Vtb · RUS:VTBR
Vtb — FY2009 Earnings Presentation
28 slides from Vtb's earnings presentation, Mar 30, 2010
Slide 1: VTB Group FY'2009 results
VTB Group FY’2009 results Herbert Moos, CFO, Deputy Chairman of the Management Board March 30, 2010 Moscow 1 © VTB 2009
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 ("VTB") and its subsidiaries (together with VTB, the "Group"). Such forward-looking statements are based on numerous assumpt
Slide 3: FY'2009 Highlights
FY’2009 Highlights VTB is emerging as a diversified banking group with a unique combination of Corporate, Retail and Investment Banking businesses Successful start of the implementation of Corporate Investment Banking (CIB) – adding potential for stronger revenue growth Strong results in Retai
Slide 4: FY'2009 Financial highlights
FY’2009 Financial highlights (in RUB billion) FY’09 FY’08 YoY Net interest income 152.2 113.6 34.0% Net fee and commission income 21.0 16.3 28.8% Core income 173.2 129.9 33.3% Provision for loan impairment -154.7 -63.2 144.8% Staff costs and administrative expenses -76.4 -67.5 13.2% Net loss/profit
Slide 5: Business update
Business update 5 © VTB 2009
Slide 6: Corporate Banking – managing risk and creating potential
Corporate Banking – managing risk and creating potential Corporate debt financing Financial highlights (1) 12.7% 13.0% 10.7% (in RUB billion) FY’08 FY’09 YoY + 2% Revenues 173.8 287.5 65.4% 2,374 2,555 2,462 2,565 2,421 Operating income before provisions 89.3 95.3 6.7% RUB billion 1,523 111 117 146
Slide 7: Retail Banking – outperforming the market
Retail Banking – outperforming the market Loans to individuals (gross) Financial highlights (1) 10.2% 8.8% (in RUB billion) FY’08 FY’09 YoY 5.9% Revenues 61.9 88.4 42.8% +12% Operating income before provisions 36.6 51.5 40.7% Profit before tax 5.5 7.2 30.9% 410 413 421 435 387 48 53 61 71 RUB billio
Slide 8: Top tier performance in Investment Banking
Top tier performance in Investment Banking Global Banking (1) Financial highlights (3) Market Share VTB Capital Amount # of deals (in RUB billion) FY’08 FY’09 YoY position (%) DCM - Russia & CIS Eurobonds 1 USD 2.8 bn 9 14.7 Revenues 23.0 50.3 118.7% DCM - Russian local bonds 1 RUB 277 bn 39 24.1 Op
Slide 9: Financial update
Financial update 9 © VTB 2009
Slide 10: Growth in core income reflects underlying pre-provision earnings potential
Growth in core income reflects underlying pre-provision earnings potential Quarterly core income Core income, YoY +38% +33% 51.1 173.2 41.4 42.1 37.0 38.6 6.3 129.9 21.0 29.7 34.4 5.4 5.0 28.8 4.7 4.3 16.3 +29% RUB billion 4.1 RUB billion 3.5 4.0 44.8 152.2 32.3 34.3 36.0 37.1 113.6 +34% 26.2 24.8 3
Slide 11: Costs under control with better than expected delivery
Costs under control with better than expected delivery Staff and administrative expenses Staff and adm. expenses, YoY +16% +13% 57.4% 55.1% 50.6% 44.3% 44.3% 44.9% 46.8% 51.9% 39.9% 44.1% 23.9 20.7 18.6 1.9 RUB billion 17.1 17.1 RUB billion 16.6 16.8 67.5 76.4 13.1 10.2 10.8 7.6 7.2 7.3 8.1 8.0 36.1
Slide 12: Prudent coverage, asset quality deterioration slowing down
Prudent coverage, asset quality deterioration slowing down Quarterly P&L provision charge P&L provision charge 7.1% 6.6% +149% 4.8% 4.3% 3.8% 4.3% 5.7% RUB billion RUB billion 2.2% 49.2 47.4 3.2% 1.2% 154.7 30.0 29.8 28.3 19.0 63.2 9.5 4.7 1Q’08 2Q’08 3Q’08 4Q’08 1Q’09 2Q’09 3Q’09 4Q’09 FY’08 FY’09
Slide 13: Restructurings: mostly completed
Restructurings: mostly completed Renegotiated loans (EOP) (in RUB billion) 31-Dec-09 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08 Renegotiated loans 300.5 225.7 78.8 23.6 16.3 - corporate 283.7 220.9 74.1 23.1 14.8 - individuals 16.8 4.8 4.7 0.5 1.5 Renegotiated loans / Total gross loans 11.8% 8.3% 2.9%
Slide 14: Sistema-Hals fully consolidated in 4Q'09
Sistema-Hals fully consolidated in 4Q’09 Share of VTB 51.24% Assets RUB 48 bn Fair value of net assets as at date of acquisition of control RUB -7 bn Goodwill on acquisition attributable to VTB RUB 3.7 bn Write-off of goodwill in 2009 RUB -3.7 bn Implications Established VTB control over corporate
Slide 15: Net result affected by substantial provisions
Net result affected by substantial provisions VTB Group performance Net result 51.1 1Q’09 2Q’09 3Q’09 4Q’09 38.6 41.4 42.1 RUB billion 13.6 7.2 -9.5 -13.0 -17.1 -18.6 -16.8 -11.0 -14.0 -14.1 -23.9 -29.8 -28.3 -20.5 -49.2 -47.4 Core income Provisions Staff costs and Other items (1) Net result adminis
Slide 16: Assets: sustained credit supply to the economy
Assets: sustained credit supply to the economy Total assets Asset yield, YoY Yield on total average interest earning assets(1) 11.2% 10.2% 11.0% 11.4% 11.2% 10.9% 11.1% 10.2% FY’08 FY’09 9.7% 10.0% 9.5% Assets structure -2% Cash and 11% 3,813 mandatory 3,697 3,637 3,584 3,611 reserves 8% 627 620 607
Slide 17: Liabilities: improved funding structure
Liabilities: improved funding structure Total liabilities Liabilities structure Cost of total average interest bearing liabilities(1) Customer 33% 7.5% 7.3% 7.2% deposits 51% 6.8% 5.8% 6.4% 5.6% 5.3% 5.5% 3,431 Other 3,305 3,275 26% 3,054 3,106 borrowed funds 15% 849 925 660 462 471 2,460 Due to ban
Slide 18: Strong capital base and liquidity
Strong capital base and liquidity BIS Group capital 19.5% 20.7% 17.6% 17.3% 16.5% 16.3% 15.8% 15.5% 14.0% 14.0% 16.1% 14.8% 15.0% 14.4% 10.5% 9.9% 10.3% 12.7% 712 680 606 566 411 546 204 195 417 421 418 RUB billion 239 206 205 34 36 37 39 509 485 383 385 382 372 368 360 341 31-Dec-07 31-Mar-08 30-Ju
Slide 19: Funding plan 2010
Funding plan 2010 VTB Group may borrow up to US$ 5 billion from financial markets Key borrowing principles Diversification across investor base, geography and borrowing instruments to minimise liquidity risk and optimise funding costs Centralised Group liquidity management by Corporate Treasury
Slide 20: Strategy update
Strategy update 20 © VTB 2009
Slide 21: "Road to 15" - 3-year strategy of VTB Group
"Road to 15“ - 3-year strategy of VTB Group 21 © VTB 2009
Slide 22: Appendix
Appendix 22 © VTB 2009
Slide 23: VTB Group public debt instruments issued in 2009 and 2010
VTB Group public debt instruments issued in 2009 and 2010 Borrower Date of issue Amount (million) Instrument Maturity date/ Put or call Coupon option VTB24 February 2009 RUB 8,000 Domestic Ruble Bond February 2014 11.85% (1.5 year put option) VTB-Leasing June 2009 RUB 5,000 Domestic Ruble Bonds June
Slide 24: VTB Group public debt instruments outstanding
VTB Group public debt instruments outstanding Maturity Date/Put or Borrower Amount (US$, mln)(1) Instrument Coupon Call Option 2010 Subordinated Debt Instrument (call VTB N-W 400 September 2010 6.2% option) VTB 1,016 November 2010 8.75% Series 3 RUB EMTN 2 (put option) Members of VTB Group 561 Loans
Slide 25: VTB Group debt maturity profile
VTB Group debt maturity profile (1) Debt repaid in 2010 Borrower Amount (mln)(1) Instrument Repayment date Coupon VTB $750 Subordinated Debt Instruments Feb. 2010 (call option) 6.315% Series 12 under EMTN VTB £234 March 2010 6.332% programme No.1 2,867 Members of $99 Loans repayment/amortization dur
Slide 26: VTB Capital league tables
VTB Capital league tables DCM league tables 2009 ECM league tables 2009 Eastern Europe International and Local Bonds Russia and CIS Eurobonds Amount, # of Share, Amount, # of Share, Amount, # of # Lead Manager # Lead Manager # Lead Manager Share, % USD mln. issues % USD mln. issues % RUB mln. issues
Slide 27: VTB Group branch network
VTB Group branch network VTB Group branch network 31-Dec-09 30-Sep-09 Δ q-o-q 30-Jun-09 31-Mar-09 31-Dec-08 Δ y-o-y Branches 941 949 -8 966 980 1,020 -79 Russia 649 653 -4 661 665 693 -44 of which VTB24 476 476 0 480 480 504 -28 CIS & Europe 292 296 -4 305 315 327 -35 VTB Group employees 31-Dec-09 3
Slide 28: Investor Relations
Investor Relations Tel: +7 (495) 775-71-39 e-mail: investorrelations@vtb.ru 28 © VTB 2009