Vtb · RUS:VTBR

Vtb — FY2007 Earnings Presentation

32 slides from Vtb's earnings presentation, Apr 10, 2008

  1. Slide 1: VTB Group FY 2007 results

    Unaudited figures VTB Group FY 2007 results April 10, 2008 1 © VTB 2008

  2. Slide 2: Forward-looking statements disclaimer

    Unaudited figures 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 o

  3. Slide 3: Andrey Kostin, President – Chairman of the Management Board

    Unaudited figures Andrey Kostin President – Chairman of the Management Board 3 © VTB 2008

  4. Slide 4: Delivering strong growth

    Delivering strong growth Unaudited figures ƒ Strong underlying results in core divisions: ƒ Net income: Up 28.4% to US$ 1,514 million ƒ Core income (1): Up 48.0% to US$ 3,056 million ƒ EPS: Up 10.6% to US$ 0.000241 ƒ Impressive growth backed by solid capital base: ƒ Total assets: Up 76.7% to US$ 92,

  5. Slide 5: A year of building foundations

    A year of building foundations Unaudited figures ƒ IPO successfully raised almost US$8 billion ƒ Major internal restructuring and cultural change as a publicly listed company ƒ Confirmed strategic direction and set clear targets ƒ Capital available for strategic growth ƒ Strengthened retail and corp

  6. Slide 6: Strong growth continues in Russian banking sector

    Strong growth continues in Russian banking sector Unaudited figures Total banking assets and penetration(1) Environment ƒ Corporate loans and deposits grew by 70% and 89% in 54% 2007, respectively 820 ƒ Retail loans and deposits increased by 54% and 46% 64% in 2007, respectively % ƒ Liquidity stretc

  7. Slide 7: Nikolai Tsekhomsky, CFO

    Unaudited figures Nikolai Tsekhomsky CFO, Member of the Management Board 7 © VTB 2008

  8. Slide 8: Robust asset growth achieved with positive structural changes

    Robust asset growth achieved with positive structural changes Unaudited figures Total assets Breakdown of assets (as % of total) +76.7% Cash and 6.5% mandatory 8.1% reserves 92,609 Customer 63.2% loans 55.8% Securities 14.6% 52,403 portfolio 17.1% Due from 10.5% other 13.0% banks US$ million Other 5

  9. Slide 9: Loan portfolio doubled in 2007

    Loan portfolio doubled in 2007 Unaudited figures Customer loans Breakdown of loan portfolio (gross) Finance (1) 20% +100.1% 17% Trade and 12% commerce 16% 9% 58,549 Manufacturing 13% (2) 13% Retail 8% Building 8% construction 8% Government 5% bodies 6% Metals 4% 5% 29,262 6% Oil and gas 5% Transport

  10. Slide 10: Accelerated corporate loan and customer deposit growth

    Accelerated corporate loan and customer deposit growth Unaudited figures Corporate loans (gross) Corporate customer deposits(1) +88.9% +108.6% Quarterly increase Quarterly increase +11,611 +7,122 +8,023 +2,801 +3,086 +2,002 +3,001 +744 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 52,339 27,702 26,415 9,634 US$ million U

  11. Slide 11: Outstanding retail business performance

    Outstanding retail business performance Unaudited figures Retail loans (gross) (1) Retail customer deposits +203.3% +45.8% Quarterly increase Quarterly increase +2,065 +959 +1,053 +1,511 +591 +754 +1,079 +494 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 10,683 7,682 2,974 7,326 +67.4% 4,021 +154.3% 1,777 7,709 2,533 US$

  12. Slide 12: Maintaining strict credit quality

    Maintaining strict credit quality Unaudited figures 2,6% 526 211.8% 442 176.5% 151.5% 150.6% 1,8% 5.2% 1,3% 3.2% 196 0,8% 3.0% 3.4% 2.5% US$ million 103 2.1% 1.4% 1.4% 2004 2005 2006 2007 2004 2005 2006 2007 Allowance for loan impairment/Total gross loans Overdue and rescheduled loans/Total gross lo

  13. Slide 13: Securities portfolio: EADS stake sold

    Securities portfolio: EADS stake sold Unaudited figures Securities breakdown +50.8% 13,985 13,511 1,286 3,629 3,691 8,957 1,402 918 9,882 9,008 US$ million 6,637 2006 9M2007 2007 Debt securities Equity securities and balances on derivatives EADS 13 © VTB 2008

  14. Slide 14: Strong core income contribution with maintained margin

    Strong core income contribution with maintained margin Unaudited figures Operating income Core income(1) +48.0% +32.8% 3,732 21 NIM 2007: 4.4% 2,810 655 -94.8% 3,056 NIM 2006: 4.5% 407 +93.8% 500 338 2,065 +42.5% 3,056 351 US$ million US$ million 2,065 2,556 +48.0% +49.1% 1,714 2006 2007 2006 2007 O

  15. Slide 15: Operating expenses reflect significant investment

    Operating expenses reflect significant investment Unaudited figures Operating expenses Cost to income ratio +42.2% +2.8 pp 53.6% 1,948 988 50.8% US$ million 1,370 +41.5% 698 +42.9% 960 672 2006 2007 2006 2007 Other costs Staff and pension expenses 15 © VTB 2008

  16. Slide 16: Adjusted pre-tax profit: 50% increase

    Adjusted pre-tax profit: 50% increase Unaudited figures Profit before taxation +29.6% 1,819 161 Disposal of EADS shares Disposal of 54 subsidiaries/ associates 316 1,404 Depositary 57 appointment fee Disposal of IMB shares 232 402 Disposal of subsidiaries/ 98 associates Disposal of KamAZ 116 shares

  17. Slide 17: Funding: uptake in customer deposits

    Funding: uptake in customer deposits Unaudited figures Total liabilities Breakdown of liabilities (as % of total) +67.6% 76,108 48.7% Customer 16,174 deposits 44.0% 45,411 +96.7% 22,836 30.0% 8,221 Wholesale funding(1) +32.7% 37.9% 17,202 37,098 +85.6% US$ million Due to 21.3% 19,988 banks & other l

  18. Slide 18: VTB backed by solid capital

    VTB backed by solid capital Unaudited figures BIS Group Capital (Tier I + Tier II) BIS Group Capital Adequacy Ratio 16,978 1,384 16% 14% 14% 12% 7,646 BIS & 15,594 1 289 Covenants 5,898 971 US$ million 2,540 6,357 4,927 2004 2005 2006 2007 2004 2005 2006 2007 Tier I Tier II Less Deductions 18 © VTB

  19. Slide 19: Andrey Kostin

    Unaudited figures Andrey Kostin 19 © VTB 2008

  20. Slide 20: Agenda for 2008

    Agenda for 2008 Unaudited figures Retail Banking Corporate Banking Investment Banking ƒ Expand VTB24 network to ƒ Intensify deposit gathering efforts ƒ Build a team of top investment 500 branches ƒ Maintain net interest margin bankers to lead the new division ƒ Improve the retail banking ƒ Develop n

  21. Slide 21: Targets by 2010 re-affirmed

    Unaudited figures Targets by 2010 re-affirmed ƒ Grow faster than Russian banking market both in corporate and retail ƒ Increase share of retail business in bank loan portfolio to 25-30% ƒ Maintain current level of net interest margin ƒ Accelerate commission income growth ƒ Target cost to income rati

  22. Slide 22: Investor Relations

    Unaudited figures Investor Relations Elena Ershova Irina Mokeeva Tel: +7 (495) 232-51-86 e-mail: [email protected] 22 © VTB 2008

  23. Slide 23: Appendix

    Appendix Unadited figures 1 © VTB 2008

  24. Slide 24: Income Statement

    Income Statement Unadited figures US$ million FY/06 FY/07 % y-o-y Interest income 3,606 5,387 49.4 Interest expense (1,892) (2,831) 49.6 Net Interest Income 1,714 2,556 49.1 Provision charge for impairment (442) (526) 19.0 Gains less losses from securities 566 254 (55.1) Fee and commission income 40

  25. Slide 25: Assets

    Assets Unadited figures US$ million 31/12/06 31/12/07 % y-o-y Cash and short-term funds 3,581 5,160 44.1 Mandatory cash balances with central banks 648 825 27.3 Financial assets at fair value through profit or loss 5,120 10,436 103.8 Financial assets pledged under repurchase agreements and 2,938 2,2

  26. Slide 26: Liabilities and Equity

    Liabilities and Equity Unadited figures USD million 31/12/06 31/12/07 % y-o-y Liabilities Due to Other Banks 7,587 14,794 95.0 Customer Deposits 19,988 37,098 85.6 Other Borrowed Funds 4,468 5,176 15.8 Debt Securities Issued 11,565 16,489 42.6 Other liabilities 509 1,231 141.8 Subordinated Debt 1,16

  27. Slide 27: Key Financial Ratios

    Key Financial Ratios Unadited figures Profitability & Efficiency 2006 Q1/07 Q2/07 Q3/07 Q4/07 2007 Net Interest Spread (1) 4.4% 4.2% 3.9% 4.4% 4.1% 4.1% Net Interest Margin 4.5% 4.2% 4.1% 4.9% 4.6% 4.4% Cost-to-Income Ratio 50.8% 56.0% 56.8% 45.2% 57.8% 53.6% Return on Average Shareholders’ Equity (

  28. Slide 28: Securities Portfolio and Derivatives

    Securities Portfolio and Derivatives Unadited figures At fair value through P&L Repo + loaned securities Available-for-sale Held-to-maturity Total Debt securities 7,623 1,986 268 5 9,882 - Russian 6,758 1,009 102 - 7,869 - foreign 865 977 166 5 2,013 Equity securities 2,253 226 590 - 3,069 Balances

  29. Slide 29: VTB Group Eurobond Outstanding Issues

    VTB Group Eurobond Outstanding Issues Unadited figures Borrower Amount (US$, mln) Instrument Maturity Date Coupon 2008 VTB Europe 150 Fixed Rate Eurobond June 2008 4.375% VTB N-W 300 Fixed Rate Eurobond July 2008 6.875% VTB 1,750 Series 10 Eurobond August 2008 L+0.6% VTB 1,273 Series 3 RUB Eurobond

  30. Slide 30: VTB Group Eurobond Maturity Profile

    VTB Group Eurobond Maturity Profile Unadited figures US$ mln 4500 4,289 4,023 1,565 1,273 3000 424 1,748 1500 1,233 1,200 2,750 598 2,300 1,000 783 1,150 1,200 1,000 450 0 2008 2009 2010 2011 2012 2015 USD RUB EURO GBP 8 © VTB 2008

  31. Slide 31: Market leadership

    Market leadership Unadited figures VTB corporate loans market share VTB corporate deposits market share 10.7% 10.2% 9.4% 9.0% 8.7% 7.4% 6.8% 4.5% 2004 2005 2006 2007 2004 2005 2006 2007 VTB retail loans market share VTB retail deposits market share 5.9% 5.2% 4.7% 4.8% 2.8% 2.6% 1.3% 1.5% 2004 2005 2

  32. Slide 32: Investor Relations

    Unadited figures Investor Relations Elena Ershova Irina Mokeeva Tel: +7 (495) 232-51-86 e-mail: [email protected] 10 © VTB 2008

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