Mkb · RUS:CBOM
Mkb — Credit Bank of Moscow — Investor Presentation (May 2017)
26 slides from Mkb's investor presentation, May 2017
Slide 1: Investor Presentation May 2017
Investor InvestorPresentation Presentation February May 20172017
Slide 2: Disclaimer
Disclaimer This presentation may contain “forward-looking statements”, which are statements related to the future business and financial performance and future events or developments involving CREDIT BANK OF MOSCOW. Such forward-looking statements are based on the current expectations and certain as
Slide 3: Agenda
Introduction 3 Strategy and Business Overview 11 Financial Performance 16 Appendix 22 3
Slide 4: Credit Bank of Moscow at a glance
CREDIT BANK OF MOSCOW at a glance Overview Key Financials Balance sheet (RUB bln) 2015 2016 1Q2017 Top-10 bank in Russia by total assets1 Total Assets 1,208.2 1,568.0 1,488.7 Strategic focus on Moscow Area2 Gross Loans 629.9 666.7 684.3 Customer Deposits 898.7 689.5 760.5 Over 15,000 active corporat
Slide 5: Transparent ownership structure and business development
Transparent ownership structure and business development Roman Avdeev – controlling shareholder Reputable minority shareholders Born in 1967 in Odintsovo, Moscow Region Education: Lipetsk State Technical University (1996) and Moscow International University of Business and Information Technologies (
Slide 6: High standards of corporate governance
High standards of corporate governance Best international corporate governance practices Supervisory Board Controlling shareholder of CBM Chairman of the Supervisory Audit Panel Audit Panel reports directly to shareholders Board Served as INED for multiple companies, including FESCO Supervisory Boar
Slide 7: Moscow region dominates by economic indicators in Russia
Moscow region dominates by economic indicators in Russia Moscow and Moscow Region constitute more than 25% of Russian GDP Consumer oriented economy in Moscow (FY2015) (FY2015) 16% Moscow 6% 5% 1% Retail and Wholesale Trading 7% Real Estate 21% Moscow Region 9% Manufacturing 29% European part of Russ
Slide 8: Russian largest privately owned banks: opportunities for growth
Russian largest privately owned banks: opportunities for growth Competitive advantages CBM demonstrated fastest organic growth among Top-5 privately owned banks Diversification benefits for clients Total assets growth in 2011-1Q2017 (x) Fast decision-making process (due to nearness of HQ) Benefits f
Slide 9: Nearly tripling the market share since 2012
Nearly tripling the market share since 2012 Top 20 banks Dec-2012, ranked by total assets (RUBbn) Top 20 banks Apr-2017, ranked by total assets (RUBbn) #1 14,082 28.4% #1 22 272 28.7% #2 1 14.9% #2 12.4% 7370 9 584 #3 2814 5.7% #3 5 606 7.2% #4 1673 3.4% #4 3 229 4.2% #5 1377 2.8% #5 2 853 3.7% #6 8
Slide 10: Sustainable performance vs Russian peers
Sustainable performance vs Russian peers Growth Margin Efficiency Return on Assets Loan portfolio quality Asset CAGR (2011-1Q2017) Net Interest Margin (1Q2017) Cost/Income Ratio (1Q2017) ROAA1 Range (2011-1Q2017) NPL (1Q2017) 42% 3.0% 26% 0.2% 2.4% 1.9% 48% 4.6% 37% 0.1% 2.7% 4.8% Privately- 41% 4.4
Slide 11: Strategy and Business Overview
Introduction 3 Strategy and Business Overview 11 Financial Performance 16 Appendix 22 11
Slide 12: Strategic Pillars In The Medium Term
Strategic Pillars In The Medium Term Objective To Cement Position as Top 3 Private Russian Bank Providing Full Range of Quality Banking Services to Moscow Area Customers Core Market Strategic Focus on Moscow Area Corporate Interbank Retail Preferred choice for high quality Focus on low-risk deals wi
Slide 13: CBM competitive advantages
CBM competitive advantages Focus on Moscow/Moscow region (25% of Russian GDP) Cash handling – strategic synergies with corporate banking business (FY2015) Moscow 16% 21% Moscow Region Serves as an entry point to start new customer Value for relationships and enhance customer loyalty Customers 29% Eu
Slide 14: Corporate banking – strong platform with focus on larger corporates
Corporate banking – strong platform with the focus on increasing contribution of larger corporates Highlights Corporate loans breakdown by industry (1Q2017) 11% 4% 22% Over 15,000 active corporate customers 4% Strong and 6% Focus on large and medium-sized corporates Quality 6% 11% Customer Base Hist
Slide 15: Retail banking – careful customer selection
Retail banking – careful customer selection Highlights Focus on high-yield retail products (1Q2017) Approx. 1,100,000 retail banking customers1 1% Significant potential of the Moscow Area retail banking market 4% 22% Proper infrastructure for efficient customer acquisition and service General Purpos
Slide 16: Financial Performance
Introduction 3 Strategy and Business Overview 11 Financial Performance 16 Appendix 22 16
Slide 17: Outstanding efficiency
Outstanding efficiency 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 +15% 26.0% 29.3% 24.5% +74% +11% 14.3 +44% 12.4 3.5 3
Slide 18: Healthy assets and liabilities structure
Healthy assets and liabilities structure Liabilities breakdown Debt securities repayment schedule 1,465 (RUB bln) (RUB bln) 1,381 65 137 9% 123 RUB 26 bln 1,116 382 288 21% (USD 394 million) were 121 repaid in April 2017 85 39 4 200 14% 54 247 5 19 899 761 32 689 55% 19 11 2 7 10 10 1% 2017 2018 201
Slide 19: 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) 325% 7.4% 1650 263% 1500 6.5% 1350 6.0% 6.1% 1200 5.6% 1050 148% 900 684 122% 117% 750 634 621 667 653 600 450 10 9 8 41 46 40 42 300 37 150 24 22 23 7 8 0 8 5
Slide 20: NPL coverage by provisions maintained at a safe level
NPL coverage by provisions maintained at a safe level Corporate Loan Book Retail Loan Book % LLP / NPL 90+ % Cost of Risk % LLP / NPL 90+ 657% 103% 411% 99% 96% 121% 180 0.1 566 587 510 4.4% 6.5% 540 9% 5.1% 0.1 8% 480 119 420 5.4% 5.8% 5.8% 7% 120 101 0.1 360 6% 97 0.1 5% 300 4% 7.9% 7.9% 240 60 0.
Slide 21: Strong capital position
Strong capital position Recent changes IFRS capital adequacy ratios (Basel III) (RUB bln) December, 2016: Issue of additional 3.2 19.0% bln ordinary shares with a nominal value 16.5% of RUB1 each was registered with the 14.7% 10.7% CBR 9.2% 9.4% April, 2017: Subordinated Eurobond T2 162.6 160 18
Slide 22: Appendix
Introduction 3 Strategy and Business Overview 11 Financial Performance 16 Appendix 22 22
Slide 23: Milestones of capital growth
Milestones of capital growth RUB bln 189 Tier 2 Subordinated debt 163 160 Retained earnings Share capital 71 Tier 2 capital 71 58 91 71 42 47 31 32 22 Tier 1 capital 30 24 60 60 60 25 30 2013 2014 2015 2016 1Q2017 IPO and SPO placed on Issue of additional 3.2 Tier 2 Eurobond issue Tier 2 domestic bo
Slide 24: Delivering sustained profit
Delivering sustained profit Comments ROA ROE The main drivers for ROA and 24.4% ROE growth are Fee and commission income COR stabilization 20.1% 19.0% CTI remains at “below 30%” 18.2% In 2015 the capital of 17.4% 17.2% the Bank increased In 2015 a sharp decrease of ROA significantly following and RO
Slide 25: SKS Bank
SKS Bank Rationale for investment business separation Overview Simple and effective risk– Simple and effective operations IT-processing management structure management Acquired in August 2016 CBM SKS Synergy effect on the Acquisition represents purchase of licenses, with no risk on the balance sheet
Slide 26: History of international capital markets transactions
History of international capital markets transactions Eurobond issues Awards EMEA Finance Euromoney Global Banking & The Banker October 2006 August 2011 February 2013 May 2013 November 2014 Achievement Finance Review magazine magazine Awards Senior Senior Senior Subordinated Subordinated Unsecured U
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