VTB investor presentation 9M2019 ENG 21112019 .pptx) · 2019-11-25 · This presentation has been...
Transcript of VTB investor presentation 9M2019 ENG 21112019 .pptx) · 2019-11-25 · This presentation has been...
INVESTOR PRESENTATION
November 2019
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
27
4
VTB AT A GLANCE
5VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCE APPENDIXMACRO TRANSFORMATION
OVERVIEW OF VTB GROUP
VTB Group
17
EMPLOYEES
84
BRANCH NETWORK
1.7
GLOBAL PRESENCE
countries
19.3%
21.1%
LOANS TO
INDIVIDUALS
16.6%CREDIT RATINGS
BBB-
Moody’s
DATA AS OF 30-SEP-19
CLIENT BASE
14
ATMsASSETS
15.6
▲60 bp ytd▲ 20 bp ytd
▲ 80 bp ytd
▲100 bp ytd
▲40 bp ytd
MARKET SHARE AS OF 30-SEP-19
MORTGAGE DEPOSITS OF
INDIVIDUALS
MARKET CAPITALISATION
ASSETS CORPORATE
LOANS
CORPORATE
DEPOSITS
in Russia
23.5%
18.0%
15.0%
15
thsd
in Russia
RUB trln thsd
in Russia
ruAAA
Baa3
9.3USD bn
thsd
VTB Group
mln banking
clients
in Russia
▲40 bp ytd
AS OF 20-NOV-19
6VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCE APPENDIXMACRO TRANSFORMATION
3.3% 3.1% 4.2%
7.8% 9.1%
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
+6 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
≈154thsd
2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9Oct’2019
7VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCE APPENDIXMACRO TRANSFORMATION
REPORTS
VTB CORPORATE GOVERNANCE SYSTEM
APPROVES
ELECTS
REPORTS
REPORTSELECTS
ELECTSELECTS
ELECTS
ELECTS REPORTS
REPORTS AND PREPARES
RECOMMENDATION
REPORTS AND PREPARES
RECOMMENDATION
REPORTS
REPORTS AND PREPARES
RECOMMENDATION
ELECTS
APPROVES
Andrey Kostin
President and Chairman
of VTB Management Board
Anton Siluanov
Chairman
of VTB Supervisory Council
First Deputy Prime Minister -
Finance Minister of Russia
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
8VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCE APPENDIXMACRO TRANSFORMATION
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 7,914 BN RUB 1,809 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 5,546 BN
all economic sectors
c. 500 thsd mid-corporate banking clients
9M’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
10VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
38.0
60.7 66.958.3 62.5 65.1
0.7
-2.3
0.31.6 2.3
0.7
-1.5
-10.1
-0.2
4.8 4.3
0.62,5
-0.8
2.2 2.12.9 2.6 2.72.7
-10.0
-4.6
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% 7.6%
MACRO ENVIRONMENT IN RUSSIA
CPI DEC / DEC
USD/RUB (CBR, AVG)
OIL PRICE (URALS, AVG)
CBR KEY RATE (AVG)
GDP
INVESTMENTS IN FIXED CAPITAL
INDUSTRIAL PRODUCTION
RETAIL TURNOVER
FOR 9M’19 SEP / SEP
OIL PRICE USD AND EXCHANGE RATE RUB INFLATION AND CBR KEY RATE
RUSSIAN MACROECONOMIC INDICATORS %
97.6
51.041.6
53.1
69.7 64.3
2014 2015 2016 2017 2018 9M'19
11.4%
12.9%
5.4%
2.5%4.3% 4.0%
2014 2015 2016 2017 2018 9M'19
1H’19
11VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
29,351
28,460
26,992
24,200
23,219
18,553
9M'2019
2018
2017
2016
2015
2014
17,104
14,901
12,174
10,804
10,684
11,331
9M'2019
2018
2017
2016
2015
2014
32,908
31,424
27,004
25,149
27,924
24,443
9M'2019
2018
2017
2016
2015
2014
39,210
38,947
34,786
34,036
36,172
31,939
9M'2019
2018
2017
2016
2015
2014
CORPORATE LOANS
RUSSIAN BANKING SECTOR DYNAMICS
RUSSIAN BANKING
SECTOR
▲1% ytd
RUB BN RETAIL LOANS
▲15% ytd
CORPORATE FUNDING RETAIL FUNDING
▲ 5% ytd ▲ 3% ytd
12
STRATEGY AND GUIDANCE
13VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
KEY VTB GROUP STRATEGIC PRIORITIES FOR 2022
STRATEGIC PRIORITIES:FINANCIAL
COMMITMENTS:
LEADERSHIP IN CUSTOMER
SATISFACTION AMONG PEER BANKS
BETTER PERSONNEL ENGAGEMENT
● 100% PAPERLESS WORKFLOW
EXEMPLARY TIME-TO-MARKET
MOTIVATED AND EFFICIENT TEAM
● >50% SALES VIA DIGITAL CHANNELS
(RETAIL AND SME)
● 100% PRODUCTS AVAILABILITY DIGITAL
24/7 ACCESSIBILITY
ROE 15%
CIR 32%A LEADER IN SELECTED ECOSYSTEMS
FOCUS ON CLIENT-
CENTRICITY
BREAKTHROUGH IN
DIGITALIZATION
SET UP AND ROLL-OUT IN
DIGITAL ECONOMY
BUILDING A ROBUST AND
AGILE OPERATIONAL AND
TECH PLATFORM
CREATING HIGHLY
EFFECTIVE ORGANIZATION
& CULTURE
Dividend payout 50%
Net income RUB 300 bn
14VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
NET
PROFIT
≈ 200 RUB bn
LOANS
TO LEGAL ENTITIES
LOANS
TO INDIVIDUALS
CoR
NIM
CIR
GROW IN LINE
WITH INDUSTRY
GROW ABOVE
INDUSTRY
≈ 1%
≈ 3.4%
≈ 40%
MARKET GROWTH < 5%
MARKET GROWTH
UP TO 20%
2019 GUIDANCE
15
FROM BUILDING TRADITIONAL BANKING
PLATFORM TO BECOMING A VITAL
ELEMENT OF CLIENT LIFESTYLE
16VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
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
17VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
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 ELEMENTS
KEY
TECHNOLOGICAL
CHANGES
2019 2022
FISCAL
DATA
18VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
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 FORM 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 OVERVIEW9M’18 FINANCIAL 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). FINANCIAL
RESULTS WERE NOT ADJUSTED TO REFLECT THE ACQUISITIONS OF “VOZROZHDENIE BANK“, PJSC, “SAROVBUSINESSBANK”, PJSC
AND “ZAPSIBCOMBANK”, PJSC, WHICH OCCURRED IN THE SECOND HALF OF 2018 AND THE BEGINNING OF 2019. THE GROUP
MANAGEMENT BELIEVES THAT THE IMPACT OF THESE ACQUISITIONS ON THE GROUP’S FINANCIAL PERFORMANCE FOR 9M’18
INDIVIDUALLY OR IN AGGREGATE WOULD HAVE BEEN IMMATERIAL HAD IT BEEN APPLIED AS IF THE ACQUISITIONS HAPPENED PRIOR
TO 1 JANUARY 2018.
20VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
4.5% 5.2%
1.6% 1.5% 2.0% 2.4%
45.3% 46.2%
33.3% 34.2%
13.3% 10.5%
13,238 14,030
31-Dec-18 30-Sep-19
11.4% 12.1%
53.7% 51.2%
18.7% 20.4%
4.7% 4.0%
4.4% 5.0%
7.1% 7.3%
14,761 15,625
31-Dec-18 30-Sep-19
1,281 1,483
1,442 1,650
2,989 3,421
31-Dec-18 30-Sep-19
1,347 1,507
8,435 8,491
31-Dec-18 30-Sep-19
▲12%
3,323 3,637
1,085 1,165
4,408 4,803
31-Dec-18 30-Sep-19
4,420 4,863
1,576 1,623
5,996 6,486
31-Dec-18 30-Sep-19
CORPORATE ▲0.7%vs market ▲0.7%
MEASURED BUSINESS GROWTH WITH FOCUS ON PRIORITISED
SEGMENTS AND STRENGTHENING BALANCE SHEET
ASSETS RUB BN
OTHER ASSETS
SECURITIES PORTFOLIO
LOANS TO CUSTOMERS
DUE FROM OTHER BANKS
CASH, SHORT-TERM FUNDS AND
MANDATORY RESERVES
GROSS LOANS
RETAIL ▲14.5%
Mortgage
Consumer
SME
DEPOSITS
LDR(1)
LIABILITIES RUB BN
LE
RETAIL
OTHER LIABILITIES
SUBORDINATED DEBT
DEBT SECURITIES ISSUED
CUSTOMER DEPOSITS
DUE TO BANKS AND OBF
▲6%
RETAIL
LE
99.1%
CORPORATE ▲8.2%
RETAIL ▲9.0%▲6%
vs market ▲14.8% vs market ▲3.1%
vs market ▲4.7%
Term
Current
Term
Current
▲14%
▲16%
▲7%
▲9%
▲3%
▲10%
(2)
(2) INCLUDING VOZROZHDENIE BANK
(1) NET LOANS/DEPOSITS
DEPOSITS IN
TOTAL
LIABILITIES
78.6% 80.4%LOANS IN
TOTAL
ASSETS
72.4% 71.6%
21VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
▼15%
▲14%
▲10%
▲42%
-12.9
51.2
-32.4
-58.7
155.2
22.6
22.4
110.23.3%
▼40 bp
13.0%▲340 bp
1.0%▼30 bp
37.8%
0.9%▼50 bp
11.1%▼90 bp
NET INTEREST
INCOME
NET FEE &
COMISSION
INCOME
OTHER
INCOME
NET OPERATING
INCOME
PROVISION
CHARGE
STAFF &
ADMINISTRATIVE
COSTS
TAX
NET
PROFIT
▼2%
▲6%
▼21%
▲19%
▼4%
NIM
CoR
CIR
ROE
CHANGE
YoY
43.4%▲690 bp
3.3%▼60 bp323.8
67.3
33.9
425.0
-77.8
-184.3
128.0
▲16%
▲0.4%
NET INTEREST
INCOME
NET
FEE & COMISSION
INCOME
NET
OPERATING
INCOME
PROVISION
CHARGE
STAFF &
ADMINISTRATIVE
COSTS
TAX
NET
PROFIT
NIM
CoR
CIR
ROE
0%
▲1%
▲140%
CHANGE
YoY3Q’2019 RUB BN
-34.9
9M’2019 RUB BN
▲140 bp
POSITIVE TREND IN PROFITABILITY IN 3Q 2019
OTHER INCOME
22VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
315.9(79%)
395.1 (78%)
82.3 (21%)
108.3 (22%)
398.2503.4
9M'18 9M'19
3.2%3.3% 3.3%
3.9%
3.3%
STRUCTURE AND DYNAMICS OF INTEREST INCOME & EXPENSE
NET INTEREST INCOME RUB BNGROSS INTEREST INCOME RUB BN
GROSS INTEREST EXPENSE RUB BN
▼2%
▲26%
▲13%
INTEREST EXPENSE ON CUSTOMER DEPOSITS
INTEREST EXPENSE ON OTHER INTEREST BEARING LIABILITIES
INTEREST INCOME ON LOANS AND ADVANCES TO CUSTOMERS
INTEREST INCOME ON OTHER INTEREST BEARING ASSETS
YIELD ON TOTAL
INTEREST
BEARING
ASSETS
9M’19
8.4%
8.5%flat YoY
3Q’19 / 3Q’18
NIM
9M’18
9M’19
5.3%
4.8%9M’18
▼33%
▲21%
▲32%
▲25%
COST OF TOTAL
INTEREST BEARING
LIABILITIES
104.2 109.4 110.2
1Q'19 2Q'19 3Q'19
330.7323.8
9M'18 9M'19
629.7 (86%)
760.8 (92%)
99.2 (14%)
66.4 (8%)
728.9827.2
9M'18 9M'19
23VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
56.1 (61%)
66.5 (61%)
8.8 (10%)8.0 (7%)
6.5 (7%)7.5 (7%)
17.1(18%)
20.7 (19%)
4.0 (4%)
5.7 (6%)92.5
108.4
9M'18 9M'19
26.5 (90%)
37.9(92%)
1.0 (3%)
0.7 (2%)1.1 (4%)
1.5 (4%)0.7 (3%)
1.0 (2%)29.341.1
9M'18 9M'19
63.267.3
9M'18 9M'19▲40%
STRUCTURE AND DYNAMICS OF FEE AND COMMISSION INCOME
AND EXPENSE
NET FEE AND COMMISSION INCOME RUB BNFEE AND COMMISSION INCOME RUB BN
FEE AND COMMISSION EXPENSE RUB BN
▲ 6%
▲17%
▲1% YoY
3Q’19 / 3Q’18
▲43%
▲21%
▲15%
▼9%
▲19%
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
SETTLEMENT, TRADE FINANCE
AND CASH TRANSACTIONS
OTHER
OPERATIONS WITH
SECURITIES AND ON CAPITAL
MARKETS
▲43%
▲36%
▼30%
▲43%
GUARANTEES AND OTHER
CREDIT RELATED FACILITIES
RECEIVED
A ONE-OFF INCREASE IN EXPENSES FOR LOYALTY
PROGRAMMES – THE RESULT OF SIGNIFICANT
CHANGES TO THOSE PROGRAMMES – HAD A NEGATIVE
IMPACT ON FEE AND COMMISSION INCOME IN 3Q
18.9
26.022.4
1Q'19 2Q'19 3Q'19
24VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
732 731
31-Dec-18 30-Sep-19
23.5
38.1
13.9
75,5
9M'19
9.4% 8.4%
9.7% 11.8%
80.9%79.8%
11,24211,727
31-Dec-18 30-Sep-19
95%
4%1%
33%
4%
63%
2%
31%
2%65%
72.3
34.4
29.2
41.1
101.5
75.5
9M'18 9M'19
1.4%
0.9%
1.6% 1.7%
1.3% 0.6%
9M'18 9M'19
5.7%5.5%
6.4%6.1%
NPL RATIO
PROVISION CHARGE FOR LOAN IMPAIRMENT RUB BN
INDIVIDUALS
LE
TOTAL
PASS
STAGE 1
WATCH
SUB-STANDARD
DOUBTFUL
NPL
STAGE 3
+ POCI
LOANS AT AMORTISED COST RUB BN
BY ECL STAGES
NPL RUB BNPROVISION FOR LOAN
IMPAIRMENT RUB BN
ALLOWANCE FOR LOAN IMPAIRMENT /
TOTAL GROSS LOANS
COR
INDIVIDUALS
LE
COVERAGE 30-Sep-19
112.4%▲40bp
0.8%
10.1%
52.3%
ALLOWANCE
RATIO
STAGE 2
flat ▼1%
▼26%
COR REFLECTS STABLE ASSET QUALITY IN ALL BUSINESS SEGMENTS
654 650
31-Dec-18 30-Sep-19
STAGE 2
STAGE 1
STAGE 3
+ POCI
25VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
36.5%43.4%
9M'18 9M'19
36.4% 37.8%
1.6% 1.6%1.5% 1.5%
58 59
14 23
72 82
9M’18 9M’19
CIR
COSTS/ AVG.
ASSETS
STAFF COSTS
INCLUDING
PENSIONS
ADMINISTRATIVE
EXPENSES
COSTS GROWTH SLOWING DOWN IN 3Q 2019
STAFF AND ADMINISTRATIVE COSTS RUB BN
AVERAGE NUMBER OF EMPLOYEES THSD
VTB BANK
+9 THSD RECENTLY CONSOLIDATED BANKSSUBSIDIARIES
INCLUDING 6.4 PP - RECENTLY CONSOLIDATED BANKS
EARLIER RECOGNITION OF PERFORMANCE-BASED
COMPENSATION IN 2019 VS 2018 (DIFFERING
CALENDARISATION)
+19%
95.1 117.6
59.3
66.7
154.4
184.3
9M'18 9M'19
▲19%
▲690 bp
flat
▲12%
▲24%
32.1 37.6
19.5
21.1
51.6
58.7
▲8%
▲17%
▲14%
▲140 bp
flat
3Q’18 3Q’19
3Q’18 3Q’19
26VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
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)
Best Investment Bank
in Russia
(2010-2017, 2019)
Best Investment Bank
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)
27
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.
28
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
31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 1-Jan-18 31-Dec-18 30-Sep-19
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
PRE-IFRS 9 IFRS 9
▲6%
BY CURRENCY
FX
RUB
FX
RUB
PRE-IFRS 9 IFRS 9
▲6%
29VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
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%
PRE-IFRS 9 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
31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 1-Jan-18 31-Dec-18 30-Sep-19
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%
68%
75%
32%
25%
30-Sep-19
31-Dec-14
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
31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 1-Jan-18 31-Dec-18 30-Sep-19
PRE-IFRS 9 IFRS 9
30VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
82%
84% 79% 75% 75%
75% 76%
18%
16% 21%
25% 25%
25%
24%
2,149
2,8833,004
3,622 3,622
4,408
4,803
31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 1-Jan-18 31-Dec-18 30-Sep-19
41% 45% 46% 44% 43% 48% 48%
7% 5%4% 4% 4%
4%4%
6% 6% 6%5% 5%
4%4%
46% 44%44%
47% 48%
44%
44%
1,945 1,9602,176
2,486 2,534
2,989
3,421
31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 1-Jan-18 31-Dec-18 30-Sep-19
15.5% 14.9% 14.7% 14.3%12.8% 11.9%
2014 2015 2016 2017 2018 9M'19
5.3%
6.6%5.7%
4.9% 4.7% 4.9%
38%40% 41% 40%
CASH LOANS & OTHER
MORTGAGE LOANS
CAR LOANS
FUNDING FROM INDIVIDUALS RUB BNLOANS TO INDIVIDUALS RUB BN
CREDIT CARDS
SHARE OF RETAIL IN TOTAL LOANS
SHARE OF RETAIL IN TOTAL
CUSTOMER FUNDING
TERM DEPOSITS
CURRENT / SETTLEMENT DEPOSITS
Pre-IFRS 9 IFRS 9
MARKET SHARES (1)YIELD ON LOANS AND COST OF DEPOSITS
COST OF DEPOSITS OF INDIVIDUALS
YIELD ON LOANS TO INDIVIDUALS
Pre-IFRS 9 IFRS 9
(1) The market share is calculated using VTB’s methodology with data from the Bank of Russia based on RAS statements.
VTB BUSINESS WITH INDIVIDUALS
21% 19% 23% 25%26% 26%
29%
40%42% 43%
▲14% ▲9%
DATA AS OF 30-SEP-19
15.0% Deposits of
individuals
18.0% Loans to
individuals
▲100bp ytd▲20bp ytd
31VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
9.0%10.0% 9.7%
8.9%7.8% 7.6%
2014 2015 2016 2017 2018 9M'19
79% 81%77% 75%
74% 74%71%
FUNDING FROM LEGAL ENTITIES RUB BNLOANS TO LEGAL ENTITIES RUB BN
SHARE OF CORPORATE IN TOTAL LOANS
SHARE OF CORPORATE IN TOTAL CUSTOMER FUNDING
CURRENT / SETTLEMENT DEPOSITS
TERM DEPOSITS
COST OF DEPOSITS OF LE YIELD ON LOANS TO LE
Pre-IFRS 9 IFRS 9
Pre-IFRS 9 IFRS 9
VTB BUSINESS WITH LEGAL ENTITIES
75%77% 76%
75% 75% 74% 75%
25%
23% 24%
25% 25%26%
25%
3,520
4,384 4,342
5,523 5,5235,996
6,486
31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 1-Jan-18 31-Dec-18 30-Sep-19
62% 60% 59% 60% 60%58% 57%
21.1% Deposits of
legal entities
19.3% Loans to
legal entities
▲40bp ytd▲60bp ytd
DATA AS OF 30-SEP-19
MARKET SHARES (1)YIELD ON LOANS AND COST OF DEPOSITS
5.2%
7.1% 6.6%5.5%
4.5% 5.0%
▲1% ▲8%
(1) The market share is calculated using VTB’s methodology with data from the Bank of Russia based on RAS statements.
7,205
8,150
7,311 7,287 7,307
8,435 8,491
31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 1-Jan-18 31-Dec-18 30-Sep-19
32VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
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
33VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
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
5.7%5.5%
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
NPL RUB BN
NPL RATIO
xx
xx
12.6
12 MONTH ECL
LECL
LECL CREDIT-
IMPAIRED
AND PURCHASED
OR ORIGINATED
CREDIT IMPAIRED
ALLOWANCE
RATIO
LOAN PORTFOLIO RUB BN
xx
654 650
31-Dec-18 30-Sep-19
23.5
38.1
13.9
75.5
9M'19
34VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
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%
35VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
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 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
36VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
61%64%
7%9%
7%7%
19%15%
5%4%
108.492.9
9M'199M'18
0.6% 0.6%
67.363.8
9M'199M'18
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
37VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
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
38VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
9M’19 9M’18 Change 9M’18 Change 3Q’19 3Q’18 Change 3Q’18 Change
Net interest income 323.8 330.7 -2.1% 358.6 -9.7% 110.2 110.2 0.0% 120.5 -8.5%
Net fee and commission income 67.3 63.2 6.5% 63.8 5.5% 22.4 22.1 1.4% 20.9 7.2%
Net other income 33.9 29.3 15.7% 56.5 -40.0% 22.6 9.4 140.4% 21.2 6.6%
Operating income before provisions 425.0 423.2 0.4% 478.9 -11.3% 155.2 141.7 9.5% 162.6 -4.6%
Provision charge for credit losses and other
provisions-77.8 -98.9 -21.3% -111.4 -30.2% -32.4 -38.2 -15.2% -42.4 -23.6%
Staff costs and administrative expenses -184.3 -154.4 19.4% -187.3 -1.6% -58.7 -51.6 13.8% -62.6 -6.2%
Profit before tax 162.9 169.9 -4.1% 180.2 -9.6% 64.1 51.9 23.5% 57.6 11.3%
Income tax expense -34.9 -36.6 -4.6% -39.2 -11.0% -12.9 -15.9 -18.9% -16.4 -21.3%
Net profit 128.0 133.3 -4.0% 141.0 -9.2% 51.2 36.0 42.2% 41.2 24.3%
VTB GROUP FINANCIAL HIGHLIGHTS: P&L AND KEY RATIOS
9M’19 9M’18 Change 9M’18 Change 3Q’19 3Q’18 Change 3Q’18 Change
NIM 3.3% 3.9% -60 bp 4.0% -70 bp 3.3% 3.7% -40 bp 3.9% -60 bp
CoR 0.9% 1.4% -50 bp 1.5% -60 bp 1.0% 1.3% -30 bp 1.5% -50 bp
Cost / Assets 1.6% 1.6% - 1.9% -30 bp 1.5% 1.5% - 1.8% -30 bp
CIR 43.4% 36.5% 690 bp 39.1% 430 bp 37.8% 36.4% 140 bp 38.5% -70 bp
ROE 11.1% 12.0% -90 bp 13.1% -200 bp 13.0% 9.6% 340 bp 11.3% 170 bp
ROA 1.1% 1.4% -30 bp 1.4% -30 bp 1.3% 1.1% 20 bp 1.2% 10 bp
INCOME STATEMENT KEY INDICATORS RUB bn
KEY FINANCIAL RATIOS
(1) 9M’18 and 3Q’18 PL 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).
9M’19
IFRS consolidated
financial
statements
MODIFIED DATA (1) MODIFIED DATA (1)
MODIFIED DATA (1) MODIFIED DATA (1)
39VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
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
9M’19
IFRS consolidated
financial
statements
40VTB AT A GLANCE BUSINESS OVERVIEWSTRATEGY & GUIDANCEMACRO TRANSFORMATION APPENDIX
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
232 25
2020 2022 2024 2035
(2) Net of bought back public debt. exchange rates published by the CBR as of November 1, 2019. In addition to international debt, VTB Group currently has RUB 149 bn domestic bonds.