Bank Vozrozhdenie Steady growth despite economy deceleration
Investor presentationApril 2013
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Agenda
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 shares included in MICEX Index
2013
Best Corporate Governance, Russia (World Finance)
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 In Each Stage Of Business Development
Vozrozhdenie Bank strategy…
… 1 522 000 Retail Clients…
… 61 400 Corporate and SME Clients…
… 21 Region
… 148 Offices
… 838 ATMs
… 6 173 employees
Focus On Core Banking Products
…service…
…via…
Increasing efficiency in service delivery
Vozrozhdenie Bank - 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 region of presence. Focus on the most attractive South and North-West
Branches Sub branches Retail offices
34 42 14 90Total
As of 01.04.2013
526 ATMs – every town is under coverage
19 37 2 58
Total
312 ATMs
Retail officesBranches Sub branches
Distribution network
7
* RBC most recent rankings
Key Figures, RUB
Assets
Loans
Customer Funds
Net Income
Shareholders equity
Retail Clients
Corporate Clients
Personnel
Offices
ATMs
209,062 mln
141,662 mln
163,876 mln
2,331 mln
20,807 mln
1,522,000
61,400
6,173
148
838
Loans to SMEs 4
17
32/19
29
8
Volume of retail deposits
Branches/ATMs
Net Assets
Bank cards issued
Rankings*
Corporate loans 22
Mortgages 8
Basic information & position in Russian banking system
8
TNS loyalty surveyLoyalty index equals top 10% of major international banks 94% of our clients are ready to recommend us
Ba3/D-/NP, stable
BB-/ruAA-, stable
MICEX Financial Index
A2 MICEX
Moody’s
Standard&Poor’s
Included in indices
Listing
IPSOS survey 85% of respondents in our regions know us
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
01/01/06 01/12/06 01/11/07 01/10/08 01/09/09 01/08/10 01/07/11 01/06/127
10
13
16
19
22
25
S&P international
BB-
Ba3Moody's
Moody's Interfax
Moody's
Aaa
Aa
A
Baa
Ba
B
Caa
S&P na-tional scale
S&P
ruAA-
AAA
AA
A
BBB
BB
B
CCC
Aa3.ru
Market recognition
Credit ratings Listing
High recognition of brand
World FinanceV.Bank has the “Best Corporate Governance, Russia”, according to World Finance survey
9
Business model
10
Personal bank for corporate and retail customers
Retail customers
Servicing throughout their whole life-cycle
Corporate clients
Servicing on each stage of business development
Focus on core banking products
Balanced Credit and Resource policies
Payrolls combine retail and corporate segments
Customer acquisition
Expansion of branches and ATMs network
Growth of individual depositors and borrowers number
Market strategy
11
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
59% 63% 60% 58% 64%
41%37%
40% 42% 36%
Non-interest income Net interest income
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
113 91 98 120 124
24 2628 31 33
137
Retail loans
Corporate loans
- Customer oriented organic growth
- Conservative balance sheet
- Primarily deposit funded
- Focused network expansion
- Increasing efficiency in service delivery
Note: all loans are gross loans
RUB bln
RUB bln
21%
79%
RUB bln
35%
65%
Business modelBusiness based on relationships… … gives stable non-interest income
Loan portfolio development… … funded by customer accounts
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
92 94 101 103 107
53 40 51 48 57
Interest-bearing Deposits
Interest-free Current accounts
12
Assets and liabilities
RUB bln
RUB bln
Q4'11 Q1'12 Q2'12 Q3'12 Q4'1210 10 10 10 10
101 106 111 107 110
23 25 27 30 329 14 12 12 81.0 0.4 0.4 0.4 5.840 29 34 35 43
184 183194 195
209
Cash and equivalents
Due from banks
Securities
Retail loans
Corporate loans
Other assets
…Reliable assets structure
…Loan book growth
…supported by customer-based funding
…with retail outperforming
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 201218 19 20 20 21
4 4 4 5 68 7 7 8 87 8 8 8 720 22 24 25 2633 31 32 30 3620 18 19 18 2172 72 77 78
81
184 183194 195
209
Retail deposits
Retail accounts
Corp. accounts
Corp. deposits
Securities issued
Due to other banks
Other liabilities
Subordinated loans
Equity
RUB bln
Q4'12Q3'12Q2'12Q1'12Q4'11
7777787470
22333
4541434140
3331282624
SME Administrations Large corporates Individuals
3,2%+
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
15.4 17.0 18.520.8 22.3
6.86.8
7.68.4 8.52.2
2.2
Mortgages Consumer and auto loans Credit cards
,13+8% +348,%4,7%+
RUB bln
13
Geographical diversificationCorporate loans
Corporate deposits
Retail deposits (without debit card accounts)
Retail loans
15%
37%
21%
13%
14%
Moscow Oblast
Moscow Other regions
RUB123,515
mln
South regions
North-West regions
26%
34%8%
28%
4%
Moscow Oblast
MoscowOther regions
RUB25,896
mln
South regions
North-West regions
24%
56%
10%
6%
4%
Moscow Oblast
Moscow
Other regionsRUB
81,014mln
South regions
North-West regions
29%
48%
9%3%
11%
Moscow Oblast
Moscow
Other regionsRUB
32,850mln
South regions
North-West regions
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 drinks.
Petrol stations networks – complex service of high-quality petrol, minimarkets and café, car washes and technical services.
Pharmacies networks – still healthy demand both for beauty products and medicines.
Food retailers– small chains of handy stores “Close-to-House” style for daily shopping located in dormitory area with high density of population.
Who are SMEs?What is our SME Definitions
15
14% 15%
43%
10%
32%
2%
6,9%
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
20 22 24 25 26
33 31 32 3036
53 5356 55
62Term Deposits Current Accounts
Q4'11 Q1'12 Q2'12 Q3'12 Q4'123 3 3
22
70 74 78 77 77
40 41 43 41 45
113118 124 120 124
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
13%
73%
up to 30 mln 30-100 mln 100-750 mln more than 750 mln
RUB blnLarge corporations SMEs Other
RUB bln
58%
42%
* as of December 31, 2012
01/12/12 01/01/13 01/02/13 01/03/13 01/04/13
50.9 61.7 61.2 61.1 59.6
5.54.5 4.5 5.0 4.4
56.466.2 65.8 66.0 64.0
RUR FX
36%
63%
1%
* under RAS
Corporate business Corporate lending – focus remains on SMEs… …with 68% of loans less than RUB 0,75 bln
Corporate funding... …mostly nominated in RUB
Share of portfolioShare of clients
16
up to 30 days
31-90 days
91-180 days
181 - 365 days
1 - 2 years > 2 years
5.4%
15.0%
22.0%
28.9%
15.3% 13.4%
Corporate portfolio
2,458,068
50,337,843
27,075,861
23,970,773
19,442,091
3,514,807
99,400,433
53,506,392 47,941,54
6
12,061,205
Loan amount
Collateral value
01/12/12 01/01/13 01/02/13 01/03/13 01/04/13
110.3 110.3 112.5 114.1 116.6
14.0 14.0 14.1 14.1 14.9
124.3 124.3 126.6 128.2 131.4
11.3%
RUB blnFX loansRUB loans
Real Estate
Government guarantees
Equipment & Vehicle
GuaranteesOther
collateral& blank
RUB bln
71%
- Average LTV of the portfolio is 59%* mostly collateralized by solid real-estate, equipment and vehicles (63% of total loans). Revision of collateral value is conducted on a quarterly basis.
- We provide our clients with working capital rather than long-term financing – 71% of corporate loans with maturity less then 1 year. It allows us to react on changing market conditions.
- Matching in terms of the loan currency and the client revenues is a core point. FX loans are issued only to customers related to export-import transactions.
*Guarantees are not taken into account
*as of December 31, 2012 *as of December 31, 2012
Key points…in the same currency as SMEs revenues
Conservative risk profileCredit policy sticks to reliable collateral… ….providing mostly working capital…
17
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
6.3 6.4 7.2 8.0 8.10.4 0.4 0.4 0.4 0.42.2 2.2 2.1 2.1 2.115.4 17.0 18.5 20.8 22.3
24.425.9
28.331.4
32.8
Retail lending – promising segment
01/12/12 01/01/13 01/02/13 01/03/13 01/04/13
29.1 13,4 25.2 25.6 26.3
0.40.4 0,7 0.4 0.4
29.525.6 25.6 26.0
26.7
01/04/10 01/10/10 01/04/11 01/10/11 01/04/12 01/10/12 01/04/135
10
15
20
25Consumer loans, RUB
Mortgages, RUB
Credit cards, RUB
up to 30 days 31-90 days 91-180 days 181 - 365 days
1 - 2 years > 2 years
0.0% 1.7% 0.7% 2.0%
14.2%
81.4%
Retail portfolio
1.4%
RUB blnConsumer loansMortgages Credit cards
Car loans
RUB bln
FX loans RUB loans
High-margin consumer loans to customers with apparent cash-flow –management of corporate clients
Primarily mortgages under state-related agency JSC “AHML” standards
We plan to further expand retail portfolio, which demonstrated stable growth driven by strong demand.
Particular focus is on mortgages as the most perspective segment with government support
*as of December 31, 2012
Retail loans maturityRetail loan book changes (IFRS)
Rates for retail loans Currency breakdown (RAS)
18
Card business – reliable source of non-interest income
Q2 2012 Q3 2012 Q4 2012 Q1 2013
Payrolls 12,800 13,500 14,000 14,200
Debit cards 1,341,684 1,360,845 1,381,959 1,360,308
Credit cards
45,671 45,471 46,646 48,297
ATMs 811 812 819 838
Corporate clients
Retail clients
- Payrolls
- Acquiring
- Self-service transactions
- Credit cards
70%18%
82%
Interest
Fees & commissions
- Payrolls is the main tool for client base growth with strong potential – 61,400 of existing corporate clients and 17,000 installed “client-bank” systems
- Offering cards only to existing corporate clients: credit cards for owners, top and mid-level managers and specialists, debit cards for personnel
- Pushing cross-sales between retail and corporate
1
32%
22%
19%
15%
12% acquiring
self-service
cash operations
Visa and Mastercard
payrolls
Key points…developing key card product - payrolls
…Generates strong fee incomeBusiness strategy…
19
Risk management
20
Risk management
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 28.02.13
11.9% 11.8% 11.6% 12.1% 12.3%
13.8% 13.4% 13.2%14.2%
14,9%
11.9%
Tier 1 Tier 1 + Tier 2
CAR (N1)under CBR rules
11%MIN
Capital position enhanced by subordination
FX structure
Maturity gap up to 5% of the balance
Interest rate risk
12,5%
Including RUB 1 bln of subord3rd tranche
Demand and less than 1 month
From 1 to 6 months
From 6 to 12 months
More than 1 year
0
10
20
30
40
50
60
70
80
AssetsLiabilities
RUB bln
Demand and less than 1 month
From 1 to 6 months
From 6 to 12 months
More than 1 year
0
10
20
30
40
50
60
70
80Interest-earning assetsInterest-bearing liabilities
RUB bln
82%
1420 1
Assets
Loans
Due from banks&Securities&Cash
81%
2843
Liabilities
DepositsDue to banks&SecuritiesOther liabilities
Roubles
FX
Roubles
FX
RUB bln
21
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 20121,980 3,400 3,400 5,445 5,445
8.7%8.9% 10.1% 12.2% 11.9%
4.9%8.3% 8.0%
13.2%12.2%
Large corporates
NPLs, RUB mln Provisions, % of total portfolioNPLs, % of total portfolio
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
827 827 777 965 892
4.4%4.3%
3.6% 3.5% 3.5%
3.4% 3.2% 2.7%3.1% 2.7%
Retail
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 20127,769 8,263 8,120 7,841 7,765
11.5% 11.1%10.4% 10.5% 10.5%
10.7% 10.8%
10.0%9.9% 9.8%
SMEs
Credit quality management
15
* 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
Q4 2012Q3 2012 Q2 2012Q1 2012Q4 2011
1.17%
2.86%
2.24%
1.02%
1.92%1.83%
2.06%1.65%
1.02%1.77%
Charges to provisions to avg gross loans, QoQCharges to provisions to avg gross loans, YtD
+ Rub 275 mln new NPLs- Rub 351 mln recoveries
+ Rub 111 mln new NPLs- Rub 184 mln recoveries
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
10,576 12,490 12,297 14,251 14,102
9.44% 9.25% 9.09% 9.52% 9.40%
7.70%
8.68%
8.08%
9.41%9.02%
NPLs, RUB mlnProvisions, % of total portfo-lio
*
No changes
NPLs categorization: absolute improvement in SME and retail
Annualized cost of riskNPLs dynamics
22
Credit qualityas of 31.12.2012
Large corporates
SMEs Mortgages Other retail
Total
Gross loans, including 44 587 78 928 22 302 10 548 156 365
Current loans 87,8% 90,2% 98,3% 95,2% 91,0%
Past-due but not impaired, of them - 0,2% 1,1% 0,8% 0,3%
Less than 90 days - 0,2% 0,2% 0,7% 0,2%
Over 90 days - - 0,9% 0,1% 0,1%
Impaired, of them 12,2% 9,7% 0,6% 4,0% 8,7%
Less than 90 days - 0,1% - 0,3% 0,1%
Over 90 days 12,2% 9,6% 0,6% 3,6% 8,7%
Total NPLs 12,2% 9,8% 1,7% 4,8% 9,0%
Provisions -11,9% -10,5% -2,7% -5,2% -9,4%
Net Loans 39 296 70 671 21 691 10 004 141 662
Provisions to NPLs Ratio
NPL -
104%
Rescheduled Loans
5.6%
the whole amount of loans with principal overdue for more than 1 day as well as loans with any delay in interest payments.
Provisions to 90 days+
NPLs
107%
RUB mln
23
Recent IFRS results
24
Financial highlights
FY’12 FY’11 Q4’12 Q3’12
Interest income 16 611 13 959 4 461 4 263
Interest expense (7 553) (6 503) (2 067) (2 010)
Fee and commission income 5 503 5 232 1 474 1 424
Fee and commission expense (442) (410) (150) (104)
Other operating income 674 611 25 302
Total operating income b.p. 14 793 12 889 3 743 3 875
Operating expenses (8 652) (8 353) (2 421) (2 051)
Provisions (2 722) (2 304) (451) (1 083)
Provisions on non-core assets (449) (216) (133) (2)
Tax (639) (422) (194) (156)
Net profit 2 331 1 594 544 583
25
2011 2012
-6,503.0 -7,553.0
13,959.016,611.0
Interest ExpensesInterest Income
+4.6%
Revenues from core business
Q1 2012 Q2 2012 Q3 2012 Q4 2012
-1,620.0 -1,856.0 -2,010.0 -2,067.0
3,769.0 4,118.0 4,263.0 4,461.0
Q1 2012 Q2 2012 Q3 2012 Q4 2012
2,149.0 2,262.0 2,253.0 2,394.0
1,126.01,291.0 1,320.0 1,324.0
127.0220.0 302.0 0,03
…driven mostly by interest incomeOperating income up…
Net fee income breakdown Segment structure of core revenues
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
414326 377 391 408
337256
304 300 301
253
219250 265 224
364
325360 364 391
1,368
1,1261,291 1,320 1,324
Settlements Cash transactions Other Cards RUB mln
+0.3%-3.2%
71%
21%
3%5%
Cards
Other Corporate business
Retail business
Cards
Other
Corporate business
Retail business
Interest income Non-interest income
2011 2012
7,456.09,058.0
4,822.0
5,061.0
611.0
674.0
Net interest income Net feesOther income
+14.8%
52%
16%
27%
5%
RUB bln RUB bln
26
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
5.7% 6.3%7.2% 7.6%
6.7%
5.1% 5.3% 5.8% 6.1% 6.4%
0.2% 0.1% 0.1% 0.1% 0.1%
Corporate term depositsRetail term depositsCurrent accounts
NIM gains on repricing of loans and depositsLoan yields surged forward… …outpacing cost of deposits
NIM decompositionSpread dynamics
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
10.3% 10.3% 10.8% 10.9% 11.3%
15.7%14.8% 14.9% 14.9% 15.4%
3.4%5.3% 6.1% 5.3% 6.4%
Yields on corporate loansYields on retail loans
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
7.1% 6.9% 6.7% 6.7% 7.1%
10.7% 10,9% 11.2% 11.4% 11.7%
3.7% 4.0% 4.4% 4.7% 4.6%
Interest SpreadYield on earning assets (net)Cost of funds
2011 2012
4.3%
4.7%
Loans Deposits Other Base effect
+0,44%
-0,10%
-0,05%
-0,18%
Q1 2012 Q2 2012 Q3 2012 Q4 2012
4.68% 4.80% 4.64% 4.74%
+46 bps
27
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
1,352 1,258 1,260 1,236 1,357
193 145 191 155209
440300 351 335
397
420339 336 325
458
Personnel expensesAdministrative expensesRent & Costs related to premises and equipmentOther
Cost efficiency in focus
RUB mln
+18%+0.7%
Staff expenses composition
Operating efficiency dynamics CIR on way to improvement
Operating expenses breakdown
2009 2010 2011 2012
48.7%
72.5%
64.8%
58.5%
50.0%
37%22%
38% 37% 40%
13% 51%49% 54% 50%
50%27%
14% 9% 10%
Salary Benefits Bonuses
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
-2.4-2.0
-2.1 -2.1 -2.4
3.8 3.4 3.8 3.9 3.7
64.0%60.0%
56.7%52.9%
64.7%
Operating expensesOperating income before provisionsCost/Income
Mid-term target
RUB bln
28
-2,304.0 -2,722.0
4,536.06,141.0
Operating profit before provisions and taxesProvisions
Q1'12 Q2'12 Q3'12 Q4'12
-358.0 -830.0-1,083.0
-451.0
1,360.01,635.01,824.0
1,322.0
Solid earnings generation capacity
2011 2012
2008 2009 2010 2011 2012
23.3%
7.8%
3.5%
9.1%
11.9%
2008 2009 2010 2011 2012
2.45%
0.88%
0.38%
0.91%1.21%
Net profit developmentOperating profit
ROA, %ROE, %
1,594.0
2,331.0
Q1'12 Q2'12 Q3'12 Q4'12
526.0678.0
583.0 544.0
2011 2012
+35% +46%RUB blnRUB bln
29
Capital structure
30
32% 30%
38%
SHAREHOLDER STAKE IN EQUITY
Dmitry L. Orlov (Chairman of the Board of Directors) 32.03%
Otar L. Margania (Member of the Board of Directors) 19.67%
JPM International Consumer Holding Inc. 9.88%
Total 61.58%
As per MICEX data
H1 2010 H2 2010 H1 2011 H2 2011 H1 2012 H2 2012
MICEX 762,594 744,081 551,544 892,502 1,966,722 535,131
RTS 220,714 186,333 65,303 82,098 50,437 30,230
German stock exchanges (ADR)
33,358 24,054 13,444 3,255 3,685 7,300
Sub-total (stock exchanges)
1,016,666 954,468 630,291 977,855 2,020,844 572,661
OTC 903,256 1,109,859 1,080,856 2,141,597 873,225 1,421,277
Total 1,919,922 2,064,327 1,711,147 3,119,452 2,894,069 1,993,938
Chairman
Others
Structure as of 11.05.2012
More than 8,000 individuals and 1,000 companies are among our shareholders with professional investors owning more than 38%
*Volume growth associated with strategic deals
Capital structure
Share price on MICEXShareholding structure
Volumes of trading (shares)Major shareholders
1/1/12 1/3/12 1/5/12 1/7/12 1/9/12 1/11/12 1/1/13100
1,000
10,000
100,000
0
360
720
1,080
1,440
1,800
Volume Last price
Shares Roubles
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
CHAIRMAN OF THE MANAGEMENT BOARD
Mr. Alexander Dolgopolov
GENERAL MEETING OF
SHAREHOLDERS
BOARD OF DIRECTORS
12 members
9 are non-executive 6 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
The most shareholder transparent bank
in Russia – 2006, 2007, 2008
Dmitry Orlov is included in top10 of the best bank’s
managers 2009
HR and Compensation
Committee
Continuing excellent reputation recognition:
AUDITORPricewaterhouseCoopers
Audit commission
Audit committee
Internal Control and Audit Service
Risk Management
MANAGEMENT STRUCTURE
MANAGEMENT BOARD13 members
5 Deputy Chairmen
The arrows represent the authorities to appoint or elect the relevant Bank’s bodies and the External Auditor
High level of corporate governance
V.Bank has the Best Corporate Governance in Russia, 2013
32
Successfully passed through recent crises (1993-94,1998, 2004, 2008)
Business model generating solid fees & commissions (40% of revenue)
20 years of organic growth focused on core regions and clients
One of the most transparent FI in Russia - №1 in Information Transparency to Shareholders by S&P 2007, 2006
Management Board (13 members) totally has more than 200 years of banking experience leading by Chairman with 40 years in Soviet and Russian banking systems
Moody’s Ba3 (Stable) confirmed in Nov’10, S&P sticks to BB- (Stable) upgraded in Sept’11
Positive track-record of communication with investors
Loyal clientele due to strong relationships with the customers
60% of client base is concentrated in fast growing Moscow Oblast
Corporate business focused on high-profitable SME, retail one – on mortgages
Broad product line based on advanced IT-solutions
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
Financial markets turbulence
Threat of global economy slowdown
Still high potential credit risk
Investment Summary
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http://www.vbank.ru/en/investors
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Investor Relations contacts
Yulia Vinogradova, Advisor to the Chairman
Elena Mironova, Deputy head of IR
Maria Gorbunova, IR specialist
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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.
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