Bank Vozrozhdenie IR Team, profile picture
Uploaded byBank Vozrozhdenie IR Team
PPTX, PDF1,047 views

Investor presentation eng 09/14

This investor presentation provides an overview of Bank Vozrozhdenie, a Russian bank with over 20 years of operations. It summarizes the bank's history, awards and recognition, business model, financial results, loan portfolio breakdown, and strategy. The bank focuses on core banking products and personal service, with a customer-oriented organic growth strategy. It has a conservative balance sheet primarily funded by deposits. Recent results show contracting corporate loans being offset by growth in retail loans and deposits. The presentation also outlines the bank's diversified regional presence and focus on SME, mortgage, and consumer lending.

Embed presentation

Download to read offline
Bank Vozrozhdenie Promising SME and retail local franchise Investor presentation September 2014
This page is intentionally left blank 2
3 Agenda Key facts Business model Business overview Recent IFRS results Investment summary
Best Corporate Governance, Russia (World Finance) Best IR Management in Russia (Global Banking & Finance review) 4 Over 20 years of successful development Establishment and banking license 34 branches in the Moscow Oblast 1991-1992 1993-1995 1996-1998 1999-2002 2003-2004 2005-2006 2007-2008 2009-2010 2011-2012 9 new regional branches opened Cash collection and delivery services established Corr. accounts with western banks License for foreign exchange Associate member of VISA International Authorized Bank of the Russian Government Joined S.W.I.F.T. Joined the World Bank development program Cooperation with CIBC S&P rating Rated by the Central Bank as a stable bank after the financial Crisis CIBC becomes a shareholder The 3rd largest branch network Top 10 by deposits from individuals Top 3 in the State Mortgage Program Top 7 mortgage provider Best mid-cap Russian bank (Big Money) $ 177 mln raised by 20th issue 3rd by lending to SME $81 mln EBRD financing Top 10 by bank cards issued Best SME bank in Moscow Oblast Top 10 retail banks in Russia First MBS deal on Rub 4,1 bln Bank’s ADRs traded on the Frankfurt Stock Exchange Established ATM network and a processing center Top 20 by corporate loan portfolio Widest ATM network in the Moscow Oblast Over 100,000 VISA cards issued 17th equity issue raises $33 million Joined Deposit Insurance Program Overall rebranding CRM system development The most transparent bank in Russia (S&P) Top 500 world’s banking brands Best bank IR and best IR professional (Thomson Reuters ) Bank of the Year in Russia in 2010 (The Banker) Over 1,550,000 clients Best public company (Secret Firmy Magazine) Alexander Dolgopolov appointed as the Chairman of the Management Board V.Bank launched project on cost efficiency 2013-2014 Best Banking Chairman of the Board in Russia (Global Banking & Finance review) Best IR Management in Russia (Global Banking & Finance review)
Bank Vozrozhdenie – a community bank built on strong relationships with SMEs and individual customers Focus On Core Banking Products Servicing Corporate and SME Customers On Each Stage Of Business Development Servicing retail customers throughout their whole life-cycle 5 Balanced Lending and Funding policy Prudent risk-management policy Bank Vozrozhdenie strategy… … 1 700 000 Retail Clients… … 63 400 Corporate and SME Clients… … 21 Regions … … 142 Offices … … 900 ATMs … …service… …via… Increasing efficiency in service delivery
As of September 1, 2014 Moscow Oblast is a home territory with historically strong market position Total 6 Distribution network 21 regions of presence. Focus on the most perspective South and North- West Branches Sub branches Retail offices 34 43 8 85 550 ATMs – every town is under coverage Total Branches Sub branches Retail offices 19 36 2 57 348 ATMs
28 Basic information & position in Russian banking system Mortgages 10 13 7 Net Assets Bank cards issued * RBC most recent rankings Key Figures, RUB Assets Loans b.p. Customer Funds Net Income Shareholders equity Retail Clients Corporate Clients Personnel Offices ATMs 209,609 mln 166,148 mln 158,110 mln 859 mln 23,196 mln 1,700,000 63,400 6,054 142 898 Loans to SMEs 6 19 39/19 Volume of retail deposits Branches/ATMs Rankings* Corporate loans 21 Financial indicators as of June 30, 2014
8 Ba3/D-/NP, stable BB-/ruAA-, negative MOEX Financial Index Level 1 (Highest) MOEX Moody’s Standard&Poor’s Included in indices Listing The Banker V.Bank – “The Bank of the year 2010 in Russia” as per the survey of The Banker magazine BrandFinance Banking 500 survey V.bank ranks among top-10 Russian most valuable banking brands with brand value of $190 million Market recognition Credit ratings Listing High recognition of brand World Finance V.Bank was awarded for “Best Corporate Governance, Russia”, according to World Finance survey 42 35 28 21 14 7 0 Aaa 25 Aa 22 19 16 13 10 7 S&P S&P international BB-Moody's Moody's Moody's Interfax Aa3.ru Ba3 01/01/06 01/01/07 01/01/08 01/01/09 01/01/10 01/01/11 01/01/12 01/01/13 01/01/14 A Baa Ba B Caa S&P national scale ruAA-AAA AA A BBB BB B CCC
9 Business model
10 Strategy Focus on core banking products and personal service
Non-interest income Net interest income 3,667 3,808 3,682 3,645 3,642 38% 39% 36% 28% 29% 62% 61% 64% 72% 71% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 11 169 171 56 55 162 50 Interest-bearing Deposits Interest-free Current accounts 153 158 44 45 113 116 112 109 113 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 - Customer oriented organic growth - Conservative balance sheet - Primarily deposit funded - Focused regional structure - Increasing efficiency in service delivery Retail loans Corporate loans 167 173 168 172 166 37 41 43 44 44 130 133 126 128 122 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Note: all loans are gross loans RUB bln RUB bln 27% 73% RUB bln 29% 71% Business model Business based on relationships… … gives solid non-interest income Loan portfolio development… … funded by customer accounts
Assets stable across the year, share of liquid instruments – 18,5% Client funds as the main funding source RUB bln RUB bln RUB bln 12 216 217 8,5% 211 211 210 8 9 9 10 9 5.5 1.6 169 171 162 153 158 9 9 10 14 14 71 51 44 41 13 21 22 22 23 23 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Due to other banks CBR funds under repos Client funds Securities issued Other liabilities Subordinated loans Equity Assets and liabilities 40 33 29 26 31 1 1 1 6.4 1 1.9 1 12 14 12 7 12 150 155 156 158 152 13 13 13 12 13 8.5% 15.9 5.5 2.7 5.6% 10.4 1.6 1.4 7.7 7.4 Q1 2014 Q2 2014 Loans from CBR under repo agreements Interbank funding with maturity less than 1 year Interbank funding with maturity over than 1 year 216 217 211 211 210 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Cash and equivalents Due from banks Invest. securities pledged under repos Securities Net loans Other assets 5,6% Market funding replaced by customer resources L/D ratio down to targeted range RUB bln Gross loans Customer funds L/D 99% 102% 104% 112% 105% 167 169 173 171 168 162 172 153 166 158 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
13 107 109 106 104 110 87 91 87 89 93 20 18 19 16 18 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Retail deposits Retail accounts 62 62 55 35.8 36.8 31.2 49 48 28.8 27.7 26.0 24.9 24.3 19.8 20.1 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Corporate accounts Corporate deposits Customer funds Retail funds saw a strong inflow Rebound of corporate deposits RUB bln +5.6% -1.7% RUB bln Corporate funds monthly dynamics (RAS) 57 54 4 54 RUB Corporate FX Corporate 51 5 6 5 47 49 50 5 7 5 53 50 47 46 42 42 45 Dec Jan Feb Mar Apr May Jun Retail funds monthly dynamics (RAS) RUB Retail FX Retail 105 104 105 103 108 107 109 25 27 29 28 28 27 26 79 77 76 75 79 80 83 Dec Jan Feb Mar Apr May Jun 24% 10%
14 Segment Total credit exposure, RUB mln Who are our SMEs? What is our SME Definitions 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 beverages. Local retailer chains – small chains of handy stores “Close-to-House” style for daily shopping located in dormitory area with high density of population. Car stores – range of car parts and accessories, new and used economy class cars most popular in the regions, where people give strong preference to repairing their engines themselves. Clothes factories – small-scale production of clothing and apparel.
Loan portfolio developments in Q2 2014 Gross loan portfolio decreased… …due to corporate loan portfolio contraction… Large corporates SMEs 130.2 132.6 125.6 127.8 RUB bln 122.1 -6.2% 79 81 74 76 72 …while new loans are issued mainly to SMEs 76.2 72.2 Q1 2014 Q2 2014 15 Corporates Retail -3.2% 166.9 173.2 168.2 171.6 166.1 37 41 43 44 44 130 133 126 128 122 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 RUB bln …but diversification continues – lending to large corporates is curtailed… 51.6 49.9 Q1 2014 Q2 2014 *Loan portfolio before provisions for impairment RUB bln RUB bln Loans to new clients Loans to existing clients Recoveries Migration between SMEs and large corps +1,1 +4,3 -9,9 +0,5 Loans to new clients Loans to existing clients Recoveries Migration between SMEs and large corps 0,0 +0,5 -1,7 -0,5 51 52 51 52 50 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
as of June 30, 2014 Corporate portfolio 16 9.8% 36.7% 28.7% 24.8% up to 30 days 31-180 days 181-365 days > 1 year RUB bln 75,2% as of June 30, 2014 … and regional diversification Corporate loan book Credit policy sticks to reliable collateral… ….providing mostly working capital… 17% 38% 17% 11% 16% Moscow Oblast Other regions Moscow South regions North-West regions RUB 122.1 bln 12% 2% 22% RUB 122.1 bln 43% 21% Real estate Uncollateralized loans & Other collateral Equipment & vehicle Government guarantees Guarantees as of June 30, 2014 …maintaining industry… Real estate Construction Manufacturing Agriculture 4% 5% 11% Wholesale & retail trade Administrations Other Transport RUB 122.1 bln as of June 30, 2014 36% 0% 25% 8% 1% 9%
Retail loan book growth Retail loans maturity as of June 30, 2014 Retail portfolio 94.6% Primarily mortgages under state-related agency JSC “AHML” standards up to 30 days 31-180 days 181-365 days > 1 year Rates on retail loans Consumer loans, RUB Mortgages, RUB Credit cards, RUB 17 Retail lending – promising segment 25 20 15 10 5 1.6% 1.4% 2.3% 01/09/11 01/03/12 01/09/12 01/03/13 01/09/13 01/03/14 01/09/14 RUB bln High-margin consumer loans to customers with apparent cash-flow –employees of corporate clients We plan to continue expanding retail loan portfolio, that was an important lending growth driver during recent years Particular focus is on mortgages as the most perspective segment with gradual widening of consumer lending Mortgages Consumer and car loans Credit cards 40.5 6% +0.46% 42.6 43.9 44.1 5% 6% 5% 36.8 6% 27% 26% 25% 26% 68% 26% 68% 68% 69% 70% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Mortgage securitization as a source of long-term funding for loan portfolio expansion Securitization 1 Rub 4.1 billion in December 2011 Class A with 8.95% coupon rate and Baa2 rating from Moody’s Securitization 2 Rub 4.0 billion in April 2013 Class A with 8.5% coupon rate and Baa2 rating from Moody’s Securitization 3 Rub 3.45 billion in March 2014 Class A with 9% coupon rate and Baa2 rating from Moody’s
Mobile and internet bank – key drivers for future growth 18 Card business – sales force of retail business Synergy of corporate and retail via core product – payrolls as of June 30, 2014 acquiring Visa and Mastercard Vbank-service and self-service Interest 70% Fees & commissions 5% 10% 23% 32% 84% Q3 2013 Q4 2013 Q1 2014 Q2 2014 16% Payrolls 14,760 15,040 15,040 15,070 Debit cards 1,333,679 1,347,461 1,273,089 1,217,821 Credit cards 54,674 64,462 70,306 92,083 ATMs 854 884 870 898 - Payrolls is one of the key tools for retail client base growth with strong potential – 63,400 of existing corporate clients with 18,393 installed “Internet-client” and “Bank-client” systems and 15,070 payrolls - Offering cards to existing corporate clients: credit cards for owners, top and mid-level managers and specialists, debit cards for personnel - Advanced functionality of the mobile and internet bank will switch more customer operations to remote channels unloading the offices and boosting transaction volume 30% cash operations payrolls Wide client base for business expansion Key points
19 Risk management
20 Sound position on capital, liquidity and market risks Tier 1 Tier 1 + Tier 2 Statutory Capital (Н1.0) Statutory common equity Tier (Н1.1) FX structure Balance sheet maturity breakdown Interest rate risk 51.6 44.5 33.7 69.3 58.3 36.9 26.6 63.9 Demand and less than 1 month From 1 to 6 months From 6 to 12 months More than 1 year Assets Liabilities RUB bln 43.2 44.1 51.4 50.8 58.0 36.9 26.6 63.9 Demand and less than 1 month From 1 to 6 months From 6 to 12 months More than 1 year Interest-earning assets Interest-bearing liabilities RUB bln as of June 30, 2014 Liabilities as of June 30, 2014 as of June 30, 2014 11.7% 11.4% 12.0% 8.8% 9.7% 9.9% 14.6% 13.2% 13.8% 11.2% 11.6% 12.3% Q2 2013 Q3 2013 Q4 2013 Q4 2013 Q1 2014 Q2 2014 Basel I Basel III Assets 82% 13 7 25 18% Loans Due from banks&Securities Cash&Other assets 82% 31 3 1 18% Deposits Due to banks&Securities Other liabilities Capital adequacy
NPLs dynamics* Annualized cost of risk Charges to provisions to avg gross loans, QoQ Charges to provisions to avg gross loans, YtD Retail 1,102 1,810 1,350 1,730 1,863 21 3.7% 3.2% 1.9% 2.0% 2.2% 3.00% 4.47% 3.17% 3.94% 4,23%* Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Credit quality management 15 2.10% 2.30% 0.57% 3.11% 3.12% 2.10% 2.20% 2.30% 2.90% 2.79% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 NPLs, Rub mln Provisions, % of total portfolio NPLs, % of total portfolio 7.36% 7.36% 7.70% 7.65% 8.25% SMEs +Rub 744 mln new NPLs -Rub 234 mln recoveries -Rub 73 write-offs +Rub 1 123 mln new NPLs -Rub 990 mln recoveries no write-offs 10.35% 10.75% 10.13% 10.46% 8.53% 17,270 18,616 12,385 13,129 13,699 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 NPLs categorization Large corporates no new NPLs no recoveries no write-offs * 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 *2,2% of which is overdue less than 30 days 10.6% 11.1% 10.0% 10.8% 6.0% 5.3% 5.3% 4.7% 5.1% 6.0% 7,939 8,671 3,518 3,882 4,319 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 16.2% 17.8% 15.6% 14.1% 15.2% 14.8% 16.1% 14.6% 14.6% 15.1% 8,229 8,135 7,517 7,517 7,517 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 NPLs, Rub mln Provisions, % of total portfolio NPLs, % of total portfolio
22 Credit quality As of June 30, 2014 Large corporates SMEs Mortgages Other retail RUB mln Total Gross loans, including 49,898 72,192 30,722 13,336 166,148 Current loans 84.9% 94.0% 97.1% 92.7% 91.8% Past-due but not impaired, including - 0.5% 2.4% 2.5% 0.8% Less than 90 days - 0.3% 2.2% 2.5% 0.7% Over 90 days - 0.2% 0.2% 0.0% 0.1% Impaired, including 15.1% 5.5% 0.5% 4.8% 7.4% Less than 90 days - 0.5% - 0.6% 0.3% Over 90 days 15.1% 5.0% 0.5% 4.2% 7.1% Total NPLs 15.1% 6.0% 2.9% 7.3% 8.2% Provisions -17.7% -6.0% -1.0% -4.9% -8.5% Net Loans 41,057 67,835 30,403 12,687 151,982 Provisions to NPLs Ratio 103.4% Provisions to 90 days+ NPLs 117.4% Rescheduled Loans 6.4% NPL - the whole amount of loans with principal overdue for more than 1 day as well as loans with any delay in interest payments.
23 Recent IFRS results iPhone
RUB mln 24 Financial highlights As of June 30, 2014 2Q14 1Q14 QoQ 1H14 1H13 YoY Interest income 4,949 5,063 -2.3% 10,012 9,097 +10.1% Interest expense (2,554) (2,472) +3.3% (5,026) (4,680) +7.4% Fee and commission income 1,149 1,101 +4.4% 2,250 2,587 -13.0% Fee and commission expense (172) (185) -7.0% (357) (265) +34.7% Other operating income 270 138 +95.7% 408 418 -2.4% Total operating income b.p. 3,642 3,645 -0.1% 7,287 7,157 +1.8% Operating expense (2,178) (2,187) -0.4% (4,365) (4,226) +3.3% Provisions for loan impairment (973) (893) +9.0% (1,866) (2,275) -18.0% Provisions for impairment of other 46 (9) - 37 2 x18.5 assets Taxation (106) (128) -17.2% (234) (137) +70.8% Net profit 431 428 +0.7% 859 521 +64.9%
Interest income & expense breakdowns NIM decomposition Loans Deposits Other Base effect -0,31% -0,13% +0,07% +0,02% Spread (net) Yields on earning assets (net) Cost of funds 11.5% 11.8% 11.8% 11.9% 11.7% 25 NIM in line with target despite funding costs growth 4.2% 4.5% 4.9% 4.9% 4.6% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 2.6 2.4 0.2 0.2 1.6 1.7 3.3 3.1 -1.5 -1.6 -0.4 -0.4 -0.5 -0.6 Q1 2014 Q2 2014 RUB bln Int. income from corp. loans Int. income from retail loans Other int. income Int. expense from retail deposits Int. expense from corp.deposits Other int. expense Interest rates Spread 6.4% 6.7% 6.9% 6.6% 6.2% 5.0% 5.1% 4.9% 5.3% 5.5% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Corporate term deposits Retail term deposits Yields on corporate loans Yields on retail loans 15.0% 15.3% 15.3% 15.4% 15.4% 10.9% 11.2% 11.4% 11.4% 11.3% 7.7% 7.6% 6.7% 7.3% 8.1% 6.5% 6.8% 6.7% 7.0% 7.0% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
Fee income dynamics… …with all components growing in Q2... 3.7 Settlements Cards Cash transactions Other 916 185 977 216 219 225 274 295 Net interest income Net fees Other income 3.8 3.7 3.6 3.6 0.22 0.14 0.10 0.14 0.27 26 Net fee income Net fee income with corrected gradual accruals of one-off reclass 1,215 1,247 23 20 17 14 11 8 940 916 977 1,137 1,145 1,169 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 1.2 1.2 0.9 0.9 1.0 2.2 2.4 2.6 2.6 2.4 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Operating results ……amid seasonally higher business activity… supported operating income on a stable level RUB bln RUB mln -0.1% +6.7% -0.7% -14.1% 238 241 Q1 2014 Q2 2014 RUB mln Balances on debit card accounts Credit turnover of card accounts H1 2012 86.8 H1 2013 90.0 H1 2014 91.6 2012 2013 2014 RUB bln
Costs structure C/I ratio 27 Operating costs under control RUB mln Rent and costs relating to premises, equipment and depreciation of intangible assets Taxes other than income tax and contributions to the State Deposit Insurance Agency Administrative and other expenses Staff costs 2,135 2,134 310 338 176 181 2,417 2,187 450 2,178 -0,4% 281 348 203 170 194 328 336 404 436 329 1,321 1,279 1,360 1,300 1,307 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Cost to Income Ratio, % 58.2% 56.0% 65.6% 60.0% 59.8% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Operating model optimization Stage Centralisation: Internet-Bank client support service  Work with orders and requests of Federal Tax Service  Requests - done Orders - Dec14 AML/FT control  Moscow region Controller for the service of regular payments for the mobile  and internet-bank FRAUD-analysis and payment controller function  Automation of Internet-client payment processing  on Rub payments Optimisation of individuals’ incoming payments processing  Uniting cashier and teller functions  Moscow region Work with orders and requests of Federal Bailiff Service  Requests - done Orders - Oct14 Stage HR documentation handling Moscow region – Dec14 Security Administrators function Moscow region – Oct15 Accounts opening / online client profiles Moscow region - Mar15/Dec15 Handling internal payrolls Moscow region – Jan15 FX control Moscow region – Mar15 Fixed cash collection routs planning Part of Moscow region – Oct14 Credit middle and back office Moscow region – Dec14 Credit operations with large clients Moscow region – Dec14 Credit turnover/ reissue of bank cards on payrolls 2015 Establishing IT Help Desk/Service Desk 2015
Net profit RUB mln 28 Efficiency indicators Stable operating profit Net profit Provisions Operating profit before provisions and taxes 1.5 1.7 -1.3 +0.4% -4.4% 1.3 1.5 1.5 -1.3 -0.4 -0.9 -0.9 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 +0.7% +129% ROE, % ROA, % Operating profit before provisions and taxation / Assets ROA 2.9% 3.1% 2.4% 2.8% 2.8% 0.4% 0.5% 1.4% 0.8% 0.8% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 RUB bln Operating profit before provisions and taxation / Average equity ROE 28.8% 31.2% 23.0% 25.8% 25.5% 3.5% 4.6% 13.2% 7.6% 7.5% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 188 247 724 428 431 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
29 Capital & Governance
Shareholding structure Share price on MOEX 1,000 RUB 800 RUB 600 RUB 400 RUB 200 RUB 0 RUB 30 10,000,000 RUB 1,000,000 RUB 100,000 RUB 10,000 RUB 1,000 RUB 100 RUB Volume Last price 1.9.13 1.12.13 1.3.14 1.6.14 1.9.14 Capital structure as of May 12, 2014 Other 31% 41% 28% SHAREHOLDER STAKE IN EQUITY Dmitry Orlov (Chairman of the Board of Directors) 30.70% Otar Margania (Member of the Board of Directors) 18.65% JPM International Consumer Holding Inc. 9.37% Total 58.72% As per MOEX data INDICATOR Q2 2014 Price to Book Value 0.4 Price to Earnings 6.0 Book Value per Share RUB926 ($28) Earnings per Share RUB69 ($2) Market cap RUB10 bln ($298 mln) Chairman Other management More than 8,000 individuals and 1,000 companies are among our shareholders with foreign investors owning more than 34% Major shareholders Valuations
Audit commission Risk Management V.Bank was awarded as the Bank of the Year in Russia in 2010 31 High standards of corporate governance PricewaterhouseCoopers Audit committee Andrey Internal Control and Audit Service Shalimov was awarded for the Best IR in 2012 GENERAL MEETING OF SHAREHOLDERS BOARD OF DIRECTORS 12 members 9 are non-executive 5 independent CHAIRMAN OF THE MANAGEMENT BOARD Mr. Alexander Dolgopolov System of control HR and Compensation Committee - Timely information provision to investors - Full disclosure on web-site - Quarterly IFRS financial reporting with web-cast presentations - Financial reports under IFRS audited from 1991 - Solid and professional team AUDITOR Continuing excellent reputation recognition: MANAGEMENT STRUCTURE MANAGEMENT BOARD 12 members 4 Deputy Chairmen The arrows represent the authorities to appoint or elect the relevant Bank’s bodies and the External Auditor V.Bank has the Best Corporate Governance in Russia, 2013
Russian economy slowdown, macro instability  Ongoing pressure on lending rates driven by state banks 32 Investment Summary SOUND S TRAT EGY BUS I NE S S S TRENGTHS Over 20 years in Top-30 Russian banks amid changing competitive landscape Successfully passed through all crises (1993-94,1998, 2004, 2008) with time-proved conservative risk policies Business model generating solid fees & commissions Organic growth in core regions and client segments Focus on operating efficiency One of the most transparent FI in Russia – Best Corporate Governance by World Finance in 2013, leaders of Information Transparency to Shareholders by S&P in 2008, 2007, 2006 Management Board (12 members) with long-term banking experience; the Board of Directors headed by the Chairman with 40 years in Soviet and Russian banking systems Positive track-record of communication with investors Loyal clientele due to strong relationships with the customers 60% of client base is concentrated in promising Moscow Oblast Corporate business focused on high-profitable SMEs, retail – on safe mortgages, consumer loans only for the “known” customers Broad product line based on advanced IT-solutions and remote banking services Still high potential credit risk  Limited demand from key client sector – SME Competitive landscape for Russian private banks  Still high potential credit risk Financial markets turbulence Pace of operating model optimization project realization HIGH S TAN D AR DS CURRENT CHAL L ENGE S
33 Investor Relations contacts Maria Gorbunova Key specialist of IR M.Gorbunova@voz.ru Elena Mironova Deputy head of IR E.Mironova@voz.ru Download our contacts Download our presentation Andrey Smirnov IR Specialist AV.Smirnov@voz.ru Download our IR app for iPhone Download our IR app for iPad Tel.: +7 495 620 90 71 E-mail: investor@voz.ru Website: http://www.vbank.ru/en/investors Slideshare: www.slideshare.net/IRTeam Twitter: www.twitter.com/vbank_IR
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. 34 Disclaimer

More Related Content

PPTX
Investor presentation 1014 eng
byBank Vozrozhdenie IR Team
 
PDF
Investor presentation en
byBank Vozrozhdenie IR Team
 
PDF
Investor presentation june-2014_ru
byBank Vozrozhdenie IR Team
 
PDF
Investor presentation June 2013
byBank Vozrozhdenie IR Team
 
PDF
Investor presentation May 2013
byBank Vozrozhdenie IR Team
 
PDF
Investor presentation September 2013
byBank Vozrozhdenie IR Team
 
PDF
Investor presentation November 2013
byBank Vozrozhdenie IR Team
 
PDF
Investor presentation October 2013
byBank Vozrozhdenie IR Team
 
Investor presentation 1014 eng
byBank Vozrozhdenie IR Team
 
Investor presentation en
byBank Vozrozhdenie IR Team
 
Investor presentation june-2014_ru
byBank Vozrozhdenie IR Team
 
Investor presentation June 2013
byBank Vozrozhdenie IR Team
 
Investor presentation May 2013
byBank Vozrozhdenie IR Team
 
Investor presentation September 2013
byBank Vozrozhdenie IR Team
 
Investor presentation November 2013
byBank Vozrozhdenie IR Team
 
Investor presentation October 2013
byBank Vozrozhdenie IR Team
 

What's hot

PDF
AccessBank Investor presentation Q2 2014
byaccessbank
 
PPTX
Factsheet eng_2Q 2014
byBank Vozrozhdenie IR Team
 
PDF
2013, PRESENTATION, The development of the Mongolian economy and banking indu...
byThe Business Council of Mongolia
 
PDF
AccessBank Annual Report 2012
byaccessbank
 
PDF
AccessBank Investor presentation 2013-Q3
byaccessbank
 
PDF
AccessBank Annual Report 2010
byaccessbank
 
DOCX
Bank dhofar
bybalqees91
 
PDF
Investor presentation July 2013
byBank Vozrozhdenie IR Team
 
PDF
Investor presentation August 2013
byBank Vozrozhdenie IR Team
 
PDF
презентация для инвесторов 2014
byHoujeiri
 
PDF
AccessBank Investor presentation Q3 2014
byaccessbank
 
PDF
Vzrz q1 2014_ifrs_results_eng
byBank Vozrozhdenie IR Team
 
PDF
Investor presentation H1 2014
byBank Vozrozhdenie IR Team
 
PDF
AccessBank Investor presentation Q1 2014
byaccessbank
 
PDF
2010 Investors' Meeting Presentation - São Paulo
byKianne Paganini
 
PDF
Financial Stability Report 2012
byLatvijas Banka
 
PDF
AccessBank Annual Report 2009
byaccessbank
 
PDF
Roadshow, London, Mikael Inglander CFO
bySwedbank
 
PDF
Turkish Banking Sector_April2012
byDerya Guzel
 
PDF
AccessBank Annual Report 2007
byaccessbank
 
AccessBank Investor presentation Q2 2014
byaccessbank
 
Factsheet eng_2Q 2014
byBank Vozrozhdenie IR Team
 
2013, PRESENTATION, The development of the Mongolian economy and banking indu...
byThe Business Council of Mongolia
 
AccessBank Annual Report 2012
byaccessbank
 
AccessBank Investor presentation 2013-Q3
byaccessbank
 
AccessBank Annual Report 2010
byaccessbank
 
Bank dhofar
bybalqees91
 
Investor presentation July 2013
byBank Vozrozhdenie IR Team
 
Investor presentation August 2013
byBank Vozrozhdenie IR Team
 
презентация для инвесторов 2014
byHoujeiri
 
AccessBank Investor presentation Q3 2014
byaccessbank
 
Vzrz q1 2014_ifrs_results_eng
byBank Vozrozhdenie IR Team
 
Investor presentation H1 2014
byBank Vozrozhdenie IR Team
 
AccessBank Investor presentation Q1 2014
byaccessbank
 
2010 Investors' Meeting Presentation - São Paulo
byKianne Paganini
 
Financial Stability Report 2012
byLatvijas Banka
 
AccessBank Annual Report 2009
byaccessbank
 
Roadshow, London, Mikael Inglander CFO
bySwedbank
 
Turkish Banking Sector_April2012
byDerya Guzel
 
AccessBank Annual Report 2007
byaccessbank
 

Viewers also liked

PDF
Iskra unimer 33-obu0403
byRubin Stanojoski
 
PPT
Sangyo2009 07
byAkao Koichi
 
PDF
Invest in the UK Brochure
byMehmet Basaran
 
PPTX
Predicting Performance by Profile
byDara Cassidy
 
XLS
DMAIC Freight Reduction Project
byJim_McLaughlin
 
PPT
4.5 webminig
byKrish_ver2
 
PDF
Mse5 0045
byUNA-PUNO
 
PDF
The State Of Social Media First Edition
byGreg in SD
 
PDF
2014 NFS Annual Report
bySusan Hartmann
 
PDF
Curation web fidji marechal dorion
byFidji Dorion
 
PPT
EBIZ DIWALI 2011
byAlfred Johns J
 
PDF
Bottling Dashboard Blank
byTrevor Clinard
 
PDF
1 q2009
byEmbraer RI
 
PDF
Diario la nacion (08.08.07)
byAndres Baytelman
 
PDF
Revista Alto do Tietê News - 4ª Edição Impressa
byRAdoTN
 
DOC
Smuhsd technology plan draft aug 11
bydbigue
 
PDF
Trias - yearly report 2014
byTrias ngo
 
PDF
Mundo em descontrole
byElder Fabiano Silva
 
PPT
T A L L E R D E V O C E R O S
bySanmil
 
DOC
Marz research results
byhillcrestappsforgood
 
Iskra unimer 33-obu0403
byRubin Stanojoski
 
Sangyo2009 07
byAkao Koichi
 
Invest in the UK Brochure
byMehmet Basaran
 
Predicting Performance by Profile
byDara Cassidy
 
DMAIC Freight Reduction Project
byJim_McLaughlin
 
4.5 webminig
byKrish_ver2
 
Mse5 0045
byUNA-PUNO
 
The State Of Social Media First Edition
byGreg in SD
 
2014 NFS Annual Report
bySusan Hartmann
 
Curation web fidji marechal dorion
byFidji Dorion
 
EBIZ DIWALI 2011
byAlfred Johns J
 
Bottling Dashboard Blank
byTrevor Clinard
 
1 q2009
byEmbraer RI
 
Diario la nacion (08.08.07)
byAndres Baytelman
 
Revista Alto do Tietê News - 4ª Edição Impressa
byRAdoTN
 
Smuhsd technology plan draft aug 11
bydbigue
 
Trias - yearly report 2014
byTrias ngo
 
Mundo em descontrole
byElder Fabiano Silva
 
T A L L E R D E V O C E R O S
bySanmil
 
Marz research results
byhillcrestappsforgood
 

Similar to Investor presentation eng 09/14

PDF
Bank Saint Petersburg 1H2013 IFRS Results
byBank Saint Petersburg
 
PDF
Annual Report 2006 ENG
byBank Vozrozhdenie IR Team
 
PPT
Financial Standard (Commercial Bank)
bybankfs
 
PPTX
Investor presentation Apr 2013
byBank Vozrozhdenie IR Team
 
PPT
Sberbank Europe Company Presentation (January 2014)
byJennifer Gerstl
 
PDF
Bank Saint Petersburg 1Q2013 IFRS Results
byBank Saint Petersburg
 
PDF
Bank Saint Petersburg 9M2013 IFRS Results
byBank Saint Petersburg
 
PDF
6M 2013 IFRS Results
byBank Vozrozhdenie IR Team
 
PDF
Annual Report 2009 ENG
byBank Vozrozhdenie IR Team
 
PDF
Annual Report 2004 ENG
byBank Vozrozhdenie IR Team
 
PDF
Factsheet q1 2014_eng
byBank Vozrozhdenie IR Team
 
PDF
Annual Report 2007 ENG
byBank Vozrozhdenie IR Team
 
PPTX
Fact sheet FY 2012 ENG
byBank Vozrozhdenie IR Team
 
PDF
Erste Group at Goldman Sachs European Financials Conference
byNEWSROOM für Unternehmer
 
PDF
Fact sheet 3M 2013 ENG
byBank Vozrozhdenie IR Team
 
PDF
Annual Report 2008 ENG
byBank Vozrozhdenie IR Team
 
PDF
9M 2010 IFRS Results
byBank Vozrozhdenie IR Team
 
PPTX
Bank Saint Petersburg 1H2012 IFRS Results
byBank Saint Petersburg
 
PDF
Fact sheet 6M 2013 ENG
byBank Vozrozhdenie IR Team
 
PDF
Press release ifrs q1_2014_eng
byBank Vozrozhdenie IR Team
 
Bank Saint Petersburg 1H2013 IFRS Results
byBank Saint Petersburg
 
Annual Report 2006 ENG
byBank Vozrozhdenie IR Team
 
Financial Standard (Commercial Bank)
bybankfs
 
Investor presentation Apr 2013
byBank Vozrozhdenie IR Team
 
Sberbank Europe Company Presentation (January 2014)
byJennifer Gerstl
 
Bank Saint Petersburg 1Q2013 IFRS Results
byBank Saint Petersburg
 
Bank Saint Petersburg 9M2013 IFRS Results
byBank Saint Petersburg
 
6M 2013 IFRS Results
byBank Vozrozhdenie IR Team
 
Annual Report 2009 ENG
byBank Vozrozhdenie IR Team
 
Annual Report 2004 ENG
byBank Vozrozhdenie IR Team
 
Factsheet q1 2014_eng
byBank Vozrozhdenie IR Team
 
Annual Report 2007 ENG
byBank Vozrozhdenie IR Team
 
Fact sheet FY 2012 ENG
byBank Vozrozhdenie IR Team
 
Erste Group at Goldman Sachs European Financials Conference
byNEWSROOM für Unternehmer
 
Fact sheet 3M 2013 ENG
byBank Vozrozhdenie IR Team
 
Annual Report 2008 ENG
byBank Vozrozhdenie IR Team
 
9M 2010 IFRS Results
byBank Vozrozhdenie IR Team
 
Bank Saint Petersburg 1H2012 IFRS Results
byBank Saint Petersburg
 
Fact sheet 6M 2013 ENG
byBank Vozrozhdenie IR Team
 
Press release ifrs q1_2014_eng
byBank Vozrozhdenie IR Team
 

More from Bank Vozrozhdenie IR Team

PPTX
Investor presentation rus 09/14
byBank Vozrozhdenie IR Team
 
PDF
Financial statement v bank-ifrs_1_q14_eng
byBank Vozrozhdenie IR Team
 
PPTX
Investor presentation 1014 rus
byBank Vozrozhdenie IR Team
 
PDF
Презентация для инвесторов Ноябрь 2013
byBank Vozrozhdenie IR Team
 
PPTX
Factsheet ru_2кв 2014
byBank Vozrozhdenie IR Team
 
PDF
Fact sheet 6M 2013 SW
byBank Vozrozhdenie IR Team
 
PDF
Fact sheet 6M 2013 RU
byBank Vozrozhdenie IR Team
 
PDF
Factsheet q1 2014_ru
byBank Vozrozhdenie IR Team
 
PDF
Press release ifrs 3_m_2014_rus
byBank Vozrozhdenie IR Team
 
PDF
6M 2013 IFRS Results Reporting
byBank Vozrozhdenie IR Team
 
PDF
Financial statement v bank-Ifrs q2 2014_eng
byBank Vozrozhdenie IR Team
 
PDF
Результаты по МСФО за 2 квартал 2013
byBank Vozrozhdenie IR Team
 
PDF
Financial statement v bank-Ifrs q2 2014_rus
byBank Vozrozhdenie IR Team
 
PDF
Financial statement v bank-ifrs_1_q14_rus
byBank Vozrozhdenie IR Team
 
Investor presentation rus 09/14
byBank Vozrozhdenie IR Team
 
Financial statement v bank-ifrs_1_q14_eng
byBank Vozrozhdenie IR Team
 
Investor presentation 1014 rus
byBank Vozrozhdenie IR Team
 
Презентация для инвесторов Ноябрь 2013
byBank Vozrozhdenie IR Team
 
Factsheet ru_2кв 2014
byBank Vozrozhdenie IR Team
 
Fact sheet 6M 2013 SW
byBank Vozrozhdenie IR Team
 
Fact sheet 6M 2013 RU
byBank Vozrozhdenie IR Team
 
Factsheet q1 2014_ru
byBank Vozrozhdenie IR Team
 
Press release ifrs 3_m_2014_rus
byBank Vozrozhdenie IR Team
 
6M 2013 IFRS Results Reporting
byBank Vozrozhdenie IR Team
 
Financial statement v bank-Ifrs q2 2014_eng
byBank Vozrozhdenie IR Team
 
Результаты по МСФО за 2 квартал 2013
byBank Vozrozhdenie IR Team
 
Financial statement v bank-Ifrs q2 2014_rus
byBank Vozrozhdenie IR Team
 
Financial statement v bank-ifrs_1_q14_rus
byBank Vozrozhdenie IR Team
 

Investor presentation eng 09/14

  • 1.
    Bank Vozrozhdenie PromisingSME and retail local franchise Investor presentation September 2014
  • 2.
    This page isintentionally left blank 2
  • 3.
    3 Agenda Keyfacts Business model Business overview Recent IFRS results Investment summary
  • 4.
    Best Corporate Governance, Russia (World Finance) Best IR Management in Russia (Global Banking & Finance review) 4 Over 20 years of successful development Establishment and banking license 34 branches in the Moscow Oblast 1991-1992 1993-1995 1996-1998 1999-2002 2003-2004 2005-2006 2007-2008 2009-2010 2011-2012 9 new regional branches opened Cash collection and delivery services established Corr. accounts with western banks License for foreign exchange Associate member of VISA International Authorized Bank of the Russian Government Joined S.W.I.F.T. Joined the World Bank development program Cooperation with CIBC S&P rating Rated by the Central Bank as a stable bank after the financial Crisis CIBC becomes a shareholder The 3rd largest branch network Top 10 by deposits from individuals Top 3 in the State Mortgage Program Top 7 mortgage provider Best mid-cap Russian bank (Big Money) $ 177 mln raised by 20th issue 3rd by lending to SME $81 mln EBRD financing Top 10 by bank cards issued Best SME bank in Moscow Oblast Top 10 retail banks in Russia First MBS deal on Rub 4,1 bln Bank’s ADRs traded on the Frankfurt Stock Exchange Established ATM network and a processing center Top 20 by corporate loan portfolio Widest ATM network in the Moscow Oblast Over 100,000 VISA cards issued 17th equity issue raises $33 million Joined Deposit Insurance Program Overall rebranding CRM system development The most transparent bank in Russia (S&P) Top 500 world’s banking brands Best bank IR and best IR professional (Thomson Reuters ) Bank of the Year in Russia in 2010 (The Banker) Over 1,550,000 clients Best public company (Secret Firmy Magazine) Alexander Dolgopolov appointed as the Chairman of the Management Board V.Bank launched project on cost efficiency 2013-2014 Best Banking Chairman of the Board in Russia (Global Banking & Finance review) Best IR Management in Russia (Global Banking & Finance review)
  • 5.
    Bank Vozrozhdenie –a community bank built on strong relationships with SMEs and individual customers Focus On Core Banking Products Servicing Corporate and SME Customers On Each Stage Of Business Development Servicing retail customers throughout their whole life-cycle 5 Balanced Lending and Funding policy Prudent risk-management policy Bank Vozrozhdenie strategy… … 1 700 000 Retail Clients… … 63 400 Corporate and SME Clients… … 21 Regions … … 142 Offices … … 900 ATMs … …service… …via… Increasing efficiency in service delivery
  • 6.
    As of September1, 2014 Moscow Oblast is a home territory with historically strong market position Total 6 Distribution network 21 regions of presence. Focus on the most perspective South and North- West Branches Sub branches Retail offices 34 43 8 85 550 ATMs – every town is under coverage Total Branches Sub branches Retail offices 19 36 2 57 348 ATMs
  • 7.
    28 Basic information& position in Russian banking system Mortgages 10 13 7 Net Assets Bank cards issued * RBC most recent rankings Key Figures, RUB Assets Loans b.p. Customer Funds Net Income Shareholders equity Retail Clients Corporate Clients Personnel Offices ATMs 209,609 mln 166,148 mln 158,110 mln 859 mln 23,196 mln 1,700,000 63,400 6,054 142 898 Loans to SMEs 6 19 39/19 Volume of retail deposits Branches/ATMs Rankings* Corporate loans 21 Financial indicators as of June 30, 2014
  • 8.
    8 Ba3/D-/NP, stable BB-/ruAA-, negative MOEX Financial Index Level 1 (Highest) MOEX Moody’s Standard&Poor’s Included in indices Listing The Banker V.Bank – “The Bank of the year 2010 in Russia” as per the survey of The Banker magazine BrandFinance Banking 500 survey V.bank ranks among top-10 Russian most valuable banking brands with brand value of $190 million Market recognition Credit ratings Listing High recognition of brand World Finance V.Bank was awarded for “Best Corporate Governance, Russia”, according to World Finance survey 42 35 28 21 14 7 0 Aaa 25 Aa 22 19 16 13 10 7 S&P S&P international BB-Moody's Moody's Moody's Interfax Aa3.ru Ba3 01/01/06 01/01/07 01/01/08 01/01/09 01/01/10 01/01/11 01/01/12 01/01/13 01/01/14 A Baa Ba B Caa S&P national scale ruAA-AAA AA A BBB BB B CCC
  • 9.
  • 10.
    10 Strategy Focuson core banking products and personal service
  • 11.
    Non-interest income Netinterest income 3,667 3,808 3,682 3,645 3,642 38% 39% 36% 28% 29% 62% 61% 64% 72% 71% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 11 169 171 56 55 162 50 Interest-bearing Deposits Interest-free Current accounts 153 158 44 45 113 116 112 109 113 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 - Customer oriented organic growth - Conservative balance sheet - Primarily deposit funded - Focused regional structure - Increasing efficiency in service delivery Retail loans Corporate loans 167 173 168 172 166 37 41 43 44 44 130 133 126 128 122 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Note: all loans are gross loans RUB bln RUB bln 27% 73% RUB bln 29% 71% Business model Business based on relationships… … gives solid non-interest income Loan portfolio development… … funded by customer accounts
  • 12.
    Assets stable acrossthe year, share of liquid instruments – 18,5% Client funds as the main funding source RUB bln RUB bln RUB bln 12 216 217 8,5% 211 211 210 8 9 9 10 9 5.5 1.6 169 171 162 153 158 9 9 10 14 14 71 51 44 41 13 21 22 22 23 23 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Due to other banks CBR funds under repos Client funds Securities issued Other liabilities Subordinated loans Equity Assets and liabilities 40 33 29 26 31 1 1 1 6.4 1 1.9 1 12 14 12 7 12 150 155 156 158 152 13 13 13 12 13 8.5% 15.9 5.5 2.7 5.6% 10.4 1.6 1.4 7.7 7.4 Q1 2014 Q2 2014 Loans from CBR under repo agreements Interbank funding with maturity less than 1 year Interbank funding with maturity over than 1 year 216 217 211 211 210 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Cash and equivalents Due from banks Invest. securities pledged under repos Securities Net loans Other assets 5,6% Market funding replaced by customer resources L/D ratio down to targeted range RUB bln Gross loans Customer funds L/D 99% 102% 104% 112% 105% 167 169 173 171 168 162 172 153 166 158 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
  • 13.
    13 107 109 106 104 110 87 91 87 89 93 20 18 19 16 18 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Retail deposits Retail accounts 62 62 55 35.8 36.8 31.2 49 48 28.8 27.7 26.0 24.9 24.3 19.8 20.1 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Corporate accounts Corporate deposits Customer funds Retail funds saw a strong inflow Rebound of corporate deposits RUB bln +5.6% -1.7% RUB bln Corporate funds monthly dynamics (RAS) 57 54 4 54 RUB Corporate FX Corporate 51 5 6 5 47 49 50 5 7 5 53 50 47 46 42 42 45 Dec Jan Feb Mar Apr May Jun Retail funds monthly dynamics (RAS) RUB Retail FX Retail 105 104 105 103 108 107 109 25 27 29 28 28 27 26 79 77 76 75 79 80 83 Dec Jan Feb Mar Apr May Jun 24% 10%
  • 14.
    14 Segment Totalcredit exposure, RUB mln Who are our SMEs? What is our SME Definitions 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 beverages. Local retailer chains – small chains of handy stores “Close-to-House” style for daily shopping located in dormitory area with high density of population. Car stores – range of car parts and accessories, new and used economy class cars most popular in the regions, where people give strong preference to repairing their engines themselves. Clothes factories – small-scale production of clothing and apparel.
  • 15.
    Loan portfolio developmentsin Q2 2014 Gross loan portfolio decreased… …due to corporate loan portfolio contraction… Large corporates SMEs 130.2 132.6 125.6 127.8 RUB bln 122.1 -6.2% 79 81 74 76 72 …while new loans are issued mainly to SMEs 76.2 72.2 Q1 2014 Q2 2014 15 Corporates Retail -3.2% 166.9 173.2 168.2 171.6 166.1 37 41 43 44 44 130 133 126 128 122 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 RUB bln …but diversification continues – lending to large corporates is curtailed… 51.6 49.9 Q1 2014 Q2 2014 *Loan portfolio before provisions for impairment RUB bln RUB bln Loans to new clients Loans to existing clients Recoveries Migration between SMEs and large corps +1,1 +4,3 -9,9 +0,5 Loans to new clients Loans to existing clients Recoveries Migration between SMEs and large corps 0,0 +0,5 -1,7 -0,5 51 52 51 52 50 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
  • 16.
    as of June30, 2014 Corporate portfolio 16 9.8% 36.7% 28.7% 24.8% up to 30 days 31-180 days 181-365 days > 1 year RUB bln 75,2% as of June 30, 2014 … and regional diversification Corporate loan book Credit policy sticks to reliable collateral… ….providing mostly working capital… 17% 38% 17% 11% 16% Moscow Oblast Other regions Moscow South regions North-West regions RUB 122.1 bln 12% 2% 22% RUB 122.1 bln 43% 21% Real estate Uncollateralized loans & Other collateral Equipment & vehicle Government guarantees Guarantees as of June 30, 2014 …maintaining industry… Real estate Construction Manufacturing Agriculture 4% 5% 11% Wholesale & retail trade Administrations Other Transport RUB 122.1 bln as of June 30, 2014 36% 0% 25% 8% 1% 9%
  • 17.
    Retail loan bookgrowth Retail loans maturity as of June 30, 2014 Retail portfolio 94.6% Primarily mortgages under state-related agency JSC “AHML” standards up to 30 days 31-180 days 181-365 days > 1 year Rates on retail loans Consumer loans, RUB Mortgages, RUB Credit cards, RUB 17 Retail lending – promising segment 25 20 15 10 5 1.6% 1.4% 2.3% 01/09/11 01/03/12 01/09/12 01/03/13 01/09/13 01/03/14 01/09/14 RUB bln High-margin consumer loans to customers with apparent cash-flow –employees of corporate clients We plan to continue expanding retail loan portfolio, that was an important lending growth driver during recent years Particular focus is on mortgages as the most perspective segment with gradual widening of consumer lending Mortgages Consumer and car loans Credit cards 40.5 6% +0.46% 42.6 43.9 44.1 5% 6% 5% 36.8 6% 27% 26% 25% 26% 68% 26% 68% 68% 69% 70% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Mortgage securitization as a source of long-term funding for loan portfolio expansion Securitization 1 Rub 4.1 billion in December 2011 Class A with 8.95% coupon rate and Baa2 rating from Moody’s Securitization 2 Rub 4.0 billion in April 2013 Class A with 8.5% coupon rate and Baa2 rating from Moody’s Securitization 3 Rub 3.45 billion in March 2014 Class A with 9% coupon rate and Baa2 rating from Moody’s
  • 18.
    Mobile and internetbank – key drivers for future growth 18 Card business – sales force of retail business Synergy of corporate and retail via core product – payrolls as of June 30, 2014 acquiring Visa and Mastercard Vbank-service and self-service Interest 70% Fees & commissions 5% 10% 23% 32% 84% Q3 2013 Q4 2013 Q1 2014 Q2 2014 16% Payrolls 14,760 15,040 15,040 15,070 Debit cards 1,333,679 1,347,461 1,273,089 1,217,821 Credit cards 54,674 64,462 70,306 92,083 ATMs 854 884 870 898 - Payrolls is one of the key tools for retail client base growth with strong potential – 63,400 of existing corporate clients with 18,393 installed “Internet-client” and “Bank-client” systems and 15,070 payrolls - Offering cards to existing corporate clients: credit cards for owners, top and mid-level managers and specialists, debit cards for personnel - Advanced functionality of the mobile and internet bank will switch more customer operations to remote channels unloading the offices and boosting transaction volume 30% cash operations payrolls Wide client base for business expansion Key points
  • 19.
  • 20.
    20 Sound positionon capital, liquidity and market risks Tier 1 Tier 1 + Tier 2 Statutory Capital (Н1.0) Statutory common equity Tier (Н1.1) FX structure Balance sheet maturity breakdown Interest rate risk 51.6 44.5 33.7 69.3 58.3 36.9 26.6 63.9 Demand and less than 1 month From 1 to 6 months From 6 to 12 months More than 1 year Assets Liabilities RUB bln 43.2 44.1 51.4 50.8 58.0 36.9 26.6 63.9 Demand and less than 1 month From 1 to 6 months From 6 to 12 months More than 1 year Interest-earning assets Interest-bearing liabilities RUB bln as of June 30, 2014 Liabilities as of June 30, 2014 as of June 30, 2014 11.7% 11.4% 12.0% 8.8% 9.7% 9.9% 14.6% 13.2% 13.8% 11.2% 11.6% 12.3% Q2 2013 Q3 2013 Q4 2013 Q4 2013 Q1 2014 Q2 2014 Basel I Basel III Assets 82% 13 7 25 18% Loans Due from banks&Securities Cash&Other assets 82% 31 3 1 18% Deposits Due to banks&Securities Other liabilities Capital adequacy
  • 21.
    NPLs dynamics* Annualizedcost of risk Charges to provisions to avg gross loans, QoQ Charges to provisions to avg gross loans, YtD Retail 1,102 1,810 1,350 1,730 1,863 21 3.7% 3.2% 1.9% 2.0% 2.2% 3.00% 4.47% 3.17% 3.94% 4,23%* Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Credit quality management 15 2.10% 2.30% 0.57% 3.11% 3.12% 2.10% 2.20% 2.30% 2.90% 2.79% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 NPLs, Rub mln Provisions, % of total portfolio NPLs, % of total portfolio 7.36% 7.36% 7.70% 7.65% 8.25% SMEs +Rub 744 mln new NPLs -Rub 234 mln recoveries -Rub 73 write-offs +Rub 1 123 mln new NPLs -Rub 990 mln recoveries no write-offs 10.35% 10.75% 10.13% 10.46% 8.53% 17,270 18,616 12,385 13,129 13,699 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 NPLs categorization Large corporates no new NPLs no recoveries no write-offs * 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 *2,2% of which is overdue less than 30 days 10.6% 11.1% 10.0% 10.8% 6.0% 5.3% 5.3% 4.7% 5.1% 6.0% 7,939 8,671 3,518 3,882 4,319 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 16.2% 17.8% 15.6% 14.1% 15.2% 14.8% 16.1% 14.6% 14.6% 15.1% 8,229 8,135 7,517 7,517 7,517 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 NPLs, Rub mln Provisions, % of total portfolio NPLs, % of total portfolio
  • 22.
    22 Credit quality As of June 30, 2014 Large corporates SMEs Mortgages Other retail RUB mln Total Gross loans, including 49,898 72,192 30,722 13,336 166,148 Current loans 84.9% 94.0% 97.1% 92.7% 91.8% Past-due but not impaired, including - 0.5% 2.4% 2.5% 0.8% Less than 90 days - 0.3% 2.2% 2.5% 0.7% Over 90 days - 0.2% 0.2% 0.0% 0.1% Impaired, including 15.1% 5.5% 0.5% 4.8% 7.4% Less than 90 days - 0.5% - 0.6% 0.3% Over 90 days 15.1% 5.0% 0.5% 4.2% 7.1% Total NPLs 15.1% 6.0% 2.9% 7.3% 8.2% Provisions -17.7% -6.0% -1.0% -4.9% -8.5% Net Loans 41,057 67,835 30,403 12,687 151,982 Provisions to NPLs Ratio 103.4% Provisions to 90 days+ NPLs 117.4% Rescheduled Loans 6.4% NPL - the whole amount of loans with principal overdue for more than 1 day as well as loans with any delay in interest payments.
  • 23.
    23 Recent IFRSresults iPhone
  • 24.
    RUB mln 24 Financial highlights As of June 30, 2014 2Q14 1Q14 QoQ 1H14 1H13 YoY Interest income 4,949 5,063 -2.3% 10,012 9,097 +10.1% Interest expense (2,554) (2,472) +3.3% (5,026) (4,680) +7.4% Fee and commission income 1,149 1,101 +4.4% 2,250 2,587 -13.0% Fee and commission expense (172) (185) -7.0% (357) (265) +34.7% Other operating income 270 138 +95.7% 408 418 -2.4% Total operating income b.p. 3,642 3,645 -0.1% 7,287 7,157 +1.8% Operating expense (2,178) (2,187) -0.4% (4,365) (4,226) +3.3% Provisions for loan impairment (973) (893) +9.0% (1,866) (2,275) -18.0% Provisions for impairment of other 46 (9) - 37 2 x18.5 assets Taxation (106) (128) -17.2% (234) (137) +70.8% Net profit 431 428 +0.7% 859 521 +64.9%
  • 25.
    Interest income &expense breakdowns NIM decomposition Loans Deposits Other Base effect -0,31% -0,13% +0,07% +0,02% Spread (net) Yields on earning assets (net) Cost of funds 11.5% 11.8% 11.8% 11.9% 11.7% 25 NIM in line with target despite funding costs growth 4.2% 4.5% 4.9% 4.9% 4.6% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 2.6 2.4 0.2 0.2 1.6 1.7 3.3 3.1 -1.5 -1.6 -0.4 -0.4 -0.5 -0.6 Q1 2014 Q2 2014 RUB bln Int. income from corp. loans Int. income from retail loans Other int. income Int. expense from retail deposits Int. expense from corp.deposits Other int. expense Interest rates Spread 6.4% 6.7% 6.9% 6.6% 6.2% 5.0% 5.1% 4.9% 5.3% 5.5% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Corporate term deposits Retail term deposits Yields on corporate loans Yields on retail loans 15.0% 15.3% 15.3% 15.4% 15.4% 10.9% 11.2% 11.4% 11.4% 11.3% 7.7% 7.6% 6.7% 7.3% 8.1% 6.5% 6.8% 6.7% 7.0% 7.0% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
  • 26.
    Fee income dynamics……with all components growing in Q2... 3.7 Settlements Cards Cash transactions Other 916 185 977 216 219 225 274 295 Net interest income Net fees Other income 3.8 3.7 3.6 3.6 0.22 0.14 0.10 0.14 0.27 26 Net fee income Net fee income with corrected gradual accruals of one-off reclass 1,215 1,247 23 20 17 14 11 8 940 916 977 1,137 1,145 1,169 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 1.2 1.2 0.9 0.9 1.0 2.2 2.4 2.6 2.6 2.4 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Operating results ……amid seasonally higher business activity… supported operating income on a stable level RUB bln RUB mln -0.1% +6.7% -0.7% -14.1% 238 241 Q1 2014 Q2 2014 RUB mln Balances on debit card accounts Credit turnover of card accounts H1 2012 86.8 H1 2013 90.0 H1 2014 91.6 2012 2013 2014 RUB bln
  • 27.
    Costs structure C/Iratio 27 Operating costs under control RUB mln Rent and costs relating to premises, equipment and depreciation of intangible assets Taxes other than income tax and contributions to the State Deposit Insurance Agency Administrative and other expenses Staff costs 2,135 2,134 310 338 176 181 2,417 2,187 450 2,178 -0,4% 281 348 203 170 194 328 336 404 436 329 1,321 1,279 1,360 1,300 1,307 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Cost to Income Ratio, % 58.2% 56.0% 65.6% 60.0% 59.8% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Operating model optimization Stage Centralisation: Internet-Bank client support service  Work with orders and requests of Federal Tax Service  Requests - done Orders - Dec14 AML/FT control  Moscow region Controller for the service of regular payments for the mobile  and internet-bank FRAUD-analysis and payment controller function  Automation of Internet-client payment processing  on Rub payments Optimisation of individuals’ incoming payments processing  Uniting cashier and teller functions  Moscow region Work with orders and requests of Federal Bailiff Service  Requests - done Orders - Oct14 Stage HR documentation handling Moscow region – Dec14 Security Administrators function Moscow region – Oct15 Accounts opening / online client profiles Moscow region - Mar15/Dec15 Handling internal payrolls Moscow region – Jan15 FX control Moscow region – Mar15 Fixed cash collection routs planning Part of Moscow region – Oct14 Credit middle and back office Moscow region – Dec14 Credit operations with large clients Moscow region – Dec14 Credit turnover/ reissue of bank cards on payrolls 2015 Establishing IT Help Desk/Service Desk 2015
  • 28.
    Net profit RUBmln 28 Efficiency indicators Stable operating profit Net profit Provisions Operating profit before provisions and taxes 1.5 1.7 -1.3 +0.4% -4.4% 1.3 1.5 1.5 -1.3 -0.4 -0.9 -0.9 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 +0.7% +129% ROE, % ROA, % Operating profit before provisions and taxation / Assets ROA 2.9% 3.1% 2.4% 2.8% 2.8% 0.4% 0.5% 1.4% 0.8% 0.8% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 RUB bln Operating profit before provisions and taxation / Average equity ROE 28.8% 31.2% 23.0% 25.8% 25.5% 3.5% 4.6% 13.2% 7.6% 7.5% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 188 247 724 428 431 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
  • 29.
    29 Capital &Governance
  • 30.
    Shareholding structure Shareprice on MOEX 1,000 RUB 800 RUB 600 RUB 400 RUB 200 RUB 0 RUB 30 10,000,000 RUB 1,000,000 RUB 100,000 RUB 10,000 RUB 1,000 RUB 100 RUB Volume Last price 1.9.13 1.12.13 1.3.14 1.6.14 1.9.14 Capital structure as of May 12, 2014 Other 31% 41% 28% SHAREHOLDER STAKE IN EQUITY Dmitry Orlov (Chairman of the Board of Directors) 30.70% Otar Margania (Member of the Board of Directors) 18.65% JPM International Consumer Holding Inc. 9.37% Total 58.72% As per MOEX data INDICATOR Q2 2014 Price to Book Value 0.4 Price to Earnings 6.0 Book Value per Share RUB926 ($28) Earnings per Share RUB69 ($2) Market cap RUB10 bln ($298 mln) Chairman Other management More than 8,000 individuals and 1,000 companies are among our shareholders with foreign investors owning more than 34% Major shareholders Valuations
  • 31.
    Audit commission RiskManagement V.Bank was awarded as the Bank of the Year in Russia in 2010 31 High standards of corporate governance PricewaterhouseCoopers Audit committee Andrey Internal Control and Audit Service Shalimov was awarded for the Best IR in 2012 GENERAL MEETING OF SHAREHOLDERS BOARD OF DIRECTORS 12 members 9 are non-executive 5 independent CHAIRMAN OF THE MANAGEMENT BOARD Mr. Alexander Dolgopolov System of control HR and Compensation Committee - Timely information provision to investors - Full disclosure on web-site - Quarterly IFRS financial reporting with web-cast presentations - Financial reports under IFRS audited from 1991 - Solid and professional team AUDITOR Continuing excellent reputation recognition: MANAGEMENT STRUCTURE MANAGEMENT BOARD 12 members 4 Deputy Chairmen The arrows represent the authorities to appoint or elect the relevant Bank’s bodies and the External Auditor V.Bank has the Best Corporate Governance in Russia, 2013
  • 32.
    Russian economy slowdown,macro instability  Ongoing pressure on lending rates driven by state banks 32 Investment Summary SOUND S TRAT EGY BUS I NE S S S TRENGTHS Over 20 years in Top-30 Russian banks amid changing competitive landscape Successfully passed through all crises (1993-94,1998, 2004, 2008) with time-proved conservative risk policies Business model generating solid fees & commissions Organic growth in core regions and client segments Focus on operating efficiency One of the most transparent FI in Russia – Best Corporate Governance by World Finance in 2013, leaders of Information Transparency to Shareholders by S&P in 2008, 2007, 2006 Management Board (12 members) with long-term banking experience; the Board of Directors headed by the Chairman with 40 years in Soviet and Russian banking systems Positive track-record of communication with investors Loyal clientele due to strong relationships with the customers 60% of client base is concentrated in promising Moscow Oblast Corporate business focused on high-profitable SMEs, retail – on safe mortgages, consumer loans only for the “known” customers Broad product line based on advanced IT-solutions and remote banking services Still high potential credit risk  Limited demand from key client sector – SME Competitive landscape for Russian private banks  Still high potential credit risk Financial markets turbulence Pace of operating model optimization project realization HIGH S TAN D AR DS CURRENT CHAL L ENGE S
  • 33.
    33 Investor Relationscontacts Maria Gorbunova Key specialist of IR M.Gorbunova@voz.ru Elena Mironova Deputy head of IR E.Mironova@voz.ru Download our contacts Download our presentation Andrey Smirnov IR Specialist AV.Smirnov@voz.ru Download our IR app for iPhone Download our IR app for iPad Tel.: +7 495 620 90 71 E-mail: investor@voz.ru Website: http://www.vbank.ru/en/investors Slideshare: www.slideshare.net/IRTeam Twitter: www.twitter.com/vbank_IR
  • 34.
    Some of theinformation 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. 34 Disclaimer