Download Item 3. Profit distribution and payment of dividends for

Item 3. Profit distribution and payment of dividends for 2016
Draft resolution of the Meeting:
1. Approve the following distribution of Sberbank’s 2016 net profit after taxes in the amount
of RUB 498,289,432,764.72 recommended by Sberbank’s Supervisory Board: RUB
135,521,688,000.00 shall be allocated to pay dividends; profit in the amount of RUB
362,767,744,764.72 shall remain within Sberbank’s retained profit.
2. Pay out 2016 dividends: RUB 6.00 per ordinary share of Sberbank and RUB 6.00 per
preferred share of Sberbank.
3. Approve June 14, 2017 as the date of record on which the persons entitled to receive
dividends for the year 2016 are determined
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Explanatory note on the matter:
In accordance with the Federal Law dated 26.12.1995 No. 208-FZ «On Joint Stock Companies»
the Bank is required to include an item related to profit distribution (including payment
(declaration) of dividends) for the reporting year and the date when the persons eligible for
dividends are determined in the agenda of the Annual General Meeting of Shareholders.
Such decisions are made by the Meeting of Shareholders upon the recommendation of the Bank's
Supervisory Board.
The Bank's Supervisory Board on the meeting on 20.04.2017 addressed the matters of profit
distribution and recommendations on the amount of dividends payable for 2016 and the date when
the persons eligible for dividends are determined and resolved as follows:
With regard to profit distribution and the amount of dividends payable:
1. making a decision on recommendations to the General Meeting of Shareholders to pay
dividends on the Bank's performance in 2016 at 25% of net profit under IFRS, amounted to
RUB 541.9 billion, the Supervisory Board is guided by the principles of ensuring long-term stable
development of the Bank in compliance with the terms of the Bank's Strategy and Dividend
Policy, prudent risk management in order to mitigate the possible adverse development of the
situation in the markets where the Bank operates.
2. preliminarily approve profit distribution (included) and stipulate that profit not intended
for dividend payout based on 2016 results shall remain within Sberbank’s retained profit.
3. preliminarily approve following dividends payable for 2016: on Sberbank’s ordinary
shares in the amount of 6.00 RUB/share and on Sberbank’s preferred shares in the amount of 6.00
RUB/share.
4. propose the following resolution for approval by the Annual General Meeting of
Shareholders:
a) approve the following distribution of Sberbank’s 2016 net profit after taxes in the amount
of RUB 498,289,432,764.72 recommended by Sberbank’s Supervisory Board:
RUB 135,521,688,000.00 shall be allocated to pay dividends; profit in the amount of
RUB 362,767,744,764.72 shall remain within Sberbank’s retained profit.
b) pay out 2016 dividends: RUB 6.00 per ordinary share of Sberbank and RUB 6.00 per
preferred share of Sberbank.”
With regard to the date when persons eligible for dividends will be determined:
1. to set June 14, 2017 as the preliminary date of record on which persons with the right to
receive dividends for the year 2016 are determined;
2. to propose that the Annual General Meeting of Shareholders pass the following
resolution: “Approve June 14, 2017 as the date of record on which persons with the right to
receive dividends for the year 2016 are determined”.
The source of annual dividends is the Bank's profit after tax (net profit) determined under the
accounting (financial) statement of the Bank made in accordance with the laws of the Russian
Federation.
From January 1 to December 31, 2016, the Bank's net profit (under RAS) was RUB 498.3 billion,
which is 2.3 times higher than in 2015.
In accordance with the Bank Regulation on Dividend Policy, the Supervisory Board shall consider
the following in giving recommendations to the General Meeting of Shareholders on the amount
of dividends payable on the Bank's shares:
 the availability and amount of net profit determined under the consolidated financial
statement of the Bank under International Financial Reporting Standards (IFRS) for the
relevant period;
 the Bank's need for capital for business development and implementation of the
Development Strategy with regard to dividend payment for compliance with the current
and expected requirements of the applicable laws of the Russian Federation and the
Bank of Russia, local regulators in the countries of presence and Basel Committee
recommendations;
 maintaining the balance of the interests of the Bank and its shareholders with due regard
for the need to increase investment attractiveness and to observe shareholders' rights.
The current capital adequacy forecast and changing external and internal factors affecting capital
adequacy lead to the conclusion that dividends may be paid at the target level of 25% of net
income determined on the basis of the consolidated financial statement of the Bank under IFRS.
Payments will come to RUB 135.5 billion in absolute figures.
The Bank's retained earnings for funding capital expenditures and other purposes come to
RUB 389.9 billion, which allows the Bank (given the funds accumulated in the previous years) to
provide sources of financing to expenses planned for 2017 with consideration for the
implementation of measures as a part of Sberbank's Development Strategy up to 2018.
Under the Federal Law dated 26.12.1995 No. 208-FZ «On Joint Stock Companies» the period of
dividend payment depends on the date when the persons eligible for dividends are determined.
Such date may be established at least 10 days after the date when General Meeting of
Shareholders resolves to pay (announce) dividends and not later than 20 days from the date of
such resolution.
The date for payment of dividends to a nominee holder or trust manager registered in the
shareholders' register shall not exceed 10 business days from the date when the persons eligible
for dividends are determined.
Payment of dividends to eligible persons registered in the shareholders' register shall be made not
later than 25 business days from the date on which the persons eligible for dividends are
determined.