Vtb · RUS:VTBR
Vtb — VTB Bank — 9M 2018 Earnings Presentation
25 slides from Vtb's earnings presentation, Nov 8, 2018
Slide 1: 9M'2018 Results
9M’2018 Results November 8, 2018 Dmitry Pyanov Senior Vice President, Head of Finance Department Leonid Vakeyev Head of Investor Relations
Slide 2: Macro & Market Environment
MACRO & MARKET ENVIRONMENT Current Forecast Market growth Market growth indicators 2018 9M’2018 A 2018 F 9m 9m GDP, % Corporate 9-11 1.6 1.9 loans, % 8.6 Current estimation 9m 9m Oil price Retail (Urals, avg), $ 71 70 loans, % 16.4 21-22 Sep 18 / 9m Sep 17 CPI, % 3.4 4.2 Corporate 10.3 10-11 deposit
Slide 3: Good Progress in Delivering FY 2018 Results
GOOD PROGRESS IN DELIVERING FY 2018 RESULTS 9M’18 3Q’18 Tangible Net profit 139.7 RUB bn Net profit 41.2 RUB bn +86% YoY +137% YoY improvement of profitability ROE 12.9% ROE 11.2% +5.9 ppt YoY +6.4 ppt YoY 9M’18 3Q’18 Enhanced cost Cost / Income ratio 39.1% Cost / Income ratio 38.5% efficiency -6.7
Slide 4: 9M'18 Key Drivers of Net Profit Growth
9M’18 KEY DRIVERS OF NET PROFIT GROWTH 9M’17 9M’18 NIM NCM COR CIR ETR ROE 45.8% 25.3% 0.7% 1.6% 12.9% 4.1% 4.0% 0.7% 1.5% 7.0% 39.1% 22.5% 18% 9x 4% 50.9 -111.4 69.4 -6.6 4% 67.0 -118.2 -187.3 6% -185.0 - 478.9 404.2 343.7 358.6 86% -40.5 -0.1 -25.6 139.7 1% RUB bn 58% 75.3 Net interest Net fee and
Slide 5: Enhanced Cost Efficiency
ENHANCED COST EFFICIENCY 45.8% 39.1% Staff costs and administrative expenses RUB bn 2.0% 1.9% 48.8% 40.3% 41.3% 37.6% 38.5% +1% Cost / Income ratio 185.0 187.3 Cost / Avg. assets 1.9% 2.3% 2.0% 1.8% 1.8% 74.2 73.4 flat 75.9 62.4 63.1 61.6 62.6 Administrative 31.5 110.8 113.9 expenses 27.5 23.4 25.8
Slide 6: Business Growth
BUSINESS GROWTH Loans to legal entities RUB bn Loans to individuals RUB bn Banking sector growth: +5% +9% Banking sector growth: +7% +16% qoq ytd qoq ytd 8,306 +14% 7,307 7,354 7,458 ytd Post Bank contribution +1% +1% +11% 2,749 +15% 2,534 2,599 9M ytd 2,322 +2% 2,370 +5% 2,493 +7% 2,663 01-Jan-18 3
Slide 7: Proforma Effect of Post Bank Deconsolidation
PROFORMA EFFECT OF POST BANK DECONSOLIDATION Deposits of individuals RUB bn Loans to individuals RUB bn ROE % Post Bank accounted as JV Post Bank accounted as JV 14% 15% 3,920 13.0% 2,663 3,452 2,322 12.9% 01-Jan-18 30-Sep-18 01-Jan-18 30-Sep-18 9M'18 9M'18 As reported Post Bank accounted as JV NIM
Slide 8: FY'2018 Guidance
FY’2018 GUIDANCE Loans Loans 2018 to legal entities to individuals CIR CoR NIM Net profit Initial growth growth guidance market growth market growth 40 % 1.5 % 4% 170 RUB bn market market Actual 9M’18 14% 9% 15%* 16% 39.1 % 1.5 % 4.0 % 140 RUB bn * Post Bank accounted as JV. Updated growth growth gu
Slide 9: 9M'2018 Financial Appendix
=VTB 9M’2018 FINANCIAL APPENDIX
Slide 10: Interest Income and Average Yields
INTEREST INCOME AND AVERAGE YIELDS Interest income and average yields RUB bn 10.3% 10.1% 10.0% 9.2% Yield on customer loans 9.4% 9.3% 9.0% 9.5% Yield on total interest bearing 9.3% 9.1% 8.6% assets 8.7% 8.7% 8.4% -4% -2% 795.2 764.6 8% 8% Interest income on other interest bearing 265.3 261.0 248.2 2
Slide 11: Interest Expense and Cost of Funds
INTEREST EXPENSE AND COST OF FUNDS Interest expense and cost of interest bearing liabilities RUB bn 5.6% 5.8% 5.3% 4.9% 4.8% 4.8% 4.8% Cost of total interest bearing 5.4% liabilities 5.1% 4.9% 4.7% 4.6% 4.6% Cost of customer deposits 4.5% -10% -5% 451.5 406.0 26% Interest expense on 19% other intere
Slide 12: Net Interest Income and NIM
NET INTEREST INCOME AND NIM Net interest income RUB bn +4% 358.6 343.7 +3% 116.6 116.5 116.3 121.8 120.5 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 9M'17 9M'18 Net interest margin(1) -10 bp -20 bp 4.1% 4.1% 4.1% 4.2% 4.1% 4.0% 3.9% 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 9M'17 9M'18 (1) Calculated as net interest income (
Slide 13: Fee and Commission Income
FEE AND COMMISSION INCOME Fee and commission income breakdown RUB bn Other +9% Insurance products distribution and +7% other agency services 101.6 93.1 4% Operations with securities and on 36.5 35.0 35.6 3% 14% capital markets 33.3 5% 31.0 15% 6% 3% 5% 4% 12% 8% 9% Guarantees and other credit 5% 15%
Slide 14: Provision Charge and Cost of Risk
PROVISION CHARGE AND COST OF RISK Provision charge for impairment of loans RUB bn 2.2% 1.6% Cost of risk (1) 1.8% 1.5% 1.5% 1.5% 0.9% 115.1 113.6 Provision charge 53.9 35.6 for credit losses on loans 41.1 to individuals 42.7 14.5 38.9 36.4 8.9 9.9 20.8 14.6 79.5 72.5 Provision charge 33.8 39.4 26.5
Slide 15: Gross Loan Portfolio Breakdown under IFRS 9
GROSS LOAN PORTFOLIO BREAKDOWN UNDER IFRS 9 Provision charge Loans at amortised cost RUB bn By measurement by ECL stages by ECL stages approach RUB bn Post Bank accounted as JV ( X ) 113.6 10,645 2% 2% Loans at amortised cost Stage 1: 4.1% Loans at fair value through P&L 12 month ECL Loans at fair v
Slide 16: Loan Book Quality
LOAN BOOK QUALITY Provision for loan impairment RUB bn NPLs (90+) RUB bn NPL ratio(1) Allowance for loan impairment / Post Bank contribution Total gross loans NPLs Post Bank contribution Allowance for loan impairment Data as 7.5% 7.5% 7.7% Data as 7.6% 7.0% 6.9% 7.1% 6.9% reported reported 7.2% 7.3%
Slide 17: Loan Portfolio and Customer Deposits
LOAN PORTFOLIO AND CUSTOMER DEPOSITS Customer deposits / Loans and advances to customers RUB bn Customer deposits RUB bn total liabilities Post Bank accounted as JV( X ) Post Bank accounted as JV( X ) 104.7% 79% 80% 80% Data as 99.6% 98.7% 95.7% 77% reported Loans / Deposits (LDR) 104.7% 99.6% 98.8%
Slide 18: Business with Legal Entities
BUSINESS WITH LEGAL ENTITIES Loans to legal entities RUB bn Deposits of legal entities RUB bn +14% Current / settlement deposits Term deposits +5% +11% 8,306 +1% 7,354 7,458 7,307 5,523 5,514 5,775 5 ,820 19% 20% 25% 24% 75% 76% 81% 80% 01-Jan-18 31-Mar-18 30-Jun-18 30-Sep-18 01-Jan-18 31-Mar-18 30-
Slide 19: Business with Individuals
BUSINESS WITH INDIVIDUALS Loans to individuals RUB bn Deposits of individuals RUB bn Post Bank accounted as JV ( X ) Post Bank accounted as JV ( X ) +5% +8% +14% +15% -3% +2% -3% +7% 4,064 3,834 3,452 3,819 3,613 3,920 3,622 2,749 2,493 2,663 26% 2,534 2,322 2,599 2,370 25% 25% 24% 23% 25% 26% 43% 4
Slide 20: Asset Structure
ASSET STRUCTURE Assets structure RUB bn Assets by currency % +9% +1% +4% +3% 69% 13,683 14,068 12,947 13,109 7% 6% 7% 5% 4% 4% 4% 5% 4% 32% 6% 6% 7% 31% 69% 72% 70% 70% 68% 13% 13% 14% 14% 01-Jan-18 31-Mar-18 30-Jun-18 30-Sep-18 01-Jan-18 30-Sep-18 FX RUB FX RUB Cash and mandatory reserves Loans to
Slide 21: Liabilities and Capital Structure
LIABILITIES AND CAPITAL STRUCTURE Liabilities structure RUB bn Liabilities by currency % 67% 30-Sep-18 FX RUB +9% 36% 01-Jan-18 FX RUB +1% +5% +3% 64% 33% 12,244 12,605 11,529 11,640 9% 13% 10% 9% <1% 3% <1% <1% Basel capital RUB bn 80% 80% 79% 77% 14.4% 14.5% 13.9% Total CAR 13.4% Tier I ratio 6% 7
Slide 22: VTB Group Financial Highlights: P&L and Key Ratios
VTB GROUP FINANCIAL HIGHLIGHTS: P&L AND KEY RATIOS Income statement key indicators RUB bn 9М’18 9М’17 Change 3Q’18 3Q’17 Change Net interest income 358.6 343.7 4.3% 120.5 116.6 3.3% Net fee and commission income 69.4 67.0 3.6% 23.3 23.9 -2.5% Net other income 50.9 (6.5) -883.1% 18.8 (12.7) -248.0% O
Slide 23: VTB Group Financial Highlights: Balance Sheet
VTB GROUP FINANCIAL HIGHLIGHTS: BALANCE SHEET Balance sheet key indicators RUB bn 01-Jan-18 30-Sep-18 30-Jun-18 QoQ YTD IFRS 9 Gross loan portfolio 10,968.8 10,206.2 7.5% 9,841.1 11.5% Loans to legal entities 8,305.7 7,457.6 11.4% 7,307.4 13.7% Loans to individuals 2,663.1 2,748.6 -3.1% 2,533.7 5.1%
Slide 24: Disclaimer
DISCLAIMER This presentation has been prepared by VTB Bank (PJSC) (“VTB”) and has not been independently verified. This presentation does not constitute or form part or all of, and should not be construed as, any offer of, or any invitation to sell or issue, or any solicitation of any offer to purch
Slide 25: Investor Relations
Investor Relations Tel: +7 (495) 775-71-39 e-mail: [email protected]