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December 2008 2 VAB Bank. Overview
December 2008 2 VAB Bank. Overview
December 2008 2 VAB Bank. Overview
December 2008 2 VAB Bank. Overview
December 2008 2 VAB Bank. Overview
December 2008 2 VAB Bank. Overview
December 2008 2 VAB Bank. Overview
December 2008 2 VAB Bank. Overview
December 2008 2 VAB Bank. Overview
December 2008 2 VAB Bank. Overview
December 2008 2 VAB Bank. Overview
December 2008 2 VAB Bank. Overview
December 2008 2 VAB Bank. Overview
December 2008 2 VAB Bank. Overview
December 2008 2 VAB Bank. Overview
December 2008 2 VAB Bank. Overview
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December 2008 2 VAB Bank. Overview

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  • Крупнейшие: объем реализации свыше 500 млн. грн./год Крупные: 250-500 млн. грн. (в регионах – 150-500 млн. грн.) Средние: 25-250 млн. грн. (в регионах – 15-150 млн. грн.) Малые: менее 25 млн. грн. (в регионах-менее 15 млн. грн.)
  • Despite the slowdown of economic growth recorded in the second half of 2005, the Ukrainian economy remains on the course of steady real economic growth over the coming years, driven by continued steady increases in FDI flows Inflation is expected to decline gradually, and it is expected that broad based taxation reform will boost demand.
  • Despite the slowdown of economic growth recorded in the second half of 2005, the Ukrainian economy remains on the course of steady real economic growth over the coming years, driven by continued steady increases in FDI flows Inflation is expected to decline gradually, and it is expected that broad based taxation reform will boost demand.
  • Despite the slowdown of economic growth recorded in the second half of 2005, the Ukrainian economy remains on the course of steady real economic growth over the coming years, driven by continued steady increases in FDI flows Inflation is expected to decline gradually, and it is expected that broad based taxation reform will boost demand.
  • Transcript

    • 1. December 200 8
    • 2. VAB Bank. Overview <ul><li>Short name VAB Bank (formerly known as VABank) </li></ul><ul><li>Established 2nd July 1992, Kyiv </li></ul><ul><li>Member of VAB Group </li></ul><ul><li>Auditor Ernst &amp;Young </li></ul><ul><li>Ratings </li></ul><ul><ul><li>Moody’s Local Currency Deposits: B2 </li></ul></ul><ul><ul><ul><ul><ul><li>Foreign Currency Deposits: B2 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Outlook: Stable </li></ul></ul></ul></ul></ul><ul><ul><li>Fitch Foreign Currency: </li></ul></ul><ul><ul><ul><ul><ul><li>Long-Term IDR: B– </li></ul></ul></ul></ul></ul><ul><ul><li>Short-Term IDR: B </li></ul></ul><ul><ul><ul><ul><ul><li>Outlook: Negative </li></ul></ul></ul></ul></ul>
    • 3. Shareholders 90.4 % 60% 48, 9 % 40 % MAKSIMOV FAMILY 48, 9 % 11 % 80 % <ul><li>50/50 strategic partnership between international institutional investor and local business </li></ul><ul><li>Kardan N.V. is an international investment company based in the Netherlands with total assets of €5 bn as of 1H2008 and listed on Euronext Amsterdam and the Tel-Aviv Stock Exchange </li></ul><ul><li>In December 2007 Israel Discount Bank purchased 11% of Kardan Financial Services B.V. Israel Discount Bank agreed to provide KFS with EUR 225 million of credit facilities. </li></ul><ul><li>TBIF Financial Services is a subsidiary of Kardan N.V. focusing on retail and SME banking, consumer finance, leasing, mortgages and asset management. </li></ul><ul><li>Vienna Insurance Group (Wiener Stadtische) is the #1 insurer in Austria and #3 foreign insurer in the CEE region as of YE2007 </li></ul><ul><li>Currently operating in 20 countries, incl. Ukraine where it is a partner in VAB insurance and pension business through TBIH Financial Services Group N.V. </li></ul><ul><li>Mr. Sergey Maksimov is a local entrepreneur and the main shareholder of the Bank since 1995 with excellent local market knowledge and proven track record. His other businesses include port management, pharmaceuticals development and distribution, retail trading, insurance and construction. </li></ul>Kardan N.V. Kardan Financial Services B.V. TBIH Financial Services Group N.V.
    • 4. VAB Group <ul><li>VAB Bank. Comprehensive banking coverage (est. 1992) </li></ul><ul><li>VAB Express. Provision of consumer loans (est. 2006) </li></ul><ul><li>VAB Leasing. Provision of leasing services (est. 2005) </li></ul><ul><li>VAB Pension. Administration of private pension funds (est. 2004) </li></ul><ul><li>VAB Insurance. Provision of insurance services (est.2002) </li></ul><ul><li>VAB Life. Provision of life insurance services (est. 2004) </li></ul><ul><li>VAB Asset Management. Provision of asset management services (est. 2006) </li></ul><ul><li>VAB Capital. Professional activities in the capital market, including brokerage, dealing, underwriting and portfolio management services (est. 2006) </li></ul>
    • 5. VAB Bank. Strategic Goals <ul><li>To develop VAB as a full-service bank with strong franchise in retail and SME </li></ul><ul><li>To have strong distribution: </li></ul><ul><ul><li>to strengthen front office (sales) </li></ul></ul><ul><ul><li>to grow the network to 250 branches and outlets by YE2010 </li></ul></ul><ul><ul><li>to diversify sales channels </li></ul></ul><ul><li>To continue to develop both the Bank&apos;s human resources and information technology systems </li></ul>Key Financial Targets | in US$ millions | 2005 2006 2007 200 8F Assets 453 731 1 211 1 540 Loans to customers 244 515 911 1 240 Capital 64 1 0 1 142 200 Net profit 2.8 2.1 1.8 5
    • 6. Strong Management Team Petr Baron Chief Executive Officer Desmond O’Maonaigh Chief Financial Officer Tsvetan Petrinin Head of Retail Business Lukas Tursa, Head of Treasury, FI and Investment Banking <ul><li>VAB, CEO (2007-2008) </li></ul><ul><li>VABank, First Vice-President , (2006-07) </li></ul><ul><li>VABank, Supervisory Board member (2003-2008) </li></ul><ul><li>International Private Bank, Macedonia, (2002-2004) </li></ul><ul><li>Inkahrana, Russia, </li></ul><ul><li>First OVK Banking Group, Russia </li></ul><ul><li>BSc in Investment and Financial Risk Management from CASS Business School, London </li></ul><ul><li>OTP Bank, Kiev, CFO (2007-2008) </li></ul><ul><li>International Finance Corporation (2003-2007) </li></ul><ul><li>Ukraine International Airlines (2000 - 2003) </li></ul><ul><li>PricewaterhouseCoopers (1996-2000) </li></ul><ul><li>BSc in Economics </li></ul><ul><li>MSc in Business Studies, Finance </li></ul><ul><li>Ocean Bank, Moscow, Deputy Chairman of the Management Board responsible for retail and branch network (2007) </li></ul><ul><li>First Investment Bank, Sofia, Bulgaria, Head of Retail Department (2003-2007) </li></ul><ul><li>MSc in International Economic Relations </li></ul><ul><li>Ministry of Finance of Lithuania , ( 2004-2006 ), Deputy Head and Head of State Treasury </li></ul><ul><li>Ministry of Finance of Lithuania , ( 1998-2004 ) , Head of Middle Office </li></ul><ul><li>BSc in Banking and Int. Finance from CASS Business School, London </li></ul><ul><li>MSc in Economics </li></ul>Yuriy Klimov Head of Corporate Business Elena Domuz Head of Risk Management Nataliya Shelko Chief Operations Officer <ul><li>Alfa-Bank , Moscow, Senior Vice-President, Head of Settlements, Head of Products Development, Corporate Clients Relations Director (2003-2008) </li></ul><ul><li>ABN AMRO , Moscow , Vice-President, Corporate Settlements Office (2002-2003) </li></ul><ul><li>Siemens Financial Services , Moscow (2000-2002) </li></ul><ul><li>MSc in Economics </li></ul><ul><li>Swebank, Ukraine, Head of Risk Management Dept (2005-2007) </li></ul><ul><li>Ukrgasbank, Ukraine, Head of Credit Risk Management Division (2005) </li></ul><ul><li>First Ukrainian International Bank, Ukraine (2000-2005) </li></ul><ul><li>MSc in Finance and Economy, Accounting and Audit, Law </li></ul><ul><li>Raiffeisenbank Aval, Head of Operations (2006-2008) </li></ul><ul><li>OTP Bank, Head of Operations (2003-2006) </li></ul><ul><li>First Ukrainian International Bank, (2001-2003) </li></ul><ul><li>Ukraine Bank (1993-2001) </li></ul><ul><li>Msc in Economics </li></ul>
    • 7. Distribution Network <ul><li>Network coverage in all regional centers of Ukraine </li></ul><ul><li>Number of sales points will remain unchanged for 2008, several of them will be relocated to improve performance </li></ul><ul><li>Rebranding and new sales orientated concept introduced in 2006 ensuring competitive benefits for VAB Bank </li></ul><ul><ul><li>Facilitates cross-selling </li></ul></ul><ul><ul><li>Cost and capital effectiveness </li></ul></ul><ul><ul><li>Higher sales per square meter </li></ul></ul>Sales Points | Number | Branches and ATMs
    • 8. Assets and Capital Dynamics <ul><li>Total assets growth is constrained by the challenging market environment </li></ul><ul><li>Profit for the 3Q2008 amounted to USD 3.1 million (USD 1.8 million for the entire last year) </li></ul><ul><li>Total capital of the Bank increased by USD 49 million and reached USD 191 million at the end of 3Q2008 </li></ul><ul><li>Total Capital Adequacy Ratio strengthened to 18.4% as of 3Q2008 (15% as of YE2007) </li></ul><ul><li>The shareholders are committed to maintain CAR at the level of minimum 12% </li></ul>Growth Dynamics | in US$ millions | Assets, YE Growth Dynamics | in US$ millions | Total Capital, YE + 40 % YoY +34% +41% YoY + 66 % YoY + 1 % +27% YoY
    • 9. SME 56% Total Loan Portfolio | 3Q2008 | Breakdown by Customer Segments Loan Portfolio <ul><li>Lending policy: conservative risk assessment, fast decision making </li></ul><ul><li>VAB Bank’s share in the lending market stood at 1% as of 3Q2008 </li></ul><ul><li>Over 90% of the loan portfolio is collateralized </li></ul>ANNUAL SALES Largest &gt;$100m Large $50-100m Medium $5-50m Small $1-5m Retail SMEs &lt;$1mio + 77 % YoY + 13 % +36% YoY Growth Dynamics | in US$ millions | Loan Portfolio, YE Corporate Loan Portfolio | 1 H 2008 | Corporate Portfolio by Industries
    • 10. Loan Portfolio <ul><li>Concentration of the loan portfolio is further decreasing with top-10 Borrowers reaching 13.8% as of 3Q2008, down from 16.2% as of YE2007 and 22.9% as of YE2005 </li></ul><ul><li>The Bank issued 553 thousand payment cards as of 3Q2008 </li></ul>+ 61 % YoY Corporate Customers | in US$ millions | Corporate Loans, YE +7% YoY + 27 % YoY Private Customers | 3Q2008 | Retail Portfolio by Products Private Customers | in US$ millions | Loans to individuals, YE + 146 % YoY + 31 % +48% YoY
    • 11. Funding <ul><li>The main funding sources for 2008 are local bonds and parent funding </li></ul><ul><li>Deposits provide a stable source of funding on the background of the international market squeeze </li></ul><ul><li>VAB Bank has a strategic commitment to further diversify its funding base and reduce its cost of funding </li></ul><ul><li>No material foreign debt repayments due before 2010 </li></ul>492 738 7 21 924 Total Funding | percent | Funding Composition Funding | in US$ millions | Customer Deposit Portfolio +25% YoY +50% YoY 2008 Gross Borrowing USD millions Domestic Bonds 25 Funding from TBIF 55 -2%
    • 12. Funding. Capital Market Loans <ul><li>Amount: US $ 3 0 ,000,000 </li></ul><ul><li>Tenor: 7 years </li></ul><ul><li>Facility Date: Dec 2006 </li></ul><ul><li>Lenders </li></ul>Bilateral Loan <ul><li>Amount: US $51,000,000 </li></ul><ul><li>Tenor: 1year </li></ul><ul><li>Facility Date: Apr 2007 </li></ul><ul><li>Mandated Lead Arrangers </li></ul>Syndicated Loan <ul><li>Amount: US $15,000,000 </li></ul><ul><li>Tenor: 14 months </li></ul><ul><li>Facility Date: Feb 2006 </li></ul><ul><li>Mandated Lead Arranger </li></ul>Syndicated Loan <ul><li>Amount: US $1 0 ,000,000 </li></ul><ul><li>Tenor: 11 months </li></ul><ul><li>Facility Date: Jun 2006 </li></ul><ul><li>Mandated Lead Arranger </li></ul>Syndicated Loan <ul><li>Amount: US $ 2 0 ,000,000 </li></ul><ul><li>Tenor: 10 years </li></ul><ul><li>Margin: LIBOR + 4.5% </li></ul><ul><li>Facility Date: Oct 2007 </li></ul><ul><li>Lender </li></ul>Subordinated Loan
    • 13. Funding. Eurobonds Debut Issue “… Bookrunners’ comment: …In all the time I’ve been doing emerging markets bonds, I’ve not seen a book like this for a credit of this type…” “… Reactions had been very positive, with investors impressed by both strong management team and the bank’s strategy…” “… Spencer Maclean (Deutsche Bank) stressed the high participation rate of investment grade and crossover accounts in the book, in addition to the traditional high-yield and dedicated EM funds...” <ul><li>Amount: US $125,000,000 </li></ul><ul><li>Tenor: 3 years ▲ </li></ul><ul><li>Coupon: 10.125% </li></ul><ul><li>Format: Reg S </li></ul><ul><li>Issue Date: June 2007 </li></ul><ul><li>Lead Managers </li></ul>Eurobonds Issue Investor Base | percent | Breakdown by Geography Investor Base | percent | Breakdown by Investor Type
    • 14. Credit Ratings <ul><li>VAB Bank cooperates with Moody’s and Fitch since 2003 and 2006 respectively </li></ul><ul><li>In June 2008 Moody&apos;s confirmed the bank’s B2 long-term local and foreign currency deposit and debt ratings and assigned the stable outlook </li></ul><ul><li>In June 2008 Fitch affirmed VAB Bank’s foreign currency long-term issuer default rating and outlook at B- (stable). In November 2008 Fitch changed the outlook from “stable” to “negative” in light of the sharp depreciation of the Ukraine’s national currency </li></ul>“… The bank’s further franchise expansion, accompanied by declining business concentrations, may put upward pressure on the ratings. Funding base diversification and a strengthening of liquidity should be also positive for the bank’s financial standing …“ “… The rating derives from the bank’s current market standing, relatively advanced for Ukrainian bank corporate governance and risk management practices and the expected strengthening of the bank’s retail franchise following the execution of the strategy, supported by expansion of the branch network together with enhancing the infrastructure and IT systems ...” Current Ratings Rating Outlook Long-Term Issuer Default Rating B- Negative Short-Term Issuer Default Rating B Individual D/E Support 5 National Long-Term BBB- (ukr) Negative Current Ratings Rating Outlook Bank Deposit Foreign Currency B2/NP Stable Bank Deposit Local Currency B2/NP Stable BFSR E+ Stable National A1.ua
    • 15. Summary <ul><li>Strong, supportive, long-term strategic investors with sufficient financial resources and experience to ensure success </li></ul><ul><li>Top quality senior management team with extensive international experience </li></ul><ul><li>Strong branch network coverage </li></ul><ul><li>Unique customer service approach and well-developed brand. Brand awareness increased from 18% in 2006 to 47% in January 2008 </li></ul><ul><li>High capitalization level with 18.4% Basel Capital Adequacy Ratio as of 3Q2008 </li></ul><ul><li>International standard risk management systems with proven capability to manage rapid growth </li></ul><ul><li>High standards of corporate governance and transparency: ranking the 3 rd among the most transparent banks in Ukraine according to Standard &amp; Poor&apos;s survey in Nov 2008 staying among the leaders for the third consecutive year </li></ul>
    • 16. Contact Details 5 Zoolohichna Street, Kyiv 04119, Ukraine Tel.: (38 044) 481-33-48 Fax: (38 044) 481-33-49 e-mail: [email_address] [email_address] Telex: 631048 VABNK UX S.W.I.F.T. BIC: VABA UA UK REUTERS: VABK Please see www.vabbank.com.ua for more details about VAB 04/05/10 12:25 <ul><li>Mr. Lukas Tursa </li></ul><ul><li>Deputy Chairman of the Management Board </li></ul><ul><li>Head of Treasury and Financial Institutions </li></ul><ul><li>Tel.: +38 044 492 39 80 </li></ul><ul><li>e-mail: l.tursa@vab.ua </li></ul>Financial Institutions &amp; International Borrowings <ul><li>Mr. Viktor Duma </li></ul><ul><li>Head of Financial Institutions &amp; International Financing </li></ul><ul><li>Tel.: +38 044 481 33 48 </li></ul><ul><li>e-mail: v.duma@vab.ua </li></ul><ul><li>Ms. Natalia Bastun </li></ul><ul><li>Correspondent Banking </li></ul><ul><li>Tel.: +38 044 481 33 47 </li></ul><ul><li>e-mail: n.bastun@vab.ua </li></ul>FX &amp; Money Market <ul><li>Ms. Natalia Shishatska </li></ul><ul><li>Head of Money &amp; Forex Markets </li></ul><ul><li>Tel.: +38 044 490 06 36 </li></ul><ul><li>e-mail: n.shishatska@vab.ua </li></ul><ul><li>Mr. Oleksiy Tihiy </li></ul><ul><li>Head of Dealing </li></ul><ul><li>Tel.: +38 044 481 33 53 </li></ul><ul><li>e-mail: a.tihiy@vab.ua </li></ul>Documentary Business <ul><li>Ms. Tetyana Synitsyna </li></ul><ul><li>Head of Documentary Business </li></ul><ul><li>Tel.: +38 044 490 06 34 </li></ul><ul><li>e-mail: t.synitsyna@vab.ua </li></ul><ul><li>Ms. Iryna Drygalo </li></ul><ul><li>Deputy Head of Documentary Business </li></ul><ul><li>Tel.: +38 044 490 06 34 </li></ul><ul><li>e-mail: i.drygalo@vab.ua </li></ul>Investment Banking <ul><li>Ms. Dorina Zilbermints </li></ul><ul><li>Investment Business </li></ul><ul><li>Tel: +38 044 481 33 55 </li></ul><ul><li>E-mail: d.zilbermints@vab.ua </li></ul>

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