cost of corporate funding remained unchanged during the quarter at 2.7%.

Net LDR ratio equaled 88.4% in 1Q 2021, down by 2.3 pp compared to 4Q 2020.

Securities portfolio grew by 0.9% in 1Q 2021 and amounted to RUB6.6 trn, mainly from purchases of the OFZ bonds.

The Group net fee and commission income increased by 6.3% y/y in 1Q 2021 to RUB134.3 bn on the back of high comparison base of 1Q 2020, and were driven mainly by high transactional activity. ? Net income from bank cards grew by 10.8% y/y, driven by recovery in acquiring turnover. ? Transport acquiring is now available in 142 Russian cities.

The combined operating income before provisions of the segment Wealth management and brokerage reached RUB16.3 bn, up by 17.3% in 1Q 2021. Assets under management increased by 3% to RUB1.8 trn. The share of sales of the Wealth management products in digital channels increased by 1.5x to 28%. ? Net assets under custody on retail brokerage accounts were almost RUB 2 trn by the end of 1Q 2021. ? A new product, Responsible Investments, with a focus on stocks of Russian companies that comply with the principles

of sustainable development, has become available to retail investors.

The combined operating income before provisions of the segment Risk insurance was RUB18.7 bn, down by 5.1%. The decline in the segment income was the result of an active flow of customers to online channels in 2020 against the backdrop of a pandemic. Rapid sales growth in digital channels has partially offset their decline in physical network.

The revenues8 of the segment Non-financial business increased 4x y/y to RUB33.6 bn for 1Q 2021. ? SberMarket GMV increased 6.5x y/y to RUB9.9 bn in 1Q 2021. The number of orders for the quarter exceeded 3.5 mn,

almost 10x greater than a year-ago. ? In April 2021, Sber acquired an 85% stake in the marketplace goods.ru, that was rebranded into SberMegaMarket. It

would become the core multi-category

e-commerce platform for Sber, and already presents 16 main categories and 2.5 mn SKUs. ? In February 2021, Sber completed the acquisition of a 45% stake in one of the leading Russian online pharma

delivery services, EApteka, that was rebranded into SberEApteka.

The Group operating expenses were up by 7.1% y/y to RUB179.9 bn in 1Q 2021. The efficiency of the financial business improved significantly thanks to the technological transformation and growth of sales in digital channels, that led to the reduction of headcount in the financial segment. Overall, the Group total headcount was down by 7.4 ths employees to 278.2 ths for the quarter. At the same time, the number of employees engaged in the development of the non-financial services increased.

The Group Cost-to-Income ratio6 for the banking business was down by 1.4 pp y/y to 29.3% in 1Q 2021.

The combined provision charge including revaluation of loans at fair value amounted to RUB25.5 bn, while the combined Cost of Risk was 41 bp in 1Q 2021. ? Net credit loss allowance charge for loans at amortized cost amounted to RUB 44.2 bn in 1Q 2021, and the Cost of

Risk was 74 bp in 1Q 2021. The positive revaluation of loans at fair value due to change in credit quality, was

RUB18.7 bn.

The credit quality of the loan portfolio remained merely unchanged in 1Q 2021. The share of Stage 3 and POCI loans in loans at amortized cost was 6.76%, up 15 bp, as compared to 4Q 2020.

Total provision coverage of impaired loans in 1Q 2021 was down by 3.9 pp to 98.9% as compared to 4Q 2020.

Selected Capital Adequacy Results

The data in the table is in accordance with standardized and IRB approaches applied to the corresponding assets groups.

Risk-weighted assets under a standardized approach as of 31.03.2021 and 31.12.2020 were assessed according to Basel 3.5.

Risk-weighted assets under an IRB approach as of 31.03.2021 and 31.12.2020 were assessed according to Basel 3.5. 


                                                                                   31.03.2021 / 
Under Basel 3.5 
                                            31.03.2021         31.12.2020          31.12.2020 
RUB bn, unless stated otherwise 
                                                                                   % change 
Common equity Tier 1 capital                          4 922.1              4 719.9 4.3% 
Tier 1 capital                                         5 072.1            4 869.9  4.2% 
Total capital                                         5 261.4             5 008.9  5.0% 
Risk-weighted assets                                34 421.2            34 124.2   0.9% 
Credit risk                                        29 425.8            29 253.9    0.6% 
Operational risk                                     3 664.3             3 664.3   0.0% 
Market risk                                            1 331.1            1 206.0  10.4% 
Ratios 
Common equity Tier 1 capital adequacy ratio 14.30%             13.83%              -- 
Tier 1 capital adequacy ratio               14.74%             14.27% 
Total capital adequacy ratio                15.29%             14.68%              -- 
Leverage ratio                              12.9%              12.9%               --

Common equity Tier 1 capital increased by 4.3% for 1Q 2021 to RUB4,992.1 bn from net profit earned for the reporting period.

The Group's total capital increased by 5% for 1Q 2021 to RUB5,261.4 bn from growth of CET1 capital, as well as placement of subordinated bonds in the amount of RUB56 bn.

The Group's risk-weighted assets were up by 0.9% to RUB34,421.2 bn in 1Q 2021 mostly due to the 0.6% increase in the credit risk component of the risk-weighted assets on the back of loan portfolio growth, and the 10.4% increase in the market risk from increased operations on the financial markets.

The risk-weighted assets density decreased from 90.3% to 87.6% for 1Q 2021 due to the application for the foreign Group subsidiaries of the macroprudential adjustments to the risk coefficients set up by their national regulators, as well as growth of assets with zero risk weight.

The Group's leverage ratio was unchanged at 12.9% in 1Q 2021.

Common equity Tier 1 capital adequacy ratio increased by 47 bp to 14.3% in 1Q 2021, Tier 1 capital adequacy ratio was up by 47 bp to 14.74%, while total capital adequacy ratio increased by 61 bp to 15.29%.

1 Excluding the subordinated loan agreement in the amount of RUB150.0 bn classified as equity financial instrument that was previously ceded by the Bank of Russia in favor of the Ministry of Finance

2 Based on profit from continuing operations

3 Before loan loss allowance and including loans at amortized cost and at fair value

4 Based on management accounts

5 Other non-interest income / (expense) includes: Net gains / (losses) from non-derivative financial instruments at fair value through profit or loss; Net gains from financial instruments at fair value through other comprehensive income; Net gains from derivatives, trading in foreign currencies, foreign exchange and precious metals accounts translation; Net losses arising on initial recognition and modification of financial instruments measured at amortized cost; Impairment of non-financial assets; Net charge for other provisions and allowances; Revenue of non-financial and other business activities; Cost of sales and other expenses of non-financial and other business activities; Net premiums from insurance and pension fund operations; Net claims, benefits, change in contract liabilities and acquisition costs on insurance and pension fund operations; Income from operating lease of equipment; Expenses related to equipment leased out; Net share of loss of associates and joint ventures; Other net operating income / (expenses)

6 Operating income before provisions for debt financial assets, credit related commitments and revaluation of loans at fair value due to change in credit quality

7 Total equity attributable to shareholders of the Bank / Total numbers of shares outstanding (ordinary + preferred)

8 For the segment Non-financial business Revenues of the associates and joint ventures are disclosed proportionately to the ownership share of the Group in the reporting period. For the companies of the Group Revenues are calculated on the 100% basis from the date of the control. The information does not include data on Yandex.Market and the financial results from the disposal of Yandex.Market

DISCLAIMER

This document has been prepared by Sberbank of Russia (the "Bank") and has not been independently verified. This press release does not constitute or form part or all of, and should not be construed as, any offer of, or any invitation to sell or issue, or any solicitation of any offer to purchase, subscribe for, underwrite or otherwise acquire, or a recommendation regarding, any shares or other securities representing shares in, or any other securities of the Bank, or any member of the Bank's group, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or any commitment whatsoever or any investment decision. The information in this press release is confidential and is being provided to you solely for your information and may not be reproduced, retransmitted or further distributed to any other person or published, in whole or in part, for any purpose.

This press release doesn't constitute an offer of securities of the Bank for sale in the United States. The Securities may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act of 1993 as amended.

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