Vtb · RUS:VTBR
Vtb — VTB Bank — Investor Presentation (May 2011)
28 slides from Vtb's investor presentation, May 27, 2011
Slide 1: Investor Presentation
Investor Presentation 0 © VTB 2011
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
Slide 3: Agenda
1. Key Investment Highlights 2. Macro-Economic Environment 3. Attractive Universal Banking Franchise 4. Clear Business Strategy and On-Track Delivery 5 M&A Update 5. U d t 6 Appendices 6. 2 © VTB 2011
Slide 4: Key Investment Highlights
Key Investment Highlights Gateway to Russian Rebound Leading Russian Banking Franchise Russia is a resource-rich BRIC economy set to A unique universal platform and top player in key outperform through the next global cycle, driven by segments with strong cross-selling potential consumer and com
Slide 5: Macro-Economic Environment
1. Key Investment Highlights 2. Macro-Economic Environment 3. Attractive Universal Banking Franchise 4. Clear Business Strategy and On-Track Delivery 5 M&A Update 5. U d t 6 Appendices 6. 4 © VTB 2011
Slide 6: Strong Fundamentals Leverage Growth Potential of the Russian Economy
Strong Fundamentals Leverage Growth Potential of the Russian Economy The Largest Emerging EMEA Economy Benefiting from Strong Commodities Quickly Recovering after Crisis 5,878 95.1 78.2 97.5 69.5 35.7% 38.5% 61.8 60.4 31.4% 33.0% 29.2% 28.1% 554 478 427 439 479 2,088 304 7.4 1.1 1 645 1,645 1 490 1,
Slide 7: Good Growth Perspectives for Russian Banking Sector
Good Growth Perspectives for Russian Banking Sector Banking Assets to GDP, 2010 Top 10 Russian Banks By Assets, YE10 180% 167% Sberbank 150% 137% 25 2% 25.2% VTB Group 12.7% 12 7% 120% 120% 105% 104% 100% Avr. 96% 86% 90% 82% 80% 76% 51% 60% Gazprombank 5.3% 30% Russian Agricultural Bank 3.0% 0% Ban
Slide 8: Attractive Universal Banking Franchise
1. Key Investment Highlights 2. Macro-Economic Environment 3. Attractive Universal Banking Franchise 4. Clear Business Strategy and On-Track Delivery 5 M&A Update 5. U d t 6 Appendices 6. 7 © VTB 2011
Slide 9: VTB Group - Attractive Universal Banking Franchise
VTB Group - Attractive Universal Banking Franchise Strong Distribution Footprint Leading Player in Russia 1,295 branches Second Largest Universal Bank with RUB 4,291 bn / across Russia Russia, USD 157.9 (1) bn in assets and presence across CIS and Europe Russia, CIS and Europe Fully fledged pl
Slide 10: Clear Business Strategy and On-Track Delivery
1. Key Investment Highlights 2. Macro-Economic Environment 3. Attractive Universal Banking Franchise 4. Clear Business Strategy and On-Track Delivery 5 M&A Update 5. U d t 6 Appendices 6. 9 © VTB 2011
Slide 11: VTB Group Key Financial Targets 2013
VTB Group Key Financial Targets 2013 (1) Net Profit / ROE Cost / Income Ratio Loans/Deposits Growth (RUB bn) (2009-2013) ROE 15-20% 130%-135% neg. 46% 120 - 140 <40% > 2.0x 2 3x > 2.3x neg. 2009 2013 2009 2013 Loans in 2013 Deposits in 2013 Net Fees and Commissions Assets Income/ Net Operating incom
Slide 12: FY'2010 Highlights – Delivered as Promised
FY’2010 Highlights – Delivered as Promised FY’10 Net Profit of RUB 54.8 bn Improves Group ROE Lending Accelerating Cost of Risk Declining (Provision charge for impairment of debt financial assets) (Annualised ROE) (Total Loans, RUB bn) 5.7% 10.3% 2,785.4 10.0% 2,500 2,555.6 3.2% 2,309.9 1.8% 8.0% 2,
Slide 13: CIB Concept: Transformation underway
CIB Concept: Transformation underway Key Financial Targets (2013) (1) Business Performance 15% - 20% Corporate Loans (Gross) n.m. ROE +19% (RUB bn)) 2009 2013E 2,263 2,110 2,518 35% < 35% CIR 2009 2013E 31-Dec-08 31-Dec-09 31-Dec-10 (2) Loan 1 906 1,906 ~2x Corporate p Deposits p +34% Growth 1,465 (
Slide 14: Retail Banking: Gaining Market Share
Retail Banking: Gaining Market Share Key Financial Targets (2013) (1) Business Performance Loans to Individuals (Gross) 8% > 20% 8.8% 10.2% +24% 12.1% ROE 2009 2013E 387 435 542 53 3 (RUB bn) 41 1 46 25 48% < 40% 155 183 268 191 182 217 CIR 31-Dec-08 31-Dec-09 31-Dec-10 (2) 2009 2013E Mortgage loans
Slide 15: Investment Banking: Another Record Year
Investment Banking: Another Record Year No 1 Investment Bank in Russia Financial Highlights (1) (in RUB bn) FY’10 FY’09 y-o-y Unparalleled combination of product offering, balance sheet, risk appetite Net result from financial instruments 19.8 20.0 -1.0% and human capital Net interest income 7.1 (
Slide 16: M&A Update
1. Key Investment Highlights 2. Macro-Economic Environment 3. Attractive Universal Banking Franchise 4. Clear Business Strategy and On-Track Delivery 5 M&A U 5. Update d t 6 Appendices 6. 15 © VTB 2011
Slide 17: M&A Update
M&A Update Structure Rationale 43 2% stake acquired as of Dec 31, 43.2% 31 2010 Further share purchase up to 75% minus 1 in Q2-Q3’11 Fits strategic model; brings client base and is ROE accretive Consolidated in FY’10 based on potential voting rights Corporate Banking benefits: financin
Slide 18: Appendices
6. Appendices 1. Financial Performance 2. VTB Group p Public Debt Instruments 3. VTB24 – Leading the Pack in Efficiency 17 © VTB 2011
Slide 19: FY'2010 Financial Highlights
FY’2010 Financial Highlights FY'10 FY'09 y-o-y 4Q'10 3Q'10 2Q'10 1Q'10 q-o-q (in RUB bn) Net interest income before provisions 171.1 152.2 12.4% 41.6 43.1 44.4 42.0 (3.5%) Net fee and commission income 24.7 21.0 17.6% 6.9 6.0 6.7 5.1 15.0% N t resultlt from Net f financial fi i l instruments i t t 1
Slide 20: VTB Group Financial Performance without TransCreditBank
VTB Group Financial Performance without TransCreditBank FY'10 FY'09 y-o-y (in RUB bn) w/o TCB Net interest income before provisions 171.1 152.2 12.4% N t fee Net f and d commission i i iincome 24 7 24.7 21 0 21.0 17 6% 17.6% Operating income before provisions 221.1 167.2 32.2% Provision charge for i
Slide 21: Solid Operating Income Growth Driven by Strong Margin
Solid Operating Income Growth Driven by Strong Margin Operating Income before Provisions y-o-y +32% 45.4 58.1 47.3 55.3 60.4 6.8 221.1 0.6 8.4 1.8 5.1 5.1 167.2 6.3 2.6 6.7 1.1 10.6 5.1 6.0 6.9 14.7 14.2 -25% 24.7 21.0 (RUB bn) 44.8 42.0 44.4 43.1 41.6 +18% 171.1 (RUB bn) 152.2 +12% (6.3) (5.6) 4Q'0
Slide 22: Costs Remain under Control
Costs Remain under Control Staff and Administrative Expenses y-o-y +24% 52.6% 45.9% 43 6% 43.6% 44 9% 44.9% 38.2% 45.7% 43.0% 23.9 24.1 27.1 22.2 21.7 95.1 ((RUB bn) 12.7 9.2 10.9 13.7 76.4 10.9 44.7 11.2 13.0 10 8 10.8 13.2 13.4 36 1 36.1 (RUB bn)) 4Q'09 1Q'10 2Q'10 3Q'10 4Q'10 50.4 40.3 Staff cost
Slide 23: Cost of Risk – Reaching Normalised Level
Cost of Risk – Reaching Normalised Level Quarterly P&L Provision Charge (2), w/o TCB Provision Charge (2), w/o TCB, y-o-y 4.3% 5.7% 2.5% 1.8% 1.9% 1.7% 1.4% 154.7 28.3 n) (RUB bn)) (RUB bn 15.5 13.1 11.7 11.3 51.6 4Q'09 1Q'10 2Q'10 3Q'10 4Q'10 FY'09 FY'10 Provision charge for loan impairment/ Averag
Slide 24: Healthy Balance Sheet Structure and Strong Capital Base
Healthy Balance Sheet Structure and Strong Capital Base Assets Structure Net Interest Spread, w/o TCB y-o-y Net interest spread Average yield on 4,291 Average cost of interest bearing interest earning assets Cash and liabilities 7% 3,611 3,628 3,753 mandatory 11.1% 10 4% 10.4% 10 4% 10.4% 9 8% 9.8%
Slide 25: VTB Group Public Debt Instruments
VTB Group Public Debt Instruments VTB Group G Public P bli Debt D bt Instruments I t t Outstanding O t t di Public Debt Repaid in 2010 and 2011(1) Equivalent Maturity amount Amount Borrower Instrument Date/Put or Coupon Borrower Instrument Repayment Date Coupon (mln)(1) (USD, mln)(1) Call Option 201
Slide 26: VTB Group Public Debt Instruments Issued in 2010-2011 Overview
VTB Group Public Debt Instruments Issued in 2010-2011 Overview Borrower Date of issue Amount (mln) Instrument Maturity date Coupon VTB March 2010 USD 1,250 Series 7 EMTN 2 March 2015 6.465% RUB 5,000 Domestic Stock VTB March 2010 RUB 5,000 March 2013 7.6% Exchange Bonds RUB 10,000 VTB August 2010 SG
Slide 27: VTB24 – Leading the Pack in Efficiency
VTB24 – Leading the Pack in Efficiency Number of Clients ATMs and Offices 10.0 1,000 9,000.0 531 600 504 9.0 SME ((ths)) 7.8 900 476 8 000 0 ATMs 8,000.0 500 8.0 Individuals (mln) 6.5 800 7,000.0 Offices 7.0 700 328 6,000.0 5,000 400 6.0 4.6 600 5,000.0 4,046 5.0 500 300 4,000.0 40 4.0 400 163 2.3 1
Slide 28: Investor Relations
Investor Relations Tel: +7 (495) 775-71-39 e mail: [email protected] e-mail: investorrelations@vtb ru 27 © VTB 2011