Vtb · RUS:VTBR
Vtb — VTB Bank — H1 2018 Earnings Presentation
28 slides from Vtb's earnings presentation, Aug 9, 2018
Slide 1: 1H'2018 Results
=VTB 1H'2018 Results August 9, 2018
Slide 2: 1H'2018 Executive Summary
=VTB 1H’2018 EXECUTIVE SUMMARY
Slide 3: Macro & Market Environment
MACRO & MARKET ENVIRONMENT FY'2018 Updated forecast FY'2018 Current Initial forecast indicators (as of Feb. 26, 2018) GDPR% § 9 Oil price i : 4 i (Urals, avg), $ 3, 60 foot CPI, % i 4.0 CBR key rate i p i (eop),% OF 7.25 (1) Source: GDP, oil price- Ministry of Economic Development, CPl~ Rosstat, mar
Slide 4: Key Highlights
KEY HIGHLIGHTS =VTB What we delivered in 1H’18 _~@ Solid profitability ROE 13.7% (+550 bp YoY) Net profit 98.5 RUB bn (+70.1% YoY) Operating income 316.3 RUB bn (+14.4% YoY) e Business growth Total loans 10,206 RUB bn (+3.7% YTD) Total deposits 9,839 RUB bn (+7.6% YTD) Business mix further improved
Slide 5: 6.2 32.1 -76.0 -69.0 43.1 46.1 -122.6 -124.7 316.3 276.4 .1 227.1 -19.9 -24.1
6.2 32.1 -76.0 -69.0 43.1 46.1 -122.6 -124.7 316.3 276.4 238.1 227.1 -19.9 -24.1 98.5 57.9
Slide 6: Business Growth
BUSINESS GROWTH Loans to legal entities 8U85" (42%) a / _ +1% +1% 7,307 7,354 7,458 ALAL 01-Jan-18 31-Mar-18 30-Jun-18 Deposits of legal entities 8U8 5" a (45%) 7 a flat 15% 5,514 5,775 @ Current / settlement deposits Term deposits 01-Jan-18 31-Mar-18 30-Jun-18 =VTB Loans to individuals 8¥8 >" 48%)
Slide 7: Strong Balance Sheet
STRONG BALANCE SHEET Total liabilities 8U8 >" 99.6% 98.7% 95.7% . . el =@= Loans / Deposits _ 6% . (oR) Pan +1% 11,529 01-Jan-18 31-Mar-18 30-Jun-18 i Customer funding from individuals @ Customer funding from legal entities NPLs and coverage ratio Pre-IFRS9 =; Post-IFRS9 107.7% : 107.9% 105.8% t i —
Slide 8: Enhanced Cost Efficiency and Synergy
ENHANCED COST EFFICIENCY AND SYNERGY Staff costs and administrative expenses RUB bn —O cir 1H'17 1H'18 HH Administrative expenses @ Staff costs, including pensions. =VTB Synergies from intragroup reorganisation VTB24 VTB Europe Bank of Moscow Realised 1H 2018 effect Expected FY 2018 effect Expected
Slide 9: 2018 Guidance
2018 GUIDANCE Ab ie Sy Al Business Balance sheet Costs & Profitability growth strengths provisions Loans to legal entities LDR CIR NIM ct Vgomh a, <100 % = 40% 24% Loans to individuals NPL coverage CoR Net profit LX Mego >100 % >1.5.% = 170 RUB bn =VTB 1H’2018 Results | 09-Aug-18
Slide 10: 1H'2018 Financials
=VTB 1H’2018 FINANCIALS
Slide 11: Interest Income and Average Yields
INTEREST INCOME AND AVERAGE YIELDS Interest income and average yields ®U8>" 10.2% 10.1% 10.0% 10.4% ° . . 9.4% 9.3% so” . . .— a . . —_—___=: 9.5% 93% 90.4% ° ° 9.6% ° : 8.7% 8.7% 8.7% 262.4 265.3 261.0 8% 8% 8% 92% 92% 2917 317 4017 10118 29'18 117 1H18 Average interest bearing assets PU8 5 _ a (45
Slide 12: Interest Expense and Cost of Funds
INTEREST EXPENSE AND COST OF FUNDS Interest expense and cost of interest bearing liabilities 8¥8" 5.7% 5.6% . ; 5.3% 4.9% 4.8% eC —_, ° . ° e e e 5.5% 5.1% 4.9% 4.7% 4.6% i — {10% = ee —~ 148.3 148.7 144.5 131.9 133.4 23% 24% 19% W% 76% 78% 81% 83% 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 Average interest bear
Slide 13: Net Interest Income and NIM
NET INTEREST INCOME AND NIM Net interest income ®U2 5" (5%) a nN _ 2A 238.1 ee — 7 ——~\ 144 116.6 116.5 116.3 121.8 2Q'17 3Q'17 4Q‘17 1Q'18 2Q'18 41H'17 41H'18 Net interest margin (10 bp a _Grat a : —S\ ans 41% 41% 41% 41% 4.2% 41% 41% e e e e ° e e 2Q'17 3Q'17 4Q'17 1918 2918 aH 1H8 (1) Caleulated.
Slide 14: Fee and Commission Income
FEE AND COMMISSION INCOME Fee and commission income breakdown 8U8bn other 66.0 jm _[Rsurance products distribution and 59.8 other agency services a Operations with securities and on 36.5 320 333 35.0 “ 31.0 8% capital markets 7 og Guarantees and other credit 03 10% — ie — | = J HE related commitment
Slide 15: Staff and Administrative Expenses
STAFF AND ADMINISTRATIVE EXPENSES Staff costs and administrative expenses U8 bn 44.8% 39.4% —<$<———— © 46.5% 48.8% a : “ 40.5% 4 os 37.6% . be -@— Cost/ Income ratio . e e es e e 2.0% 1.9% 2.3% 2.0% 1.8% “O— Cost/ Avg. assets 75.9 61.0 62.4 63.1 61.6 31.5 Administrative 27.5 ae 25.8 = expenses: 44.4
Slide 16: Provision Charge and Cost of Risk
PROVISION CHARGE AND COST OF RISK Provision charge for impairment of loans U8 5" 1.6% 1.6% .—_—_—_—_-. 2.2% 1.8% ey 747 1.5% . 1.2% ng 0. % 72.4 OH Cost of sk(” e —__? ° 53.9 42.7 36.4 Provision charge 29.0 8.9 for credit losses on loans 9.9 to individuals 10.9 33.8 18.1 a Provision charge P| For cr
Slide 17: Gross Loan Portfolio Breakdown under IFRS 9
GROSS LOAN PORTFOLIO BREAKDOWN UNDER IFRS 9 +1% +3%
Slide 18: Loan Book Quality
LOAN BOOK QUALITY Provision for loan impairment RU8>" Pre-IFRS9 : Post-IFRS 9 7.5% 7.5% 7.7% 7.7% o—— e-—_—_ e -- 6.6% 6.6% 6.2% . @— Allowance for loan impairment / Total gross loans IE Allowance for loan impairment 632 734 745 790 786 633 601 31-Mar-18 30-Jun-18 30-Jun-18 31-Dec-17 } Ot-lan-18 act
Slide 19: Loan Portfolio and Customer Deposits
LOAN PORTFOLIO AND CUSTOMER DEPOSITS Loans and advances to customers U8 bn Pre-IFRS 9: Post-IFRS 9 me 2 10038 nen 7 s578 i aa @ Loans / Deposits (LDR) i 41% 43% 9,516 9,627 9,773 : 9,841 9,953 10,206 30-Jun-17 30-Sep-17 31-Dec-17 01-Jan-18 31-Mar-18 30-Jun-18 Loans and advances to customers by indus
Slide 20: Business with Legal Entities
BUSINESS WITH LEGAL ENTITIES Loans to legal entities 8U8" Pre-IFRS9 : Post-IFRS9 a : (42% _{ +2% - ON +1% +1% 7,200 7,287 7,307 7,354 7,458 30-Jun-17 30-Sep-17 31-Dec-17 = 01-Jan-18 31-Mar-18. 30-Jun-18 Yield on loans and cost of deposits =@-— Yield on loans to LE =@— Cost of deposits of LE 8.9% 8.7
Slide 21: Business with Individuals
BUSINESS WITH INDIVIDUALS Loans to individuals ®U8 5" Pre-IFRS9 i PostFRS 9 2322 2,426 2,486: 2,534 30-Jun-17 30-Sep-17 31-Dec-17 i 01-Jan-18 31-Mar-18 Cash loans and other Car loans Credit cards HE Mortgage loans Yield on loans and cost of deposits —@— Yield on loans to individuals =@— Cost of depo
Slide 22: Asset Structure
ASSET STRUCTURE Assets structure 8U8 bn Assets by currency * Pre-IFRS 9 : Post-IFRS 9 13,009 ; Ot-lan18 30-Jun-18 30-Jun-17 30-Sep-17 31-Dec-17 = O1-Jan-18 31-Mar-18 30-Jun-18 . ™ FX Mi RUB Mm FX MP RUB 1 Cash and mandatory reserves HE Loans to customers HH Securities portfolio Other assets Due from
Slide 23: Liabilities Structure
LIABILITIES STRUCTURE Liabilities structure 8U8 >" Pre-lIFRS9 : Post-IFRS 9 11,530 11,529 11,177 11,444 30-Jun-17 30-Sep-17 31-Dec-17 31-Mar-18 I Due to banksand other borrowed funds == gj Other liabilities Mi Collateralised funding from the CBR Debt securities issued HE Customer deposits © Subordin
Slide 24: Capital Structure
CAPITAL STRUCTURE Basel capital ®U8 >" Pre-IFRS9 : Post-IFRS 9 14.6% 14.5% 14.8% 14.4% 14.5% ——-————* ——_- 13.9% . —__, eo . ° . . . Total CAR 13.1% 12.9% 13.1% 12.6% wy : 12.2% —@ Tier ratio (aan _——{ #1% )—— Va aN +3% 2% 1,454 1,472 1,514 1,466 1,515 1,487 157 170 182 181 1,315 1,345 1,283 1,334 @
Slide 25: VTB Group Financial Highlights: P&L and Key Ratios
VTB GROUP FINANCIAL HIGHLIGHTS: P&L AND KEY RATIOS Income statement key indicators ®U8 5" Net interest income 238.1 Net fee and commission income 46.1 Net other income 32.1 Operating income before provisions 316.3 Provision charge for credit losses and other provisions (69.0) Staff costs and adminis
Slide 26: VTB Group Financial Highlights: Balance Sheet
VTB GROUP FINANCIAL HIGHLIGHTS: BALANCE SHEET Balance sheet key indicators ®U8" 01-Jan-18 Gross loan portfolio 10,206.2 9,952.8 2.5% 9,841.1 3.7% Loans to legal entities 7,457.6 7,353.5 1.4% 7,307.4 2.1% Loans to individuals 2,748.6 2,599.3 5.7% 2,533.7 8.5% Total assets 13,683.3 13,109.4 44% 12,947
Slide 27: 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 28: Investor Relations
=VTB Investor Relations Tel: +7 (495) 775-71-39 e-mail: [email protected]