Annual Report 2014

Development Strategy


STRATEGY 2014-2017

Bank Saint Petersburg’s development strategy for 2014-2017 is aimed at building an efficient bank with a scalable business model, which involves a search for internal efficiency improvement sources, coupled with moderate growth and risk appetite.

The Bank’s unique competitive advantage is based, and will continue to develop, on the synergy of fast decision-making and expert knowledge of the local market, due to the Bank's closeness to its customers, combined with global, advanced technologies used in the infrastructure and electronic service environment.

The strategy is focused on further improving the Bank's systemic approach to management processes, thereby enabling a reduction in manual management practices and increased efficiency.

Financial efficiency. The long-term financial aim is the stable growth of the Bank’s valuation and reaching a sustained ROAE level of more than 15%. The main drivers for this have been identified as follows:

  • Decreased loan portfolio concentration and changes to the loan portfolio structure towards higher margin products;
  • Decreased cost of risk – further improvement of risk management policies and a focus on the existing customer base in consumer lending;
  • Decreased cost of funding – the rise in the share of demand deposits;
  • Higher non-interest income (increase in fee and commission income and trading income);
  • Increased staff efficiency due to the automation and standardisation of sales, service and back-office processes.

Scalable business model. The Bank’s growth over the next few years will be on a par with the market growth rate, however the Bank must be prepared for more active growth, in terms of both the quality of the balance sheet and income, as well as the quality of management. In order for the Bank to be fully prepared for potential expansion in new and existing regions, the following priorities have been defined in the strategy:

  • Making a significant proportion of standard banking services electronic;
  • Operational efficiency (increasing staff efficiency through the standardisation, optimisation and automation of mass processes) and shifting the Bank’s labor input towards sales departments;
  • Branch network transformation – adopting the module system of branch organization with defined standard processes and a set role model;
  • Developing process management competencies for mass sales of standard products.