Mkb · RUS:CBOM

Mkb — Q1 2017 Earnings Presentation

9 slides from Mkb's earnings presentation, May 22, 2017

  1. Slide 1: Webcast and Conference call: 1Q2017 financial results

    Webcast and Conference Investor Presentation call Vladimir Chubar CEO, Member of the 1Q2017 financial results Supervisory Board Eric de Beauchamp Senior Vice President 22 May 2017 February 2017

  2. Slide 2: Financial highlights

    Financial highlights Income statement Key metrics of financial 3m2017 3m2016 Change, % (RUB bln) performance Net interest income 10.4 9.1 + 14.0% Net fee and commission income 3.7 2.5 + 47.6% Profit increased by 2.8 times as Profit for the period 4.6 1.7 + 177.1% compared with 1Q2016 based on NIM 3.

  3. Slide 3: Business highlights: corporate lending remains a key driver for growth

    Business highlights: corporate lending remains a key driver for growth Loan book (gross) dynamics Corporate and retail loan book breakdown (1Q2017) (RUB bln) 4% 1% 684 11% 667 4% 22% 630 4% 22% 73% 6% 6% 11% 8% 566 587 10% 510 +11.0% +3.7% 86% 8% 9% Oil&chemicals Property rental Other loans to indiv

  4. Slide 4: High operating efficiency maintained: CTI of 26.0%

    High operating efficiency maintained: CTI of 26.0% Operating income Operating expenses (RUB bln) Net interest income Other net income (RUB bln) Salaries and employment benefits Other expenses1 (loss) Net fee and commission income Administrative expenses Cost-to-income ratio 14.3 29.3% 26.0% +73.7% +

  5. Slide 5: Emphasis on highly liquid assets

    Emphasis on highly liquid assets Asset structure High quality securities portfolio (RUB bln) -5% 5% - Liquid assets 1,568 35 1,489 36 2% 1,208 373 369 95% 40 138 130 -10% 56% 114 160 Government and municipal bonds Corporate bonds 403 328 277 93 90 111 The securities portfolio is used as a liquidity

  6. Slide 6: Loan portfolio quality is improving

    Loan portfolio quality is improving Gross loan portfolio coverage by impairment allowance NPL1 and provisioning dynamics (RUB bln) (RUB bln) 684 325% 653 667 634 621 263% 600 450 148% 7.4% 122% 117% 300 6.5% 5.6% 6.0% 6.1% 10 9 8 150 41 46 37 40 42 24 22 23 7 8 0 8 5 1Q2016 1H2016 3Q2016 2016 1Q2017

  7. Slide 7: NPL coverage by provisions maintained at a safe level

    NPL coverage by provisions maintained at a safe level Corporate Loan Book Retail Loan Book % Cost of Risk % LLP / NPL 90+ 4.4% 6.5% 5.1% 96% 103% 99% 587 12.0 566 510 119 101 540 10.0 120 480 8.4 7.9% 97 420 5.8% 5.8% 7.2 7.5% 7.9% 8.0 360 5.4% 6.0 7.6% 7.8% 300 4.8 60 7.3% 6.0 240 180 4.5% 3.6 2.4

  8. Slide 8: Customer deposits are main source of funding

    Customer deposits are main source of funding Liabilities breakdown Debt securities comfortable repayment schedule (RUB bln) -6% (RUB bln) 65 1,465 1,381 USD 394 million were 137 repaid in April 2017 123 9% 39 1,116 382 54 5 288 21% 121 19 85 32 4 200 14% 247 19 11 2 2017 2018 2019+ + 10% Domestic Bo

  9. Slide 9: Strong capital position

    Strong capital position Recent changes IFRS capital adequacy ratios (Basel III)1 (RUB bln) 19.0% 16.5% 14.7%  April, 2017: USD 500 mln CBOM 18 subordinated T2 Eurobond issue was 10.7% 9.2% 9.4% partially redeemed in the amount of USD393.795 mln 189.3 162.2 159.8 91.0 101.9 106.5  April, 2017: USD

Credit Bank of Moscow (MKB) — Q1 2017 Earnings Presentation on 6ix