Vtb · RUS:VTBR

Vtb — VTB Bank — Investor Day (May 2017)

26 slides from Vtb's investor day presentation, May 19, 2017

  1. Slide 1: VTB Group Investor Day

    VTB Group Investor Day 19 May 2017 London 1

  2. 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 VTB Bank (PJSC) ("VTB") and its subsidiaries (together with VTB, the "Group"). Such forward-looking statements are based on numerous

  3. Slide 3: Robust growth story and strong competitive positions in all key segments

    ROBUST GROWTH STORY AND STRONG COMPETITIVE POSITIONS IN ALL KEY SEGMENTS Leading player in Russia with strong positioning in all key segments − 19% market share in Russia (% of total assets) Total assets RUB trln − market leader in investment banking (ECM, DCM, M&A) − largest market share for corpor

  4. Slide 4: VTB Group corporate developments: mix of mergers and organic growth

    VTB GROUP CORPORATE DEVELOPMENTS: MIX OF MERGERS AND ORGANIC GROWTH Legal merger with VTB Bank (May’16) Launch of Post Bank Leto Bank Organic Legal merger with growth VTB Bank (Jan’18) 2004 2005 2008 2010 2011 2013 2016 2018 M&A deals Guta Bank Promstroibank 4

  5. Slide 5: VTB Group operating model in line with best global practices

    VTB GROUP OPERATING MODEL IN LINE WITH BEST GLOBAL PRACTICES VTB Group key business lines Corporate-Investment Banking Retail Business Mid-Corporate Banking Assets RUB 6,507 bn RUB 4,153 bn RUB 798 bn 1Q17 Large corporate clients Small corporate clients and individuals Mid-corporate clients (revenue

  6. Slide 6: 2014-2016 strategy implementation results

    2014–2016 STRATEGY IMPLEMENTATION RESULTS Summary of 2014–2016 strategy implementation results Lessons learned Met the targets for asset and loan portfolio growth (CAGR of 13%) Market positioning Grew market shares in lending above targets ▪ A business model shall be supported by an adequate share o

  7. Slide 7: Key market trends in the new strategic period

    KEY MARKET TRENDS IN THE NEW STRATEGIC PERIOD Window of opportunity for Business environment market share growth  Moderate growth of the banking sector on the An active repartition of the market is Economy & backdrop of the economic recovery ongoing: VTB and other major banks are strengthening thei

  8. Slide 8: VTB Group macro expectations until 2019

    VTB GROUP MACRO EXPECTATIONS UNTIL 2019 GDP growth Y-o-Y Oil price (Urals), average USD/bbl 1Q17 52 60 60 55 1Q17 0.4% ≈2.0-2.5% ≈2.0-2.5% ≈1.5% 2017 2017F 2018 2018F 2019 2019F 2017 2017F 2018 2018F 2019 2019F Forecast Forecast Forecast Forecast Forecast Forecast CPI inflation Dec YTD / Dec YTD CBR

  9. Slide 9: Russian banking sector until 2019

    RUSSIAN BANKING SECTOR UNTIL 2019 Loans to legal entities RUB trln Loans to individuals RUB trln +8% CAGR to YE’16 +12% CAGR to YE’16 1Q17 -3.1% 37 - 38 41 - 42 1Q17 34 - 35 +0.6% 12.0 - 12.5 13.5 - 14.0 15.0 - 15.5 2017F 2017 2018F 2018 2019F 2019 2017 2017F 2018 2018F 2019 2019F Forecast Forecast

  10. Slide 10: VTB Group target vision

    VTB GROUP TARGET VISION Reliable profitable bank that provides stable target level ROE Net income target for 2019 – over RUB 200 bn, 2019 ROE c.14% Long-term customer relationships in all market segments Integrated Group with efficient interaction between business lines High-tech bank – market leade

  11. Slide 11: VTB Group key initiatives under the 2017-2019 strategy

    VTB GROUP KEY INITIATIVES UNDER THE 2017–2019 STRATEGY 1 Improvement of the funding structure and reduction of funding costs 2 New scale in Retail business: increased market share and retail funding for the Group Achieving target profitability in Corporate-Investment Banking while maintaining 3 mark

  12. Slide 12: Improvement of the funding structure and reduction of funding costs

    1 Improvement of the funding structure and reduction of funding costs Roadmap Structure of interest-bearing liabilities  Increasing the share of customer deposits Retail funds 24% 27% 28% 39% in total liabilities and improving the resistance 82% 73% 74% to interest rate risk Corporate funds 34% 58%

  13. Slide 13: New scale in Retail Business: increased market share and retail funding

    New scale in Retail Business: increased market share and retail funding 2 for VTB Group Roadmap Market share in Russia  2-fold increase of customer base and market Loans to individuals Deposits of individuals share growth 15% 24% 9% 11% 11% 14% 20% 20%  VTB Bank and Post Bank taking the market 201

  14. Slide 14: Development of Post Bank

    DEVELOPMENT OF POST BANK 2016 1Q17 2019 Roadmap Key indicators Actual Actual Target  Significantly improve market share in mass retail Number of post offices thsd offices 6.3 8.1 15.0  Gain access to the pensioner customer base  Build the nation’s largest network of low cost Loans to individuals

  15. Slide 15: Achieving target profitability in Corporate-Investment Banking

    Achieving target profitability in Corporate-Investment Banking while 3 maintaining market leadership Roadmap Target business model  Client base expansion due to competitive pricing given  Higher profitability driven by lower  Improvement of funding structure and cost of funds cost of funding  Im

  16. Slide 16: Developing new business model in Mid-Corporate Banking

    Developing new business model in Mid-Corporate Banking focused on 4 ambitious customer base growth and revenue diversification Roadmap Target business model  1.5х сustomer base growth  Client base expansion  Increasing presence in the upper segment (increase of customer base by 23%)  New sales m

  17. Slide 17: Integration of VTB and VTB24 banks

    Integration of VTB and VTB24 banks and reaching a new level of 5 cooperation between business lines Integration goals  Build a highly competitive business model of the integrated bank  Streamline corporate structure and improve manageability  Achieve further synergies of corporate and retail busi

  18. Slide 18: Digital transformation of the Group's business and processes

    6 Digital transformation of the Group’s business and processes Roadmap Key KPIs Creating in- Time to Market demand digital  Personification of products and pricing products  Reducing time-to-market months 3 times decrease Growing the  Enhancing functionality and usability penetration of digital S

  19. Slide 19: VTB Group goal is to reach RUB 200 bn net profit target by 2019

    VTB GROUP GOAL IS TO REACH RUB 200 BN NET PROFIT TARGET BY 2019 Net profit RUB bn 2019 net profit breakdown % >200 CIB 45-50% over x4 Mid-Corporate 5-8% Banking 51.6 Retail 45-50% Business 2016 2019 >RUB 200 bn Target Total 3.6 ≈14 ROE % 19

  20. Slide 20: Management expectations and targets until 2019

    MANAGEMENT EXPECTATIONS AND TARGETS UNTIL 2019* Indicator Measurement Macro RUSSIA 2017 2018 2019 GDP growth % YoY 1.5 ≈2.0-2.5 ≈2.0-2.5 CPI % Dec YTD/Dec YTD 5.2 4.5 – 5.0 4.5 – 5.0 Oil price (Urals), average USD/bbl 54 60 60 CBR key rate, eop % 9.0 7.0 6.0 Banking sector 2017-2019 Loans to legal e

  21. Slide 21: 1Q'2017 update: core income lines

    1Q’2017 UPDATE: CORE INCOME LINES RUB bn Strategic target Net interest income & NIM 2017 3.7% 4,0% 4,1% 3,4% 3,8% 3,8% NIM NIM 4% 415,0 +15% ✔ On track 98,3 108,7 103,4 104,6 113,0 to deliver 2016 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 Net fee & commission incomeRUB bn & NCM Strategic target 0.6% 0,8% CAGR 2

  22. Slide 22: 1Q'2017 update: operating expenses and provisions

    1Q’2017 UPDATE: OPERATING EXPENSES AND PROVISIONS Strategic target Staff costs and admin expensesRUB bn & CIR 2017 54,5% 44,2% 44,6% 41,7% 42,4% 45.8% CIR < 45% CIR 233,9 +2% ✔ 60,6 55,7 55,3 62,3 61,6 On track to deliver 2016 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 P&L provisionsRUB bn & CoR 2,5% 2,5% Strate

  23. Slide 23: 1Q'2017 update: net profit and ROE

    1Q’2017 UPDATE: NET PROFIT AND ROE Net profit RUB bn & ROE 7,9% ROE 3.6% 5,3% 4,9% Strategic target 4,2% 2017 0,2% 51,6 Net profit (RUB bn) ≈100 x46 ✔ 18,7 27,6 On track 14,8 17,5 to deliver 0,6 2016 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 23

  24. Slide 24: 1Q'2017 update: balance sheet and capital metrics

    1Q’2017 UPDATE: BALANCE SHEET AND CAPITAL METRICS Assets structure RUB bn Liabilities structure RUB bn 12,586 12,457 11 175 11 024 9% 3% CBR funding 16% 16% 26% Retail loans Retail funds 27% Corporate loans Corporate funds 54% 70% 54% 70% 47% 73% 39% 66% 2016 1Q'17 2016 1Q'17 LDR (1) Capital Improve

  25. Slide 25: 1Q'2017 results consistent with strategic targets

    1Q’2017 RESULTS CONSISTENT WITH STRATEGIC TARGETS Indicator Measurement 2017 expectations 1Q’2017 actual Macro (Russia) GDP growth % YoY 1.5% 0.4% CPI % Dec YTD/Dec YTD 5.2% 4.3% Oil price (Urals), average USD/bbl 54 52 CBR key rate, eop % 9.0% 10.0% Banking sector Loans to legal entities % 3Y CAGR

  26. Slide 26: Investor Relations

    Investor Relations Tel: +7 (495) 775-71-39 e-mail: [email protected] 26

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