Mkb · RUS:CBOM
Mkb — Credit Bank of Moscow — Investor Presentation (September 2016)
29 slides from Mkb's investor presentation, September 2016
Slide 1: Investor Presentation September 2016
Investor Presentation September 2016
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 9 Financial Performance 17 Additional Materials 25
Slide 4: CREDIT BANK OF MOSCOW at a glance
CREDIT BANK OF MOSCOW at a glance #11 bank in Russia by total assets1 Balance sheet (RUB bln) 2014 2015 1H2016 Total Assets 584.8 1,208.2 1,221.8 #4 privately owned Russian bank by total assets1 Gross Loans 394.2 629.9 621.0 Customer Deposits 334.9 898.7 941.8 Strategic focus on Moscow Area2 Shareho
Slide 5: Transparent ownership structure
Transparent ownership structure Roman Avdeev – controlling shareholder Reputable minority shareholders Other minority Born in 1967 in Odintsovo, Moscow shareholders2 Region 34.1% Education: Lipetsk State Technical IFC University (1996) and Moscow 1.8% Roman I. Avdeev1 International University of Bus
Slide 6: High standards of corporate governance
High standards of corporate governance Full Compliance with best international corporate governance CBM Supervisory Board practices Chairman of the Controlling shareholder Audit Panel Audit Panel reports directly to shareholders Supervisory Board of CBM Served as INED for multiple companies, Supervi
Slide 7: Russian largest privately owned banks: opportunities for growth
Russian largest privately owned banks: opportunities for growth Consolidation process drivers CBM is the fastest growing bank since 2008 among Top 15 by assets Tightening banking regulation Total assets growth 2008-1Н2016 (x) Complicated macroeconomic environment Need to grow business scale CBM 21.4
Slide 8: Sustainable performance vs Russian peers
Sustainable performance vs Russian peers Growth Margin Efficiency Return on Assets Loan portfolio quality Asset CAGR (2008-1H2016) Net Interest Margin (1H2016) Cost/Income Ratio (1H2016) ROAA1 Range (2010-1H2016) NPL (1H2016) 51% 3.5% 0.2% 2.4% 5.0% 22.5% 41% 4.8% 34.9% 0.2% 2.0% 4.4% Privately- own
Slide 9: Agenda
Introduction 3 Strategy and Business Overview 9 Financial Performance 17 Additional Materials 25
Slide 10: CBM's business model
CBM’s business model Strategic focus on most attractive regional market – Moscow and Moscow Region Geographic focus • Banking business exclusively in Moscow and Moscow Region, which together constitute more than 25% of Russian GDP1 • Consumer oriented economy with Retail and Wholesale trading exceed
Slide 11: Moscow business environment is attractive and prosperous
Moscow business environment is attractive and prosperous Moscow and Moscow Region constitute more than 25% of Russian GDP Consumer oriented economy in Moscow (2014) (2014) Retail and Wholesale Trading Moscow 13% Real Estate 16% 4% 5% Manufacturing 22% Moscow Region 8% 35% European part of Russia Tra
Slide 12: Corporate banking – strong platform with focus on larger corporates
Corporate banking – strong platform with the focus on increasing contribution of larger corporates Highlights Gross corporate loan portfolio evolution (RUB bln) Over 15,000 active corporate customers CAGR 2010-2Q2016 Strategic focus on retail and wholesale 510.2 509.3 Strong and trading sector Quali
Slide 13: Cash handling – strategic synergies with corporate banking business
Cash handling – strategic synergies with corporate banking business Strategic synergies with CBM business Cash handled volumes dynamics (RUB bln) High demand service for retail trade customers Value for 2,748 Serves as an entry point to start new customer Customers relationships and enhance customer
Slide 14: Retail banking – careful customer selection
Retail banking – careful customer selection Highlights Controlled slowdown in lending dynamics (RUB bln) Approx. 1,000,000 retail banking customers1 33% CAGR 2010-2Q2016 31% Significant potential of the Moscow area retail banking market 24% Proper infrastructure for efficient customer acquisition an
Slide 15: Leading payment terminal network as a unique acquisition tool
Leading payment terminal network as a unique acquisition tool Highlights Leading payment terminal network with enhanced functionality One of the market leaders in Moscow with over 5,400 devices in high traffic locations on 3,500 streets of Moscow Superior functionality in comparison to competitors’
Slide 16: Efficient multichannel distribution and service platform
Efficient multichannel distribution and service platform Established branch network… …complemented by well developed alternative channels 72 offices and 22 cash offices in Moscow Area1 Convenient locations in high traffic areas, operating 7 days a week with Over 5,500 payment terminals extended hour
Slide 17: Agenda
Introduction 3 Strategy and Business Overview 9 Financial Performance 17 Additional Materials 25
Slide 18: Track record of sustainable profitable growth
Track record of sustainable profitable growth Gross loan portfolio Equity Operating income (RUB bln) (RUB bln) (RUB bln) +58% +63% +104% 630 621 98 29 92 394 60 14 15 2014 2015 1H2016 2014 2015 1H2016 6m2014 6m2015 6m2016 ROA ROE 16.1% 1.8% 10.7% 0.8% 0.4% 3.6% 6m2014 6m2015 6m2016 6m2014 6m2015 6m2
Slide 19: Constantly improving efficiency: CTI dropped to 22.5%
Constantly improving efficiency: CTI dropped to 22.5% Operating income Operating expenses (RUB bln) Net interest income Other net income (loss) (RUB bln) Salaries and employment benefits Other expenses1 Administrative expenses % Cost-to-income ratio Net fee and commission income 29.1 34.0% 29.5% 22.
Slide 20: Strong emphasis on quality of assets
Strong emphasis on quality of assets Asset structure High quality securities portfolio (RUB bln) 7% 4% 1,208 1,222 40 40 3% 160 152 12% 138 189 16% 277 89% 266 22% 585 20 Government and municipal bonds 61 111 103 8% Corporate bonds 119 Promissory notes 7 120 482 472 The securities portfolio is used
Slide 21: Conservative approach ultimately led to NPL decrease
Conservative approach ultimately led to NPL decrease Gross loan portfolio coverage by impairment allowance NPL1 and provisioning dynamics (RUB bln) (RUB bln) 100 10% 600 7.4% 9% 80 8% 148% 6.5% 114% 5.9% 7% 106% 122% 450 5.2% 4.8% 60 6% 630 634 5% 300 621 525 40 4% 453 97% 3% 9 10 9 150 8 41 46 2% 2
Slide 22: 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+ % Cost of Risk % LLP / NPL 90+ 2.0% 5.8% 5.0% 5.9% 4.4% 6.1% 828% 121% 167% 97% 96% 99% 509 540 510 12,0 128 480 8,4 120 119 112 10,0 420 7.4 5.4 7,2 7.9 7.9 360 6 8,0 300 266 6.
Slide 23: Customer deposits remain the main source of funding
Customer deposits remain the main source of funding Liabilities breakdown Bonds repayment schedule (RUB bln) (RUB bln) 1,116 1,123 75 10% 121 107 85 68 6% 65 4 18 7 7 10 2016 2017 2018 2019+ Domestic Bonds Eurobonds Securitization 525 119 899 942 +4.8% 54 12 84% +168% Customer accounts growth in 2Q
Slide 24: Strong capital position
Strong capital position IFRS capital adequacy ratios (Basel III) RAS capital adequacy ratios1 (RUB bln) 16.1% 17.6% 14.2% 14.8% 15.8% 16.5% Min N1.0=8% 10.6% 8.2% Min N1.2=6% 10.5% 7.6% 8.0% Min N1.1=4.5 9.2% 8.2% 8.0% 162.6 160.2 7.6% 59.7 90.3 91.0 96.1 2014 2015 1H2016 2014 2015 1 July 2016 Tier
Slide 25: Additional Materials
Introduction 3 Strategy and Business Overview 9 Financial Performance 17 Additional Materials 25
Slide 26: Milestones of capital growth
Milestones of capital growth 164 161 Subordinated debt Retained earnings Share capital 72 62 Tier 2 capital 90 71 31 32 37 22 45 30 Tier 1 capital 29 7 24 4 16 60 60 10 22 25 30 15 2011 2012 2013 2014 2015 1H2016 Additional share Subordinated Subordinated Additional share IPO and SPO placed on Mosco
Slide 27: Income Statement
Income Statement RUB mln 6m2016 6m2015 6m2015-6m2016 Interest income 55,976 38,700 45% Interest expense (35,514) (28,278) 26% Net interest income 20,462 10,421 96% Provision for loan impairment (16,229) (8,482) 91% Net interest income after provision for impairment 4,233 1,939 118% Fee and commissio
Slide 28: Balance Sheet
Balance Sheet RUB mln 1H2016 2015 2015 – 1H2016 Assets Cash and cash equivalents 189,439 138,015 37% Obligatory reserves with the CBR 7,707 5,936 30% Due from credit institutions 266,036 277,296 -4% Financial instruments at fair value through profit or loss 62,477 72,137 -13% Available-for-sale secu
Slide 29: International Capital Markets Transactions
International Capital Markets Transactions Eurobond issues Awards EMEA Finance October 2006 July 2007 2011 January 2013 February 2013 January May 2013 2013 January 20132014 July 2007 July 2007 Euromoney July 2007Banking & Global July The 2007Banker October 2006 August November Achievement magazine m
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