Презентация PowerPointThe leading privately-owned universal bank in St. Petersburg and...

Investor Presentation

June 2020

2

DISCLAIMER

• This presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquiresecurities of BSPB or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity in any jurisdiction. Neither this presentation nor anypart thereof, nor the fact of its distribution, shall form the basis of, or be relied on in connection with, any contract or commitment or investment decisionwhatsoever. The sole purpose of this presentation is to provide background information to assist the recipient in obtaining a general understanding of thebusiness of BSPB and its outlook.

• The information contained in this presentation has not been independently verified. The information in this presentation is subject to verification, completion andchange without notice and BSPB is under no obligation to update or keep current the information contained herein. Accordingly, no representation or warranty,express or implied, is made or given by or on behalf of BSPB, or any of its respective members, directors, officers or employees nor any other person accepts anyliability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connectiontherewith.

• This presentation contains "forward-looking statements" which include all statements other than statements of historical fact. Such forward-looking statementscan often be identified by words such as "plans", "expects", "intends", "estimates", "will", "may", "continue", "should" and similar expressions. Such forward-lookingstatements involve known and unknown risks, uncertainties and other important factors beyond BSPB's control that could cause the actual results, performanceor achievements of BSPB to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.Such forward-looking statements are based on numerous assumptions regarding BSPB's present and future business strategies and the environment in which BSPBwill operate in the future. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstancesthat may or may not occur in the future. These forward-looking statements speak only as at the date as of which they are made, and neither BSPB nor any of itsagents, employees or advisors intends or has any duty or obligation to supplement, amend, update or revise any of the forward-looking statements containedherein to reflect any change in BSPB's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements arebased. The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice.

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AGENDA

Overview

Strategic developments. Banking sector transformation.

Appendix. Financials

BSPB’s response to current situation

Why Bank Saint Petersburg?

4

IMPLEMENTED ACTIONS

Our Employees ca. 2500 of employees or 60% of headcount are on remote workplaces

70 branch network employees moved to call-center to manage increased amount of

incoming calls; 40 more are handling outgoing calls

CUSTOMER SECURITY AND COMFORT ARE OUR TOP PRIORITY

We are online

We are fully committed to helping our customers and supporting our employees to manage

through the coronavirus pandemic.

March April May

46/66 41/66 9/66

Gradual branch network reopening throughout the pandemicNumber of

branches

temporarily

closed

Digital

payments:

95% => 98-99%

Digital sales:

59% => 67%

Active digital

users share:

63%

Online operations:

80% => 82%

Mobile app

users share:

46%

Automated

decisions:

89% => 91%

June

3/66

5

STRONG POSITION IN CHALLENGING ENVIRONMENT

Strong Liquidity

Position

There is a lot of liquidity on the market; liquidity cushion is significant

One of the most liquid institutions on the market

Preserving Capital

Basel III Core Tier 1 CAR (N1.1) as at June 1, 2020, is 10.7%, which is a comfortable

level at the moment

Continued uncertainty about the full impact of the pandemic obliges the Bank to

curb loan portfolio growth expectations for 2020

AGM took a decision not to pay out dividends on ordinary shares for 2019.

Conditional on the economy stabilization we intend to consider the issue of dividends

in 2H 2020

Risk Management

The Bank takes all measures declared by the Government to support borrowers

Overdue loans ratio in 1Q 2020 is stable

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SUPPORT MEASURES FOR RETAIL CUSTOMERS

State payment

holidays program

(Federal law #106-FZ)

1’726 applications (incl. mortgages - 940, consumer loans – 627, car loans – 109)

Approval rate is 77%

Restructured loan portfolio amounted to RUB 1.1 bn (incl. mortgages - RUB 1’052 mln,

consumer loans – RUB 47 mln, car loans – RUB 10 mln)

Mortgage Subsidy

State Program

Up to RUB 8 mln in St. Petersburg and Moscow; up to RUB 3 mln – in Kaliningrad and

Novosibirsk

6.0% interest rate/down payment min 20%/up to 20 years

855 loans granted in total amount of RUB 2.4 bn

Other Solutions for

Retail Customers

E-registration of contracts for mortgages and escrow accounts (108 new e-contracts)

Online mortgage processing (475 online applications)

Expired banking card service continuation

Call center capabilities boosted thanks to relocation of branch network staff

BSPB’s own program

6’166 applications (incl. mortgages – 2’116, consumer loans – 3’314, car loans – 623)


Restructured loan portfolio amounted to RUB 3.8 bn (incl. mortgages - RUB 2.4 bn,

consumer loans – RUB 927 mln, car loans – RUB 295 mln)

7

SUPPORT MEASURES FOR SMEs

State payment

holidays program

(Federal law #106-FZ)

6-month tax, fees and debt holidays for SMEs

Total loan portfolio of affected SMEs is rather limited (RUB 2.3 bn or 0.7% of corporate

loan book)

Total amount of the loans for restructuring is less than RUB 300 mln

State program of

Payroll loan at 0%

Starting in May 2020

39 applications received (RUB 200 mln)

Additional support

measures

Reduced price for qualified signature issuance (200+ customers)

E-registration for corporate mortgages

Remote agreement for payroll services (44 new corporate customers)

Special offers for internet-acquiring: fees down to 1% for convenience (grocery,

pharmacy, clothing etc.) stores (applied for 30+ customers)

BSPB’s

restructuring efforts

172 applications


Total amount of the loans approved for restructuring is RUB 1.9 bn

BSPB’s own program

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SUPPORT MEASURES FOR BANKS

Deposit insurance charges cut from 0.15 % to 0.10% for 2020 – ca. RUB 600 mln

effect on P&L

Reduced provisioning for companies from affected industries

Reduced risk-weights on mortgage loans

Historical securities valuation for capital calculation purposes

Historical FX rate for capital calculation purposes

Applied by BSPB?

Yes

Yes

Yes

No

No

In accordance with CBR recommendations, FY 2019 dividends and share buy-back waived

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FY 2020 GUIDANCE UPDATE

Loan portfolio growth 12-15%

Cost of Risk 170-190 bp

Core Banking Margin flat

Costs growth 10%

C/I ratio 42%

ROAE 11-13%

Growth expectations curbed

Under review

Confirmed

Cost-cutting procedures launched

Cost-cutting procedures launched

Under review

Guidance as of March 12, 2020

PANDEMIC DURATION REMAINS THE CORNERSTONE OF UNPREDICTABILITY, PREVENTING US

FROM LONG-TERM PLANNING AND RELIABLE GUIDANCE

Our view as of June 26, 2020

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AGENDA

Overview





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BANK SAINT PETERSBURG AT A GLANCE

Regional leader

Focused on

the North-West

Operating and

Financial

Highlights

Note 1: According to InterfaxSource: In accordance with IFRS FS for 1Q 2020

The leading privately-owned universal bank in St. Petersburg and Leningrad region

Top-3 positon in the regional market

Client base: ca. 2,154,000 retail and 50,000 corporate customers 66 branches and outlets (primarily in St. Petersburg), 814 ATMs

15th largest bank by assets and 15th by retail deposits in Russia 1

Ratings: Moody’s Ba3 (Stable), Fitch BB (Negative), ACRA A(RU) (Stable)

As at April 1, 2020: Total assets: RUB 668.7 bn Total capital: RUB 97.1 bn Сapital adequacy ratio (RAS Basel III): Total capital – 14.2%, Tier 1 – 10.7% (as at

01.06.2020)

For 1Q 2020: Net income: RUB 1.6 bn (FY 2019: RUB 7.9 bn) Cost/Income ratio: 49.7% (FY 2019: 44.2%) ROAE: 7.9% (FY 2019: 10.2%) 3,795 employees

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SAINT PETERSBURG: THE DYNAMIC HOME MARKET

Geography

St. Petersburg and the Leningrad region population – 7 000 000

4th largest city in Europe

Economy

GRP growth consistently outperforms national average

Major trade gateway – sea and river ports

Industrial centre for car manufacturing, heavy machinery and shipbuilding

Gazprom HQ moving

Well developed construction sector

Cultural center and a major tourist destination

Host city of the World Cup 2018

Regional business model

Gross domestic/regional product, y-o-y growth Unemployment, % of economically active population

13

SHAREHOLDERS STRUCTURE

Shareholders Equity Structure Key Person

Comments

Alexander Savelyev

Chairman of the Management Board

Key person since 2001

The largest shareholder of the Bank

Public since 2007

First privately-owned Russian bank to complete a successful IPO

Best practice corporate governance (5 independent directorsout of 9 members in the Supervisory Board)

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CORPORATE VS. RETAIL BANKING

Loans, RUB bn Deposits, RUB bn

Corporate banking Retail banking

Key strategic priority

Core activity of the Bank (40-45% of revenues)

Key source of funding

Share of high yield loans (consumer loans + credit cards): 2020 target = 28% of loans to individuals (27% as of now)

• * Customer deposits are calculated as a sum of customer accounts and promissory notes (other debt securities issued)

Loans/Deposits Ratio 91%

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RETAIL BANKING

* Retail loans include mortgages, car and consumer loans.

Overdue loans include the whole principle of loan at least 90 days overdue.

All major retail lending products (mortgages,

car loans, unsecured loans) slowing down

Retail loan portfolio quality remains high

Mortgage loans

• Top-3 in regional mortgage lending market (Top-15 in Russia)

• Best Mortgage Bank Russia 2019 and Best Bank for Escrow Accounts Russia 2019 (by Global Banking and Finance Review Awards)

• The Best Retail Finance Product 2019 for escrow accounts (by RETAIL FINANCE AWARDS)

RUB bn

+1.6%

Retail loan portfolio quality

16

AGENDA

Overview





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STRATEGIC PRIORITIES (1/2)

Growing demand for a reliable privately-owned bank with fast and flexible decision making

Business model in SPB with maximal proximity to the customer is the main competitive

advantage of BSPB

Focus on NPS improvement

20% increase in the number of large corporates highly profitable for the Bank

Metrics

Rationale

Digitalization is the new normal for all banks

BSPB is one of the most efficient banks engaged in digital transformation

Top priority – to be among the digital leaders with moderate investments

90% automated credit decisions

90% online sales

Focus on Time-to-Market

Metrics

Rationale

The Bank aims to be…

…the best privately-owned

bank for corporates in the

regions of operation

…among the leaders in

online sales and

operations

18

STRATEGIC PRIORITIES (2/2)

Advanced EXIM operations infrastructure with limited geopolitics impact

Existing high expertise

Significant EXIM customers market penetration (36% in North-West region)

50% of the companies in North-West involved in EXIM activities

10% of EXIM trade in the region

To double EXIM operations revenues by 2022 (from RUB 1.5 bn to RUB 3.0 bn)

Metrics

Rationale

Moscow market allows significant growth potential

Business diversification

Metrics

Rationale

The Bank aims to be…

…among the leaders in

EXIM services

…the Bank of two capitals

40% share in the Bank’s corporate loan portfolio

10 000+ SME customers by 2022

19

EXPANSION BEYOND THE HOME REGION

Saint Petersburg

Representative office – August 2016Branch – December 2019

N. Novgorod

Rostov-on-Don

Planned

Moscow

KaliningradNovosibirsk

Opened in 1Q 2020

Ekaterinburg

Headcount: 30 people

As of YE2019: loan portfolio RUB 5 bn; FY2020E – RUB 11 bn

Retail – full range of products for payroll customers; FY2020E – RUB 0.8 bn of retail customer accounts

FOCUS: big and medium enterprises based in Sibir’ and Far East regions FOCUS: big and medium enterprises based in the South region

Headcount: 4 people

Full cycle of online operations; accounts are opened and kept in HQ

Flagship products: loans, EXIM servicesFY2020E: loan portfolio of RUB 3 bn

TBC TBC

Krasnodar

Opened in 1Q 2020

Novosibirsk Branch Rostov-on-Don/Krasnodar Representative offices

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THE LEAST BRANCH-DEPENDENT CLASSIC BANK

1 – incl. Pochta Bank branches, 2 – number of call-center specialists, couriers, branch network employees per 100 000 customers

Sources: IFRS, annual reports, investor presentations, CBR website, banks’ websites, mass-media

Number of branches per 100 000 customers

~115 employees2

~60 employees2

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OUR CLIENTS ACTIVELY MIGRATE TO DIGITAL CHANNELS

Client activity Digital sales

Branch-assisted client migration from offline to online

Recognized online UX: top 5Internet Bank according to 2019 UsabilityLab ranking

Convenient payment functionality in digital channels

Client payments are already online

Leading among classical banks in online sales

Sales transferred to digital channels by smart product offering, user friendly client experience and stimulating pricing

Ability to increase sales while decreasing branch network

• 1 Based on the report provided by one of the leading research company covering Russian banking market (2017-18)• 2 Share of total number of active customers within last 3 months

Digitally active clients2, % Digital payments, % Consumer loans, % Term deposits, %

Market average1

34%

72%

21%31%

22

UPCOMING CORPORATE AND IR EVENTS

AGM 2020 IR Events

The AGM 2020 decided not to pay FY 2019

dividends on ordinary shares

Fall 2020 – Investor Day 2020 in Moscow (TBC)

Mr. Yury Levin Independent memberCurrent positions: Professor, Stephen J.R. Smith Chair of Analytics

and Director of Analytics and AI Ecosystem; Director of Scotiabank Centre for Customer

Analytics.

Experience: member of BD at St.Petersburg Social Commercial Bank and RosEuroBank, managing director and head of branch at Standard and Poor’s

Information on new members of the Supervisory Board

Mr. Sergey NazarovEBRD nominee Current positions: JSC “Rating Agency “Expert RA”, Member of

the Board of Directors and the Management Board;

PJSC “SAFMAR finansoviye investitsii”, Member of the Board of Directors.

Experience: Senior lecturer, Professor and Distinguished Professor

in Analytics in Smith School of Business, Queen’s University, Founder and Director of Kingston Analytica;

23

AGENDA

Overview





24

WHY BANK SAINT PETERSBURG?

We are predictable We keep our promises - our performance reflects our guidance Unlike many Russian privately-owned banks we haven’t been involved in an uncontrolled growth and excessive risk taking

Our financial position is indisputably stable We passed 2014-2017 Russian banking sector shocks with no substantial problems In 2019 our rating was upgraded to BB with Stable outlook (Fitch) and to Ba3 with Stable outlook (Moody’s).

In April 2020, Fitch changed its outlook from Stable to Negative for 15 largest Russian private banks simultaneouslyIn June 2020, ACRA (Russian rating agency) confirmed its rating A(RU) with Stable outlook

We are transparent As one of the fewest Russian public banks we keep up being transparent and extremely responsible in decision-taking Best practice corporate governance

Healthy conservatism is our important feature We are 100% customer funded bank with no dependence on wholesale funding (Loan/Deposit ratio ~ 90%) Our risk appetite is moderate The volatility of financial result is very low Potential geopolitics’ impact on the bank’s business is very limited

and

The price growth potential is high (P/BV 0.23, P/E 3)

25

Resilient to market shocks

INVESTMENT HIGHLIGHTS

Significant upside for the stock

Clear strategy of a focused

regional bank

The leading privately-

owned universal bankin attractive

market

Advanced digital

solutions

The least branch-dependent classic bank in Russia

26

AGENDA

Overview





27

1Q 2020 FINANCIAL RESULT

RUB mln, %, YoY

+8.7%

+32.5%+12.2%

+18.9%

+16.4%

+23.4%

CBM

5.5%

20%

of Revenues

CoR

2.5%

CIR

49.7%

ROE

7.9%

28

PROFITABILITY

Net income dynamics, RUB mln ROAE/ROAA, %

+23%

29

REVENUES STRUCTURE

70%

14%

16%

RUB mln

+12.5%

75%

20%

0%

Impressive F&C y-o-y growth of 32.5%

Core banking dominates in the revenue structure

30

INTEREST INCOME STRUCTURE

RUB mln

Average interest rates on the assets side

-12.3%

Y-o-Y growth of core interest income

Less influence from trading

Significant loan portfolio growth in last decade of March affected average

interest rates (-0.4pp), NIM (-0.2pp) and Core Banking Margin (-0.3pp)

31

INTEREST EXPENSES STRUCTURE

RUB mln

Average interest rates on the liabilities side

-29.3%

Interest expenses on Term deposits of individuals = Term deposits of individuals + Contributions to Deposit Insurance System

Cost of funding goes down

32

NET FEE & COMMISION INCOME STRUCTURE 1/2

RUB mln

+32.5%

33

Corporate Net F&C income, RUB mln Retail Net F&C income, RUB mln

Source: Management accounts based on IFRSCash and Settlement transactions category is comprised of Settlement transactions, Cash transactions and Cash collectionsCustomers' FX category is comprised of Foreign exchange transactions adjusted for customer FX’ trading income Trading securities F&C income transferred to aggregate trading income

NET FEE & COMMISION INCOME STRUCTURE 2/2

+41.7%+14.4%

34

CORE BANKING VS TRADING

Core Banking Results, RUB mln

Aggregate trading results, RUB mln

3.5% 3.6% 3.8%3.7%Net Interest Margin

4.1%

5.8% 5.6% 5.7%5.8%Core Banking Margin

5.5%

-0.7% 0.7% 0.7%0.5%Trading Margin

1.0%

35

OPERATING EXPENSES 1/2

RUB mln

+16.4%

Property tax is excluded from other administrative and operating expenses and included in expenses related to premises and equipment

(FY17: RUB 120 mln; FY18: RUB 126 mln; FY19: RUB 89 mln; 1Q19: RUB 22 mln; 1Q20 RUB 25 mln).

Costs reclassified according to IFRS 16 – from other OpEx to OpEx related to premises and equipment

36

OPERATING EXPENSES 2/2

Cost-to-Income, % Cost-to-Assets, %

37

LOAN PORTFOLIO AND QUALITY 1/2

Loan Portfolio Coverage

+8.2%

L/D ratio remains consistently low

Loan portfolio growth +8% YTD (+4% YTD net of FX-revaluation)

RUB 0.8 bn of the loan portfolio written off in 1Q20

Starting from Apr. 1, 2018, problem loans include all lifetime ECL credit-impaired loans (stage 3) and loans impaired at initial recognition (POCI)

Before Apr. 1, 2018, problem loans included impaired not past due loans and 1-day+ overdue loans

38

Provisions, RUB mln Cost of Risk

LOAN PORTFOLIO AND QUALITY 2/2

Significant amount of provisions charged in 1Q20 is due to macro factors

recalculations (ca. RUB 0.9 bn of extra provisions)

Provision charge calculation: Provision for loan impairment + Net result on revaluation of financial assets at fair value + Net result from reflection of financial assets at fair value on initial recognition

Net of revised

macro factors

39

CUSTOMER DEPOSITS

Currency structure

2019 vs 1Q 2020Maturity structureCustomer deposits structure

+4.1%

60%

40%

59%

41%

40

CAPITAL (RAS, BASEL III)

Risk-Weighted Assets

(Tier 1 CAR), RUB bnCapital, RUB bn

+0.3%

+1.8% +11.0%

Basel III Core Tier 1 CAR (N1.1) as at June 1, 2020, is 10.7%, which is a comfortable level at the moment

audited

Capital Adequacy Ratios

non-audited audited non-auditednon-audited* non-audited

* 01.01.2020 Tier 1 CAR does not include 2019 net profit

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