investor presentation eng 09/14
DESCRIPTION
Full investor presentation eng 09/14TRANSCRIPT
Bank VozrozhdeniePromising SME and retail local franchise
Investor presentationSeptember 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 2003-20041999-2002 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
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 …
… 900 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 regions of presence. Focus on the most perspective South and North-West
Branches Sub branches Retail offices
34 43 8 85Total
As of September 1, 2014
550 ATMs – every town is under coverage
19 36 2 57
Total
348 ATMs
Retail officesBranches 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
209,609 mln
166,148 mln
158,110 mln
859 mln
23,196 mln
1,700,000
63,400
6,054
142
898
Loans to SMEs 6
19
39/19
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
Ba3/D-/NP, stable
BB-/ruAA-, negative
MOEX Financial Index
Level 1 (Highest) MOEX
Moody’s
Standard&Poor’s
Included in indices
Listing
BrandFinance Banking 500 surveyV.bank ranks among top-10 Russian most valuable banking brands with brand value of $190 million
The BankerV.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 FinanceV.Bank was awarded for “Best Corporate Governance, Russia”, according to World Finance survey
01/01/06 01/01/07 01/01/08 01/01/09 01/01/10 01/01/11 01/01/12 01/01/13 01/01/147
10
13
16
19
22
25
0
7
14
21
28
35
42S&P
S&P international BB-
Moody's Ba3
Moody's Interfax Aa3.ru
Moody'sAaa
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
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
113 116 112 109 113
56 5550 44 45
169 171162
153 158
Interest-bearing DepositsInterest-free Current accounts
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
62% 61% 64% 72% 71%
38% 39% 36% 28% 29%
Non-interest income Net interest income
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
130 133 126 128 122
37 41 43 44 44
Retail loansCorporate 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 modelBusiness based on relationships… … gives solid non-interest income
Loan portfolio development… … funded by customer accounts
12
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 201421 22 22 23 23
7 5 4 4 31 1 4 1 19 9 10 14 14
169 171 162 153 158
8 9 9 10 9
216 217211 211 210
5.5 1.6
Due to other banks
CBR funds under repos
Client funds
Securities issued
Other liabilities
Subordinated loans
Equity
Assets and liabilities
Q1 2014 Q2 2014
7.7 7.4
2.7 1.4
5.5
1.6
15.9
10.4
8.5%
5.6%Interbank funding with ma-turity over than 1 year
Interbank funding with ma-turity less than 1 year
Loans from CBR under repo agreements
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 201413 13 13 12 13
150 155 156 158 152
12 14 12 7 121 1 1 1 1
40 33 29 26 31
216 217211 211 210
6.4 1.9
Cash and equiva-lents
Due from banks
Invest. securities pledged under repos
Securities
Net loans
Other assets
Assets stable across the year, share of liquidinstruments – 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
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
167 173 168 172 166169 171 162 153 158
99%102% 104%
112%
105%
Gross loans Customer funds L/D
8,5%5,6%
RUB bln
13
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 201420 18 19 16 18
87 91 87 89 93
107 109106 104
110
Retail deposits
Retail accounts
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
26.0 24.9 24.3 19.8 20.1
35.8 36.8 31.228.8 27.7
62 6255
49 48Corporate accounts
Corporate deposits
Customer fundsRetail funds saw a strong inflow Rebound of corporate depositsRUB bln
-1.7%+5.6%
RUB bln
Dec Jan Feb Mar Apr May Jun
53 50 47 46 42 42 45
45 6 5
5 7 5
57 5454
5147
49 50
RUB Corporate FX Corporate
Corporate funds monthly dynamics (RAS)
Dec Jan Feb Mar Apr May Jun
79 77 76 75 79 80 83
25 27 29 28 28 27 26
105104
105103
108107
109RUB Retail FX Retail
Retail funds monthly dynamics (RAS)
24% 10%
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
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
130 133 126 128 122
37 41 43 44 44
166.9 173.2 168.2 171.6 166.1
Corporates Retail
RUB bln
…while new loans are issued mainly to SMEs
*Loan portfolio before provisions for impairment
-3.2%
Q1 2014 Q2 2014
51.573 49.898
…but diversification continues – lending to large corporates is curtailed…
Q1 2014 Q2 2014
76.178 72.192
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…
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
51 52 51 52 50
79 81 74 76 72
130.2 132.6125.6 127.8
122.1Large corporates SMEs
-6.2%
RUB bln
16
up to 30 days 31-180 days 181-365 days > 1 year
9.8%
36.7%
28.7%24.8%
Corporate portfolio
RUB bln
75,2%
as of June 30, 2014
… and regional diversification
Corporate loan bookCredit policy sticks to reliable collateral… ….providing mostly working capital…
17%
38%
17%
11%
16%
Moscow Oblast
Moscow
Other regions
South regions
North-West regions
RUB122.1 bln
12%
2%
21%43%
22%
RUB122.1 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
Finance
Transport
Real estate
RUB122.1 bln
as of June 30, 2014
36%
0%25%
1%
11%
5%
4%
8%9%
17
Retail lending – promising segment
01/09/11 01/03/12 01/09/12 01/03/13 01/09/13 01/03/14 01/09/145
10
15
20
25Consumer loans, RUB
Mortgages, RUB
Credit cards, RUB
up to 30 days 31-180 days 181-365 days > 1 year
1.6% 1.4% 2.3%
94.6%
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
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
68% 68% 68% 69% 70%
26%
36.8
40.5
42.643.9 44.1
MortgagesConsumer and car loansCredit 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
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 – payrollsas of June 30, 2014
16%
84%
19
Risk management
20
Sound position on capital, liquidity and market risks
FX structure
Balance sheet maturity breakdown
Interest rate risk
Demand and less than 1 month
From 1 to 6 months
From 6 to 12 months
More than 1 year
51.644.5
33.7
69.3
58.3
36.9
26.6
63.9
AssetsLiabilities
RUB bln
Demand and less than 1 month
From 1 to 6 months
From 6 to 12 months
More than 1 year
43.2 44.1
51.4 50.858.0
36.9
26.6
63.9
Interest-earning assetsInterest-bearing liabilities
RUB bln
as of June 30, 2014
as of June 30, 2014 as of June 30, 2014
Q2 2013 Q3 2013 Q4 2013 Q4 2013 Q1 2014 Q2 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%
Tier 1 Tier 1 + Tier 2 Statutory Capital (Н1.0)Statutory common equity Tier (Н1.1)
Basel I
Basel III
82%
137
25
Assets
LoansDue from banks&SecuritiesCash&Other assets
82%
31
3 1
Liabilities
DepositsDue to banks&SecuritiesOther liabilities
Capital adequacy
21
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
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%*
Retail
Credit quality management
15
Q2 2014Q1 2014Q4 2013Q3 2013Q2 2013
2.30%2.10%
0.57%
3.11%
3.12%
2.20%2.10%2.30%2.90%
2.79%
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
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
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%
NPLs, Rub mlnProvisions, % of total portfolioNPLs, % of total portfolio
no new NPLsno recoveriesno 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
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
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%
SMEs
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
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%
Large corporates
NPLs, Rub mln Provisions, % of total portfolio NPLs, % of total portfolio
22
Credit qualityAs 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
23
Recent IFRS results
iPhone
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
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
4.2% 4.5%4.9% 4.9% 4.6%
NIM in line with target despite funding costs growth
Interest income & expense breakdowns NIM decomposition
SpreadInterest rates
Q1 2014 Q2 2014
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
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
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
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%
Spread (net)Yields on earning assets (net)Cost of funds
Loans Deposits Other Base effect-0,31%
-0,13%
+0,07%
+0,02%
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
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%
Corporate term deposits Retail term depositsYields on corporate loans Yields on retail loans
26
8
11
14
17
20
23
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
1,215 1,247
940 916 9771,137 1,145 1,169
Net fee incomeNet fee income with corrected gradual accruals of one-off reclass
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
2,237.0 2,423.0 2,646.0 2,591.0 2,395.0
1,215.0 1,247.0 940.0 916.0 977.0
215.00 138.00 96.00 138.00 270.00
3.73.8
3.7 3.6 3.6
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%
Q1 2014 Q2 2014
238 241
274 295
219 225
185 216916
977
Settlements Cards Cash transactions Other
RUB mln
2012 2013 2014
H1 201286.8
H1 201390.0
H1 201491.6
Balances on debit card accounts
Credit turnover of card accounts
RUB bln
27
Operating costs under control
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
1,321 1,279 1,360 1,300 1,307
328 336 404 436 329176 181 203 170 194310 338 450 281 348
2,135 2,1342,417 2,187
2,178
Staff costs Administrative and other expenses Taxes other than income tax and contributions to the State Deposit Insurance Agency
Costs structure C/I ratioRUB mln
-0,4%
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
58.2% 56.0%
65.6%60.0% 59.8%
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 planningPart 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
Efficiency indicatorsNet profitStable operating profit
ROA, % ROE, %
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
2.9%3.1%
2.4% 2.8% 2.8%
0.4% 0.5%
1.4%0.8% 0.8%
Operating profit before provisions and taxation / Assets
ROA
RUB bln
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
28.8%31.2%
23.0%25.8% 25.5%
3.5% 4.6%
13.2%
7.6%7.5%
Operating profit before provisions and taxation / Average equity
ROE
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
-1,309.0-1,348.0
-365.0-902.0 -927.0
1,532.0 1,674.01,265.0 1,458.0 1,464.0
Provisions Operating profit before provisions and taxes
+0.4%-4.4%
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
188,000 247,000
724,000
428,000 431,000
Net profit RUB mln
+0.7%
+129%
29
Capital & Governance
30
1.9.13 1.12.13 1.3.14 1.6.14 1.9.14
100 RUB
1,000 RUB
10,000 RUB
100,000 RUB
1,000,000 RUB
10,000,000 RUB
0 RUB
200 RUB
400 RUB
600 RUB
800 RUB
1,000 RUB
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 structureShare price on MOEXShareholding structure
ValuationsMajor shareholders
Other
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
C H A IR M A N O F TH E
M A N A G EM EN T B O A R D
M r. A lexander D olgopolov
CHAIRMAN OF THE MANAGEMENT BOARD
Mr. Alexander Dolgopolov
G EN ER A L
M EETIN G O F
SH A R EH O LD ER S
GENERAL MEETING OF
SHAREHOLDERS
B O A R D O F D IR EC TO R S
12 members
9 are non-executive 5 independent
BOARD OF DIRECTORS12 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:
AUDITORPricewaterhouseCoopers
Audit commission
Audit committee
Internal Control and Audit Service
Risk Management
MANAGEMENT STRUCTURE
M A N A G EM EN T B O A R D
12 m em bers
4 D eputy C hairm en
MANAGEMENT BOARD12 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
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 AT 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 SH I G H S TA 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, 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
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Investor Relations contacts
Maria Gorbunova
Key specialist of [email protected]
Elena Mironova
Deputy head of [email protected]
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Tel.: +7 495 620 90 71E-mail: [email protected]: http://www.vbank.ru/en/investors
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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