Investor presentation Apr 2013

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Investor presentation Apr 2013

  1. 1. Bank VozrozhdenieSteady growth despite economy deceleration Investor presentation April 2013
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  3. 3. Agenda Business model Business overview Recent IFRS results Investment summary 3
  4. 4. Over 20 years of successful developmentEstablishment 9 new regional Joined the Rated by the The 3rd Top 3 in the Best mid- 3rd by Best SME Best Corporateand banking branches World Bank Central Bank largest State cap Russian lending to bank in Governance,license opened development as a stable branch Mortgage bank (Big SME Moscow Russia (World program bank after network Program Money) Oblast Finance) Cash collection $81 mln34 branches and delivery Cooperation the financial Top 10 by Top 7 $ 177 mln EBRD Top 10 retail Best IRin the Moscow services with CIBC Crisis deposits mortgage raised by financing banks in ManagementOblast established CIBC from provider 20th issue Russia in Russia S&P rating Top 10 by Corr. accounts becomes a individuals bank cards First MBS (Global with western shareholder issued deal on Rub Banking & banks 4,1 bln Finance review) 1991-1992 1993-1995 1996-1998 1999-2002 2003-2004 2005-2006 2007-2008 2009-2010 2011-2012 2013 License for Associate Bank’s ADRs Top 20 by 17th equity Overall Top 500 Bank of the Alexanderforeign member of VISA traded on the corporate issue raises rebranding world’s Year in Russia Dolgopolovexchange International Frankfurt loan portfolio $33 million CRM system banking in 2010 (The appointed Authorized Bank Stock Widest ATM Joined development brands Banker) as the of the Russian Exchange network in Deposit Best bank IR Over 1,550,000 Chairman of The most the Government Established the Moscow Insurance transparent and best IR clients ATM network Oblast Program professional Management Joined S.W.I.F.T. bank in Best public Board and a Over 100,000 Russia (S&P) (Thomson company processing VISA cards Reuters ) (Secret Firmy V.Bank center issued Magazine) shares included in MICEX Index 4
  5. 5. Vozrozhdenie Bank - a Community Bank built on strong relationshipswith SMEs and individual customersVozrozhdenie Bank Focus On Core Banking Productsstrategy… Servicing Corporate and SME Customers In Each Stage Of Business Development Servicing retail customers throughout their whole life-cycle Balanced Lending and Funding policy Prudent risk-management policy Increasing efficiency in service delivery…service… … 1 522 000 Retail Clients… … 61 400 Corporate and SME Clients……via… … 21 Region … 148 Offices … 838 ATMs … 6 173 employees 5
  6. 6. Distribution network As of 01.04.2013 Moscow Oblast is a home territory with historically strong market position Branches Sub branches Retail offices Total 34 42 14 90 526 ATMs – every town is under coverage 21 region of presence. Focus on the most attractive South and North-West Branches Sub branches Retail offices Total 19 37 2 58 312 ATMs 6
  7. 7. Basic information & position in Russian banking systemKey Figures, RUB Rankings* Assets 209,062 mln Net Assets 29 Loans 141,662 mln Loans to SMEs 4 Customer Funds 163,876 mln Net Income 2,331 mln Volume of retail deposits 17 Shareholders equity 20,807 mln Mortgages 8 Retail Clients 1,522,000 Corporate Clients 61,400 Corporate loans 22 Personnel 6,173 Bank cards issued 8 Offices 148 ATMs 838 Branches/ATMs 32/19 * RBC most recent rankings 7
  8. 8. Market recognition Credit ratings Listing Moody’s Ba3/D-/NP, stable Included in indices MICEX Financial Index Standard&Poor’s BB-/ruAA-, stable Listing A2 MICEX High recognition of brand World Finance V.Bank has the “Best Corporate Governance, Russia”, according to World Finance survey Moodys S&P The Banker25Aaa AAA V.Bank – “The Bank of the year 2010 in Russia” Moodys Interfax Aa3.ru as per the survey of The Banker magazine22Aa AA ruAA- IPSOS survey19A S&P A 85% of respondents in our regions know us16Baa national scale BBB Ba3 TNS loyalty survey MoodysBa13 BB Loyalty index equals top 10% of major international banks10B BB- B 94% of our clients are ready to recommend us S&PCaa international CCC BrandFinance Banking 500 survey 7 01/01/06 01/12/06 01/11/07 01/10/08 01/09/09 01/08/10 01/07/11 01/06/12 V.bank ranks among top-10 Russian most valuable banking brands with brand value of $190 million 8
  9. 9. Business model 9
  10. 10. Market strategy Balanced Credit and Personal bank for Focus on core banking Resource policies corporate and retail customers products Corporate clients Retail customers Servicing on each stage of business Servicing throughout their whole life-cycle development Customer acquisition Expansion of branches and Growth of individual depositors Payrolls combine retail and ATMs network and borrowers number corporate segments 10
  11. 11. Business modelBusiness based on relationships… … gives stable non-interest income RUB bln Non-interest income Net interest income - Customer oriented organic growth 3,759 3,773 3,875 3,743 3,402 - Conservative balance sheet 41% 40% 42% 36% 37% - Primarily deposit funded 64% - Focused network expansion 59% 63% 60% 58% - Increasing efficiency in service delivery Q411 Q112 Q212 Q312 Q412Loan portfolio development… … funded by customer accounts Note: all loans are gross loans RUB blnRUB bln Retail loans Interest-free Current accounts Corporate loans Interest-bearing Deposits 156 145 143 152 151 164 152 151 144 137 57 33 51 48 28 31 21% 53 40 35% 26 24 98 79% 113 91 120 124 101 103 107 65% 92 94 Q411 Q112 Q212 Q312 Q412 Q411 Q112 Q212 Q312 Q412 11
  12. 12. Assets and liabilities Reliable assets structure… …supported by customer-based fundingRUB bln RUB bln Retail deposits 209 209 194 195 Cash and 195 Retail accounts 184 183 equivalents 184 194 43 183 Corp. accounts 34 35 Due from 40 29 banks 81 0.4 0.4 6 77 78 Corp. deposits 0.4 12 12 8 72 1 14 72 9 Securities 27 30 32 Securities issued 23 25 21 Retail 20 18 19 18 Due to other banks loans 30 36 31 32 Other liabilities 33 111 Corporate 101 106 107 110 25 26 loans 20 22 24 Subordinated 8 8 7 loans Other 7 84 78 7 8 8 4 4 5 6 Equity assets 18 19 20 20 21 10 10 10 10 10 Q411 Q112 Q212 Q312 Q412 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Loan book growth… …with retail outperforming SME Administrations Large corporates Individuals RUB bln Credit cards Consumer and auto loans Mortgages RUB bln +13,8% +34,8% +3,2% +4,7% 2.1 28 31 33 2.1 24 26 2.1 8.5 2.2 8.4 2.2 7.6 41 43 41 45 40 6.8 6.8 3 3 2 2 3 20.8 22.3 78 17.0 18.5 70 74 77 77 15.4 Q411 Q112 Q212 Q312 Q412 Q411 Q112 Q212 Q312 Q412 12
  13. 13. Geographical diversificationCorporate loans Retail deposits (without debit card accounts) South regions Moscow OblastMoscow Oblast South regions 10% North-West regions 21% 6% 37% Other regions RUB 4% RUB 123,515 56% 81,014 mln 13% mln North-West regions 24% Moscow 15% 14% Moscow Other regionsCorporate deposits Retail loans South regions South regionsMoscow Oblast Moscow Oblast North-West regions 8% 9% 34% 3% 11% Other regions RUB RUB 48% 25,896 28% 32,850 mln North-West regions mln 29% Moscow 26% 4% Moscow Other regions 13
  14. 14. Who are SMEs?What is our SME Definitions Segment Total credit exposure, RUB mln Large business > 750 Medium-size and small businesses 30 - 750 Micro businesses 6 - 30 Food processing – factories manufacturing different types of high-quality food and drinks. Petrol stations networks – complex service of high-quality petrol, minimarkets and café, car washes and technical services. Pharmacies networks – still healthy demand both for beauty products and medicines. Food retailers– small chains of handy stores “Close-to-House” style for daily shopping located in dormitory area with high density of population. 14
  15. 15. Corporate businessCorporate lending – focus remains on SMEs… …with 68% of loans less than RUB 0,75 bln SMEs Other RUB bln 80.00% * as of December 31, 2012Large corporations 73% Share of portfolio 124 124 70.00% 118 120 Share of clients 113 60.00% 43 41 45 36% 50.00% 40 41 43% 40.00% 32% 30.00% 70 74 78 77 77 63% 20.00% 14% 15% 13% 10% 10.00% 2% 3 3 3 2 2 1% 0.00% up to 30 mln 30-100 mln 100-750 mln more than 750 mln Q411 Q112 Q212 Q312 Q412Corporate funding... …mostly nominated in RUB Current Accounts Term Deposits 62 RUB bln * under RAS FX RUR 56 55 53 53 65.8 66.0 64.0 66.2 56.4 4.5 4.5 5.0 4.4 6,9% 36 5.5 32 30 58% 33 31 61.7 61.2 61.1 59.6 50.9 22 24 25 26 42% 20 Q411 Q112 Q212 Q312 Q412 01/12/12 01/01/13 01/02/13 01/03/13 01/04/13 15
  16. 16. Conservative risk profileCredit policy sticks to reliable collateral… ….providing mostly working capital… RUB bln *as of December 31, 2012 *as of December 31, 2012 Loan amount Corporate portfolio Collateral value 71% 99 28.9% 22.0% 50 54 48 15.0% 15.3% 13.4% 27 24 19 5.4% 12 2 4 Other up to 30 31-90 91-180 181 - 365 1 - 2 years > 2 years Government Real Equipment Guarantees collateral& days days days days guarantees Estate & Vehicle blank…in the same currency as SMEs revenues Key points FX loans RUB bln RUB loans - Average LTV of the portfolio is 59%* mostly collateralized by 126.6 128.2 131.4 124.3 124.3 solid real-estate, equipment and vehicles (63% of total loans). 14.1 14.9 11.3% Revision of collateral value is conducted on a quarterly basis. 14.0 14.0 14.1 - We provide our clients with working capital rather than long- term financing – 71% of corporate loans with maturity less then 1 year. It allows us to react on changing market conditions. 110.3 110.3 112.5 114.1 116.6 - Matching in terms of the loan currency and the client revenues is a core point. FX loans are issued only to customers related to export-import transactions. 01/12/12 01/01/13 01/02/13 01/03/13 01/04/13 *Guarantees are not taken into account 16
  17. 17. Retail lending – promising segmentRetail loan book changes (IFRS) Retail loans maturity Consumer loans Car loans RUB bln *as of December 31, 2012 Mortgages Credit cards Primarily mortgages under state- 32.8 Retail portfolio 31.4 related agency JSC “AHML” standards 28.3 81.4% 25.9 24.4 20.8 22.3 High-margin consumer loans to 18.5 customers with apparent cash- 15.4 17.0 flow –management of corporate clients 2.1 2.1 2.2 2.2 2.1 0.4 0.4 14.2% 0.4 0.4 0.4 6.3 6.4 7.2 8.0 8.1 1.7% 0.7% 2.0% 0.0% Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 up to 30 days 31-90 days 91-180 days 181 - 365 days 1 - 2 years > 2 yearsCurrency breakdown (RAS) Rates for retail loans RUB bln FX loans RUB loans Consumer loans, RUB 25 26.7 Mortgages, RUB 29.5 26.0 0.4 25.6 25.6 Credit cards, RUB 0.4 0.4 1.4% 20 0.4 0,7 15 29.1 13,4 25.2 25.6 26.3 We plan to further expand retail portfolio, which demonstrated stable growth driven by strong demand. 10 Particular focus is on mortgages as the most perspective segment with government support 5 01/12/12 01/01/13 01/02/13 01/03/13 01/04/13 01/04/10 01/10/10 01/04/11 01/10/11 01/04/12 01/10/12 01/04/13 17
  18. 18. Card business – reliable source of non-interest incomeBusiness strategy… …Generates strong fee income Corporate Retail clients clients Interest 12% acquiring 15% cash operations 19% self-service 18% 70% 82% 22% Visa and Mastercard - Payrolls - Self-service transactions 32% Fees & payrolls - Acquiring - Credit cards commissions 1…developing key card product - payrolls Key points - Payrolls is the main tool for client base growth with Q2 2012 Q3 2012 Q4 2012 Q1 2013 strong potential – 61,400 of existing corporate clients and 17,000 installed “client-bank” systemsPayrolls 12,800 13,500 14,000 14,200 - Offering cards only to existing corporate clients: creditDebit cards 1,341,684 1,360,845 1,381,959 1,360,308 cards for owners, top and mid-level managers and specialists, debit cards for personnelCredit 45,671 45,471 46,646 48,297cards - Pushing cross-sales between retail and corporateATMs 811 812 819 838 18
  19. 19. Risk management 19
  20. 20. Risk management Capital position enhanced by subordination Maturity gap up to 5% of the balance RUB bln Assets Tier 1 Tier 1 + Tier 2 Including RUB 1 14,9% bln of subord 80 Liabilities 13.8% 14.2% 3rd tranche 13.4% 13.2% 70 12.3% 12,5% 11.9% 11.8% 12.1% 11.6% 11.9% 60 50 11% MIN 40 30 20 10 0 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 28.02.13 Demand and less than 1From 1 to 6 months month From 6 to 12 months More than 1 year CAR (N1) under CBR rules FX structure Interest rate risk Assets Liabilities RUB bln RUB bln Interest-earning assets Interest-bearing liabilities 80Roubles Roubles 70 60 14 50 28 82% 18% FX 81% 19% FX 40 20 30 4 20 1 3 10 Loans Deposits 0 Due from banks&Securities&Cash Due to banks&Securities Demand and less From 1 to From 6 to More than 1 year Other assets Other liabilities than 1 month 6 months 12 months 20
  21. 21. Credit quality management NPLs dynamics Annualized cost of risk NPLs, RUB mln * Charges to provisions to avg Provisions, % of total portfolio gross loans, QoQ NPLs, % of total portfolio Charges to provisions to avg gross loans, YtD 2.86% 9.44% 9.25% 9.09% 9.52% 9.40% 2.24% 9.41% 1.92% 8.68% 9.02% 1.83% 7.70% 8.08% 1.02% 2.06% 1.77% 1.65% 1.17% 1.02% 10,576 12,490 12,297 14,251 14,102 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 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 impairment NPLs categorization: absolute improvement in SME and retail SMEs + Rub 275 mln new NPLs Large corporates Retail - Rub 351 mln recoveries No changes + Rub 111 mln new NPLs 11.5% 11.1% - Rub 184 mln recoveries 10.4% 10.5% 10.5% 13.2% 12.2% 10.7% 10.8% 4.4% 9.9% 8.9% 10.1% 12.2% 4.3% 10.0% 9.8% 11.9% 3.6% 3.5% 3.5% 8.7% 8.3% 8.0% 3.4% 3.2% 3.1% 2.7% 4.9% 2.7% 7,769 8,263 8,120 7,841 7,765 1,980 3,400 3,400 5,445 5,445 827 827 777 965 892 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 NPLs, RUB mln Provisions, % of total portfolio NPLs, % of total portfolio 2115
  22. 22. Credit quality RUB mln Large SMEs Mortgages Other Total as of 31.12.2012 corporates retailGross loans, including Provisions 44 587 78 928 22 302 10 548 156 365 to NPLs Current loans 87,8% 90,2% 98,3% 95,2% 91,0% Ratio Past-due but not impaired, of 104% them - 0,2% 1,1% 0,8% 0,3% Less than 90 days - 0,2% 0,2% 0,7% 0,2% Over 90 days - - 0,9% 0,1% 0,1% Provisions to 90 days+ Impaired, of them 12,2% 9,7% 0,6% 4,0% 8,7% NPLs Less than 90 days - 0,1% - 0,3% 0,1% 107% Over 90 days 12,2% 9,6% 0,6% 3,6% 8,7%Total NPLs 12,2% 9,8% 1,7% 4,8% 9,0% Provisions -11,9% -10,5% -2,7% -5,2% -9,4% Rescheduled LoansNet Loans 39 296 70 671 21 691 10 004 141 662 5.6% the whole amount of loans with principal overdue for more than 1 day as NPL - well as loans with any delay in interest payments. 22
  23. 23. Recent IFRS results 23
  24. 24. Financial highlights FY’12 FY’11 Q4’12 Q3’12Interest income 16 611 13 959 4 461 4 263Interest expense (7 553) (6 503) (2 067) (2 010)Fee and commission income 5 503 5 232 1 474 1 424Fee and commission expense (442) (410) (150) (104)Other operating income 674 611 25 302Total operating income b.p. 14 793 12 889 3 743 3 875Operating expenses (8 652) (8 353) (2 421) (2 051)Provisions (2 722) (2 304) (451) (1 083)Provisions on non-core assets (449) (216) (133) (2)Tax (639) (422) (194) (156)Net profit 2 331 1 594 544 583 24
  25. 25. Revenues from core business Operating income up… …driven mostly by interest income Net interest income Net fees RUB bln Interest Expenses RUB bln Other income Interest Income 0.3 0,03 0.2 +14.8% 0.1 +4.6% 0.7 0.6 1.3 1.3 1.3 1.1 4.1 4.3 4.5 5.1 3.8 4.8 16.6 14.0 2.1 2.3 2.3 2.4 -1.6 -1.9 -2.0 -2.1 9.1 7.5 -6.5 -7.6 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2012 2011 2012 2011 2012 Net fee income breakdown Segment structure of core revenues Cards Other Cash transactions Settlements RUB mln Interest income Non-interest income -3.2% +0.3% Corporate Other Corporate 1,368 1,320 1,324 business business 1,291 364 1,126 5% 360 364 391 325 71% Cards 253 250 265 224 Other 27% 5% 52% 219 337 3% 304 300 301 Cards 256 414 326 377 391 408 21% 16% Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Retail business Retail business 25
  26. 26. 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 15.7% 14.9% 14.9% 15.4% 14.8% 7.2% 7.6% 5.7% 6.3% 6.7% 10.8% 10.9% 11.3% 10.3% 10.3% 6.1% 6.4% 5.1% 5.3% 5.8% 6.1% 6.4% 5.3% 5.3% 3.4% 0.2% 0.1% 0.1% 0.1% 0.1% Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012Spread dynamics NIM decomposition Interest Spread Loans Deposits Other Base effect +46 bps Yield on earning assets (net) Cost of funds -0,10% +0,44% -0,05% -0,18% 11.2% 11.4% 11.7% 10.7% 10,9% 7.1% 6.9% 6.7% 6.7% 7.1% 4.7% 4.3% 4.68% 4.80% 4.64% 4.74% 4.7% 4.6% 4.0% 4.4% 3.7% Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2012 2011 2012 26
  27. 27. Cost efficiency in focus Operating expenses breakdown Staff expenses composition Personnel expenses RUB mln Administrative expenses Salary Benefits Bonuses Rent & Costs related to premises and equipment Other +0.7% +18% 14% 9% 10% 27% 420 458 50% 339 336 325 49% 54% 50% 440 397 300 351 335 51% 193 191 209 13% 145 155 37% 38% 37% 40% 1,352 1,258 1,260 1,236 1,357 22% Top Operational Managers Specialists and management management service Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Operating efficiency dynamics CIR on way to improvement Operating expenses RUB bln Operating income before provisions Cost/Income70.0% 64.0% 64.7% 7.0 72.5% 60.0% 56.7% 6.0 64.8%60.0% 52.9% 5.0 58.5%50.0% 4.0 48.7% 50.0% 3.040.0% 3.8 3.4 3.8 3.9 3.7 2.0 Mid-term30.0% 1.0 target20.0% 0.0 -2.0 -2.4 -2.1 -2.1 -2.4 -1.010.0% -2.00.0% -3.0 2009 2010 2011 2012 Q411 Q112 Q212 Q312 Q412 27
  28. 28. Solid earnings generation capacityOperating profit Net profit developmentOperating profit before provisions and taxes RUB bln RUB blnProvisions +46% +35% 1.6 1.8 6.1 1.4 1.3 4.5 0.7 -0.4 2.3 0.5 0.6 0.5 -0.8 -0.5 -1.1 1.6 -2.3 -2.7 Q112 Q212 Q312 Q412 Q112 Q212 Q312 Q412 2011 2012 2011 2012ROE, % ROA, % 23.3% 11.9% 2.45% 9.1% 7.8% 1.21% 3.5% 0.88% 0.91% 0.38% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 28
  29. 29. Capital structure 29
  30. 30. Capital structure Shareholding structure Share price on MICEXStructure as of 11.05.2012 Shares Roubles More than 8,000 100,000 1,800 individuals and 1,000 10,000 1,440 companies are among Others our shareholders with 1,000 1,080 Chairman 32% 30% professional investors 100 720 owning more than 38% 10 360 38% 1 0 1/1/12 1/3/12 1/5/12 1/7/12 1/9/12 1/11/12 1/1/13 Volume Last price As per MICEX data Major shareholders Volumes of trading (shares) SHAREHOLDER STAKE IN EQUITY H1 2010 H2 2010 H1 2011 H2 2011 H1 2012 H2 2012 MICEX 762,594 744,081 551,544 892,502 1,966,722 535,131 Dmitry L. Orlov (Chairman of the Board of Directors) 32.03% RTS 220,714 186,333 65,303 82,098 50,437 30,230 German stock Otar L. Margania (Member of the Board of Directors) 19.67% 33,358 24,054 13,444 3,255 3,685 7,300 exchanges (ADR) Sub-total (stock 1,016,666 954,468 630,291 977,855 2,020,844 572,661 exchanges) JPM International Consumer Holding Inc. 9.88% OTC 903,256 1,109,859 1,080,856 2,141,597 873,225 1,421,277 Total 61.58% Total 1,919,922 2,064,327 1,711,147 3,119,452 2,894,069 1,993,938 *Volume growth associated with strategic deals 30
  31. 31. High level of corporate governance MANAGEMENT STRUCTURE CHAIRMAN OF THE System of control GENERAL MANAGEMENT BOARD MEETING OF Mr. Alexander Dolgopolov SHAREHOLDERS AUDITOR Audit commission PricewaterhouseCoopers BOARD OF DIRECTORS HR and 12 members Audit committee Compensation Committee 9 are non-executive 6 independent Internal Control Risk Management and Audit Service MANAGEMENT BOARD 13 members - Timely information provision to investors 5 Deputy Chairmen - Full disclosure on web-site The arrows represent the authorities to appoint - Quarterly IFRS financial reporting with web-cast or elect the relevant Bank’s bodies and the External Auditor presentations - Financial reports under IFRS audited from 1991Continuing excellent reputation recognition: - Solid and professional team Andrey V.Bank has V.Bank was The most Shalimov Dmitry Orlov is included the Best awarded as shareholder was the Bank of the in top10 of the best bank’s Corporate awarded for transparent bank managers 2009 Governance in the Best IR Year in Russia in Russia – Russia, 2013 in 2010 2006, 2007, 2008 in 2012 31
  32. 32. Investment Summary SOUND STRATEGY BUSINESS STRENGTHS Successfully passed through recent crises (1993- Loyal clientele due to strong relationships with the 94,1998, 2004, 2008) customers Business model generating solid fees & commissions 60% of client base is concentrated in fast growing (40% of revenue) Moscow Oblast 20 years of organic growth focused on core regions Corporate business focused on high-profitable and clients SME, retail one – on mortgages Broad product line based on advanced IT-solutions One of the most transparent FI in Russia - №1 in Information Transparency to Shareholders by S&P Financial markets turbulence 2007, 2006  Ongoingof global economy slowdown Threat pressure on lending rates driven by state banks Management Board (13 members) totally has more than 200 years of banking experience leading by  Limited demand from key risk sector – SME Still high potential credit client Chairman with 40 years in Soviet and Russian banking systems  Still high potential credit risk Moody’s Ba3 (Stable) confirmed in Nov’10, S&P sticks to BB- (Stable) upgraded in Sept’11 Positive track-record of communication with investors HIGH STANDARDS CURRENT CHALLENGES 32
  33. 33. Investor Relations contactsYulia Vinogradova, Advisor to the ChairmanYu.Vinogradova@voz.ru +7 495 620 90 71 investor@voz.ruElena Mironova, Deputy head of IR http://www.vbank.ru/en/investorsE.Mironova@voz.ru Follow us on Twitter:Maria Gorbunova, IR specialist www.twitter.com/vbank_IRM.Gorbunova@voz.ruDownload contacts: Download presentation: 33
  34. 34. DisclaimerSome of the information in this presentation may contain projections or other forward-looking statements regarding future events or the future financialperformance of Bank Vozrozhdenie (the Bank). Such forward-looking statements are based on numerous assumptions regarding the Bank’s present andfuture 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 wecannot predict with certainty. Accordingly, our actual outcomes and results may differ materially from what we have expressed or forecasted in theforward-looking statements. These forward-looking statements speak only as at the date of this presentation and are subject to change without notice. Wedo 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 thoseexpressed 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 meetdemand 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 unduereliance 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 afterthe date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable laws. 34

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