FY 2011 IFRS Results
March 26, 2012
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Disclaimer
• This presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of BSPB orany of its subsidiaries in any jurisdiction or an inducement to enter into investment activity in any jurisdiction. Neither this presentation nor any part thereof, nor the fact of itsdistribution, shall form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The sole purpose of this presentation is toprovide background information to assist the recipient in obtaining a general understanding of the business of BSPB and its outlook..
• The information contained in this presentation has not been independently verified. The information in this presentation is subject to verification, completion and change withoutnotice and BSPB is under no obligation to update or keep current the information contained herein. Accordingly, no representation or warranty, express or implied, is made orgiven by or on behalf of BSPB, or any of its respective members, directors, officers or employees nor any other person accepts any liability whatsoever (in negligence orotherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith.
• This presentation contains "forward-looking statements" which include all statements other than statements of historical fact. Such forward-looking statements can often beidentified by words such as "plans", "expects", "intends", "estimates", "will", "may", "continue", "should" and similar expressions. Such forward-looking statements involve knownand unknown risks, uncertainties and other important factors beyond BSPB's control that could cause the actual results, performance or achievements of BSPB to be materiallydifferent from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerousassumptions regarding BSPB's present and future business strategies and the environment in which BSPB will operate in the future. By their nature, forward-looking statementsinvolve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements speak onlyas at the date as of which they are made, and neither BSPB nor any of its agents, employees or advisors intends or has any duty or obligation to supplement, amend, update orrevise any of the forward-looking statements contained herein to reflect any change in BSPB's expectations with regard thereto or any change in events, conditions orcircumstances on which any such statements are based. The information and opinions contained in this presentation are provided as at the date of this presentation and aresubject to change without notice.
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Summary – Bank Saint Petersburg at a glance
Regional leaderRegional leader
Focused on
North-West
Focused on
North-West
Selected financial
and operational results
Selected financial
and operational results
� A leading privately-owned universal bank in St. Petersburg and the Leningrad region
� St. Petersburg market share as at January 1, 2012*:
• Assets: 12.4%
• Loans: 14.5% - corporate, 5.4% - retail
• Deposits: 11.5% - corporate, 9.0% - retail
As at January 1, 2012
� Client base: over 1.1 million retail and 37.0 thousand corporate customers
� 37 branches and outlets (primarily in St. Petersburg), 504 ATMs
As at January 1, 2012:
� 16th largest bank by assets and 16th by retail deposits among the Russian banks**
� Ratings: Moody’s Ba3 (Stable outlook)
� Total assets: RUB 330.0 bn (USD 10.3 bn)
� Total capital: RUB 47.1 bn (USD 1.5 bn)
� Net income: RUB 5.9 bn (USD 182.8 mln)
� Cost/Income ratio: 36.1%
� ROAE: 17.2%
� Total capital adequacy: 13.9%
� 2,781 employees
* Association of North-West banks, Bank Saint Petersburg own estimates** Interfax
Overview of Key Financials
In RUB bn Jan. 1, 2011 Jan. 1, 2012 y-o-y Oct. 1, 2011 Jan. 1, 2012 q-o-q
Total assets 272.61 330.03 +21.1% 305.82 330.03 +7.9%
Gross Loans 202.25 231.26 +14.3% 223.70 231.26 +3.4%
Customer Deposits* 202.17 236.06 +16.8% 221.95 236.06 +6.4%
Total Capital 35.87 47.08 +31.3% 43.60 47.08 +8.0%
FY 2010 FY 2011 y-o-y 4Q 2010 3Q 2011 4Q 2011 y-o-y q-o-q
Net Interest Income 12.02 13.62 +13.3% 2.98 3.55 3.28 +10.3% -7.4%
Net Fee and Commission Income
1.72 2.05 +19.6% 0.53 0.53 0.59 +9.9% +11.9%
Revenues** 14.75 16.08 +9.0% 3.60 3.48 4.15 +16.4% +19.3%
Net Income 4.11 5.89 +43.0% 1.81 0.82 0.57 -68.6% -30.6%
FY 2010 FY 2011 y-o-y 4Q 2010 3Q 2011 4Q 2011 y-o-y q-o-q
Net Interest Margin 4.94% 4.78% -0.16 PP 4.67% 4.98% 4.38% -0.29 PP -0.60 PP
Cost/Income Ratio 30.03% 36.12% +6.09 PP 35.80% 45.85% 44.45% +8.65 PP -1.40 PP
ROAE 15.28% 17.16% +1.88 PP 26.03% 9.52% 5.93% -20.10 PP -3.59 PP
* Customer accounts are calculated as a sum of customer deposits and promissory notes and bills of exchange (other debt securities in issue)
** Revenues calculation: gains from investment securities available for sale are excluded from revenues as one-off
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Table of contents
I. Bank’s market position
II. Financial highlights and business overview
III. Recent developments and prospects
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Strong Franchise
Client base, thouMarket share in St. Petersburg
as at January 1, 2012: Retail banking**
Market share in St. Petersburg as at January 1, 2012: Corporate banking**
Loans, market share as at January 1, 2012*
* Central Bank of Russia, Association of North-West banks, Bank Saint Petersburg own estimates
** Starting with January 1, 2012, the Bank changes its own methodology of the market share calculation. It is based on the correction of the St. Petersburg market size according to the open sources data as well as the Bank’s own estimates. The figures for 2008-2012 are corrected accordingly.
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Table of contents
I. Bank’s market position
II. Financial highlights and business overview
III. Recent developments and prospects
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Financial Highlights, FY 2011
Assets, RUB, bn
Income dynamics, RUB, mln Income and expenses data*, RUB, mln
Capital, RUB, bn
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* Results calculation: the expenses /gains from recognition of loans granted at below market rates are included in provisions
Results for FY 2011
Cost/income and NIM, %
Net income dynamics, RUB, mln Comments
Operating expenses, RUB, mln
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• Record net income: RUB 5.9 bn
• ROAE recovery is going forward: 17.2%
• Cost/Income and NIM in line with mid-term
targets
Financial Highlights, 4Q 2011
Assets, RUB, bn
Income dynamics, RUB, mln Income and expenses data*, RUB, mln
Capital, RUB, bn
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* Results calculation: the expenses /gains from recognition of loans granted at below market rates are included in provisions
** Trading Income and revenues for 3Q revised: MICEX dividends (RUB 322 mln) are excluded from the P&L and posted directly to comprehensive income
Results for 4Q 2011
Cost/income and NIM, %
Net income dynamics, RUB, mln Comments
Operating expenses, RUB, mln
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• 4Q revenues supported by strong trading income
• 4Q increase in OPEX and fee & commission income is seasonal
• NIM, Provisions and ROAE are under pressure from the one-off credit event
Main Factors affected NIM in 4Q 2011
3Q 2011 NIM – 4.98%
4Q 2011 NIM – 4.38%
Average interest rate
Contribution to NIM change:
Loans and advances to customers - 40 bp
Trading securities portfolio + 15 bp
Due to banks - 20 bp
- 45 bp
Average balance
Contribution to NIM change:
Correspondent accounts in banks - 10 bp
Loans and advances to customers + 12 bp
Due to banks - 10 bp
Retail term deposits - 10 bp
- 18 ppOther factors + 3 bp
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• One-off credit event impact on NIM change is about -20 bp;
• Seasonal factor: every 4Q the growth of liabilities outpaces the growth of assets
• Funding costs growth
Interest Rates and Assets/Liabilities Ratios
* Average assets: loans, due from banks, securities portfolio, correspondent accounts
** Average liabilities: due to banks, customer accounts including current accounts, debt securities in issue
Average interest rates on the assets side*
Average IEA and IBL (RUB bn)
Average interest rates on the liabilities side**
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Comments
• 4Q 2011 - differently directed tends on corporate term deposits and retail term deposits
• Every 4Q marked by seasonal factor of lower loans/deposits ratio
NIM calculation
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Comments
Existing approach to NIM calculation (the blue line):calculated as net interest income divided by the average interest earning assets (gross loans, due from banks, nostro accounts and securities portfolio)
1st possible approach to NIM calculation based on net loans (the red line):calculated as net interest income divided by the average interest earning assets (net loans, due from banks, nostro accounts and securities portfolio)
2nd possible approach to NIM calculation based on net loans (the grey line):calculated as net interest income divided by the average interest earning assets (net loans, due from banks and securities portfolio)
5,21%
4,98%4,38%
5,62%5,36%
4,71%
5,68%5,51%
4,99%
4,00%
4,50%
5,00%
5,50%
6,00%
6,50%
7,00%
7,50%
1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11
NIM (gross loans based) NIM (net loans based) NIM (net loans; correspondent accounts excluded)
Financial Summary (RUB), 2007 – FY 2011
RUB bn 2007 2008 2009 2010 FY 2011
Loans and Advances to Customers 91.73 144.88 158.20 182.82 209.91
Total Assets 126.66 215.72 235.61 272.61 330.03
Customer Deposits 96.15 144.16 181.14 202.17 236.06
Total Liabilities 111.65 196.91 210.32 244.04 290.01
Total Shareholders’ Equity 15.00 18.81 25.28 28.56 40.02
Total Capital 18.51 24.23 33.22 35.87 47.08
Net profit 2.00 2.77 0.64 4.11 5.89
Net Interest margin 5.46% 6.47% 5.22% 4.94% 4.78%
Capital Adequacy 16.41% 14.15% 15.19% 12.96% 13.92%
Cost-to-Income ratio 40.21% 34.66% 24.62% 30.03% 36.12%
Allowance for loan imp. / Gross loans 2.75% 3.88% 9.14% 9.61% 9.23%
Loans / Deposits 95.40% 100.51% 87.36% 90.43% 88.92%
ROAA 2.15% 1.62% 0.28% 1.62% 1.95%
ROAE 20.60% 16.41% 2.90% 15.28% 17.16%
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Financial Summary (RUB), 4Q 2010 – 4Q 2011
RUB bn 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011
Loans and Advances to Customers 182.82 192.58 198.35 203.37 209.91
Total Assets 272.61 282.43 292.06 305.82 330.03
Customer Deposits 202.17 200.01 212.23 221.95 236.06
Total Liabilities 244.04 251.78 259.79 269.68 290.01
Total Shareholders’ Equity 28.56 30.66 32.27 36.14 40.02
Total Capital 35.87 37.43 39.14 43.60 47.08
Net profit 1.82 2.09 2.41 0.82 0.57
Net Interest margin 4.67% 5.00% 5.21% 4.98% 4.38%
Capital Adequacy 12.96% 12.65% 12.54% 13.45% 13.92%
Cost-to-Income ratio 35.80% 26.21% 30.15% 45.85% 44.45%
Allowance for loan imp. / Gross loans 9.61% 9.48% 9.00% 9.09% 9.23%
Loans / Deposits 90.43% 96.29% 93.46% 91.63% 88.92%
ROAA 2.77% 3.05% 3.36% 1.09% 0.71%
ROAE 26.03% 28.63% 30.66% 9.52% 5.93%
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Loan portfolio and quality
Loan portfolio and allowance for loan impairment
Provision charge (RUB mln)* and problem loans**, %
Comments
Loan portfolio by sector, January 1, 2012
* Provision charge calculation: the losses / gains on loans granted at below market rates are included in provision charge** Overdue loans and impaired not past due loans include the whole principle of loan at least one day overdue or impaired
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• Loan portfolio growth in FY 2011:Before provisions: +14.3% compared with January 1, 2011After provisions: +14.8% compared with January 1, 2011
• As at January 1, 2012:Corporate overdue loans – 5.68% (4.80% as at January 1, 2011)Retail overdue loans – 6.16% (8.77% as at January 1, 2011)
• As at January 1, 2012, top-20 borrowers share makes up 158,4% oftotal capital versus 203,6% as at January 1, 2011
• RUB 1.6 bn (0,7%) of the loan portfolio written off in FY 2011
Assets and liabilities structure
Assets structure, January 1, 2012 Liabilities structure, January 1, 2012
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Trading securities portfolio
Securities portfolio*, January 1, 2012 Comments
* Securities portfolio includes trading securities and trading securities pledged under sale and repurchase agreements
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● Conservative approach to risk:- 90%+ of the debt securities belong to the CBR Lombard list
● Average duration is 1.1 years
● No exposure to problem European assets
Capital and funding
Capital adequacy, %
Risk-weighted assets (RWA), RUB, bn Comments
Repayment schedule for 2012-2015, USD, mln
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• Capital position is much stronger allowing to absorb negative effects of one-off credit event
• FY 2011 capital enhancement factors:
- Record net income (RUB 5.9 bn)
- The EBRD entered the capital with 6.2% stake in voting shares (total proceeds from the share issue: RUB 2.7 bn)
- Revaluation of the MICEX stake (RUB 2.2 bn)
- Effect of the new HQ fair evaluation (RUB 1.4 bn)
Table of contents
I. Bank’s market position
II. Financial highlights and business overview
III. Recent developments and prospects
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2011 developments
� New HQ launched
� Quality standards improved
� Rebranding started and brand management system implemented
� New IT-platform launched
� HR: motivation system modernized
� IRB (Internal Ratings-Based) Approach standards developed
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Presentation team
All information for the investors is available on the Bank’s web site: http://en.bspb.ru/204/Contact information:E-mail: [email protected]
Phone: +7 (812) 332 78 36
Tatiana OreshkinaHead of IR
Konstantin NoskovDirector, International Finance and Financial Institutions
Konstantin BalandinDeputy Chairman of the Management Board
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