Vtb · RUS:VTBR

Vtb — Investor Presentation (August 2013)

26 slides from Vtb's investor presentation, August 2013

  1. Slide 1: Investor Presentation

    Investor Presentation August 2013 1 © VTB 2013

  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: Macroeconomic Environment and Russian Banking Sector

    Macroeconomic Environment and Russian Banking Sector 3 © VTB 2013

  4. Slide 4: Macroeconomic Environment and Outlook

    Macroeconomic Environment and Outlook Russia: growth slowdown coming to an end Inflation path: strong disinflation ahead Key economic indicators, % Headline CPI, % YoY 10% 12.0 VTBC 10.2 9% forecast 10.0 8.6 8% 8.0 6.4 6.6 7% 6.0 6.0 5.0 4.3 3.9 4.2 6% 3.4 3.7 3.5 4.0 2.8 3.0 5% 2.4 1.5 2.0 4% 0.0 3

  5. Slide 5: Long Term Potential – Solid Opportunities for Banking Business Development

    Long Term Potential – Solid Opportunities for Banking Business Development Commentary Growth potential driven by low penetration Retail is an important source of growth and margin Gross loans as % of GDP (1H’2012) Retail loans as % of GDP (1H’2012) 90% 118% 80% 28% 26% 59% 70% 56% 23% 60% 51% 49% 47

  6. Slide 6: VTB Group – an attractive equity story

    VTB Group – an attractive equity story 6 © VTB 2013

  7. Slide 7: VTB: Successful Growth Story – through Organic Growth and M&A

    VTB: Successful Growth Story – through Organic Growth and M&A VTB corporate history Establishment and Development and Efficient growth recognition growth strategy 1990-2001 2002-2010 2010-2013  Established in October 1990  2005: Launched VTB24  2010: Launched its new strategy  VTB Bank joined th

  8. Slide 8: VTB: Unique Business Model – Universal Banking Platform

    VTB: Unique Business Model – Universal Banking Platform Incorporating CIB, Retail Banking and Other Financial Services Corporate-investment banking Retail banking Retail banking Corporate banking Transaction banking Investment banking ■ Significant scale and strong A separate transaction ■ Strong fr

  9. Slide 9: Corporate-Investment Banking

    Corporate-Investment Banking Corporate loan market in Russia VTB Group corporate loan portfolio VTB corporate loan market share in Russia +3% 15.5% 14.7% 14.7% +11% 13.0% 12.2% 40,000 2 2 2 16.0% 4,100 35,000 14.0% 2 2 3,965 (RUB bn) 30,000 12.0% 3,752 (RUB bn) 25,000 10.0% 3,690 3,696 20,000 8.0% 2

  10. Slide 10: Retail Banking

    Retail Banking Retail loan market in Russia VTB Group retail loan portfolio VTB retail loan market share in Russia +39% +7% 13.7% 13.3% 13.6% 12.1% 15.0% 1,193 Cash & credit 12,000 2 2 2 1,120 card loans & 10.2% 13.0% 1,027 10,000 2 950 other 11.0% 861 669 (RUB bn) 2 (RUB bn) 627 8,000 8,098 9.0% 52

  11. Slide 11: Value Creation through New Initiatives. Launch of Leto Bank in 2012

    Value Creation through New Initiatives. Launch of Leto Bank in 2012 Segment-oriented approach in servicing retail customers Leto Bank – new retail mass market initiative ▪ Dedicated communication channels: Established as an organic addition to premium branches, separate web platform VTB Group's reta

  12. Slide 12: VTB: Strong Investment Opportunity

    VTB: Strong Investment Opportunity Leading player in Russia National champion  Leading Russian bank with strong and Rank 2 2 2 2 2 consolidated positioning in all key segments Market 15.2% 14.7% 18.2% 13.6% – #2 by assets and all key banking metrics 9.0% share – Russia represents c. 75% of total as

  13. Slide 13: Attachments

    Attachments 1. VTB Group Financials 14 2. VTB Group Public Debt Instruments 22 13 © VTB 2013

  14. Slide 14: VTB Group Financials

    VTB Group Financials 14 © VTB 2013

  15. Slide 15: VTB Group 1Q'2013 and FY'2012 Financial Highlights: P&L and Key Ratios

    VTB Group 1Q’2013 and FY’2012 Financial Highlights: P&L and Key Ratios Income Statement – Key Indicators (in RUB bn) 1Q’2013 1Q’2012 y-o-y FY’2012 FY’2011 y-o-y Net interest income before provisions 73.8 54.0 36.7% 246.0 227.0 8.4% Net fee and commission income 11.5 10.3 11.7% 48.3 39.2 23.2% Net re

  16. Slide 16: VTB Group 1Q'2013 and FY'2012 Financial Highlights: Balance Sheet

    VTB Group 1Q’2013 and FY’2012 Financial Highlights: Balance Sheet Balance Sheet – Key Indicators (in RUB bn) 31-Mar-2013 31-Dec-2012 YTD 31-Dec-2012 31-Dec-2011 y-o-y Gross loan portfolio 5,292.7 5,084.8 4.1% 5,084.8 4,590.1 10.8% - corporate loans 4,100.1 3,964.6 3.4% 3,964.6 3,766.0 5.3% - retail

  17. Slide 17: VTB Group 1Q'2013 Segment Analysis

    VTB Group 1Q’2013 Segment Analysis Corporate – Investment Banking 1Q’2012 1Q’2013 Segment result (profit before tax) -21% 52.9 +38% 41.7 -50% 29.0 21.0 +4% 21.7 20.6 (RUB bn) 10.2 5.5 5.7 4.7 3.5 3.5 Net interest Net fee and Net result from Treasury result Operating income 1Q’2012 1Q’2013 income com

  18. Slide 18: Strong Core Banking Income Supported by Stable NIM

    Strong Core Banking Income Supported by Stable NIM Operating income before provisions (1) and Net interest margin (2) 4.6% 4.5% 4.1% 4.1% Net interest margin 3.8% Net fee and commission income 110.4 95.4 96.8 14.1 92.9 Net interest income 10.3 12.4 before provisions 66.9 11.5 11.5 Net result from fi

  19. Slide 19: Staff and Administrative Expenses

    Staff and Administrative Expenses Staff costs and administrative expenses 66.7% 49.4% 51.4% 53.0% 45.4% 56.7 49.2 Cost / Income ratio 47.8 (RUB bn) 42.5 44.6 21.9 29.9 20.3 19.8 20.4 Administrative expenses 22.7 24.2 25.9 26.8 28.9 Staff costs (1) 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2.6% 2.7% 2.7% 3.1% 2.

  20. Slide 20: Asset Quality

    Asset Quality Сost of risk 1.7% 1.6% 1.0% 1.0% 1.1% Provision charge for loan impairment / Average gross 22.0 20.4 loan portfolio 14.4 11.9 12.7 Provision charge for (RUB bn) impairment of debt financial assets 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 NPL and loan-loss reserves NPL coverage ratio 6.6% 6.8% 6.6

  21. Slide 21: Balance Sheet Structure

    Balance Sheet Structure Assets structure Customer loans / customer deposits 7,416 7,603 7,185 9% 6,858 9% 6,451 9% 6% Cash and mandatory 13% 13% 6% reserves 15% 15% 12% 5% 3% 132.7% 4% Securities 129.6% 6% 6% portfolio (1) 127.6% 125.9% 126.7% Due from other banks 64% 65% 63% 62% Loans to customers

  22. Slide 22: VTB Group Public Debt Instruments

    VTB Group Public Debt Instruments 22 © VTB 2013

  23. Slide 23: VTB Group Public Debt and Hybrid Capital Instruments

    VTB Group Public Debt and Hybrid Capital instruments VTB Group public debt instruments outstanding (1) VTB Group public debt instruments outstanding Equivalent amount Maturity Date/Put Equivalent amount Maturity Date/ Put Borrower Instrument Coupon Borrower Instrument Coupon (USD, mn) or Call Option

  24. Slide 24: VTB Group International Public Debt Instruments Issued in 2012-2013

    VTB Group International Public Debt Instruments Issued in 2012-2013 Borrower Date of issue Amount (mln) Instrument Maturity date Coupon/rate VTB April 2012 USD 2,000 Series 15 EMTN 2 April 2017 6.0% July 2012 SGD 400 Series 17 EMTN 2 July 2015 4.0% VTB USD 2,250 Tier 1 Perpetual Loan VTB August 2012

  25. Slide 25: Hybrid Tier I Perpetual Bond

    Hybrid Tier I Perpetual Bond In August 2012, VTB Bank issued USD 1 bn 9.5% Perpetual Loan Participation Notes In November 2012, VTB Bank issued an additional issuance of USD 1.25 bn 9.5% Perpetual Loan Participation Notes Key features ■ Full equity treatment under IFRS ■ Included in VTB’s Tier 1 Cap

  26. Slide 26: Investor Relations

    Investor Relations Tel: +7 (495) 775-71-39 e-mail: investorrelations@vtb.ru 26 © VTB 2013

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