Sberbank of Russia (SBER) Earnings Call Transcript & Summary

Good afternoon. Thank you for being with us. It means a lot. We're here to deliver the best experience, and that is why we constantly work to show you all facets of our products and services. At the center of our ecosystem, we have put Sberbank Online. It is used by over 44 million people every day and more than 85 million people per month. We have made it structure simple and clear for every customer, the main screen, savings, payments, loans and full life section. All your finances are at your fingertips. The app is easy to customize. You can hide the necessary elements, highlight the important ones and get smart hints. We develop services, but do not turn the app into a big classified ad side. Our priorities are to save your time and ensure every step is intuitive. We're building an ecosystem around your life scenarios, not around our products. This means routine operations are just 2 taps away and hence, appear before you even start searching, one profile and single sign-in provide access to all services. Security works by default. We won about risks before we make a transaction and ensure reliable protection that works in the background. We have gathered services around key areas of life. Home sections help manage your property. Cars section has everything to avoid routine transactions and enjoy your driving experience. Family section has shared goals tools for caring for loud ones and clear planning. We're constantly developing and expanding our services to meet your needs. The full life section will suggest where to go on the weekends, what to watch, where discounts are available and will offer convenient services for shopping. Recommendations are personalized based on your interest. We know the competition for your attention is very high. And this is the main incentive to anticipate your desires, making services simple native and needed. I invite you to explore our new sections and give us feedback. We're here to make sure everything turns out exactly as you want. Thank you for your trust.

Family bank and cybersecurity. Hi, this is the main Sber event. They will talk about Family Banking and of course, cybersecurity. My guests are Maxim Denisenko, product leader of the fraud prevention system and Anatoly Shmarkov, the product leader of the family banking product. Hi, guys. Hi. First, I want to congratulate you on your new status. You've become a dad. Tells us how do you handle your family finances? How do you set up?

Well, the new status doesn't change things but not significantly. And Russia as everyone -- I mean there are over 30 million registered families in Russia and more than 65% of them manage money together. Before they used workarounds, some other services. And we try to make it so that people could manage their shared accounts, household and finances as simply as and conveniently as possible. And very transparently. Yes, without any tax messages, chats, spreadsheets, just both spouses seeing the share budgets, common expenses in their app.

Where is the first to come to the market with a comprehensive solution. So it's a family budget.

It's a joint budget when you can spend together with your family members and control expenses together shared deposit, right? There's a share deposit. Yes, it helps you to save together. I now can't mention myself without this account about this feature because I've set up or the transfers. My salary comes in several times a month, and the certain amount is automatically put there. I roughly understand how much I transfer, and that's it. I don't even have to remember about it. Money sent there are automatically. That's it. I see how it works.

That will be exciting.

Okay. So I'm signing in Sberbank Online app. For example, I go to the profile. And here, we have this family members section. All family members with whom might share something, like here my wife, for example, I have a joint payment account for common expenses and they joint deposit for our location. 0 rubles of savings. That's great. Wow, this is a joint deposits for our newest vacation.

You don't plan any new vacation, right?

Well, no, no, it was just for the new year. I mean we have already paid for everything.

It's great that you managed to plan a vacation with an infant. Have you also come up with kids cards for children?

Yes. Parents can issue a special card for a child. So there's a huge number of crazy designs there, stickers, bracelets, cards. Kids, by the way, have a dedicated app for them because we're kids and there's an AI system that is called Sber Cat, a very cool thing. It's trained to work with kids already talks to them advisers and helps. It's a great thing. And not only can you issue this card for a child. I mean, obviously, you have access to the balance and joint transaction history. Just like I have with my wife on our joint account. So maybe someday, I will have a joint transaction history with my son, both my son and my wife and all family members will be displayed in 1 place in this section.

And that's a great time to segue to the next great function, which allows for more reliable financial management is called family members nearby. With this service, in case of suspicious transactions, you do not call the client who is performing it.

Yes, the transaction is stopped. So your grandma's transaction will be paused. And you as like Hassan, for example, will receive an alert that your mom is trying to do something, transfer money somewhere. Do you know what is happening? And so all the info is on the screen. And I would say, yes, okay, it's fine. It was harder to send the money and you know about it. The green button is displayed down and transaction is completed.

Yes, but it's an important thing to say that not all transactions will be executed like that. Otherwise, it wouldn't be an inconvenient service. On the atypical and suspicious transactions. Yes, because if you're not based for utilities every month, these transactions will not be stopped.

Yes, only suspicious ones.

Yes, absolutely. And and by the way, there's strict control and soft control modes, meaning that you can stop a transaction and just both receive an alert. That's when I simply received an alert that my family member made a transaction just for information.

The product called identifier. Is that something that can also stop us doing something wrong at some point?

We have a cat that suggests that with the motions who is calling the client. That's the picture that appears on your screen. When the call is incoming actually, under the hood, there are many processes. It's not just some list under the hood with all the cameras that we know. It's much more complicated than that. Every number goes for evaluation to us right at the moment when you are receiving a call. And within a couple of minutes, see, if the frauds has already been on our radar, his number will already be highlighted as a fraudulent number on all devices in Russia, and that is very important.

And it's all these [indiscernible], this is the made in Sber event. As you appreciate, we stand for the family and security.

I've been a petrol head for many years, and I absolutely love driving until recently owned in the car cost a lot of worry and hassle. We believe that with our app, we have taken some of these worries off of our clients. We have several entry points. In Sberbank Online app, you can go to the full life section. There's a separate transportation section there. You can just go there and there's an entry point. Right now, it's drizzling in Moscow, and I needed to refuel my car. You don't really want to get out of the car with such a weather and I drove up to the gas station. I can refuel without getting out of my car. And a very cool feature is that I can also review or using my [indiscernible] loyalty bonus points. So I'll earn these points. Right in time for the season, we have launched the tire change service. Now by going into the app, you can book a specific time that suits you. At a specific location, we offer a fixed price. You just drive into the garage, and they will be waiting for you there, and you'll change your tires as you plan, hassle-free. The maintenance service, that's also an exciting thing. Most people don't know what needs to be done for a scheduled maintenance of their car. Quite often, there were cases when some necessary services were added and other things. We brought in a team of professionals who understand the maintenance requirements for various cars. Now we select the necessary jobs in advance. We fixed the price with the garage. And when our client comes for service, we already have a fixed list of jobs at a fixed price. So we take this difficult negotiation phase with the car dealerships upon ourselves in Sberbank Online app. In the my car section, we display all the fines, you can go in and see a specific address whether violation was committed and pay fines and toll roads right now, one type away. In our app, you can get compulsory motor liability insurance, meaning [indiscernible], and you can also get comprehensive insurance. CASCO, by the way. Mine is about to expire. I'll renew right there. Through our app, you can both buy and sell your car. In order to sell a car, you just need to understand how much money you'll need to add for the next purchase by selling your car now is a whole process, right? First, you need to understand how much your current car is worth. So in the app, you can see the price of your car. That's the first step. There's also a sell car button there. And we will take all this hassle and resolve it for you and help you sell the car. If a client wants to buy a new car, we offer a pretty wide range of cars of new cars that customers can purchase. When saying that's it, we still have a long way ahead, and we want to do a lot more for our customers. But at the moment, we have already made life for car owners simpler and better.

Hi this is made in Sber event. Today, we'll talk about the home product with the leader of this product [indiscernible]. He's is my guest. Hello. Right away as a user, I want to ask you what a fundamental task and problem does your product called homes or for the user? Well, home is a section in Sberbank Online app that offers services and utilities for your own home, maybe not your own rental property, so you can solve any problem related to your property. You need to pay for something you can us. You need to find out how much the apartment is worth, use us. The elevator broke, what do you need the elevator maintenance firm. Right now, that is so. But our message is that you can resolve even this problem with our home section. Well, better, let's see how the app is structured. How do you find home inside Sberbank Online? So we look into Sberbank Online. This is our app right now, home and car sections are in the payment section. What was the story behind this. There were many bills that customers needed to pay. Even me, living in Moscow. I have 2 management companies that service my apartment. that's true for me in Moscow. There are regions where customers might pay 3, 4, even 5 different bills to different companies, and customers need to go to a bunch of different places to solve some problem. So you need to have electricity, go do -- you pay in 1 company, you want to have water supply. That's another company and you want it to be hot, that's the third company that delivers that and our sources to collect all this into something unified. And that was the solution that we thought up to unite all the bills around an address to make it clearer that for this address, you have these bills and for that addresses, you have other bills and we started to develop the home section. And now it's not just about bills. We started filling it with our bar services. And this is how it looks, a cute little nest. That's how you name it. Yes, you can name it like you want. So all users here will be able to set any picture that you associate with help. Look, what we have first hear Bill say paid for everything, then submit meter readings, okay? home section I don't need to go to various websites anymore because you had to submit readings from the meters to different suppliers in different places. So this is the market price of your apartment. The cost of a property is usually a seller's fantasy because the market is very heterogeneous right now. Indeed, everything is changing very quickly. One of our products in home is the evaluation of your property. Moreover, this price is based on real deals. This is one of these strong products in the home section because customers really want to know how much their apartment is worth. Even if they have no plan to sell it right away. If you click on it and go inside, then we can give you an offer. First, we can give you cash flow secured by your property. You can sell it. Of course, using our services, you can rent it out for long term or even for a day. Yes, all the services are delivered. all the service is done by us. So we are keeping things in order. That's really good. Yes, and we clean them, find tenants, give you all that. So design, renovation, furnishing, moving, renting out legal assistance and demand. If something happens in your home, like window sill is broke refrigerator broke, washing machines started leaking or you need to verify your meters or replace them, you can use this handyman service. You submit a request that you need such a person, and we send an employee who works with us under the contract. The same goes for designers and repair crews, just like handyman they are ordered in one click.

So what you saw right now? What are you working on?

Our products that we have already made this year has been used by 20 million people first. We want this number to grow. Our second task is that we want these customers to come back to us regularly. If some problem arises at your home at your property or there's some issue like you want to clean, you don't need to go and search for the cleaning services but yes, you should find it in the home section Sberbank of mine, when I can just do it. safely and securely because well, Sber is about trust after all. This is made in Sberbank.

I just had the leader of the home products [indiscernible] as my guess. I'm sure that you found it exciting and learned a lot of new things, and we'll definitely use this service.

Sberbank has long been more than a bank. We had a lot of different services in our ecosystem, but they were fragmented. We've been promoting them for a long time, of course, and we saw very high interest from our users. But they have to go to different places to use them. And it made sense to bring it all together in 1 place to embrace the person, so to speak, with our services, inspire them for a new experience, give them new impressions because our ecosystem includes ACO, Zvuk and a cool set of e-comm products like Samokat that delivers in 15 minutes. That's wonderful. So we decided to bring it all together and add unifying elements. Log in, click the asterisk. And here's the first service in a big showcase of services. That's all the groceries and an app that most people consider financial. But we've actually been building a service platform around a passion for a long time to make their lives better. Let's go in. Oh, my daughter's favorite tangerine and pancakes. Let's add all this to the cart and place an order. As a profit of that because I will get extra cash back and there was a discount on the bank [indiscernible]. This is how you can care for your loved ones even when you're far away because in spirit, you are together with them caring for them. We recently launched the same card plus we did a lot of work with our e-com partners. And now we don't just show an entry point the same cut or some cool promotion. We show the products themselves. Moreover, we know what the person needs, we personalize the feeds and try to match their preferences. Of course, it's a bit unusual, but our goal is not to replace some got itself on our apps. Our goal is to give them the opportunity to use it in the place where they have already come. We now have this big track, for example, when we wanted to suggest we and entertainment for the weekend. Of course, we have we can guide. Essentially, AI suggests to you a trip plan for the weekend in nearby city. This is how, for example, I can other trip to Colombia with my family. It really planned down for me, which museum to go, what time I arrive by train, where to go to manage to see everything I want. It was a very interesting and convenient experience. If people love the service, they use it. That's exactly the love we want to create. The person's love for life, love for convenience services and love for us. Just recently, I'll tell you about my family's experience I'm taking care of my health, my children's health, and we have Sber Health, the service. That's also implemented in the full life section. We have a range of health care services there. And through it, I now book appointments for myself and my children at the clinic. And just recently, my mom got the second medical opinion online and was absolutely thrilled that you didn't have to go anywhere in bad weather. We're like a little blanket covering the customers that they feel comfortable, convenient and secure. We're a very reliable bank and we demand great customer experience and convenient products from our ecosystem services. This year, 50 million people have already used our services. The King looks at our offers and our partners offers of course, we're proud of this number, but we would like it to grow because Sberbank Online has 85 million customers every month. We have 30 different services listed, meaning you can refuel your car with bonuses. You can buy a movie ticket, you can plan your weekend, find tickets and book a hotel for your vacation. And all this with discounts and increased specific bonus points. Our entire ecosystem is presented in the full life section, and we're also connecting other partners to make it even more convenient and beneficial for you. We make this product with love, listen very carefully to our clients' feedback and try to improve it every day. So with every update, I hope we can become better. And I have the users notice it.

Prime is our subscription that gives exclusive access to entertainment services and special offers in other services of our partners. At a certain point, subscription models started developing in foreign markets. And we also decided to respond because a few years ago, we started developing an ecosystem of nonfinancial services. We launched a subscription that unites them under 1 brand, giving a comprehensive advantage to our user. Let me tell me how it works. If you've never used it a tool, then for example, in our Sberbank Online profile, you can see the subscription. You can connect it. And then you can see what offers are available to you. They are rather constant. We can give you access to content services, this is Okko, where you can watch new movies. There was actually a lot of premieres there now in very high-quality titles as well as sports content. This is also this audio streaming service, Zvuk where you can listen to music, podcasts, in addition, we have other partners like [indiscernible], Cooper, Aficia, many others, when we give increased cash back in specific business points. Also naturally, our main business is banking. So we, of course, place a big emphasis on privileges within our main business. For example, I myself every month choose categories for cash back in specific bonus points. And subscribers have access to 2 more categories than all other users. And the categories are also better than for nonsubscribers. For example, supermarkets, cafes, restaurants or gas stations almost always appear every month. These categories are the most popular among our subscribers, a 1% category on everything is available as well. And generally, I could talk for a long time about what other benefits there but if you just check it out for yourself. Our mission is to multiply the value of your subscription. We have this very convenient authorization method called Sber ID. You can authorize through it in a service that has a prime offer. The service will immediately understand that you're a subscriber and offer you the service. The key task of the subscription is to form a habit for the service for which you're acquiring it in the first place. There's no such thing as you're waking up and saying, you need a subscription. And then using such a business model, we form a habit and you won't need you want to think about doing it another service. You will always come back to Samokat. But besides that, everything else is also kind of already available for you to you for free. So why not take advantage? Which Okko, listen to music and so and see what other offers are available to you. This year, we added an offer for Sber Health. Now subscribers have access to cash back on orders in the service of up to 15%. As a promotion, we are now giving 2 free telemedicine consultations. The prescription is now not for just 1 person. In this regard, we followed market trends, and this year, we launched the ability to share the subscription with your loved ones. They don't necessarily have to be a close relatives. That can be your friends that you want to share it with to do something nice for them. We have very big plans for next year. Thus, the benefit from the subscription is what is really important to us. So we will be developing it. We already have over 24 million subscribers. And in 5 years, they have received over RUB 250 billion in benefits. We want this amount to grow manyfold Therefore, next year, we will be adding other services which are very relevant and needed by our users. We're adding them precisely for that reason. And secondly, we will also add the ability to additionally connect services options that is additionally expand your subscription specifically for your needs to personalize the offers. We know that every client is unique, and we want to develop according to the model segment of 1, meaning the prime is unique for each client because for our resident in Moscow, some services should be available. And for residents of a non-major city, other services are more sought after. It's very important for us next year to build this uniformity of the possibility of receiving both emotions and the benefits from the subscription. This means that we will, among other things, look at original partnerships so that even if you live in a small remote city in the Far East, you can still be our subscriber and receive the same benefit as a person in Moscow. We're generally interested -- we're genuinely interested in our subscribers using as many services and offers as we can give them.

Hi, everyone. [indiscernible]. Today, we want to talk about something that has become so iconic, so recognizable that even children know what it is. Our payment terminal. Payment by card and a QR code. Payment by Smile. Payments with your smartphone with the Zvuk service. We have over 1 million of such terminals installed, right, about 1.5 million actually. And why did I mention children? Because our clients write to us and say that their children dance to the cat that's on the terminal. If our terminals with cats already making motions, we decided to give even more emotions because the most important thing is to pay with a smile-based smiling. So we literally try to bring the terminal to life so that you wanted to interact with it so that you wanted to feel empathy for it. And now the terminal can give advice. It can give you recommendations and during payment. It can bring a smile on your face and make it so that you not only want to pay with a smile, but you're actually smiling and paying with a genuine smile. But besides the cool interface and emotions that debit on the terminal, it's also very important to talk about how functional it has become. But will you tell us a bit about paying with a smile. In 2022, convenient payment methods became unavailable, and we needed to return the ability for our clients to pay for their purchases in a convenient way as they used to. We were then developing several technologies, and we settled on facial recognition biometrics, which allows you to pay for your purchase. Facial recognition is the most convenient method. And at the moment, Lisa can correct me, of course, Smile is the most convenient payment method. It's actually slightly disagree with you here because for me, our new service, Zvuk, has become the most convenient payment methods. So you've probably heard of it. I have that you use it. And here we faced the goal of returning to our clients the familiar payment method with an iPhone that they've always had. But unfortunately, due to Apple Pay leaving Russia, they lost this convenient method. And that's why the name of the service itself, it's called Zvuk. It personifies the movement a person makes to pay. So [indiscernible] Zvuk and you paid how many clients are using it now? We have over 3 million people and over 56 million transactions. Although we launched it not that long ago, it happened only in August.

I think it's because it's nice and cool to do the Zvuk. But going back to paying with Smiles, we have Zvuk. Why pay with the Smile when you can use Zvuk?

Well, there are situations in life, when, for example, you're coming from work, you need to pop into a store or a pharmacy and buy some medicine. You realize your phone has been with you all work day. It's been actively used all this time, and there is no charge left but you need to buy something you need to buy. And just with a smile, you can simply press a button on the terminal and pay for your purchase, right? I won't because to be added without to purchase the pharmacy, especially if you really need is for something important.

Well, you haven't convinced me my favorite payment method is still Zvuk, maybe because my team is directly involved in it. But nevertheless, for me, the most frequent case is when I'm going to work. I have a laptop on one hand, my phone is in the other. I approach the terminal. And for me, there's nothing more convenient than just and bring the phone, which is already in my hand and taped on the terminal. So everyone pays it as is convenient for them, and that's our motto. In our head of this, I know that you can live tips with the terminal. Yes, we already see great interest in this. The number of tips has grown, and it has become more convenient and more pleasant. We very much hope that the service will also be popular.

Are people just starting to live tips or am I the only 1 No, no, no. We already have about 5,000 transactions also, although as I already said, we literally launched the service not that long ago. So I think when it's properly rolled out all over Russia and the service becomes available to many more people, we will see staggering numbers. It seems that making cool beautiful terminals that are not just a way to tap a card or scan a QR code has really become a kind of a trendy wave. We see that other banks have already also started getting new terminals with animation. Sometimes it's customization for a specific store. And that's great. I think we have set a very high bar. It's cool that now our partners are catching up, too. Lisa, do you think we have improved this world with a smile payment service? I think it's safe to say that you are making the world smile. making it kind of a better.

Right. By the way, Pasa,there is a video going viral around the Internet of people paying with a smile using a photo or another person. Is that really possible?

I know that it's not because I couldn't do it. You can try it yourself. Again, you will not be able to do it. Our system can not be hacked. The cameras take high-quality images that are processed by AI models. The data are protected, stored as digital code linked to your accounts. All data are protected just like your payment accounting.

And what have you put on losses affect beard and had Will the terminal recognize you?

You can change your had style, you can grow a bid, you can wear glasses. The terminal will still recognize you because it reads the unique features of your face. Lisa, please don't go [indiscernible].

Well, to each of the room, can I hack the terminal like this and say, I unplug 1 terminal, take it outside, walk around and pay for people?

No, our terminal has a multilevel security system. The case itself is protected from opening all data are protected. And if you try to hack it, it will destruct. Like in Mission Impossible movies, it cannot be replaced. The data are stored in a digital code. It's so small, but it has so much built into it.

Thank you so much. I like to share once again and tell you about what's around us every day. Anyway, I think it was a very great job, a very strong team. We will be surprising you again and again smile every day and make this well better.

This is a new Sber's ATM, high-tech and very secure. It's also feature backed so much in it. And I think it's quite beautiful. That is true. It is very beautiful and people who have already used this ATM say that it's unique in terms of design. No one in the world has made anything like this. People when they work with money, they also have some emotions attached to this. Our task was to make sure that when interacting with this machine, people leave in a good mood because the center is our humans and machines should be around the humans to help them to navigate through this company's life. to make it more simple. How can an ATM give a person emotions? Well, to start with it has 2 eyes will shine on the ground and create a safety zone. They also change color. They do. When you approach here, turns red. The main thing is that we've positioned the screen in such a way that is convenient for people of any height. It's also very important that we see the entire screen fully, and we needed to make it so that this device is visible from a far. When you are walking through a shopping mall or somewhere else, it should be such a herald of the future. People show us about that kind of reaction. And so they are very surprised. They admire the design, the [indiscernible] are great. But let's talk about how convenient it is to use it. And how much you really want to use this or that feature we put unique functions and based on AI. [indiscernible] technology. The first one is an intelligent voice assistant. You give it simple voice commands, about what you need to do and get consulted on any banking products. Let's try. Okay. Sber give me RUB 500. Sber, give me RUB 500. It heard you and recognize your command. And let me guess what they need to do next. You need to put your bank card to it so that it identifies you. We created a unique private safe screen. By the way, look at the magic money they just flow here, and you can take them there. As for the private screen, we placed all the client sensitive information. You enter your PIN code there. You can enter the security codes with biometrics, 500, okay? Security code for biometrics and any private data, like your card account balance or the amount of the transactions on the transaction you're about to make. Another feature of this ATM Express Health test, the ATM debited on AI journey conference and the most in-demand function and this ATM at the conference was Express Health assessment. So what do we deliver in 30 seconds using this ATM, you can do an express health assessment and the results of assessment will go to your personal Sber health account. There, you can look at your results and also get a consultation from fashion physician on a particular topic. Also how it works. The ATM measures 10 parameters of your body's vital activity in 3 main groups: well-being metabolism and cardiovascular.

How does it know that?

Well, first, the ATM has built-in heart rate sensors and a biometric camera, which we work with to identify by smile. It can determine 9 more parameters. You have to try it yourself, identify yourself [indiscernible] card and to the PIN codes. The ATM addresses you by name. Good afternoon, emirates Express health assessment. Okay. I can put your phone away. So okay. We are putting your thumbs. I have my heart and my fingers, thankfully not somewhere else. Please look at the screen on move and the biometric scanner will now conduct a mini Express assessment based on the pattern on your capillaries on the skin of your face. So let's put it on the info on the screen. We put some hints and some interesting facts here so that you can wait while your health assessment is and programs.

Oh my god, Yes, we can remove your hand and let's see the results of your diagnostics have already been sent to your phone as a tax message and in your health spare health profile.

Okay. stress level is low. I'm afraid if I do diagnostics now. I have already said that I get nervous every time I present this ATM. I think my trust level will be very high.

I think it's a success. And the ATMs will go will spread across the country and you will all be able to learn about your well-being.

You're absolutely right. I mean Monday and ATM, we have turned it not only into a unique art object, but also in a system that you can take care of your finances and health.

Giga chats. The results of 2025 implementation. Why did we send GigaChat to space? Tell us what's the key rate. What does green robot can do? What will be better in GigaChat Ultra? Draw me in the casual Russian painting. Smarturing, what health indicators to measure, how will my business be added with the AI assistant, how do I set up biometrics payment. 2026 will be the gig year. [indiscernible] we're going talk about neural networks and GiGaChaT. Wow, my guests today are Anton Goscote [indiscernible], what exactly is unique engaged?

We're the only one n in of all countries that cares about the Russian language. For example, ChatGPT released an update, the fifth version. It started speaking Russian worst. Constantly distorting words, cases and so on. GigaChat has not -- does not only know Russian, but it now all the dialects and different languages of Russian regions. Yes, it actually speaks English with a nice thick Russian accent. We focus on our consumers. We have a unique offering overall, among probably most new networks because we can do images, pictures and videos. We can open links documents. This is undoubtedly the most large-scale development of such a technology in Russia, which is only possible, it's Sber. So Sber possesses the resources that can be shared with all people who live in Russia. And basically, this is the greatest thing available to you in Russian -- in Russia period. By the way, foreign counterparts have such a problem that you start doing something, you exit the app and then it raises everything. Nothing is safe. We have a shared history in GigaChat. You can see how you communicate it with its by voice, by text and telegram and Max Messenger and anywhere we're making a seamless experience so that you can start the dialogue, for example, in a messenger and continue at home on your desktop. computer. For example, I sent meter some file work file study file, it doesn't matter. We've briefly discussed it, and then we worked with it at home. And you don't have to be to transfer it to cloud or anything. GigaChat solves all these problems. Our latest launches are related to the quality of the voice modality every way, it's fantastic. We made a new synthesis, a new technology that allows create enormous human identical real voice. Besides the pronunciation itself are emotions feelings that I try to convey, and we've now put the story in the voice mode formats complex technical word, but basically, you can call GigaChat like you call your friend. You can talk, you can discuss things and it will listen to you, I actually say even more, sometimes friends are less and pathetic than our voice mode because brands have their own problems, their lives, their families. Yes, they don't need you that much, right? Yes, when we create products based on the model, of course, we call it an assistant. And like any real assistant. I mean any real assistant as a person, as a human, a human with their own character, their own emotions making mistakes. It's a human. And therefore, developing precisely the humanness and emotionality empathy for our model is a very important point. And here, a special focus is made on making GigaChat learned to act so that as a real assistant, it could book a ticket for you a hotel, buy something pick those perfect sneakers for you. Such things would you would want to delegate to a human buyer or some other assistants who would do it for you. At the same time, it would talk to you not like a robot, but like a human being. Yes, the system becomes very incredibly pleasant talking with very exciting as a person to talk with. Yes, if you want to ask a question, general content, GigaChat. GigaChat as a web version GigaChat we have apps on iOS, Android and Huawei sometimes it's convenient to contact GigaChat directly through a messenger but that we have a Max Messenger, Telegram we have GigaChat in Kentucky and even in [indiscernible] social network. How does GigaChat work in everyday life? That's been a case recently. You just told us how they figured out how a [indiscernible] works with GigaChat help. They moved into apartment, they board and the gas wire ads market, so this oven. But they wanted to roast the chicken. They didn't know how to do that. They took a photo on the oven screen and they ask how to turn on the convention. That's it. GigaChat answers. How to use a smartphone under RUB 20,000? Very frequent questions and people are interested in that. GigaChat shows where you can buy this and that one is better than the other. One criteria there, which is better for photos and which can be just used for communication on the apparent talking about parents, smartphones for us and videos. There's a service called Kandinsky. How does it work? And can my grandma or the grandma, the people behind the screen here, can generate a picture in centers. Kandinsky is a technology don't just focus on post cars. We can generate any content. Recently, I have made a merch with the team, and we use it to generate a logo background. So actually, now all designers in the world use neural networks because you can't live without it anymore. Recently, Kandinsky has learned to generate videos. And what's unique about it is that it was Kandinsky that was specifically trained on Russian data. So if you want to generate a classical Russian village our Burch tree, it will actually do it much better than foreign networks. Try generating a cherry 9 in foreign models. Cherry 9 was the vast model and Cherry the color. Yes, you can generate the music, can generate the full track with lyrics and [indiscernible] 2 in different styles. Yes, the task actually is with other products for is to reduce your time spent on solar specific tasks. When school kids are trying to navigate through a topical students are writing some term paper, gigs on give them a term paper won't deliver it. And it shouldn't actually. What is more important that it explains to them based on Russian textbooks and Russian literature about a particular topic. So basically, GigaChat can become a huge help who can prepare you for the state school exam. Exactly and very often speaking about practical cases, it helps with preparing for your examples. When you need to figure out something on night or 2 nights before the exam, students open GigaChat and write prompt, help me understand quantum physics.

On which devices that is currently available? And what are the plans for the future? Well, I'm very pleased to say that we have literally on all devices. Our last update was TVs. We recently announced a TV that you can control completely by voice, where voice is your remote control. Actually, we can control all the content, open series, movies, search, can search by some indirect signs of meanings and there is an operating system that we developed called Salute TV. And as a speaker, it can be connected. It's the magic on board.

What was the most unusual case when interacting with GigaChat that you remember that?

Wow, I need to tell absolutely everyone about this. Well, since we are on the podcast, of course, I want to remember about broadcast. Honestly, I'm not a podcast fan. It's some always interesting for me. We recently made a product based on GigaChat for creating podcasts. Now every person, every user can from any set of information beat tax research, anything, make a podcast by themselves. If I go back to why it was had a wow effect, it was a 2 voice emotional podcast where there were real emotions real feelings, and I was sure that it was really recorded as this is what we call it just specifically for me based on the information that I needed. We have this opportunity to ask GigaChat to do something right now. For example, say goodbye to us is just to test it in the field, so to speak. Okay. Sure. We can try and GigaChat goodbye to the viewers on the spare podcast in a way that will be embarrassing for us and that will make us happy. We have landed and Anton here. Dear friends, another episode about technology podcast has come to an end. Today, so Anton and Dima and I discuss the hottest topics from innovations in AI to new possibilities of LLMs. Thank you for participating, and we invite you to join the discussion in the comments. Subscribe to our social media like and subscribe to updates. And while we are preparing new material, we encourage you to check out this new episode where we talk about the future of robotics. See you in the next episode. Goodbye, and have a great day.

Guys, this was a podcast from Sber thank you for being here. Thank you for being interested in our conversation. We will definitely see you in the future where there is AI.

AI is not something complex, fantastic remote that will not happen soon. It's about now. It's about ourselves and our day-to-day life. AI is on a terminal reach smile and instantly processes a payment. When we turn off the lights leaving home, we want to understand a complicated topic. What else can AI help us with? We know we shouldn't Google our symptoms. But for summaries, we keep diagnosing ourselves online just in case, we only need to ask, we added a digital assistant in the Sber Health app. AI will collect the background, read tests, test results, and compile personal recommendations on nutrition and workouts and also answer questions about your health. The medical AI assistant works on the basis of GigaChat, which is already possibly exam for a general practitioner and 7 more specializations from pediatrics to cardiology. In diagnostic accuracy, it surpassed a similar development from Microsoft. Another example is interior design. And with this, AI can help as well. We integrated our new network Kandinsky for images into Domclick so that it visualizes your ideas. You can upload a photo or your flat right now and check it out. Can't find the right button old section in the app? AI will help you with that, too. We integrated our GigaChat into Sberbank Online, a smart assistant will help you navigate the app and ask her questions about your finances. I open back online, GigaChat to analyze my expenses in November. Okay. Yes, not that small. Well, the main categories, transfers, utility payments, tickets, right, and also transfers to my wife. Well, actually, this is also spare mobile gas stations and generally an analysis of which categories and in which stores I made payments. Thanks to this, I can not only remember my habits but also I know how much these habits cost me. AI regularly analyzes finances and conducts a personal dialogue with the client. Thanks to it, it's easier to save and monitor your spending. AI is aware of all our finances. This information is needed to understand can we get a tax reduction. And here, another one of our assistants comes into play, the tax one. It will help you return part of your expenses in one click. Today, only 1 in 10 Russians apply for a deduction. It's considered a very difficult affair. You need to collect documents, receipts, you need to file a declaration a tax report. With an AI system, it will literally take a minute. It will figure out on its own, what you can get a payment for. It will analyze the expenses you made on your cards. It will collects all the certificates, file an application with the tax office and notifying you as soon as the money is credited to your account. One part of the routine is taken over by AI, it becomes easier to think about the future, how to preserve and increase savings many of you think about investments, but you don't know where to start, how to understand this complex issue. We made everything complex as clear and as accessible as possible. Now Sberbank Online is your personal investment assistant, also based on AI. It will ask you to fill out a questionnaire, it will ask what income you want to get what risks you're willing to take and which are not ready to assume and so on. Based on your answers, the assistant will understand where you should invest in bonds, stocks or use a mix of instruments. Speaking of the language of investments, AI will automatically form your unique portfolio. And then it will help you adjust it, if needed, sell some securities that are no longer working, acquiring some others. At the same time, importantly, naturally, all this is done with your permission. You can monitor how your money is working for you right now in Sberbank Online. You can find forecast expert assessments and analytics. All this comes from AI. For qualified investors, we have another tool, a digital investment adviser. It is available for Sberbank first clients when connected in bank offices in branches. And the digital investment adviser, we combined the power of AI and human expertise. It is similar to how sports scouting works. Yes, algorithms can calculate a player's speed and accuracy, but the final words, the final decision always remains with the scout. He sees beyond the numbers, the character, the potential of the athletes. In the digital investment adviser, forecast given by professional analysts, then they are processed by AI. As a result, the investor receives conclusions as a recommendation. You can heat it or not. The final decision always belongs to you. You are in control of your investment decisions. We provide you with a powerful analytical tool, but we believe that the right to make the final decision should always belong to the investor. And our job is to provide all the power of AI to achieve your goals. The main thing that is changing the life of entrepreneurs today is our Giga assistant. Our helper based on the GigaChat neural network model. The assistant works as a personal analyst consultants, strategists and operational manager all at once. Entrepreneurs are used to the idea that to use AI, you need to ask a question, formulate the query, explain the situation and prepare the data. With our Giga systems, everything has become different. It helps you make sense of numbers plan actions and find growth points. The system doesn't wait for your command. It is proactive, and it works on board the spare business online banking app. Personal AI-powered hence appear on the main screen. They are generated automatically based on an analysis of revenue, return rate data, average transaction value and so on. And entrepreneur logs into the app. And immediately, they see what to improve, which product is lagging and which products on the contrary could take off. You click on the hand, and it opens a dialogue with an intelligent assistant. It recommend specific steps with that particular entrepreneur, not general advice, but a detailed road map. How do you fix the sales drop? How to plan development for the next quarter, how to enter a new segment? And that's not the end of it. In side-to-service over 50 specialized agents are at work and agent for strategic development. which forms a personalized business scaling plan, an educational agent, which sees gaps in managerial skills and immediately selects a course or training program. A tenders agent, it helps select procurement auctions where the client has a chance to win and build a personalized step-by-step plan for entering the public procurement market. It also finalizes key tender information with the help of an AI summary. This reduces decision-making time from 1 week to 5 minutes. Agents with sales, finance, document flow, procurement and much more. Each [indiscernible] is trained on vast business knowledge basis. And it works like a like a separate specialist. It is available 24/7, instantly and completely free of charge. And this is where the most able thing happens. And enterprise can finally stop carrying everything on their own shoulders. The assistant in bar business turns into a universal assistant, which is already available to 3 million users. AI used to be a tool, and now it's a partner in the development of your business. With Sber's financing, Russia is building about 73 out of 119 million square meters of housing. To make interaction between developers and the bank more efficient, to accelerate construction and help Russian get the long away to department as soon as possible, Sber's deploying AI solutions for the residential development industry. This year, we launched 2 AI agents. They help developers work much more efficiently. What are these agents? One is an AI agent for determining construction readiness based on site photos they obtained data automatically go into the construction experts personal account, and it calculates the overall construction readiness of the facility and identifies possible delays from planned deadlines. This innovation reduces the construction experts labor costs for preparing a monitoring report by 15% to 20%. Another AI agent helps percents client managers calculate preliminary commercial proposals for key project parameters, almost like a mortgage calculator. In a matter of minutes, the agent can click premises for future project for a specific location. All you need to do is specify the land plots cadastral number, estimate the cost, construction time lines and the sales price of the project space. Artificial intelligence also helps with approving housing financing deals at Sber. Currently, 60% of deals in the residential real estate industry are approved using AI. And the total amount of such deals this year has already exceeded RUB 1.5 trillion. We are implementing AI for lending to all segments of corporate clients. Sber's corporate credit portfolio formed using AI for medium, large and major businesses has reached RUB 5 trillion. In November, for the first time in corporate lending, Sber issued a fully autonomous loan to a medium-sized business client without employee involvement at any stage. From forming the offer to disbursing funds to the settlement account. Our next goal is to conduct every second new deal for medium, large and major businesses completely autonomously in 2026. Sber is in a state of constant transformation based on generative AI. We are ready to change the landscape of the Russian economy by implementing artificial intelligence across various industries. We sell digital products to the largest retail and telecom companies, customized AI solutions for transportation and oil and gas and act as a center of competence for industry and energy. For example, together with, Gorky automobile plant, we are running a pilot project, testing computer vision in a quality control system. Monitoring the correct installation of 2 structural elements, has improved the accuracy of production operations and provided protection against errors. Sber GenAI helps Azimuth Airline, a chatbot based on the GigaChat chat neural network model already processes about 90% of questions, including nonstandard ones and an assistant based on Stars GigaChat neural network model consults passengers of the Toba Group company, one of the leaders in the Russian business aviation market. The Vorsagra Holding has switched to an import substitute production management system. Again, with our GigaChat on board. This reduces cost while employees can make decisions faster and prepare reports. Together with the [indiscernible] pronged TransGas Tomsk is implementing the GigaChat for business neural network to automate checks of as-built documentation during the construction of linear facilities. This speeds up the acceptance of facilities many times over and minimizes errors in document approval. Our new model together with the client to succeed is built on a deep understanding of corporate clients business tasks. GigaChat facilitates this. Our AI agent in pilot mode help the bank's client managers work more efficiently and offer truly personalized solutions to business leaders. We see a trend of transition to GenAI transformation. Today, of the 2,500 companies are undergoing digital transformation with Sber. 230 of them have already begun transformation based on GenAI. I'm confident that in 2026, there will be many new such clients, and that means there will be many more profitable companies and happy clients.

We have shown you our key innovations. So I'm confident they will be useful to you and will help you comfortably solve everyday tasks. Our developments are the concentrated embodiment of Sber's priorities. They reflect our team's ability to offer cutting-edge solutions, change quickly and demonstrate flexibility as well as be open to the most revolutionary technologies and ambitious challenges. Such qualities are critically important for sustainable development in a world where the only constant is the inevitability of change. And 2025 is the proof of that. We have gone through a number of challenges together. Tight monetary policy and regulation, restrained economic growth, external factors, including prices for export goods, also in a stability. The goal for the coming period is to exit the economic cooling cycle and provide a timely impose for launching investment projects that will define the Russian Federation's development for the next several years. In 2026, we expect restrained economic growth at approximately 1%. Inflationary pressure will weaken and approach the regulator's target level. Under such conditions, we expect an easing of monetary place by the end of the year with the key rates reaching 12% as expected. At this level, we expect a normalization of credit activity. The credit growth rate will be in the range of 9%, 11%. Fundraising market will grow at a comfortable pace. And Sber will grow in key segments together with the sector. At the same time, retail lending will develop at an accelerated pace. As for our financial indicators, we are maintaining our key targets for 2026, maintaining return on equity at the level of 22% and its adequacy at our target level of 13.3%. In 2026, we plan to pay dividends amounting to 50% of the profit for 2025, 2026 will be the final stage of our 3-year strategy, and this is a very important milestone on our path of transformation. The transformation into a business model focused on the human being we are purposefully moving along the path of deeply understanding the interest of each of our customers and creating personalized solutions and communications. Just yesterday, this was impossible. But with the development of AI, we can now create increasingly sophisticated solutions, and the systems that are capable of working with complex information and solving nontrivial tasks. For many of us, the scale and speed of technology adoption cause anxiety and doubt, and that's exactly why we have started with ourselves. Today, hundreds of AI agents have been implemented at they are used in different key processes. More than 1,000 agents are in development. Multi-agent systems are being developed where each has its own role. They interact with each other. Almost like an entire team of people would. For example, in our basic process, there is an AI agent that forms credit offers for clients. Today, 96% of corporate clients using a lending services have received an individual personalized credit offers. Another AI agent is a digital credit inspector. It's a multi-agent system that gets engaged in a deal where a client's needs exceed the amount or the term of a preapproved offer. Based on the financial analysis and cash flow forecast and the agent makes a decision autonomously without human intervention. AI helps us protect our customers' interest. We are creating AI systems that process over 500 billion cyber security events every day. And that's 10x more than 4 years ago. The total effect from implementing AI across the board will reach 550 billion in 2026. And this will affect both revenue growth from personalized offers and pricing as well as reducing credit risks and optimizing our expenses. We're implementing AI, not only in financial products but also in education, health care, science and government services. The areas where technology are critically important for the quality of people's life together with the biopharmaceutical sector, we are working on developing a platform for integrating AI into medication development processes. Artificial intelligence helped with molecular modeling, forecasting and eliminating the most expensive debt and stages. For example, the combined application of AI genetic technologies and bioinformatics reduces the development time for cancer drugs to 2 years. And shaping the education of the future, we -- the special focus to schools and universities. We are creating platforms with adaptive learning, they adapt to the students knowledge level. And we are also creating AI systems for teachers to help them. Besides that, we are building our own schools for developing digital skills. Schools 21. We are constantly working on developing our family of neural network models. And recently, a new function appeared in GigaChat, the voice communication with the neural network. Users can now talk to the AI as if it was live. They can interrupt it, ask clarifying questions and conduct a full-fledged dialogue, but the main thing is that we opened access to our flagship AI models. GigaChat Ultra and lighting, a new generation of speech recognition models Giga AI V3 image and video generation model, Kandinsky 5.0. Companies of any scale can now deploy our models within their closed perimeter and fine-tune them on their own data. This both lowers the barrier for model implementation and speeds up the development itself, open user models increases trust in the technology from researchers and developers. Moreover, our communities formed where specialists share new ideas and improvements which is useful for all of us. But any strategies, even the most well thought-out strategies will remain on paper without the main thing the team and I appreciate the determination and energy with which the entire Sber team learns new things, experiments, test technologies and move forward achieving our ambitious goals. It is precisely this high internal drive and motivation that drives our shared culture, a culture of high demands on ourselves, where the pursuit of excellence becomes a personal value for each team member. On the eve of the New Year holidays, so I want to congratulate our customers colleagues and investors and wish health and well-being in 2026. I am grateful for your choice and trust, which have become the foundation of our common achievements. Thanks to you and for you, we are building a company where the main place is given to the human being.

Hi, everyone. We're continuing our broadcast. We have a very unusual event today, consisting of several parts. And we are moving to a very exciting part. So this is our dialogue which today will be conducted with me and with my colleagues. First of all, we have two first Deputy Chairman of the Executive Board, Alexander Vedyakhin and Kirill Tsarev and Deputy Chairman of the Executive Board, Taras Skvortsov. We also have guests today from the investment community, 2 analysts who have been covering Sber investment case for a very long time. So we are very grateful to them for their work. How long have you been following Sber, Olga?

Probably around 20 years, about 10 years, I think.

Great. Let me introduce our guests, Olga Naydenova, senior analyst of Sinara Bank. Evgeniy Kipnis, Director, senior analyst for financial sector equities at Alpha Bank. We have just heard from Herman Gref, he told us about our goals about 2026, which will bring us many exciting events. Let's discuss it in more detail, and let's talk about it, and I would like to ask my first question to you, Kirill. So today, we have learned a lot of exciting things about approach to offers based on the person's life scenarios. That's a new image. And possibly, there might be new results. Our investors are very interested to know in what indicators they can use to track our progress. And what indicators we ourselves look at when trying to assess our efficiency and effectiveness?

Well, actually, this is not exactly a new approach for us. we have started implementing it as part of our 2023, 2026 strategy and now we are just consistently continuing to develop it. First and foremost, for us, it's an opportunity to assemble a full-fledged set of products, natively understandable for the customers because well, today, we can use different matters, but we can say more than 300, more than 400 products that we have, I mean, depending on the combination. We understand that dividends [indiscernible] very difficult to explain to a customer how to use that more to remember all these services to know that they are available there. I mean basically, you need to combine them based on the life scenarios that customers face. Therefore, at the end of the last year, we launched a project that is called Space for Life. Basically, we have this big button at the center, at the bottom Sberbank Mine app, where we get for our customers, just banking services, but that are absolutely clear. But what we call lifestyle services, like opportunities to buy tickets, view some goods and buy tickets for theaters. And that's very convenient, native and clear. Other similar elements, for example, gathering services around other life situations like the bank that they classically only did mortgages, and we made many ecosystem around housing and around 30% of deals that are made in Domclick are done without a mortgage at all. So basically, that means that you can conclude any sales and purchase deal online for customers in different regions, electronic registration and other things. But all this has been done a long time ago. Now we have essentially added the integration of Domclick and Sberbank online. We brought these objects. I mean where Postbank combined customers, we can not only just pay for the utilities can add your meter readings. You can see the market value of your apartment, for example. You can look at your total wealth, not only in monetary assets, but to see what is your wealth like in terms of having properties and other things. We have a similar integration with our investor app. All your finances can be put in 1 single place and some simple transactions, including Sberbank of money transactions. It seems to make sure that there is a comprehensive service. So you don't have to remember where a particular service is located in. In terms of metrics, we first look at 2 things: the service audience versus MAU and DAU. We have a large Sberbank online audience, it's 45 million DAU and 84 million monthly active users overall. And we can see that the home section is used by 8 million people per month. It's a pretty big MAU. Since the start of the year, we've seen that have been over 20 million unique users. We also look at the NPS and the satisfaction and the dynamics of the customer base that is growing or might not be growing. And we are focusing on that. That's very important for us and CSI.

Do you measure the returns for the customers?

Yes, we developed LCV is very important for us as well because we think it's very important to build long-term relations with customers, and you need to put a proper balance between the revenue today and the revenue in the future. That means long-term relations. And since we are our financial organization, and we like to quantify everything, I mean, obviously, we had to have some metric. And for us, it's CLTV and now we're actually using it. but there is some room for growth there, room for improvement.

Okay. Understood. I would like to remind our views that we do not only have more than 110 million retail customers, but more also more than 3.5 million corporate business customers, 285 was a challenging year for them. And 2026 is expected to be a challenging year as well. I have a question about the corporate sector. I know that all get wants to ask a question. Yes, I wanted to ask, first of all, about the following. We see the major acceleration of the corporate lending starting from Q3 in Sberbank. The sector has been growing as well. Who are these customers? I mean we hear that they face challenging times. But who are these customers who get the loans since Sberbank? These are some sectors or we're talking about some separate metrics that you can talk about.

Thank you, Olga. In Q3, it the land in Sber grew at 7.1%, while the market overall grew by 3.6%. So indeed, in Q3, when we noticeably faster than the market as we -- has a sufficient capital and liquidity buffer these are good news for the corporate sector. At the same time, we have to note that the demand has changed significantly. We used to issue the largest loans for the biggest projects. And now the demand for investment loans has practically fallen. I mean it's hard to actually select some specific industries. But before, the demand was distributed in one way in a large part was coming from medium and small businesses. And now we see a sharp reduction in demand from small and medium businesses and a pretty large volume of demand from the largest ones.

It seems that acceleration in project financing this quarter is rather marked. But those were additional disbursements. On the plus side, we started to feel an improvement in the real estate lending market, residential real estate plus office real estate and are feeling much better. So some new projects are appearing in that area. But I repeat this is very much testing the waters. And regarding risks, we've been living with high strongly double-digit rates for 2 years now. How are your corporate clients feeling today? And what do you expect in terms of cost of risk for the corporate portfolio?

0.7% cost of risk for 9 months. Overall, good indicators, we believe we have always been very selective in forming our portfolio. The portfolio is now around RUB 1 trillion. But nevertheless, it has fairly good quality, as you can see from the cost of risk. The largest ones feel generally normal. There are certain issues we need to resolve. Probably, we will have to make some schedule changes, some restructuring somewhere. But overall, everything is under control.

Could you talk a bit more about small and medium businesses? How your clients in the segment are feeling? And against the backdrop of the tax changes being discussed for next year? Will next year become an even bigger challenge for clients in the segment? And how might it affect the quality of your portfolio.

Small businesses, I believe, are currently experiencing maximum pressure. The long period of time of high rates limits the amount of money that clients have at their disposal. Overall, I think we are closing 2025 with good results. Cost of risk 26% might be even lower if the key rate goes down as we see in our guidance. And [indiscernible], what would you advise to small businesses in these conditions?

Well, First, small businesses need to understand how much they owe, that sounds simple, but you have to start with something simple. So first, how much you owe to banks, how much to nonbanks, what the debt structure looks like and how it is structured in terms of payments? And then you need to match these payments with the cash flow from your business and negotiate with banks and nonbanks on how to structure the cash flow, 2 cash flows, actually, 1 for debt repayment. And the other generated by the business, very straightforward, but it needs to be done.

I understand it sounds simple, but again, this needs to be done. And also, we have a great neural network called GigaChat chat. It works really well, specifically for business. There is this GigaChat business app. It is available in SpareBank business online. So think about how you can improve your business, how you can reboot it what problems exist. It can also suggest to you, by the way, what skills you need to improve as an entrepreneur in these turbulent times. Okay. So while we're at the portfolio quality? Kirill, what about the quality of the retail portfolio. And Taras, I also wanted to know your opinion on the forecast for portfolio quality and the cost of risk next year.

From the point of view of the retail portfolio, specifically, we believe that the peak of risk growth is behind us. We already see stabilization in terms of COR. Ours is at 2.7% for 9 months. It's worth noting that we have had and continue to have stable mortgages for quite a sustainable reasons a fairly high level of collateral. And it has always shown good results. At the same time, we see that due to state programs, among other things, the portfolio the mortgage portfolio is growing. Originations year-on-year are lower, but overall portfolio amortization is still happening slower than the pace of originations we are going at today. We see stagnation this year in consumer loans. They are secured. Now that's precisely where the risk growth comes from last year. We attribute this to the overall situation on one hand. And on the other hand, the introduction of restrictions related to debt service-to-income ratio 2 years ago. And third, when your portfolio isn't growing, but it's essentially amortizing and decreasing by definition, the ratio of overdue debt to the portfolio increases anyway. So we observed this increase in cost of risk for those reasons. For next year, our forecast is quite positive. We will definitely go from flat to improvement. We expect COR at this level, even slightly lower, but as consumer lending will also improve and the rest like mortgages. With the rest, everything is fine as is.

Yes. Speaking in general, cost of risk was a big challenge for us in 2025. Actual rates rose in 2024. This effect of pressure on corporate clients on retail borrowers was quite pronounced this year. And we see that the cost of risk for 2025 is significantly higher than in 2024. And we were anxiously waiting for the peak. First and second quarters of 2025 where the maximum values and then risk slowly started to decline with new clients, we see that new clients by risk level are better than those from a quarter ago or 0.5 year ago. And that's precisely why we have this overall lowered the forecast for cost of year to 140 basis points.

Your strong suit has always been maintaining interest margin regardless of where the key rates changes, the period of 2023, '24 and '25 as a vivid example in '26 and '27, there was hope the rate cutting cycle will continue. Is your balance sheet structure ready for this? And what are your expectations for net interest margin for this period?

Yes, again, already last year, everyone, including us, was waiting for the key rate to start declining. And in 2025, the process to begin. And at some point, we really had a not entirely ideal interest rate position. Our sensitivity to rate decrease was negative. We were losing net interest income or we would have been losing net interest income at that moment. But thanks to business efforts and the changes in the portfolio structure and the changes in tariffs and our interest policy, we now have a practically 0 position. We are incentive both to rate increases and to its decreases. And that's quite a comfortable situation for us. Moreover, it's important to consider that for us, of course, it's important not just for the rate to grow or go down. What we need is predictability. Because when the rate moves down at a predictable race -- at a predictable pace, for example, by 0.5%, 1%. It's much better for us than if there are sharp movements, for example, plus 2%, plus 3% or minus 2, minus 3. Today, we see the Central Bank is trying to raise the predictability of its actions for the market overall and act roughly as predicted by analysts before meetings. Sometimes different by 5%, give or take, but that's not material. And secondly, that's very important, of course, against the backdrop of rate decline, we get a different slope of the interest rate curve. We still have a negative slope today where short-term rates are higher than long-term rates. And banks, of course, this puts pressure on the margin. Next year, we assume that most likely, the slope will disappear, and we will have a flat curve. And thanks to that, overall, we are keeping the margin forecast for next year at a high level of 5.9%. There's a level that is historically very good for us. We plan to maintain a father in 2026. And looking ahead to 2027 and beyond. Of course, we would like to have some of the dynamics, but I think we'll talk about that next year when we present our new strategy, which we will prepare during 2026.

At the moment, people have accumulated over RUB 60 trillion in their accounts and deposits in the banking system. If rate cut expectations materialize, then it seems real estate and stock market instruments will become perhaps a bit more interesting than deposits. Do you agree with the stake or not? And how might this affect funding costs and the margin of your business?

I think this is a classic discussion about whether money will move from deposits to the securities market or vice versa from securities to deposits in our view, as long as we see a substantial positive real interest rate as long as it remains that high, the population will have clear demand for deposit products. We see this interest this year, and most likely, it will be there next year as well. Basically, now we see that those investors who largely chose deposit products have, in fact, outperformed many markets or rather all markets. So next year, of course, there are certain expectations, including about the spread of revival in the securities market. And we expect, on one hand, an increase in the balances of our clients on brokerage accounts on our investment products by more than RUB 1 trillion probably. On the other hand, this will not reduce population demand for deposits. So we do expect growth, both in deposits and in investment products. Our job is to make these flows as seamless as convenient as possible for the clients. A matter of fact, it's not so important, whether they will be in 1 instrument or another because we are now making it as comfortable as possible for the client to manage these funds as a package, which are within the perimeter of the Sber Group in a comprehensive way so that they can adjust in an optimal way because diversification is still a big thing. So we recommend that you as well have your basket properly forward. I wanted to add an important point. Even this year, we already see that this process you mentioned, [indiscernible] has already started in the first half of 2021 and in the third quarter of 2025. The movement of some money from deposit accounts to the real estate market and to the stock market, the securities market intensified much more than a year ago. And that's why this year, we lowered our deposit growth forecast several times. When it exceeds 12%, 13%, it's a very comfortable trend that really allows us to offer clients good conditions, both on deposits and investments. [indiscernible] earn more overall. In general, that's what we should be doing. Just great news for the brokerage for the investors, more than RUB 1 trillion. The exchange said there was the inflow in the market. So commission income should not disappoint as well. Can you tell us more about it? We heard about the margin -- interest margin. What about the commissions income?

So 2025 in terms of commission income was quite a tough year for us. We are growing by a very small amount, a little under 1% for 9 months, but in 2024, we had a very high base. When we made a number of changes in accounting policy and began recognizing some commissions that were previously recognized one time over the entire term of the deal. And thereby, we reduced income starting in 2025. In 2026, this factor will disappear, and income will be comparable. But in the retail market, in the corporate segment as well, competition is very high, and many banks today in terms of settlement services, foreign trade transactions, of more preferential terms than, for example, a year ago. So due to competition, the pace simply won't allow us to grow faster than, but that's what we can achieve next year between 5% and 7%.

Yes, I can add to what Taras said for corporate clients, the situation is quite straightforward. It's a percentage of business activity. is a direct correlation. Turnover growth in the third quarter was nominally plus 2%. That is, by the way, 5x less than the same period last year. In real terms, the right number of quarters where they were even falling. But again, business activity and turnover depend on the rate. We sincerely hope that the rate cut trend will continue, and then we will see growth in business activity, growth in turnover and accordingly, this will support our commission income.

I see anything else we want to ask about commission income or shall we move on maybe retail then.

Well, regarding retail, actually, the situation here is more tense because for a whole range of products, we see commission income declining in the market. Our job is to find the right balance, where on one hand, we maintain commissions with certain products. And on the other hand, we create new products that will generate commission income. We see this now, among other things, in investment products. And returning to the previous question, the more funds under management of our clients in our investment business area grow, the more our commission income will grow as well. We are essentially developing an ecosystem as be mobile in terms of development is increasing its client base and also growing exploration income. So we're looking at engagement in additional products where we also see potential for commission income growth.

Okay. Moving on. Let's talk about efficiencies, but has traditionally been achieving very impressive results on the cost-to-income ratio. At the end of the second quarter, I think we even reached the second place in the world among the largest banks in terms of capitalization on our CRR. I wanted to ask you about the target for this indicator. If there is one and tell us how Sber manages to achieve such levels?

Well, actually, of course, the focus on efficiency has always been there. in any , especially in the bad year and a good one, too, we never allowed ourselves to spend more than we earn. On the contrary, we tried each year a little by little step by step to keep the pace of expense growth lower than the pace of income growth. And that's how the cost-to-income ratio is maintained. We've been at the level of around 10% for several years now for about 5 or 6 years, I think. And of course, next year will be no exception. We want to stay around that level, just the same. But we have to appreciate the fact that today, our main technology that helps Sber to be competitive is AI. And mainly, our investments are focused in this technology. It's a very capital-intensive technology in terms of , right? Yes, but very promising. and its potential, of course, has not been fully unlocked. The maintain is that the more we invest in fundamental models. the more we, as a consequence, see the opportunities for the technology we invest in products and implementation and we invest in our internal processes, and we deliver it for our customers and services. So I mean, you have to invest upfront to the first stage to get that effect later. So yes, next year, we will have a fairly large growth in investments, specifically in generative artificial intelligence. In certain over the 3 years. Including this year, we will have invested around RUB 60 billion and of course, a large part of it will fall in 2026.

It's about 10% of operating income, right?

Yes, about 10% of 2025 operating income. And by 2026, it will be less than 10%. And do we see that companies that seriously invest in foundation models, they spend much more than 10% on R&D. So our share here in some ways is even lower. I mean perhaps when we are leaders in profitability and cost to income, but in terms of our share of investments in G&I were rather at the lower end of that ranking. But even these investments, it's a very large amount for us.

Are there any ways to...

Yes, sir, please go ahead.

Are there may be some proven ways to monetize AI, maybe some scenarios, some specific cases that you can share.

Quite a few of them you have to distinguish between GenAI and classic artificial intelligence. Those are 2 different things. Regarding classical AI, everything is clear there. Those are the exact numbers that we have told you, precash GenAI is much more complex. On the one hand, it gives undeniable advantages, which Taras talked about everyone talks about that. Kirill, I'm sure we'll get a comment here, too. I mean, yes, absolutely. So it's a very promising huge technology but on the other hand, it's also divided in 2 components. There's model training, which consumes most of the power to be used and electricity as essentially our investments, 80% of expenses of non-GenAI is model training. And then inference, I mean, it's execution and providing services to customs. That's another thing. Another part. And now the entire market is looking for a business model for how the huge investments in GenAI will pay off. So to say that now we are investing and there will definitely be a known return in the near future would be an exaggeration. At the same time, the technology will develop. Business cases are clearly there. We are now adding GenAI to scoring and obviously, working with customers, working in call centers, optimization of the headcount which is happening based on that, we have over 1,000 agents that are in development right now. Yes, I mean there are more than 550 initiatives on generative AI. So will we find the answer to the monetization question, we will. How quick we do? It depends on us, but we have to invest. There's no other way.

We have already shown several cases today. We basically now implement GenAI business in our client relations. And as with any technology at initial stage, it takes more time, and it's even everything becomes less efficient even. But as this technology becomes more industry standard and the team learns how to work with it. We gained the experience. It becomes I mean, definitely cheaper to do the work. And in terms of client satisfaction, it goes up. So talking about previous technologies that Alexander has already mentioned, we have a lot of implemented our call centers today handles over 67% of all incoming calls with what we call IVR, basically, that's legacy technologies as well, but even with that, that means that 2/3 of all the calls today are fully end-to-end. And it's not just call reception, but it's essentially the execution of the task that the clients called about is fully implemented. I imagine we would need the call center essentially almost. There will be almost 3x larger than what we have now. We're running first impairments in there in production, very small volume right now experimenting with GenAI in terms of voice. If I turned it on, you would not distinguishing from the real one. But just given that we also monitor reliability and quality. We need to make sure that these technologies are not just used, but they have to be fully tested in the moment and over a certain period of time. So both 2025 and some part of 26 will be the period when this technology will be already implemented in production and our customers already interacting with them. But at the same time, we will still closely monitor how they are implemented to make sure that quality and reliability traditionally remain a highest priority.

I can add that's internally and our team, we actually understand quite well how we monetize AI. But without an external market, it's not possible to fully return the investments in the technology. And that's precisely why '26 is very important for us because we will bring products to the market based on this technology. And we will already understand the potential applicability and feedback from clients.

And so beyond the horizon of 2026, it will definitely be clearer in this part and where we are now. And we will show the market how it works, including in the client service.

This will be true for B2C and B2B. promise in 2026, right? Moving on.

Absolutely. Yes, returning from the future to the present. Capital adequacy in your targets, you have always been substantially more conservative than the Central Bank allows over the next few years, at least from what we already know, the systemic importance buffer may increase. Also probably there might be some surprises with the countercyclical buffer, regulation of mobilized assets. And against this backdrop, how much could your target level for '20, the capital adequacy ratio please? And could this somehow affect your dividend history.

Adequacy is a super important issue. And when we were developing the 2026 strategy, we discussed the target value, and we had very heated debates. We try to figure out how to proceed. And in the end, we decided that this indicator is a top priority for us. We cannot afford to go below 13.3 despite the fact that the Central Bank allowed us to do so. And today, thanks to that decision, we have the opportunity, unlike a number of other banks, large banks to work calmly grow the portfolio and not lose market share, pay 50% of dividends and still remain in a comfortable zone. After paying dividends for 2024, we showed 13.4% as of October 1 and remained above 13.3%. And we see all these Central Bank initiatives. We constantly analyze them, both RTL risk to liquidity and the countercyclical buffer and the systemic importance buffer. And overall, we have decided that for 2026, we won't change the indicators it will remain at 13.3% as for the next period, probably we should wait for the final decisions because many of them are still being discussed with the market. People are working out their positions. If the Central Bank decides, for example, to set a tougher schedule, then we will probably have to respond somehow. But for now, we see that for 2026, this level is comfortable for us. We made an absolutely right decision back then. And now we feel very comfortable and 50% of profit goes to dividends. Nothing is changing here. a pretty hot topic about the marketplaces. I would like to know about the discounts from the marketplaces and the dependence on various payment scenarios. What is the position of Sber. First of all, we want to make sure that discounts can be available to everyone. So it's not that [indiscernible] against discounts. That's not the right thing to do. Our position is clear. The discounts are provided, and that's good. Then in accordance with the law, all the payment conditions should be even. So there should be no discrimination based on your method of payment. That's the first thing. And secondly, these discounts have to be transparent and understandable for customers. The customers have to understand how they are formed. I mean the best would be personalized for every customer. It shouldn't be transparent and understandable. Basically, this is all this is our position. That's it. I think it's pretty normal. I think basically, all industries went through that. So I think it's a right decision on the on e hand, everything is transparent. There's an even level playing field.

Okay. Thank you very much. Any questions about the capital No. Okay. Let's move on. Another question this is the VAT for bank transactions. [indiscernible] bank transaction. Big news for the banking sector. How ready is -- is for this and how it will affect our financial results? Well, we learned about this not long ago as the whole market did about this initiative. Of course, we were not very happy about such a turn of events. We had some dialogue we showed potentially negative consequences of such a tap. Yet the decision has been made. We're going to comply with it, of course, but some expenses are going to be related to our users. I mean some customers, these are small businesses, retail customers, they will not be able to get a discount. I mean they will experience the increase of the VAT a little bit less than 2% of the price growth in total by the end of 2025, beginning of 2026. That's what we expect. But that surprise the economy will pay for additional taxes that's how it's always been, and it won't be possible to avoid it.

Yes. For us, this is, of course, a challenge in terms of banking systems because as was correctly mentioned, since 2006, this tax didn't exist in the banking system. So what has been introduced a short period of time, we have to go through the adaptation, not only in our -- we have to adapt our internal accounting and settlement systems. And we are doing that. But as the area, this is relatively neutral for large and medium businesses I mean, who are VAT payers. And that's a greater pressure that's small and micro businesses will feel and partly, that will be for the services where it will affect individuals. But so these are the 2 main areas where we, as already discussed, will make decisions on where and how we'll adapt the plans.

I have like a very personal question. I'm going to ask it before the New Year's holidays that I think it will be interesting for everyone. When we were kids, we were writing letters to Santa Claus and making promises and now we're giving promises to ourselves and especially before the new year when the majority of us are making some plans for the future and taking account of the past year. So what are your personal goals for 2026? Could you please share your thoughts on that, your plans and ambitions?

I can start my personal plans are directly related to borough plans. The next year is going to be very important. We are going to end on strategic cycle. And we will be focusing on the new strategy. We'll be making a new strategy. It's a great challenge for us. We're not only a bank, we are a high-tech company and an ecosystem. And for me personally, it is a big rethinking process of the entire B2B business. How B2B business will look like in by 2030? What we need to prepare? What do we need to do? So this is what I'm going to do in my New Year's vacation to dive deep into the thoughts to think about the first half of the year, then we're going to have a couple of strategic sessions where we are going to debate the strategy for the next period of time. where we'll set the goals for the future. And this is for me, this is a huge process, thinking process where I have to dive deep and to really ponder on this issue. So I think it's even exciting for me to think what are we going to discuss in a year's time when we are going to present a new strategy.

Thank you. Kirill?

Like New Year this border between last year.

The new year exist in your minds largely.

Yes, but it's a good thing because it helps you summarize all you've done over the year. And as Alexander said, what's important for us and for me personally in 2026 is not just about future, we will live in 3-year cycles, tied to the strategy. So we will have to think about where we would like to find ourselves in 2029 or in 2030. Why is it important to do at all when you are looking at things in a linear fashion? Step by step, you may lose sight of the ultimate goal. So the ultimate goal for next year is to have a very, very clear understanding of the economy of trends and what's especially crucial for me, customer preferences. It's very rare that you can build a product from scratch without a vision. You need to have this vision of where you would like to end up. So 2026 will all be about working out the vision for 2030. We can safely say already that it will all be built on AI. But what exactly it will look like in terms of products. This is something we'll have to live and see.

Thank you. Taras?

We had this good tradition. Start New Year and EMEA with setting goals as ambitious as possible as bold as possible and as meaningful as possible and that helps you estimate your results later on. For my block, the finance block, I decided to set the goal that involves redesigning processes to a large extent, new tools, new approaches, new AI implementations. So now my team and I are brainstorming, what we can do to help business and to make the banking metrics even more robust. So that's probably the main goal for us, main go for me. I hope we deliver.

Thank you. colleagues what about you? What are your New Year's Eve promises?

Well, in broad strokes, I want to be a better version of myself next year. I want to preserve all the meaningful relations with people. And personally, I really love traveling in Russia. I've recently had this trip to the north in 2024 that was. In 2025, I went to Siberia and [indiscernible] by car. And so Far East is 2026.

Yes, great goals. yes, what about you?

I think I will agree with Jan and say that the most important thing is to preserve all the valuable relations that you have to preserve your clients. What you have -- we've seen new issuers emerging lately. So maybe you have a broader view of the sector, have a better analysis of the sector. Don't forget about us.

Oh, no, I will not. Almost 20 years and running. Now I hope you didn't start following Sberbank from the H2.

Thank you very much dear views. We would like to wish you a very good new year. We wish you every success in 2026. We hope 2026 will be full of interesting events for you and see you. See you then. See you next year. [Statements in English on this transcript were spoken by an interpreter present on the live call.]