H1 2012 IFRS ResultsBalanced growth across the boardConference CallAugust 22, 2012
H1 2012 HighlightsNet income surged to RUB 1,204 mln, up 69,1%YoY Assets up 5.9% for the quarter to RUB 193,908 mln Corp...
Assets Balanced assets structure…                                                …contributes to higher yields on IEARUB b...
LoansSMEs are key growth driver in corporates…                                      …consumer and mortgages – in retail   ...
Credit quality managementNPLs dynamics                                                                                    ...
Credit quality                                 Large         SMEs        Mortgages        Other        Total   % of total ...
Liabilities and capital Funding base grows in line with assets…                                    … driven mostly by clie...
Financial highlights                                H1’12     H1’11     Q2’12     Q1’12Interest income                 7 8...
Solid interest income offsets funding costs pressure                                           +16.7%                     ...
NIM gains on repricing of loans and depositsLoan yields surged forward…                                               …out...
Operating efficiency benefits from strong revenuesand costs discipline                   Net interest income              ...
Fees and commissions Strongest non-interest income among peers                                                Net fee inco...
Costs Operating expenses breakdown                                               Earned fees fully cover personnel expense...
Continued improvement of performance despiteconservative provisioning                                              +52.2% ...
Earnings generation capabilityROE, %                                                                           ROA, %     ...
Key takeaways of Q2 2012  Well-managed assets                                   …supported by robust  structure…          ...
Questions and answers        Elena Mironova      Andrey Shalimov        Deputy Head of IR   Deputy Chairman of the Managem...
DisclaimerSome of the information in this presentation may contain projections or other forward-looking statements regardi...
Upcoming SlideShare
Loading in...5
×

6M 2012 IFRS Results

161

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
161
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "6M 2012 IFRS Results"

  1. 1. H1 2012 IFRS ResultsBalanced growth across the boardConference CallAugust 22, 2012
  2. 2. H1 2012 HighlightsNet income surged to RUB 1,204 mln, up 69,1%YoY Assets up 5.9% for the quarter to RUB 193,908 mln Corporate portfolio rose to RUB 124,002 mln, up 5.1% from Q1’12 Retail portfolio was RUB 28,274 mln, up 9.1% for the quarter Client funds soared to RUB 151,827 mln, up 6.2% from Q1’12 NPL fell 60 bps to 8.08%; 1day+ overdues covered by 113%  Net interest income was Rub 4,411 mln, up 37% from H1’11  Net fees grew to RUB 2,417 mln, up 10% from H1’11  NIM was up to 4.7% versus 3.7% in H1’11. In Q2’12 it reached 4.8%, up 12bps from Q1’12  ROE improved to 12.7% up from 8.3% in H1’11. In Q2’12 it was 14% - highest since 2008 2
  3. 3. Assets Balanced assets structure… …contributes to higher yields on IEARUB bln RUB bln 194 Net interest-earning assets 184 183 Cash and Yield on net IEA, % 174 177 equivalents 34 Due from 27 40 28 banks 10.8% 11.2% 30 12 10.6% 10.4% 10.7% 0 14 Securities 14 17 9 27 21 23 25 19 Retail loans Corporate 150 102 103 101 106 111 loans 135 141 134 145 Other assets 9 9 9 10 10 Q211 Q311 Q411 Q112 Q212 Q211 Q311 Q411 Q112 Q212Liquid assets stood at 22% of total assets LTD ratio at optimal levels RUB bln Cash and Other assets Gross loans Customer funds equivalents L/D ratio Due from other 5% banks 17% 98% 99% 101% 100% 95% 0% Securities 6% 14% 58% Corporate loan Retail loan 133 135 137 138 137 145 144 143 152 152 portfolio portfolio Q211 Q311 Q411 Q112 Q212 3
  4. 4. LoansSMEs are key growth driver in corporates… …consumer and mortgages – in retail Rub bln SME Individuals Administrations Large corporates Credit cards Consumer and auto loans Mortgages +14,7% +40,5% +5,8% +9,1% 2.1 42.7 2.2 38.1 40.2 41.2 2.2 35.1 2.3 7.6 3.4 6.8 5.5 3.9 2.7 3.3 2.2 6.8 25.9 28.3 20.1 22.5 24.4 6.5 5.8 17.0 18.5 72.0 72.3 70.1 73.6 78.0 13.6 15.4 12.1 Q211 Q311 Q411 Q112 Q212 Q211 Q311 Q411 Q112 Q212Balanced presence in all regions of interest Breakdown by industry *as of 30.06.2012 Other *as of 30.06.2012 Transport Moscow Oblast (41%) Agriculture 11% 4% 63,062 6% Manufacturing Construction 27% 8% RUB RUB Other 1% 152,276 152,276 63,099 regions(41%) mln mln Wholesale & 22% 19% 26,115 retail trade 2% Individuals Moscow (18%) Administrations 4
  5. 5. Credit quality managementNPLs dynamics Annualized cost of risk Charges to provisions to NPLs, RUB mln * avg gross loans, QoQ Provisions, % of total portfolio Charges to provisions to NPLs, % of total portfolio avg gross loans, YtD 2.14% 1.92% 2.24% 9.26% 9.44% 9.25% 9.09% 9.09% 1.78% 1.71% 1.02% 1.65% 8.40% 8.68% 1.77% 8.31% 7.70% 8.08% 11,488 12,490 11,030 1.48% 10,576 12,297 1.02% Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012* NPL includes the whole principal of loans at least one day overdue either onprincipal or interest as well as not overdue loans with signs of impairmentNPLs categorization: absolute improvement across all business segments SMEs Large corporates Retail RUB mln + Rub 248 mln new NPLs No changes + Rub 138 mln new NPLs - Rub 391 mln recoveries 11.5% 10.1% - Rub 188 mln recoveries 11.3% 11.1% 6.9% 11.0% 8.9% 10.4% 8.7% 6.2% 11.1% 10.8% 7.6% 10.7% 7.0% 8.3% 8.0% 10.4% 4.4% 4.3% 10.0% 4.9% 5.3% 3.6% 5.0% 3.4% 3.2% 8,464 4.3% 3,400 3,400 8,025 7,769 8,263 8,120 4.6% 2.7% 1,379 1,399 1,980 827 827 777 1,626 1,625 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 NPLs, RUB mln Provisions, % of total portfolio NPLs, % of total portfolio 515
  6. 6. Credit quality Large SMEs Mortgages Other Total % of total as of 30.06.2012 corporate retail loansGross loans, including 42,673 81,329 18,542 9,732 152,276 100.0% Provisions to NPLs Ratio Current loans 39,273 73,209 18,268 9,229 139,979 91,9% 113% Past-due but not 0.2% impaired, of them - 92 79 65 236 Less than 90 days - 92 51 56 199 0.2% Over 90 days - - 28 9 37 0.0% Provisions to 90 days+ Impaired, of them 3,400 8,028 195 438 12,061 7.9% NPLs Less than 90 2,558 413 15 62 3,048 2.0% 153% days Over 90 days 842 7,615 180 376 9,013 5.9%Total NPLs 3,400 8,120 274 503 12,297 8.1% Provisions (4,327) (8,488) (481) (548) (13,844) 9.1% Rescheduled Loans 38,346 72,841 18,061 9,184 138,432Net Loans - 4.5% the whole amount of loans with principal overdue for more than 1 day as well NPL - as loans with any delay in interest payments. 6
  7. 7. Liabilities and capital Funding base grows in line with assets… … driven mostly by client fundsRUB bln Retail deposits RUB bln 194 Corporate accounts Retail accounts 184 183 Retail accounts Retail deposits Corporate deposits 174 177 Corp. accounts +12.2% +6.2% Corp. deposits 72 77 32 69 71 72 Securities issued 30 32 33 31 34% 18 19 19 Due to other banks 17 16 20 17 16 20 18 33 31 32 30 32 77 Other Liabilities 69 71 72 72 20 19 20 22 24 Subordinated 6 8 8 8 8 9 87 4 7 4 7 4 loans 4 4 Equity 18 18 18 19 20 20 19 20 22 24Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012FX structure remains matched Capital position exceeds the requirements Data as of June 30, 2012 Tier 1 Tier 1 + Tier 2 CAR under CBR rules Assets Liabilities 14.1% (N1) 13.6% 13.4% 13.8% 13.4% 13.2% 12.0% 11.8% 11.6% 11.9% 11.8% 11.6% 11.4% USD 13% 11% USD, 12% MIN RUB, EUR, 81% EUR, 7% 7% RUB 80% Other, Other, 0% 0% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 30.06.12 7
  8. 8. Financial highlights H1’12 H1’11 Q2’12 Q1’12Interest income 7 887 6 674 4 118 3 769Interest expense (3 476) (3 453) (1 856) (1 620)Fee and commission income 2 605 2 382 1 387 1 218Fee and commission expense (188) (184) (96) (92)Other operating income 347 285 220 127Total operating income 7 175 5 704 3 773 3 402Operating expenses (4 180) (3 889) (2 138) (2 042)Provisions (1 188) (926) (830) (358)Provisions on non-core assets (314) 2 (1) (313)Tax (289) (179) (126) (163)Net profit 1 204 712 678 526 8
  9. 9. Solid interest income offsets funding costs pressure +16.7% - Interest income added up 9.3% for the quarter supported by higher rates on corporate loans +9.3% Interest Expenses Interest Interest Income and healthy volumes of issuance. Yields on interest-earning assets were up 35 bps QoQ to Income and 11.2%, highest level since 2010. Interest 3.5 3.6 3.7 3.8 4.1 Expenses, - Interest expenses grew by 14.6% reflecting higher rates across the deposit base filtering RUB bln -1.7 -1.6 -1.5 -1.6 -1.9 through the P’n’L. However, pricing of retail deposits remained stable since March 2012. +14.6% +11.1% Q2’11 Q3’11 Q4’11 Q1’12 Q2’12 +54 bps NIM +12bps - After a moderate decline in Q1 2012 net NIM interest margin on total average assets picked up 12 bps to 4.8% supported by strong evolution 4.3% 4.6% 4.9% 4.7% 4.8% interest income. NIM for H1 2012 of 4.7% significantly improved from 3.7% in H1 2011. Q2’11 Q3’11 Q4’11 Q1’12 Q2’12 9
  10. 10. NIM gains on repricing of loans and depositsLoan yields surged forward… …outpacing cost of deposits Yields on corporate loans Yields on retail loans Corporate term deposits Yields on securities Retail term deposits Current accounts 15.8% 15.7% 15.7% 14.8% 14.9% 6.1% 7.2% 5.6% 5.1% 6.3% 10.4% 10.2% 10.3% 10.3% 10.8% 6.0% 5.7% 5.7% 5.3% 6.1% 5.3% 5.8% 4.1% 4.1% 3.4% 0.2% 0.2% 0.2% 0.1% 0.1% Q211 Q311 Q411 Q112 Q212 Q211 Q311 Q411 Q112 Q212Spread dynamics NIM decomposition Interest Spread Yield on earning assets (net) Cost of funds -0,46% 0.74% -0,05% 11.2% -0,11% 10.6% 10.4% 10.7% 10.8% 7.1% 6.9% 6.8% 6.3% 6.4% 4.68% 4.80% 4.3% 4.0% 3.6% 3.9% 4.3% +12 bps Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q1 NIM Loans Deposits Other Base effect Q2 NIM effect effect 10
  11. 11. Operating efficiency benefits from strong revenuesand costs discipline Net interest income Net fees Other income Operating Expenses +19.2% - All components of operating income +10.9% demonstrated positive dynamics with net Operating 0.1 0.1 0.2 0.1 0.2 interest income up 5.3% and net fees up 14.7% on the back of strong business activity. 1.4 1.1 1.3 Income and 1.2 1.3 - Conservative trading portfolio preserves the 2.0 2.2 2.1 2.3 bank from significant losses during financial Expenses, 1.9 markets turmoil, while gains from trading in RUB bln -2.1 -2.1 -2.4 -2.0 -2.1 foreign currency on the back of turbulent exchange rate brought trading income up +4.7% 25%. +2.2% - Development of operating expenses in Q2’12 Q2’11 Q3’11 Q4’11 Q1’12 Q2’12 (+4,7% compared to Q1’12) fully complies with the bank’s focus on cost control in 2012 -9.4 pps – personnel costs were almost flat QoQ. On a Personnel expenses YoY basis operating expenses in Q2’12 Other expenses increased just 2.2% mostly driven by 66% 64% Cost to 60% 60% 57% expenses on IT infrastructure. Income 40% 36% 36% 37% 34% - Continued improvement of cost efficiency and before stronger revenues supported the recovery of cost to income ratio to 56.7% in Q2 2012 from provisions,% 26% 24% 28% 23% 23% 66.1% for the same quarter of 2011. Q2’11 Q3’11 Q4’11 Q1’12 Q2’12 11
  12. 12. Fees and commissions Strongest non-interest income among peers Net fee income distribution Cards Other Cash transactions Settlements RUB mln Share of non-interest income in total operating +8.3% income b.p. vbank +14.7% 1,368 39% peer 1 1,192 1,256 364 1,126 1,291 peer 2 335 348 360 24% 25% 325 20% peer 3 253 250 226 245 219 19% 337 304 291 310 256 340 414 377 Net fee margin 353 326 0.0% 1.0% 2.0% 3.0% 4.0% Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 * Vbank data as of 1Q’12, Peer1, Peer2, Peer 3, Peer 4 – FY2011 Non-interest income breakdown by segments Key points Q2 2012 Q1 2011 Non-interest revenues were solid in Q2 2012, supported by positive trading gains despite turbulent Financial Corporate Financial market environment business 5% 4% Net fee income grew by 14,7% QoQ on the back of Cards Cards strong business activity. Income from settlements 24% 54% 26% 53% grew by 16%, cash transactions – by 19% and banking cards business – by 11% 17% 17% 54% of non-interest income 54% was delivered byRetail business corporate business, bank cards business contributed Retail business Corporate 24% and 17% came from the retail business 12
  13. 13. Costs Operating expenses breakdown Earned fees fully cover personnel expensesRUB mln Personnel expenses Non-personnel expenses Net fee income / Personnel expenses +2.2% +4.7% 103% 101% 102% 1,053 820 835 784 878 94% 90% 1,271 1,224 1,352 1,258 1,260 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Cost-to-Income ratio Costs summary Operating expenses were under strict control in H1 72.5% 2012, fully in line with the bank’s plans for the year 62.7% 64.8% 58.3% Long-term operating efficiency project is ongoing on 52.7% the phase of building IT infrastructure to centralize 48.7% back-office operations Personnel expenses remained almost flat on a quarterly basis and are again fully covered by earned fees and commissions 2007 2008 2009 2010 2011 H1 2012 Cost to income ratio for H1 2012 declined from 68.2% for H1 2011 to 58.3% closer to normalized levels 13
  14. 14. Continued improvement of performance despiteconservative provisioning +52.2% +20.2% - Operating profit before provisions Operating Operating profit before provisions Provisions demonstrated visible improvements both on the quarterly (+20.2%) and year-on-year basis profit and (+52.2%), driven by solid revenue base and moderate controlled expansion of operating provisions, 1.4 1.4 1.4 1.6 costs. 1.1 RUB bln - Significant hike of provisioning in Q2’12 to Rub -0.6 -0.7 -0.7 -0.4 -0.8 830 mln on contrast to quite low charges of the previous quarter brought cost of risk for H1 2012 to 1.65% - comfortable level in a view of Q2’11 Q3’11 Q4’11 Q1’12 Q2’12 uncertain market conditions. +71.6% +28.9% Net profit - Net profit gains momentum for the 10th Net profit, consecutive quarter, bringing ROE to 14% in Q2’12. Thus, the bottom line grew by 72% YoY RUB bln and 29% QoQ. 0.678 0.471 0.526 0.395 0.411 Q2’11 Q3’11 Q4’11 Q1’12 Q2’12 14
  15. 15. Earnings generation capabilityROE, % ROA, % 14.0% 11.2% 10.4% 1.44% 9.1% 9.3% 1.15% 1.05% 0.91% 0.94% Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012Value generation Key points * % of average assets Profitability is on track – strong cost efficiency and 3.21% 1.76% optimal structure of assets and liabilities contributed to 2.67% further improvement of ROE – it reached 14% in Q2 2012 4.80% The bank is taking advantages on continued repricing 1.9% on both sides of the balance sheet due to careful A&L 0.27% management. Still conservative on provisioning, 1.44% operating efficiency is to add up value going forward NIM Non-interest Provisions HR costs Non-HR Tax Net profit income costs 15
  16. 16. Key takeaways of Q2 2012 Well-managed assets …supported by robust structure… funding…  Sharpened focus on profitable SME and retail  Benefits from wide client base – ability to supported by healthy loan demand attract funding at reasonable rates  Strong liquidity position maintained  Retail deposits – main contributor of growth  Conservative securities portfolio defends from  High share of interest-free funds significant losses  Loans-to-Deposits at optimal 100%  Positive NPLs dynamic …leads to revenues …to further benefit from boost… operating efficiency  Strong focus on efficiency improvement lead  Visible NIM expansion to decline of Cost-to-Income ratio  Higher yields on loan portfolio offset increased  Strict control over operating expenses funding costs  Future benefits from operating efficiency  Strong fees support revenue base project: - centralization of back-office  10 consecutive quarters of mounting net profit - focus on remote channels - shift to front-office operations 16
  17. 17. Questions and answers Elena Mironova Andrey Shalimov Deputy Head of IR Deputy Chairman of the Management +7 495 620 90 71 Board E.Mironova@voz.ru A.Shalimov@voz.ru investor@voz.ru http://www.vbank.ru/en/investors 17
  18. 18. DisclaimerSome of the information in this presentation may contain projections or other forward-looking statements regarding future events or thefuture financial performance of Bank Vozrozhdenie (the Bank). Such forward-looking statements are based on numerous assumptionsregarding the Bank’s present and future business strategies and the environment in which the Bank will operate in the future.The Bank cautions you that these statements are not guarantees of future performance and involve risks, uncertainties and other importantfactors that we cannot predict with certainty. Accordingly, our actual outcomes and results may differ materially from what we haveexpressed or forecasted in the forward-looking statements. These forward-looking statements speak only as at the date of this presentationand are subject to change without notice. We do not intend to update these statements to make them conform with actual results.The Bank is not responsible for statements and forward-looking statements including the following information:- assessment of the Bank’s future operating and financial results as well as forecasts of the present value of future cash flows and relatedfactors;- economic outlook and industry trends;- the Bank’s anticipated capital expenditures and plans relating to expansion of the Bank’s network and development of the new services;- the Bank’s expectations as to its position on the financial market and plans on development of the market segments within which theBank operates;- the Bank’s expectations as to regulatory changes and assessment of impact of regulatory initiatives on the Bank’s activity.Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materiallyfrom those expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include:- risks relating to changes in political, economic and social conditions in Russia as well as changes in global economic conditions;- risks related to Russian legislation, regulation and taxation;- risks relating to the Bank’s activity, including the achievement of the anticipated results, levels of profitability and growth, ability to createand meet demand for the Bank’s services including their promotion, and the ability of the Bank to remain competitive.Many of these factors are beyond the Bank’s ability to control and predict. Given these and other uncertainties the Bank cautions not toplace undue reliance on any of the forward-looking statements contained herein or otherwise.The Bank does not undertake any obligations to release publicly any revisions to these forward-looking statements to reflect events orcircumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable laws. 18
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×