Vtb · RUS:VTBR

Vtb — FY2010 Earnings Presentation

20 slides from Vtb's earnings presentation, Apr 27, 2011

  1. Slide 1: VTB Group FY'2010 Results

    VTB Group FY’2010 Results Herbert Moos CFO, Deputy Chairman of the Management Board Jyrki Talvitie Senior Vice President, Head of Investor Relations April 27, 2011 1 © VTB 2011 2011

  2. 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

  3. Slide 3: FY'2010 Highlights – Delivered as Promised

    FY’2010 Highlights – Delivered as Promised ■ Record net profit in FY’2010 − RUB 54.8 bn ■ Corporate Banking posts a solid FY’2010 pre-tax profit of RUB 35.0 bn, Retail and Investment Banking – RUB 23.4 bn and RUB 25.5 bn, respectively ■ Solid growth of operating income before provisions − 32% y-o-y

  4. Slide 4: 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 iinstruments t t 14

  5. Slide 5: 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

  6. Slide 6: Business Update

    Business Update 6 © VTB 2011 2011

  7. Slide 7: Corporate Banking: First Steps in Transformation

    Corporate Banking: First Steps in Transformation Corporate Loans (Gross) Financial Highlights (1) +19% +19% (in RUB bn) FY’10 FY’09 y-o-y +13% Net interest income 109.7 102.2 7.3% 2,374 2,340 2,518 2,110 2,121 142 TCB Net fee and commission income 10.5 11.0 (4.5%) (RUB bn) Operating income before pr

  8. Slide 8: Retail Banking: Gaining Market Share

    Retail Banking: Gaining Market Share Loans to Individuals (Gross) Financial Highlights (1) 10.2% 10.7% 12.1% (in RUB bn) FY’10 FY’09 y-o-y +24% +10% 10% 542 Net interest income 53.6 43.6 22.9% 435 442 457 3 419 53 4 3 30 25 4 52 Net fee and commission income 10.2 6.8 50.0% 46 50 46 268 TCB 183 191 2

  9. Slide 9: Investment Banking: Another Record Year

    Investment Banking: Another Record Year League tables and major deals Financial highlights (1) Russia-related Domestic DCM (in RUB bn) FY’10 FY’09 y-o-y international DCM Lead Amount, # of Share, # Lead Amount # of Share, Net result from financial # Manager RUB mln issues % 19 8 19.8 20 0 20.0 -1.0%

  10. Slide 10: Financial Update

    Financial Update 10 © VTB 2011 2011

  11. Slide 11: 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

  12. Slide 12: 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

  13. Slide 13: 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

  14. Slide 14: 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% 11.1% 3,611 3,628 3,753 mandatory 10 4% 10.4% 10 4% 10.4% 9 8% 9.8%

  15. Slide 15: M&A Update

    M&A Update 15 © VTB 2011 2011

  16. Slide 16: TransCreditBank – Acquisition with Strategic Fit

    TransCreditBank – Acquisition with Strategic Fit  Rationale  Structure  Fits strategic g model;; brings g client base and  43 2% stake acquired as of Dec 31, 43.2% 31 2010 is ROE accretive  Further share purchase up to 75% minus 1 in  Corporate Banking benefits: financing the Q2-Q3’11 Russian

  17. Slide 17: Bank of Moscow – Acquisition with Compelling Rationale

    Bank of Moscow – Acquisition with Compelling Rationale  Rationale  Structure  5th largest bank by assets in Russia with  46.5% acquired from the City of Moscow significant presence in particular, in the lucrative Moscow region  25%+1 share acquired in the Metropolitan Insurance Group, which hol

  18. Slide 18: Appendix

    Appendix 18 © VTB 2011 2011

  19. Slide 19: 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

  20. Slide 20: 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

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