VTB · RUS:VTBR

VTB — Investor Presentation (April 2014)

19 slides from VTB's investor presentation, Apr 15, 2014

  1. Slide 1: VTB Group 2014 – 2016 Quality Growth Strategy Highlights

    VTB Group 2014 – 2016 Quality Growth Strategy Highlights Yulia Chupina / Deputy President and Chairman of VTB Bank Management Board Herbert Moos / Deputy President and Chairman of VTB Bank Management Board April 15, 2014 1 © VTB 2011

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

  3. Slide 3: VTB Market Position

    VTB Market Position (1) World Russia ● 14 mln retail & over 243,000 corporate customers Over 1,600 offices ● ` ● 23 countries of presence Belarus #2 retail bank ● ` ● Over 100,000 personnel #2 corporate bank ● ` Ukraine Serbia #1 investment bank ● $ $ Germany Georgia Russia United Kingdom Azerbaijan

  4. Slide 4: 2010-2013 Strategy Implementation Results: Key Balance Sheet Metrics

    2010-2013 Strategy Implementation Results: Key Balance Sheet Metrics Total assets Customer loans (1) RUB tr RUB tr 2.4х 2.6х 8.8 1.8х >2x 6.6 3.6 6.3-6.5 5.1-5.5 2.5 2009 2013 2013 2009 2013 2013 Target Actuals Target Actuals Customer deposits LDR RUB tr % Net customer loans / customer deposits 2.7х

  5. Slide 5: 2010-2013 Strategy Implementation Results: Key P&L and Efficiency Metrics

    2010-2013 Strategy Implementation Results: Key P&L and Efficiency Metrics Net F&C income as % of operating CIR income before provisions % % 49% 47% <40% 13% 13% ≈20% 2009 2013 2013 2009 2013 2013 Target Actuals Target Actuals Net profit ROE RUB bn % 100.5 15-20% 12% 120 - 140 n.m. 2009 0 2013 2013 -

  6. Slide 6: 2010-2013 Strategy Implementation Results: Key Underlying Drivers

    2010-2013 Strategy Implementation Results: Key Underlying Drivers Optional slide ● The Group strengthened its market position as a leading player in the corporate and investment business in Russia in all key products. ● VTB Capital is the leader in the Russian investment banking market. ● VTB24 is t

  7. Slide 7: 2014-2016 Macro and Russian Banking Sector Outlook

    2014-2016 Macro and Russian Banking Sector Outlook Base macroeconomic scenario for 2014-2016 average GDP growth average oil price inflation ≈2% p.a. 100-105 USD per barrel 4.0-4.5% p.a. Customer loans Customer deposits RUB tr RUB tr Corporate Corporate % CAGR % CAGR ≈10% 30 ≈8% 16% 22 17% 22 17 13 9

  8. Slide 8: 2014-2016: Strategy of Quality Growth

    2014-2016: Strategy of Quality Growth Maintaining the market position of the Corporate and Investment business while further improving its efficiency Outperforming market growth in Retail, and further increasing the share of Retail in the Group’s business mix Prioritising the medium-sized corporate

  9. Slide 9: Corporate and Investment Business Targets for 2016 in Russia

    2014-2016 Strategy: Corporate and Investment Business Targets for 2016 in Russia Large corporate business market in Russia (1) ● Over 1,700 companies. ● 47% of corporate banking revenues after cost of risk. ● 72% of corporate business client funds. ● Essential revenue source for investment banking b

  10. Slide 10: Strategic Initiatives in Corporate and Investment Business

    Strategic Initiatives in Corporate and Investment Business Revenue diversification 1 Extend customer relationship with top 300-500 clients the level of top 100 Developing transaction business 2 Emphasise cross-selling to corporate borrowers; introduce wider product range; streamline procedures to sh

  11. Slide 11: Medium-sized Corporate Business Targets for 2016 in Russia

    2014-2016 Strategy: Medium-sized Corporate Business Targets for 2016 in Russia Mid corporate business market in Russia ● Over 46,000 companies. ● 1/3 of corporate loans and 15% of customer deposits. ● 1/2 of corporate fees and commissions revenue. Market shares by product Financial efficiency 2013 2

  12. Slide 12: Strategic Initiatives in Mid Corporate Business

    Strategic Initiatives in Mid Corporate Business Improving client servicing and cross-sales 1 Adapt incentive models focusing on risk adjusted return per client; further develop CRM system; develop business with municipalities in target regions Organisational changes 2  Transform the existing branch

  13. Slide 13: Retail Business Targets for 2016 in Russia

    2014-2016 Strategy: Retail Business Targets for 2016 in Russia Retail business market in Russia ● Over 80 mln individual banking clients. ● Over 7 mln small business clients, including IPE and SST. (1) Market shares by product Financial efficiency 2013 2016 2013 2016 Operating income(2) RUB 177 bn ≈

  14. Slide 14: Strategic Initiatives in Retail Business

    Strategic Initiatives in Retail Business Aggressive growth of customer base and share of wallet 1 Increase customer penetration to 40-45% in affluent segment (VTB24), and to 20% in mass segment (Leto Bank); improve client conversion and retention, and proportion of active clients. Building a multi-c

  15. Slide 15: Key Objectives for Support and Control Functions

    2014-2016 Strategy: Key Objectives for Support and Control Functions Finance management  Implement economic capital and RORAC per client / product into the MIS. 1  Improve cost allocation approach in the Group and optimise purchasing processes.  Shorten closing time for annual and quarterly repor

  16. Slide 16: Cost Optimisation – Strategic Priority for VTB Group in 2014-2016

    Cost Optimisation – Strategic Priority for VTB Group in 2014-2016 Corporate and Investment Business 1  Total compensation decrease by 15% in 2014-2015 (VTB Bank and VTB Capital).  Efficiency increase of front and middle offices. Mid Corporate Business 2  VTB Bank and Bank of Moscow branch network

  17. Slide 17: VTB Group Key Financial Targets for YE2016

    VTB Group Key Financial Targets for YE2016 Total assets Customer loans RUB tr RUB tr ≈1.4х ≈1.4х ≈12-13 ≈9-10 8.8 6.6 2013 2016 2013 2016 Actuals Target Actuals Target Customer deposits Customer loans structure RUB tr % Corporate and Investment Business Target 120-125% Mid Corporate Business LDR Ret

  18. Slide 18: VTB Group Key Financial Targets for YE2016

    VTB Group Key Financial Targets for YE2016 Net F&C income as % NIM of operating income (1) CIR % % % 49% 13% ≈15-17% ≈42-43% ≈5% 4.5% 2013 2016 2013 2016 2013 2016 Actuals Target Actuals Target Actuals Target CoR Profit before tax structure Net profit % % RUB bn Corporate and Investment Business Tar

  19. Slide 19: Investor Relations

    Investor Relations Tel: +7 (495) 775-71-39 e-mail: investorrelations@vtb.ru 19 © VTB 2014

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