Vtb · RUS:VTBR
Vtb — H1 2007 Earnings Presentation
29 slides from Vtb's earnings presentation, Sep 27, 2007
Slide 1: 1H 2007 Results
1H 2007 Results Nikolai Tsekhomsky Chief Financial Officer, Member of the Board 27 September 2007 Slide 1 © VTB 2007
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
Slide 3: 1H 2007 Highlights
1H 2007 Highlights Operational Results Financial Results Risk & Capital Management Subsequent Events Appendix Slide 3 © VTB 2007
Slide 4: 1H 2007 Highlights
1H 2007 Highlights • Total assets grew by 26.4% up to US$ 66.2bn • Net loan portfolio increased by 22.0% up to US$ 35.7bn Growth • Customer deposits grew by 25.5% to US$ 25.1bn Growth • Total equity increased by 2.2x to US$ 15.2bn • Net interest and commission income increased by 33.1% to US$ 1.3bn
Slide 5: Operational Results
1H 2007 Highlights Operational Results Financial Results Risk & Capital Management Subsequent Events Appendix Slide 5 © VTB 2007
Slide 6: Outstanding Growth of Retail Banking
Outstanding Growth of Retail Banking Retail Lending Portfolio (gross) Retail Loans to Retail Deposits US$ million + 62.1% 4,106 3,027 2,533 + 35.6% 46.3% 34.6% 38.2% + 19.5% 2006 1Q2007 1H2007 2006 1Q2007 1H 2007 Retail Customer Deposits + 21.2% 8,876 • Retail loan portfolio growth outpaced 7,918 th
Slide 7: Accelerated Growth in Corporate Lending in 2Q 2007
Accelerated Growth in Corporate Lending in 2Q 2007 Corporate Loan Portfolio (gross) Corporate Loans to Corporate Deposits + 18.1% 32,705 29,704 US$ million 218.8% + 10.1% 27,702 201.8% 192.1% + 7.2% 2006 1Q2007 1H2007 2006 1Q2007 1H 2007 Corporate Deposits + 28.0% 15,463 16,207 • IPO lifted capital
Slide 8: Financial Results
1H 2007 Highlights Operational Results Financial Results Risk & Capital Management Subsequent Events Appendix Slide 8 © VTB 2007
Slide 9: Operating Income: Strengthened Composition
Operating Income: Strengthened Composition Net Interest Income as % of Operating + 14.2% Income(1) 58.5% 53.0% 47.1% 46.4% 41.7% 1,477 1,293 141 US$ million 2004 2005 1H2006 2006 1H2007 27 91 227 87 Net Fee & Commission Income as % of Operating Income 91 267 205 12.5% 12.5% 14.8% (2) 11.4% 11.0% 161
Slide 10: Net Interest Income: Healthy Growth
Net Interest Income: Healthy Growth Av. Rate on Interest-Earning 9.1% Assets Av. Rate on Interest-Bearing 5.2% Liabilities +36.4% 2,235 +45.9% 1,231 Net Spread 3.9% US$ million 249 310 Net Interest Margin 4.1% 249 1,638 844 413 141 280 +26.4% 222 251 508 1,004 313 794 1,737 1,275 1H2006 1H2007 1H200
Slide 11: Net Fee and Commission Income: Solid Uptake
Net Fee and Commission Income: Solid Uptake + 65.8% 267 57 US$ million + 30.4% 210 11 21 161 27 Settlement Transactions 13 Cash Transactions 15 37 Guarantees Issued 28 Operations with securities 27 Other Depositary appointment fee 114 78 1H2006 1H2007 Slide 11 © VTB 2007
Slide 12: Operating Expenses: in Line with a Growing Business
Operating Expenses: in Line with a Growing Business + 40.2% 809 Cost-to-Income Ratio(1) US$ million 65.2% 38 54.0% 56.4% 50.8% 45 46.0% 108 577 27 37 2004 2005 1H2006 2006 1H2007 222 80 153 Staff Costs & Pension Expense 396 Other Expenses 280 Depreciation of Premises & Equipment Leasing & Rent Expen
Slide 13: Profit before Tax: Improved Quality of Earnings
Profit before Tax: Improved Quality of Earnings - 3.5% PBT Segment Analysis US$ million 14.4% 683 659 Profit before Tax net 116 18 2.4% of individually significant items(1) 641 Individually 567 significant items(1) + 13.1% 83.2% 1H2006 1H2007 Russia Other CIS Europe (1) Include gains from sale of Ka
Slide 14: Assets: Continued Strong Growth
Assets: Continued Strong Growth US$ million + 26.4% 66,223 Assets Segment Analysis 8,022 12.1% 18.6% 52,403 + 8.8% 8,453 12.8% 7,371 + 24.1% 2.9% 6,813 14,055 21.2% + 56.9% 8,957 53.9% 78.5% + 22.0% 35,693 29,262 Russia Other CIS Europe 2006 1H2007 Net Loans and Advances to Customers Due from Other
Slide 15: Loan Portfolio Diversification Well on Track
Loan Portfolio Diversification Well on Track 16% Finance(1) 17% 16% Trade and commerce 16% 11% Manufacturing 13% Individuals 8% 11% Building construction 9% 8% 5% Government bodies 6% 34.6% Metals 5% 5% 19.7% 17.7% Oil and Gas 6% 17.5% 5% Transport 4% 4% 2004 2005 2006 1H2007 Food and agriculture 4%
Slide 16: Securities Portfolio: Short-Term Post-IPO Growth
Securities Portfolio: Short-Term Post-IPO Growth US$ million + 56.9% 14,055 5 incl. EADS shares 2,591 US$1,341 mln 1,158 incl. EADS 8,957 , shares 11 Breakdown by Type of US$ million 888 Securities US$1,402 mln 14,055 2,938 4,710 10,301 8,957 , 2,320 5,120 9,345 6,637 2006 1H2007 2006 1H2007 At fair
Slide 17: Liabilities Structure Improved
Liabilities Structure Improved + 12.3% Customer 49.2% 51,007 US$ million Deposits 44.0% 45,411 + 4.0% 5,864 Debt Securities 25.8% 5,637 - 16.4% 6,871 Issued 25.5% 8,221 Due to Banks 13.5% + 14.0% 13,189 & Others 18.1% 11,565 Other Borrowed 11.5% Funds & 12.4% Subdebt 25,083 2006 1H2007 + 25.5% 19,98
Slide 18: Wholesale Funding Modest Growth
Wholesale Funding Modest Growth + 10.8% 19,053 " March 2007: VTB EUR 1,000 million 1,185 Eurobond, LIBOR + 0.6% p. a., US$ million 17,202 1,169 maturing in March 2009 4,679 " March 2007: VTB GBP 300 million 4,468 Eurobond, 6.332% p. a., maturing in March 2010 " April 2007: VTB Europe issued $500 mil
Slide 19: Risk & Capital Management
1H2007 Highlights Operational Results Financial Results Risk & Capital Management Subsequent Events Appendix Slide 19 © VTB 2007
Slide 20: Solid Loan Portfolio Quality
Solid Loan Portfolio Quality US$ million 442 2.6% 1.8% 211.8% 172.0% 0.8% 151.5% 150.6% 5,2% 196 0.8% 140 3.0% (1) 3.2% 3.0% 103 3,4% (1) 2.1% 1.8% 1.4% 2004 2005 2006 1H2007 2004 2005 2006 1H2007(3) (2) Allowance for Loan Impairment / Overdue and Rescheduled Loans Provision for Loan Impairement (2)
Slide 21: Capital Significantly Enhanced
Capital Significantly Enhanced BIS Group Capital (Tier I + Tier II) BIS Group Capital Adequacy Ratio 15,858 US$ million 19.0% 20.0% 1,277 1.6% 16.0% 14.1% 14.0% 12.0% 2.3% 2.4% 7,646 12.0% 5,898 14,581 17.4% 1,289 8.0% 2,540 971 12.0% 11.8% 11.6% 4.0% BIS & Covenants 6,357 4,927 2,540 0.0% 2004 2005
Slide 22: Subsequent Events
1H2007 Highlights Operational Results Financial Results Risk & Capital Management Subsequent Events Appendix Slide 22 © VTB 2007
Slide 23: Subsequent Events
Subsequent Events • In July 2007 VTB repaid its Series 3 issue under its $10 billion EMTN Programme in the amount of USD 300 million • In July 2007 VTB fully repaid the loan received from the Central Bank of Russia in the amount of USD 500 million • In July 2007 Bank VTB 24 made an additional share
Slide 24: Appendix
1H2007 Highlights Operational Results Financial Results Risk & Capital Management Subsequent Events Appendix Slide 24 © VTB 2007
Slide 25: Balance Sheet Highlights
Balance Sheet Highlights US$ million 1H2007 FY2006 %Change Loans and Advances to Customers (net) 35,693 29,262 22.0% Securities 14,055 8,957 56.9% Due from Other Banks 8,453 6,813 24.1% Cash and Short-term Funds 4,291 4,229 1.5% Total Assets (1) 66,223 52,403 26.4% Customer Deposits 25,083 19,988 25
Slide 26: Income Statement Highlights
Income Statement Highlights US$ million 1H 2007 1H 2006 %Change Interest Income 2,235 1,638 36.4% Interest Expense (1,231) (844) 45.9% Net Interest Income 1,004 794 26.4% Provision for Loan Impairment (140) (185) (24.3%) Gains Less Losses from Securities (1) 87 205 (57.6%) Net Fee and Commission Inc
Slide 27: Key Financial Ratios
Key Financial Ratios Profitability & Efficiency 1Н 2007 1H 2006 Net Interest Spread (1) 3.9% 4.5% Net Interest Margin 4.1% 4.5% Net Interest Income/ Operating Income (4) 58.5% 47.1% Net Fee & Commission Income / Operating Income (3) 14.8% 12.5% Cost-to-Income Ratio 56.4% 46.0% Return on Average Shar
Slide 28: Profitability
Profitability RoA RoE 2.8% 2.6% 2,4% 20.7% 19.7% 17.7% 1.7% 1.5% 10.3% 8.2% 2004 2005 1H2006 2006 1H2007 2004 2005 1H2006 2006 1H2006 Net Profit NIM & NS 1,179 4.7% 4.7% 4.5% 4.6% 4.3% 4.4% 3.9% 4.1% 576 511 504 208 2004 2005 1H2006 2006 1H2007 2004 2005 2006 1H 2007 Net spread Net interest margin S
Slide 29: Investor Relations
Investor Relations Nataly Loginova Elena Ershova Irina Mokeeva Yaroslav Ivanov Tel: +7 (495) 739-77-99 e-mail: [email protected] Slide 29 © VTB 2007