investor presentation - vtb · 2017. 12. 22. · (1) data as of: china - dec 2012, japan - feb...

© VTB 2013 1

Investor Presentation August 2013

© VTB 2013 2

Some of the information in this presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of JSC VTB Bank ("VTB") and its subsidiaries (together with VTB, the "Group"). Such forward-looking statements are based on numerous assumptions regarding the Group's present and future business strategies and the environment in which the Group will operate in the future. 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 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.

© VTB 2013 3

Macroeconomic Environment and Russian Banking Sector

© VTB 2013 4

Macroeconomic Environment and Outlook

(1) Data as of: China - Dec 2012, Japan - Feb 2013, Saudi Arabia - Dec 2012, Russia - Dec 2012, Switzerland - Jan 2013, Taiwan - Dec 2012.

Clean sovereign balance sheet

Top countries by FX reserves, USD bn (1)

3,312 1,259

625 534 526 403

China Japan Saudi Arabia

Russia Taiwan Switzerland

Government debt as % of GDP, FY’2012

9% 23%

65% 68%

36% 47%

Source: Rosstat, VTB Capital Research

Source: IMF, CIA Source: Ministry of Finance of the Russian Federation , IMF, Eurostat

Russia Brasil India China

Russia: growth slowdown coming to an end

GDP, real Retail sales Real wages

Inflation path: strong disinflation ahead

Headline CPI, % YoY

Source: Rosstat, VTB Capital Research

Key economic indicators, %

One of the largest FX reserves globally Clean sovereign balance sheet

Turkey CEE median

Fixed capital investment

3%

4%

5%

6%

7%

8%

9%

10%

Jan-

10

Mar

-10

May

-10

Jul-1

0 S

ep-1

0 N

ov-1

0 Ja

n-11

M

ar-1

1 M

ay-1

1 Ju

l-11

Sep

-11

Nov

-11

Jan-

12

Mar

-12

May

-12

Jul-1

2 S

ep-1

2 N

ov-1

2 Ja

n-13

M

ar-1

3 M

ay-1

3 Ju

l-13

Sep

-13

Nov

-13

VTBC forecast

4.3 3.4

2.4 3.0

6.4 6.6

3.9 3.7 2.8

8.6

4.2 3.5

10.2

6.0

1.5

5.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2011 2012 2013F 2014F

© VTB 2013 5

Long Term Potential – Solid Opportunities for Banking Business Development

Commentary

Secure funding base enhances stability

Gross loans as % of GDP (1H’2012) Retail loans as % of GDP (1H’2012)

Overdue loans and loan loss provisions as % of Russian banking sector gross loan portfolio

Source: National banks and banks regulators.

Growth potential driven by low penetration

Strong capital base enhances stability

Retail is an important source of growth and margin

Decreasing NPL levels

Overdue loans LLP

Russian banking sector: growth supported by quality fundamentals

6.3% 5.7% 5.1% 4.5%

11.6% 10.5%

8.6% 7.6%

2009 2010 2011 2012

Equity as % of total assets (1H’2012)

12.6%

8.9% 7.3% 6.3%

10.5% 12.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Russia Brasil India China CEE median

Turkey

118%

51% 49% 47% 59% 56%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

China India Brasil Russia CEE median

Turkey

28%

9%

23%

11%

26%

19%

China India Brazil Russia CEE median Turkey

© VTB 2013 6

VTB Group – an attractive equity story

7 © VTB 2013

VTB: Successful Growth Story – through Organic Growth and M&A

Establishment and recognition

Development and growth

Efficient growth strategy

Acquisition of

Armsberbank (now VTB Armenia) Guta-Bank (now VTB24)

Acquisition of

ICB (later VTB North-West) MNB (now VTB Capital plc) BCEN-Eurobank (now VTB France) Donau-Bank (now VTB Austria) OWH (now VTB Germany) UGB (now VTB Georgia)

In the past 10 years, VTB Group demonstrated over 30 times increase in total assets

Acquisition of Mriya (now PJSC VTB Bank (Ukraine)

Acquisition of

Slavneftebank (now VTB Belarus)

Acquisition of

TransCreditBank

Acquisition of

Bank of Moscow

1990-2001 2002-2010 2010-2013

2005: Launched VTB24 2007: VTB became the 1st Russian

bank to launch its IPO 2008: Launched VTB Capital

Established in October 1990 VTB Bank joined the top 5 largest

banks in Russia

2010: Launched its new strategy

based on efficient growth Targeting above market growth for

retail and efficiency for CIB

VTB corporate history

231 331 494 1,057

1,380 2,273

3,697 3,611 4,291

6,790 7,416

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

(RU

B b

n)

8 © VTB 2013

VTB: Unique Business Model – Universal Banking Platform Incorporating CIB, Retail Banking and Other Financial Services

■ Strong franchise ■ Full range of investment

banking services ■ VTB Capital, the Group’s

investment bank –the leader in the Russian Investment banking industry

■ Significant scale and strong

market position ■ Broad corporate client base ■ Well established relationships

with leading Russian companies across all economic sectors

A separate transaction banking unit established to grow the Group’s commission-based income by increasing sales of existing transaction-related products and services

Retail banking Corporate-investment banking

The Group offers factoring and ancillary

services, incl. the management and collection of receivables and credit management, to

corporate clients through its factoring company VTB Factoring

VTB Insurance provides individuals and institutions with a full range of services:

property insurance, civil and professional liability insurance, and personal insurance

(excluding life insurance)

FACTORING INSURANCE

VTB Leasing is today one of the

leading Russian leasing companies, offering a broad range of services, with

regional offices across Russia and subsidiaries in the CIS and Europe

LEASING

Retail banking

Non-banking financial businesses

Investment banking Corporate banking Transaction banking

■ The Group is the second-largest Russian retail bank by loans and deposits as of March 31, 2013.

■ Extensive distribution network, with broad coverage throughout the Russian Federation.

http://www.bm.ru/en/�

http://www.bm.ru/en/�

© VTB 2013 9

13,163 14,849 18,803 21,508 21,648

13.0% 12.2% 15.5% 14.7% 14.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

31-Dec-09 31-Dec-10 31-Dec-11 31-Dec-12 31-Mar-13

Corporate-Investment Banking

Corporate loan market in Russia

(RU

B b

n)

VTB corporate loan market share in Russia

VTB corporate deposit market share in Russia

(RU

B b

n)

(1) Data as of 1H’2012. Source: National banks and banks regulators. (2) 1H’12 data adjusted for promissory notes (equal to RUB 95.2 bn) that according to management view, can be classified as customer deposits.

Corporate deposit market in Russia

Corporate loans to GDP (1)

90%

42% 36% 26% 33% 37%

China India Russia Brazil CEE median Turkey

VTB Group corporate loan portfolio

VTB Group corporate liabilities

(RU

B b

n)

Term deposits Current accounts

4,100 3,965 3,752 3,696 3,690

31-Mar-13 31-Dec-12 30-Sep-12 30-Jun-12 31-Mar-12

+3%

(RU

B b

n)

1,440 1,318 1,430 1,448 1,403

759 920 760 676 740

2,199 2,239 2,191 2,123 2,143


-2%

2 2 2 2 2

+3%

+11%

2 2 2 2 2

9,358 10,893 13,694 15,326 15,428

12.7% 15.0%

21.1% 18.4% 18.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

0

5,000

10,000

15,000

20,000

25,000

30,000


2

1 2 2

2

VTB average yield and cost of funds

Average cost of corporate deposits and current accounts

Average yield on corporate loans

4.3% 4.3% 4.5% 4.5% 4.6%

9.3% 9.6% 9.0% 9.0% 8.6%

1Q'13 4Q'12 3Q'12 2Q'12 1Q'12

5.0% 4.0%

© VTB 2013 10

7,503 9,730 11,638 14,251 14,739

6.0% 7.2%

9.0% 8.7% 9.0%

-3.0%

-1.0%

1.0%

3.0%

5.0%

7.0%

9.0%

0

5,000

10,000

15,000

20,000

25,000


415 391 351 334 312

108 102 94 87 79

669 627 582 528 470

1,193 1,120 1,027 950 861


Retail Banking

Retail loan market in Russia

VTB retail deposit market share in Russia

(RU

B b

n)

Retail deposit market in Russia

Retail loans to GDP (1)

VTB Group retail loan portfolio

VTB Group retail deposits

(RU

B b

n)

(RU

B b

n)

(RU

B b

n)

VTB retail loan market share in Russia

(1) Data as of 1H’2012. Source: National banks and banks regulators.

28%

9%

23%

11%

26% 19%

China India Brazil Russia CEE median Turkey

3,574 4,085 5,551

7,737 8,098

10.2% 12.1%

13.7% 13.3% 13.6%

3.0%

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

0

2,000

4,000

6,000

8,000

10,000

12,000


2 2 2 2

2

+39% +7%

Mortgage loans

Car loans

Cash & credit card loans & other

1,259 1,127 1,061 1,050 948

270 307 270 265 242

1,529 1,434 1,331 1,315 1,190


Term deposits

Current accounts

+28% +7%

2 2

2 2 2

15.8% 17.6% 16.6% 15.7% 15.9%

5.2% 5.2% 5.3% 5.3% 5.0% 1Q'13 4Q'12 3Q'12 2Q'12 1Q'12

Average cost of retail deposits and current accounts

Average yield on loans to individuals

10.6% 10.9%

VTB average yield and cost of funds

© VTB 2013 11

Value Creation through New Initiatives. Launch of Leto Bank in 2012

– Oriented on the mass and lower-mass retail segments

– Offers high-demand services such as cash loans and POS loans

– 201 branches and 13 thsd POS opened as of 1H’2013

VIP

Affluent

Mass affluent

Upper mass

Mass

Lower mass

Customers not using banking products

Segment-oriented approach in servicing retail customers

▪ Dedicated communication channels: premium branches, separate web platform and call-center

▪ Dedicated personal relationship managers ▪ Package product offering

(banking, insurance, asset management) ▪ Tailor-made pricing and product offering

▪ Dedicated service sectors in all branches

▪ Exclusive conditions for banking products

▪ Non-financial services (e.g. advisory)

▪ Cost optimisation strategy with focus on high quality service

▪ Special pricing on banking products

▪ Standard product offering ▪ Focus on maximum

standardisation and cost optimisation

Leto Bank – new retail mass market initiative

Established as an organic addition to VTB Group's retail business to help its long-term and continued success in Russia’s banking market

POS loan market in Russia

+83%

105 163 192 226 265

2009 2010 2011 2012F 2013F

(RU

B b

n)

+18% +17%

Cash loan market in Russia

1,606 1,923 2,768

4,004 5,163

2009 2010 2011 2012F 2013F

(RU

B b

n)

+72%

+45% +29%

12 © VTB 2013

188 231 331 494 1,057 1,380 2,273

3,697 3,611 4,291

6,790 7,416 7,603

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1Q'2013

(RU

B b

n)

VTB: Strong Investment Opportunity

(1) Calculated based on revenues from external customers (1Q’2013). (2) As of 31 March, 2013. Source: Dealogic.

Leading Russian bank with strong and consolidated positioning in all key segments – #2 by assets and all key banking metrics – Russia represents c. 75% of total assets

Operating in 22 countries, servicing about 16 million customers

Well positioned to support Russian businesses abroad

Diversified business model – Successful expansion of retail franchise:

In 1Q’2013, VTB Group retail loans grew 7% YTD and comprise 23% of total book

– VTB is the leading investment bank in Russia

Strong and rapidly expanding positioning in a growth economy

Supported by acquisitions – VTB24, Promstroybank, TransCreditBank,

Bank of Moscow

Investment banking Treasury

Retail Loans & Deposits and Transaction banking

Angola

UK France

Germany Austria

Italy

Cyprus

Dubai

Belarus Ukraine

Russia

Armenia

Georgia

Azerbaijan

Kazakhstan

Kyrgyzstan

China

Vietnam Singapore

India

New York

Market share

Russia and CIS M&A: #1 (8 deals) (2)

Russia and CIS DCM: #1 (34 deals) (2)

Russia and CIS ECM: #4 (1 deal) (2)

15.2% 14.7% 18.2% 13.6% 9.0%

Assets Corporate loans Corporate deposits Retail loans Retail deposits

31% 44% 10% 8%

Rank

c. 1,900 branches across Russia, CIS and Europe

Solid client base - c.16 mln active retail and corporate customers

Strong domestic IB Superior growth in retail

CAGR (FY’2001 – 1Q’2013) 43%

2 2 2 2 2

National champion Leading player in Russia

Strong asset growth Successful growth story

Well established universal banking model Well diversified revenue mix(1)

With focused international presence Globally connected to significant trade flows / interests with Russia

Other

8%

© VTB 2013 13

Attachments

1. VTB Group Financials 14

2. VTB Group Public Debt Instruments 22

© VTB 2013 14

VTB Group Financials

© VTB 2013 15

VTB Group 1Q’2013 and FY’2012 Financial Highlights: P&L and Key Ratios

FY’2012

246.0

48.3

Net result from financial instruments (1) 37.2

369.5

(59.4)

(191.6)

90.6

4.2%

1.2%

2.8%

ROE 13.7%

Operating income before provisions (2)

Net interest margin (3)

Cost of risk (4)

Cost / Assets

(in RUB bn)

Net interest income before provisions

Net fee and commission income

Net profit

Provision charge for loan impairment

Staff costs and administrative expenses

FY’2011

227.0

39.2

(7.6)

286.6

(31.6)

(141.5)

90.5

5.0%

0.9%

2.7%

15.0%

y-o-y

8.4%

23.2%

n/a

28.9%

88.0%

35.4%

0.1%

-80 bps

30 bps

10 bps

-130 bps

1Q’2012

54.0

10.3

22.9

95.4

(20.4)

(42.5)

23.3

3.8%

1.7%

2.6%

14.9%

FY’2012 (in RUB bn) FY’2011 y-o-y 1Q’2012

Key Financial Ratios

Income Statement – Key Indicators

(1) Calculated including income from securities, FX, gains arising from extinguishment of liability, net recovery of losses on initial recognition of financial instruments, restructuring and other gains on loans and advances to customers. (2) Operating income before provisions is calculated before provisions for impairment of debt financial assets and impairment of other assets, contingencies and credit-related commitments. (3) Net interest income divided by average interest earning assets, which include gross loans and advances to customers, due from other banks (gross), debt securities and correspondent accounts with other banks. (4) Represents provision charge for impairment of debt financial assets to the average gross loan portfolio.

1Q’2013

73.8

11.5

(1.5)

92.9

(22.0)

(49.2)

15.7

y-o-y

y-o-y

4.5%

1.6%

2.6%

8.1%

1Q’2013

ROA 1.3% 1.7% -40 bps 1.4% 0.8%

70 bps

-10 bps

-

-680 bps

-60 bps

36.7%

11.7%

n/a

-2.6%

7.9%

15.8%

-32.6%

© VTB 2013 16

VTB Group 1Q’2013 and FY’2012 Financial Highlights: Balance Sheet

- retail loans

(in RUB bn)

Gross loan portfolio

- corporate loans

Total assets

Customer deposits

YTD

Balance Sheet – Key Indicators

31-Dec-2011 y-o-y

- retail deposits

- corporate deposits

Total liabilities

Total shareholders’ equity

(in RUB bn) YTD

Key Asset Quality Ratios

31-Dec-2011 y-o-y

NPL ratio (1)

LLR ratio (2)

(1) Non-performing loans (NPLs) represent impaired loans with repayments overdue by over 90 days. NPLs are calculated including the entire principal and interest payments. Ratio is calculated to total gross loans including financial assets classified as loans and advances to customers pledged under repurchase agreements.

(2) Loan-loss reserve ratio represents allowance for loan impairment to total gross loan portfolio including financial assets classified as loans and advances to customers pledged under repurchase agreements.

4,590.1

3,766.0

824.1

6,789.6

3,596.7

2,435.3 1,161.4

6,164.5

625.1

4.1%

3.4%

6.5%

2.5%

1.5%

-1.8% 6.6%

2.6%

2.2%

10.8%

5.3%

35.9%

9.2%

2.1%

-8.1% 23.5%

7.9%

22.6%

5.4%

6.3% 10 bps

-

10 bps

31-Mar-2013

5,292.7

4,100.1

1,192.6

7,602.8

3,727.9

2,198.6 1,529.3

6,819.5

783.3

31-Dec-2012

5,084.8

3,964.6

1,120.2

7,415.7

3,672.8

2,238.7 1,434.1

6,649.6

766.1

31-Mar-2013 31-Dec-2012

5.4%

6.5%

- 5.4%

6.4%

31-Dec-2012

5,084.8

3,964.6

1,120.2

7,415.7

3,672.8

2,238.7 1,434.1

6,649.6

766.1

31-Dec-2012

5.4%

6.4%

© VTB 2013 17

VTB Group 1Q’2013 Segment Analysis

Corporate – Investment Banking

Retail Banking

21.0

5.5 4.7

21.7

52.9

29.0

5.7 3.5 3.5

41.7

Net interest income

Net fee and commision income

Net result from financial

instruments

Treasury result allocation and

other

Operating income before

provisions

26.2

5.9 4.0

36.1 34.2

8.2 6.7

49.1

Net interest income Net fee and commission

income

Treasury result allocation and

other

Operating income before

provisions

+31%

+36%

1Q’2012 1Q’2013

1Q’2012 1Q’2013

Segment result (profit before tax)

13.3 15.8

(RU

B b

n)

+19%

20.6 10.2

(RU

B b

n)

+38%

-21%

-50%

+4%

+39%

Segment result (profit before tax)

1Q’2012 1Q’2013

1Q’2012 1Q’2013

© VTB 2013 18

3.8% 4.1% 4.1%

4.6% 4.5%

Strong Core Banking Income Supported by Stable NIM

(1) Operating income before provisions is calculated before provisions for impairment of debt financial assets and impairment of other assets, contingencies and credit-related commitments. (2) Net interest income divided by average interest earning assets, which include gross loans and advances to customers, due from other banks (gross), debt securities and correspondent accounts with other banks. (3) Calculated including income from securities, FX, gains arising from extinguishment of liability, net recovery of losses on initial recognition of financial instruments, restructuring and other gains on loans and advances to customers. (4) Represent annualised average rates (expense for the period divided by average balance).

Operating income before provisions (1) and Net interest margin (2)

Other operating income

Net interest income before provisions

Net fee and commission income

Net result from financial instruments (3)

8.2 5.5 13.6 10.7 9.1 22.9

(8.5)

8.9 13.9

(1.5)

54.0

58.4

61.9 71.7 73.8

10.3

11.5

12.4 14.1

11.5 95.4

66.9

96.8 110.4

92.9

1Q'12 2Q'12 3Q'12 4Q'12 1Q'13

(RU

B b

n)

Net interest spread

9.6% 9.9% 9.5% 9.3% 9.0%

5.1% 5.3% 5.2% 5.1% 5.1%

1Q'13 4Q'12 3Q'12 2Q'12 1Q'12

Average yield on interest earning assets Average cost of interest bearing liabilities

4.5% 4.6% 3.9%

Net interest margin

Cost of funds (4)

6.2% 7.3% 6.2% 6.6%

5.8%

7.9% 7.7% 7.7% 8.0% 7.8%

4.7% 4.7% 4.8%

4.8%

4.8%

5.0% 5.0% 5.0%

4.3%

4.9%

1Q'13 4Q'12 3Q'12 2Q'12 1Q'12

Subordinated debt Debt securities issued

Due to banks and other borrowed funds

Customers deposits

© VTB 2013 19

1Q'13 4Q'12 3Q'12 2Q'12 1Q'12

2.6% 2.7% 2.7% 3.1% 2.6%

Staff and Administrative Expenses

Staff costs and administrative expenses

Staff costs (1)

Administrative expenses

Cost / Income ratio

(1) Including pensions. (2) Staff costs and administrative expenses per average employee (annualised).

Number of employees

Russia Europe CIS and other

Staff and administrative expenses per employee (2)

+5% -8%

(RU

B m

ln)

22.7 24.2 25.9 26.8 28.9 19.8 20.4 21.9 29.9 20.3 42.5 44.6 47.8 56.7 49.2

45.4%

66.7% 49.4% 51.4% 53.0%

1Q'12 2Q'12 3Q'12 4Q'12 1Q'13

58,338 60,381 65,873 70,075 73,894

980 1,007 1,027

1,103 1,155 10,085 10,214

9,628 9,682 9,715

69,403 71,602 76,528

80,860 84,764

31-Mar-12 30-Jun-12 30-Sep-12 31-Dec-12 31-Mar-13

2.6 2.4

1Q'12 1Q'13

(RU

B b

n)

Cost / Assets

© VTB 2013 20

Asset Quality

Сost of risk

NPL and loan-loss reserves

Provision charge for loan impairment / Average gross loan portfolio

Provision charge for impairment of debt financial assets

(1) Non-performing loans (NPLs) represent impaired loans with repayments overdue by over 90 days. NPLs are calculated including the entire principal and interest payments. Ratio is calculated to total gross loans including financial assets classified as loans and advances to customers pledged under repurchase agreements.

Allowance for loan impairment / Total gross loans NPL ratio (1)

NPL coverage ratio

20.4

11.9 12.7 14.4

22.0

1.7% 1.0% 1.0% 1.1%

1.6%

1Q'12 2Q'12 3Q'12 4Q'12 1Q'13

(RU

B b

n)

5.5% 5.6% 5.6% 5.4% 5.4%

6.6% 6.8% 6.6% 6.4% 6.5%

118.4% 117.0%

110.6% 112.4%

115.4%


299 317 317 323 345 252 271 286 288 298


Allowance for loan impairment

(RU

B b

n)

NPLs

© VTB 2013 21

Balance Sheet Structure

Assets structure

Liabilities structure

(1) Includes debt and equity securities, assets pledged under REPO, securities classified as due from other banks and loans to customers, and derivatives. (2) Includes investment in associates, premises and equipment, investment property, intangible assets and goodwill, deferred tax assets and others. (3) Other borrowed funds include bilateral and syndicated bank loans, secured and unsecured financing from central banks.

Customer loans / customer deposits

Other assets (2)

Securities portfolio (1)

Loans to customers (net)

Due from other banks

Cash and mandatory reserves

Other liabilities

Subordinated debt

Debt securities issued

Customer deposits

Due to banks and other borrowed funds(3)

BIS Group capital

Total capital adequacy ratio Tier I ratio Tier I

Tier II less deductions

10% 10% 10% 9% 10%

66% 63% 62% 64% 65%

6% 6% 4% 5% 3% 12%

15% 15% 13% 13% 6%

6% 9% 9% 9% 6,451

6,858 7,185 7,416 7,603


(RU

B b

n)

4% 4% 4% 3% 3% 5% 4% 4% 4% 4%

14% 14% 14% 14% 14%

57% 55% 54% 55% 55%

20% 23% 24% 24% 24% 5,821

6,229 6,501 6,650 6,820


(RU

B b

n) 513 513 568 640 658

223 224 223 271 273 736 737 790 911 931

13.7% 12.8% 12.9% 14.6% 14.5%

9.6% 8.9% 9.3% 10.3% 10.2%


(RU

B b

n)

132.7% 129.6%

126.7% 125.9% 127.6%


23 © VTB 2013

VTB Group Public Debt and Hybrid Capital instruments

Source: VTB’s website (1) Exchange rates published by the CBR are as of June 20, 2013. Note: In addition to international debt, VTB Group currently has RUB 218 bn outstanding domestic bonds. (2) As the result of the reorganisation of JSC Bank VTB North-West and its merger with JSC VTB Bank, March 18, 2011, JSC VTB Bank has assumed the rights and obligations of JSC Bank VTB North-West as the Borrower. (3) Fixed until the first call date, then reset on 6th Dec 2022 and every 10th year thereafter. (4) The Instrument meets CBR requirement for Additional Tier 1 Capital, however the instrument was partially allocated to Tier 2 Capital under CBR in view of limited current capacity for Additional Tier 1 Capital under CBR standards.

VTB Group public debt instruments outstanding (1) VTB Group public debt instruments outstanding

VTB Group debt maturity profile

Borrower Equivalent amount (USD, mn) Instrument Maturity Date/Put

or Call Option Coupon

2013 VTB 435 Series 9 CHF EMTN 2 Aug-13 4.00% Bank of Moscow 381 CHF Public debt

instrument Sep-13 4.50%

VTB 163 Series 11 CNY EMTN 2 Dec-13 2.95%

Subtotal 979

2014 VTB 238 Series 13 SGD EMTN 2 Jun-14 3.40% VTB 3,130 Loan repayment Jul-14 Subtotal 3,368 2015 Bank of Moscow 750 Public debt instrument Mar-15 6.70%

VTB 1,250 Series 7 EMTN 2 Mar-15 6.47%

VTB 693 Series 6 EMTN 1 (put option) Jun-15 6.25%

VTB 318 Series 17 SGD EMTN 2 Jul-15 4.00%

VTB (2) 400 Subordinated Debt Sep-15 5.01% VTB 326 Series 22 CNY EMTN 2 Oct-15 4.5% VTB 326 Series 14 CHF EMTN 2 Nov-15 5% Bank of Moscow 300 Public debt instrument Nov-15 5.97%

Subtotal 4,363 2016 VTB 258 Series 9 EUR EMTN 1 Feb-16 4.25% VTB 2,000 Loan repayment Apr-16 VTB 652 Series 19 CHF EMTN 2 Sep-16 3.15% Subtotal 2,910

Borrower Equivalent amount (USD, mn) Instrument Maturity Date/ Put

or Call Option Coupon

2018 VTB 750 Series 12 EMTN 2 Feb-18 6.32% VTB 1,701 Series 4 EMTN 2 May-18 6.88% Subtotal 2,451 2020 VTB 1,000 Series 10 EMTN 2 Oct-20 6.55% Subtotal 1,000 2022

VTB 1,500 Series 21 EMTN 2 Subordinated Debt Oct-22 6.95%

Subtotal 1,500 Perpetual

VTB 2,250 Tier 1 Perpetual Eurobond (call option) (4)

Dec-22 (call option)

9.5%(3)

Subtotal 2,250 Total 21,697

2017 VTB 2,000 Series 15 EMTN2 Apr-17 6.00% Bank of Moscow 400 Subordinated debt (call

option) May-17 6.81%

VTB 476 Series 23 AUD EMTN2 Dec-17 7.5%

Subtotal 2,876

VTB Group debt maturity profile

3,1303,393

2,0002,400

258

816

326

652

238

318

163

326

2013 2014 2015 2016 2017 2018 2020 2022

US$

milli

on

USD AUD EURCHF SGD CNY

979

3,368

4,363

476 2,876

1,000 1,500

2,910 2,451

© VTB 2013 24

VTB Group International Public Debt Instruments Issued in 2012-2013

(1) Exchange rates published by the CBR are as of April 9, 2013

Borrower Date of issue Amount (mln) Instrument Maturity date Coupon/rate

VTB

April 2012 USD 2,000 Series 15 EMTN 2 April 2017 6.0%

VTB July 2012 SGD 400 Series 17 EMTN 2 July 2015 4.0%

VTB August 2012 USD 2,250 Tier 1 Perpetual Loan Participation Notes December 2022 (call option) 9.5%

VTB September 2012 CHF 600 Series 19 EMTN 2 September 2016 3.15%

VTB October 2012 USD 1,500 Series 21 EMTN 2 LT2 Subordinated Debt October 2022 6.95%

VTB October 2012 CNY 2,000 Series 22 EMTN 2 October 2015 4.5%

VTB December 2012 AUD 500 Series 23 EMTN 2 December 2017 7.5%

VTB April 2013 USD 2,000 Syndicated loan April 2016 LIBOR+1.5%

Total (USD equivalent) (1) USD 9,557

© VTB 2013 25

Hybrid Tier I Perpetual Bond

■ Full equity treatment under IFRS

■ Included in VTB’s Tier 1 Capital under CBR Regulatory Capital(1) and Basel Tier 1 Capital on a consolidated basis

■ Non-dilutive capital adequacy increase tool

■ Amendment provisions for future compliance with Tier 1 сapital requirements for possible transition of Russian regulations to Basel III

■ Equity сredit from rating agencies

■ Coupon payments are tax deductible lowering cost

■ Coupon payments are not included into Interest Expenses but treated as quasi dividend; no impact on NIM is expected

In August 2012, VTB Bank issued USD 1 bn 9.5% Perpetual Loan Participation Notes In November 2012, VTB Bank issued an additional issuance of USD 1.25 bn 9.5% Perpetual Loan Participation Notes

Key features

(1) The Instrument meets CBR requirement for Additional Tier 1 Capital, however the instrument will be partially allocated to Tier 2 Capital under CBR in view of limited current capacity for Additional Tier 1 Capital under CBR standards.

investor presentation - vtb · 2017. 12. 22. · (1) data as of: china - dec 2012, japan - feb...

Documents