fp-internationalization of russian companies
TRANSCRIPT
INTERNATIONALIZING OF A COMPANY
OF EMERGING MARKETS: RUSSIA
Hafiz Poladzade MA IB 2013
26th February 2014
AGENDA
Sberbank Rossii at a glance
Retrospect – History of Sberbank
Development
International Success Factors
Market Situation
Strategy for Future
Discussion
Sberbank Rossii at a Glance
AT A GLANCE
3rd biggest bank of Europe (2011)
Shares
50% RF Government
50% Public Shareholders
70% of RF population use services of Sberbank
18212 department in 89 regions of Russia
17 federal branches
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
SBERBANK GROUP OF COMPANIES
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
History of Sberbank
HISTORY OF SBERBANK
1841 1895
1895 1917
1917 1941
1941 1953
1953 1991
1991 2008
2009 2013
First customer of the first bank in the country
Growth up to 500 customers a day
3875 saving banks
2,000,000 issued savings book
The first revolution and global changes in the policy of
Sberbank.
Established a new Charter for state savings banks.
Development and transformation of Sberbank during
the "thaw", "stagnation" and "perestroika“ periods.
Global changes of Sberbank of Russia: Life on the new
economic laws.
Sberbank entered the top 20 banks by market capitalization.
Sberbank has canceled all fees for reviewing and issuing loans.
Twice been reduced lending interest rates.
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
DEVELOPMENT
DEVELOPMENT
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
DEVELOPMENT
DEVELOPMENT
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
Price history:
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
DEVELOPMENT
DEVELOPMENT
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
INTERNATIONAL SUCCESS FACTORS
SBERBANK IN THE WORLD
≈ 250.000 employees
in 22 countries
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
INTERNATIONAL SUCCESS
Joint Ventures
Acquisitions
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
MARKET SITUATION
MARKET SITUATION
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
MARKET SITUATION
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
Source: The Banker, July 2013
Rank Bank CountryAssets ($
million)
Pre-tax
profit ($
million)
Return on
assets
(%)
49 Industrial Bank China 519.484 7.381 1.42%
50 China Minsheng China 513.256 8.094 1.58%
51 China Merchants Bank China 505.301 4.027 0.80%
52Shanghai Pudong Development
BankChina 502.663 7.151 1.42%
53 Resona Holdings Japan 500.641 3.302 0.66%
55 Itau Unibanco Holding Brasil 498.093 9.867 1.98%
56 Dexia Belgium 473.656 -3.990 -0.84%
Ranking by Asset size
MARKET SITUATION
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
MARKET SITUATION
Cost efficiency at Sberbank and other leading global banks
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
MARKET SITUATION
Performance comparisons:
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
MARKET SITUATION
Mean-variance optimal portfolio:Performance comparisons:
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
Source: wolframalpha.com
“Sberbank’s strategy is very ambitious and aggressive”
Mark Rubinstein
STRATEGY FOR FUTURE
: “Improve efficiency by cutting cost and workers”
Sberbank plans to cut 30.000 workers and close 3600 branches in next 5 years
After announcement: - gains raised 2.4% to 104.20 rubles at 6 p.m. Moscow
- the lender’s stock has surged about 12 % this year
- outpaced the Micex Index’s 1.7 % advance
STRATEGY FOR FUTURE
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
STRATEGY FOR FUTURE
Key financial indicators for Sberbank’s activities
The Goal - doubling the size of our net income and maintaining its annual
rate of growth at a level of 14–16%
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
BANKING MARKET INDICATORS IN COUNTRIES
WHERE SBERBANK OPERATES: HISTORICAL DATA AND
FORECASTS
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
STRATEGY FOR FUTURE
Russian corporate business: segment structure
Structure of the loan portfolio for Russian Business
STRATEGY FOR FUTURE
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
STRATEGY FOR FUTURE
International regional business: regional structure
Structure of the loan portfolio for International Business
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
STRATEGY FOR FUTURE
Key themes of Strategy
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
OPPORTUNITIES AND CHALLENGES
OPPORTUNITIES AND CHALLENGES
New technology is a competitive factor in the financial markets
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
OPPORTUNITIES AND CHALLENGES - PROFITABILITY
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
DISCUSSION
Is improvement of efficiency by cutting workers and branches acceptable solution?
How it can affect the reputation of Sberbankfrom local and international point of view?
Hafiz Poladzade MA IB 2013. Emerging Markets and International Trade. 26th February, 2014.
Thank you for your Attention!
Questions and Comments
are welcome!
REFERENCES
The Banker. Top 150 Banks Worldwide Ranked By Asset Size: http://www.cba.ca/contents/files/statistics/stat_bankranking_en.pdf
Bloomberg. Sberbank to Cut 30,000 Employees in Effort to Double Profit: http://www.bloomberg.com/news/2013-11-12/sberbank-to-cut-30-000-workers-in-bid-to-double-profit-by-2018.html
Sberbank: 2009-2014 strategy highlights: http://sberbank.ru/common/img/uploaded/files/pdf/normative_docs/sberbank_strategy_presentation.pdf.
Sberbank Development Strategy: 2014-2018: http://sberbank.ru/common/_en/img/uploaded/files/SberbankDevelopmentStrategyFor2014-2018_en.pdf.
Comparison of Sberbank, HSBC, Volksbank: retrieved on 13.02.2014 from http://www.wolframalpha.com/
History and Achievements: http://www.sberbank.ru/en/about/about_sberbank/history_achievements/
Sberbank in Numbers (IFRS): http://www.sberbank.ru/en/shareandinv/financialresultsandreports/innumbers/