Vtb · RUS:VTBR

Vtb — 9M 2009 Earnings Presentation

29 slides from Vtb's earnings presentation, Dec 17, 2009

  1. Slide 1: VTB Group 9M'2009 results

    VTB Group 9M’2009 results Herbert Moos, CFO, Deputy Chairman of the Management Board December 17, 2009 Moscow 1 © VTB 2009

  2. Slide 2: Forward-looking statements disclaimer

    Some of the information in this presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of JSC VTB ("VTB") and its subsidiaries (together with VTB, the "Group"). Such forward-looking statements are based on numerous assumpt

  3. Slide 3: 9 Months 2009 Highlights

    9 Months 2009 Highlights VTB Capital and VTB24 increasing market share to become significant drivers of VTB Group’s revenues Maintaining existing lending levels despite tough economic backdrop – total loans up 3% to RUB 2.7 trillion Net interest margin continued to recover q-o-q to 4.4% in 3Q’09; 4.

  4. Slide 4: VTB Capital Top Tier player in the Russian investment banking market

    VTB Capital Top Tier player in the Russian investment banking market IB contribution to Global Banking Global Markets VTB Group revenues Levels of debt and capital origination were Strong performance in Fixed Income & strong vs the prior year - VTBC ranked in top Equities with sound risk and balance

  5. Slide 5: Retail business – outperforming the market

    Retail business – outperforming the market VTB24 contribution to the Group’s Loans to individuals (gross) results 8.8% 8.9% 8.2% 7.5% 9.5% 9.8% 6.7% 5.9% +9% Market (1): -10% Net interest income 28% +105% 387 410 413 421 286 344 48 53 61 41 26% 228 44 RUB billion 189 30 163 170 177 126 155 23 24 112

  6. Slide 6: Lending volumes maintained despite tighter credit requirements

    Lending volumes maintained despite tighter credit requirements Loans to customers (gross) Breakdown of loans by currency +9% +3% 100% 100% +105% +2% 3.6% 3.8% +80% +76% 2,848 2,730 2,729 2,650 43.0% 33.5% 410 413 421 2,132 387 1,821 344 1,632 1,473 286 228 189 RUB billion 2,263 2,438 2,316 2,308 62.

  7. Slide 7: Growth in core income reflects underlying pre-provision earnings potential

    Growth in core income reflects underlying pre-provision earnings potential Quarterly core income Core income YTD +22% +31% +2% 41.4 42.1 122.1 37.7 38.6 34.4 5.4 5.0 92.9 14.7 29.7 28.8 4.7 4.3 4.1 11.6 +27% 3.5 RUB billion 4.0 RUB billion 33.0 34.3 36.0 37.1 +32% 107.4 26.2 30.3 81.3 24.8 1Q'08 2Q'

  8. Slide 8: Costs under control with better than expected delivery

    Costs under control with better than expected delivery Staff and administrative expenses Staff and adm. expenses YTD -19% +12% 57.4% -10% 50.6% 55.1% 50.7% 44.3% 44.3% 44.9% 43.0% 39.9% 20.8 46.8 52.5 18.6 RUB billion 17.1 17.1 RUB billion 16.6 16.8 13.1 10.4 20.8 23.4 7.2 7.3 8.1 8.0 +13% 6.0 7.6 1

  9. Slide 9: Prudent coverage, asset quality deterioration slowing down

    Prudent coverage, asset quality deterioration slowing down Quarterly provision charges 7.1% 6.6% +281% 4.8% 6.1% 3.8% 4.3% RUB billion RUB billion 2.2% 2.5% 126.4 1.2% 49.2 47.4 9.5 30.0 29.8 33.2 4.7 19.0 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 9M'08 9M'09 Provision charge / Average gross loan po

  10. Slide 10: Restructuring: preserving long-term value

    Restructuring: preserving long-term value Rescheduled loans (as % of total gross loans) in RUB bn 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08 Rescheduled loans 225.7 78.8 23.6 16.3 - corporate 220.9 74.1 23.1 14.8 - individuals 4.8 4.7 0.5 1.5 Rescheduled loans / Total gross loans 8.3% 2.9% 0.8% 0.6% -

  11. Slide 11: Net result affected by substantial provisions

    Net result affected by substantial provisions VTB Group performance Net result 38.6 41.4 42.1 1Q’09 2Q’09 3Q’09 13.6 7.2 RUB billion -9.5 -17.1 -18.6 -16.8 -11.0 -14.0 -29.8 -20.5 -49.2 -47.4 Core income Provisions Staff costs and Other items(1) Net result administrative expenses 122.1 92.9 9M’08 9M

  12. Slide 12: Improved funding structure with decreased reliance on state funding

    Improved funding structure with decreased reliance on state funding Total liabilities Liabilities structure Cost of total average interest bearing liabilities(1) Customer 49.7% 7.5% 7.3% 7.2% deposits 6.8% 6.8% 33.3% 5.5% 5.8% 5.3% 3,431 Other 15.1% 3,305 3,275 487 borrowed 3,054 25.7% funds 849 925

  13. Slide 13: Capital base strengthened with new Tier capital raised

    Capital base strengthened with new Tier 1 capital raised BIS Group capital 17.6% 15.8% 17.3% 15.5% 16.5% 19% 16.3% 14.0% 15.0% 16.1% 10.5% 9.9% 10.3% 14% 14.4% 12.7% 712 606 566 546 417 421 418 411 204 RUB billion 238 206 34 36 37 39 205 508 383 385 381 372 368 360 341 31-Dec-07 31-Mar-08 30-Jun-08

  14. Slide 14: Appendix

    Appendix

  15. Slide 15: Key financial indicators

    Unaudited figures Key financial indicators 9M'09 9M'08 3Q'09 2Q'09 1Q'09 3Q'08 FY'08 Net interest margin (1) 4.3% 4.8% 4.4% 4.3% 4.1% 4.9% 4.8% Cost to core income (CCIR)(2) 43.0% 50.7% 39.9% 44.9% 44.3% 50.6% 51.9% Return on equity (3) -14.6% 2.5% -12.5% -11.8% -21.2% -8.9% 1.3% Return on assets (3

  16. Slide 16: Income statement

    Unaudited figures Income statement RUR billion 9M'09 9M'08 % y-o-y 3Q'09 2Q'09 % q-o-q 3Q'08 % y-o-y Interest income 280.8 166.0 69.2% 92.2 94.6 -2.5% 62.7 47.0% Interest expense -173.4 -84.7 104.7% -55.1 -58.6 -6.0% -32.4 70.1% Net interest income 107.4 81.3 32.1% 37.1 36.0 3.1% 30.3 22.4% Provisio

  17. Slide 17: Balance sheet

    Unaudited figures Balance sheet RUB billion 30-Sep-09 30-Jun-09 Δ q-o-q % q-o-q 31-Dec-08 YTD Assets Cash and short-term funds 165.5 316.7 -151.2 -47.7% 416.1 -60.2% Mandatory cash balances with central banks 21.8 14.4 7.4 51.4% 7.6 186.8% Financial assets at fair value through profit or loss 277.2

  18. Slide 18: Balance sheet

    Unaudited figures Balance sheet RUB billion 30-Sep-09 30-Jun-09 % q-o-q 31-Dec-08 YTD Liabilities Due to other banks 262.1 275.4 -4.8% 388.7 -32.6% Customer deposits , of which 1,518.4 1,561.8 -2.8% 1,101.9 37.8% - corporate deposits 855.7 877.4 -2.5% 702.6 21.8% - retail deposits 430.2 415.2 3.6% 3

  19. Slide 19: Balance sheet structure

    Unaudited figures Balance sheet structure Breakdown of assets Breakdown of liabilities 100% 100% 100% 100% 100% 100% 100% 100% 12.4% 12.4% 14.2% 14.4% 20.2% 15.1% 25.7% 27.0% 7.0% 7.1% 6.9% 10.2% 11.3% 11.5% 9.6% 9.1% 11.6% 5.2% 6.4% 17.2% 15.8% 6.0% 17.4% 6.8% 5.7% 14.5% 16.9% 15.8% 69.1% 70.9% 69.

  20. Slide 20: Total gross loans

    Unaudited figures Total gross loans Breakdown of customer loans by type Breakdown of customer loans by type (as of Sep 30, 2009) (as of Dec 31, 2008) Finance 14% Finance 19% Individuals 15% Individuals 15% Building Building construction 14% construction 14% Trade and 7% Trade and 10% commerce commer

  21. Slide 21: Total securities

    Unaudited figures Total securities At fair value Repo + loaned Available-for- Held-to- 30-Sep-09 Total through P&L securities sale maturity Debt securities 191.8 16.7 16.0 32.7 257.2 - Russian 166.9 16.7 1.5 32.3 217.4 - Foreign 24.9 0.0 14.5 0.4 39.8 Equity securities 49.8 0.2 17.5 0.0 67.5 (1) Sec

  22. Slide 22: VTB Group public debt instruments issued in 2009

    VTB Group public debt instruments issued in 2009 Borrower Date of issue Amount (million) Instrument Maturity date/ Put or Coupon call option VTB24 February 2009 RUB 8,000 Domestic Ruble Bond February 2014 11.85% (1.5 year put option) VTB-Leasing June 2009 RUB 5,000 Domestic Ruble Bonds June 2016 14.

  23. Slide 23: VTB Group public debt instruments outstanding

    Unaudited figures VTB Group public debt instruments outstanding Maturity Date/Put or Call Borrower Amount (USD, mln)(1) Instrument Coupon Option 2009 VTB 400 Loans repayment/amortization During 2009 Subtotal 400 2010 VTB 750 Subordinated Debt Instrument (call option) February 2010 6.315% VTB 382 Ser

  24. Slide 24: VTB Group debt redemption profile

    Unaudited figures VTB Group debt redemption profile (1) 3,045 1,844 1,897 1,706 1,355 1,349 993 1,238 382 295 125 731 1,706 37 693 1,149 USD million 400 1,054 848 814 693 400 507 4Q '09 1H '10 2H '10 1H '11 2H '11 2012 2013 2015 USD RUB EUR GBP CHF (1) Exchange rates are as of December 14, 2009, CBR

  25. Slide 25: VTB24 loan portfolio – currency breakdown

    VTB24 loan portfolio – currency breakdown Mortgage loans Car loans 84.7% 81.4% 73.4% 76.6% 72.4% 71.6% 74.7% 67.9% 52.2% 52.6% 47.3% 45.0% 31.7% 27.9% 27.2% 26.2% 24.0% 22.4% 17.7% 14.5% 0.4% 0.3% 0.4% 0.4% 0.4% 2.4% 1.3% 1.0% 0.9% 0.8% 31-Dec-07 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09 31-Dec-07 31-

  26. Slide 26: VTB24 term deposits breakdown by currencies

    VTB24 term deposits breakdown by currencies 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Nov-08 Dec-08 Feb-09 Dec-07 Oct-08 May-08 May-09 Sep-08 Sep-09 Jan-09 Feb-08 Mar-09 Jan-08 Mar-08 Aug-08 Aug-09 Jun-09 Jun-08 Jul-09 Jul-08 Apr-08 Apr-09 RUB USD EUR Other 26 Source: VTB24 manageme

  27. Slide 27: Market leadership

    Market leadership Corporate loans market share & market position Corporate deposits market share & market position 13.6% 14.3% 13.6% 12.7% 12.9% 12.9% 11.4% 10.7% 10.2% 10.2% 2 2 2 2 2 2 2 2 2 2 2007 2008 1Q'09 2Q'09 3Q'09 2007 2008 1Q'09 2Q'09 3Q'09 Retail loans market share & market position Retai

  28. Slide 28: VTB Group branch network

    VTB Group branch network VTB Group branch network 30-Sep-09 30-Jun-09 Δ q-o-q 31-Mar-09 31-Dec-08 31-Dec-07 Branches 949 966 -17 980 1,020 932 Russia 653 661 -8 665 693 583 of which VTB24 476 481 -5 480 504 328 CIS & Europe 296 305 -9 315 327 349 Source: VTB Bank management accounts. 28 © VTB 2009

  29. Slide 29: Investor Relations

    Investor Relations Tel: +7 (495) 775-71-39 e-mail: [email protected] 29 © VTB 2009

VTB — 9M 2009 Earnings Presentation on 6ix