Vzrz q1 2014_ifrs_results_eng

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Vzrz q1 2014_ifrs_results_eng

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Vzrz q1 2014_ifrs_results_eng

  1. 1. Q1 2014 IFRS Results Flexibility adds value Conference Call May 28, 2014
  2. 2. 2 12 13 13 13 12 149 150 155 156 158 11 12 14 12 76,41 1 1 1 1 37 40 33 29 26 210 216 217 211 211 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Cash and equivalents Due from banks Invest. securities pledged under repos Securities Net loans Other assets IEA 80% IEA 82% Assets and liabilities Interest-earning assets grew to 82% of balance sheet Diversified funding structure Liquid assets share at a comfortable level L/D ratio up as client funds replaced by CBR financing RUB bln RUB bln RUB bln 21 21 22 22 23 7 7 5 4 43 1 1 4 17 9 9 10 14 163 169 171 162 153 5,5 8 8 9 9 10 210 216 217 211 211 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Due to other banks Borrowed funds from repos with CBR Client funds Securities issued Other liabilities Subordinated loans Equity 164 167 173 168 172163 169 171 162 153 101% 99% 102% 104% 112% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Gross loans Customer funds L/D 29 26 5 5 6,9 1,7 6,4 19,4% 18,3% Q4 2013 Q1 2014 Securities pledged under repos with CBR Investment securities available for sale Trading securities Cash and cash equivalents
  3. 3. 3 26 26 25 24 20 35 36 37 31 29 60 62 62 55 49 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Corporate deposits Corporate accounts Customer funds - corporate Corporate client funds continues dropping… … but not due to clients loss RUB bln Key points 30,7 31,9 30,4 26,4 26,2 33 32 33 32 32 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Average balances on corporate current accounts, Rub mln Number of accounts, thousand FX structure 91% 7% 2% Rub 48.6 billion Rouble US Dollar Euro We are reluctant to raise corporate deposits, a volatile funding source, due to fierce competition and heightened market rates. A decline in corporate accounts resulted from lower average balances across the whole client base that reflected customers’ search for diversification and growing needs of their own businesses in working capital. Share of FX corporate funds grew from 7% to 9 % QoQ on the devaluation effect. -12.3%
  4. 4. 4 Customer funds - retail Retail client funds Credit turnover on card accounts growing RUB bln 84 87 91 87 89 18 20 18 19 16 103 107 109 106 104 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Retail deposits Balances on card accounts RUB bln Key points 73% 19% 8% Rub 104,5 billion Rouble US Dollar Euro 0 5 10 15 20 25 30 FX structure 2012 2013 2014 RUB bln Q1 2012 38.9 Q1 2013 40.3 Q1 2014 41.4 The decline in retail funds was reasoned by seasonal outflow from card accounts during long New Year and Christmas holidays. However, the credit turnover in Q1 2014 improved by 2,7% YoY. FX deposits were in clients’ demand with the proportion in total retail funds growing to 27%. Excluding revaluation effect, retail FX deposits grew by 3,4%. -1.5%
  5. 5. 5 Loan portfolio Corporate portfolio free of uncollectable NPLs Retail portfolio with mortgages leading the way RUB blnRUB bln 46,1 50,8 52,0 51,4 51,6 83,4 78,4 80,0 73,3 75,6 1,2 0,9 0,7 0,9 0,5 131 130,2 132,6 125,6 127,8 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Large corporates SMEs Administrations 59% +1,7% 22,8 24,9 27,6 29,5 30,6 8,7 9,8 10,7 11,0 11,2 2,1 2,1 2,2 2,1 2,1 33,6 36,8 40,5 42,6 43,9 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Mortgages Consumer and car loans Credit cards The 3rd mortgage securitization deal on RUB3,45 billion was successfully closed in March 2014 70% +2,8% FX structure * 90% 7% 3% Rub 171,6 billion Rouble US Dollar Euro As of April 1, 2014 20% 41% 18% 10% 11% Moscow Other regions South Regions North-West Regions Moscow Region As of April 1, 2014 Rub 171,6 billion Regional diversification of loan portfolio * *Loan portfolio before provisions for impairment
  6. 6. 6 7 772 7 939 8 671 3 518 3 882 9,8% 10,6% 11,1% 5,3% 5,3%9,2% 10,0% 10,8% 4,7% 5,1% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 SMEs 8 098 8 229 8 135 7 517 7 517 13,3% 14,1% 15,2% 14,8% 16,1% 17,6% 16,2% 15,6% 14,6% 14,6% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Large corporates NPLs, Rub mln Provisions, % of total portfolio NPLs, % of total portfolio 1 009 1 102 1 810 1 350 1 730 3,6% 3,7% 3,2% 1,9% 2,0% 3,0% 3,0% 4,5% 3,2% 3,9%* Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Retail Credit quality management 15 2,10% 0,57% 3,11%3,12% 2,46% 2,10% 2,30% 2,90%2,79% 2,46% Q1 2014Q4 2013Q3 2013Q2 2013Q1 2013 Charges to provisions to avg gross loans, QoQ Charges to provisions to avg gross loans, YtD +Rub 553 mln new NPLs -Rub 149 mln recoveries -Rub 40 write-offs +Rub 776 mln new NPLs -Rub 396 mln recoveries 14 102 16 879 17 270 18 616 12 385 13 129 9,40% 9,54% 10,13% 10,46% 7,36% 7,70% 9,02% 10,28% 10,35% 10,75% 7,36% 7,65% Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 NPLs, Rub mln Provisions, % of total portfolio NPLs, % of total portfolio * no new NPLs no recoveries NPLs categorization Annualized cost of riskNPLs dynamics* * NPL includes the whole principal of loans at least one day overdue either on principal or interest as well as not overdue loans with signs of impairment *2,0% of which is overdue less than 30 days
  7. 7. 7 Credit quality As of 31.03.2014 Large corporates SMEs Mortgages Other retail Total Gross loans, including 51,573 76,178 30,622 13,233 171,606 Current loans 85.4% 94.9% 97.0% 93.9% 92.3% Past-due but not impaired, including - 0.3% 2.4% 1.8% 0.7% Less than 90 days - 0.1% 2.3% 1.7% 0.6% Over 90 days - 0.2% 0.1% 0.1% 0.1% Impaired, including 14.6% 4.8% 0.6% 4.3% 6.9% Less than 90 days - 0.8% 0.1% 0.5% 0.4% Over 90 days 14.6% 4.0% 0.5% 3.8% 6.5% Total NPLs 14.6% 5.1% 3.0% 6.1% 7.7% Provisions -16.1% -5.3% -0.9% -4.6% -7.7% Net Loans 43,274 72,151 30,338 12,630 158,393 Provisions to NPLs Ratio 101% Provisions to 90 days+ NPLs 116% Rescheduled Loans 6.5% NPL - the whole amount of loans with principal overdue for more than 1 day as well as loans with any delay in interest payments. RUB mln
  8. 8. 8 Financial highlights As of 31.03.2014 1Q14 4Q13 1Q13 YoY QoQ Interest income 5,063 5,005 4,451 13.7% 1.2% Interest expense (2,472) (2,359) (2,271) 8.9% 4.8% Fee and commission income 1,101 1,148 1,222 -9.9% -4.1% Fee and commission expense (185) (208) (115) 60.9% -11.1% Other operating income 138 96 203 -32.0% 43.8% Total operating income b.p. 3,645 3,682 3,490 4.4% -1.0% Operating expense (2,187) (2,417) (2,091) 4.6% -9.5% Provisions for loan impairment (893) (244) (985) -9.3% x3.7 Provisions for impairment of other assets (9) (121) 21 - -92.6% Taxation (128) (176) (102) 25.5% -27.3% Net profit 428 724 333 28.5% -40.9% RUB mln
  9. 9. 9 Target on NIM achieved Net interest income evolution NIM decomposition Recent changes of retail deposit ratesSpread dynamics 4,5 4,6 4,9 5,0 5,1 -2,3 -2,4 -2,5 -2,4 -2,5 2,2 2,2 2,4 2,6 2,6 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 RUB bln +0,15% -0,09% -0,17% +0,07% Loans Deposits Other Base effect 4,2% 4,2% 4,5% 4,9% 4,9% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 6,4% 6,4% 6,7% 6,9% 6,6% 11,2% 11,5% 11,8% 11,8% 11,9% 4,8% 5,0% 5,1% 4,9% 5,3% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Spread (net) Yields on earning assets (net) Cost of funds 6 Months RUB 1,5-year RUB 6 Months FX 1,5-year FX Sep’13 - -0,25 pps Feb’14 - - -0,5 pps – -0,6 pps -0,5 pps – -0,6 pps Mar’14 - +0,5 pps – +1 pps -0,1 pps – -0,3 pps -0,1 pps – -0,3 pps
  10. 10. 10 1 107 1 215 1 247 940 916 1 058 1 137 1 145 1 169 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 Net fee income Net fee income with corrected gradual accruals of one-off reclass -1,0 -1,3 -1,3 -0,4 -0,9 1,4 1,5 1,7 1,3 1,5 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Provisions Operating profit before provisions and taxes 2,2 2,2 2,4 2,6 2,6 1,1 1,2 1,2 0,9 0,9 0,20 0,22 0,14 0,10 0,14 -2,1 -2,1 -2,1 -2,4 -2,2 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Net interest income Net fees Other income Operating Expenses Operating results Net profitOperating profit under provisions pressure Stable operating result Net fees RUB bln RUB bln RUB mln 333 188 247 724 428 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Net profit RUB mln -1.0% +15.3% -40.9% -21.6% +4.2% +4.4% +28.5% -13.4%
  11. 11. 11 11,9% 11,7% 11,4% 12,0% 8,8% 9,7% 14,9% 14,6% 13,2% 13,8% 11,2% 11,6% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q4 2013 Q1 2014 Tier 1 Tier 1 + Tier 2 Total regulatory capital (Н1.0) Common equity Tier 1 (Н1.1) Efficiency indicators Operating efficiencyCapital adequacy Cost-to-Income ratio, % ROA, %ROE, % Basel I Basel III 26,7% 28,8% 31,2% 23,0% 25,8% 6,3% 3,5% 4,6% 13,2% 7,6% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Operating profit before provisions and taxation / Average equity ROE 2,7% 2,9% 3,1% 2,4% 2,8% 0,6% 0,4% 0,5% 1,4% 0,8% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Operating profit before provisions and taxation / Assets ROA 59,9% 58,2% 56,0% 65,6% 60,0% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
  12. 12. 12 Questions and answers investor@voz.ru http://www.vbank.ru/en/investors Elena Mironova Deputy Head of IR +7 495 620 90 71 E.Mironova@voz.ru Andrey Shalimov Deputy Chairman of the Management Board A.Shalimov@voz.ru
  13. 13. 13 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 Bank Vozrozhdenie (the Bank). Such forward-looking statements are based on numerous assumptions regarding 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 important factors that we cannot predict with certainty. Accordingly, our actual outcomes and results may differ materially from what we have expressed or forecasted in the forward-looking statements. These forward-looking statements speak only as at the date of this presentation and 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 related factors; - 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 the Bank 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 materially from 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 create and 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 to place 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 or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable laws.

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