Vtb · RUS:VTBR

Vtb — 9M 2011 Earnings Presentation

25 slides from Vtb's earnings presentation, Dec 8, 2011

  1. Slide 1: VTB Group 9M'2011 Results

    VTB Group 9M’2011 Results Herbert Moos CFO, Deputy Chairman of the Management Board Jyrki Talvitie Senior Vice President, Head of Investor Relations December 08, 2011 1 © VTB 2011

  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 Bank ("VTB") and its subsidiaries (together with VTB, the "Group"). Such forward-looking statements are based on numerous as

  3. Slide 3: VTB Group 9M'2011 Highlights

    VTB Group 9M’2011 Highlights ■ Solid net profit in 9M’2011 − RUB 72.6 bn with ROE (w/o BoM) at 16.2% ■ Corporate Investment Banking and Retail Banking post a solid 9M’2011 pre-tax profit of RUB 69.9 bn and RUB 28.1 bn, respectively ■ Operating income before provisions up 31% y-o-y to RUB 209.9 bn ■

  4. Slide 4: VTB Group 9M'2011 Financial Highlights

    VTB Group 9M’2011 Financial Highlights (in RUB bn) 9M'11 9M'10 y-o-y Operating income before provisions 209.9 160.7 30.6% (1) Provisions for impairment (25.9) (42.3) -38.8% Staff costs and administrative expenses (90.8) (68.0) 33.5% Net profit 72.6 38.8 87.1% Net interest margin (w/o BoM) 4.8% 5.2%

  5. Slide 5: Segment Update

    Segment Update 5 © VTB 2011

  6. Slide 6: Segment Analysis

    Segment Analysis Corporate and Investment Banking Loans & Transaction Retail Banking IB Deposits Banking Total CIB (1) (in RUB bn) 9M'11 9M'11 9M'10 y-o-y 9M'11 9M'10 y-o-y Net interest income (2) 11.5 80.5 9.3 101.3 87.7 15.5% 54.0 39.1 38.1% Net fee and commission income 4.1 2.5 8.3 14.8 9.2 60.9%

  7. Slide 7: CIB Subsegment – Loans and Deposits

    CIB Subsegment – Loans and Deposits Segment Data - Customer Loans Market Shares in Russia 23.1% +52% 15.0% 20.0% 3,100.4 12.8% 2,037.3 12.0% 12.0% (RUB bn) 30-Jun- 31-Dec-10 30-Sep-11 % Corporate loan market % Corporate deposit 31-Dec-10 30-Sep-11 share(1) market share in Russia Segment Data - Custo

  8. Slide 8: CIB Subsegment – Investment Banking

    CIB Subsegment – Investment Banking VTB Capital League Tables September 2011 Key Developments in 9M’11 Russia and CIS related international DCM # Lead Manager Amount, $ mln # of deals Share, %  Financial Industry Regulatory Authority has granted 1 VTB Capital 4,398 18 15.4% VTB Capital Inc. (USA) a

  9. Slide 9: Retail Banking in Russia

    Retail Banking in Russia Segment Data - Loans to Individuals Market Shares in Russia 14.1% 10.7% 12.2% +41% 9.3% 784.9 6.1% 7.2% 556.2 (RUB bn) 30-Jun-10 31-Dec-10 30-Sep-11 % Retail loan market % Retail deposit market 31-Dec-10 30-Sep-11 share in Russia share in Russia + Key developments in Retail

  10. Slide 10: Financial Update

    Financial Update 10 © VTB 2011

  11. Slide 11: Solid Operating Income and Robust Net Interest Margin

    Solid Operating Income and Robust Net Interest Margin Operating Income before Provisions, q-o-q y-o-y +3% +31% -29% 209.9 72.9 80.1 56.9 160.7 27.1 55.3 60.4 8.0 9.9 11.0 9.2 +52% 24.6 6.0 6.9 9.7 4.0 17.8 5.1 6.8 9.6 7.9 1.3 5.2 5.6 +339% 59.4 54.2 (RUB bn) 45.6 +23% 42.9 41.5 159.2 129.4 (RUB bn)

  12. Slide 12: Costs Remain under Control

    Costs Remain under Control Staff and Administrative Expenses, q-o-q y-o-y -2% +34% -31% 42.3% 43.3% 43.6% 44.9% 45.3% 42.8% 41.3% 90.8 33.0 34.3 24.1 27.1 68.0 13.1 14.9 23.5 42.6 13.7 31.0 (RUB bn) (RUB bn) 10.9 14.6 19.9 19.4 48.2 13.2 13.4 37.0 8.9 3Q’10 4Q’10 1Q’11 2Q’11 3Q’11 9M’10 9M’11 Staff

  13. Slide 13: Asset Quality Improving

    Asset Quality Improving Quarterly P&L Provision Charge (1) (y-o-y) y-o-y - 39% - 37% 2.0% 1.8% 1.0% 1.4% 1.1% 1.2% 0.9% 40.3 25.3 (RUB bn) (RUB bn) 13.1 11.3 7.7 9.6 8.0 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11 9M'10 9M'11 Provision charge for loan impairment/ Average gross loan portfolio Provision charge for

  14. Slide 14: Healthy Balance Sheet Boosted by Bank of Moscow Acquisition

    Healthy Balance Sheet Boosted by Bank of Moscow Acquisition Assets Structure Net Interest Spread (w/o BoM), y-o-y Average cost of interest bearing liabilities 6,337 Net interest spread Average yield on interest earning assets 6% Cash and mandatory 9.8% 9.3% 8.9% 9.0% 9.0% 13% reserves 4,720 4,291 4,

  15. Slide 15: Tier I Development in 3Q'11 and YE'11 Forecast

    Tier I Development in 3Q’11 and YE’11 Forecast 2Q’11 3Q’11 4Q’11* Tier I Capital (RUB bn) 614 586 +8 +20 BoM: -81 ≈540 Other: -21 512 Before Before Net profit Other (1) Goodwill deductions deductions 2Q’11 3Q’11 4Q’11* RWA (RUB bn) 5,578 ≈5,500 4,721 +341 +516 BoM input Organic growth 2Q’11 3Q’11 4Q

  16. Slide 16: M&A Update

    M&A Update 16 © VTB 2011

  17. Slide 17: Update on Bank of Moscow

    Update on Bank of Moscow Key Developments Goodwill Calculation  VTB Group increased its ownership to 80.57% in BoM (in RUB bn) on Sep 29, 11 – BoM was consolidated in 9M’11 financial Consideration paid 50.2 statements of VTB Group with full balance sheet Non-controlling interests (proportionate sha

  18. Slide 18: Bank of Moscow Development Strategy for 2011-2014

    Bank of Moscow Development Strategy for 2011-2014 BoM will be developed as an independent universal commercial bank within VTB Group  Focus on business development in Moscow and  Focus on independent business development with Moscow region small and medium-sized enterprises  Further development o

  19. Slide 19: Update on TransCreditBank

    Update on TransCreditBank Key Development in 3Q’11 TCB Acquisition Price (for 74.48% stake)  In July and August 2011, VTB Group increased Total price paid RUB 38.3 bn its ownership share in TCB from 43.18% to 74.48% by purchasing 29.39% stake from Russian Railways and 1.91% stake from the BV (as of

  20. Slide 20: Cost Optimisation Program

    Cost Optimisation Program 20 © VTB 2011

  21. Slide 21: VTB Group Cost Management Strategy for 2012-2014

    VTB Group Cost Management Strategy for 2012-2014 Targeted Ratios Sources of Cost Savings 43% 45% 42% 41% Supplier and 23% 28% 28% 28% procurement process 10% management 20% Premises and 20% 17% 40% 14% 13% equipment management 30% Outsourcing of selected services 9M'11 FY'12 FY'13 FY'14 Labour autom

  22. Slide 22: Appendix

    Appendix 22 © VTB 2011

  23. Slide 23: VTB Group 9M'2011 Financial Highlights

    VTB Group 9M’2011 Financial Highlights (in RUB bn) 9M'11 9M'10 y-o-y 3Q'11 3Q'10 y-o-y 2Q'11 1Q'11 3Q'11/2Q'11 Net interest income before provisions (1) 159.2 129.4 23.0% 54.2 42.9 26.3% 59.4 45.6 -8.8% Net fee and commission income 27.1 17.8 52.2% 9.2 6.0 53.3% 9.9 8.0 -7.1% Net result from financi

  24. Slide 24: VTB Group Public Debt Instruments

    VTB Group Public Debt Instruments (1) VTB Group Public Debt Instruments Outstanding Bank of Moscow Public Debt Instruments Outstanding Equivalent Maturity Equivalent Maturity Borrower amount Instrument Date/Put or Coupon Borrower amount Instrument Date/Put or Coupon (USD, mn) Call Option (USD, mn) C

  25. Slide 25: VTB Group International Public Debt Instruments Issued in 2010-2011

    VTB Group International Public Debt Instruments Issued in 2010-2011 Borrower Date of issue Amount (mln) Instrument Maturity date Coupon/rate VTB March 2010 USD 1,250 Series 7 EMTN 2 March 2015 6.465% VTB August 2010 SGD 400 Series 8 EMTN 2 August 2012 4.2% VTB August 2010 CHF 400 Series 9 EMTN 2 Aug

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