Vtb · RUS:VTBR

Vtb — FY2007 Earnings Presentation

22 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: investorrelations@vtb.ru 22 © VTB 2008

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