Q1 2009 IFRS results
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

Q1 2009 IFRS results

on

  • 574 views

Q1 2009 IFRS earnings presentation of Vbank

Q1 2009 IFRS earnings presentation of Vbank

Statistics

Views

Total Views
574
Views on SlideShare
574
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Q1 2009 IFRS results Presentation Transcript

  • 1. Q1 2009 IFRS Results Good operating performance in first challenging quarter Conference Call May 27, 2009
  • 2. Contents • Macroeconomic overview • Highlights of financial results • Risk management • Recent developments • Q2 2009 expectations 2
  • 3. Macroeconomic Overview Industry Growth, % YoY Main factors that influenced Bank’s activity 120% 115% - Russia Q1 2009 GDP growth was negative – 9,5%. 110% New official FY2009 GDP forecast by the Ministry of 105% Economic Development - 6% decline. 101% 100% 95% 91% 90% - At the Q1 end quarter inflation amounted to 5,4%. 90% 87% 86% Currently trend slowed down resulted in reduction 84% 85% CBR refinancing rate from 13% to 12,0% 80% 01.02.08 01.05.08 01.08.08 01.11.08 01.02.09 - Situation in labour market deteriorated significantly. Unemployment up to 9,5% as Russian companies Unemployment and Income continued to cut stuff. This is 2,4% higher than year Unemployment,% (left axis) 10% Real Disposable Income, % YoY (right axis) 9,50% 115,0 ago. 109,2 110,0 8% 107,6 105,0 - Manufacturing reduction in March resulted from 6% 7,10% 7,00% 105,0 domestic slowdown and export deceleration. 99,9 5,40% 5,80% 100,0 Index of Manufacturing in Q1 2009 amounted to 4% 93,9 85,7% YoY. 95,0 2% 90,0 - Banks’ loan books shrank during Q1 2009 and pushed up NPL growth in corporate and retail 0% 85,0 01.03.08 01.06.08 01.09.08 01.12.08 01.03.09 sectors to 3,5% and 4,7% respectively 3
  • 4. Q1 2009 Financial highlights Q1 2009 Q1 2008 Change YoY Total Deposits 90 062 87 503 +2.9% Total Net Loans 93 027 81 317 +14.4% Loan to Deposit ratio 110.3% 99.5% 10.4 p.p. Total Operating Income 3 617 2 606 +38.8% Total Operating Costs - 1 390 - 1 589 -12.5% Net Profit 386 681 -43.3% Cost to Income ratio 38.4% 61.0% -22.4 p.p. Capital Adequacy Ratio 18.5% 15.9% +2.6 p.p. ROE 10.1% 22.3% - 12.2 p.p. 4
  • 5. Core revenues are still resilient +43% +4,5% Interest Income Interest Expenses - Re-pricing of corporate loan Interest portfolio as a result of adverse market conditions allowed us to Income and 3,9 4,4 4,6 increase Q/Q interest income by 5% 3,3 despite loan portfolio contraction 2,9 Interest Expenses, -1,2 - 22% increase of funding costs -1,4 -1,7 -1,8 -2,2 RUB bln resulted from retail deposits rates growth and relatively high cost of +22% CBR funding +83% Q1’08 Q2’08 Q3’08 Q4’08 Q1’09 +0,9pps - Net interest margin decreased by 0,8 pps Q/Q pressured by rising 7,5% deposits rates. 6,4% 6,7% 6,7% 5,8% NIM evolution Q1’08 Q2’08 Q3’08 Q4’08 Q1’09 5
  • 6. Tight control over expenses Net Interest income Other Income +38% Net Fees Operating expenses 0,3 - Q/Q contraction of client transaction 0,1 1,2 0,4 0,2 due to more then 10 holidays during 1,1 0,9 Operating 0,1 1,0 quarter and overall slowdown of 0,8 business activity resulted in - 25% Income and 2,0 2,3 2,6 2,3 net fee income, but it’s still more 1,7 then in Q1 2008 Expenses, - Operating expenses 30% Q/Q RUB bln -1,6 -1,8 -1,7 -2,0 -1,4 decrease was mainly supported by personnel and administration -30% expenses cuts -13% Q1’08 Q2’08 Q3’08 Q4’08 Q1’09 -22,6pps - Cost-to-Income ratio reduced by 61,0% 54,7% 22,6 pps as a result of strategic cost 47,8% 50,0% reduction program. Target 2009 - Cost to focus on cost management with key 38,4% Income area of saving – staff costs. before provisions,% Q1’08 Q2’08 Q3’08 Q4’08 Q1’09 6
  • 7. Net profit decrease caused by higher charges to provisions +120% - Operating profit before provisions Operating profit before provisions +10% grew by 10% QoQ and by 120% Operating Provisions YoY. profit and 1,5 1,8 2,0 2,2 1,0 - Above-plan Q1 profit allowed us to provisions, -0,1 -0,3 apply conservative provisioning for -0,6 -1,2 loan impairment. Charges grew by RUB bln -1,6 16 times YoY Q1’08 Q2’08 Q3’08 Q4’08 Q1’09 -43% Net profit - Net profit was 33% less than in Q4 2004 due to significant charges to Net profit, -33% provisions for loan impairment RUB bln 0,9 1,0 0,7 0,6 0,4 Q1’08 Q2’08 Q3’08 Q4’08 Q1’09 7
  • 8. Credit Quality Management NPL growth Distribution of exposure remains well-diversified Provisions, % of Total Loans 6,4% Other NPL, % of Total Loans * Industry of them impaired, % of Total Loans Transport 13% 5,0% 5,9% 4,8% State 10% 24% 3,6% 3,5% 4,7% organizations 3,4% 5% RUB 81,351 2,5% 2,2% Finance 4% Construction 1,8% mln. 1,4% 13% 0,6% Wholesale & 26% 5% 2005 2006 2007 2008 Q1 2009 retail trade * NPL includes the whole principal of loans at least one day Agriculture overdue (either principal or interests) Retail over-due loans* Corporate loans breakdown by number 6,0% Up to 30 mln Overdue loans on credit cards 30-100 mln More than 90% of 5,0% Overdue car and consumer loans 100-750 mln 1% loans are less Overdue mortgages/mortgage portfolio 11% 4,0% more than 750 mln than RUB 100 mln 3,0% 16% 1509 2,0% borrowers 1,0% 72% 0,0% 01.01.06 01.07.06 01.01.07 01.07.07 01.01.08 01.07.08 01.01.09 * Over-due includes the whole principal of loans at least 30 day overdue 8 15
  • 9. Credit quality breakdown Large SMEs Mortgages Other Total % of corporate retail total as of 01.04.2009 loans Gross loans, including 22 726 58 625 8 924 9 146 99 421 100.0% Current loans 22 224 54 323 8 425 8 579 93 551 93.4% NPL, of them 502 4 302 499 567 5 870 5.9% past-due less than 30 - 580 244 145 1 387 1.4% days past-due over 30 days - 60 184 5 438 0.4% Impaired 502 3 662 71 417 4 652 4.7% Provisions - 1 176 - 4 480 - 271 - 467 - 6 394 6.4% Net Loans 21 150 54 145 8 653 8 679 93 027 - Restructured loans FY2008 Q1 2009 (at the end of reported 44 loans 2,7% of 65 loans 3,7% of period) corporate loans corporate loans 9
  • 10. Prepared for economy deterioration Strong liquidity position Recovery of retail deposit base RUB bln RUB bln 141 Cash & 137 138 141 equivalents 137 138 Retail deposits 132 132 18 29 16 30 Retail accounts 117 1 Due from 117 40 8 other 43 44 10 2 banks 41 Corporate 18 0,2 11 accounts 8 20 10 5 38 Corporate Securities 12 8 18 19 17 deposits 13 10 13 17 Securities 22 issued 12 21 Retail loans 26 27 Due to other banks 17 24 15 83 Syndicated 6 5 loans 75 76 76 22 Corporate 20 64 loans 13 21 Other Liabilities 19 7 7 8 3 2 3 3 3 3 3 2 5 Subordinated 4 Other 3 4 loans assets 13 14 15 15 13 5 5 7 5 5 Equity Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 10
  • 11. Monthly balance sheet changes (under RAS) Slightly lower loan book during the quarter Decreasing share of CBR funding RUB bln RUB bln 141 143 143 138 138 141 143 143 138 138 6% 4% 5% 5% 5% Cash & equivalents 2% 2% 2% 13% 13% 12% 12% CBR loans 4% 3% 14% 1% 1% 15% 15% 1% 1% 12% 17% 16% Budget accounts Accounts w ith CBR 8% 8% 7% 7% 7% Retail clients accounts Due from banks 36% 37% 38% 39% 38% 13% 13% 13% 13% 12% Current accounts Securities Corp clients deposits & veksels 15% 13% 13% 14% 15% Retail lending Bonds 54% 55% 53% 56% 51% 16% 16% 15% 15% 14% Due to banks Corporate lending 2% 2% 2% 2% 2% 4% 5% 5% 4% 4% Other liabilities 2% 2% 2% 2% 3% Other assets 11% 11% 11% 12% 11% Equity 3% 3% 3% 3% 5% 01.01.09 01.02.09 01.03.09 01.04.09 01.05.09 01.01.09 01.02.09 01.03.09 01.04.09 01.05.09 11
  • 12. Currency and capital management No mismatch in currency structure Capital adequacy Data as of May 01, 2009 Assets Foreign currency assets CAR Tier 1 Tier 1 + Tier 2 USD under CBR rules - Correspondent accounts (H1) 18% - Cash 18,5% Other - Eurobonds of best 17,34% 8% 16,5% RUB Russian corporates 15,8% 74% 15,0% 14,4% 14,4% Moderate 12,9% 12,6% 12,0% MIN influence on CAR 11,7% 11% Liabilities Foreign currency liabilities (less capital) - Retail deposits USD 18% - Corporate funds Other RUB 8% 63% Equity Trend for conversion 11% stopped in Feb’09 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 01.05.09 12
  • 13. Retail funds trends Retail deposits, 2006-2009 Card accounts, 2006-2009 ’000 acc. RUB bn RUB bln 1220 17 50 Credit turnovers, rub bln 1160 16 RUB Balances, rub bln RUB 43.7 bln 1100 Active accounts,'000 15 43.4 bln 1040 14 40 980 13 920 12 We managed to 860 11 achieve initial level of 30 deposits in February, 800 10 2009 (in ruble terms). 740 9 680 8 620 40,2 7 20 560 126 6 Oct08 Dec08 Jan09 Feb09 500 5 89 Vbank -12.9% +9.1% +4.3% +1.9% 440 4 10 Sector -6.0% +6.9% +3.5% +1.7% 380 66 3 320 2 260 1 0 200 0 2006 2007 2008 2006 2006 2007 2007 2008 2008 2009 2009 Source - CBR, estimates - Vozrozhdenie 13
  • 14. Interest rates management Rates on loans Rates on funding Credit cards, RUB Consumer loans, RUB Retail, RUB 1 year Retail, USD 1 year 25 Mortgages, RUB Corporate loans 25 Corporate, RUB 1 year Corporate, USD 1 year 20 20 15 15 10 10 5 5 01.10.07 01.01.08 01.04.08 01.07.08 01.10.08 01.01.09 01.04.09 01.10.07 01.01.08 01.04.08 01.07.08 01.10.08 01.01.09 Yield and cost of funding Spread Yield Cost of funding 17,3% 15,9% 14,1% 12,3% 13,0% 10,1% 10,1% 8,1% 8,6% 7,5% 7,2% 5,6% 5,8% 4,8% 4,9% Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 14
  • 15. First results of work on cost efficiency Assets per employee growth Change of headcount RUB mln +2.3% +18.9% -1% 6183 6260 6322 6414 6348 22,0 21,6 21,2 20,2 18,5 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Staff costs per employee reduction Income per employee growth Operating Income before provisions, RUB mln Staff costs, RUB mln 190 Monthly Operating Income per Employee (RHS), rub '000 Monthly staff costs per employee (RHS), rub '000 1500 70 4200 220 140 1250 56.9 65 3500 200 42.7 1000 60 2800 180 750 55 2100 160 500 50 1400 140 250 45 700 120 0 40 0 100 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 15
  • 16. What we expect in Q2 2009 Continuing credit quality deterioration Very conservative provisioning Positive operating results Cost efficiency 16
  • 17. Questions and answers Julia Vinogradova Andrei Shalimov Advisor to the Chairman Member of the Management Board +7 495 705 91 44 Head of Treasury Yu.Vinogradova@voz.ru A.Shalimov@voz.ru investor@voz.ru http://www.vbank.ru/en/investors 17