Vtb · RUS:VTBR
Vtb — VTB Bank — Q1 2018 Earnings Presentation
22 slides from Vtb's earnings presentation, May 17, 2018
Slide 1: 1Q'2018 Results
1Q’2018 Results May 17, 2018 Herbert Moos Deputy Chairman of the Management Board Dmitry Pyanov Senior Vice President, Head of Finance Department Leonid Vakeyev Head of Investor Relations 1
Slide 2: Results in Brief
RESULTS IN BRIEF RUB bn Net profit ROE Gross loans NPL ratio 55.5 15.6% 9,953 7.1% 2.0х y-o-y + 7.7 ppt y-o-y + 1% YTD +20 bp YTD Net interest income NIM Loans to Loans to legal individuals entities 116.3 + 3% y-o-y 4.1% flat y-o-y +3% YTD +1% YTD Net fee & CoR Customer LDR commission income deposit
Slide 3: Summary of Key Impacts from Adoption of IFRS 9
SUMMARY OF KEY IMPACTS FROM ADOPTION OF IFRS 9 Forward-looking expected credit loss (ECL) approach 1Q’2018 results are based on IFRS 9, prior introduced with the adoption of IFRS 9, effective periods are based on IAS 39. January 1st, 2018, which is intended to result in an earlier Therefore, the rel
Slide 4: Interest Income and Average Yields
INTEREST INCOME AND AVERAGE YIELDS Interest income and average yields RUB bn 10.6% 10.2% Yield on customer 10.2% 10.1% 10.0% 9.4% loans Yield on total interest 9.8% 9.5% 9.4% 9.3% 9.1% bearing assets 8.7% 1,056.2 8% -7% Interest income on other interest bearing 267.5 262.4 265.3 261.0 248.2 92% asse
Slide 5: Interest Expense and Cost of Funds
INTEREST EXPENSE AND COST OF FUNDS Interest expense and cost of interest bearing liabilities RUB bn Cost of total interest bearing liabilities 6.0% 5.7% 5.7% 5.6% Cost of customer 5.3% 4.9% deposits 5.7% 5.5% 5.3% 5.1% 4.9% 4.7% -15% Interest expense on 596.0 other interest bearing 25% liabilities (
Slide 6: Net Interest Income and NIM
NET INTEREST INCOME AND NIM Net interest income RUB bn +3% 460.2 113.0 114.1 116.6 116.5 116.3 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 FY'17 Net interest margin(1) flat 4.1% 4.1% 4.1% 4.1% 4.1% 4.1% 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 FY'17 (1) Calculated as net interest income (adjusted for payments to deposit ins
Slide 7: Fee and Commission Income
FEE AND COMMISSION INCOME Fee and commission income breakdown RUB bn 129.6 +12% 4% 14% Other 8% Insurance products distribution 36.5 10% and other agency services 32.0 33.3 5% 31.0 Operations with securities 4% 4% 12% 5% 27.8 and on capital markets 3% 16% 17% 10% 14% 12% 7% 7% 7% Guarantees and othe
Slide 8: Staff and Administrative Expenses
STAFF AND ADMINISTRATIVE EXPENSES Staff costs and administrative expenses RUB bn 44.0% 42.4% 46.5% 48.8% 40.3% 41.3% Cost / Income ratio Cost / Avg. assets 2.0% 2.0% 1.9% 2.3% 2.0% 2.1% 260.9 +2% 105.7 Administrative expenses 75.9 61.6 61.0 62.4 63.1 31.5 155.2 Staff costs (1) 23.2 23.5 27.5 23.4 38
Slide 9: Provision Charge and Cost of Risk
PROVISION CHARGE AND COST OF RISK Provision charge for impairment of loans RUB bn 1.6% 151.5 1.9% 1.8% 1.5% 1.2% 0.9% 45.5 Cost of risk (1) Provision charge for impairment of loans 43.4 42.7 106.0 to individuals 36.4 29.0 8.9 15.8 20.8 9.9 Provision charge 10.9 33.8 12.0 for impairment of loans 27.6
Slide 10: Loan Book Quality
LOAN BOOK QUALITY Provision for loan impairment RUB bn NPLs (90+) RUB bn Pre-IFRS 9 Post-IFRS 9 Pre-IFRS 9 Post-IFRS 9 7.9% 7.9% 6.5% 6.3% 6.4% 6.9% 7.1% 7.0% 6.6% 6.6% 5.7% 6.2% +2% +4% 614 680 705 734 745 604 601 558 653 632 633 601 31-Mar-17 30-Jun-17 30-Sep-17 31-Dec-17 01-Jan-18 31-Mar-18 31-Ma
Slide 11: Gross Loan Portfolio Breakdown under IFRS 9
GROSS LOAN PORTFOLIO BREAKDOWN UNDER IFRS 9 By measurement approach Provision charge Loans at amortised cost by ELC stages by ECL stages +1% 9,841 9,953 20.8 9,424 5% 93% 5% Stage 1: Stage 1 2% 1% 12 month ECL Allowance ratio: 28.9% 1% 2% 5% 93% 94% 21% Stage 2: Stage 2 39% LECL 78.0% Allowance rati
Slide 12: Loan Portfolio and Customer Deposits
LOAN PORTFOLIO AND CUSTOMER DEPOSITS Loans and advances to customers RUB bn Customer deposits RUB bn Pre-IFRS 9 Post-IFRS 9 Pre-IFRS 9 Post-IFRS 9 106.8% 104.4% 99.2% 100.3% 99.6% 98.7% +2% +1% Customer loans / customer deposits 9,066 9,145 9,145 9,333 9,334 9,516 9,627 9,773 9,851 9,953 8,130 8,511
Slide 13: Business with Legal Entities
BUSINESS WITH LEGAL ENTITIES Loans to legal entities RUB bn Deposits of legal entities RUB bn Pre-IFRS 9 Post-IFRS 9 Pre-IFRS 9 Post-IFRS 9 +1% 0% 7,194 7,200 7,287 7,307 7,354 7,105 5,399 5,735 5,523 5,523 5,514 5,228 20% 25% 25% 24% 25% 24% 75% 76% 80% 75% 75% 76% 31-Mar-17 30-Jun-17 30-Sep-17 31-
Slide 14: Business with Individuals
BUSINESS WITH INDIVIDUALS Loans to individuals RUB bn Deposits of individuals RUB bn Pre-IFRS 9 Post-IFRS 9 Pre-IFRS 9 Post-IFRS 9 +6% +3% 3,819 3,622 3,622 3,331 24% 2,486 2,534 2,599 2,902 3,112 25% 25% 2,322 2,426 23% 2,229 22% 21% 46% 47% 48% 48% 45% 45% 6% 5% 5% 5% 5% 6% 75% 75% 76% 4% 4% 4% 4%
Slide 15: Asset Structure
ASSET STRUCTURE Assets structure RUB bn Assets by currency % Pre-IFRS 9 Post-IFRS 9 +1% 12,894 13,009 12,947 13,109 12,460 12,609 5% 7% 7% 5% 68% 6% 4% 5% 4% 4% 4% 4% 5% 9% 7% 8% 6% 6% 8% 32% 70% 70% 70% 70% 70% 70% 68% 32% 12% 12% 13% 12% 12% 13% 01-Jan-18 31-Mar-18 31-Mar-17 30-Jun-17 30-Sep-17 31
Slide 16: Liabilities Structure
LIABILITIES STRUCTURE Liabilities structure RUB bn Liabilities by currency % Pre-IFRS 9 Post-IFRS 9 +1% 11,444 11,530 11,530 11,640 11,024 11,177 65% 9% 9% 10% 9% 11% 12% <1% <1% <1% <1% 3% <1% 36% 79% 79% 79% 80% 74% 76% 64% 35% 6% 6% 6% 7% 6% 6% 4% 3% 3% 3% 3% 2% 2% 2% 2% 2% 2% 2% 01-Jan-18 31-Mar
Slide 17: Capital Structure
CAPITAL STRUCTURE Basel capital RUB bn Pre-IFRS 9 Post-IFRS 9 15.0% 14.6% 14.5% 14.8% 14.4% 14.5% Total CAR 13.4% 13.1% 12.9% 13.1% 12.7% Tier I ratio 12.6% +3% 1,514 1,515 1,456 1,454 1,472 1,466 155 156 157 170 182 181 Total capital 1,301 1,297 1,315 1,345 1,283 1,334 Tier I 31-Mar-17 30-Jun-17 30
Slide 18: FY'2018 Guidance
FY’2018 GUIDANCE Russia GDP growth Loan growth Loan growth vs Net profit legal entities market legal entities RUB bn 2.0% 5% In line ≥150 CPI Loan growth Loan growth vs NIM individuals market individuals 4% 11% Above 4% Oil price Deposit growth Deposit growth vs CIR Urals, avg legal entities market
Slide 19: VTB Group Financial Highlights: P&L and Key Ratios
VTB GROUP FINANCIAL HIGHLIGHTS: P&L AND KEY RATIOS Income statement key indicators Key selected items (in RUB bn) 1Q’18 1Q’17 Change FY’17 Net interest income 116.3 113.0 2.9% 460.2 Net fee and commission income 21.9 19.7 11.2% 95.3 Net other income 14.4 12.5 15.2% 37.0 Operating income before provi
Slide 20: VTB Group Financial Highlights: Balance Sheet
VTB GROUP FINANCIAL HIGHLIGHTS: BALANCE SHEET Balance sheet key indicators Key selected items (in RUB bn) 31-Mar-2018 01-Jan-18 Change 31-Dec-2017 30-Sep-2017 30-Jun-17 31-Mar-2017 Gross loan portfolio 9,952.8 9,841.1 1.1% 9,772.8 9,626.5 9,515.8 9,333.8 Loans to legal entities 7,353.5 7,307.4 0.6%
Slide 21: Disclaimer
DISCLAIMER This presentation has been prepared by VTB Bank (PJSC) (“VTB”) and has not been independently verified. This presentation does not constitute or form part or all of, and should not be construed as, any offer of, or any invitation to sell or issue, or any solicitation of any offer to purch
Slide 22: Investor Relations
Investor Relations Tel: +7 (495) 775-71-39 e-mail: investorrelations@vtb.ru 22