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Investor presentation june-2014_ru
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Bank Vozrozhdenie Promising SME and retail local franchise
Investor presentation June 2014
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Agenda
Key facts
Business model
Business overview
Recent IFRS results
Investment summary
4
Over 20 years of successful development
1991-1992 1993-1995
Establishment
and banking
license
34 branches
in the Moscow
Oblast
1996-1998 2003-2004 1999-2002 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
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 Region
… 143 Office
… 874 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
Moscow Oblast is a home territory with
historically strong market position
21 region of presence. Focus
on the most perspective
South and North-West
Branches Sub branches Retail offices
34 43 9 86
Total
As of 01.06.2014
549 ATMs – every town is under coverage
19 36 2 57
Total
325 ATMs
Retail offices Branches Sub branches
Distribution network
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
210,836 mln
171,606 mln
153,095 mln
428 mln
22,793 mln
1,700,000
63,400
6,066
143
874
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 April 01, 2014
8
Ba3/D-/NP, stable
BB-/ruAA-, negative
MICEX Financial Index
A1 MICEX
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
9
Business model
10
Strategy
Focus on core banking
products and personal service
11
62% 61% 64% 72% 71%
38% 39% 36% 28% 29%
3 490 3 667
3 808 3 682 3 645
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Non-interest income Net interest income
131 130 133 126 128
34 37 41 43 44
164 167 173
168 172
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 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
26%
74%
RUB bln
29%
71%
Business model Business based on relationships… … gives solid non-interest income
Loan portfolio development… … funded by customer accounts
110 113 116 112 109
53 56 55 50
44
163 169 171
162 153
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Interest-bearing DepositsInterest-free Current accounts
12
12 13 13 13 12
149 150 155 156 158
11 12 14 12 7 6,4 1 1
1 1 1 37 40 33 29 26
210 216 217 211 211
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Cash andequivalents
Due from banks
Invest. securitiespledged under repos
Securities
Net loans
Other assets
IEA 80%
IEA 82%
Assets and liabilities
Interest-earning assets grew to 82% of balance sheet Diversified funding structure
Liquid assets share at a comfortable level L/D ratio up as client funds replaced by CBR financing
RUB bln RUB bln
RUB bln
21 21 22 22 23 7 7 5 4 4 3 1 1 4 1
7 9 9 10 14
163 169 171 162 153
5,5 8
8 9 9 10 210 216 217 211 211
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Due to other banks
Borrowed funds fromrepos with CBR
Client funds
Securities issued
Other liabilities
Subordinated loans
Equity
164 167 173 168 172 163 169 171 162 153
101% 99% 102% 104%
112%
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Gross loans Customer funds L/D
29 26
5 5
6,9
1,7
6,4
19,4% 18,3%
Q4 2013 Q1 2014
Securities pledged underrepos with CBR
Investment securitiesavailable for sale
Trading securities
Cash and cash equivalents
13
26 26 25 24 20
35 36 37 31
29
60 62 62
55
49
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Corporate deposits Corporate accounts
Customer funds - corporate
Corporate client funds continues dropping… … but not due to clients loss
RUB bln
Key points
30,7 31,9 30,4 26,4 26,2
33 32 33 32 32
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Average balances on corporate current accounts, Rub mln
Number of accounts, thousand
FX structure
91%
7%
2%
Rub 48.6
billion
Rouble
US Dollar
Euro
We are reluctant to raise corporate deposits, a volatile
funding source, due to fierce competition and heightened
market rates.
A decline in corporate accounts resulted from lower
average balances across the whole client base that
reflected customers’ search for diversification and growing
needs of their own businesses in working capital.
Share of FX corporate funds grew from 7% to 9 % QoQ on
the devaluation effect.
-12.3%
14
Customer funds - retail
Retail client funds Credit turnover on card accounts growing
RUB bln
84 87 91 87 89
18 20 18 19 16
103 107 109 106 104
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Retail deposits Balances on card accounts RUB bln
Key points
73%
19%
8%
Rub 104,5
billion
Rouble
US Dollar
Euro
0
5
10
15
20
25
30
FX structure
2012 2013 2014
RUB bln
Q1 2012
38.9
Q1 2013
40.3
Q1 2014
41.4
The decline in retail funds was reasoned by seasonal
outflow from card accounts during long New Year and
Christmas holidays. However, the credit turnover in Q1
2014 improved by 2,7% YoY.
FX deposits were in clients’ demand with the proportion in
total retail funds growing to 27%.
Excluding revaluation effect, retail FX deposits grew by
3,4%.
-1.5%
15
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
16
Loan portfolio
Corporate portfolio free of uncollectable NPLs Retail portfolio with mortgages leading the way
RUB bln RUB bln
46,1 50,8 52,0 51,4 51,6
83,4 78,4 80,0 73,3 75,6
1,2 0,9 0,7 0,9 0,5
131 130,2 132,6
125,6 127,8
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Large corporates SMEs Administrations
59%
+1,7%
22,8 24,9 27,6 29,5 30,6
8,7 9,8
10,7 11,0 11,2
2,1 2,1
2,2 2,1 2,1
33,6 36,8
40,5 42,6 43,9
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
MortgagesConsumer and car loansCredit cards
The 3rd mortgage
securitization
deal on RUB3,45
billion was
successfully
closed in March
2014
70%
+2,8%
FX structure *
90%
7%
3%
Rub 171,6
billion
Rouble
US Dollar
Euro
As of April 1, 2014
20%
41% 18%
10%
11%
Moscow Other regions
South
Regions
North-West
Regions
Moscow Region
As of April 1, 2014
Rub 171,6
billion
Regional diversification of loan portfolio *
*Loan portfolio before provisions for impairment
17
28,6%
18,4%
25,4% 27,6%
up to 90 days 91-180 days 181-365 days > 1 year
Corporate portfolio
RUB bln
72,4%
*as of April 1, 2014
… and regional diversification …maintaining industry…
Corporate loan book Credit policy sticks to reliable collateral… ….providing mostly working capital…
37%
0% 24%
1%
11%
6%
4%
8%
8%
Construction
Manufacturing Agriculture
Wholesale &
retail trade Administrations
Other
Transport
Real estate
RUB
127.8 bln
*as of April 1, 2014
15%
39%
25%
13%
9%
Moscow
Oblast
Moscow
Other regions
South regions
North-West
regions
RUB
127.8 bln
12%
2%
21% 44%
21%
RUB
127.8 bln
Real estate
Uncollateralized loans
& Other collateral
Equipment & vehicle
Government
guarantees
Guarantees
*as of April 1, 2014
*as of April 1, 2014
18
Retail lending – promising segment
5
10
15
20
25
01.05.11 01.11.11 01.05.12 01.11.12 01.05.13 01.11.13 01.05.14
Consumer loans, RUB
Mortgages, RUB
Credit cards, RUB
0,8% 1,6% 1,9%
95,8%
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
–management 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 April 1, 2014
Retail loans maturity Retail loan book growth
Rates on retail loans Mortgage securitization as a source of long-term funding for loan portfolio expansion
66% 68% 68% 67% 68%
27% 26%
26% 27% 27%
7% 6%
6% 6% 5%
33,6 36,8
40,5 42,6
43,9
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 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
8.95% 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
+3%
19
acquiring
Visa and Mastercard
self-service
Card business – sales force of retail business
Q2 2013 Q3 2013 Q4 2013 Q1 2014
Payrolls 14,200 14,760 15,040 15,040
Debit cards 1,331,515 1,333,679 1,347,461 1,273,089
Credit
cards 50,470 54,674 64,462 70,306
ATMs 844 854 884 870
Corporate
clients
Retail
clients
- Payrolls
- Acquiring
- Self-service transactions via ATMs, Internet-bank, mobile bank - Credit cards
70% 16%
84%
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 19,080 installed “Internet-client”
systems and 15,040 payrolls
- Offering cards to existing corporate clients: credit cards
for owners, top and mid-level managers and specialists,
debit cards for personnel
- Pushing cross-sales within retail customer segment
30%
23%
33%
10% 5%
1
cash operations
payrolls
Key points …developing anchor card product - payrolls
…generates strong fee income Business strategy…
* as of April 1, 2014
- Corporate cards
20
Risk management
21
Sound position on capital, liquidity and market risks Healthy capital structure
FX structure
Balance sheet maturity breakdown
Interest rate risk
44,8 46,6
34,6
71,9
63,2
32,1 33,9
58,2
Demand and lessthan 1 month
From 1 to 6months
From 6 to 12months
More than 1 year
Assets
Liabilities
RUB bln
29,4
46,3
53,4 52,3
62,9
32,1 33,9
58,2
Demand and lessthan 1 month
From 1 to 6months
From 6 to 12months
More than 1 year
Interest-earning assets
Interest-bearing liabilities
RUB bln
82%
17
5
15
18%
Assets
LoansDue from banks&SecuritiesCash&Other assets
82% 33
4 1
18%
Liabilities
Deposits
Due to banks&Securities
Other liabilities
*as of April 1, 2014
*as of April 1, 2014 *as of April 1, 2014
11,9% 11,7% 11,4% 12,0%
8,8% 9,7%
14,9% 14,6% 13,2%
13,8%
11,2% 11,6%
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q4 2013 Q1 2014
Tier 1Tier 1 + Tier 2
Total regulatory capital (Н1.0)
Common equity Tier 1 (Н1.1)
Basel I
Basel III
22
7 772 7 939 8 671 3 518 3 882
9,8% 10,6%
11,1%
5,3% 5,3% 9,2% 10,0% 10,8%
4,7% 5,1%
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
SMEs
8 098 8 229 8 135 7 517 7 517
13,3% 14,1%
15,2%
14,8% 16,1%
17,6% 16,2%
15,6%
14,6% 14,6%
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Large corporates
NPLs, Rub mln Provisions, % of total portfolio NPLs, % of total portfolio
1 009 1 102 1 810 1 350 1 730
3,6% 3,7% 3,2%
1,9% 2,0%
3,0% 3,0%
4,5% 3,2%
3,9%*
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Retail
Credit quality management
15
2,10%
0,57%
3,11% 3,12%
2,46% 2,10%
2,30%
2,90% 2,79% 2,46%
Q1 2014Q4 2013Q3 2013Q2 2013Q1 2013
Charges to provisions to avg gross loans, QoQ
Charges to provisions to avg gross loans, YtD
+Rub 553 mln new NPLs
-Rub 149 mln recoveries
-Rub 40 write-offs
+Rub 776 mln new NPLs
-Rub 396 mln recoveries
14 102 16 879 17 270 18 616 12 385 13 129
9,40%
9,54% 10,13% 10,46%
7,36% 7,70%
9,02%
10,28% 10,35% 10,75%
7,36% 7,65%
Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
NPLs, Rub mlnProvisions, % of total portfolioNPLs, % of total portfolio
*
no new NPLs
no recoveries
NPLs categorization
Annualized cost of risk NPLs 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
*2,0% of which is overdue less than 30 days
23
Credit quality
As of April 1, 2014 Large
corporates SMEs Mortgages Other
retail Total
Gross loans, including 51,573 76,178 30,622 13,233 171,606
Current loans 85.4% 94.9% 97.0% 93.9% 92.3%
Past-due but not impaired, including - 0.3% 2.4% 1.8% 0.7%
Less than 90 days - 0.1% 2.3% 1.7% 0.6%
Over 90 days - 0.2% 0.1% 0.1% 0.1%
Impaired, including 14.6% 4.8% 0.6% 4.3% 6.9%
Less than 90 days - 0.8% 0.1% 0.5% 0.4%
Over 90 days 14.6% 4.0% 0.5% 3.8% 6.5%
Total NPLs 14.6% 5.1% 3.0% 6.1% 7.7%
Provisions -16.1% -5.3% -0.9% -4.6% -7.7%
Net Loans 43,274 72,151 30,338 12,630 158,393
Provisions to
NPLs Ratio
101%
Provisions to
90 days+ NPLs
116%
Rescheduled
Loans
6.5%
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
Recent IFRS results
iPhone
25
Financial highlights
1Q14 4Q13 1Q13 YoY QoQ
Interest income 5,063 5,005 4,451 13.7% 1.2%
Interest expense (2,472) (2,359) (2,271) 8.9% 4.8%
Fee and commission income 1,101 1,148 1,222 -9.9% -4.1%
Fee and commission expense (185) (208) (115) 60.9% -11.1%
Other operating income 138 96 203 -32.0% 43.8%
Total operating income b.p. 3,645 3,682 3,490 4.4% -1.0%
Operating expense (2,187) (2,417) (2,091) 4.6% -9.5%
Provisions for loan impairment (893) (244) (985) -9.3% x3.7
Provisions for impairment of other assets (9) (121) 21 - -92.6%
Taxation (128) (176) (102) 25.5% -27.3%
Net profit 428 724 333 28.5% -40.9%
RUB mln
26
Latest achievements and great potential
Operating expense under control Operating efficiency
Operating model optimization project developments
Implementation
Centralization of:
- Internet-Bank client support
- Work with orders and requests of Federal Tax Service
- AML/FT control in Moscow region
- Controller function over processing retail “Regular Payments”
- FRAUD-analysis and payment controller function in 1/3 of branches completed by Jan’14
Automation of Internet-Client payments processing in Moscow region
Optimization of retail clients incoming payments processing
Uniting cashier and teller functions in Moscow region
Targeted sale of retail products June 2014
Online retail payment to any recipient
Work with orders and requests of Federal Bailiffs Service
Implementation
HR documentation handling Pilot
Security Administrators function Pilot
Accounts opening / electronic client files Pilot
Internal payrolls centralization Pilot
FX control Pilot
Fixed cash collection routs planning 2014
Credit middle and back office centralized 2014
Handling payroll services 2014
Establishing IT Help Desk/Service Desk 2014
59,9% 58,2% 56,0%
65,6%
60,0%
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Cost-to-Income ratio, %
1 299 1 321 1 279 1 360 1 300
326 328 336 404 436
161 176 181 203 170
305 310 338 450
281
2091 2135 2134 2417
2187
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 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
RUB mln
27
Target on NIM achieved
Net interest income evolution NIM decomposition
Recent changes of retail deposit rates Spread dynamics
4,5 4,6 4,9 5,0 5,1
-2,3 -2,4 -2,5 -2,4 -2,5
2,2 2,2 2,4 2,6 2,6
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
RUB bln
+0,15% -0,09% -0,17% +0,07%
Loans Deposits Other Base effect
4,2% 4,2% 4,5%
4,9% 4,9%
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
6,4% 6,4% 6,7% 6,9% 6,6%
11,2% 11,5% 11,8% 11,8% 11,9%
4,8% 5,0% 5,1% 4,9% 5,3%
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Spread (net)
Yields on earning assets (net)
Cost of funds6 Months
RUB
1,5-year
RUB
6 Months
FX
1,5-year
FX
Sep’13 - -0,25 pps
Feb’14 - - -0,5 pps –
-0,6 pps
-0,5 pps –
-0,6 pps
Mar’14 - +0,5 pps –
+1 pps
-0,1 pps –
-0,3 pps
-0,1 pps –
-0,3 pps
28
1 107 1 215 1 247
940 916 1 058
1 137 1 145 1 169
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Net fee incomeNet fee income with corrected gradual accruals of one-off reclass
2,2 2,2 2,4 2,6 2,6
1,1 1,2 1,2 0,9 0,9 0,20 0,22 0,14 0,10 0,14
-2,1 -2,1 -2,1 -2,4 -2,2
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Net interest income Net fees Other income Operating Expenses
Operating results
Key points Net fees structure
Stable operating result Net fees
RUB bln RUB mln
-1.0%
-21.6%
+4.4%
-13.4%
303 399 409
87 238
334 339 332
335 274
248 253 272
283 219
222 224 234
235 185
1107 1215 1247
940 916
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Settlements Cards
Cash transactions Other
RUB mln
-2.6%
-17.3%
The bank still maintains one of the highest among peers
shares of non-interest income in total revenues before
provisions – 29%
Diminishing F&C income was due to tougher market
competition on fee-generating products pricing, higher fees
of payment system and lower business activity
Remote channels is the key for further fees growth. In
March 2014 we launched full-blown mobile bank, updated
internet bank coming soon. First fruits are expected in
Autumn 2014
29
Efficiency indicators
Net profit Operating profit under provisions pressure
ROA, % ROE, %
26,7% 28,8%
31,2%
23,0% 25,8%
6,3% 3,5% 4,6%
13,2% 7,6%
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Operating profit before provisions and taxation / Average equity
ROE
2,7%
2,9% 3,1%
2,4% 2,8%
0,6% 0,4% 0,5%
1,4% 0,8%
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Operating profit before provisions and taxation / Assets
ROA
-1,0 -1,3 -1,3 -0,4 -0,9
1,4 1,5 1,7 1,3 1,5
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Provisions Operating profit before provisions and taxes
333 188 247
724
428
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Net profit RUB mln
-40.9%
+28.5%
30
Capital & Governance
31
28%
31% 41%
SHAREHOLDER STAKE IN EQUITY
Dmitry L. Orlov (Chairman of the Board of Directors) 30.70%
Otar L. Margania (Member of the Board of Directors) 18.65%
JPM International Consumer Holding Inc. 9.37%
Total 58.72%
As per MICEX data
H2 2011 H1 2012 H2 2012 H1 2013 H2 2013
Moscow Exchange 974,600 2,017,159 565,361 607,579 316,065
OTC 2,141,597 873,225 1,421,277 100,610 65,341
Total 3,119,452 2,894,069 1,993,938 712,089 381,406
Chairman
Other
management
Structure as of 13.05.2013
More than 8,000
individuals and 1,000
companies are among
our shareholders with
professional investors
owning more than 36%
Capital structure
Share price on MICEX Shareholding structure
Volumes of trading (shares) Major shareholders
Q1 2014 Price to
Book Value
(P/BV) 0.5
Q1 2014 Price to
Earnings
(P/E) 6.0
Other
0
360
720
1 080
1 440
1 800
1
10
100
1 000
10 000
100 000
1.6.13 1.8.13 1.10.13 1.12.13 1.2.14 1.4.14 1.6.14
Rubles Shares
Volume Last price
32
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 6 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
11 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
33
Over 20 years in Top-30 Russian banks amid
changing competitive landscape
Successfully passed through all crises (1993-94,1998,
2004, 2008)
Business model generating solid fees & commissions
(40% of revenue)
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 (11 members) with long-term
banking experience; the Board of Directors headed by
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 perspective
Moscow Oblast
Corporate business focused on high-profitable
SME, retail – on mortgages with growing consumer
lending share
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 A L L E N G E S H I G H S T A N 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
Still high potential credit risk
Competitive landscape for Russian private banks
Financial markets turbulence
Operating model optimization project realization
Investment Summary
34
Investor Relations contacts
Maria Gorbunova
IR specialist
Elena Mironova
Deputy head of IR
+7 495 620 90 71
http://www.vbank.ru/en/investors
www.slideshare.net/IRTeam
Follow us on Twitter:
www.twitter.com/vbank_IR
Download
presentation
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contacts
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for iPhone:
35
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
