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19
Main Results of Sudostroitelny Bank in 2002
nomic growth, stabilization of national currency exchange
rate, decrease of inflation, positive surplus of the foreign
trade balance of Russia and some others. At the same time
the Bank continued developing and consolidating its mar-
ket position trading actively in securities. During 2002 the
Bank gained almost RUR 100m of its net income from this
market sector having exceeded the result of the previous
year by almost 2.5 times (Chart 12). At the same time the
Bank investments were properly diversified. This allowed
to reduce the risks and to draw stable profit.
It is important to note that the Bank management
exercises effective control over the expenses. Therefore
the total non-operational costs of the Bank increased by
only 2.2 times up to RUR 38,8m during 2002. One should
emphasize that most of these expenses were connected
with the personnel, marketing and advertising that corre-
sponds fully to the strategy of the Bank regarding its mar-
ket share growth.
To summarize one can say for sure that Sudostroitelny
Bank takes a strong position in the Russian banking market
and possesses high potential for the further development.
18
Sudostroitelny Bank in Russian Ratings as of January 01, 2003- 41st by the volume of net assets;
- 48th by the volume of equity capital;
- 12th by the assets growth;
- 22nd by the equity capital growth;
- 2nd by the volume of USD exchange deals in the System of Electronic Trading
of the Moscow Interbank Currency Exchange /SELT MICEX/ in 2002
Development of Basic Financial Indices in 2002- total assets increased by more than 2.5 times and amounted to RUR 8 493m as of January 1, 2003;
- equity capital increased by 2.5 times and reached RUR 1 660m;
- volume of clients accounts balances and issued bills of exchange increased by 33% and reached the level of RUR 2 007m;
- correspondent accounts balances rose by 4 times and amounted to RUR 3 823m.;
- total credit portfolio volume increased by almost 3 times (up to RUR 1 842m);
Main Results of Sudostroitelny Bank in 2002
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h!, - said an artist on opening the wi
dow and looking at diamond rime smelti
on a yellow leaf The sun is hurryi
through the mist. Ah! Kuznetsov
service comes to life in the morning y
low leafs on white ground, decorated by t
artists hand. The service is standing
your table and coffee in it has never h
time to get cold. And you always strive aft
the cup, so fragile and graceful, on
saucer, so suitable for hand.
Piece-things. China
Fi i l M k M M k S i i
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23
Financial Markets. Money Markets
In 2002 Sudostroitelny Bank significantly increased the
volume of operations and became one of the active partic-
ipants in all sectors of the Russian interbank market.
In accordance with the development strategy for 2002
the Bank was intensively broadening cooperation with var-
ious financial and credit organizations in the interbank
market. As a result during the last year the total number
of counterpart-banks increased by 2 times and exceeded
150. This allowed the Bank to improve considerably the
quality of liquidity management. At the same time the
regular analysis of the financial position of the countera-
gents made it possible to minimize risks and to adjust the
established credit limits in time.
During the last year the Bank consolidated its position
as an active foreign exchange operator at the Moscow
Interbank Currency Exchange (MICEX). From January to
December 2002 Sudostroitelny Bank occupied the second
place among the leading forex operators with respect to
the total volume of USD exchange deals. The Bank is also a
22
Operations with securities have always been an
important part of the Sudostroitelny Bank activities. The
basis of the Bank portfolio is comprised of instruments
with adequate reliability and high liquidity. First of all
these are ruble and currency nominated Russian govern-
mental bonds which possess good liquidity and high relia-
bility. During 2002 the Bank increased investments in
these instruments (Chart 13).
During 2002 the Bank portfolio of corporate bonds
extended significantly. Most of them are characterized
by both high liquidity and appropriate yield. Much atten-
tion was paid to the analysis of issuers reliability as well
as to the diversification of investments. As a result the list
of issuers by the end of 2002 was extended to 30. The
total volume of investments in this market sector grew by
more than two times in 2002 (Chart 14).
At the same time the Bank purchased bills of
exchange of well-known market issuers mostly banks.
This sector grew by more than 4 times and the invest-
ment volume exceeded RUR 600m (Chart 15).
The portfolio structure of Sudostroitelny Bank is
shown in Chart 16.
Besides, the Bank trades in shares in the Moscow
Interbank Currency Exchange (MICEX) using the system
of remote access. To meet the wishes of its clients and
partners, in 2003 the Bank will be ready to provide thepossibility of Internet-trading to its clients. The new serv-
ice will allow the clients to get on-line access to trading in
the main Russian stock exchanges.
Within the framework of the program accepted by
the Bank and aimed at providing the full range of services
in the financial markets to the clients, in December 2002
the Bank received the license of the professional securi-
ties market participant for depositary operations, issued
by the Federal Commission for the Securities Market.
Own depositary and Internet-trading possibility will
allow the clients to minimize their costs and raise the
effectiveness of their operations. Moreover the Bank has
obtained more opportunities to use securities as a mecha-
nism of a guarantied fulfillment of obligations by its
counterpart-banks regarding operations in the money
market. The Bank clients can now use not only bills of
exchange but also other securities to cover their credit
Securities
market-maker in the over-the-counter foreign currency
market. It regularly performs arbitrage operations, pro-
vides quotations for all kinds of market instruments with
narrow spread. As a result of appropriate foreign
exchange activities of the Bank, Sudostroitelny Bank
dealer Sergey Danilov was ranked among 10 best forex
dealers in Russia of 2002 (according to the traditional
competition poll of the Moscow International Currency
Association).
The Bank also consolidated its position in the market
of interbank credits. The number of counterpart-banks
which obtain credits on the security of counter deposits
and high-liquidity securities increased. At the same time
there rose the number of direct credit lines opened in
favor of Sudostroitelny Bank with other banks, that
reflects growing confidence of counterpart-banks.
Furthermore in 2002 the Bank performed operations
in the international FOREX market selling currency to
counterpart-banks and buying it on behalf of the clients.
Securities Correspondent banking
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25
Securities
lines. REPO-operations have allowed the Bank, on the one
hand, to satisfy the clients needs in short-term resources,
and on the other, to increase profitability in the volatile
market.
Besides, the Bank performs operations on managing
clients securities portfolios and related funds, carries out
collection operations and operations on domiciliation of
other issuers securities.
High profitability of the Bank from operations in the
stock market during 2002 is explained in many respects by
high professionalism of the securities department special-
ists. They have more than 8 years of the financial markets
expertise that enables them to render any consulting serv-
ices to the clients as regards to this rapidly developing
market.
24
Correspondent banking
In response to the growing demand of the clients for fast and quality settlements Sudostroitelny
Bank extended significantly its correspondent network. During 2002 the Bank established new relations
with 31 credit institutions, thus providing the clients with new possibilities of getting high quality bank-
ing services and expanding the geography of their business. Main correspondent banks of
Sudostroitelny Bank are Deutsche Bank Trust Company Americas (main account), Deutsche Bank AG,
Raiffeisen Zentralbank Oesterreich AG, Raiffeisen-Centrobank AG (main account), Union Bank of
California International. This allows Sudostroitelny Bank to maintain the high level of service and carry
minimum operational risks.
In 2002 Sudostroitelny Bank took new positions in the interbank services market. Developing a uni-
versal correspondent network and presenting a wide range of competitive banking products enabled
Sudostroitelny Bank to become a settlement bank for a great number of its counteragents and to
attract new counterpart-banks for cooperation. In 2002 the Bank opened correspondent LORO
accounts for 29 banks, that exceeds the result of the previous year by 2 times. This was possible due to
the established high reputation of the Bank in the interbank market, efficient organization of service
for correspondent banks and use of the latest technologies. Real-time account management using the
Internet bank-client system SBANK.RU allowed the correspondent banks to make settlements for their
clients in a more efficient and operative way; favorable dollar transfer rates, a prolonged operational
banking day, as well as possibility of intraday overdrafts were decisive factors for concluding partner-
ship agreements with Sudostroitelny Bank. Besides, being one of the market-makers in the foreign
exchange market enabled the Bank to offer to its clients favorable exchange rates.
Stable financial position, growth of main economic indices of the Bank and informational openness
determined the considerable increase of the number of counterpart-banks as regards to the interbank
operations. In 2002 the Bank concluded 69 general agreements on cooperation in the interbank market,
and average daily correspondent accounts balances increased by more than 4 times. The progress
achieved in the interbank settlements sector allows making plans for the future with confidence. The
worked-out strategy of the Bank regarding the development of correspondent relations implementsfurther improvement of the settlement services quality with respect to the established correspondent
relations, introduction of new banking products, extension of the correspondent relations network and
gradual development of the Bank activities in the regions of Russia and near foreign countries.
Piece-things Cigar
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The cigar, put into the box by a Cuban bo
in 1980, smells like the cigar, rolled on t
thigh of a mulatto girl of the year 1800:
coffee, of dusk, of rum and of a casual f
buster from the schooner "Bloody Mary
Admiral Nelson or another one-eyed we
those who drowned it ten years after t
mulatto and the filibuster had met. T
same, fingers stirs, unique for centuri
the same rumba rhythm and moist brea
of the ocean, saving the leaf from premture death.
Piece things. Cigar
Client Policy Client Policy
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2928
Clients are one of the main assets for Sudostroitelny
Bank. The Bank tries to improve its infrastructure in
accordance with the clients needs and to renew its infor-
mation and resource base for maximum support of their
businesses. Any financial product of the Bank is elaborat-
ed for each customer with a view of his personal
demands and business peculiarities. Thus, the Bank ren-
ders unique services to its clients. Each client feels atten-
tion towards him and his problems irrespective of his
banking account and business field.
Although corporate clients remain a priority direction
of the Bank activities, its working principles apply to pri-
vate persons as well. According to marketing researches
Sudostroitelny Bank has a reputation of a reliable partner
among its clients. The Bank seeks not only to maintain a
high level of quality of the services rendered but also to
make a special atmosphere of mutual respect and confi-
dence in relations with the clients. Such approach of the
Bank to the customer service makes it possible that the
clients allow the Bank to participate in their business
plans not only in the financial part of the business but
also in production and service areas.
Close cooperation with the partners, individual work
with potential clients, operative decision-making process
and information openness determine the stable growth of
Sudostroitelny Bank client base. In 2002 the number ofaccounts opened with the Bank increased substantially: a
number of corporate accounts grew by 40%; a number of
personal accounts - by more than 10%. At the same time
during the year there was a steady rise in clients accounts
turnover and balances by the end of the year the increase
in average daily account balances amounted to 33% and
exceeded RUR 2bn. The success of the Bank in this field is
explained by the acquisition of a number of new big clients,
by the diversification of the resource base as regards to
main clients and industries, as well as by the increase in the
volume of the attracted long-term resources.
y y
Sudostroitelny Bank pays much attention to improv-
ing the quality of the banking service and developing the
range of services rendered. In 2002 several important
services were introduced. The Bank joined the "Customs
card" system and started effecting customs payments by
using a special microprocessor card. Besides, the Bank
became an Associate member of the VISA International
payment system, issued own cards VISA Gold, VISA
Classic and VISA Electron, and launched the so-called
"salary projects", i.e. started rendering services to its
clients connected with salary payment at their enterprises
by means of these cards. For both corporate clients and
private persons the Bank afforded an opportunity to
open new kinds of deposits, including euro deposits.
Sudostroitelny Bank has always been taking leading
positions in the Russian market regarding the introduc-
tion of the latest technologies and offering new bank-
ing products. The SBANK.RU internet-banking system
developed and introduced by the Bank experts is consid-
ered today one of the best by the quality of online-serv-
ices rendered and the number of clients using it. The
system allows opening an account and operating it via
the Internet irrespective of the client location. At the
same time it provides the multilevel information protec-
tion. Extensive functional opportunities, simplicity and
convenience of the system determine the growth of theclients number and the expansion of the client base
geography.
The high-quality banking service, progressive and
competitive settlements and information technologies
attract new remote clients, whose businesses involve
extracting and processing of gold and other precious
metals. Taking into account the clients needs and
favorable prospects for the gold market development,
Sudostroitelny Bank took decision about entering into
the precious metals market. Therefore the Bank started
preparing the necessary documentation and elaborating
new banking products to be in a position to serve clients
of this business sector.
Sudostroitelny Bank client policy in 2003 is aimed at
extending the range and improving the quality of the
banking services and products offered to corporate
clients; introducing new financing possibilities, includ-
ing project and trade financing; performing the func-
tions of a finance operator and expert in projects on
extracting and processing precious metals; increasing
the volume of card acquiring services rendered.
An important component of the Bank plans for
2003 is the extension of the banking service provided to
private persons. Having analyzed the needs of existing
and potential clients, and the situation in the Russian
financial market, the Bank took decision to develop the
private banking sector. This line of the activities is
intended for the clients whose tight time schedule does
not allow them to place efficiently their free capital and
to control its movement regularly. The Bank takes this
function upon itself. Already now the Bank serve a large
number of clients in this area: businessmen, public rep-
resentatives, art figures and well-known sportsmen.
Crediting Crediting
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3130
In 2002 corporate crediting remained one of the
key activities of Sudostroitelny Bank. The volume of
the credit portfolio increased by almost 3 times and
reached RUR 1 842m. At the same time the increase
in the volume of credits was accompanied by an ade-
quate control over credit risks. While determining
the form and payment terms of crediting the Bank
paid much attention to the valuation of the financial
position of the client and its main contractors,
to the development prospects of the clients business,
to the liquidity of assets pawned. While determining
the value of products or property pledged the Bank
always considered the market situation as regards
to these products and property. The strict control over
the crediting process was reflected in the structure
of the Bank credit portfolio: most part of credits
(45%) was given on the security of property, 25% -
on the security of securities and 30% - on the security
of a guarantee.
As in the previous year, in 2002 the basis of the
credit portfolio consisted of the credits provided to
companies. They constituted 94% of the credit portfo-
lio. The Bank credited corporate clients mainly for the
following purposes: financing of working capital, pro-
duction equipment modernization, export and import
operations, production and sale of consumer goods.For the most part credits were given in the currency
of the Russian Federation (about 70% of the total vol-
ume of credits in 2002).
The structure of the credit portfolio changed to a
certain extent as regards to the terms of crediting. The
volume of short-term credits provided to trade organi-
zations for the purposes of working capital financing
increased substantially (up to 22% of the total amount
of credits). It is connected with the considerable
increase of the trade operations volume of some clients
of the Bank. As before, the medium-term loans (from
181 days to 1 year) constitute the most part of the
amount of all credit resources provided 35%.
The growth of the credit portfolio and changes in its
structure resulted in the financial year in increase of the
interest revenues of the Bank.
The development strategy of the Bank credit activ-
ities is aimed at extending the network of clients
which are credited by the Bank head office and the
branch in St. Petersburg. In 2002 the Bank improved
"traditional" forms of crediting and extended the
range of services through developing new forms of
crediting. Today the Bank offers to its clients a wide
range of credit products:
- Crediting of trade operations, crediting of invest-
ment projects aimed at business development and
modernization;
- Short-term overdraft crediting in case of insufficient
resources on the account;
- Opening, execution and advising of letters of credit,
and providing bank guarantees;
- Crediting of technological equipment leasing, as well
as factoring operations
Leasing Collection
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3332
In 2002 Sudostroitelny Bank was intensively developing
leasing operations.
The largest projects in the financial year involved
acquiring the equipment for a factory producing printing
presses (Smolensk), acquiring the fleet of railway cars for
one of the Russian transport companies (Moscow).
Besides, the Bank financed projects on leasing of shop
equipment for a chain of stores, polygraph, food-process-
ing and computer equipment.
As of the 1st January, 2003, the amount of leasing
contracts concluded (the volume of leasing payments of
clients from the moment of concluding leasing contracts
till their expiration in 2003-2009) is more than RUR 287m,
that exceeds the result of the previous year by 3.3 times.
In 2002 the Bank concluded leasing contracts for the sum
of more than RUR 200m.
A modern collection service is a distinctive feature of Sudostroitelny Bank. A high level of the special-
ists qualification contributed to an intensive development of this area in 2002.
The resource base of the service includes special equipped armored cars, all necessary communication
facilities, and a professional escort guard. The routes of collection cover the whole Moscow region.
The main collection services of Sudostroitelny Bank include:
- 24-hour collection of cash and its immediate transfer to the clients account (on the same day);
- delivery of cash and securities on the clients request;
- money delivery for payroll payments with the selection of bank notes of the required nominal value;
- escort of companies cashiers and forwarding agents using special transport;
- free collection of slips from acquiring services, etc.
A high level of efficiency and quality of services rendered by the collection service, and one of lowest
tariffs in Moscow were highly appreciated by the Bank clients. During 2002 the number of clients using
the collection services regularly increased by 7 times.
Piece-things. Silver
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Silver never dies. But it becomes alive on
in the masters hands. And then silver g
a sound: languishing dark Shakherizad
songs, bell ligature of Solovey or str
and splendent accord of fugue in D Min
You will find your silver and it will ne
turn black and every evening your, ju
your music will be heard off the dam
table-cloth.
Plastic Cards Latest Technologies
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3736
In 2002 Sudostroitelny Bank as an Associate member
of the VISA International payment system started issuing
own cards VISA Electron, VISA Classic and VISA Gold.
Paying much attention not only to the quantity but also
to the quality of services the Bank offered to its cardhold-
ers a number of additional services.
For its regular clients the Bank issues real credit cards
VISA Classic and VISA Gold with individually fixed credit
limit. The credit is granted as a permitted overdraft: by the
lack of own resources the client can make use of the
resources of the Bank.
Holders of all types of cards can manage their accounts
at any time from any place of the planet, and receive full
information on all operations using the SBANK.RU inter-
net-banking system. Credit card holders can also find out
any information regarding their credit indebtedness and
interests
Sudostroitelny Bank is one of the first Russian banks
that started rendering a new service sending SMS mes-
sages on the cardholders mobile phone to inform him of
the card payment limit. The cardholder can be a subscriber
of any Russian or foreign mobile telecommunication oper-
ator. This service is rendered free of charge.
There is a discount program granting the holders of the
Sudostroitelny Bank plastic cards a discount for the pur-
chase of goods and services by enterprises participating inthe program. VISA Gold cardholders are offered free insur-
ance in one of the largest American insurance companies
AIG-RUSSIA.
One of the most important events in the develop-
ment of the Bank plastic cards program was the issue of
VISA GOLD cards to the management and players of the
Professional Hockey League of the RF, and VISA Classic
salary cards to the Bank employees and a number of
clients. In December the Bank paid annual interests
charged monthly on balances of cards special accounts.
As a result at end of 2002 the total volume of bal-
ances of cards special accounts amounted to RUR 8,96m.
Average monthly card accounts turnover in the forth
quarter of 2002 made up RUR 1,55m.
In 2002 the Bank also began issuing and servicing
customs cards for legal entities. The annual customs
cards turnover amounted to RUR 55,8m.
In 2002 Sudostroitelny Bank became a registered
Acquiring agent in the VISA International payment system. The
Bank offers acquiring services to more than 80 trade-services
enterprises. As of the end of the year the monthly turnover
with regards to these enterprises amounted to RUR 32,3m.
For the purposes of accounting for its acquiring
clients the Bank offers a special service the possibility
of viewing all card transactions for any time period via
internet-banking system SBANK.RU.
Among the Bank clients in the field of acquiring are
such companies as Orchidee Sauvage, Bustier, Caligula,
Baltman, Econika-style and others.In 2003 the Bank is planning to issue VISA corporate
cards and starting intensive promotion of salary proj-
ects into the market.
The introduction and development of the latest tech-
nologies is an indispensable condition for successful activi-
ties of a modern commercial bank. In this area
Sudostroitelny Bank has always been one of the leaders in
the national market.
The SBANK.RU internet-banking system, which was
developed and introduced by the bank experts is considered
today one of the best in the market. This can be confirmed
by a high quality of the on-line service and a great number
of clients using it. The system allows opening a bank account
and managing it via the Internet irrespective of time and
location of the client. SBANK.RU provides a multi-level pro-
tection of all information.
The installation of the system does not require any spe-
cial software or technical adjustment. It is simple and con-
venient in use. Functional possibilities of the SBANK.RU sys-
tem are quite extensive. The system allows the client to per-
form control over all its accounts transactions, provides
access to operational information. All this enables the Bank
to attract new clients and expand the geography of the
client base.
By the end of 2002 more than 60% of the clients started
using the SBANK.RU system. The number of users increased
by 3.5 times. The number of logins was growing steadily
during the year and finally it increased by almost 3 times: in
the 4th quarter of 2002 the logins number was greater thanin the year 2001 on the whole. The number of documents
processed by the system grew by 1.7 times.
The SBANK.RU system is developing steadily: its func-
tional possibilities and the range of services are extending. In
2002 Sudostroitelny Bank issued own plastic cards. For the
cardholders a new service was introduced. The clients can
now control their card transactions and inquire information
about their account balances via the internet-banking sys-
tem. On request the clients can receive on their mobile
phones sms-messages informing of the card payment limit.
For the purposes of accounting by the clients which use
acquiring services, the Bank offers an opportunity of view-
ing all card transactions in SBANK.RU for any indicated peri-
od of time.
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Balance Sheet as of the 1st January, 2003 Income statement for 2002
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43
No. Items For the accountingperiod
ASSETS Thousand rubles1. Funds and accounts with the Central Bank of Russia 438 8932. Required provision with the Central Bank of Russia 126 6793. Funds with credit institutions less provision (3.1 3.2) 3 726 0263.1 Funds with credit institutions 3 727 1213.2 Provision for possible losses 1 0954. Net investments into commercial securities (4.1 4.2) 201 3864.1 Investments into commercial securities 201 3864.2 Provision for the securities depreciation and possible losses 05. Loans and advances to clients 3 737 3446. Provision for possible losses 205 0747. Loans and advances to clients - Net (5-6) 3 532 2708. Accrued interest (including overdue) 771
9. Net investments into securities held till maturity (9.1 9.2) 09.1 Investments into securities held till maturity 09.2 Provision for possible losses 010. Fixed and intangible assets, ho usehold materials, not valuable an d high-wear items 16 27 811. Net investments into securities for resale (11.1 11.2) 46 82911.1 Securities for resale 48 74911.2 Provision for the securities depreciation and possible losses 1 92012. Deferred charges of other operations including/excluding accrued interest 1 93013. Other assets less provision (13.1 13.2) 402 25813.1 Other assets 402 28913.2 Provision for possible losses 3114. Total assets (1 + 2 + 3 + 4 + 7 + 8 + 9 + 10 + 11 + 12 + 13) 8 493 320
LIABILITIES15. Loans from the Central Bank of Russia 016. Credits from other banks and credit institutions 4 511 43617. Clients accounts 1 786 73017.1 Including personal accounts 72 89818. Deferred income from other operations 019. Issued bills of exchange 513 96820. Other liabilities 20 50521. Provision for possible losses from term investments and off-balance liabilities,
a nd fr om set tle men ts wi th deb to rs r eg ar di ng tr an sa ct io ns wit h o ff -sh ore r es id en ts 2 4 7122. Total liabilities (15 +16 + 17 + 18 + 19 + 20 + 21) 6 835 110
EQUITY23. Authorized capital (Shareholders equity) (23.1 + 23.2 + 23.3), including: 1 660 00023.1 Registered common equities 1 660 00023.2 Registered preference equities 023.3 Unregistered authorized capital of non-joint stock credit institutions 024. Treasury stocks, bought out from shareholders 025. Capital surplus 026. Funds and profit at the disposal of the Bank 14 09727. Revaluation of fixed assets 3528. Profit (loss) for the accounting period 23 79829. Dividends, charged from the current year profit 030. Distributed profit (excepting dividends) 2 34131. Retained earnings (28 29 30)* 21 45732. Expenses and risks affecting on equity 37 37933. Total eq uity
(23 23.3 24 + 25 + 26 + 27 + 31 32 for profit-making credit institutions),(23 23.3 24 + 25 + 26 + 27 +28 32 for loss-making credit in stitutions) 1 658 210
34. Total liabilities and equity (22 + 23.3 + 33) 8 493 320
OFF-BALANCE LIABILITIES35. Irrevocable liabilities of the Bank 4 073 54936. Guarantees issued by the Bank 46 889
*) items 29, 30, 31 are to be filled in only by profit-making credit institutions.
Trust management operations were not performed
42
No. Items For the accounting
period
Interest and similar income Thousand rubles
1. Placement of credits, deposits, loans and money on accounts with other banks 18 762
2 . L oa ns t o o th er c li en ts 1 45 6 49
3. Funds provided for leasing 0
4. Securities with fixed interest rate 19 105
5. Other sources 872
6. Total interest and similar income (1+2+3+4+5) 184 388
Interest and similar expenses
7. Funds of other banks, including loans and deposits 22 419
8. Funds of other clients, including loans and deposits 127
9. Issued bi ll s of exchange 21 68810. Rental 2 940
11. Total interest and similar expenses (7+8+9+10) 47 174
12. Net interest income (6 11) 137 214
1 3. C om mi ss io n i nc om e 1 2 4 62
14. Commiss ion expenses 15 078
15. Net commission income (13 14) - 2 616
Other operating income
16 . I nc om e f ro m o pe ra ti on s w it h f ore ig n c urr en cy, i nc lu di ng c urr en cy ex ch an ge i nc om e 3 60 2 00
17. Income from operations of buying/selling of precious metals, securities and other assets,
positiv e results of revaluation of precio us metals, securities and other assets 7 0 7 39
18 . D iv id en d y ie ld 39
19. Other current income 3 144
20. Total other operating income (16+17+18+19) 434 122
21. Total current income (12+15+20) 568 720
Other operating expenses
22. Payroll 10 719
23. Other operating expenses 26 787
2 4. E xp en se s f ro m o pe ra ti on s w it h f or ei gn c ur re nc y, i nc lu di ng c ur re nc y e xc ha ng e e xp en se s 3 82 7 4525. Expenses from operations of buying/selling of precious metals, securities and other assets,
negative results of revaluation of precious metals, securities 3 488
26. Other current expenses 12 312
27. Total other operating expenses (22+23+24+25+26) 436 051
28. Profit before provisions and unforeseen income/expenses (21 27) 132 669
29. Increase of provision for bad and doubtful debts 105 345
30. Increase of provision for devaluation of securities 20
31. Increase of other provision 3 506
32. Profit before unforeseen income/expenses (28293031) 23 798
33. Unforeseen income after deduction of unforeseen expenses 0
34. Profit before taxation (32 + 33) 23 798
35. Profit tax *) 2 341
3 6. D ef er re d p ro fi t t ax 0
36a. Unforeseen expenses after taxation 0
37. Net profit for the accounting period (34 36 36a) 23 798
Cash flow statement for 2002 Information about fulfillment of main requirements (mandatory indicators ),specified by normative acts of the bank of russia, as of 1st January, 2003
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Mandatory indicator Amount or percentage
as of the accounting date
1 The indicator of the sufficiency of bank's own resources (capital) (N1, %) 24,72 The value of an estimated provision for possible losses on loans, calculated in accordance
with the requirements specified by normative acts of the Bank of Russia (thousand rubles) 205 0743 The value of set up provision for possible losses on loans (thousand rubles) 205 0744 The calculated value of provision for securities devaluation and possible losses, calculated in accordance
with requirements specified by normative acts of the Bank of Russia (thousand rubles) 5 5175 T he v al ue o f s et up pr ov is io n for s ec ur it ie s d ev al ua ti on a nd po ss ib le l os se s ( th ou sa nd ru bl es ) 5 5 17
Chairman of the Board Golubkov A.K.
Chief accountant Zubova E.K.
4544
No. Items Cash flow
for the accounting period
I Cash flow from operating activities: Thousand rubles
1. Interest income 184 388
2. Interest expenses 47 174
3. Commission income 12 462
4. Commission expenses 15 078
5. Income from operations with foreign currency 6 309
6 . I nc om e fro m o pe ra ti on s o f b uy in g/ se ll in g o f p re ci ou s m et al s, s ec ur it ie s a nd o th er a ss et s 6 6 4 85
7. Loss from operations with foreign currency 7 922
8. Lo ss from operations of buyin g/selling of precio us metals, securities and other assets 199
9. Dividend yield 39
10. Other operating income 3 144
11. Other operating expenses 49 818
12. Unforeseen expenses after taxation 0
13. Total income/expenses (13.1 + 13.2), including: 150 029
13.1 Income/expenses (1 2 + 3 4 + 5 + 6 7 8 + 9 + 10 11 12) 152 636
13.2 Increase of income/expenses -2 607
14. Payments to the state budget from income, payments for charity and other purposes - 1 054
1 5. C as h f lo w fro m o pe ra ti ng ac ti vi ti es b ef or e c ha ng es i n c ur re nt a ss et s/ li ab il it ie s ( 13 + 14 ) 1 48 97 5
Changes in current assets
16. Required provision with the Central Bank of Russia - 78 723
17. Funds with credit institutions -2 166 489
18. Investments in commercial securities - 129 238
19. Loans and advances to clients - 2 796 077
20. Other assets 367 885
Changes in current liabilities
21. Loans from the Central Bank of Russia 0
22. Credits from other banks and credit institutions 3 456 025
23. Clients accounts 728 001
24. Other liabilities -25 494
25. Net cash flo w from curren t op erations (16 + 17 + 18 + 19 + 20 + 21 + 22 + 23 + 24) - 644 110
26. Net cash flow from operating activities (15 + 25) - 495 135
II Cash flow from investment activities
27. Fixed and intangible assets, ho usehold materials, not valuable an d high-wear items - 3 837
28. Investments into securities held till maturity 66 926
29. Investments into securities for resale -44 949
30. Net cash flow from investment activities (27 + 28 + 29) 18 140
III Cash flow from financial activities
31. Authorized capital (shareholders equity) 1 000 000
32. Treasury stocks, bought out from shareholders 0
33. Capital surplus 0
34. Funds and income at the disposal of the Bank 653
35. Dividends, charged from the current year income 0
36. Issued bills of exchange 38 94337. Net cash flow from financial activities (31 + 32 + 33 + 34 + 35 + 36) 1 039 596
38. Positive/negative results of revaluation of precious metals, securities and fixed assets;
charged funds, not included in the finance result, and other components - 51 364
39. Net flow of cash (26 + 30 + 37 + 38) 511 237
40. Amount of cash an d it s equivalents as o f the beg inning of the accounting period 844 472
4 1. A mo un t o f ca sh an d i t s e qu iv ale nt s a s o f t he en d o f th e ac co un ti ng per io d (3 9 + 40 ) 1 35 5 7 09
Unconditionally positive conclusion
In our opinion, financial (bookkeeping) accounts of Commercial bank "Sudostroitelny Bank" (Limited Liability Company) shows
in all existing respects the true financial position as of 1st January, 2003, and results of financial-economic activities for the peri-
od from the 1st January, 2002 to the 31st December, 2002 inclusive.
Auditing organization Limited Liability CompanyFinExpertiza
License number 002588
Date of license issue 06.11.2002
License expiration date 05.11.2007
License issuing authorities Ministry of Finance of the Russian Federation
Name of the director of the
auditing organization Elena A. Trubnikova
Person who approve the present accounts:
- Name of person who approve
he present accounts Elena A. Trubnikova
- Position General director
- Number of a document certifying
the authority of the person, who approved
the present accounts 1
- Date of a document certifying
the authority of the person, who approved
the present accounts 04.01.2003
- Document certifying the authority of the person,
who approved the present accounts rder
Piece-things. Watches
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8/4/2019 Sbank Ar2002 Eng
24/25
Time is impassive and implacable. Tim
breaks up worlds, washes down civili
tions. But your Grandfathers watch, cou
ing off inexorable time, connects you, yo
father, your grandfather and that mast
with an ancient magnifier on his brow, w
held time current in his fingers and creat
for centuries ahead. For son, for grandso
for great-grandson. For your son.
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Photos by Vladimir Clavijo-Telepnev
48
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