Vtb · RUS:VTBR

Vtb — Investor Presentation (February 2012)

35 slides from Vtb's investor presentation, February 2012

  1. Slide 1: Investor Presentation February 2012

    Investor Presentation February, 2012 1 © VTB 2011 2011

  2. Slide 2: Forward-looking statements disclaimer

    Some of the information in this presentation may contain projections or other forward-looking 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 base

  3. Slide 3: Agenda

    1. Key Investment Highlights 3 2. Macroeconomic Environment and Banking Sector Forecast 5 3 Attractive 3. Att ti U Universal i lBBanking ki F Franchise hi 9 4. M&A Update 11 5. 9M’2011 Results 16 6. Cost Optimisation Program 19 7 O 7. Outlook tl k 21 8. Appendix 24 3 © VTB 2012

  4. Slide 4: Key Investment Highlights

    Key Investment Highlights Outpacing the Market in an Under- banked Gateway to Russia Region  Russia is a resource-rich BRIC economy likely to  Russia under-banked by any measure – catch-up effect outperform through the next global cycle, driven by will allow faster growth consumer and commodity de

  5. Slide 5: Agenda: Macroeconomic Environment and Banking Sector Forecast

    1. Key Investment Highlights 3 2. Macroeconomic Environment and Banking Sector Forecast 5 3 Attractive 3. Att ti U Universal i lBBanking ki F Franchise hi 9 4. M&A Update 11 5. 9M’2011 Results 16 6. Cost Optimisation Program 19 7 O 7. Outlook tl k 21 8. Appendix 24 5 © VTB 2012

  6. Slide 6: Russian Economy – Key Forecasts

    Russian Economy – Key Forecasts 2007 2008 2009 2010 2011 2012F 2013F Real GDP (y-o-y, %) 8.5 5.2 -7.8 4.0 4.2 3.5 4.0 USD/RUB (eop) 24.55 29.38 30.24 30.48 32.20 31.00 31.15 change 7% -16% -3% -1% -6% 4% -1% USD/RUB (avg) 25.58 24.85 31.84 30.36 29.35 31.00 31.05 change 6% 3% -28% 28% 5% 3% -6% 6% 0

  7. Slide 7: Russian Banking Sector

    Russian Banking Sector Top 10 Russian banks by assets (1), 9M’11 Total assets and loan share, Nov’09 – Nov’11 (RUB, bn) 2,1% 1,6% 1,4% 1,2% Sberbank (25.8%) 45,000 Total assets Loan share (RHS) 58% 2,4% VTB Group (16.2%) 40,000 57% Gazprombank (5.4%) 35 000 35,000 2,5% 56% 30,000 Russian Agricultura

  8. Slide 8: Russian Banking Sector – Forecast for 2011-2013

    Russian Banking Sector – Forecast for 2011-2013 2008 2009 2010 2011F 2012F 2013F RUB bn 28,022 29,430 33,805 37,660 44,328 52,709 USD bn 954 973 1,109 1,285 1,513 1,763 Total assets % YoY 39.2% 5.0% 14.9% 11.4% 17.7% 18.9% % of GDP 67.9% 75.9% 76.0% 73.0% 76.0% 80.0% RUB bn 16 527 16,527 16 116 16,1

  9. Slide 9: Agenda: Attractive Universal Banking Franchise

    1. Key Investment Highlights 3 2. Macroeconomic Environment and Banking Sector Forecast 5 3 Attractive 3. Att ti U Universal i lBBanking ki F Franchise hi 9 4. M&A Update 11 5. 9M’2011 Results 16 6. Cost Optimisation Program 19 7 O 7. Outlook tl k 21 8. Appendix 24 9 © VTB 2012

  10. Slide 10: VTB Group - Attractive Universal Banking Franchise

    VTB Group - Attractive Universal Banking Franchise Leading player in Russia Strong distribution footprint  Second largest universal bank with RUB 6,337 bn /  c. 1,400 branches across USD 200.0 (1) bn in assets and presence across Russia, CIS and Europe Russia Russia CIS and Europe Russia, UK Germa

  11. Slide 11: Agenda: M&A Update

    1. Key Investment Highlights 3 2. Macroeconomic Environment and Banking Sector Forecast 5 3 Attractive 3. Att ti U Universal i lBBanking ki F Franchise hi 9 4. M&A Update 11 5. 9M’2011 Results 16 6. Cost Optimisation Program 19 7 O 7. Outlook tl k 21 8. Appendix 24 11 © VTB 2012

  12. Slide 12: TransCreditBank – Acquisition Summary

    TransCreditBank – Acquisition Summary Timeline TCB Acquisition Price (for 74.48% stake) Total price paid RUB 38.3 bn 43.18% stake acquired q from minority y shareholders Dec 2010 VTB Group consolidated TCB in its FY’10 IFRS BV (as of Dec 31, 10) RUB 20.9 bn statements based on potential voting right

  13. Slide 13: TransCreditBank – Integration ahead of Plan

    TransCreditBank – Integration ahead of Plan Rationale TCB focus Principles of VTB and TCB integration  Overall integration strategy  Fits strategic model  Migrating corporate business to VTB and merging  Brings strong client base Final stage: the bank to VTB24 Integrate TCB by YE’2014  Keeping

  14. Slide 14: Bank of Moscow – Acquisition Summary

    Bank of Moscow – Acquisition Summary Timeline BoM FY’11 Outlook 46.48% stake in BoM acquired from the City of Moscow Loan book growth 18% F b 2011 Feb (for RUB 92.8 bn) and 25%+1 share stake in Metropolitan Insurance Group (for RUB 10.2 bn) Net profit RUB 3 bn (1) Mikhail Kuzovlev elected as BoM Pre

  15. Slide 15: Bank of Moscow Development Strategy for 2011-2014

    Bank of Moscow Development Strategy for 2011-2014 BoM will be developed as an independent universal commercial bank within VTB Group  Focus on business development in Moscow and  Focus on independent p business development p with Moscow region small and medium-sized enterprises  Further developme

  16. Slide 16: Agenda: 9M'2011 Results

    1. Key Investment Highlights 3 2. Macroeconomic Environment and Banking Sector Forecast 5 3 Attractive 3. Att ti U Universal i lBBanking ki F Franchise hi 9 4. M&A Update 11 5. 9M’2011 Results 16 6. Cost Optimisation Program 19 7 O 7. Outlook tl k 21 8. Appendix 24 16 © VTB 2012

  17. Slide 17: 9M'2011 Highlights

    9M’2011 Highlights 9M’11 net profit of RUB 72.6 bn Cost of risk declining Stable NIM improves Group ROE (Provision charge for loan impairment/ Average (Annualised ROE) gross loan portfolio (annualised) 20% 8% 8% 16.2% 15% 6% 5.7% 6% 5.1% 4.8% 10.3% 4.6% 10% 4% 4% 1.9% 1.0% 5% 2% 2% n.m. 0% 0% 0% FY’

  18. Slide 18: Healthy Balance Sheet Boosted by Bank of Moscow Acquisition

    Healthy Balance Sheet Boosted by Bank of Moscow Acquisition Assets Structure Net Interest Spread (w/o BoM), y-o-y Average cost of interest bearing liabilities 6,337 Net interest spread Average yield on interest earning assets 6% Cash and mandatoryy 9.8% 9 3% 9.3% 8 9% 8.9% 9 0% 9.0% 9 0% 9.0% 13% re

  19. Slide 19: Agenda: Cost Optimisation Program

    1. Key Investment Highlights 3 2. Macroeconomic Environment and Banking Sector Forecast 5 3 Attractive 3. Att ti U Universal i lBBanking ki F Franchise hi 9 4. M&A Update 11 5. 9M’2011 Results 16 6. Cost Optimisation Program 19 7 O 7. Outlook tl k 21 8. Appendix 24 19 © VTB 2012

  20. Slide 20: VTB Group Cost Management Strategy for 2012-2014

    VTB Group Cost Management Strategy for 2012-2014 Targeted Ratios Sources of Cost Savings 43% 45% 42% 41% Supplier and 23% 28% 28% 28% procurement process 10% management 20% Premises and 20% 17% 40% 14% 13% equipment management 30% Outsourcing O i off selected services 9M'11 FY'12 FY'13 FY'14 Labour

  21. Slide 21: Agenda: Outlook

    1. Key Investment Highlights 3 2. Macroeconomic Environment and Banking Sector Forecast 5 3 Attractive 3. Att ti U Universal i lBBanking ki F Franchise hi 9 4. M&A Update 11 5. 9M’2011 Results 16 6. Cost Optimisation Program 19 7 O 7. Outlook tl k 21 8. Appendix 24 21 © VTB 2012

  22. Slide 22: VTB's Targets

    VTB’s Targets VTB Group net profit and ROE 2013 targets ≈20 % 160-180 >15 ROE % 10 3% 10.3% 100 neg. 54.8 50 B bn) neg neg. 9M’11: 72.6 (RUB t target t 2009 2010 2011 2013 VTB Group 2011 targets Loan book CAR1: CIR NIM Cost of risk Tier 1 Tier Не у дает ся от образит ь рису нок . Возможно, рису нок

  23. Slide 23: Tier I Development in 3Q'11 and YE'11 Forecast

    Tier I Development in 3Q’11 and YE’11 Forecast 2Q’11 3Q’11 4Q’11* RUB bn) 614 +8 Tier I Capital (R 586 +20 BoM: -81 ≈540 Other: -21 512 Before Before Net profit Other (1) Goodwill deductions deductions 2Q’11 Q 3Q’11 4Q’11* Q A (RUB bn)) 5,578 ≈5,500 4,721 +341 +516 RWA BoM input Organic growth 2Q’11

  24. Slide 24: Appendices

    Appendices 1. VTB Group 9M’11 IFRS Results 25 2 VTB G 2. Group P Public bli DDebt bt IInstruments t t 33 24 © VTB 2012

  25. Slide 25: VTB Group 9M'2011 Financial Highlights

    VTB Group 9M’2011 Financial Highlights (in RUB bn) 9M'11 9M'10 y-o-y Operating income before provisions 209.9 160.7 30.6% (1) Provisions for impairment (25 9) (25.9) (42 3) (42.3) -38 38.8% 8% Staff costs and administrative expenses (90.8) (68.0) 33.5% Net profit 72.6 38.8 87.1% Net interest margin

  26. Slide 26: Solid Operating Income and Robust Net Interest Margin

    Solid Operating Income and Robust Net Interest Margin Operating Income before Provisions, q-o-q y-o-y +3% +31% -29% 209 9 209.9 72.9 80.1 56.9 160.7 27.1 55.3 60.4 8.0 9.9 11.0 9.2 +52% 24.6 6.0 6.9 9.7 4.0 17.8 5.1 6.8 9.6 7.9 1.3 5.2 5.6 +339% 59.4 54.2 (RUB bn) 45.6 +23% 42.9 41.5 159.2 129.4 ((R

  27. Slide 27: Costs Remain under Control

    Costs Remain under Control Staff and Administrative Expenses, q-o-q y-o-y -2% +34% -31% 42.3% 43.3% 43.6% 44.9% 45.3% 42.8% 41.3% 90.8 33.0 34.3 24.1 27.1 68.0 13 1 13.1 14 9 14.9 23 5 23.5 42 6 42.6 13.7 31.0 (RUB bn) 10.9 (RUB bn) 14.6 19.9 19.4 48.2 13.2 13.4 37.0 8.9 3Q’10 Q 4Q’10 Q 1Q’11 Q 2Q’1

  28. Slide 28: Asset Quality Improving

    Asset Quality Improving Quarterly P&L Provision Charge (1) (y-o-y) y-o-y - 39% - 37% 2.0% 1.8% 1.0% 1.4% 1.1% 1.2% 0.9% 40.3 25.3 RUB bn) (RUB bn) 13.1 11.3 7.7 9.6 8.0 (R 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11 9M'10 9M'11 Provision charge for loan impairment/ Average gross loan portfolio Provision charge fo

  29. Slide 29: Segment Analysis

    Segment Analysis Corporate and Investment Banking Loans & Transaction Retail Banking IB Deposits Banking Total CIB ((1)) (in RUB bn) 9M'11 9M'11 9M'10 y-o-y 9M'11 9M'10 y-o-y Net interest income (2) 11.5 80.5 9.3 101.3 87.7 15.5% 54.0 39.1 38.1% Net fee and commission income 4.1 2.5 8.3 14.8 9.2 60.

  30. Slide 30: CIB Subsegment – Loans and Deposits

    CIB Subsegment – Loans and Deposits Segment Data - Customer Loans Market Shares in Russia 23.1% +52% 52% 15.0% 20.0% 3,100.4 12.8% 2,037.3 12.0% 12.0% n) 30 J 30-Jun- 31 D 10 31-Dec-10 30 S 11 30-Sep-11 (RUB bn % Corporate loan market % Corporate deposit 31-Dec-10 30-Sep-11 share(1) market share in

  31. Slide 31: CIB Subsegment – Investment Banking

    CIB Subsegment – Investment Banking VTB Capital League Tables September 2011 Key Developments in 9M’11 Russia and CIS related international DCM # Lead Manager Amount, $ mln # of deals Share, %  Financial Industry Regulatory Authority has granted 1 VTB Capital 4,398 18 15.4% VTB Capital Inc. (USA) a

  32. Slide 32: Retail Banking in Russia

    Retail Banking in Russia Segment Data - Loans to Individuals Market Shares in Russia 14.1% 10 7% 10.7% 12.2% +41% 9.3% 784.9 6.1% 7.2% 556.2 (RUB bn) 30-Jun-10 31-Dec-10 30-Sep-11 % Retail loan market % Retail deposit market 31-Dec-10 30-Sep-11 share in Russia share in Russia + Key y developments p

  33. Slide 33: VTB Group Public Debt Instruments

    VTB Group Public Debt Instruments (1) VTB Group Public Debt Instruments Outstanding (2) Bank of Moscow Public Debt Instruments Outstanding Equivalent Maturity Equivalent Maturity Borrower amount Instrument Date/Put or Coupon Borrower amount Instrument Date/Put or Coupon (USD, mln) Call Option (USD,

  34. Slide 34: VTB Group International Public Debt Instruments Issued in 2010-2011

    VTB Group International Public Debt Instruments Issued in 2010-2011 Borrower Date of issue Amount (mln) Instrument Maturity date Coupon/rate VTB March 2010 USD 1,250 Series 7 EMTN 2 March 2015 6.465% VTB August 2010 SGD 400 Series 8 EMTN 2 August 2012 4.2% VTB August 2010 CHF 400 Series 9 EMTN 2 Aug

  35. Slide 35: Investor Relations Contacts

    Investor Relations Contacts: Tel: +7 (495) 775-7139 e-mail: [email protected] 35 © VTB 2012

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