Valeriy Ovsyannikov, Chairman of the Executive Board of Sberbank Serbia - We will support the strengthening of the bond between Serbia and Russia

Three years ago, VTB gave up the sale of Bank of Moscow in Serbia, at the instigation of the Government of Serbia. The media then reported that VTB planned that its subsidiary in Belgrade became the main bank for servicing economic projects between the two countries. Nevertheless, a couple of days ago, VTB Bank announced again that it was considering selling its subsidiary in Serbia if it showed negative results. Did Sberbank in the meantime become exactly that bond between the Serbian and Russian economy?

This was the occasion for our interview with Valeriy Ovsyannikov, Chairman of the Executive Board of Sberbank Serbia, about whether Sberbank is taking upon itself the role of the bond between Serbian and Russian economies. We wanted to know if it would mean anything for them if VTB Bank left Serbia and in which particular way would it be meaningful to them.

- Since the very beginning, Sberbank Serbia has strongly supported the cooperation between Serbia and Russia. For instance, we participated in the realization of the Russian-Serbian Business Forum where cooperation agreements were signed with the companies NIS a.d. Novi Sad and Energoprojekt Holding a.d. Beograd, with the aim of improving and strengthening our strategic cooperation. With the aim of supporting export, we launched a product called “Solution for Exporters” which is primarily oriented towards the protection against risks of collection of due receivables, but also against risks of the fluctuation of the currency exchange rate. This product is completely unique and it allows customers to have a high level of flexibility in planning and doing business. In the upcoming period, we are planning to support the strengthening of the ties between these two countries.

eKapija: How do you assess the opportunities on the Serbian banking market? What are the benefits and where do you see possibilities for improvement?

- In 2016, the Serbian banking market is showing signs of new energy and a willingness to meet the needs of the population and the economy. The market is highly competitive and its participants are ambitious, which further encourages us to be better, more committed, stronger, to continuously create innovative products and services that will facilitate the everyday life of our clients. Room for improvement regarding the Serbian banking market I see particularly in the economy segment and it refers primarily to finding good projects for investment.

eKapija: When you came to the Serbian market, you announced that as the largest Russian bank, you had many products that you can also introduce to our banking market. What new products can we expect?

- We are proud that our product portfolio includes highly innovative products, which are unique on the domestic market. I would like to point out the payment Super Kartica that combines the features of a loyalty and a credit card and it’s exceptionally well accepted by our clients. This product has greatly contributed to Sberbank Serbia exceeding number of 100,000 cards issued, which confirms that we constantly listen to our clients’ needs and create custom-made products and services. This will be our direction in the future as well.

eKapija: How do you comment on the fact that regarding deposits you have achieved a growth of 46%? What is the main reason for this?

- Our success is based on trust. Our clients trust us. They are ready to entrust us with their finances and in these seemingly simple relations lies the key to our success, not only in terms of deposits, but also regarding our retail business in general. It takes time to gain trust and we are aware that with every step and activity we take, we will have to foster this partnership that we have carefully built with our clients.

eKapija: Do you plan to achieve growth on the Serbian market and will it be organic growth or are you interested in any acquisition?

- This year is a milestone for Sberbank Serbia and we are ready to use the full capacity of our unique products and services and count on the qualities and commitment of our employees. We are particularly aware of the fact that the partnership with the largest loyalty program in Serbia - Super Kartica, has given us a chance to offer our clients additional value and thus expand the base of our clients. The results achieved on the Serbian market give us the right to be optimistic about further growth.

eKapija: The Problem of NPLs is a key issue in the banking sector. What is the level of uncollectable loans in Sberbank Serbia and how do you plan to deal with that?

- Sberbank Serbia approached solving NPLs issue in several ways. Reservations for the existing problematic loans have been increased, uncollectible receivables were written off and part of the problematic loans portfolio was sold. Special attention was paid to improving the functions, processes and systems for monitoring the quality of the loan portfolio and the early detection of increased credit risk rating. The current level of uncollectable loans isn’t a burden to our business, because we have more than enough funds for our business activities, including households and economy credit lending and providing other services from our portfolio.

eKapija: What are the plans of Sberbank Serbia in the upcoming period, where do you plan to invest the deposits, which areas will you be focused on?

Excellent results in the previous period have laid the foundation for ambitious plans. I have already mentioned that the partnership with Super Kartica will continue to be the focus of our activities in the retail business. We will offer additional benefits to our clients, such as the improvement of our online services and more flexible conditions. Also, we have created special offers for entrepreneurs and farmers, but also for local governments and large corporate clients. We have introduced tools for measuring customer satisfaction and improving our service quality. The potential of Sberbank Serbia has all the necessary characteristics to fully develop and thanks to strong team and a great offer, I believe in our success in the future.

Jelena Djelic

Naša AIK Banka a.d. Beograd

SBERBANK Rusija

Api bank ad Beograd

Vlada Republike Srbije

Energoprojekt Holding a.d. Beograd

NIS a.d. Novi Sad

SUPER KARTICA