Annual report 2011 - VTB

VTB BankNotes to the Consolidated Financial Statements – 31 December 2011 and 2010(in billions of Russian Roubles)31. Staff Costs and Administrative Expenses2011 2010Staff costs 69.2 47.3Defined contribution pension expense 5.4 3.1Depreciation and other expenses related to premises and equipment 16.9 11.6Taxes other than on income 7.3 5.0Leasing and rent expenses 6.6 4.8Advertising expenses 5.8 4.2Professional services 5.3 4.7Impairment, amortization and other expenses related to intangibles, except foramortization of core deposit intangible 4.3 2.1Payments to deposit insurance system 3.5 2.2Post and telecommunication expenses 2.8 2.0Transport expenses 2.3 1.2Charity 1.9 1.5Security expenses 1.9 1.3Amortization of core deposit and customer loan intangibles 1.9 1.0Insurance 0.5 0.7Other 5.9 2.4Total staff costs and administrative expenses 141.5 95.132. Allowances for Impairment and ProvisionsThe movements in allowances for impairment of due from other banks by classes for 2011 and 2010 were as follows:Russia OECD Other Total31 December 2009 0.5 0.1 0.7 1.3Provision for impairment during the period 1.6 – – 1.631 December 2010 2.1 0.1 0.7 2.9(Reversal of provision) / provision forimpairment during the period (0.3) (0.1) 0.1 (0.3)31 December 2011 1.8 – 0.8 2.6The movements in allowances for impairment of loans and advances to legal entities by class for 2011 and 2010were as follows:Reverse saleFinanceleasesCurrentactivityfinancingand repurchaseagreements withlegal entitiesProjectfinance andother Total31 December 2009 12.3 126.3 0.1 66.5 205.2Provision for impairment /(reversal of provision) duringthe period (0.1) 24.7 – 14.7 39.3Write-offs – (4.5) – (4.6) (9.1)Recoveries of amounts writtenoffin previous period – 0.7 – – 0.7Currency translation difference – (0.4) – 0.7 0.331 December 2010 12.2 146.8 0.1 77.3 236.4Provision for impairment /(reversal of provision) duringthe period 4.8 (4.9) (0.1) 21.1 20.9Write-offs (0.6) (9.3) – (2.2) (12.1)Recoveries of amounts writtenoffin previous period – – – 0.1 0.1Currency translation difference 0.1 0.6 – (2.2) (1.5)Reclassification to assets ofdisposal group held for sale – – – (0.1) (0.1)31 December 2011 16.5 133.2 – 94.0 243.745