Vtb · RUS:VTBR
Vtb — H1 2004 Earnings Presentation
18 slides from Vtb's earnings presentation, November 2004
Slide 1: Presentation of 1H2004 IFRS Results
Presentation of 1H2004 IFRS Results November 2004
Slide 2: Main highlights of 1H2004
Main highlights of 1H2004 Healthy growth in different business segments: — Rapid asset base growth — Loan portfolio growth — Diversification of funding base Core income continued to show good growth rates: — Net interest income grew by 46% y-o-y — Net fee and commission income grew by 53% y-o-y Capi
Slide 3: Business highlights
Business highlights Continued development of the franchise: VTB opened 5* new branches in Russia, more than 20* offices in Moscow and regions VTB added 76 branches and sub branches operating under Guta brand through acquisition of Guta bank in July 2004 In September 2004, VTB signed a non-binding me
Slide 4: Net Interest income
Net Interest income Net Net interest interest income income Interest Interest Income Income composition composition 250 450 400 201 400 200 94 350 294 MM USD MM USD 138 31 300 150 Securities 58 250 +45.7% Due from other banks 38 200 100 275 150 Loans and 50 advances to 198 100 customers 50 0 0 1H200
Slide 5: Fee and commission income
Fee and commission income Net Net fee fee and and commission commission income income Gross Gross fee fee and and commission commission income income structure structure 50 46 60 45 49 40 50 35 10 MM USD MM USD 30 40 30 32 +53.3% 12 25 30 Other 8 20 9 Guarantees issued 6 20 15 Cash transactions 5 10
Slide 6: Net gain from securities
Net gain from securities Net Net gain gain from from securities securities Share Share of of corporate corporate securities securities 250 59.8% 60% 195 200 % of total securities 50% 46.1% +29.7% MM USD 150 40% 30% 22.8% 100 +102.2% 20% -86.2% 50 27 10% 0 0% 1H2003 1H2004 2002 2003 1H2004 Source: VT
Slide 7: Operating costs
Operating costs Operating Operating costs costs Staff Staff costs costs composition composition 250 120 105 207 9 100 12 200 13 13 163 36 72 80 Leasing and rent expenses 9 MM USD MM USD 20 150 Foreign subs 8 Taxes other than on income Depreciation, admin. Russian subs 4 60 26 41 and other costs 100
Slide 8: Improving balance sheet structure
Improving balance sheet structure Assets Assets Liabilities Liabilities and and Equity Equity Other assets 15.5% 13.7% 18.6% 21.1% 19.3% Shareholders equity 29.1% 22.9% 13.9% Securities 25.9% 21.8% 16.1% Due to other banks 17.7% 34.3% 37.9% Loans and advances to 41.5% 42.7% 49.5% Customer accounts 3
Slide 9: Funding base remains strong
Funding base remains strong Customer Customer accounts accounts Eurobond Eurobond issues issues 4,500 4,259 4,157 1,000 866 4,000 900 3,500 800 700 MM USD MM USD 3,000 2,437 -2.4% 600 2,500 +74.8% 500 2,000 +190.6% 400 298 1,500 300 1,000 200 500 100 0 0 2002 2003 1H2004 2002 2003 1H2004 Source: VTB
Slide 10: Corporate banking results
Corporate banking results Gross Gross customer customer loans loans Loan Loan portfolio portfolio maturity maturity 7,000 6,495 More than 1 year 27% 4% Overdue* 6,000 5,227 +24.3% 5,000 MM USD 14% 4,000 3,378 On demand / less than +54.7% 1 month 3,000 From 6 to12 months 2,000 20% 1,000 0 From 1 to 6
Slide 11: Loan book composition and quality
Loan book composition and quality Loan Loan book book composition composition Provisions Provisions and and overdue overdue loans loans Provision for loan impairment 10.7% Overdue loans Other 28.1% 29.0% % of gross loans and advances 35.4% 8.3% Finance 4.1% 10.1% 7.7% 9.7% 11.4% Energy 35.6% 11.9% 5
Slide 12: Retail banking results
Retail banking results Retail Retail deposit deposit volumes volumes Consumer Consumer loans loans 1,600 60 1,360 51 1,400 50 1,200 979 +38.9% 40 MM USD MM USD 1,000 800 30 24 +112.5% 544 +80.0% 600 20 400 10 200 0 0 2002 2003 1H2004 2003 1H2004 Source: VTB consolidated IFRS financial statements Sou
Slide 13: Strong capital base
Strong capital base Tier Tier 11 capital capital Capital Capital adequacy adequacy 2,400 30% 2,353 26.1% 2,350 2,311 25% 2,300 19.6% 20% MM USD 2,250 16.0% 2,200 -1.8% 15% 2,150 2,118 +11.1% 10% CBR 2,100 BIS 5% 2,050 2,000 0% 2002 2003 1H2004 2002 2003 1H2004 Source: IFRS financial statements Tier
Slide 14: Material post balance sheet borrowings
Material post balance sheet borrowings Bond issues: — $300 million Reg S Series 3, 3-year FRN, issued on 27.07.2004 — $450 million Reg S/144A Series 4, 7-year Eurobond, issued on 12.10.2004 Syndicated loans: — $300million 3-year syndicated loan facility signed on 11.11.2004 13
Slide 15: Current market trends
Current market trends Domestic equity and fixed income market has been demonstrating recovery trends since 3Q2004 Continued decrease in the cost of funding through decrease of spreads for external borrowings Continued consolidation in the banking sector: — Nikoil / Uralsib — OVK / Rosbank Entrance o
Slide 16: Income statement highlights
Income statement highlights US$ (Millions) 2002 2003 y-o-y 1H2003 1H2004 y-o-y Interest income 530 665 25.5% 294 400 36.1% Interest expense (182) (345) 89.6% (156) (199) 27.6% Net Interest Income 348 320 (8.0%) 138 201 45.7% Fee and commissions income 38 68 78.9% 30 46 53.3% Gains from securities &
Slide 17: Balance sheet highlights
Balance sheet highlights US$ (Millions) 2002 2003 1H2004 Due from other banks 1,246 1,895 1,670 Loans and advances to customers 3,016 4,795 5,996 Securities and investments 1,882 2,451 2,774 Other assets 1,128 2,087 1,664 Total Assets 7,272 11,228 12,104 Due to other banks 1,285 1,812 1,687 Customer
Slide 18: Selected ratios
Selected ratios 2002 2003 1H2004 Net Interest income / Operating income 53.8% 48.4% 87.4% Interest expense / Interest Income 34.3% 51.9% 49.7% Net interest income / Interest Income 65.7% 48.1% 50.3% Personnel Expenses / Operating income 18.1% 25.0% 45.7% Customer deposits / Total liabilities 48.0% 4