September 2020 115 0 223 135 INVESTOR PRESENTATION€¦ · INVESTOR PRESENTATION September 2020 . 0 159 223 10 41 115 173 175 175 120 180 151 214 224 141 241 204 86 234 107 80 0 170

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INVESTOR PRESENTATION

September 2020

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This presentation has been prepared by VTB Bank (PJSC) (“VTB”) and has not been independently verified. This presentation does not constitute or form part or all of, and should not be construed

as, any offer of, or any invitation to sell or issue, or any solicitation of any offer to purchase, subscribe for, underwrite or otherwise acquire, or a recommendation regarding, any shares or other

securities representing shares in, or any other securities of VTB, or any of its subsidiaries, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in

connection with, any contract or any commitment whatsoever or any investment decision. Some of the information in this presentation may contain projections or other forward-looking statements

regarding future events or the future financial performance of VTB and its subsidiaries (together with VTB, the "Group"). Forward-looking statements are statements that are not historical facts. They

include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the

management of VTB. Such forward-looking statements are based on numerous assumptions, beliefs and expectations regarding the Group's present and future business strategies, financial

conditions, targets and the operating environment. We caution 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 materially differ 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 assume no obligation to update or revise these statements whether as a result of new

information or for any other reason or to make them conform to actual results. Certain numbers and ratios contained herein, related to past dates and periods, might have been restated in

accordance with the latest financial statements issued, and hence differ from the ones presented in the previous communications. Figures shown in this presentation are based on figures disclosed

in the annual and interim financial statements of the Group. However, figures used in this presentation might have been rounded, which could result in slight differences in percentage changes

compared to those provided in such financial statements.

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VTB at a Glance

Macro environment and banking sector in Russia

Strategy and Transformation

Business Overview

Appendix

9

12

4

17

21

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4

VTB AT A GLANCE

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VTB AT A GLANCE 5

BUSINESS OVERVIEW STRATEGY & TRANSFORMATION APPENDIX MACRO

▲ - YTD CHANGE

OVERVIEW OF VTB GROUP

VTB Group

17

EMPLOYEES

81

BRANCH NETWORK

1.6

GLOBAL PRESENCE

countries

CREDIT RATINGS

BBB-

Moody’s

CLIENT BASE

13

ATMs ASSETS

16.9

MARKET CAPITALISATION

in Russia

18

thsd

in Russia

RUB trln thsd

in Russia

ruAAA

Baa3

6.0 USD bn

thsd

mln banking

clients

in Russia

AS OF 07-SEP-20

AS OF 31-JUl-20

AS OF 30-JUN-20 AS OF 30-JUN-20

AS OF 30-JUN-20

AS OF 30-JUN-20

17.6%

20.5%

LOANS TO

INDIVIDUALS

16.3%

▼60bp

▼10bp

MORTGAGE DEPOSITS OF

INDIVIDUALS

ASSETS CORPORATE

LOANS

CORPORATE

DEPOSITS

24.1%

18.0%

14.9%

▲ 30bp

▼10bp ▲50bp

MARKET SHARE AS OF 31-JUL-20

▲30bp

AS OF 30-JUN-20

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VTB AT A GLANCE 6


8.0%

9.0% 8.4%

8.9% 8.7% 9.3% 9.3%

VTB OWNERSHIP STRUCTURE AND CAPITAL ADEQUACY

STRUCTURE OF EQUITY CAPITAL

FREE FLOAT

39.1%

FEDERAL AGENCY FOR STATE

PROPERTY MANAGEMENT

60.9%

ORDINARY SHARES (HELD BY FEDERAL AGENCY

FOR STATE PROPERTY MANAGEMENT)

12.1%

ORDINARY SHARES IN FREE FLOAT

7.8%

PREFERENCE TYPE 1 SHARES

(HELD BY MINISTRY OF FINANCE OF

THE RUSSIAN FEDERATION)

32.9%

PREFERENCE TYPE 2 SHARES

(HELD BY STATE CORPORATION

DEPOSIT INSURANCE AGENCY)

47.2%

STATE-OWNED

92.2%

19.9%

INSTITUTIONAL INVESTORS

34.2%

INDIVIDUAL INVESTORS

4.9%

DATA AS OF 01-Jun-20

STRUCTURE OF VOTING RIGHTS

VTB INDIVIDUAL SHAREHOLDER BASE

IS RAPIDLY INCREASING % OF FREE FLOAT

+9.3 p.p.

CAPITAL ADEQUACY RATIOS

TOTAL

CAR

ATT1

CET1

BASED ON RUSSIAN REGULATORY REQUIREMENTS WITH TOTAL CAR REPRESENTED

BY N20.0, TIER I – N20.2, COMMON EQUITY – N20.1.

01-Jan-19 01-Apr-19 01-Jul-19 01-Oct-19 01-Jan-20 01-Apr-20 01-Jul-20

11.5%

8.0%

9.5%

MIN. LEVEL

3.3% 3.1% 4.2% 7.8% 7.7%

12.6%

≈ 90 thsd

≈ 89 thsd

≈94 thsd

≈121 thsd

≈159 thsd

≈273 thsd

2015 2016 2017 2018 2019 01-Jun-20

11.4% 11.6% 11.2% 11.2% 11.2%

12.0% 11.8%

9.0%

9.9% 9.2%

9.7% 9.6% 10.2% 10.2%

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VTB AT A GLANCE 7


REPORTS

VTB CORPORATE GOVERNANCE SYSTEM

APPROVES

ELECTS

REPORTS

REPORTS ELECTS

ELECTS ELECTS

ELECTS

ELECTS REPORTS

REPORTS AND PREPARES

RECOMMENDATION


RECOMMENDATION

REPORTS


RECOMMENDATION

ELECTS

APPROVES

Andrey Kostin

President and Chairman

of VTB Management Board

Anton Siluanov

Chairman

of VTB Supervisory Council

Minister of Finance of

the Russian Federation

SUPERVISORY COUNCIL

11 MEMBERS

INCLUDING 4 REPRESENTATIVES OF MINORITY SHAREHOLDERS

MANAGEMENT BOARD

11 MEMBERS INTERNAL AUDIT

DEPARTMENT

AUDIT

COMMITTEE

STRATEGY AND

CORPORATE

GOVERNANCE

COMMITTEE

STATUTORY AUDIT

COMMISSION

GENERAL MEETING OF SHAREHOLDERS

INDEPENDENT AUDITOR

STAFF AND

REMUNERATION

COMMITTEE

CORPORATE

SECRETARY

REPORTS

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VTB AT A GLANCE 8


VTB GROUP OPERATING MODEL IN LINE WITH BEST GLOBAL PRACTICES

CORPORATE-INVESTMENT

BANKING RETAIL BUSINESS MEDIUM AND SMALL

BUSINESS

#1 Investment bank and #2 Corporate bank in Russia

RUB 8,152.8 BN RUB 1,884.7 BN

BUSINESS WITH LARGE CORPORATE

CLIENTS

Broad corporate client base (coverage

BUSINESS WITH INDIVIDUALS BUSINESS WITH SMALL CORPORATE

AND MID-CORPORATE CLIENTS

wide regional franchise

Over 1.6 thsd branch network and 13 mln clients in Russia

with leading Russian companies across

CORPORATE CENTER

ADMIN HR STRATEGY

OPERATIONS PR

AUDIT AND COMPLIANCE

MARKETING RISK

MANAGEMENT

CONTROL SUPPORT

c

LEGAL SECURITY

IT FINANCE

RUB 5,605.5 BN

all economic sectors

c. 520 thsd mid-corporate banking clients

7M’20 ASSETS

and c. 17 thsd ATMs, JV with the Russian Post:

#1 retail franchise in Russia (c. 20 thsd retail

outlets and c. 5 thsd ATMs

and small business clients

of Post Bank)

in Russia c. 85%) with long-term relationships

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9

MACRO ENVIRONMENT

AND BANKING SECTOR IN RUSSIA

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10

VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & TRANSFORMATION APPENDIX MACRO

0.7

-2.3

0.3 1.6 2.3

1.3 1.6

-4.7

2,5

-0.8

2.2 2.1 3.5

2.3 1.5

-8.0

2.7

-10.0

-4.8

1.3 2.8

1.6

4.3

-2.6 -1.5

-10.1

-0.2

4.8 5.4

1.7 1.2

-4.0

2014 2015 2016 2017 2018 2019 3M'2020 7M'2020

MACRO ENVIRONMENT IN RUSSIA

CPI DEC / DEC

USD/RUB (CBR, AVG)

OIL PRICE (URALS, AVG)

CBR KEY RATE (AVG)

OIL PRICE USD AND EXCHANGE RATE RUB INFLATION AND CBR KEY RATE

RUSSIAN MACROECONOMIC INDICATORS %

Current rate:

4.25%

GDP

INVESTMENTS IN FIXED CAPITAL

INDUSTRIAL PRODUCTION

RETAIL TURNOVER

FOR 7M’20 JUL / JUL

1 – Data of the Ministry of Economic Development

1

7.9%

12.6% 10.6%

9.1% 7.4% 7.3%

5.5% 38.0

60.7 66.9 58.3 62.5 64.7 71.3

97.6

51.0 41.6 53.1 69.7

63.9

44.2

2014 2015 2016 2017 2018 2019 7M'2020

11.4% 12.9%

5.4%

2.5% 4.3%

3.0% 3.4%

2014 2015 2016 2017 2018 2019 7M'2020

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11

VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & TRANSFORMATION APPENDIX MACRO 11


12.9%

22.4% 16.3%

LOANS TO INDIVIDUALS

(% OF GDP)

EASTERN

EUROPE & CIS1

TOTAL

RETAIL

CORPORATE

BANKING SECTOR IN RUSSIA

(1) Poland, Czech Republic, Slovakia, Hungary, Croatia, Bulgaria, Romania, Slovenia,

Serbia, Ukraine, Georgia, Belarus, Kazakhstan

LOANS DEPOSITS

7M’20

10.3% 6.1%

6.8% 3.0%

13.3% 9.0%

5.8% 9.1%

2.9% 8.6%

7.1% 9.3%

RUB BN

CORPORATES INDIVIDUALS

х 5.3

Mortgage Cars Cards

▲

RUSSIA

Consumer & other

х 1.8 ▲

5Y CAGR(1)

6.0% 5.6%

9.4% 11.4%

4.8% 3.7%

TOTAL

RETAIL

CORPORATE

11.8% 7.2%

14.8% 8.1%

9.7% 6.5%

6.9%

7.3

12.2

12.3

12.8

12.9

9.6

11.3

9.3

9.5

9.5

16.9%

23.6%

21.5%

22.4%

22.4%

2006

2010

2015

2018

2019

1.3

2.8

4.9

6.2

6.9

0.5

0.5

1.3

1.2

1.5

1.1

1.1

0.8

0.8

0.9

4.3

4.5

5.9

6.2

7.0

7.2%

8.8%

12.8%

14.3%

16.3%

2006

2010

2015

2018

2019

INDUSTRY INDUSTRY

LOANS,% DEPOSITS,%

(1) 5Y CAGR calculations are based on 6M’2015 and 6M’2020 financial data.

3,794

9,818

23,219

25,987

28,460

30,549

32,108

3,905

10,881

27,923

27,004

31,424

31,788

35,187

2,065

4,085

10,684

12,174

14,901

17,651

18,703

5,909

14,849

36,173

34,786

38,947

39,854

43,516

2006

2010

2015

2017

2018

2019

7M'20

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12

STRATEGY AND TRANSFORMATION

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13



PROGRAMME OBJECTIVES

• IMPROVEMENT OF TIME TO MARKET

FOCUS ON CLIENT-

CENTRICITY

KEY VTB GROUP STRATEGIC PRIORITIES FOR 2022

STRATEGIC

PRIORITIES

LEADERSHIP IN CUSTOMER

SATISFACTION

BREAKTHROUGH

IN DIGITALIZATION

● 100% PAPERLESS WORKFLOW

● >50% SALES VIA DIGITAL CHANNELS (RETAIL&SME)

● 100% PRODUCTS AVAILABILITY DIGITAL

AMONG PEER BANKS

CREATING HIGHLY EFFECTIVE

ORGANIZATION & CULTURE BETTER PERSONNEL ENGAGEMENT

MOTIVATED AND

EFFICIENT TEAM

SET UP & ROLL-OUT

A LEADER IN SELECTED ECOSYSTEMS

BUILDING A ROBUST

AND AGILE OPERATIONAL

AND TECH PLATFORM

TIME-TO-MARKET

FINANCIAL TARGETS

ROE CIR

DIVIDEND

PAYOUT

NET

PROFIT

15%

300

32%

50%

2022

24/7 ACCESSIBILITY

IN DIGITAL ECONOMY

RUB BN

600 DAYS TRANSFORMATION PROGRAMME WILL CONTRIBUTE TO THE ACHIEVEMENT

OF STRATEGIC GOALS 2022 IN RETAIL AND MSB

18 mln Active Retail

clients

1 mln Active SMB

clients

TOP-1 Customer loyalty

and satisfaction

>50% Digital sales

in Retail

• DIGITALISATION OF CLIENT EXPERIENCE

RETAIL

MSB

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14


BUILD-UP OF TRADITIONAL BANKING PLATFORM: MIX OF MERGERS

AND ORGANIC GROWTH

ORGANIC GROWTH

M&A DEALS

GUTA BANK

PROMSTROIBANK

LETO BANK LEGAL MERGER WITH

VTB BANK (MAY’16)

LAUNCH OF POST BANK

STARTING FROM 30

SEPTEMBER 2018,

POST BANK IS

ACCOUNTED AS JV

LEGAL MERGER WITH

VTB BANK (JAN’18)

VTB ACQUIRED

CONTROLLING STAKE

IN VOZROZHDENIE

BANK (OCT’18)

VTB ACQUIRED CONTROLLING

STAKES IN WEST SIBERIAN

COMMERCIAL BANK AND

SAROVBUSINESSBANK

(JAN’19)

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15


VTB GROUP TRANSFORMATION

1. DIGITALISATION 2. TECHNOLOGIES

SETTLEMENTS

AUTHENTICATION

& BIOMETRICS TRANSACTIONS

AGILE

AI &

ROBOTISATION

COMMUNICATION

OPEN API

OTHER

DevSecOps VTB CLOUD

DATA

MONETIZATION

3. ECOSYSTEM

CLIENT

BECOMING NEW ELEMENT OF CLIENT

LIFESTYLE

RESTRUCTURING TRADITIONAL BANKING FUNCTIONS

TO CREATE AND ADOPT PRODUCTS AND SERVICES

TO VTB ECOSYSTEM

MAXIMISING SALES THROUGH DIGITAL

CHANNELS

LIFESTYLE

BANKING MOBILE

HOUSING

ECOSYSTEM

B2B

KEY ELEMENTS KEY

TECHNOLOGICAL

CHANGES

2019 2022

FISCAL

DATA

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16


FIRST STEPS IN ROLLING OVER VTB ECOSYSTEM

VTB

CLIENTS

PROVIDES ACCESS TO POPULAR CITY ONLINE

SERVICES

MARKETPLACES

► INTEGRATION WITH PORTAL OF

PROVIDERS (PUBLIC PROCUREMENT)

SINGLE SIGN ON

► VTB SMALL SIZE PROCUREMENT

(<1 MLN RUB)

PROCUREMENT

EXPORT MANAGER

SERVICE

ACCELERATION WITH

RUSSIAN EXPORT CENTER

SEIZED PROPETY SALE

FISCAL DATA OPERATOR

MOBILE OPERATOR

DIGITAL PLATFORM

FOR FULL CYCLE

OF REAL ESTATE

SERVISES

SITE RE-BRANDING

DOMYLAND

PROPTECH SOLUTION

MARKET PLACE FOR

DIGITAL MORTGAGE

SERVICE

BICYCLE RENTAL 5MLN RENTS IN 2019

MULTI-BONUS LOYALTY PROGRAMME

MY SMART CITY APP

Komissi

Square

meter

MOBILE

BIG DATA PLATFORM

APP INCLUDES THE TOOLS NECESSARY

FOR A FULL WORKFLOW: ACCOUNTING,

TAX, CONSULTING SERVICES

DIGITAL ACCOUNTING FOR SME

Cifra

MORE THAN 30

PARTNERSHIPS

INCLUDING

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17

BUSINESS OVERVIEW

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18


1,463 1,538

1,614 1,820

3,365 3,654 1,481 1,529

8,096 8,850

2006 1,380

2010 4,291

2015 13,645

2019 15,516

31-Jul-20 16,938

MEASURED BUSINESS GROWTH WITH FOCUS ON PRIORITISED

SEGMENTS

▲▼ - ytd

RUB BN

ASSETS

CASH

SHORT-TERM FUNDS

MANDATORY RESERVES SECURITIES

DUE FROM NET LOANS OTHER ASSETS

RETAIL CORPORATE

▲9.2%

LIABILITIES

15,216 31-Jul-20

13,863 2019

12,188 2015

3,713 2010

1,196 2006

OTHER LIABILITIES SUBORDINATED

DEBT

SECURITIES

ISSUED DUE TO

AND OBF CUSTOMER DEPOSITS

RETAIL CORPORATE

LOANS TO INDIVIDUALS INDUSTRY

▲6%

LOANS TO LE

MSB

▲9.8%

▲9% ▲9%

INDUSTRY

▲9%

MORTGAGES ▲13%

CONSUMER LOANS

▲5%

▲3%

31-Dec-19 31-Jul-20 31-Dec-19 31-Jul-20

8%

7%

5%

9%

8%

17%

11%

5%

5%

5%

13%

8%

10%

4%

5%

5%

12%

13%

20%

20%

51%

53%

56%

49%

49%

6%

9%

11%

13%

13%

3%

6%

2%

2%

2%

26%

16%

5%

2%

2%

27%

16%

27%

11%

11%

16%

20%

24%

36%

35%

28%

39%

36%

43%

44%

3%

6%

6%

6%

<1%

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19



54 123

182 201

2016 2017 2018 2019

3.7% 4.1% 3.9% 3.4%

2016 2017 2018 2019

FINANCIAL PERFORMANCE 7M’2020

NET PROFIT 43.0

ROE

▲125% ▲48% ▲11% Y-O-Y

GROWTH ▲712% ▼56%

15.6% 15.3% 12.6% 17.8%

NIM

FEES /

OPERATING

INCOME

45.8% 44.0% 40.5% 41.6%

COR

CIR

1.5% 1.6% 1.6% 0.8%

2016 2017 2018 2019

NET PROFIT

▲▼ - yoy

RUB BN

3.8%

▲50bp

17.7%

▲130bp

2.2%

▲140bp

41.6%

▼370bp

4.3% 3.8%

8.5% 12.5% 12.8%

THE DATA, PRESENTED BELOW, HAVE BEEN

CALCULATED BASED ON THE OFFICIAL PUBLISHED

FINANCIAL REPORTS FOR EACH RESPECTIVE YEAR

(I. E. AS REPORTED)

NET

INTEREST

INCOME

NET FEE &

COMISSION

INCOME

OTHER

INCOME

NET

OPERATING

INCOME

PROVISION

CHARGE

STAFF &

ADMINISTRATIVE

EXPENSES

TAX

297.4

63.8

-

-162.6

-5.4

-150.2

361.2

▲22%

▲4%

▲13%

▲18%

▼100%

▲218%

▼660bp

2016 2017 2018 2019

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40

130

135

135

135

120

180

151

214

224

141

20


Bank Fees USD / mln % share

VTB Capital 41.8 28.9

2 Goldman Sachs 17.1 11.8

3 Citi 11.5 7.9

4 JP Morgan 8.3 5.7

5 Gazprombank 6.6 4.6

Source: Refinitiv Russia Investment Banking Review 1H’20

Bookrunner Deal value / USD mln % share # of deals

VTB Capital 4,195 19.9 67

2 Gazprombank 4,025 19.1 48

3 JP Morgan 1,931 9.2 11

4 Sberbank CIB 1,558 7.4 37

5 Credit Bank of Moscow 1,251 5.9 25

Source: Dealogic Russia Total DCM league tables 1H’20


VTB Capital 3,206 5.7 11

2 Goldman Sachs 2,863 5.1 4

3 Morgan Stanley 2,411 4.3 3

4 JP Morgan 1,643 2.9 3

5 Credit Suisse 1,579 2.8 1

Source: Refinitiv Emerging Markets M&A Review 1H’20

INVESTMENT BANKING IN RUSSIA DCM BOOKRUNNER IN RUSSIA AND CIS

VTB CAPITAL: BEST INVESTMENT BANK IN RUSSIA

Best Investment Bank

in Emerging Markets

(2018,2019,2020)


in Russia

(2010-2017, 2019)


in CEE (2013-2019)

Best Financial

Services in Russia

(2016-2019)

Best investment bank

in Russia

(2010-2019)

M&A BOOKRUNNER IN EASTERN EUROPE

#1 DCM bookrunner

in Eastern Europe

(1H’2020)

Best investment Bank

in Russia

(2019)

LEADING POSITION:


1 VTB Capital 3,217 8 11

2 Credit Suisse 1,579 4 1

3 Citi 1,579 4 1

4 Goldman Sachs 644 2 2

5 UBS 298 1 1

M&A IN RUSSIA

Source: Dealogic Russia Completed M&A league tables 1H’20

#1 Research Team “Transport”

category, EMEA

(2016-2019)

#1 Research Team

“Electric utilities” category, EMEA

(2019)

0

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APPENDIX: FINANCIALS

0

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68%

79%

32%

21%

31-Dec-14

30-Jun-20

53%

69%

47%

31%

31-Dec-14

30-Jun-20

79% 81% 77% 75% 74% 74% 71% 70%

21% 19% 23% 25% 26%

26% 29% 30%

9,150 10,110 9,487 9,773 9,841

11,424 11,462 11,947

31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 01-Jan-18 31-Dec-18 31-Dec-19 30-Jun-20

IFRS 9 NET CUSTOMER

LOANS /

CUSTOMER

DEPOSITS (LDR)

LOANS AND ADVANCES TO CUSTOMERS BY INDUSTRY

LOAN PORTFOLIO AND CUSTOMER DEPOSITS

CUSTOMER DEPOSITS

OIL AND GAS

METALS

MANUFACTURING

GOVERNMENT BODIES

TRANSPORT

TRADE AND COMMERCE

ENERGY

FINANCE

BUILDING CONSTRUCTION

TELECOMMUNICATIONS

AND MEDIA

CHEMICALS BY CURRENCY

NET LOANS CUSTOMER DEPOSITS

OTHER

INDIVIDUALS

31-Dec-14

30-Jun-20

FX

RUB

INDIVIDUALS

LEGAL ENTITIES

LDR RUB

195%

65%

101%

LDR FX

107%

▲▼ - ytd

RUB BN

▲4%

IFRS 9

▲8%

GROSS LOANS

▲7%

▲3%

150.6% 129.9%

120.5% 100.3% 99.5% 102.8% 98.2% 94.1%

62% 60% 59% 60% 60% 58% 54% 56% 38%

40% 41%

40% 40% 42% 46%

44% 5,669

7,267 7,347 9,145 9,145

10,404 10,974 11,852

31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 01-Jan-18 31-Dec-18 31-Dec-19 30-Jun-20

▲5%

▲11%

30%

12%

9%

7%

7%

6%

5%

4%

4%

4%

3%

2%

7%

21%

11%

9%

9%

5%

10%

7%

2%

7%

5%

5%

6%

3%

YTD w/o FX

12,504 9.1% 4.3%

7M’20 update

YTD w/o FX

12,110 10.3% 4.3%

7M’20 update

0

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56% 54

58

60

60

59

60

62

67

63

50%

67%

75%

77%

76%

75%

75%

74%

77%

73%

50%

33%

25%

23%

24%

25%

25%

26%

23%

27%

311

1,511

3,520

4,384

4,342

5,523

5,523

5,996

5,933

6,584

680

2,518

7,205

8,150

7,311

7,287

7,307

8,435

8,096

8,347

IFRS 9

VTB BUSINESS WITH LEGAL ENTITIES

17.6%

▼60bp

MARKET SHARE

SHARE IN TOTAL:

20.5%

▲3%

CURRENT TERM

CORPORATES

LOANS DEPOSITS

MARKET SHARE

▲11%

IFRS 9

▲6pp since 2006 ▲18pp since 2006

30-Jun-20

31-Dec-19

31-Dec-18

01-Jan-18

31-Dec-17

31-Dec-16

31-Dec-15

31-Dec-14

31-Dec-10

31-Dec-06

LOANS DEPOSITS

▲▼ - ytd

RUB BN


▲30bp

COST OF DEPOSITS OF LE

YIELD ON LOANS TO LE

3.8%

7.0%

6M’20

30-Jun-20

31-Dec-19

31-Dec-18

01-Jan-18

31-Dec-17

31-Dec-16

31-Dec-15

31-Dec-14

31-Dec-10

31-Dec-06

30-Jun-20

31-Dec-19

31-Dec-18

01-Jan-18

31-Dec-17

31-Dec-16

31-Dec-15

31-Dec-14

31-Dec-10

31-Dec-06

70% 71

74

74

75

77

81

79

82

92

7.6% 7.7% 7.5% 7.5% 7.1% 7.0%

5.1% 5.2% 4.8% 4.8% 4.0%

3.5%

1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20

YTD w/o FX

8,850 9.3% 2.7%

7M’20 update

YTD w/o FX

6,723 13.3% 7.8%

7M’20 update

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38%

40%

41%

45%

46%

44%

43%

48%

48%

50%

4%

10%

7%

5%

4%

4%

4%

4%

4%

3%

6%

6%

6%

5%

5%

4%

4%

4%

58%

50%

46%

44%

44%

47%

48%

44%

44%

43%

62

542

1,945

1,960

2,176

2,486

2,534

2,989

3,365

3,600

11.9% 11.8% 11.9% 11.8% 11.4% 11.1%

4.8% 4.9% 5.0% 4.8% 4.4% 3.4%

1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20

76%

81%

82%

84%

79%

75%

75%

75%

72%

64%

24%

19%

18%

16%

21%

25%

25%

25%

28%

36%

180

748

2,149

2,883

3,004

3,622

3,622

4,408

5,042

5,269

LOANS DEPOSITS

IFRS 9

VTB BUSINESS WITH INDIVIDUALS

18.0% MARKET SHARE

SHARE IN TOTAL:

▼10bp

▲7%

RETAIL

LOANS DEPOSITS

MARKET SHARE

▲5%

14.9%

CURRENT TERM

CASH & OTHER

MORTGAGE

CAR LOANS

CARDS

IN 2006 AND 2010 CARDS ARE INCLUDED IN “OTHER”

▲15pp since 2006 ▲10pp since 2006

▲▼ - ytd

RUB BN

IFRS 9

COST OF DEPOSITS OF IND

YIELD ON LOANS TO IND

3.9%

11.3%

6M’20


30-Jun-20

31-Dec-19

31-Dec-18

01-Jan-18

31-Dec-17

31-Dec-16

31-Dec-15

31-Dec-14

31-Dec-10

31-Dec-06

▲50bp

30-Jun-20

31-Dec-19

31-Dec-18

01-Jan-18

31-Dec-17

31-Dec-16

31-Dec-15

31-Dec-14

31-Dec-10

31-Dec-06

30-Jun-20

31-Dec-19

31-Dec-18

01-Jan-18

31-Dec-17

31-Dec-16

31-Dec-15

31-Dec-14

31-Dec-10

31-Dec-06

30% 29

26

26

25

23

19

21

18

8

44% 46

42

40

40

41

40

38

33

37

YTD w/o FX

3,654 8.6% 8.2%

7M’20 update

YTD w/o FX

5,387 6.8% 0.2%

7M’20 update

0

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110.8% 112.4%

128.7% 128.6% 131.7%

30-Jun-19 30-Sep-19 31-Dec-19 31-Mar-20 30-Jun-20

6.3% 6.1% 6.0% 6.4% 6.7%

657 650 534 596 605


5.7% 5.5% 4.7% 4.9% 5.1%

LOAN BOOK QUALITY

LOAN WRITE-OFFs

NPLs (90+)

NPL RATIO

ALLOWANCE FOR LOAN

IMPAIRMENT / TOTAL GROSS

LOANS

The Group defines non-performing

loans (NPL) as lifetime expected

credit losses (ECL) credit-impaired

loans with contractual principal and

or interest payments overdue more

than 90 days and purchased or

originated credit impaired (POCI)

loans with principal and or interest

payments becoming overdue more

than 90 days after the date of initial

recognition.

PROVISION FOR LOAN IMPAIRMENT

COVERAGE RATIO

▲▼ - ytd

RUB BN

▲9% ▼8%

▲21pp

FY’19: 165.5

▲4% ▲2%

▲320bp

8.5

46.5 37.2

73.3

6.2 4.6

1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20

6M’20: 10.8

728 731 687 766 797


YTD

6.9% 90bp

RUB 861 bn 25.3%

7M’20 update

YTD

5.0% 30bp

RUB 631bn 18.1%

7M’20 update

YTD

136.5% 1pp

7M’20 update

0

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VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & TRANSFORMATION APPENDIX MACRO VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & TRANSFORMATION APPENDIX MACRO

96.7% 96.0%

2.0% 2.8%

1.3%

1.2% 11,462

11,947

31-Dec-19 30-Jun-20

39.4

34.2

23.9

6M'20

8.2% 8.2%

14.6% 16.0%

77.2% 75.8%

11,080 11,471

GROSS LOAN PORTFOLIO BREAKDOWN UNDER IFRS 9

LOANS AT AMORTISED COST

BY ECL STAGES

PASS

DOUBTFUL

NPL

▲4%

STAGE 1

STAGE 2

STAGE 3

+ POCI

WATCH

SUB-STANDARD

PROVISION

CHARGE

12 MONTH ECL

LECL

LECL CREDIT-

IMPAIRED

AND PURCHASED

OR ORIGINATED

CREDIT IMPAIRED

ALLOWANCE

RATIO

LOAN PORTFOLIO

▲▼ - ytd

RUB BN

FV THROUGH

P&L

FV THROUGH

OCI

AMORTISED

COST

97.6

1.1%

9.3%

56.6% 31-Dec-19 30-Jun-20

92%

6% 2%

18%

14% 68%

33%

4%

63%

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1.7% 1.7%

1.0%

2.0%

3.0%

1.7%

2.5%

0.9% 0.8% 0.4%

1.3% 1.4%

0.5%

1.3%

2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 6M'19 6M'20

18.0 15.9 8.3 26.0 28.2

18.5

54.2 13.4 14.0 8.4

17.1 26.6

27.1

43.7

31.4 29.9

16.7

43.1 54.8

45.6

97.9

2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 6M'19 6M'20

PROVISION CHARGE AND COST OF RISK

PROVISION CHARGE FOR IMPAIRMENT OF LOANS


LOANS TO LEGAL ENTITIES

COST OF RISK BREAKDOWN

COST OF RISK


LOANS TO LEGAL ENTITIES

Provision charge for credit

losses divided by average

gross loans and advances

to customers.

▲▼ - yoy

RUB BN

▲75%

LE ▲50bp

IND ▲130bp

1.1% 1.0% 0.6%

1.5% 1.9%

0.8%

1.7%

▲115%

LE ▲80bp

IND ▲80bp

y-o-y

1.5% 80bp

RUB 147.5bn 193.2%

7M’20 update

0

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5.1% 4.9% 4.8% 4.2% 3.5%

5.0% 3.8%

5.3% 5.2% 4.9% 4.3%

3.8%

5.3%

4.0%

2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 6M'19 6M'20

8.9% 8.8% 8.8% 8.4% 8.2%

8.8% 8.3%

8.5% 8.5% 8.4% 7.9% 7.7%

8.4%

7.8%

3.3% 3.3% 3.5% 3.6% 3.9% 3.3% 3.7%

109 110 117 120 132

214 252

2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 6M'19 6M'20

NET INTEREST INCOME

NET INTEREST INCOME AND NIM

YIELD ON TOTAL INTEREST

EARNING ASSETS

YIELD ON CUSTOMER

LOANS

COST OF TOTAL INTEREST

BEARING LIABILITIES

AVERAGE YIELDS AND COST OF FUNDS

COST OF CUSTOMER

DEPOSITS

▲▼ - yoy

RUB BN

▲21%

NIM ▲18%

y-o-y

3.8% 50bp

RUB 297.4bn 18.2%

7M’20 update

0

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65% 58% 47%

51% 52%

63% 52% 6% 8%

5% 7% 7%

7% 7%

7% 7%

17%

16% 13%

7% 15%

17% 20%

25%

23% 23%

18%

23%

5% 7%

6%

3% 5%

5%

3%

40.4 37.1

57.9

43.3 38.5

71.3

81.8

2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 6M'19 6M'20

26.0 22.4

41.2

28.0 24.9

44.9 52.9

2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 6M'19 6M'20

FEE AND COMMISSION INCOME BREAKDOWN

NET FEE AND COMMISSION

INCOME

NET FEE AND COMMISSION

INCOME / AVG ASSETS (NET)

NET FEE AND COMMISSION INCOME

FEE AND COMMISSION INCOME ▲▼ - yoy

RUB BN

▼5%

▼4%

INSURANCE PRODUCTS

DISTRIBUTION AND OTHER

AGENCY SERVICES

SETTLEMENT, TRADE

FINANCE AND CASH

TRANSACTIONS

OTHER

GUARANTEES AND OTHER

CREDIT RELATED

COMMITMENTS

OPERATIONS WITH SECURITIES

AND ON CAPITAL MARKETS

▲15%

0.7% 0.6%

1.0% 0.7% 0.6% 0.6% 0.7%

▲18%

y-o-y

0.7% 10bp

RUB 63.8bn 21.5%

7M’20 update

0

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COMPONENTS OF OTHER INCOME ▲▼ - YoY

RUB BLN

6.9

-19.3

-17.9

-8.8 6.2 2.9 0.1

-29.9

9.3

24.5 -53.0

-8.0 10.1 2.9 -0.2 -14.4

-2.6 -29.9

11.3 -14.4

6M'19 6М'20

Financial

instruments

FX and

precious

metals

Non-banking

income

Revenues less

expenses from

pension activity

Other Total

▼64%

▼103%

▼36Х

RUB 20.5 BN - REVALUATION

OF STRUCTURAL OCP

▼227% RUB -55.2 BN - REVALUATON OF NON-CORE ASSETS

▲2Х

▼5% ▲102%

Share in profit of

associates and

joint ventures

Gains from

disposal of

subsidiaries and

associates

▲28Х

▲1,050% 2Q’20

6M’20

▼44%

RUB -15.3 BN -

REVALUATION OF

STRUCTURAL OCP

▲66%

▲21Х

▲54% ▲138% ▲100% ▼90%

RUB -17.4 BN - REVALUATON

OF NON-CORE ASSETS

2Q’19 2Q’20

y-o-y

RUB 0bn -100%

7M’20 update

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58.5 59.1 59.6 59.4 59.3 58.3 59.4

23.1 23.6 23.3 22.5 22.1 22.0 22.3

81.5 82.8 82.9 81.9 81.4 80.4 81.7

2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 6M'19 6M'20

39.5 37.6 40.2 40.9 40.4

25.4 21.1 29.7 23.2 24.6

64.9 58.7

69.9 64.1 65.0

2Q'19 3Q'19 4Q'19 1Q'20 2Q'20

80.0 81.3

45.6 47.8

125.6 129.1

6M'19 6M'20

STAFF AND ADMINISTRATIVE EXPENSES

CIR

COSTS/AVG. ASSETS

AVERAGE NUMBER OF EMPLOYEES (THSD)

STAFF COSTS INCLUDING

PENSIONS

ADMINISTRATIVE

EXPENSES

VTB BANK

OTHER COMPANIES

OF VTB GROUP

▲▼ - yoy

RUB BN

flat

flat

1.7% 1.5% 1.8% 1.6% 1.6% 1.7% 1.6%

48.9% 37.8% 37.7% 39.3% 51.1% 46.6% 44.4%

▲3%

▲2%

y-o-y

45.9% -80bp

1.6% -10bp

RUB 110.1bn 7.3%

7M’20 update

0

159

223

10

41

115

173

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6M’20 6M’19 Change 2Q’20 2Q’19 Change

Net interest income 252.0 213.6 18.0% 132.3 109.4 20.9%

Net fee and commission income 52.9 44.9 17.8% 24.9 26.0 -4.2%

Net other income -14.4 11.3 -227.4% -29.9 -2.6 1,050.0%

Operating income before provisions 290.5 269.8 7.7% 127.3 132.8 -4.1%

Provision charge for credit losses and other provisions -113.9 -45.4 150.9% -68.8 -30.2 127.8%

Staff costs and administrative expenses -129.1 -125.6 2.8% -65.0 -64.9 0.2%

Profit before tax 47.5 98.8 -51.9% -6.5 37.7 -117.2%

Income tax expense -5.6 -22.0 -74.5% 8.6 -7.4 -216.2%

Net profit 41.9 76.8 -45.4% 2.1 30.3 -93.1%

INCOME STATEMENT KEY INDICATORS

KEY FINANCIAL RATIOS

RUB BN

6M’20 6M’19 Change 2Q’20 2Q’19 Change

NIM 3.7% 3.3% 40 bp 3.9% 3.3% 60 bp

CoR 1.7% 0.8% 90 bp 1.9% 1.1% 80 bp

Cost / Assets 1.6% 1.7% -10 bp 1.6% 1.7% -10 bp

CIR 44.4% 46.6% -220 bp 51.1% 48.9% 220 bp

ROE 4.9% 10.1% -520 bp 0.5% 7.9% -740 bp

VTB GROUP FINANCIAL HIGHLIGHTS: P&L AND KEY RATIOS

6M’20 IFRS consolidated

financial

statements

7M’20 IFRS unaudited financial

statements

7M’20 7M’19 Change

297.4 251.6 18.2%

63.8 52.5 21.5%

- 15.8 -100.0%

361.2 319.9 12.9%

-162.6 -51.1 218.2%

-150.2 -144.8 3.7%

48.4 124.0 -61.0%

-5.4 -26.7 -79.8%

43.0 97.3 -55.8%

7M’20 7M’19 Change

3.8% 3.3% 50 bp

2.2% 0.8% 140 bp

1.6% 1.7% -10 bp

41.6% 45.3% -370 bp

4.3% 10.9% -660 bp

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BALANCE SHEET KEY INDICATORS

KEY ASSET QUALITY RATIOS

(1) The Group defines non-

performing loans (NPL) as

lifetime expected credit losses

(ECL) credit-impaired loans with

contractual principal and or

interest payments overdue more

than 90 days and purchased or

originated credit impaired

(POCI) loans with principal and

or interest payments becoming

overdue more than 90 days after

the date of initial recognition.

RUB BN

30-Jun-20 31-Mar-20 Change 31-Dec-19 YTD

NPL ratio (1) 5.1% 4.9% 20 bp 4.7% 40 bp

LLR ratio 6.7% 6.4% 30 bp 6.0% 70 bp

Coverage ratio 131.7% 128.6% 310 bp 128.7% 300 bp

30-Jun-20 31-Mar-20 Change 31-Dec-19 YTD

Gross loan portfolio 11,947.2 12,058.6 -0.9% 11,461.5 4.2%

Loans to legal entities 8,347.0 8,565.4 -2.5% 8,096.2 3.1%

Loans to individuals 3,600.2 3,493.2 3.1% 3,365.3 7.0%

Total assets 16,346.9 16,588.7 -1.5% 15,516.1 5.4%

Customer deposits 11,852.4 11,819.7 0.3% 10,974.2 8.0%

Deposits of legal entities 6,583.5 6,408.2 2.7% 5,932.6 11.0%

Deposits of individuals 5,268.9 5,411.5 -2.6% 5,041.6 4.5%

Total liabilities 14,637.6 14,860.4 -1.5% 13,862.8 5.6%

Total shareholders' equity 1,709.3 1,728.3 -1.1% 1,653.3 3.4%

VTB GROUP FINANCIAL HIGHLIGHTS: BALANCE SHEET

6M’20 IFRS consolidated

financial

statements

7M’20 IFRS unaudited financial

statements

31-Jul-20 YTD

12 504.0 9.1%

8 850.0 9.3%

3 654.0 8.6%

16 938.3 9.2%

12 109.8 10.3%

6 723.3 13.3%

5 386.5 6.8%

15 215.8 9.8%

1 722.5 4.2%

31-Jul-20 YTD

5.0% 30 bp

6.9% 90bp

136.5% 780 bp

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INTERNATIONAL DEBT MATURITY PROFILE (2) USD MLN

Borrower Currency Amount outstanding

(mln) Instrument Maturity Date/Put or Call Option Coupon ISIN

2020

VTB USD 948 Series 10 EMTN 2 October 2020 6.551% XS0548633659

2022

VTB USD 1,500 Series 21 EMTN 2 Subordinated Debt October 2022 6.95% XS0842078536

2024

VTB CHF 350 Series 4 EMTN 3 Subordinated Debt October 2024 (call option) 5.0% CH0248531110

2035

VTB USD 31 Series 6 EMTN 1 June 2035 6.25% XS0223715920

Perpetual

VTB USD 2,250 Tier 1 Perpetual Eurobond (call option) Dec 2022 (call option)(1) 9.5% XS0810596832

(1) Fixed until the first call date, then reset on 6-Dec -22 and every 10th year thereafter.

VTB GROUP PUBLIC DEBT AND HYBRID CAPITAL INSTRUMENTS

827

1,339

251 25

2020 2022 2024 2035

USD

CHF

(2) Net of bought back public debt. exchange rates published by the CBR as of September 04, 2020. In addition to international debt, VTB Group currently has RUB 122.2 bln domestic bonds (as of September 04, 2020).

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Investor Relations

Tel: +7 (495) 775-71-39

e-mail: [email protected]

Documents

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