Investor presentation 1014 eng
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Bank Vozrozhdenie has over 20 years of experience in banking and provides retail and commercial banking services across 21 Russian regions. It has a focus on serving SMEs and retail customers through relationships and core banking products. The bank has a conservative business model with organic growth, low risk appetite, and customer deposits as the primary funding source. Recent IFRS results show a decrease in corporate loans and increase in retail deposits, maintaining a loan to deposit ratio within targeted ranges.
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Investor presentation 1014 eng
- 1. Bank Vozrozhdenie Promising SME and retail local franchise Investor presentation October 2014
- 2. 2 This page is intentionally left blank
- 3. 3 Agenda Key facts Business model Business overview Recent IFRS results Investment summary
- 4. 4 Over 20 years of successful development 1991-1992 1993-1995 Establishment and banking license 34 branches in the Moscow Oblast 1996-1998 2003-20041999-2002 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 Corporate Governance, Russia (World Finance) Best IR Management in Russia (Global Banking & Finance review) Best Banking Chairman of the Board in Russia (Global Banking & Finance review) Best IR Management in Russia (Global Banking & Finance review)
- 5. 5 Prudent risk-management policy Balanced Lending and Funding policy Servicing retail customers throughout their whole life-cycle Servicing Corporate and SME Customers on Each Stage of Business Development Bank Vozrozhdenie strategy… … 1 700 000 Retail Clients… … 63 400 Corporate and SME Clients… … 21 Regions … … 142 Offices … … 879 ATMs … Focus On Core Banking Products …service… …via… Increasing efficiency in service delivery Bank Vozrozhdenie – a community bank built on strong relationships with SMEs and individual customers
- 6. 6 Moscow Oblast is a home territory with historically strong market position 21 regions of presence. Focus on the most perspective South and North- West Branches Sub branches Retail offices 34 43 8 85 Total As of October 1, 2014 531 ATMs – every town is under coverage 19 36 2 57 Total 348 ATMs Retail officesBranches Sub branches Distribution network
- 7. 7 * 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 6,054 142 879 Loans to SMEs 6 19 39/19 28 13 Volume of retail deposits Branches/ATMs Net Assets Bank cards issued Rankings* Corporate loans 21 Mortgages 10 Basic information & position in Russian banking system Financial indicators as of June 30, 2014
- 8. 8 Ba3/D-/NP, stable BB-/ruAA-, negative MICEX Broad Market Index MICEX Second-Tier Index MICEX Start Cap Index MICEX Financial Index Level 1 (Highest) MOEX Moody’s Standard&Poor’s Included in indices Listing BrandFinance Banking 500 survey V.bank ranks among top-10 Russian most valuable banking brands with brand value of $190 million The Banker V.Bank – “The Bank of the year 2010 in Russia” as per the survey of The Banker magazine 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 0 7 14 21 28 35 42 7 10 13 16 19 22 25 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 S&P S&P international BB- Moody's Ba3 Moody's Interfax Aa3.ru Moody's Aaa Aa A Baa Ba B Caa S&P national scale ruAA- AAA AA A BBB BB B CCC
- 10. 10 Strategy Focus on core banking products and personal service
- 11. 11 113 116 112 109 113 56 55 50 44 45 169 171 162 153 158 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Interest-bearing Deposits Interest-free Current accounts 62% 61% 64% 72% 71% 38% 39% 36% 28% 29% 3,667 3,808 3,682 3,645 3,642 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Non-interest income Net interest income 130 133 126 128 122 37 41 43 44 44 167 173 168 172 166 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Retail loans Corporate loans - Customer oriented organic growth - Conservative balance sheet - Primarily deposit funded - Focused regional structure - Increasing efficiency in service delivery 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. 12 21 22 22 23 23 7 5 4 4 31 1 4 1 1 9 9 10 14 14 169 171 162 153 158 5.5 1.6 8 9 9 10 9 216 217 211 211 210 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 7.7 7.4 2.7 1.4 5.5 1.6 15.9 10.4 8.5% 5.6% 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 13 13 13 12 13 150 155 156 158 152 12 14 12 7 12 6.4 1.91 1 1 1 1 40 33 29 26 31 216 217 211 211 210 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 Assets stable across the year, share of liquid instruments – 18,5% Client funds as the main funding source Market funding replaced by customer resources L/D ratio down to targeted range RUB bln RUB bln RUB bln 167 173 168 172 166169 171 162 153 158 99% 102% 104% 112% 105% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Gross loans Customer funds L/D 8,5% 5,6% RUB bln
- 13. 13 20 18 19 16 18 87 91 87 89 93 107 109 106 104 110 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Retail deposits Retail accounts 26.0 24.9 24.3 19.8 20.1 35.8 36.8 31.2 28.8 27.7 62 62 55 49 48 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 -1.7%+5.6% RUB bln 53 50 47 46 42 42 45 4 5 6 5 5 7 5 57 54 54 51 47 49 50 Dec Jan Feb Mar Apr May Jun RUB Corporate FX Corporate Corporate funds monthly dynamics (RAS) 79 77 76 75 79 80 83 25 27 29 28 28 27 26 105 104 105 103 108 107 109 Dec Jan Feb Mar Apr May Jun RUB Retail FX Retail Retail funds monthly dynamics (RAS) 24% 10%
- 14. 14 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 beverages. 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. Local retailer chains – small chains of handy stores “Close-to-House” style for daily shopping located in dormitory area with high density of population. Who are our SMEs? What is our SME Definitions
- 15. 15 130 133 126 128 122 37 41 43 44 44 166.9 173.2 168.2 171.6 166.1 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Corporates Retail RUB bln …while new loans are issued mainly to SMEs *Loan portfolio before provisions for impairment -3.2% 51.6 49.9 Q1 2014 Q2 2014 …but diversification continues – lending to large corporates is curtailed… 76.2 72.2 Q1 2014 Q2 2014 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 Loan portfolioLoan portfolio developments in Q2 2014 Gross loan portfolio decreased… …due to corporate loan portfolio contraction… 51 52 51 52 50 79 81 74 76 72 130.2 132.6 125.6 127.8 122.1 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Large corporates SMEs -6.2% RUB bln
- 16. 16 9.8% 36.7% 28.7% 24.8% up to 30 days 31-180 days 181-365 days > 1 year Corporate portfolio 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 Moscow Other regions South regions North-West regions RUB 122.1 bln 12% 2% 21%43% 22% RUB 122.1 bln Real estate Uncollateralized loans & Other collateral Equipment & vehicle Government guarantees Guarantees as of June 30, 2014 as of June 30, 2014 …maintaining industry… Construction Manufacturing Agriculture Wholesale & retail trade Administrations Other Transport Real estate RUB 122.1 bln as of June 30, 2014 36% 0% 25% 1% 11% 5% 4% 8% 9%
- 17. 17 Retail lending – promising segment 5 10 15 20 25 01/09/11 01/03/12 01/09/12 01/03/13 01/09/13 01/03/14 01/09/14 Consumer loans, RUB Mortgages, RUB Credit cards, RUB 1.6% 1.4% 2.3% 94.6% up to 30 days 31-180 days 181-365 days > 1 year Retail portfolio RUB bln High-margin consumer loans to customers with apparent cash-flow –employees of corporate clients Primarily mortgages under state-related agency JSC “AHML” standards 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 as of June 30, 2014 Retail loans maturityRetail loan book growth Rates on retail loans Mortgage securitization as a source of long-term funding for loan portfolio expansion 68% 68% 68% 69% 70% 26% 26% 27% 26% 25%6% 6% 5% 6% 5% 36.8 40.5 42.6 43.9 44.1 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Mortgages Consumer and car loans Credit cards 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 +0.46%
- 18. 18 acquiring Visa and Mastercard Vbank-service and self-service Card business – sales force of retail business Q3 2013 Q4 2013 Q1 2014 Q2 2014 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 70% Interest Fees & commissions - 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% 32% 23% 10% 5% cash operations payrolls Key pointsWide client base for business expansion Mobile and internet bank – key drivers for future growth Synergy of corporate and retail via core product – payrolls as of June 30, 2014 16% 84%
- 20. 20 Sound position on capital, liquidity and market risks 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 as of June 30, 2014as 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 Tier 1 Tier 1 + Tier 2 Statutory Capital (Н1.0) Statutory common equity Tier (Н1.1) Basel I Basel III 82% 13 7 25 18% Assets Loans Due from banks&Securities Cash&Other assets 82% 31 3 1 18% Liabilities Deposits Due to banks&Securities Other liabilities Capital adequacy
- 21. 21 1,102 1,810 1,350 1,730 1,863 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 Retail Credit quality management 15 2.30%2.10% 0.57% 3.11% 3.12% 2.20%2.10%2.30% 2.90% 2.79% Q2 2014Q1 2014Q4 2013Q3 2013Q2 2013 Charges to provisions to avg gross loans, QoQ Charges to provisions to avg gross loans, YtD +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 17,270 18,616 12,385 13,129 13,699 10.13% 10.46% 7.36% 7.70% 8.53% 10.35% 10.75% 7.36% 7.65% 8.25% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 NPLs, Rub mln Provisions, % of total portfolio NPLs, % of total portfolio no new NPLs no recoveries no write-offs NPLs categorization Annualized cost of riskNPLs dynamics* * NPL includes the whole principal of loans at least one day overdue either on principal or interest as well as not overdue loans with signs of impairment *2,2% of which is overdue less than 30 days 7,939 8,671 3,518 3,882 4,319 10.6% 11.1% 5.3% 5.3% 6.0%10.0% 10.8% 4.7% 5.1% 6.0% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 SMEs 8,229 8,135 7,517 7,517 7,517 14.1% 15.2% 14.8% 16.1% 17.8%16.2% 15.6% 14.6% 14.6% 15.1% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Large corporates 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 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. RUB mln
- 24. 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 assets 46 (9) - 37 2 x18.5 Taxation (106) (128) -17.2% (234) (137) +70.8% Net profit 431 428 +0.7% 859 521 +64.9% RUB mln
- 25. 25 4.2% 4.5% 4.9% 4.9% 4.6% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 NIM in line with target despite funding costs growth Interest income & expense breakdowns NIM decomposition SpreadInterest rates 3.3 3.1 1.6 1.7 0.2 0.2 -1.5 -1.6 -0.4 -0.4 -0.5 -0.6 2.6 2.4 Q1 2014 Q2 2014 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 RUB bln 6.4% 6.7% 6.9% 6.6% 6.2% 11.5% 11.8% 11.8% 11.9% 11.7% 5.0% 5.1% 4.9% 5.3% 5.5% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Spread (net) Yields on earning assets (net) Cost of funds -0,31% -0,13% +0,07% +0,02% Loans Deposits Other Base effect 7.7% 7.6% 6.7% 7.3% 8.1% 6.5% 6.8% 6.7% 7.0% 7.0% 10.9% 11.2% 11.4% 11.4% 11.3% 15.0% 15.3% 15.3% 15.4% 15.4% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Corporate term deposits Retail term deposits Yields on corporate loans Yields on retail loans
- 26. 26 8 11 14 17 20 23 1,215 1,247 940 916 977 1,137 1,145 1,169 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Net fee income Net fee income with corrected gradual accruals of one-off reclass 2.2 2.4 2.6 2.6 2.4 1.2 1.2 0.9 0.9 1.0 0.22 0.14 0.10 0.14 0.27 3.7 3.8 3.7 3.6 3.6 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Net interest income Net fees Other income Operating results …supported operating income on a stable level…amid seasonally higher business activity… Fee income dynamics… …with all components growing in Q2... RUB bln RUB mln -0.1% +6.7% -0.7% -14.1% 238 241 274 295 219 225 185 216 916 977 Q1 2014 Q2 2014 Settlements Cards Cash transactions Other RUB mln 2012 2013 2014 H1 2012 86.8 H1 2013 90.0 H1 2014 91.6 Balances on debit card accounts Credit turnover of card accounts RUB bln
- 27. 27 Operating costs under control 1,321 1,279 1,360 1,300 1,307 328 336 404 436 329 176 181 203 170 194 310 338 450 281 348 2,135 2,134 2,417 2,187 2,178 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 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 Costs structure C/I ratio RUB mln -0,4% 58.2% 56.0% 65.6% 60.0% 59.8% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Cost to Income Ratio, % 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 Operating model optimization
- 28. 28 Efficiency indicators Net profitStable operating profit ROA, %ROE, % 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 Operating profit before provisions and taxation / Assets ROA RUB bln 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 Operating profit before provisions and taxation / Average equity ROE -1.3 -1.3 -0.4 -0.9 -0.9 1.5 1.7 1.3 1.5 1.5 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Provisions Operating profit before provisions and taxes +0.4% -4.4% 188 247 724 428 431 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Net profit RUB mln +0.7% +129%
- 30. 30 0 RUB 200 RUB 400 RUB 600 RUB 800 RUB 1,000 RUB 100 RUB 1,000 RUB 10,000 RUB 100,000 RUB 1,000,000 RUB 10,000,000 RUB 1.10.13 1.1.14 1.4.14 1.7.14 1.10.14 Volume Last price 28% 31% 41% 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 as of May 12, 2014 More than 8,000 individuals and 1,000 companies are among our shareholders with foreign investors owning more than 34% Capital structure Share price on MOEXShareholding structure ValuationsMajor shareholders Other
- 31. 31 V.Bank was awarded as the Bank of the Year in Russia in 2010 Andrey Shalimov was awarded for the Best IR in 2012 CHAIRMAN OF THE MANAGEMENT BOARD Mr. Alexander Dolgopolov GENERAL MEETING OF SHAREHOLDERS BOARD OF DIRECTORS 12 members 9 are non-executive 5 independent System of control - 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 HR and Compensation Committee Continuing excellent reputation recognition: AUDITOR PricewaterhouseCoopers Audit commission Audit committee Internal Control and Audit Service Risk Management 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 High standards of corporate governance V.Bank has the Best Corporate Governance in Russia, 2013
- 32. 32 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 S O U N D S T R A T E G Y B U S I N E S S S T R E N G T H S C U R R E N T C H AL L E N G E SH I G H S T AN D A R D S Ongoing pressure on lending rates driven by state banks Limited demand from key client sector – SME Still high potential credit risk Russian economy slowdown, macro instability Still high potential credit risk Competitive landscape for Russian private banks Financial markets turbulence Pace of operating model optimization project realization Investment Summary
- 33. 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 presentation Download our contacts Andrey Smirnov IR Specialist AV.Smirnov@voz.ru Download our IR app for iPad Download our IR app for iPhone 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. 34 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. Disclaimer