BUSINESS OVERVIEW 1 SEPTEMBER 2015 FOR FINANCIAL INSTITUTIONS

Transcription

1 BUSINESS OVERVIEW 1 SEPTEMBER 2015 FOR FINANCIAL INSTITUTIONS

2 BANK OVERVIEW, SHAREHOLDERS AND MANAGEMENT

3 MARKET POSITIONING TKB IS A UNIVERSAL FEDERAL-SCALE BANK IN THE MARKET SINCE 1992 OUR GROWTH AND SIZE IN RUSSIA 1H2015 Assets #45 (1) Plastic cards #42 (2) Consumer loans #42 (3) Loans #39 (4) TOTAL ASSETS AND LOANS (RURbn) Total Loans Total Assets 101,9 140,9 125,5 CAGR: 15% 172,8 115,7 165,4 168,9 129,0 Corporate Loans #36 (4) Equity #33 (1) Factoring #12 (5) Mortgage #10 (4) SME Loans #8 (6) (1) Profile Magazine (2) Banki.ru (3) Bankir.ru (4) Expert RA (5) Asfact.ru (6) Expert Magazine TOTAL EQUITY (RURbn) Tier 1 CAGR: 16% 29,0 27,7 Tier 1+Tier 2 24,1 21,1 17,8 18,9 17,3 16,0 * CORE BUSINESS FOCUS: Corporate Lending Loans: 55.2 RURbn. (44%) SME Lending Loans: 38.2 RURbn. (30%) corporate and SME customers Since 2010 TKB gradually increased retail exposure Loans: 32.6 RURbn. (26%) retail customers RELIABILITY: Moody s: Expert RA: Profile: B1 А++ «Exclusively high level of reliability» TOP 30 most reliable Russian banks as of 1H2015 * * Under RAS 3

4 OWNERSHIP STRUCTURE OTHER International shareholders Minority stakes of <5% 5 top managers 6 legal entiities and 6 individuals not involved in day-to-day management of the bank 20,2% 28,6% Multinational financial organization based in London, UK AAA rated by all rating agencies Shareholder since 2006 Member of BoD LEONID IVANOVSKIY Shareholder since 2000 Member of BoD 12,2% Russian shareholders (family) 0,2% 22,0% 9,1% 7,7% Multinational financial organization based in Washington D.C., USA AAA-rated by all rating agencies Shareholder since 2011 EVGENY IVANOVSKIY Deputy Chair of the Management Board Member of the Management Board Shareholder since 2013 OLGA GRYADOVAYA Chair of the Management Board and Member of BoD Day-to-day management of the bank since 2000 Shareholder since 2000 DEG is a wholly-owned subsidiary of KfW, which is 100% owned by German Goverment AAA-rated by all rating agencies Shareholder since

5 CLEAR AND TRANSPARENT GOVERNANCE Internal Audit Committee Audit & Risk Committee Corporate Governance and Remuneration Committee Boris Kazakov, Chairman of BoD 30+years of experience in finance, former CEO of NorNIckel GENERAL SHAREHOLDERS MEETING Arvid Tuerkner Director of Regional Development Russia Leonid Ivanovski Notary public BOARD OF DIRECTORS Dietz Marina Vice-President, FI Igor Yurgens President of All-Russian Insurance Association, Chairman of Corporate Governance and Remuneration Committee Olga Gryadovaya, Chair of Management Board (Professor of Economics; 70+ scientific publications) Vladimir Mau Head of the Russian Presidential Academy of National Economy and Public Administration Sergey Shibaev Chairman of Audit & Risk Committee, former PwC Partner MANAGEMENT BOARD Alexey Vorobiev Bank for Development & Foreign Economic Affairs, VEB - Independent members Bank Board (Vice-presidents) Technological Committee Limit Committee Credit Committee Risk Management Committee 5

6 SUPPORT FROM INTERNATIONAL SHAREHOLDERS EBRD, DEG & IFC ( IFIS ) BENEFITS FACILITIES FROM INTERNATIONAL SHAREHOLDERS Collaboration with EBRD, DEG and IFC allows the Bank to access international funding and provide competitive products EBRD is an active Member of BoD and help TKB shape its business in line with best international business standards IFIs facilitate their international agenda through offering purposeorientated funding facilities through TKB (such as energy efficiency, micro and SME lending, mortgage) The support of AAA-rated institutions helps TKB in accessing international markets and establishing business links with foreign banks & companies Trade Facilitation Program Mortgage Finance* Micro lending & SME* Micro lending* Micro lending & SME Subordinated Loan* Energy Efficiency Residential Program Energy Efficiency Industrial Program SME & Leasing* Mortgage Finance $50 M $5 M $6 M $10 M $13 M Rb572 M Rb750 M $12.5 M $15 M $10 M Global Trade Finance Program Energy Efficiency Program Syndicated Loan (B Tranche)* $90 M $18 M EUR116 M Syndicated Loan A + B* $164 M Energy Efficiency and Gender Finance $ 50 M + EUR20 M * Facility has been repaid 6

7 MAIN BUSINESS SEGMENTS

8 DIVERSIFIED BUSINESS MODEL Corporate MSME Retail Business focus: Businesses with annual sales over Rb1bn and number of employees more than 250 Businesses with sales less than Rb1bn and number of employees less than 250* Mass и mass affluent Focus on 1) secured loans 2) unsecured loans to employees of corporate customers Top products: Current & term accounts Guarantees Trade finance Overdrafts Factoring & leasing Payments & payroll projects Overdrafts Long- & medium-term financing Factoring & leasing Cash collection, card processing & payment processing Mortgages Consumer & auto loans Internet & mobile banking Deposits Share: 44% of total loan book 38% of deposits 30% of total loan book 21% of deposits 26% of total loan book 41% of deposits Summary: Added-value services and important funding base Bank s core focus in lending Higher margin lending and alternative funding base * Small business, incl. microlending with annual turnover less than 400RURmln. 8

9 BANK CLIENTS АФЖС РОСНЕФТЕГАЗ 9

10 CORPORATE BANKING LOANS BY INDUSTRY (1) 16% 14% 14% Corporate loans as of 30 June 2015 amounts to 93,4RURbn 12% 11% 10% 10% 9% 8% 6% 7% 7% 7% 6% 6% 5% 4% 2% 3% 3% 3% 3% 2% 2% 1% 1% 0% (1) As of 30 June

11 CORPORATE BANKING: TRADE FINANCE 1/4 TRADE FINANCE FOCUS TKB offers a wide range of comprehensive trade finance products, including: letters of credit (with financing / discounting options) guarantees / standby LCs bilateral trade-related loan facilities (including PXF) TKB has developed various financing structures aimed at arranging medium- to long-term (3 to 7 years) ECA-covered financing to support imports of capital goods into Russia TKB supports Russian exports to CIS and EEU under EXIAR cover Well-recognized international financial institutions take exposure on TKB in Trade Finance area (next slide) TRADE FINANCE TURNOVER (1) # #298 #227 #270 #210 # # H2015 Turnover, USD M # Number of deals COOPERATION WITH ECAs TKB established long-term relationship with major ECAs worldwide: TRADE FINANCE BY INDUSTRY As of 1H % 24% Food & agricultural products Machinery, equipment & vehicles (1) Excluding syndicated term loans (2) Includes perfumery, clothing, shoes, pharmaceutical, textile, printing & household products 30% 27% Consumer non-durables (non-food) Electronics & home appliances (2) 11

12 CORPORATE BANKING: TRADE FINANCE 2/4 Danske Bank Svenska Handelsbanken Nordea Bank ING Bank Deutsche Bank Commerzbank AKA Export Finance Bank LBBW Helaba UniCredit Germany BHF Bank and others KBC Bank NV UBS BCP Credit Suisse DB Trust Company Americas CITI BNP-Paribas Societe Generale Bank Gospodarstwa Krajowego ICBC CSOB La Caixa UBI Banca Monte dei Paschi di Siena UniCredit Intesa SanPaolo Banca popolare di Vicenza Banca popolare dell Emilia Romagna Banco Popolare Group RBI UniCredit Bank Austria Raiffeisenlandesbank UOB REPUTATION OF A RELIABLE AND PROFESSIONAL PARTNER ENABLES TKB TO SUCCESSFULLY DEVELOP COOPERATION WITH BANKS ALL OVER THE WORLD 12

13 CORPORATE BANKING: TRACK RECORDS WITH ECAs & OPIC 3/4 USD year loan Equipment & Services USD USD years loan Equipment 5 year & loan Services Construction Services EUR USD years loan Equipment 5 year & loan Services Equipment & Services EUR year loan Equipment & Services USD EUR 5 years loan 000 Equipment & Services 3.5 year loan Equipment & Services EUR years loan Power Equipment USD year facility Agricultural Commodities USD year loan SME Lending EUR year loan Equipment & Services EUR year loan Equipment & Services USD year loan Agricultural Commodities EUR year loan Plastic Packing Equipment EUR year loan Plastic Packing Equipment EUR year loan Packing Equipment SEK year loan Wood-working Equipment EUR year loan Oil Production Plant EUR year loan Plastic Packing Equipment EUR year loan Aviation Equipment EUR year loan Mineral Water Equipment EUR year loan Power Equipment EUR year loan Food Equipment EUR year loan Power Equipment USD year loan Warehouse Complex construction EUR year loan Metal sawing and drilling equipment TKB IS RECOGNIZED BY VARIOUS ECAS WHICH ENABLES TKB TO SUPPORT MEDIUM & LONG-TERM INVESTMENT PROJECTS OF ITS CUSTOMERS 13

14 CORPORATE BANKING: FINANCING RUSSIAN EXPORT WITH EXIAR 4/4 RUR Financing of export deliveries of sulfur to Singapore and UK RUR Financing of tea export deliveries to Belarus RUR Financing of export deliveries of mining equipment to Kazakhstan

15 MSME LENDING KEY SEGMENTS DEVELOPMENT OF MICRO AND SMALL BUSINESS LENDING #8 by SME loans in Russia (1) 30% of total loan portfolio 2x growth in 5 years to 38RURbn Active cooperation with development agencies: Participant in EBRD SME programmes in Russia Participant in MSP Bank s SME & EE programme Participant in IFC, EBRD and IIB s EE programme Participant in IFC Gender Finance programme Participant in EXIAR Insurance Support Program for SME Exports Marketing and product components: Changes of product parameters in order to increase loyalty of existing customer portfolio Development and implementation of product bundles for all segments (small and micro) Development and introduction of multichannel marketing strategy: internet, outdoor, direct sales, partner network, etc. PARTICIPANTION IN MICRO, SME, EE AND GENDER FINANCE LENDING PROGRAMMES $ 68 M $134 M Business development: Transition to new operational model in all regional offices Development of combined model (scoring + verification) for micro business Business process optimisation (further development of Siebel CRM for MSME sector, revision of regulations and more) Increasing brand recognition in MSME sector $38 M EUR 20M (1) Expert magazine as of 1 January 2015 Currency Rates (RUR/USD): 30.06,

16 RETAIL BANKING OVERVIEW (RURbn.) RETAIL PORTFOLIO BY PRODUCT 1H2015 VS 2014 Retail loans Retail deposits 26,6 23,8 33,7 41,0 40,7 33,4 32,6 17% 21% 4% 1% 4% 1% Mortgage Consumer loans Car loans Other 17,4 74% 78% Outer circle = 1H2015 Inner circle = H2015 RATES ON RETAIL DEPOSITS RATES ON RETAIL LOANS RETAIL BANKING DEVELOPMENTS RUR USD EUR 15,8% 14,5% 9,8% 9,9% 6,3% 5,6% 5,5% 5,9% 5,3% 5,3% 5,6% 5,3% H2015 Mortgage Car loans Consumer loans 16,7% 17,5% 14,9% 17,1% 14,0% 15,9% 13,3% 13,7% 13,9% 14,2% 13,3% 12,8% H2015 Strong focus on mortgages #10 in Russia (1) New products: revolving-line mortgage & commercial mortgages, floating rates mortgages 1 RMBS transaction in pipeline Larger consumer loans continue to be available to salary-project & corporate customers. Strong focus on operating efficiency and greater automation (1) Expert RA, as of 30 July 2015 Сurrency Rates (RUR/USD): , , , , 1H ,

17 PLASTIC CARDS, DEPOSITS AND E-BANKING OVERVIEW OVERVIEW: Principal member of Visa Int. and Mastercard Int Member of the National System of Payment Cards As of the volume of card issue made 176,9 thousand cards Own card and terminal processing centers Member of Integrated Settlement Network (ISN), uniting more than 250 credit institutions Own terminal network (more than 480 payment terminals). Acceptance of payments in favor of more than 1100 public institutions (hospitals, policlinics, multipurpose centers, schools, etc.) and commercial organizations (insurance companies, etc.) ТОP-15 by collector services CARD PRODUCTS FOR CLIENTS PREMIUM CLASS CARDS - VISA INFINITE CARD provides exclusive access to special conditions and discounts in the sphere of trade and service all over the world PAYROLL CARDS Debit card for receiving a salary within the contract with employer DEBIT CARDS Debit card for any bank client CORPORATE CARDS Debit cards for corporate customers INSTANT-ISSUE CARD Instant-issue cards for payments to individuals within the projects with the Bank partners CREDIT CARDS Bank card with credit limit and grace period for any bank client OVERDRAFT CARDS- Bank card with overdraft for payroll customers with 2 month interest-free use of proceeds INTEREST INCOME CARD Debit card with interest accrual on demand balance GOLD MILE Debit card with loyalty program for travelling clients 17

18 REGIONAL PRESENCE

19 REGIONAL PRESENCE KEY FACTS: Sergiev Pasad 1H2015 A diverse and well established regional Korolev Moscow Podolsk Shelkovo Zhukovski network outside of Moscow individuals and corporate customers in more than 18 regions Kolomna 71 outlets: Headquarter located in Moscow St.Petersburg 17 branches 35 additional offices Kaliningrad Bryansk Belgorod Yaroslavl Kaluga Moscow Nizhny Novgorod Ryazan Syktyvkar Perm 17 credit-cash offices + operational offices 1 Mortgage Center 84 cash advance offices 314 ATMs POS terminals Krasnodar Voronezh Rostov-on-Don Samara Yekaterinburg Tyumen 432 Payment terminals Solikamsk Krasnovishersk Novosibirsk Krasnokamsk Dobryanka Perm Barnaul Kungur High penetration, branch present in region High penetration, covered from branch in adjacent region Average or low penetration, no branch presence Branch Very long-term presence branch Remote office 19

20 FULL CUSTOMER SERVICE FOR FINANCIAL INSTITUTIONS «BANK FOR BANKS»

21 FULL CUSTOMER SERVICE FOR FINANCIAL INSTITUTIONS «BANK FOR BANKS» TRANSKAPITALBANK KEY PARTNER OF EEU & CIS Strong presence in the Russian and CIS financial markets Creation of uniform settlement and payment space of the CIS Participation in intergovernmental panels Creation of infrastructure for ensuring financial interests of EEU and CIS clients PRODUCTS FOR BANKS-PARTNERS Multi-currency settlement business Deposit and conversion operations GEOGRAPHY OF INTERESTS IN THE INTERBANK CIS, GEORGIA AND BALTIC MARKET AZERBAIJAN KYRGYZSTAN Banknote operations, purchase of the Bank s of Russia coins from contractors Russian export financing under EXIAR Insurance Support Program Financing of export-import transactions via instruments of documentary business for clients of banks-partners Arrangement of syndicated loans for bank of the CIS countries Full complex of operations in stock markets of the Russian Federation Capabilities of its own processing center Services of evaluating company «Expert Capital» ARMENIA BELARUS GEORGIA KAZAKHSTAN LATVIA MOLDOVA TURKMENISTAN TAJIKISTAN UZBEKISTAN 21

22 PROGRAM «BANK FOR BANKS»: COOPERATION WITH EXIAR TRANSKAPITALBANK one of the main partners of the Russian Agency for Export Credit and Investment Insurance EXIAR Russian export finance under EXIAR Insurance - locomotive in the product line of the Bank, offered to CIS banks. EXIAR areas of activity: Insurance cover of export credits against commercial and political risks Insurance cover of the Russian investments outside Russia from political risks TRANSKAPITALBAK realized the base product line of EXIAR: Complex export credit insurance TRACK RECORDS WITH EXIAR Loan to the Buyers Bank Confirmed letter of credit Supplier credit insurance Buyers' bank credit insurance Confirmed letter of credit insurance Financing of GAZ vehicles export deliveries to Belorussia Financing of oil products export deliveries to Tajikistan Financing of wood chip board export deliveries to Uzbekistan Financing of KAMAZ vehicle chassis export deliveries to Uzbekistan Export credit insurance for working capital financing (only for SME customers) 22

23 PROGRAM «BANK FOR BANKS»: ARRANGEMENT OF SYNDICATED LOANS FOR CIS FI TKB acted as an Arranger of 3 syndicated loans for CIS banks for the total amount of 380mln.euro What we do: Act as arranger of syndicated loans for CIS banks Have rich investor base and wealth of experience in the arrangement of loans Develop the secondary market of syndicated lending Provide full range of activities for arrangement of syndicated loans Attraction of syndicated loan enables to get financing on favourable terms Track records EUR months Mandated lead arrangers AlfaBank (RF) Promsvyazbank (RF) Novikombank (RF) Lead arrangers Globexbank (RF) Sviaz-Bank (RF) Uralsibbank (RF) Gazprombank (RF) Bank Finservice(RF) UBRD and others July 2015 EUR months Lead arrangers AKA Bank (Germany) Promsvyazbank (RF) Globexbank (RF) Novikombank (RF) Sviaz-Bank (RF) Bank Zenit (RF) Bank Intesa (RF) Asian-Pacific Bank (RF) and others May 2015 EUR USD months Primary arrangers Promsvyazbank (RF) Novikombank (RF) Arrangers Asia-Pacific Bank (RF) July

24 CAPITALISATION AND PROFITABILITY RATIOS: ANALYSIS OF FINANCIAL RESULTS

25 BALANCE SHEET ASSETS & LIABILITIES STRUCTURE As of 30 June 2015 FUNDING STRUCTURE, % OF LIABILITIES Loans to customers 70% Customer accounts 59% 15,51% 18,79% 21,43% 19,98% 6,46% Including Retail deposits: 41% 11,26% 5,92% 6,04% 19,96% 17,33% 15,16% 20,75% Including Retail loans: 27% Financial assets 21% Deposits from banks Including Special-purpose financing: 47% Debt securities issued 18% 5% 20,88% 21,73% 23,95% 25,69% Cash & equivalents Other assets 8% 1% Capital Including Subordinated debt: 34% 17% Other 1% Liabilities 15,86% 12,43% 11,49% 9,48% H2015 International and purpose-oriented funding Retail deposits Demand deposits Securities Corporate deposits 25

26 INTERNATIONAL AND DOMESTIC FUNDING SYNDICATED LOANS INTERNATIONAL BONDS USD 70,000,000* * Syndicated Loan Libor % Libor % 1+1 year USD 164,000,000* A+B Syndicated Loan A Loan USD 60,000,000 A L+4.10% Tranche B Loan USD 60,000,000 3 years USD 104,000,000 L+4.10% L+3.25% 3 years 1 year EUR 65,000,000* Club Syndicated Loan Euribor % 1 year EUR 116,500,000* Syndicated Loan Euribor + 2.1% 1 year USD 175,000,000* RegS Senior Issue 9.125% 3 years USD 100,000,000 LT2 Issue 10NC % 10 years USD 28,200,000* Repurchase of RegS Senior issue via Tender (MDA) USD 100,000,000 LT2 Issue Consent Solicitation 10% 5,2 years STATE SUPPORT & DEVELOPMENT PROGRAMMES DOMESTIC BONDS SECURITISATION 2 Subordinated Loans from Vnesheconombank RUR 986,747,840 Loan Facilitites form SME Bank RUR 1,450,000,000 Loan Facilitites from SME Bank RUR 1,690,000,000 Loan Facilitites form SME Bank RUR 1,630,000,000 Loan Facilities from SME Bank RUR 2,681,000,000 RUR 1,800,000,000 Domestic Bond Issue 8.15% RUR 1,000,000,000 Subordinated Bond 13% RUR 2,000,000,000 Domestic Bond Issue 9.7% Mortgage Securities RUR 4,117,989,000 (tranche A) RUR 457,555,000 (tranche B) 10 years 5-7 years 5-6 years 1-5 years 5-7 years 5 years 6 years 10 years 8% 33 years , Outstanding Amount to SME Bank as of ,3RURbn 22% 15% 24% 39% 32% 14% 24% 30% 22% 21% 18% 24% 15% 23% 25% 29% 23% 23% 24% 27% 26% Syndicated loans International bonds State development Domestic bonds Securitisation H2015 * Facility has been repaid 26

27 KEY FINANCIAL RATIOS Audited IFRS (RURbn) H2015 Total Assets Total Loans Total Liabilities Total Customer Accounts Tier 1 Equity Total Equity (Tier 1 + Tier 2) Net Interest Income Net Profit ROAE 17.1% 14.8% 10.8% 11.9% ROAA 1.9% 1.7% 1.2% 1.3% CTI (1) 51.6% 55.6% 53.4% 31.4% CAR 14.8% 14.6% 14.5% 16.0% СTA 3.4% 3.3% 2.8% 2.5% NPLs/Total Loans (2) 6.7% 4.4% 4.5% 8.6% Currency Rates (RUR/USD): , , , , ,5240 (1) Excluding for provisions (2) NPLs include over 90 days overdue loans 27

28 FINANCIAL COVENANTS RATIO LIMIT 1H CAR Min. 12% 16,0% 2. Equity to Assets Ratio Min. 5% 11,4% 3. Single Economic Group Exposure Ratio Max. 25% 14,8% 4. Aggregate Large Exposure Ratio (>10% of Equity) Max. 400% 52,0% 5. Related Party Exposure Ratio Max. 15% 0,0% 6. Open Credit Exposure Ratio Max. 15% 2,8% 7. Aggregate Foreign Exchange Risk Max. 20% 2,4% 8. Single Currency Foreign Exchange Risk Max. 10% 2.2% 9. Operating expenses/operating results Max. 60% 31,4% 10. Tier 1 Equity/RWA Min. 8% 10,9% 11. NPLs/Total Loans Max. 10% 8,6% 12. N1 Min. 10 % 16,0% 13. N2 Min. 15 % 73,4% 14. N3 Min. 50% 96,4% 15. N4 Max. 120% 91,8% 28

29 CAPITAL ADEQUACY MANAGEMENT OF CAPITAL (RURbn) 14,8% 14,5% 14,5% 12,9% 12,3% 12,4% 24,1 21,1 19,6 17,8 16,0 13,2 6,4 6,3 5,1 16,0% 16,0% 27,7 18,9 8,8 Management target: CAR>13% EBRD & IFC: CAR>12% CBR: CAR>10% H2015 Tier 1 Tier 2 Total Basel II Capital CAR Н1 COMMENTS: As of 30 June 2015 CAR was 16,0%, well above BIS requirement of 8%, requirement of IFC and EBRD of minimum 12% and management covenant of 13%. In June 2015 TKB TransKapitalBank ( TKB ) successfully solicited the consent of note holders to convert its old style subordinated notes due July 18, 2017 into Basel III compliant Tier 2 notes in line with CBR Regulation No. 395-P On the Methodology for Determining the Amount of Own Funds (Capital) of Credit Organisations ( Basel III )" dated 28 December These changes will allow the Bank to increase its total capital by around 3.0 billion Rub and boost its capital adequacy ratios under RAS ( N1 ) and IFRS by almost 1.8% Currency Rates (RUR/USD): , , , , ,

30 CREDIT RISK AND QUALITY OF LOAN PORTFOLIO

31 KEY PROFITABILITY RATIOS GROWTH OF NET INTEREST AND COMMISSION INCOME 5,3% 5,0% 5,0% 5,2% 1,3 5,7 3,4% 1,4 6,2 3,2% 1,7 7,1 2,8% 1,8 8,4 2,5% Net fee and commission income (RURbn) Net interest income (RURbn) Net interest margin Operating expenses to assets H2015 NET BANKING INCOME (RURbn) NET INCOME GROWTH 17,1% 20% 80% 16% 84% 14% 86% 37% 63% CAGR Other income Net interest income 14,8% 17% CAGR 2% 2,1 2,2 10,8% 1,8 11,9% 2,2 Net income (RURbn) ROE H H2015 Note: NIM = net interest income divided by interest earning assets (due from banks, debt related trading securities and repos, net loans to clients); Net banking income excludes provisions, net other income includes net commission income; RoE = Return on equity; Income statement items annualised 31

32 LOAN QUALITY LARGEST BORROWERS (1) (% OF TOTAL LOANS) Top 10 Top 20 ТОP-20 credit exposure/core earnings ТОP-20 credit exposure/tier 1 Equity RELATED PARTY LENDING % of Total Equity CBR requirement (% of Total Equity) 978% 1010% 1084% 20% 20% 20% 20% 29% 26% 27% 29% 17% 16% 17% 18% 459% 254% 216% 236% 221% 2,8% 0,0% 0,0% 0,0% H2015 LOSS PROVISIONS AND NPLS (1,2) PROVISIONS/ NPLS NPLs/Total Loans Loss Provisions 7,6% 6,7% 5,9% 5,7% Cost of Risk 8,6% 8,1% 95,00% 135,11% 126,10% * 95,02% 4,4% 4,5% 4,7% 0,9% 0,8% 1,3% H H2015 (1) Total loans means loans before impairment (2) NPLs include over 90 days overdue loans * The ration is below 100% as the Bank implements correction on the loan collateral 32

33 LIQUIDITY MANAGEMENT 33

34 LIQUIDITY MANAGEMENT LIQUIDITY BUFFER 30 June 2015 SECURITY PORTFOLIO STRUCTURE 25% 23% Cash and cash equivalents 1% 3% 51.9 RURbn Marketable securities 18% 42% 29% 52% Unutilized limit of the Central Bank under 312-P 56% 14% 2% 3% LIQUIDITY BUFFER 30 June 2015 (RURbn) 82% 14% 11% 41% 11% 54% 13,0 7,0 18,7 12,4 6,0 19% Interbank limits in FC Interbank limits in RUR Interbank market funding by stress-test H2015 Federal loan bond Corporate bonds* Shares RF eurobonds Corporate eurobonds Local government bonds * Corporate eurobonds includes marketable securities of first class companies blue chips, included in the Lombard List of the CBR 34

35 CONTACTS ADDRESS: HQ: 1, Mashkova str. Moscow, Russian Federation Tel.: +7 (495) Fax: +7 (495) Website: Mrs. Elena Shirinskaya Vice-President, PhD in Economics Mrs. Stella Danielova Vice-President Director of FI and Export Financing Division Tel.: +7 (495) (ext. 1948) Mob.: +7 (985) Tel.: +7 (495) (ext. 1569) Mob.: +7 (915) Mrs. Anna Gorodnicheva Deputy Director of FI and Export Financing Division Tel.: +7 (495) (ext. 2309) Mob.: +7 (985) Mr. Andrey Generalov Head of Interbank Business Department, FI and Export Financing Division PhD in Economics Tel.: +7 (495) (ext. 2106) 35