Vtb · RUS:VTBR
Vtb — H1 2012 Earnings Presentation
21 slides from Vtb's earnings presentation, Sep 20, 2012
Slide 1: VTB Group 1H’2012 Results
VTB Group 1H’2012 Results Herbert Moos CFO, Deputy Chairman of the Management Board Jyrki Talvitie SVP, Head of Financial Institutions and Investor Relations 1 September 20,© 2012 VTB 2011
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
Slide 3: VTB Group 1H’2012 Financial Highlights
VTB Group 1H’2012 Financial Highlights ■ Net profit at RUB 33.6 bn with annualised ROE of 11% ■ The Group’s core business segments, Retail Banking and CIB, posted a profit before tax of RUB 21.5 bn and RUB 26.8 bn, versus RUB 17.8 bn and RUB 56.8 bn in 1H’2011, respectively ■ Net interest income rea
Slide 4: Hybrid Tier I Perpetual Bond
Hybrid Tier I Perpetual Bond In July 2012, VTB Bank issued USD 1 bn 9.5% Hybrid Tier I Perpetual Bond This pioneering transaction represents the first ever Tier 1 capital qualifying Eurobond out of Russia and incorporates an innovative structure designed to maximise impact under all key capital reco
Slide 5: VTB Group 1H’2012 Financial Highlights – Results by Segment
VTB Group 1H’2012 Financial Highlights – Results by Segment Corporate-Investment Business Investment Banking core revenue Loans & Deposits PBT Transaction banking PBT -47% -43% +48% 27.4 8.6 (RUB bn) 15.5 5.8 (RUB bn) (RUB bn) 24.0 19.4 12.8 12.7 (9.6) (6.9) (10.8) 1H'11 1H'12 1H'11 1H'12 1H'11 1H'1
Slide 6: Securities Portfolio
Securities Portfolio (in RUB bn) 31-Mar-12 30-Jun-12 17-Sep-12 Equity securities 265 247 n/a Principal book gross delta 133 101 67 VaR (1) 2.9 2.0 1.5 Focus on substantial reduction of equity exposure risk level and size Source: management estimates, not audited or reviewed by the auditors. (in RUB
Slide 7: Performance of Loans and Deposits Subsegment – Financial Result
Performance of Loans and Deposits Subsegment – Financial Result Loans & Deposits Operating Income Loans and Deposits Profit Before Taxation 1H’2011 1H’2012 1H’2011 1H’2012 58.7 60.7 58.7 60.7 50.2 50.2 44.4 40.2 (14.3) (20.5) 27.4 15.4 14.9 (18.5) (5.6) 15.5 (RUB bn) (RUB bn) (24.7) Operating Provis
Slide 8: Performance of Corporate and Investment Banking
Performance of Corporate and Investment Banking Loans & Deposits Corporate Loan Portfolio Corporate Liabilities Term deposits -2% Current accounts -13% 3,661 3,766 3,690 3,696 2,472 2,435 2,143 2,123 2,668 1,772 597 649 740 676 541 (RUB bn) (RUB bn) 1,875 1,787 1,232 1,403 1,447 30-Jun-11 30-Sep-11
Slide 9: Performance of Corporate and Investment Banking – IB and GTB
Performance of Corporate and Investment Banking IB and GTB Investment Banking – Key Developments in 2Q’12 GTB – Key Developments in 2Q’12 Global Banking GTB net fee and commission income DCM: Clear leadership maintained with16 transactions closed in 2Q’12 M&A: Key deals sale of minority stake in E
Slide 10: Retail Banking – Robust Growth
Retail Banking – Robust Growth Retail Loan Portfolio Retail Deposits Average Yield and Cost of Funds Mortgage loans Car loans Term deposits +13% Consumer loans & other +15% Current accounts 1,315 950 1,161 1,190 861 1,079 824 265 763 255 242 862 198 609 529 439 470 160 412 329 87 1,050 76 79 881 907
Slide 11: Retail Banking – Solid Performance
Retail Banking – Solid Performance Operating Income Before Provisions Profit Before Taxation 1H’2011 1H’2012 1H’2011 1H’2012 +49% +68% +52% +300% +21% 67.9 67.9 52.0 56.3 44.6 44.6 (11.6) 41.7 34.9 (2.9) (RUB bn) (RUB bn) 21.5 17.8 13.8 8.2 (23.9)(34.8) 1.5 2.1 Operating Provision Operating Staff co
Slide 12: Financial Update
Financial Update — SVB
Slide 13: Operating Income and NIM
Operating Income and NIM Operating Income before Provisions (1) Net Interest Margin (3) +6% - 80 bps Net fee and 162.3 commission income 4.8% 153.0 17.9 21.8 4.0% Net interest income before provisions 95.1 112.4 Net result from financial instruments (2) (RUB bn) 20.9 5.0 Other operating income 19.1
Slide 14: Staff and Administrative Expenses
Staff and Administrative Expenses Staff Costs and Administrative Expenses 66.1% 66.7% 53.7% 44.0% 42.8% 44.5% 41.3% 87.1 67.3 50.7 40.2 42.5 44.6 34.3 28.0 24.3 20.4 23.5 (RUB bn) 19.8 (RUB bn) 14.9 39.3 46.9 14.6 26.4 24.2 19.4 22.7 8.9 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 1H'11 1H'12 Staff costs (1) Admi
Slide 15: Asset Quality
Asset Quality Сost of risk down 70 bps q-o-q to 1.0% … … up 30 bps in 1H’12 y-o-y to 1.4%… 1.4% 1.7% 1.1% Provision charge for 1.2% 0.9% 1.0% loan impairment / 0.5% Average gross loan portfolio 20.4 32.3 Provision charge 11.9 for impairment of 17.3 (RUB bn) 9.6 (RUB bn) 8.0 debt financial assets 6.3
Slide 16: Healthy Balance Sheet Structure
Healthy Balance Sheet Structure Assets Structure Net Interest Spread 10.1% 6,790 6,858 6,451 9.3% 6,335 Cash and mandatory 9.0% 9.0% 9.0% 7% 6% 6% reserves 6% 14% 15% 13% 12% Securities 9.0% 4,720 6% 6% 3.9% 4.2% 6% 6% portfolio (1) 6% 13% Due from other 6% banks 5.1% 5.1% 65% 63% 66% 63% 4.3% 4.4%
Slide 17: BIS Group Capital
BIS Group Capital Tier I Development flat +8% 5,773 + 16 514 5,364 513 -1 - 14 (RUB bn) (RUB bn) Tier I before Treasury Retained Other Total Tier I deductions shares earnings capital RWAs RWAs 1Q’12 2Q’12 1Q’12 2Q’12 BIS Group Capital 13.1% 13.7% 13.3% 14.1% 13.0% 12.8% Total CAR +60 bps 12.0% 9.6%
Slide 18: BoM and TCB – 1H’12 Highlights
BoM and TCB – 1H’12 Highlights Bank of Moscow TransCreditBank ■ Distribution network 296 offices ■ Distribution network 285 offices Profile with 46% in Moscow and Moscow region with 5% in Moscow and Moscow region ■ c.9 mln retail customers ■ c.2.3 mln retail customers ■ c. 200 thsd corporate custome
Slide 19: Appendix
Appendix 19 © VTB 2012
Slide 20: VTB Group Public Debt Instruments
VTB Group Public Debt Instruments VTB Group Public Debt Instruments Outstanding (1) VTB Group Public Debt Instruments Outstanding Equivalent amount Maturity Date/Put 2017 Borrower Instrument Coupon VTB 2,000 Series 15 EMTN2 Apr-17 6.00% (USD, mn) or Call Option 2012 Bank of 400 Subordinated debt May
Slide 21: VTB Group International Public Debt Instruments Issued in 2011-2012
VTB Group International Public Debt Instruments Issued in 2011-2012 Borrower Date of issue Amount (mn) Instrument Maturity date Coupon / rate VTB February 2011 USD 750 Series 12 EMTN 2 February 2018 6.315% VTB June 2011 SGD 300 Series 13 EMTN 2 June 2014 3.4% VTB July 2011 USD 3,130 Syndicated loan