VTB investor presentation 11M2019 ENGVTB at a Glance Macro Environment in Russia Strategy and...

INVESTOR PRESENTATION

February 2020

This presentation has been prepared by VTB Bank (PJSC) (“VTB”) and has not been independently verified. This presentation does not constitute or form part or all of, and should not be construed

as, any offer of, or any invitation to sell or issue, or any solicitation of any offer to purchase, subscribe for, underwrite or otherwise acquire, or a recommendation regarding, any shares or other

securities representing shares in, or any other securities of VTB, or any of its subsidiaries, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in

connection with, any contract or any commitment whatsoever or any investment decision. Some of the information in this presentation may contain projections or other forward-looking statements

regarding future events or the future financial performance of VTB and its subsidiaries (together with VTB, the "Group"). Forward-looking statements are statements that are not historical facts. They

include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the

management of VTB. Such forward-looking statements are based on numerous assumptions, beliefs and expectations regarding the Group's present and future business strategies, financial

conditions, targets and the operating environment. 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 materially differ 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 assume no obligation to update or revise these statements whether as a result of new

information or for any other reason or to make them conform to actual results. Certain numbers and ratios contained herein, related to past dates and periods, might have been restated in

accordance with the latest financial statements issued, and hence differ from the ones presented in the previous communications. Figures shown in this presentation are based on figures disclosed

in the annual and interim financial statements of the Group. However, figures used in this presentation might have been rounded, which could result in slight differences in percentage changes

compared to those provided in such financial statements.

VTB at a Glance

Macro Environment in Russia

Strategy and Guidance

Business Overview

Appendix

Transformation

9

12

4

15

19

23

4

VTB AT A GLANCE

VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCE APPENDIXMACRO TRANSFORMATION 5

▲ - YTD CHANGE

OVERVIEW OF VTB GROUP

VTB Group

17

EMPLOYEES

84

BRANCH NETWORK

1.7

GLOBAL PRESENCE

countries

18.7%

21.5%

LOANS TO

INDIVIDUALS

16.4%CREDIT RATINGS

BBB-

Moody’s

CLIENT BASE

14

ATMsASSETS

15.7

▲10bp▼ 30bp

▲ 110bp ▲110bp

▲20bp

MARKET SHARE AS OF 30-NOV-19

MORTGAGEDEPOSITS OF

INDIVIDUALS

MARKET CAPITALISATION

ASSETS CORPORATE

LOANS

CORPORATE

DEPOSITS

in Russia

23.8%

17.4%

15.1%

15

thsd

in Russia

RUB trln thsd

in Russia

ruAAA

Baa3

9.7USD bn

thsd

mln banking

clients

in Russia

▲80bp

AS OF 25-DEC-19

AS OF 30-NOV-19

AS OF 30-SEP-19 AS OF 30-SEP-19

AS OF 30-SEP-19

AS OF 30-SEP-19

AS OF 30-NOV-19

AS OF 31-OCT-19


VTB OWNERSHIP STRUCTURE AND CAPITAL COMPOSITION

STRUCTURE OF EQUITY CAPITAL

FREE FLOAT

39.1%

FEDERAL AGENCY FOR STATE

PROPERTY MANAGEMENT

60.9%

ORDINARY SHARES (HELD BY FEDERAL AGENCY

FOR STATE PROPERTY MANAGEMENT)

12.1%

ORDINARY SHARES IN FREE FLOAT

7.8%

PREFERENCE TYPE 1 SHARES

(HELD BY MINISTRY OF FINANCE OF

THE RUSSIAN FEDERATION)

32.9%

PREFERENCE TYPE 2 SHARES

(HELD BY STATE CORPORATION

DEPOSIT INSURANCE AGENCY)

47.2%

STATE-OWNED

92.2%

19.9%

INSTITUTIONAL INVESTORS

35.5%

INDIVIDUAL INVESTORS

3.6%

DATA AS OF 08-OCT-19

STRUCTURE OF VOTING RIGHTS

+50 bp ytd

VTB INDIVIDUAL SHAREHOLDER BASE

IS RAPIDLY INCREASING

LISTING OF VTB ORDINARY SHARES AND GDRs

% OF FREE FLOAT

+4.4 pp

DIVIDEND HISTORY

PAYOUT RATIO

IFRS

2014 2015 2016 2017 2018

DIVIDEND YIELD

91%

2,250%

67% 90% 73% 12%

1,947% 121% 61% 15%

2.1% 1.6% 1.7% 5.5% 2.4%ORD. SHARES

TYPE 1 PREFS

TYPE 2 PREFS

RAS

1.3% 0.04% 5.2% 5.5% 2.4%

N/A 5.8% 11.7% 5.5% 2.4%

≈ 90thsd

≈ 89thsd

≈94 thsd

≈121thsd

≈159thsd

2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9Dec’2019

3.3% 3.1% 4.2%7.8% 7.7%


REPORTS

VTB CORPORATE GOVERNANCE SYSTEM

APPROVES

ELECTS

REPORTS

REPORTSELECTS

ELECTSELECTS

ELECTS

ELECTS REPORTS

REPORTS AND PREPARES

RECOMMENDATION


RECOMMENDATION

REPORTS


RECOMMENDATION

ELECTS

APPROVES

Andrey Kostin

President and Chairman

of VTB Management Board

Anton Siluanov

Chairman

of VTB Supervisory Council

Minister of Finance

of the Russian Federation

SUPERVISORY COUNCIL

11 MEMBERS

INCLUDING 4 REPRESENTATIVES OF MINORITY SHAREHOLDERS

MANAGEMENT BOARD

14 MEMBERS INTERNAL AUDIT

DEPARTMENT

AUDIT

COMMITTEE

STRATEGY AND

CORPORATE

GOVERNANCE

COMMITTEE

STATUTORY AUDIT

COMMISSION

GENERAL MEETINGOF SHAREHOLDERS

INDEPENDENT AUDITOR

STAFF AND

REMUNERATION

COMMITTEE

CORPORATE

SECRETARY

REPORTS


VTB GROUP OPERATING MODEL IN LINE WITH BEST GLOBAL PRACTICES

CORPORATE-INVESTMENT

BANKINGRETAIL BUSINESS MEDIUM AND SMALL

BUSINESS

#1 Investment bank and #2 Corporate bank in Russia

RUB 7,766 BN RUB 1,787 BN

BUSINESS WITH LARGE CORPORATE

CLIENTS

Broad corporate client base (coverage

BUSINESS WITH INDIVIDUALS BUSINESS WITH SMALL CORPORATE

AND MID-CORPORATE CLIENTS

wide regional franchise

Over 1.7 thsd branch network and 13 mln clients in Russia

with leading Russian companies across

CORPORATE CENTER

ADMIN HRSTRATEGY

OPERATIONS PR

AUDIT AND COMPLIANCE

MARKETINGRISK

MANAGEMENT

CONTROL SUPPORT

c

LEGALSECURITY

ITFINANCE

RUB 5,646 BN

all economic sectors

c. 500 thsd mid-corporate banking clients

11M’19

ASSETS

and c. 17 thsd ATMs, JV with the Russian Post:

#1 retail franchise in Russia (c. 18 thsd retail

outlets and c. 5 thsd ATMs

and small business clients

of Post Bank)

in Russia >80%) with long-term relationships

9

MACRO ENVIRONMENT IN RUSSIA


0.7

-2.3

0.31.6 2.3

0.7 1.1

-1.5

-10.1

-0.2

4.8 4.3

0.6 0.72,5

-0.8

2.2 2.12.9 2.6 2.72.7

-10.0

-4.8

1.32.8

1.8 1.4

2014 2015 2016 2017 2018 6M'19 9M'19

7.9%

12.6%10.6% 9.1%

7.4% 7.4%

MACRO ENVIRONMENT IN RUSSIA (1/2)

CPI DEC / DEC

USD/RUB (CBR, AVG)

OIL PRICE (URALS, AVG)

CBR KEY RATE (AVG)

FOR 11M’19 NOV / NOV

OIL PRICE USD AND EXCHANGE RATE RUB INFLATION AND CBR KEY RATE

RUSSIAN MACROECONOMIC INDICATORS %

Actual: 6.00%

97.6

51.0 41.6 53.169.7 63.8

2014 2015 2016 2017 2018 11M'19

38.0

60.7 66.958.3 62.5 64.9

11.4% 12.9%

5.4%2.5% 4.3% 3.5%

2014 2015 2016 2017 2018 11M'19

GDP

INVESTMENTS IN FIXED CAPITAL

INDUSTRIAL PRODUCTION

RETAIL TURNOVER

1H’2019

VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCE APPENDIXMACRO TRANSFORMATION 11VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCE APPENDIXMACRO TRANSFORMATION 11

LOANS TO INDIVIDUALS

(% OF GDP)

EASTERN

EUROPE & CIS1

TOTAL

RETAIL

CORPORATE

MACRO ENVIRONMENT IN RUSSIA (2/2)

(1) Poland, Czech Republic, Slovakia, Hungary, Croatia, Bulgaria, Romania, Slovenia,

Serbia, Ukraine, Georgia, Belarus, Kazakhstan

LOANS DEPOSITS

11M’19 MARKET

11.0% 4.8%

11.0% 4.0%

10.9% 5.5%

6.1% 3.8%

17.3% 14.4%

1.9% 0.0%

MARKET

RUSSIAN BANKING SECTOR

DYNAMICS

RUB BN

CORPORATES INDIVIDUALS

1.3%

2.8%

4.9%

5.7%

6.2%

0.5%

0.4%

1.3%

1.2%

1.2%

1.1%

1.1%

0.7%

0.7%

0.7%

4.3%

4.5%

5.9%

5.6%

6.2%

7.2%

8.8%

12.8%

13.2%

14.3%

2006

2010

2015

2017

2018

х 4.8

Mortgage CarsCards

▲

RUSSIA

Consumer & other

7.3%

12.2%

12.3%

12.3%

12.9%

9.6%

11.3%

9.3%

9.4%

9.6%

16.9%

23.6%

21.5%

21.7%

22.5%

2006

2010

2015

2017

2018

х 1.8▲

5Y CAGR

6.3% 6.8%

7.5% 11.1%

5.8% 5.4%

TOTAL

RETAIL

CORPORATE

13.0% 8.9%

16.2% 9.2%

10.9% 8.7%

3 794

9 818

23 219

25 987

28 460

29 597

3 905

10 881

27 923

27 004

31 424

33 167

2 065

4 085

10 684

12 174

14 901

17 475

5 909

14 849

36 173

34 786

38 947

39 680

2006

2010

2015

2017

2018

11M'19

(1) 11M Growth Rate for VTB is based on gross loan portfolio

(2) 5Y CAGR calculations are based on 9M’2014 and 9M’2019 financial data.

6.2%

22.5%14.3%

12.9%

12

STRATEGY AND GUIDANCE


KEY VTB GROUP STRATEGIC PRIORITIES FOR 2022

STRATEGIC

PRIORITIES

LEADERSHIP IN CUSTOMER SATISFACTION

AMONG PEER BANKS

FOCUS ON CLIENT-CENTRICITY

BREAKTHROUGH

IN DIGITALIZATION

● 100% PAPERLESS WORKFLOW

● >50% SALES VIA DIGITAL CHANNELS (RETAIL&SME)

● 100% PRODUCTS AVAILABILITY DIGITAL

BUILDING A ROBUST AND AGILE

OPERATIONAL AND TECH

PLATFORM

CREATING HIGHLY EFFECTIVE

ORGANIZATION & CULTUREBETTER PERSONNEL ENGAGEMENT

MOTIVATED AND EFFICIENT TEAM

EXEMPLARY TIME-TO-MARKET 24/7 ACCESSIBILITY

SET UP & ROLL-OUT

IN DIGITAL ECONOMY

A LEADER IN SELECTED ECOSYSTEMS

FINANCIAL

COMMITMENTS:

ROE

CIR

DIVIDEND

PAYOUT

NET

INCOME

15%

300bn

32%

50%

Р

2022


2019 GUIDANCE

NET PROFIT

LOANS

In line

CORPORATES

INDIVIDUALS

INDUSTRY

Above

CoR

CIR

NIM

≈ 1%

≈ 3.4%

≈ 40%

MARKET GROWTH

UP TO 20%

MARKET GROWTH < 5%

Р

BN

≈ 200

15

RESHAPING THE BOUNDARIES

OF TRADITIONAL BANKING BUSINESS


20162004 2005 2008 2010 2011 2013

LEGAL MERGER WITH

VTB BANK (MAY’16)

ORGANIC GROWTH

M&A DEALS

2018

LEGAL MERGER WITH VTB

BANK (JAN’19)

LAUNCH OF POST BANK

GUTA BANK PROMSTROIBANK

LETO BANK

BUILD-UP OF TRADITIONAL BANKING PLATFORM: MIX OF MERGERS

AND ORGANIC GROWTH

STARTING FROM 30 SEPTEMBER

2018, POST BANK IS ACCOUNTED

AS JV

VTB ACQUIRED

CONTROLLING

STAKE IN

VOZROZHDENIE

BANK (OCT’18)

VTB ACQUIRED CONTROLLING

STAKES IN WEST SIBERIAN

COMMERCIAL BANK AND

SAROVBUSINESSBANK (JAN’19)

2019


VTB GROUP TRANSFORMATION

1. DIGITALIZATION 2. TECHNOLOGIES

SETTLEMENTS

AUTHENTICATION

& BIOMETRICSTRANSACTIONS

AGILE

AI &

ROBOTISATION

COMMUNICATION

OPEN API

OTHER

DevSecOpsVTB CLOUD

DATA

MONETIZATION

3. ECOSYSTEM

Client

BECOMING NEW ELEMENT OF CLIENT

LIFESTYLE

RESTRUCTURING TRADITIONAL BANKING FUNCTIONS

TO CREATE AND ADOPT PRODUCTS AND SERVICES

TO VTB ECOSYSTEM

MAXIMIZING SALES THROUGH DIGITAL

CHANNELS

LIFESTYLE

BANKINGMOBILE

HOUSING

ECOSYSTEM

B2B

KEY ELEMENTSKEY

TECHNOLOGICAL

CHANGES

2019 2022

FISCAL

DATA


MY SMART CITY APP

►FIRST APP COMBINES CITY

SERVICES OF MOSCOW

GOVERNMENT AND VTB

►INTEGRATION WITH PORTAL OF

PROVIDERS (PUBLIC PROCUREMENT) SINGLE

SIGN ON

►VTB SMALL SIZE PROCUREMENT

(<1 MLN RUB)

FIRST STEPS IN ROLLING OVER VTB ECOSYSTEM

B2B PLATFORM FOR

SME

B2B BUSINESS

CONNECT

“EXPORT MANAGER”

SERVICE

IN PARTNERSHIP

WITH TELE-2

LAUNCH: SEP 2019

PROCUREMENT

LIFESTYLE

BANKING

HOUSING

ECOSYSTEM

LAUNCH: WINTER

2019

NEW DIGITAL PLATFORM FOR FULL

CYCLE OF REAL ESTATE SERVISES

BICYCLE RENTAL ►4.25 MLN RENTS IN 2018

►ACCELERATION WITH

RUSSIAN EXPORT CENTER

POTENTIAL

PARTNERSHIP

MULTI-BONUS►LOYALTY PROGRAMME

MARKET PLACE FOR

SEIZED PROPETY SALE

LAUNCH: AUG 2019

INSURANCE

Client

FULL LAUNCH : 2020

MARKET PLACES

- PLAN - LAUNCHED

“DIGITAL MORTGAGE”

SERVICE

MOBILE

OCT: CONNECTED TO THE NEW- BUILT

APPARTMENTS DATABASE OF VTB

HOUSING ECOSYSTEM

FISCAL DATA OPERATOR

AUG 2019

LAUNCH: SEP 2019

19

BUSINESS OVERVIEWTHE P&L STATEMENT COMPONENTS HAVE BEEN COMPARED WITH MODIFIED FINANCIAL RESULTS FOR 11 MONTHS 2018 FOR THE

PURPOSES OF ACCURACY OF THE YEAR-ON-YEAR ANALYSIS (REVENUES AND EXPENSES OF VTB BANK (BELGRADE) JSC, “POST

BANK”, PJSC AND “MULTICARTA”, LLC AND OF ALL COMPANIES WITHIN VTB INSURANCE GROUP HAVE BEEN EXCLUDED AS IF THESE

COMPANIES HAVE NOT BEEN CONSOLIDATED BY THE GROUP DURING 2018; GAIN / LOSS HAS RECOGNISED ON DISPOSAL OF

SUBSIDIARIES REFLECTED IN THE LINE “GAINS FROM DISPOSAL OF SUBSIDIARIES AND ASSOCIATES” HAVE NOT BEEN ADJUSTED).


RUB BN

7.1%

7.9%

4.4%

5.1%

4.7%

4.2%

2,758 (18.7%)

3,205 (20.4%)

7,933 (53.7%)

7,927 (50.6%)

11.4%

11.8%

1.6%

1.5%

2.0%

2.6%

13.3%

8.7%

4,408 (33.3%)

4,892 (34.8%)

5,996 (45.3%)

6,652 (47.4%)

4.5%

5.0%

43.0%

48.3% 18.0%

MEASURED BUSINESS GROWTH WITH FOCUS ON PRIORITISED SEGMENTS

AND STRENGTHENING BALANCE SHEET

ASSETS

LIABILITIES

CASH

SHORT-TERM FUNDS

MANDATORY RESERVES

SECURITIES

DUE FROM

LOANS TO CUSTOMERS (NET) OTHER ASSETS

15 677

14 761Retail Corporate

31-Dec-18

30-Nov-19 14 049

13 238

DEPOSITS

OTHER LIABILITIES

Retail Corporate

DUE TO

AND OBF

CUSTOMER DEPOSITSSECURITIES

ISSUEDSUBORDINATED

DEBT

82.2%LDR 96.4%NET LOANS / DEPOSITS

30-Nov-19

31-Dec-18

SME 1,522▲13.0%MORTGAGE flat

1,653▲14.6%

CONSUMER▲14.9%

▲10bp

1,471

▲360bp▼640bp

Gross

▲ - ytd change


15.6% 15.3% 12.6% 16.6%

54

123

182200

2016 2017 2018 2019

3.8%

8.5%

12.5% 12%

STAFF &

ADMINISTRATIVE

COSTS

399.4 88.4 43.9 531.7 -95.0 -226.4 -44.9

POSITIVE TREND IN PROFITABILITY

NET PROFIT

WE EXPECT IMPROVEMENTS IN NIM AND NII DYNAMICS

IN DECEMBER’19 FOLLOWING

THE REDUCTION OF COR AND TOTAL PROVISION CHARGE

REFLECTS THE IMPROVING ASSET QUALITY

ACROSS ALL BUSINESS LINES

1) THE INCREASE WAS LARGELY CAUSED BY

ACQUISITION AND SUBSEQUENT CONSOLIDATION

OF THREE BANKS (ZAPSIBCOMBANK,

SAROVBUSINESSBANK, VOZROZHDENIE BANK)

AS WELL AS STRENGTHENING OF VTB IT TEAM.

NET FEE

& COMISSION

INCOME

NET INTEREST

INCOME

OTHER

INCOME

NET OPERATING

INCOMEPROVISION

CHARGETAX

▼1%▲10% ▼24% ▼ 2% ▼27% ▲16%

ROE

NIM UNDER PRESSURE DUE TO CHALLENGING ENVIRONMENT

▲125% ▲48% ▲10%

NIM

FEE & COMISSION /

OPERATING

INCOME

45.8% 44.0% 40.5% 42.6%

COR

CIR

GUIDANCE

THE EASING OF MONETARY POLICY AND THE

BACKDROP OF CONTINUED LOAN PORTFOLIO

GROWTH

Y-O-Y

GROWTH

LOW BASE

EFFECT

▲712%

STABLE UPWARD

TRAJECTORY

FOR NORMALISED

PROFITABILITY

LEVELS

2019

3) VAT INCREASE CONTRIBUTED TO

OPEX GROWTH

2) THE COST GROWTH SIGNIFICANTLY SLOWED

DOWN VS 1H’19 DUE TO UNEVEN

Y-O-Y CALENDARISATION OF VARIABLE

PERSONNEL COSTS

RUB BN▲ - yoy change

3.7% 4.1% 3.9% 3.3%

2016 2017 2018 11M'19

1.5% 1.6% 1.6%0.9%

2016 2017 2018 11M'19

4730

51

165

1Q 2Q 3Q 11M'19


Bookrunner Deal value / USD mln % share # of deals

VTB Capital 8,740 26.7 68

2 Gazprombank 6,821 20.8 68

3 Sberbank CIB 3,493 10.7 70

4 JP Morgan 2,100 6.4 17

5 Societe Generale 1,550 4.7 14

Source: Dealogic Russia Total DCM league tables 3Q’19

Bookrunner Deal value / USD mln % share # of deals

VTB Capital 7,480 11.1 59

2 Gazprombank 6,009 8.9 51

3 JP Morgan 5,738 8.5 31

4 Citi 5,267 7.8 28

5 Societe Generale 3,953 5.3 33

Source: Bloomberg Eastern European DCM league tables 3Q’19

Bank Fees USD / mln % share

VTB Capital 44.1 18.4

2 Gazprombank 35.0 14.6

3 Credit Suisse 30.5 12.7

4 Sberbank CIB 26.2 10.9

5 Goldman Sachs 15.1 6.3

Source: Refinitiv Russia Investment Banking Review 3Q’19

INVESTMENT BANKING IN RUSSIA DCM BOOKRUNNER IN RUSSIA AND CIS

VTB CAPITAL: BEST INVESTMENT BANK IN RUSSIA

Best Investment Bank

in Emerging Markets

(2018,2019)


in Russia

(2010-2017, 2019)


in CEE (2013-2019)

Best Financial

Services in Russia

(2016-2019)

Best investment bank

in Russia

(2010-2019)

DCM BOOKRUNNER IN EASTERN EUROPE

#1 DCM bookrunner

in Eastern Europe

(3Q 2019)

Best investment Bank

in Russia

(2019)

LEADING POSITION:

Bookrunner Deal value/USD mln % share # of deals

1 Goldman Sachs 775.7 40 4

VTB Capital 348.8 18 4

3 Credit Suisse 226.4 11.7 2

ECM BOOKRUNNER IN RUSSIA

Source: Refinitiv Russia Investment Banking Review 3Q’19

#1 Research Team “Transport”

category, EMEA

(2016-2019)

#1 Research Team

“Electric utilities” category, EMEA

(2019)

23

APPENDIX: FINANCIALSCOMPARISON OF FINANCIAL DATA AND RATIOS IS BASED ON PRIOR PERIODS FINANCIAL STATEMENTS NOT ADJUSTED FOR

DECONSOLIDATION OF POST BANK, MULTICARTA AND VTB BANK UKRAINE, DISPOSAL OF VTB INSURANCE GROUP AND VTB

BANK BELGRADE.

THE P&L STATEMENT COMPONENTS HAVE BEEN COMPARED WITH MODIFIED FINANCIAL RESULTS FOR 11 MONTHS 2018 FOR THE PURPOSES OF

ACCURACY OF THE YEAR-ON-YEAR ANALYSIS (REVENUE AND EXPENSES OF VTB BANK (BELGRADE) JSC, “POST BANK”, PJSC AND “MULTICARTA”,

LLC AND OF ALL COMPANIES WITHIN VTB INSURANCE GROUP HAVE BEEN EXCLUDED AS IF THESE COMPANIES HAVE NOT BEEN CONSOLIDATED BY

THE GROUP DURING 2018; GAIN/LOSS RECOGNISED ON DISPOSAL OF SUBSIDIARIES REFLECTED IN THE LINE “GAINS FROM DISPOSAL

OF SUBSIDIARIES AND ASSOCIATES” HAVE NOT BEEN ADJUSTED).

11M’19 update

TRANSFORMATIONMACROVTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCE APPENDIX 24

6% 6% 6% 6% 6% 4% 5%

2% 2% 2% 2% 2% 2% 2%

5% 5% 4% 3% 3% 2% 2%

65% 60%66% 79% 79% 79%

80%

16% 14% 9%1% 1%

<1% <1%

6% 13%13%

9% 9%

13%10% 11,352

12,18811,175 11,530 11,529

13,23814,030

31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 1-Jan-18 31-Dec-18 30-Sep-19

11% 11% 13% 13% 12% 11% 12%

70%69% 70% 70% 70%

72% 72%

9%

10%8% 6% 6%

5%4%

5%

5%5% 5% 5%

4%5%

8%

5%4% 7% 7%

7%7%

12,19113,645

12,588 13,009 12,940

14,76115,625


73%

53%

27%

47%

30-Sep-19

31-Dec-14

73%

57%

27%

43%

30-Sep-19

31-Dec-14

ASSETS RUB BN

(1) Includes investment in associates, premises and equipment, investment property, intangible assets and goodwill, deferred tax assets and others

OTHER ASSETS (1)

SECURITIES PORTFOLIO

LOANS TO CUSTOMERS

DUE FROM OTHER BANKS

CASH AND MANDATORY RESERVES

ASSETS AND LIABILITIES STRUCTURE

LIABILITIES RUB BN

OTHER LIABILITIES

SUBORDINATED DEBT

DEBT SECURITIES ISSUED

CUSTOMER DEPOSITS

DUE TO BANKS AND OTHER

BORROWED FUNDS

COLLATERALISED FUNDING FROM

THE CBR

IFRS 9

▲6%

BY CURRENCY

FX

RUB

FX

RUB

IFRS 9

▲6%

YTD

15,677 +6.2%

11M’19 update

YTD

14,049 +6.1%

11M’19 update

TRANSFORMATION 25VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCE APPENDIXMACRO

29%

10%

9%

6%

7%

6%

6%

6%

4%

4%

4%

3%

6%

21%

11%

9%

7%

9%

10%

7%

5%

2%

5%

6%

5%

3%

IFRS 9

150.6% 129.9% 120.5% 100.3% 99.5% 102.8% 99.1%

79% 81% 77% 75% 74% 74% 71%

21%19%

23% 25% 26%26% 29% 9,150 10,110 9,487 9,773 9,841

11,424 11,913


68%

53%

32%

47%

30-Sep-19

31-Dec-14

NET CUSTOMER

LOANS /

CUSTOMER

DEPOSITS (LDR)

LOANS AND ADVANCES TO CUSTOMERS RUB BN

BY INDUSTRY

LOAN PORTFOLIO AND CUSTOMER DEPOSITS

INDIVIDUALS

LEGAL ENTITIES

CUSTOMER DEPOSITS RUB BN

OIL AND GAS

METALS

MANUFACTURING

GOVERNMENT BODIES

TRANSPORT

TRADE AND COMMERCE

ENERGY

FINANCE

BUILDING CONSTRUCTION

TELECOMMUNICATIONS

AND MEDIA

CHEMICALS

BY CURRENCY

NET LOANS CUSTOMER DEPOSITS

OTHER

INDIVIDUALS

31-Dec-14

30-Sep-19

FX

RUB

GROSS LOANS

INDIVIDUALS

LEGAL ENTITIES

▲4%

▲9%

LDR RUB

195%

77%

101%

LDR FX

110%

62% 60% 59% 60% 60% 58% 57%

38%40% 41%

40% 40%42%

43% 5,669

7,267 7,347 9,145 9,145

10,404 11,288


IFRS 9

68%

75%

32%

25%

31-Dec-14

30-Sep-19

YTD

11,858 +3.8%

11M’19 update

YTD

11,545 +11.0%

11M’19 update


63

66

62

60

59

60

60

58

57%

92

82

79

81

77

75

74

74

71%

31-Dec-06

31-Dec-10

31-Dec-14

31-Dec-15

31-Dec-16

31-Dec-17

01-Jan-18

31-Dec-18

30-Sep-19

680

2,518

7,205

8,150

7,311

7,287

7,307

8,435

8,491

31-Dec-06

31-Dec-10

31-Dec-14

31-Dec-15

31-Dec-16

31-Dec-17

1-Jan-18

31-Dec-18

30-Sep-19

2018

9М'19

4,5%

5.0%

7,8%

7,6%

50%

67%

75%

77%

76%

75%

75%

74%

75%

50%

33%

25%

23%

24%

25%

25%

26%

25%

311

1,465

3,520

4,384

4,342

5,523

5,523

5,996

6,486

IFRS 9

VTB BUSINESS WITH LEGAL ENTITIES

18.7%

YTD

8,439 flat

11M’19 updateYTD

6,652 +10.9%

11M’19 update

▲10bp ytd

MARKET SHARE

SHARE IN TOTAL:

21.5%

▲80bp ytd

▲1%

CURRENT TERM

CORPORATESLOANS DEPOSITS

MARKET SHARE

▲8%

YIELD

ON LOANS

COST

OF DEPOSITS

THE MARKET SHARE IS CALCULATED USING VTB’S METHODOLOGY WITH DATA

FROM THE BANK OF RUSSIA BASED ON RAS STATEMENTS AS OF 30-Nov-19

30-Sep-19

31-Dec-18

01-Jan-18

31-Dec-17

31-Dec-16

31-Dec-15

31-Dec-14

31-Dec-10

31-Dec-06

IFRS 9

30-Sep-19

31-Dec-18

01-Jan-18

31-Dec-17

31-Dec-16

31-Dec-15

31-Dec-14

31-Dec-10

31-Dec-06

RUB BN

▲7.2pp since 2006 ▲19.0pp since 2006

30-Sep-19

31-Dec-18

01-Jan-18

31-Dec-17

31-Dec-16

31-Dec-15

31-Dec-14

31-Dec-10

31-Dec-06

LOANS DEPOSITS


38%

40%

41%

45%

46%

44%

43%

48%

48%

4%

10%

7%

5%

4%

4%

4%

4%

4%

6%

6%

6%

5%

5%

4%

4%

58%

50%

46%

44%

44%

47%

48%

44%

44%

62

542

1,945

1,960

2,176

2,486

2,534

2,989

3,421

37

34

38

40

41

40

40

42

43%

8

18

21

19

23

25

26

26

29%

31-Dec-06

31-Dec-10

31-Dec-14

31-Dec-15

31-Dec-16

31-Dec-17

01-Jan-18

31-Dec-18

30-Sep-19

76%

81%

82%

84%

79%

75%

75%

75%

76%

24%

19%

18%

16%

21%

25%

25%

25%

24%

180

748

2,149

2,883

3,004

3,622

3,622

4,408

4,803

2018

9M'19

4.7%

4.9%

12,8%

11,9%

LOANS DEPOSITS

IFRS 9

VTB BUSINESS WITH INDIVIDUALS

17.4%

▼30bp ytd

MARKET SHARE

SHARE IN TOTAL:

▲110bp ytd

▲14%

RETAILLOANS DEPOSITS

MARKET SHARE

▲9%

30-Sep-19

31-Dec-18

01-Jan-18

31-Dec-17

31-Dec-16

31-Dec-15

31-Dec-14

31-Dec-10

31-Dec-06

YTD

3,419 +14.4%

11M’19 updateYTD

4,893 +11.0%

11M’19 update

15.1%

30-Sep-19

31-Dec-18

01-Jan-18

31-Dec-17

31-Dec-16

31-Dec-15

31-Dec-14

31-Dec-10

31-Dec-06

30-Sep-19

31-Dec-18

01-Jan-18

31-Dec-17

31-Dec-16

31-Dec-15

31-Dec-14

31-Dec-10

31-Dec-06

IFRS 9

CURRENT TERM

CASH & OTHER

MORTGAGE

CAR LOANS

CARDS

IN 2006 AND 2010 CARDS ARE INCLUDED IN “OTHER”

YIELD

ON LOANS

COST

OF DEPOSITS

RUB BN

▲14.4pp since 2006 ▲10.3pp since 2006

THE MARKET SHARE IS CALCULATED USING VTB’S METHODOLOGY WITH DATA

FROM THE BANK OF RUSSIA BASED ON RAS STATEMENTS AS OF 30-Nov-19


5.7% 5.8% 5.7% 5.5%

654 658 657 650

31-Dec-18 31-Mar-19 30-Jun-19 30-Sep-19

732 737 728 731

31-Dec-18 31-Mar-19 30-Jun-19 30-Sep-19

17.3

31.2 36.6

71.7

8.5

46.5 37.2

1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19

LOAN BOOK QUALITY

LOAN WRITE-OFFS RUB BN

NPLS (90+) RUB BN

NPL RATIO (1)ALLOWANCE FOR LOAN IMPAIRMENT / TOTAL GROSS LOANS

ALLOWANCE FOR LOAN IMPAIRMENT

(1) The Group defines non-performing loans (NPL) as lifetime expected credit losses (ECL) credit-impaired loans with contractual principal and or interest payments overdue more than 90 days and purchased or originated

credit impaired (POCI) loans with principal and or interest payments becoming overdue more than 90 days after the date of initial recognition.

▲ 1% flat▼ 1% ▲1%

▲40bp

▼0.1%

flat

▼0.5%

PROVISION FOR LOAN IMPAIRMENT RUB BN

COVERAGE RATIO

▼1%

NPLs

`FY’2018: 156.8

`9M’2018: 85.1 `9M’2019: 92.2

6.4% 6.5% 6.3% 6.1%

112.0% 112.0% 110.8% 112.4%

31-Dec-18 31-Mar-19 30-Jun-19 30-Sep-19

YTD

6.1% -30bp

RUB 726 bn -0.9%

11M’19 update

YTD

4.7% -100bp

11M’19 update

YTD

129.0% +17pp

11M’19 update


33%

4%63%

98.4% 98.4%

0.7% 0.7%

0.9% 0.9%

11,424 11,913

31-Dec-18 30-Sep-19

95%

4% 1%

9.4% 8.4%

9.7% 11.8%

80.9%79.8%

11,24211,727

31-Dec-18 30-Sep-19

2%

31%

2%65%

GROSS LOAN PORTFOLIO BREAKDOWN UNDER IFRS 9

0.8%

LOANS AT AMORTISED COST RUB BN

BY ECL STAGES

PASS

DOUBTFUL

NPL

LOANS AT AMORTISED COST

LOANS AT FAIR VALUE THROUGH P&L

LOANS AT FAIR VALUE THROUGH OCI

▲4%

10.1%

52.3%

STAGE 1

STAGE 2

STAGE 3

+ POCI

WATCH

SUB-STANDARD

PROVISION

CHARGE RUB BN

xx

xx

12 MONTH ECL

LECL

LECL CREDIT-

IMPAIRED

AND PURCHASED

OR ORIGINATED

CREDIT IMPAIRED

ALLOWANCE

RATIO

LOAN PORTFOLIO RUB BN

xx

23.5

38.1

13.9

75.5

9M'19


24.3 35.1

0.5 18.0 15.9

14,6 11.4

13.7

13.4 14.0

38.9

46.5

14.2

31.4 29.9

3Q'18 4Q'18 1Q'19 2Q'19 3Q'19

2.0%

1.7%1.3%

0.6%

9M'18 9M'19

2.0%

1.6%

1.8% 1.7% 1.7%

1.3%

1.7%

0.0%0.9% 0.8%

3Q'18 4Q'18 1Q'19 2Q'19 3Q'19

72.5 34.4

41.1

41.1

113.6

75.5

9M'18 9M'19

PROVISION CHARGE AND COST OF RISK

PROVISION CHARGE FOR IMPAIRMENT OF LOANS RUB BN

PROVISION CHARGE FOR CREDIT

LOSSES ON LOANS TO

INDIVIDUALS

PROVISION CHARGE FOR CREDIT

LOSSES ON LOANS TO LEGAL ENTITIES

COST OF RISK BREAKDOWN

COST OF RISK (1)

LOANS TO INDIVIDUALS

LOANS TO LEGAL ENTITIES

(1) Provision charge for credit losses divided by average gross loans and advances to customers.

IND:▼30bp

1.5%

0.9%

LE:▼50bpIND:▼30bp

LE:▼70bp

▼23% ▼34%

1.5%1.7%

0.5%

1.1% 1.0%

y-o-y

0.9% -60bp

11M’19 update


359 324

9M'18 9M'19

4.0%3.3%

3.9%3.4%

3.2% 3.3% 3.3%

▼70bp

NET INTEREST INCOME RUB BN AND NET INTEREST MARGIN %

NET INTEREST INCOME AND NIM

▼10%

▼60bp

▼9%

YIELD ON TOTAL INTEREST EARNING

ASSETS

YIELD ON CUSTOMER LOANS

COST OF TOTAL INTEREST BEARING

LIABILITIES

AVERAGE YIELDS AND COST OF FUNDS %

121 110 104 109 110

3Q'18 4Q'18 1Q'19 2Q'19 3Q'19

9.0% 8.8% 8.8% 8.9% 8.8%

8.4% 8.4% 8.3% 8.5% 8.5%

4.8% 5.1% 5.3% 5.3% 5.2%

4.5% 4.6% 5.0% 5.1% 4.9%

3Q'18 4Q'18 1Q'19 2Q'19 3Q'19

9.2%8.8%

8.6% 8.4%

4.8% 5.3%

4.6%5.0%

9M'18 9M'19

COST OF CUSTOMER DEPOSITS

y-o-y

3.3% -50bp

RUB 399 bn -1.1%

11M’19 update


67.363.8

9M'199M'18

61%64%

7%9%

7%7%

19%15%

5%4%

108.492.9

9M'199M'18

0.6% 0.6%

64% 53% 61% 65% 58%

10%9% 8%

6%8%

7%9% 6%

7%7%

13%22% 20%

17%20%

6% 7% 5%

5%6%32.1 31.1 30.9

40.437.1

3Q'18 4Q'18 1Q'19 2Q'19 3Q'19

FEE AND COMMISSION INCOME BREAKDOWN RUB BN

NET FEE AND COMMISSION

INCOME

NET FEE AND COMMISSION

INCOME / AVG ASSETS (NET)

NET FEE AND COMMISSION INCOME RUB BN

INSURANCE PRODUCTS

DISTRIBUTION AND OTHER AGENCY

SERVICES

SETTLEMENT, TRADE FINANCE

AND CASH TRANSACTIONS

OTHER

GUARANTEES AND OTHER CREDIT

RELATED COMMITMENTS

OPERATIONS WITH SECURITIES AND

ON CAPITAL MARKETS

FEE AND COMMISSION INCOME

▲16% ▲17%

▲7% ▲5%

0.6%0.5% 0.5%

0.7%0.6%

20.9 16.8 18.926.0 22.4

3Q'18 4Q'18 1Q'19 2Q'19 3Q'19

y-o-y

RUB 88.4 bn +9.8%

11M’19 update


38 43 41 40 38

2429

20 25 21

62.672.5

60.7 64.9 58.7

3Q'18 4Q'18 1Q'19 2Q'19 3Q'18

95 114 118

59

73 67

154.4

187.3 184.3

9M'18 9M'18 9M'19

(1) 9M’18 P&L results were adjusted to reflect the changes in the Groups structure (deconsolidation of Post bank, Multicarta and VTB Bank Ukraine, disposal of VTB Insurance Group and VTB Bank Belgrade).

STAFF AND ADMINISTRATIVE EXPENSES

STAFF COSTS AND ADMINISTRATIVE EXPENSES RUB BN

COST / INCOME RATIO

COST / AVG. ASSETS

NUMBER OF EMPLOYEES THSD

STAFF COSTS INCLUDING

PENSIONS

ADMINISTRATIVE EXPENSES

▼6% ▼2%

▲19%

VTB BANK

OTHER COMPANIES OF

VTB GROUP

(1)

VTB Insurance: 5.8

57.8

INCLUDING:

VTB Bank

4.5

INCLUDING:

SarovBusinessBank: 1.0

ZapSibComBank: 3.0

Vozrozhdenie Bank:

59.6VTB Bank

1.8% 2.0% 1.7% 1.7% 1.5%

38.5% 44.6% 44.3% 48.9%37.8%

1.9% 1.6%

39.1% 43.4%

74% 75% 72% 72% 71%

26% 25% 28% 28% 29%

78.1 77.2 81.2 81.9 83.6

30-Sep-18 31-Dec-18 31-Mar-19 30-Jun-19 30-Sep-19

y-o-y

42.6% +650bp

1.6% flat

RUB 226.4 bn +15.9%

11M’19 update

TRANSFORMATIONMACROVTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCE APPENDIX 34TRANSFORMATIONMACROVTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCE APPENDIX 34

11M’19 11M’18 Change

3.3% 3.8% -50bp

0.9% 1.5% -60bp

1.6% 1.6% 0bp

42.6% 36.1% 650bp

11.6% 11.9% -30bp

1.2% 1.3% -10bp

11M’19 11M’18 Change

399.4 403.7 -1.1%

88.4 80.5 9.8%

43.9 57.4 -23.5%

531.7 541.6 -1.8%

-95.0 -129.8 -26.8%

-226.4 -195.4 15.9%

210.3 216.4 -2.8%

-44.9 -53.8 -16.5%

165.4 162.6 1.7%

9M’19 9M’18 Change 3Q’19 3Q’18 Change

Net interest income 323.8 358.6 -9.7% 110.2 120.5 -8.5%

Net fee and commission income 67.3 63.8 5.5% 22.4 20.9 7.2%

Net other income 33.9 56.5 -40.0% 22.6 21.2 6.6%

Operating income before provisions 425.0 478.9 -11.3% 155.2 162.6 -4.6%

Provision charge for credit losses and other provisions -77.8 -111.4 -30.2% -32.4 -42.4 -23.6%

Staff costs and administrative expenses -184.3 -187.3 -1.6% -58.7 -62.6 -6.2%

Profit before tax 162.9 180.2 -9.6% 64.1 57.6 11.3%

Income tax expense -34.9 -39.2 -11.0% -12.9 -16.4 -21.3%

Net profit 128.0 141.0 -9.2% 51.2 41.2 24.3%

VTB GROUP FINANCIAL HIGHLIGHTS: P&L AND KEY RATIOS

9M’19 9M’18 Change 3Q’19 3Q’18 Change

NIM 3.3% 4.0% -70 bp 3.3% 3.9% -60bp

CoR 0.9% 1.5% -60 bp 1.0% 1.5% -50bp

Cost / Assets 1.6% 1.9% -30 bp 1.5% 1.8% -30bp

CIR 43.4% 39.1% 430 bp 37.8% 38.5% -70bp

ROE 11.1% 13.1% -200 bp 13.0% 11.3% 170bp

ROA 1.1% 1.4% -30 bp 1.3% 1.2% 10bp

INCOME STATEMENT KEY INDICATORS RUB bn

KEY FINANCIAL RATIOS

(1) The P&L statement components have been compared with modified financial results for 11 months 2018 for the purposes of accuracy of the year-on-year analysis (revenue and expenses of VTB Bank

(Belgrade) JSC, “Post Bank”, PJSC and “Multicarta”, LLC and of all companies within VTB Insurance Group have been excluded as if these companies have not been consolidated by the Group during 2018;

gain/loss recognised on disposal of subsidiaries reflected in the line “Gains from disposal of subsidiaries and associates” have not been adjusted).

MODIFIED DATA (1)

11M’19IFRS unaudited financial

statements

9M’19IFRS consolidated

financial

statements

MODIFIED DATA (1)

TRANSFORMATIONMACROVTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCE APPENDIX 35TRANSFORMATIONMACROVTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCE APPENDIX 35

30-Sep-19 30-Jun-19 Change 31-Dec-18 YTD

Gross loan portfolio 11,912.7 11,623.2 2.5% 11,423.5 4.3%

Loans to legal entities 8,491.3 8,323.6 2.0% 8,435.0 0.7%

Loans to individuals 3,421.4 3,299.6 3.7% 2,988.5 14.5%

Total assets 15,624.6 15,055.3 3.8% 14,760.6 5.9%

Customer deposits 11,288.4 10,738.0 5.1% 10,403.7 8.5%

Deposits of legal entities 6,485.7 6,029.5 7.6% 5,995.8 8.2%

Deposits of individuals 4,802.7 4,708.5 2.0% 4,407.9 9.0%

Total liabilities 14,030.1 13,514.7 3.8% 13,237.6 6.0%

Total shareholders' equity 1,594.5 1,540.6 3.5% 1,523.0 4.7%

30-Sep-19 30-Jun-19 Change 31-Dec-18 YTD

NPL ratio (1) 5.5% 5.7% -20bp 5.7% -20bp

LLR ratio 6.1% 6.3% -20bp 6.4% -30bp

(1) The Group defines non-performing loans (NPL) as lifetime expected credit losses (ECL) credit-impaired loans with contractual principal and or interest payments overdue more than 90 days

and purchased or originated credit impaired (POCI) loans with principal and or interest payments becoming overdue more than 90 days after the date of initial recognition.

VTB GROUP FINANCIAL HIGHLIGHTS: BALANCE SHEET

BALANCE SHEET KEY INDICATORS RUB bn

KEY ASSET QUALITY & CAPITAL RATIOS

11M’19IFRS unaudited financial

statements

9M’19IFRS consolidated

financial

statements

30-Nov-19 YTD

11,857.7 3.8%

8,438.5 0.0%

3,419.2 14.4%

15,676.7 6.2%

11,544.8 11.0%

6,652.3 10.9%

4,892.5 11.0%

14,048.6 6.1%

1,628.1 6.9%

30-Nov-19 YTD

4.7% -100bp

6.1% -30bp


INTERNATIONAL DEBT MATURITY PROFILE (2) USD MLN

Borrower CurrencyAmount outstanding

(mln) Instrument Maturity Date/Put or Call Option Coupon ISIN

2018

VTB USD 698 Series 12 EMTN 2 Matured and repaid in February 2018 6.32% XS0592794597

VTB CHF 300 Series 3 EMTN 3 Matured and repaid in May 2018 2.9% CH0226747746

VTB USD 1,514 Series 4 EMTN 2 Matured and repaid in May 2018 6.875% XS0365923977

2020

VTB USD 948 Series 10 EMTN 2 October 2020 6.551% XS0548633659

2022

VTB USD 1,500 Series 21 EMTN 2 Subordinated Debt October 2022 6.95% XS0842078536

2024

VTB CHF 350 Series 4 EMTN 3 Subordinated Debt October 2024 (call option) 5.0% CH0248531110

2035

VTB USD 31 Series 6 EMTN 1 June 2035 6.25% XS0223715920

Perpetual

VTB USD 2,250 Tier 1 Perpetual Eurobond (call option) Dec 2022 (call option)(1) 9.5% XS0810596832

(1) Fixed until the first call date, then reset on 6-Dec -22 and every 10th year thereafter.

USD

CHF

VTB GROUP PUBLIC DEBT AND HYBRID CAPITAL INSTRUMENTS

827

1,339

234 25

2020 2022 2024 2035

(2) Net of bought back public debt. Exchange rates published by the CBR as of December 27, 2019. In addition to international debt, VTB Group currently has RUB 183 bn domestic bonds.

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