years in BELARUS! › assets › upload › present 2016 › BRRB ENG 29... · 2019-09-27 · 2016 • WB forecasts a 0.5% fall in GDP of Belarus in 2016 and it is projected to return

Introductory presentation

© 2016 International Business May 2016

years in BELARUS!

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© 2016 International Business

• Belarus: political update

• Key tendencies & news

• Belarus: ranks & figures

• In brief

• 2015: key points

• 2016: increased powers

• CG structure

• TOP 5 banks in Belarus

• Capital injections & funding base

• Core business & special functions

• Core business

• Projects map

• International presence

• Social responsibility

• Annexes

May 2016


BELARUS: POLITICAL UPDATE

«... Lukaschenko hatte 2014 etwa die Eingliederung der Krim durch Russland kritisiert. Nach Einschätzung von Beobachtern wird er damit sein Ansehen im Westen steigern…»

11 Oktober, 2015

Alexander Lukashenko meets with Christine Lagarde, Managing Director of the International Monetary Fund

26 September, 2015

Alexander Lukashenko meets with Angela Merkel, François Hollande, Vladimir Putin and Petro Poroshenko at Minsk summit

11–12 February, 2015

Belarusian national ornament symbolizing clean & creative energy

3

«Seen from Minsk, past 20 years were not so bad…Of the six countries in the EU’s Eastern Partnership (EaP) program Belarus has the highest income per person bar oil-rich Azerbaijan …It avoided chaotic privatizations of Russia and Ukraine, and has no oligarchs straddling business and politics…» 11 April, 2015

«The EU has signalled its intention to suspend some of the sanctions imposed on Belarus, in a move that could bring President Alexander Lukashenko out of its diplomatic isolation.»

12 October, 2015

Alexander Lukashenko meets with Johannes Hahn, European Commissioner for European Neighbourhood Policy and Enlargement Negotiations

17 April, 2015

Alexander Lukashenko meets with Heinz Fischer, President of Austria

28 September, 2015

May 2016


BELARUS: BREAKING NEWS!

4

May 2016

1998/2002/2004/2006 → Sanctions in force

Oct 29, 2015 → Sanctions «on pause»

Feb 15, 2016 → No sanctions!

After more than 15 years of sanctions pressure оn Feb 15, 2016 EU Council agreed to drop most of it’s

sanctions against Belarus

Belarusian national ornament symbolizing spring time

KEY TENDENCIES & NEWS

• Improvement of external trade balance (2015 surplus 0.3% of GDP)

• Lower inflation (YoY: 2014 - 18.1%; 2015 – 13.5%)

• Keeping the balanced fiscal policies (2015 budget surplus 1.7% of GDP)

• Tightening of monetary policy: limitation of directed lending in 2016

• Floating exchange rate of Belarusian Rubles keep in force

• Price liberalization in progress

5


• Belarus and the Eurasian Development bank signed an agreement on a $2

billion 10-year loan to be disbursed in tranches until 2018 to support

economic reforms

• IMF and Belarus made considerable progress in discussing a set of policies

which could be supported by a 3Y Extended Fund Facility arrangement with

10-year maturity

• Belarus has advanced 13 positions to rank 44th in Doing Business Ranking-

2016

• WB forecasts a 0.5% fall in GDP of Belarus in 2016 and it is projected to

return to growth by 1% annually in 2017 and 2018

• Belarusian Potash Company's share in global export up to 19.3% in 2015

• Framework agreement between Belarus and the European Investment Bank

is to be signed

Belarusian national ornament symbolizing life


BELARUS: RANKS & FIGURES

Official website of the Republic of Belarus

Trade balance, % of GDP ▼ RANKS

Belarusian national ornament symbolizing growth & development

18.8% 24.9% 23.7% 22.8% 22.3%

31.3%

0%

10%

20%

30%

40%

50%

60%

70%

2010 2011 2012 2013 2014 2015

Legislative ceiling – 45%

Maastricht criterion – 60%

USD 18 161 GDP per capita 2014, #62 in World by IMF

№3 producer

№3 producer

№4 exporter

In European TOP-5 by number of graduates

In World’s TOP-10 by moving towards business-friendly regulations (World Bank Doing Business)

In World’s TOP-40 by creativity being the leader among the CIS

(Global Creativity Index-2015)

*potash

6

Gross pub. debts, % of GDP ▲

May 2016

-7.7% -11.4% -13.6%

-2.1%

4.5%

-3.2% -0.6%

0.4%

-16%

-12%

-8%

-4%

0%

4%

8%

2008 2009 2010 2011 2012 2013 2014 2015

10 % market share

IN BRIEF

• Founded in 2011 upon recommendations of IMF and World Bank • 100% state-owned • Classic development institution

• Export finance leader in Belarus with 84% market share • Mandated by the Government as asset manager • The only Belarusian bank that has:

-authority to initiate and change national financial & banking legislation -Government guarantee for all bond issues -Rep. Office in London -SME support credit program approved by World Bank

• Team of 378 highly experienced professionals (as of 01.03.2016)

• B- by S&P / Fitch with «stable» outlook

• IFRS FS since 2012 (on 6-12 m. basis) audited by KPMG

• «Gold» by profit and «Silver» equity among all Belarusian banks (2015)

7


DBRB Headquarters, Minsk

May 2016


8

May 2016

2016: INCREASED POWERS

• Exclusive rights for export finance in Belarus with budget support (only DBRB will act as Lender)

• The only financial institution for direct state programs lending in

Belarus • Competitive selection for all projects (DRBR will finance only

profitable and effective projects from all listed in state programs projects)

• Belarusian banks will return funds from previously financed state programs to DBRB (special bonds will be issued by DBRB)


CG STRUCTURE (SUPERVISORY BOARD)

Andrei Kobyakov Prime Minister

of the Republic of Belarus

Chairman of the Supervisory Board

Sergei Kalechits Deputy Chairman of the

Board of the National Bank of the Republic of

Belarus

Vladimir Zinovskiy Minister of

Economy of the Republic of Belarus

Vladimir Amarin Minister of Finance of the Republic of

Belarus

Vasily Matyushevsky First Deputy Prime

Minister of the Republic of Belarus

Mikhail Kovalev Dean of Economics

Faculty of the Belarusian State

University

Siarhei Navitski Director General of Henkel Bautechnik

JLLC

Aleksandr Shvets Chairman of

«Belarussian scientific industrial association »

Daniel Krutzinna Managing Partner

of independent management consultancy

Civitta

Independent directors (science, public activity, Top business, int. business)

9

Shareholders representatives (Government and National bank )

Our Supervisory Board is the unique «fusion» of Top Officials

from financial & economic spheres, representatives from science and public and foreign

experts.

May 2016

Risk Committee Audit Committee

Budget & Remuneration

Committee

Strategic Development

Committee


TOP 5 BANKS IN BELARUS

14.4

4.9

3.4

2.6

2.0

0.0 10.0 20.0

Belarusbank

Belagroprombank

BPS-Sberbank

Development Bank

Belinvestbank

1.9

0.8

0.7

0.2

0.2

0.0 1.0 2.0

Belarusbank

Development Bank

Belagroprombank

BPS-Sberbank

Priorbank

112.2

71.5

64.5

63.3

34.2

0 25 50 75 100 125

Development Bank

Priorbank

Belgazprombank

Belarusbank

Bank BelVEB

Since 2012 we are member of «TOP 5 banks in Belarus» club

Assets / Equity/ Profit (2015)*

USD bn eq USD bn eq USD mln eq

10

May 2016

26 banks operating in Belarus, incl. 5 banks controlled by the state

16 banks controlled by foreign capital

*Source: NBRB


CAPITAL INJECTIONS & FUNDING BASE

USD 780 mln – DBRB capital as of January 01, 2016

(#2 among all Belarusian financial institutions)

Local Bonds (BYR and FX nominated)

Own funds, including capital injections

Social prgm. “Big Family” (up to USD 120 mln per year)

External Funding (Syndications / BB Loans)

Capital Injections Dynamic

Funding Base Composition

DBRB is #1 by CAR (Tier 1) among all world

development institutions

2011 2012 2013 2014 2015

USD 4 mln

USD 351 mln

USD 597 mln

USD 104 mln

USD 134 mln

11

May 2016

2016 exp

USD 50 mln


CORE BUSINESS & SPECIAL FUNCTIONS

State Programs Financing

Export Finance Solutions

SME Support

International Activities

The main platform of DBRB activities – is to

provide unique financial solutions on

non - competitive basis with commercial

banks

Government agent on DCMs

Core business Special functions

12

May 2016

Single coordinator of State programs lending

«Toxic» asset management


CORE BUSINESS State Programs

Financing

0.3

0.9 1.3

1.0 0.6

0.3

0.7 1.0

1.1

0

1

2

3

01.01.2012 01.01.2013 01.01.2014 01.01.2015 01.01.2016*

Transferred Loans

Development Bank's Loans

25.9

24.1

11.4

7.2

17.2

14.3

4.2

Agriculture IndustryConstruction & Real Estate TradeTransport & Communications OtherExport finance

DBRB is the leading financial institution for state programs financing with around 50% stake of total

volume. From 2016 DBRB will act as a single coordinator for all state programs to be financed in Belarus

Loan portfolio dynamic (USD bn) / Breakdown / FX Structure

79.5

3.1

13.2

4.2

BYR USD EUR RUB

* ruble portfolio decreased significantly by reason of devaluation

0.5% 0.9%

7.6%

5.9%

7.6% 7.7%

6.5% 6.0% 5.8%

0%

3%

5%

8%

10%

2011 H1 2012 2012 H1 2013 2013 H1 2014 2014 H1 2015 2015

NPLs totaled 5.8% of DBRB loan portfolio as of 01.01.16 (transferred loans NPLs – 15.9%/ own loans NPLs – 0.09%). Average level of NPLs

in Belarusian banking industry – 6,5% (as of 01.01.16).

13

May 2016


PROJECTS MAP

Completed projects

14

Stadium construction in Borisov The only football stadium in Belarus authorized by

UEFA to held Champions League group stage

Reconstruction of the biathlon stadium “Raubichi” Junior Biathlon World Championship and “The Race

of Legends“ were held

Delivery of 2 Embraer 195LR jets for Belavia The first new aircraft wholly owned by the

national airline “Belavia“

Construction and reconstruction of 57 dairy farms

Increase in gross milk production up to 10 mln. ton and double increase in exports

The purchase of mechanized Tunnel boring machine

Will accelerate the construction of the third underground line in Minsk by 2.5 times

Dairy plant construction in Turov

A unique Belarusian plant producing cheese of European varieties

May 2016

2016: FINANCING PLAN COMPOSITION (MAJOR AREAS)

15

Industry Modernization ≈ USD 96 mln

Public Road Construction ≈ USD 33 mln

Agricultural Sector ≈ USD 95 mln

Export Finance ≈ USD 152 mln

Infrastructure ≈ USD 27 mln

Leasing ≈ USD 47 mln


SME Support ≈ USD 50 mln

USD 500 mln

Classic Lending Other Instruments

USD 200 mln expected to be raised on DCMs

Total state programs financing in 2016

USD 1.5 bn

DBBR’s share USD 0.5 bn

DBRB


USD 2 bn Construction of the third underground line in Minsk Line length: 17.2 km/ 14 stations Mission: environmental improvement and development of public transport in Minsk

USD 285 mln Second Minsk ring road construction

Total road length >160 km Mission: environmental improvement in Minsk

USD 150 mln Delivery of 3 Boeing NG737

jets for Belavia

Current projects

Projects in pipeline

EUR 94 mln Tractor Stadium construction in

Minsk

USD 18 mln Accumulator battery plant

construction 16

USD 200 mln Support of export of Belarusian equipment

Export to Mongolia, Cuba, Zimbabwe, Singapore Mission: entering new markets, export diversification

USD 400 mln Development of Sitnitsky field

USD 12 mln Construction of medical center

in Brest

PROJECTS MAP

May 2016


1.1% 2.0%

7.7%

29.4%

21.3%

38.5%

Agriculture

Forestry

Construction

Transport

Services

Industry

SME Support

Funds & Liquidity

Economic sectors breakdown

DBRB provides funding for 11 local partner banks to support projects and business

ideas of their SME clients

CORE BUSINESS

17

Joint program with the World Bank expected in

2016

May 2016

Loans & Lease for SME (since Aug,14)

442 Projects

USD 125 mln Total volume

70 % market share in 2015


SME Support (cont’d) CORE BUSINESS

18

May 2016

DBRB creates unique atmosphere in Belarus for growing new business

ideas and talents in SME area

«Start up» From 2015 DBRB considers «Start up» companies as

important part of SME support system

V International Entrepreneurship Forum (Nov 16-2015, Minsk )

Around 500 participants from SME business, World Bank, Belarus Top Officials

DBRB - official Arranger and Sponsor

«My Business» TV-Show Above 700 participants from different regions of Belarus

presented own business ideas. Hosted and sponsored by DBRB


ECAs Partner Banks

Activities on the International Capital Market

High Ratings by ECAs (= Sovereign Rating)

Established Credit Lines

To become partner #1 among Belarusian banks for foreign

institutions

CORE BUSINESS

19

May 2016

Financing of large investment projects

And more …

Established Risk Limits

No Guaranty Required


20

May 2016

We are only financial institution from Belarus with Rep. Office in London (UK)

Investors’ relations

Clients’ consultations

PR Events

Belarus export support

INTERNATIONAL PRESENCE


Export Finance Solutions CORE BUSINESS

Export finance geographic composition

Selected export brands

DBRB jointly with Promagroleasing (73% owned by DBRD, #1 international leasing operator in Belarus) provide around 90% of total Belarus export finance support

21

May 2016

2013 2014 2015

USD 11.7 mln USD 104.0 mln USD 269.2 mln


SOCIAL RESPONSIBILITY

«School bus» program – over 300 special buses for safe study trips and

traveling

Our Head Office building provides opportunities to show the biggest art

and culture objects

DBRB – Belarusian State University Strategic Cooperation Agreement, training and first

working place for talented students

«School Bus» as viewed by children (Katya, 7 years) The world’s biggest gobelin in DBRB HQ (May, 2014) DBRB – BSU SCA Signing Ceremony (June 6, 2014)

Being the leader in financial business DBRB pays special attention to social projects

22

Special program «Young tennis stars» Vera Lapko , junior Australian Open 2016

Champion

Exhibition of paintings from the Tretyakov Gallery General Partner

Soccer tournament «Development Cup»

for boys up to 17 ys old

May 2016


Annexes

May 2016


CG STRUCTURE (MANAGEMENT BOARD)

Sergei Roumas Chairman

Tatsiana Sasnouskaya First Deputy Chairperson

Natallia Yasinskaya Deputy Chairperson

Vasili Shved Deputy Chairman Mariya Arlouskaya

Chief Accountant

Dzmitry Lipski Head of Finance &

Economics

Alyaksei Zhyrankou Head of Active

Banking Operations

Siarhei Staliarchuk Head of International

Business

Pavel Dzik Head of Legal Department

Chairman Deputies Heads of business divisions

24

May 2016

Ivan Varenitsa Deputy Chairman


ASSETS TRANSFER HISTORY

During 2011-2014 DBRB has entered in the books USD 1.5 bn of assets from 2 biggest state commercial

banks

2011 2012 2013 2014

USD 0.3 bn USD 0.6 bn USD 0.5 bn USD 0.1 bn

25

May 2016


FIGURES

2015 2014 2013 2012 2011

Total Assets USD mln 2 608,5 3 156,7 3 333,7 2 814,9 1 855,3

Due from banks 136,1 173,2 167,0 316,7 2,1

Loans to customers 1 538,4 1 894,5 1 780,7 1 013,2 193,5

Securities available for sale 811,8 993,3 1 292,0 1 441,5 1 642,6

Property and other assets 122,2 95,7 94,0 43,5 17,1

Total liabilities and equity USD mln 2 608,5 3 156,7 3 333,7 2 814,9 1 855,3

Due to banks 365,6 288,5 133,1 0,0 0,0

Customers’ deposits 367,0 407,3 317,5 71,0 254,1

incl. Government’s deposits 353,3 402,5 298,8 71,0 254,1

Debt securities issued 995,8 1 445,0 1 793,2 2 170,7 1 642,7

Other liabilities 79,1 25,4 30,4 9,4 2,1

Equity 801,0 990,5 1 059,4 563,7 -43,6

incl. Share capital 723,9 938,3 938,8 356,9 3,5

BYR/USD, eop 18 569 11 850 9 510 8 570 8 350

0

1

2

3

4

5

6

01.01.14 01.07.14 01.01.15 01.07.15 01.01.16

%

32.6 35.0

17.4 18.7

0

10

20

30

40

01.01.2015 01.01.2016%

Development Bank

Banking system

ROA▲ I CAR ▼ (DBRB vs Banking System) by NAS

Consolidated statement by IFRS

26

May 2016


CREDIT RATINGS

DBRB Credit Ratings Fully Correspond to Belarus Sovereign

Ratings

Long-term IDR: 'B-‘ Short-term IDR: 'B‘ Outlook Stable Assigned on February 5th 2014 Affirmed on August 5th 2015

Long-term issuer : 'B-‘ Short-term issuer : 'B‘ Outlook Stable Assigned on September 4th 2013 Affirmed on July 30th 2015

The bank enjoys special legal status

Critical public policy role

Close association with authorities

Sizable capital buffers

Selected DBRB Key Strengths viewed by

RAs

27

May 2016


28

Woodworking enterprises

Toxic assets (2007-2015)

Selling a pool of toxic assets

(USD 650 mln)

Management mandate

Management

• Strengthening of corporate governance system • Development strategy adjusting • Marketing policy adjusting • Analysis and optimization of technologies applied • Operating capital management • Independent examination • Attraction of direct investors

*Repayment

The core objective of BRRB management is to improve efficiency of woodworking enterprises with a view to return of assets to the Ministry of Finance of the Republic of Belarus spent to purchase the toxic assets pool.

Ministry of Finance

May 2016

GOVERNMENT ADVISING

INTERNATIONAL BUSINESS TEAM Sergei Stolyarchuk Member of the Board Head of International Business Tel: +375 17 309 6647 Mob: +375 44 564 0041 E-mail: [email protected] Dzmitry Kuliashou Deputy Head of International Business Head of Trade and Structured Finance Tel: +375 17 309 6648 Mob: +375 29 193 0074 E-mail: [email protected] Alexandr Churilo Deputy Head of International Business Head of UK Representative office (London) Tel: +375 17 309 6850 Mob: +375 29 620 2002 E-mail: [email protected] Andrei Belkovets Head of Financial Institutions Tel: +375 17 239 1133 Mob: +375 29 193 0051 E-mail: [email protected]

This presentation was prepared by JSC «Development Bank of the Republic of Belarus», International business department. All estimates and opinions present in this presentation constitute our judgments as of the date of the presentation preparation and may be subject to change without notice.

This presentation is intended for your reference only and it may not be circulated, distributed, reproduced or disclosed (in whole or in part or in any manner whatsoever) to third parties without the prior written consent of JSC «Development Bank of the Republic of Belarus».


JSC «Development Bank of the Republic of Belarus»

220002, Republic of Belarus, 35, Masherova av., 220002, Minsk

SWIFT BRRBBY2X Fax: +375 17 292 7016

www.brrb.by

Documents

years in BELARUS! › assets › upload › present 2016 › BRRB ENG 29... · 2019-09-27 · 2016 • WB forecasts a 0.5% fall in GDP of Belarus in 2016 and it is projected to return