



36 Operations with State-Controlled Entities and Government Bodies
The Government of the Russian Federation does not provide to the general public or entities under its ownership/control a complete list of the entities which are owned or controlled directly or indirectly by the State. Under these circumstances the Management of the Group disclosed only information that its current internal management and accounting systems allow to present in relation to operations with state-controlled entities and where the Management believes such entities could be considered as state-controlled based on its best knowledge. These consolidated financial statements disclose operations with government bodies and entities, in which the government directly owns more than 50% of the share capital. In relation to state-controlled entities, Management analysed the Group's transactions with its largest customers and extracted balances and results of operations in relation to the following groups of entities which were included in the tables below: 1) 100% State subsidiaries and government bodies and 2) largest entities where the State controls over 50% of its share capital. All transactions with government bodies and state-controlled entities are entered into in the normal course of business and priced at market rates.
As at 31 December 2010 and 31 December 2009, the outstanding balances with state-controlled entities and government bodies were as follows:
2010 | 2009 | |||
---|---|---|---|---|
In millions of Russian Roubles | 100% owned State subsidiaries and government bodies | Entities where the State controls over 50% of share capital | 100% owned State subsidiaries and government bodies | Entities where the State controls over 50% of share capital |
Cash and cash equivalents (contractual interest rate: 0.5%) | 2,001 | 8 | - | 1,747 |
Trading securities (yield to maturity: 2.0% -18.0%) | 48,213 | 4,634 | 72,642 | 6,876 |
Securities designated at fair value through profit or loss (yield to maturity: 1.0% - 8.0%) | 78,323 | 4,871 | 98,131 | 5,383 |
Due from other banks (contractual interest rates: 2.5% - 10.0%) | 10,198 | 4,073 | 2,516 | |
Gross amount of loans and advances to customers (contractual interest rates: 5.5% -16.8%) | 326,359 | 114,872 | 247,522 | 197,813 |
Impairment for loans and advances to customers | (12,036) | (7,281) | (4,675) | (4,402) |
Securities pledged under repurchase agreements (yield to maturity: 1.3% - 1.7%) | 59,224 | 3,747 | - | 31 |
Investment securities available for sale (yield to maturity: 1.5% - 14.0%) | 457,975 | 92,499 | 416,665 | 65,883 |
Investment securities held to maturity (yield to maturity: 4.0% - 8.6%) | 313,380 | 18,070 | - | - |
Due to other banks (contractual interest rates: 0.4% - 3.3%) | 472 | 5,988 | - | 205 |
Due to corporate customers (contractual interest rates: 0.3% - 10.8%) | 187,240 | 94,990 | 152,369 | 90,693 |
Other liabilities | - | - | 3,449 | - |
Guarantees issued | 76,458 | 4,138 | 9,633 | 2,662 |
Income and expense items with State subsidiaries and government bodies for the yearended 31 December 2010 and 31 December 2009 were as follows:
2010 | 2009 | |||
---|---|---|---|---|
In millions of Russian Roubles | 100% owned State subsidiaries and government bodies | Entities where the State controls over 50% of share capital | 100% owned State subsidiaries and government bodies | Entities where the State controls over 50% of share capital |
Interest income on loans | 27,995 | 13,491 | 40,510 | 28,215 |
Interest income on securities | 52,688 | 5,637 | 37,191 | 1,858 |
Interest expense | (4,116) | (1,902) | (12,829) | (7,516) |
Net provision charge for loan impairment | (7,361) | (2,879) | (443) | (2,182) |
Net gains/(losses) arising from trading securities | 4,399 | (165) | 10,254 | 781 |
Net gains/(losses) arising from securities designated at fair value through profit or loss | 5,514 | (356) | 5,316 | 1,782 |
Net gains arising from investment securities available for sale | 3,288 | 3,649 | 9,138 | 5,407 |
Net gains arising from investment securities held to maturity | 5 | - | - | - |
Fee and commission income | 5,938 | 2,057 | 4,242 | 837 |
State deposit insurance system membership fee | 16,255 | - | 13,047 | - |
Transactions with the State also include taxes. Income tax expense attributable to operations taxable in the Russian Federation amounted to RR46 763million for the yearended 31 December 2010(for the yearended 31 December 2009: RR 4 113 million).