Vtb · RUS:VTBR

Vtb — 9M 2013 Earnings Presentation

18 slides from Vtb's earnings presentation, Dec 5, 2013

  1. Slide 1: VTB Group 9M'2013 Results

    VTB Group 9M’2013 Results Herbert Moos CFO, Deputy Chairman of the Management Board Jyrki Talvitie SVP, Head of Investor Relations December 05, 2013 1 © VTB 2011

  2. Slide 2: Forward-looking statements disclaimer

    Some of the information in this presentation may contain projections or other 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 based on numerous as

  3. Slide 3: VTB Group 9M'2013 Highlights

    VTB Group 9M’2013 Highlights ■ Strong y-o-y performance on core income lines – net interest income up 34% on the back of expansion in net interest margin to 4.4% – net fee and commission income up 14% with Retail Banking and Transaction Banking being the key growth drivers ■ Cost of risk up to 1.7%

  4. Slide 4: Net Profit and Operating Income

    Net Profit and Operating Income Net profit -31% -24% 60.2 30.4 26.6 46.0 23.3 18.4 15.7 (RUB bn) 11.9 (RUB bn) 10.3 1Q'12 2Q'12 3Q12 4Q12 1Q'13 2Q'13 3Q'13 9M'12 9M'13 Operating income before provisions (1) +3% +11% 281.3 105.3 94.6 97.3 253.4 92.2 90.7 93.3 38.9 14.1 12.4 13.3 34.2 10.3 11.5 14.1 6

  5. Slide 5: Interest Income and Average Yields

    Interest Income and Average Yields Interest income +25% +24% 500.7 400.5 167.4 176.1 155.2 157.2 141.5 127.0 132.0 (RUB bn) (RUB bn) 1Q'12 2Q'12 3Q12 4Q12 1Q'13 2Q'13 3Q'13 9M'12 9M'13 Average yields 17.6% 15.9% 15.7% 16.6% 15.8% 16.2% 16.4% Loans to individuals 11.2% 10.8% 10.3% 10.5% 10.6% 10.7% T

  6. Slide 6: Interest Expense and Cost of Funds

    Interest Expense and Cost of Funds Interest expense +18% +17% 267.5 226.2 90.9 93.2 79.6 83.5 83.4 73.0 73.6 (RUB bn) (RUB bn) 1Q'12 2Q'12 3Q12 4Q12 1Q'13 2Q'13 3Q'13 9M'12 9M'13 Cost of funds Retail Total customer Corporate Subordinated debt Debt securities issued deposits deposits deposits Due to

  7. Slide 7: Strong Net Interest Income Supported by Stable NIM

    Strong Net Interest Income Supported by Stable NIM Net interest income +34% +34% 233.2 174.3 82.9 71.7 73.8 76.5 58.4 61.9 54.0 (RUB bn) (RUB bn) 1Q'12 2Q'12 3Q12 4Q12 1Q'13 2Q'13 3Q'13 9M'12 9M'13 Net interest margin (1) +40 bps +40 bps 4.1% 4.6% 4.5% 4.4% 4.5% 4.0% 4.4% 3.8% 4.1% 1Q'12 2Q'12 3Q12

  8. Slide 8: Solid Fee and Commission Income Growth

    Solid Fee and Commission Income Growth Fee and commission income breakdown +7% +14% 18.0 18.0 49.8 17.1 16.0 2% 7% 6% 4% 4% 43.2 Other fee and 14.6 3% 14.7 8% 7% 7% commission income 13% 5% 5% 13% 6% 10% 10% 13% 12% Commission on cash 12.6 12% 7% 9% 14% 15% transactions 5% 7% 15% 9% 10% 14% 12% 15%

  9. Slide 9: Cost of Risk Reflects Macroeconomic Environment

    Cost of Risk Reflects Macroeconomic Environment Provision charge for loan impairment 2.0% 1.3% 1.7% 1.7% 1.6% 1.5% 1.0% 1.0% 1.1% +62% Cost of risk 72.8 +76% 45.0 Provision charge 28.6 for loan impairment (RUB bn) 20.4 22.0 22.2 (RUB bn) 12.6 14.5 12.0 1Q'12 2Q'12 3Q12 4Q12 1Q'13 2Q'13 3Q'13 9M'12 9

  10. Slide 10: Loan Book Quality

    Loan Book Quality Provision for loan impairment NPLs (90+) 6.6% 6.8% 6.6% 6.4% 6.5% 6.6% 6.5% 5.5% 5.6% 5.6% 5.4% 5.4% 5.5% 5.4% +20% +17% +5% +4% 345 372 389 299 317 317 323 288 325 337 271 286 298 252 (RUB bn) (RUB bn) 31-Mar-12 30-Jun-12 30-Sep-12 31-Dec-12 31-Mar-13 30-Jun-13 30-Sep-13 31-Mar-12

  11. Slide 11: Staff and Administrative Expenses

    Staff and Administrative Expenses Staff costs and administrative expenses 2.9% 2.5% 2.6% 2.6% 2.6% 2.5% 2.4% 2.4% 2.4% Cost / Assets 64.4% 53.0% 55.1% 53.3% 50.6% 48.2% 50.3% 50.6% Cost / Income ratio 43.1% +16% +14% Administrative expenses 149.2 128.2 53.0 51.4 51.9 Staff costs (1) 42.9 45.6 45.9 6

  12. Slide 12: Balance Sheet Structure - Assets

    Balance Sheet Structure - Assets Assets structure +14% +2% 8,356 8,487 5% Cash and mandatory reserves 7,416 7,603 8% 7,185 12% 6,858 9% 13% 6,451 9% 8% Securities portfolio (1) 6% 13% 6% 6% 13% 5% 15% 15% 3% 10% 5% Due from other banks 6% 4% 9% 63% 66% Loans to customers (net) 62% 64% 65% 63% 63% Ot

  13. Slide 13: Balance Sheet Structure – Liabilities and BIS Capital

    Balance Sheet Structure – Liabilities and BIS Capital Liabilities structure +14% +2% 7,479 7,592 Due to banks and other 6,650 6,820 6,501 25% borrowed funds(1) 6,229 22% 5,821 24% 24% 22% 24% Customer deposits 20% Debt securities issued 58% 57% 57% 58% 57% Subordinated debt 59% 58% (RUB bn) Other li

  14. Slide 14: Loan Portfolio and Customer Deposits

    Loan Portfolio and Customer Deposits Total loans and advances to customers Customer deposits +18% +13% +7% +3% 6,019 4,313 4,324 5,637 5,085 5,293 4,645 4,778 3,887 4,552 3,813 3,594 3,686 3,412 (RUB bn) (RUB bn) 31-Mar-12 30-Jun-12 30-Sep-12 31-Dec-12 31-Mar-13 30-Jun-13 30-Sep-13 31-Mar-12 30-Jun-

  15. Slide 15: Performance of Corporate Banking

    Performance of Corporate Banking Corporate loan portfolio Corporate liabilities +16% Term deposits Current accounts +6% +12% 4,603 4,326 3,965 4,100 -1% 3,690 3,696 3,752 2,683 2,658 2,222 2,279 2,354 2,379 2,357 33% 27% 33% 30% 32% 39% 32% (RUB bn) (RUB bn) 67% 73% 67% 70% 68% 61% 68% 31-Mar-12 30-

  16. Slide 16: Performance of Retail Banking

    Performance of Retail Banking Retail loan portfolio Retail deposits Share in total loan book Share in total customer deposits 22% 23% 23% 24% 36% 38% 39% 38% 39% 19% 20% 21% 35% 37% 31-Mar-12 30-Jun-12 30-Sep-12 31-Dec-12 31-Mar-13 30-Jun-13 30-Sep-13 31-Mar-12 30-Jun-12 30-Sep-12 31-Dec-12 31-Mar-1

  17. Slide 17: Segment Analysis

    Segment Analysis Corporate – Investment Banking 9M’2012 9M’2013 +1% Segment result (net profit) +53% 126.7 128.4 -2% -5% (19.0) (29.1) 30.7 29.2 (RUB bn) (68.0) (66.4) Operating income before Provision charge Staff & admin expenses 9M'12 9M'13 provisions Retail Banking 9M’2012 9M’2013 Segment result

  18. Slide 18: Investor Relations

    Investor Relations Tel: +7 (495) 775-71-39 e-mail: investorrelations@vtb.ru 18 © VTB 2013

VTB — 9M 2013 Earnings Presentation on 6ix