Money market operations, cash and precious metals trading

Throughout 2011, Sberbank maintained its position as a key player on the interbank lending market and domestic foreign currency market. The total volume of foreign exchange transactions on the interbank and stock exchange markets reached RUB 33.3 trillion, while deposit transactions (interbank lending and redistribution of funds among banks) totalled RUB 72.7 trillion. The value of foreign exchange and deposit transactions with the currencies of CIS states and other former Soviet Republics was more than RUB 20 billion.

On the derivatives front, much attention was given to developing our customer base and trading infrastructure and to promoting derivative products for corporate customers. For transactions with corporate customers, the Bank drafted a template agreement governed by English law and a framework agreement governed by Russian law, and developed guarantee mechanisms (a share pledge and collateral agreements) for derivative transactions. The Bank also actively promoted a new product range incorporating interest rate derivatives and structured deposits. Derivative transactions with customers totalled USD 7 billion in 2011. According to expert estimates, Sberbank’s share in the derivatives market increased from 1-2% to 10%.

Sberbank maintained its position as a key player on the interbank lending market and domestic foreign currency market

There was a lot of activity on the foreign currency trading market in 2011 due to highly volatile exchange rates. As a result, Sberbank increased the volume of bank note transactions to USD 18 billion or 1.5 times the figure for 2010, while its share of import and export trading of foreign currency grew from 22.4% to 36.7%.

The total volume of precious metals trading transactions outside Russia, excluding swap deals, rose by a factor of 1.2 to USD 7.6 billion, while swap deals dropped from USD 4.9 billion to USD 2.6 billion, mainly because there was no need to use the swap mechanism as a source of US Dollar funding throughout most of the year.

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