capital markets day 2008 - sergey tigipko

8/8/2019 Capital markets day 2008 - Sergey Tigipko

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Swedbank Ukraine

Mr Sergey TigipkoHead of Swedbank Ukraine

Capital Markets Day

Kiev, 5 March 2008

© Swedbank 2

Agenda

• Ukraine – economic data and banking market

• Swedbank in Ukraine



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Ukraine – economic data and banking market

© Swedbank 4

Country data

• Total area: 603,700 sq. km

• Population: 47 million

• Official language: Ukrainian

• Currency: Hryvnya (UAH)

• Rate of exchange (29/02/08):USD 1 = UAH 5.05

• Religion: Ukrainian Orthodox (MoscowPatriarchate and Kiev Patriarchate) andRoman Catholic

• Independence: 1 December 1991 (fromSoviet Union)



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© Swedbank 5

Kazakhstan

2nd largest CEE country by population (million)…

47

38

22

15

10

10

10

7

27

143Russia

Ukraine

Poland

Uzbekistan

Romania

Belarus

Czech Rep

Hungary

Bulgaria

© Swedbank 6

… and one of the fastest growing CEE economies

1 770

3 2704 270

5 340

7 850

10 91012 200

Ukr aine Bulga ria Roman ia Rus sia Poland Hungary Cz Rep

7.3%

9.6%

12.1%

2.6%

7.1%

2.9%3.4%2.0%2.3%

0.8%

2003 2004 2005 2006 2007

Ukraine

EU

16.6%

11.6%10.3%12.3%

8.2%

2.0% 2.1% 2.1% 2.2% 3.1%

2003 2004 2005 2006 2007

7.6%7.1%

6.2%5.5% 5.2% 5.0%

4.5%

Ukraine Russia Ro mania Bulgaria Cz Rep Poland Hungary

Superior historic economic growth… …with plenty of room for further growth

The dynamics of GDP… …and inflation

2007:

US$ 1,944

Average GDP (2003-07) GDP per capita, US$ (2006)

,

,,

,

,

,,



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© Swedbank 7

Plenty of room for further growth in Ukrainian banking…

122%

112%107%

95%

85%

64% 64%56%

Latvia Estonia Cz Rep Slovakia Hungary Lithuania Poland Ukraine

Total assets/GDP (2006)

© Swedbank 8

…and for further growth in profitability

27.3%

24.8% 24.6% 24.1%

22.4%

17.5% 17.2%

13.5% 13.4%

Latvia Hungary Estonia Cz Rep Poland Slovakia Lithuania Ukraine Slovenia

1 .8% 1. 8% 1 .8 %

1.7%

1.6%

1.3%

1.0%

0.9%

0.7%

Poland Hungary Estonia Latvia Ukraine Cz Rep Slovakia Lithuania Slovenia

ROE (2006) ROA (2006)



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© Swedbank 9

30.4

15.4

6.62.81.7

2003 2004 2005 2006 2007

Superior growth of Ukrainian banking market in 2007…

Loans to private clients, US$bn

54.7

33.2

21.613.710.9

2003 2004 2005 2006 2007

32.4

21

14.4

7.86

2003 2004 2005 2006 2007

22.2

15.212.1

7.65.3

2003 2004 2005 2006 2007

Loans to corporate clients, US$bn

Corporate client accounts, US$bnPrivate client accounts, US$bn

65%136%

133%

97%

26%

58%

54%

65%

30%

85%

46%

84%

43%

59%26%

46%

© Swedbank 10

…and growing presence of foreign banks

11%10%

20%

28%

35%

2003 2004 2005 2006 2007

12% 12%14%

21%

27%

2003 2004 2005 2006 2007

Percentage of foreign owned banks Foreign owned banks’ percentage of share capital

44 foreign banks have entered the Ukrainian market, including…



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© Swedbank 11

Market leaders

152.0%2.4Swedbank

142.1%2.5Kreditprombank

132.3%2.8FUIB

122.4%2.9Forum

112.4%2.9Finance & Credit

102.5%3.0ALFA-BANK

93.0%3.5ОTP Bank

83.2%3.8OshchadniyBank

73.5%4.2NadraBank

64.4%5.2Prominvestbank

54.8%5.7Ukreximbank

45.2%6.2Ukrsotsbank (UniCredit)

36.3%7.5UkrSibbank (BNP Paribas)

27.4%8.8RaiffeisenBank Aval

19.4%11.1PrivatBank

Rankingby total assets

Market shareby total assets

Total assets, US$bn

01/01/2008

Swedbank in Ukraine



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© Swedbank 13

History of Swedbank

History of Swedbank-Invest

1991 TAS-Kommerzbank established under the name of Bank Intellect

1996 Bank Intellect becomes a subsidiary of Privatbank and is renamed Bank Kyiv-Privat

2001 Bank Kyiv-Privat becomes part of TAS Group

1996 Established as Société Générale Ukraine

2001 Bank becomes part of TAS Group

2007 Swedbank AB purchases 100% of equity

2005-06 TAS-Kommerzbank acquires 100% of equity

2007 Swedbank-Finance banking holding group is established and TAS-Kommerzbank is renamed Swedbank

2007 Decision to change the name of TAS-Investbank to Swedbank-Invest

History of Swedbank-Finance

© Swedbank 14

Ownership structure

Swedbank

Swedbank-Invest

banking holding groupSwedbank-Finance

100 %

100 %



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© Swedbank 15

Swedbank-Finance: highlights

• Lutzk

• Poltava

• Chernovtsi

• Rouno

• Chernigov

• Kharkov

• Latsk

• Lvov

• Vinitsa

• Cherkasy

• Donetsk

• Odessa • Nikolaev

• Zhitomir

• Kiev

• Uthgorod

• Rovno

• Kharkov

• Kherson

• Khmelnytsky

• Ivano• -

• Frankovsk

• Ternopol

Lutzk

Poltava

Chernovtsi

Rouno

Chernigov

Lugansk

Zaporozhie

Lvov

Vinitsa

Cherkasy

Kirovograd

Donetsk

Dnepropetrovsk

Odessa

Nikolaev

Zhitomir

Kiev

Uthgorod

Kharkov

Kherson

Sumy

Khmelnytsky

Frankovsk

Ternopol

Simferopol

Key financials and statistics (01/01/08), US$m

Total assets 2,230

Customer loans 1,773

Customer deposits 890

Shareholders’ equity 147

Net profit (2007) 22.3

Outlets 191FTE 3,289

Corporate clients 17,814

Private clients 166,915

© Swedbank 16

Market growth of corporate client business to date…

1,075

519

350187

101

2003 2004 2005 2006 2007

26%

58% 54% 65%

107%

48%

87%85%

2004 2005 2006 2007

Ukr aine Swedbank-Fi nance

547

328261

8678

2003 2004 2005 2006 2007

43% 59%26% 46%

67%

26%

203%

10%

2004 2005 2006 2007

Ukr aine Swedbank-Fi nance

Loans to corporate clients, US$m Net growth of loans to corporate clients

Corporate client accounts, US$m Net growth of corporate client accounts



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© Swedbank 17

…and clear vision of future

Project financing and factoring

Reorganization of networkand new sales structure

New strategy has beendeveloped

and is being implemented

Active positionin the internationalborrowing market

Focus on mid-size companiesand SMEs

Products developedin accordance with

target segments’ needs

Corporate clients

Mid-size clients:12 corporate centres

SMEs:48 corporate branches

Swedbank-Invest:leader in new project

financingSwedbank: strong position

in factoring market

Cooperation withnumber of banks andfinancial institutions

supported bySwedbank Group

Swedbank-Invest:mid-size and large clients

Swedbank:SMEs and mid-size

clients

Deloitte support

© Swedbank 18

Clearly defined RETAIL strategy…

Effective risk management

Strong nationwide distribution

New strategy developedand implemented

Active marketing and promotion

Identification of groups of targeted clients

Optimized products

Private clients

191 branchesCooperation withfinancial agents

Call CentreInternet banking

Establishment of debt collection company

Nationwideadvertising company

Re-branding

Focus on mass market clients

MortgageCash loansDeposits

Credit cards



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© Swedbank 19

…enhances opportunities in the growth market

65%

136% 133%97%

104%

220%245%

121%

2004 2005 2006 2007

Ukraine Swedbank-Finance

698

342

1073114

2003 2004 2005 2006 2007

Loans to private clients, US$m Net growth of loans to private clients

343337

154

6860

2003 2004 2005 2006 2007

30%

85%

46%

84%

2%

119%126%

13%

2004 2005 2006 2007

Ukraine Swedbank-Finance

Private client deposits, US$m Net growth of private client deposits

© Swedbank 20

Positive synergies…

» Transfer ofknowledge andinfrastructure

» Scalable groupservices

» Diversifiedfunding base

• Risk and creditmanagement

• Products androll-outs

• Strategies• Structures• Procurement• IT systems• Shared services• …

Synergies for

profitabilityand growth



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© Swedbank 21

…mean we can look ahead with confidence

Retail loans & deposits

342

698

337 343

Dec 06 Dec 07 Dec 08

Loans, US$m

Deposits, US$m

Corporate loans & deposits

519

1,075

328547


Loans, US$m

Deposits US$m

Net profit, US$m

22.3

6.6

2006 2007 2008

Shareholders’ equity & total assets

,

,

131 147

1 001

2 230


Shareholders’ equity, US$m

Total assets, US$m

© Swedbank 22

Summary

• Superior growth of Ukrainian banking market in last fewyears and plenty of room for further growth

• Swedbank-Finance – the universal bank with clear defined retail and corporate strategies

• Synergies with Swedbank Group for profitability andgrowth

capital markets day 2008 - sergey tigipko

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