VTB Investor Presentation

Investor Presentation 

August 2013 

1 

© VTB 2013

Some of the information in this presentation may contain projections or other forward-looking statements regarding future events or the future 

financial performance of JSC VTB Bank ("VTB") and its subsidiaries (together with VTB, the "Group"). Such forward-looking statements are based 

on numerous assumptions regarding the Group's present and future business strategies and the environment in which the Group will operate in the 

future. 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 differ materially from what we have expressed or forecasted 

in the forward-looking statements. These forward-looking statements speak only as at the date of this presentation and are subject to change 

without notice. We do not intend to update these statements to make them conform with actual results. 

2 


Macroeconomic Environment and 

Russian Banking Sector 

3 


12.0 

10.0 

8.0 

6.0 

4.0 

2.0 

0.0 

Macroeconomic Environment and Outlook 

Russia: growth slowdown coming to an end 

Inflation path: strong disinflation ahead 

Key economic indicators, % 

Headline CPI, % YoY 

4.3 

10.2 

6.4 6.6 

3.4 

2.8 

8.6 

6.0 

2.4 

3.9 4.2 

3.7 

3.0 

1.5 

3.5 

5.0 

10% 

9% 

8% 

7% 

6% 

5% 

4% 

VTBC 

forecast 

2011 2012 2013F 2014F 

GDP, real Retail sales 

Real wages Fixed capital investment 

3% 

Jan-10 

Mar-10 

May-10 

Jul-10 

Sep-10 

Nov-10 

Jan-11 

Mar-11 

May-11 

Jul-11 

Sep-11 

Nov-11 

Jan-12 

Mar-12 

May-12 

Jul-12 

Sep-12 

Nov-12 

Jan-13 

Mar-13 

May-13 

Jul-13 

Sep-13 

Nov-13 

Clean sovereign balance sheet sheet 

Source: Rosstat, VTB Capital Research 

One of the largest FX reserves globally 

Source: Rosstat, VTB Capital Research 

Government debt as % of GDP, FY’2012 

Top countries by FX reserves, USD bn (1) 

68% 

65% 

23% 

9% 

36% 

47% 

3,312 

1,259 

625 

534 526 403 

India 

Brasil 

China 

Russia 

Turkey 

CEE 

median 

China Japan Saudi Switzerland Russia Taiwan 

Arabia 

Source: Ministry of Finance of the Russian Federation , IMF, Eurostat 

Source: IMF, CIA 

(1) Data as of: China - Dec 2012, Japan - Feb 2013, Saudi Arabia - Dec 2012, Russia - Dec 2012, Switzerland - Jan 2013, Taiwan - Dec 2012. 

4 


14.0% 

12.0% 

10.0% 

8.0% 

6.0% 

4.0% 

2.0% 

0.0% 

90% 

80% 

70% 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

Long Term Potential – Solid Opportunities for Banking Business Development 

Commentary 

Growth potential driven by low penetration 

Gross loans as % of GDP (1H’2012) 

Retail is an important source of growth and margin 

Retail loans as % of GDP (1H’2012) 

118% 

51% 49% 47% 

59% 56% 

28% 

23% 

26% 

19% 

9% 

11% 

China India Brasil Russia CEE 

median 

Turkey 

China India Brazil Russia CEE median Turkey 

Strong Secure capital funding base base enhances enhances stability stability 

Decreasing NPL levels 

Equity as % of total assets (1H’2012) 

12.6% 

8.9% 

7.3% 

6.3% 

10.5% 

12.5% 

Overdue loans and loan loss provisions 

as % of Russian banking sector gross loan portfolio 

11.6% 

10.5% 

8.6% 

Overdue loans 

LLP 

7.6% 

6.3% 

5.7% 5.1% 

4.5% 

Russia Brasil India China CEE 

median 

Turkey 

2009 2010 2011 2012 

Russian banking sector: growth supported by quality fundamentals 

Source: National banks and banks regulators. 

5 


VTB Group – an attractive equity story 

6 


VTB: Successful Growth Story – through Organic Growth and M&A 

VTB corporate history 

Establishment and 

recognition 

Development and 

growth 

Efficient growth 

strategy 

1990-2001 2002-2010 2010-2013 

• Established in October 1990 

• VTB Bank joined the top 5 largest 

banks in Russia 

• 2005: Launched VTB24 

• 2007: VTB became the 1st Russian 

bank to launch its IPO 

• 2008: Launched VTB Capital 

• 2010: Launched its new strategy 

based on efficient growth 

• Targeting above market growth for 

retail and efficiency for CIB 

In the past 10 years, VTB Group demonstrated over 30 times increase in total assets 

Acquisition of 


• ICB (later VTB North-West) 

• MNB (now VTB Capital plc) 

• BCEN-Eurobank (now VTB France) 

• Donau-Bank (now VTB Austria) 

• OWH (now VTB Germany) 

• UGB (now VTB Georgia) 


Slavneftebank (now VTB 

Belarus) 

Bank of Moscow 


TransCreditBank 

6,790 

7,416 

(RUB bn) 


• Armsberbank (now VTB Armenia) 

• Guta-Bank (now VTB24) 

231 331 494 


Mriya (now PJSC VTB Bank 

(Ukraine) 

1,057 

1,380 

2,273 

3,697 3,611 

4,291 

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 

7 © VTB 2013

VTB: Unique Business Model – Universal Banking Platform Incorporating 

CIB, Retail Banking and Other Financial Services 

Corporate-investment banking 

Retail banking 

Retail banking 

Corporate banking 

Transaction banking 

Investment banking 

■ 

■ 

■ 

Significant scale and strong 

market position 

Broad corporate client base 

Well established relationships 

with leading Russian 

companies across all 

economic sectors 

A separate transaction 

banking unit established to 

grow the Group’s 

commission-based income 

by increasing sales of 

existing transaction-related 

products and services 

■ 

■ 

■ 

Strong franchise 

Full range of investment 

banking services 

VTB Capital, the Group’s 

investment bank –the leader 

in the Russian Investment 

banking industry 

■ The Group is the second-largest Russian 

retail bank by loans and deposits as of 

March 31, 2013. 

■ Extensive distribution network, with broad 

coverage throughout the Russian 

Federation. 

Non-banking financial businesses 

LEASING 

INSURANCE 

FACTORING 

VTB Leasing is today one of the 

leading Russian leasing companies, 

offering a broad range of services, with 

regional offices across Russia and 

subsidiaries in the CIS and Europe 

VTB Insurance provides individuals and 

institutions with a full range of services: 

property insurance, civil and professional 

liability insurance, and personal insurance 

(excluding life insurance) 

The Group offers factoring and ancillary 

services, incl. the management and collection 

of receivables and credit management, to 

corporate clients through its factoring 

company VTB Factoring 


40,000 

35,000 

30,000 

25,000 

20,000 

15,000 

10,000 

5,000 

30,000 

25,000 

20,000 

15,000 

10,000 

5,000 

0 

0 

16.0% 

14.0% 

12.0% 

10.0% 

8.0% 

6.0% 

4.0% 

2.0% 

0.0% 

25.0% 

20.0% 

15.0% 

10.0% 

5.0% 

0.0% 

Corporate-Investment Banking 

Corporate loan market in Russia 

VTB Group corporate loan portfolio 

VTB corporate loan market share in Russia 

+3% 

(RUB bn) 

13.0% 

12.2% 

2 

2 

13,163 14,849 

15.5% 

14.7% 14.7% 

2 

2 

2 

18,803 21,508 21,648 

(RUB bn) 

3,690 

+11% 

3,696 

3,752 

3,965 

4,100 

31-Dec-09 31-Dec-10 31-Dec-11 31-Dec-12 31-Mar-13 

31-Mar-12 

30-Jun-12 

30-Sep-12 

31-Dec-12 

31-Mar-13 

Corporate deposit market in Russia 

VTB Group corporate liabilities 

(RUB bn) 

VTB corporate deposit market share in Russia 

21.1% 

18.4% 18.2% 

15.0% 

12 

2 

12.7% 

2 2 

2 

2 

2 

15,326 15,428 

10,893 13,694 

9,358 

(RUB bn) 

Term deposits 

2,143 

740 

1,403 

Current accounts 

+3% 

2,123 2,191 

676 

760 

1,448 1,430 

2,239 

920 

1,318 

-2% 

2,199 

759 

1,440 


31-Mar-12 

30-Jun-12 

30-Sep-12 

31-Dec-12 

31-Mar-13 

Corporate loans to GDP (1) 

VTB average yield and cost of funds 

90% 

Average yield on 

corporate loans 

Average cost of corporate 

deposits and current accounts 

42% 

36% 

26% 

33% 37% 

8.6% 

4.0% 

9.0% 

9.0% 

9.6% 

9.3% 

5.0% 

China India Russia Brazil CEE median Turkey 

4.6% 

4.5% 

4.5% 

4.3% 

4.3% 

1Q'12 

(1) Data as of 1H’2012. Source: National banks and banks regulators. 

(2) 1H’12 data adjusted for promissory notes (equal to RUB 95.2 bn) that according to management view, can be classified as customer deposits. 

2Q'12 

3Q'12 

4Q'12 

1Q'13 

9 


12,000 

10,000 

8,000 

6,000 

4,000 

2,000 

0 

25,000 

20,000 

15,000 

10,000 

5,000 

0 

15.0% 

13.0% 

11.0% 

9.0% 

7.0% 

5.0% 

3.0% 

9.0% 

7.0% 

5.0% 

3.0% 

1.0% 

-1.0% 

-3.0% 

Retail Banking 

Retail loan market in Russia 

VTB Group retail loan portfolio 

VTB retail loan market share in Russia 

+39% 

+7% 

(RUB bn) 

13.7% 13.3% 13.6% 

12.1% 

2 

10.2% 

2 

2 

2 

2 

7,737 

8,098 

5,551 

3,574 4,085 


(RUB bn) 

861 

470 

79 

312 

31-Mar-12 

950 

528 

87 

334 

30-Jun-12 

1,027 

582 

94 

351 

30-Sep-12 

1,120 

627 

102 

391 

31-Dec-12 

1,193 

669 

108 

415 

31-Mar-13 

Cash & credit 

card loans & 

other 

Car loans 

Mortgage 

loans 

Retail deposit market in Russia 

VTB Group retail deposits 

(RUB bn) 

VTB retail deposit market share in Russia 

9.0% 8.7% 9.0% 

7.2% 

6.0% 

2 2 2 

2 

2 

14,739 

11,638 

14,251 

7,503 9,730 

(RUB bn) 

1,190 

242 

948 

+28% 

1,315 

265 

1,050 

1,331 

270 

1,061 

1,434 

307 

1,127 

+7% 

1,529 

270 

1,259 

Current 

accounts 

Term 

deposits 


31-Mar-12 

30-Jun-12 

30-Sep-12 

31-Dec-12 

31-Mar-13 

Retail loans to GDP (1) 

VTB average yield and cost of funds 

28% 

23% 

26% 

19% 

15.9% 

Average yield on 

loans to individuals 

15.7% 

16.6% 

Average cost of retail deposits 

and current accounts 

17.6% 

15.8% 

9% 

11% 

10.9% 

10.6% 

China India Brazil Russia CEE median Turkey 

5.0% 

5.3% 

5.3% 

5.2% 

5.2% 

1Q'12 

2Q'12 

3Q'12 

4Q'12 

1Q'13 

(1) Data as of 1H’2012. Source: National banks and banks regulators. 

10 


Value Creation through New Initiatives. Launch of Leto Bank in 2012 

Segment-oriented approach in servicing retail customers 

VIP 

Affluent 

Mass 

affluent 

Upper mass 

▪ Dedicated communication channels: 

premium branches, separate web platform 

and call-center 

▪ Dedicated personal relationship managers 

▪ Package product offering 

(banking, insurance, asset management) 

▪ Tailor-made pricing and product offering 

▪ Dedicated service sectors 

in all branches 

▪ Exclusive conditions for banking 

products 

▪ Non-financial services 

(e.g. advisory) 

▪ Cost optimisation strategy with 

focus on high quality service 

▪ Special pricing on banking 

products 

Leto Bank – new retail mass market initiative 

– Oriented on the mass and lower-mass retail segments 

– Offers high-demand services such as cash loans and 

POS loans 

– 201 branches and 13 thsd POS opened as of 1H’2013 

POS loan market in Russia 

(RUB bn) 

105 

+83% 

Established as an organic addition to 

VTB Group's retail business to help 

its long-term and continued success 

in Russia’s banking market 

+18% 

163 192 226 

+17% 

265 

2009 2010 2011 2012F 2013F 

Mass 

Lower mass 

▪ Standard product offering 

▪ Focus on maximum 

standardisation and cost 

optimisation 

Cash loan market in Russia 

+45% 

+29% 

Customers not using 

banking products 

(RUB bn) 

+72% 

1,606 1,923 

2,768 

4,004 

5,163 

2009 2010 2011 2012F 2013F 

11 


VTB: Strong Investment Opportunity 

Leading player in Russia 

National champion 

• Leading Russian bank with strong and 

consolidated positioning in all key segments 

– #2 by assets and all key banking metrics 

– Russia represents c. 75% of total assets 

Successful growth story 

• Strong and rapidly expanding positioning 

in a growth economy 

• Supported by acquisitions 

– VTB24, Promstroybank, TransCreditBank, 

Bank of Moscow 

Rank 

Market 

share 

188 231 331 494 

15.2% 14.7% 18.2% 

1,057 1,380 

2,273 

3,697 3,611 

13.6% 9.0% 

Assets Corporate loans Corporate deposits Retail loans Retail deposits 

Strong asset growth 

2 2 2 2 2 

CAGR (FY’2001 – 1Q’2013) 43% 

4,291 

6,790 

7,416 7,603 

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1Q'2013 

(RUB bn) 

Well established universal banking model Well diversified revenue mix (1) 

• Diversified business model 

– Successful expansion of retail franchise: 

In 1Q’2013, VTB Group retail loans 

grew 7% YTD and comprise 23% of total book 

– VTB is the leading investment bank in Russia 

31% 44% 8% 10% 

Retail 

Loans & Deposits and 

Transaction banking 

8% 

Investment banking 

Treasury 

Other 

Superior growth in retail 

Strong domestic IB 

• Russia and CIS M&A: #1 (8 deals) (2) 

• Russia and CIS DCM: #1 (34 deals) (2) 

• Russia and CIS ECM: #4 (1 deal) (2) 

With focused international presence 

Globally connected to significant trade flows / interests with Russia 

• Operating in 22 countries, servicing 

about 16 million customers 

• Well positioned to support Russian businesses 

abroad 

Austria 

Germany 

UK 

France 

Italy 

Russia 

Belarus Kazakhstan 

Ukraine 

Georgia 

Kyrgyzstan 

Azerbaijan 

Cyprus Armenia India 

Dubai 

Singapore 

China 

Vietnam 

New York 

• c. 1,900 branches across 

Russia, CIS and Europe 

• Solid client base - c.16 mln 

active retail and corporate 

customers 

Angola 

(1) Calculated based on revenues from external customers (1Q’2013). 

(2) As of 31 March, 2013. Source: Dealogic. 


Attachments 

1. VTB Group Financials 14 

2. VTB Group Public Debt Instruments 22 

13 


VTB Group Financials 

14 


VTB Group 1Q’2013 and FY’2012 Financial Highlights: P&L and Key Ratios 

Income Statement – Key Indicators 

(in RUB bn) 

1Q’2013 

1Q’2012 

y-o-y 

FY’2012 

FY’2011 

y-o-y 

Net interest income before provisions 

73.8 

54.0 

36.7% 

246.0 

227.0 

8.4% 

Net fee and commission income 

11.5 

10.3 

11.7% 

48.3 

39.2 

23.2% 

Net result from financial instruments (1) (1.5) 

22.9 

n/a 

37.2 

(7.6) 

n/a 

Operating income before provisions (2) 

92.9 

95.4 

-2.6% 

369.5 

286.6 

28.9% 

Provision charge for loan impairment 

(22.0) 

(20.4) 

7.9% 

(59.4) 

(31.6) 

88.0% 

Staff costs and administrative expenses 

(49.2) 

(42.5) 

15.8% 

(191.6) 

(141.5) 

35.4% 

Net profit 

15.7 

23.3 

-32.6% 

90.6 

90.5 

0.1% 

Key Financial Ratios 

(in RUB bn) 1Q’2013 1Q’2012 y-o-y FY’2012 FY’2011 y-o-y 

Net interest margin (3) 

4.5% 

3.8% 

70 bps 

4.2% 

5.0% 

-80 bps 

Cost of risk (4) 

1.6% 

1.7% 

-10 bps 

1.2% 

0.9% 

30 bps 

Cost / Assets 

2.6% 

2.6% 

- 

2.8% 

2.7% 

10 bps 

ROE 8.1% 

14.9% -680 bps 

13.7% 15.0% -130 bps 

ROA 0.8% 

1.4% -60 bps 

1.3% 1.7% -40 bps 

(1) Calculated including income from securities, FX, gains arising from extinguishment of liability, net recovery of losses on initial recognition of financial instruments, restructuring and other gains on loans and advances to customers. 

(2) Operating income before provisions is calculated before provisions for impairment of debt financial assets and impairment of other assets, contingencies and credit-related commitments. 

(3) Net interest income divided by average interest earning assets, which include gross loans and advances to customers, due from other banks (gross), debt securities and correspondent accounts with other banks. 

(4) Represents provision charge for impairment of debt financial assets to the average gross loan portfolio. 

15 


VTB Group 1Q’2013 and FY’2012 Financial Highlights: Balance Sheet 

Balance Sheet – Key Indicators 

(in RUB bn) 

31-Mar-2013 

31-Dec-2012 

YTD 

31-Dec-2012 

31-Dec-2011 

y-o-y 

Gross loan portfolio 

5,292.7 

5,084.8 

4.1% 

5,084.8 

4,590.1 

10.8% 

- corporate loans 

4,100.1 

3,964.6 

3.4% 

3,964.6 

3,766.0 

5.3% 

- retail loans 

1,192.6 

1,120.2 

6.5% 

1,120.2 

824.1 

35.9% 

Total assets 

7,602.8 

7,415.7 

2.5% 

7,415.7 

6,789.6 

9.2% 

Customer deposits 

3,727.9 

3,672.8 

1.5% 

3,672.8 

3,596.7 

2.1% 

- corporate deposits 

2,198.6 

2,238.7 

-1.8% 

2,238.7 

2,435.3 

-8.1% 

- retail deposits 

1,529.3 

1,434.1 

6.6% 

1,434.1 

1,161.4 

23.5% 

Total liabilities 

6,819.5 

6,649.6 

2.6% 

6,649.6 

6,164.5 

7.9% 

Total shareholders’ equity 

783.3 

766.1 

2.2% 

766.1 

625.1 

22.6% 

Key Asset Quality Ratios 

(in RUB bn) 

31-Mar-2013 

31-Dec-2012 

YTD 

31-Dec-2012 

31-Dec-2011 

y-o-y 

NPL ratio (1) 

5.4% 

5.4% 

- 5.4% 

5.4% 

- 

LLR ratio (2) 

6.5% 

6.4% 

10 bps 

6.4% 

6.3% 

10 bps 

(1) Non-performing loans (NPLs) represent impaired loans with repayments overdue by over 90 days. NPLs are calculated including the entire principal and interest payments. Ratio is calculated to total gross loans including 

financial assets classified as loans and advances to customers pledged under repurchase agreements. 

(2) Loan-loss reserve ratio represents allowance for loan impairment to total gross loan portfolio including financial assets classified as loans and advances to customers pledged under repurchase agreements. 

16 


VTB Group 1Q’2013 Segment Analysis 

Corporate – Investment Banking 

1Q’2012 1Q’2013 

-21% 

Segment result (profit before tax) 

52.9 

(RUB bn) 

+38% 

21.0 

29.0 

+4% 

5.5 5.7 4.7 

21.7 

3.5 3.5 

41.7 

20.6 

-50% 

10.2 

Net interest 

income 

Net fee and 

commision income 

Net result from 

financial 

instruments 

Treasury result 

allocation and 

other 

Operating income 

before 

provisions 

1Q’2012 1Q’2013 

Retail Banking 

+31% 

1Q’2012 1Q’2013 

+36% 

49.1 

Segment result (profit before tax) 

34.2 

36.1 

+19% 

26.2 

+39% 

5.9 

8.2 6.7 

4.0 

(RUB bn) 

13.3 

15.8 

Net interest income 

Net fee and 

commission 

income 

Treasury result 

allocation and 

other 

Operating income 

before 

provisions 

1Q’2012 1Q’2013 

17 


Strong Core Banking Income Supported by Stable NIM 

Operating income before provisions (1) and Net interest margin (2) 

(RUB bn) 

4.6% 

4.1% 4.1% 

4.5% 

3.8% 

95.4 

96.8 

110.4 

14.1 

92.9 

10.3 

66.9 

12.4 

11.5 

54.0 

11.5 

71.7 

61.9 

73.8 

58.4 

22.9 

8.9 13.9 

8.2 5.5 13.6 10.7 9.1 

(8.5) 

(1.5) 

1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 

Net interest spread 

Net interest margin 

Net fee and 

commission income 

Net interest income 

before provisions 

Net result from financial 

instruments (3) 

Other operating income 

Average yield on interest earning assets 

Average cost of interest bearing liabilities 

Subordinated debt 

Debt securities issued 

Customers deposits 

Due to banks and other borrowed funds 

9.0% 

9.3% 

9.5% 

9.9% 

9.6% 

7.8% 

8.0% 

Cost of funds (4) 6.2% 

7.7% 

7.7% 

7.9% 

3.9% 

4.6% 

4.5% 

5.8% 

6.6% 

6.2% 

7.3% 

4.9% 

4.8% 

5.0% 

5.0% 

5.0% 

5.1% 

5.1% 

5.2% 

5.3% 

5.1% 

4.8% 

4.3% 

4.8% 

4.7% 

4.7% 

1Q'12 

2Q'12 

3Q'12 

4Q'12 

1Q'13 

1Q'12 

2Q'12 

3Q'12 

4Q'12 

1Q'13 

(1) Operating income before provisions is calculated before provisions for impairment of debt financial assets and impairment of other assets, contingencies and credit-related commitments. 

(2) Net interest income divided by average interest earning assets, which include gross loans and advances to customers, due from other banks (gross), debt securities and correspondent accounts with other banks. 

(3) Calculated including income from securities, FX, gains arising from extinguishment of liability, net recovery of losses on initial recognition of financial instruments, restructuring and other gains on loans and advances to customers. 

(4) Represent annualised average rates (expense for the period divided by average balance). 

18 


Staff and Administrative Expenses 

Staff costs and administrative expenses 

45.4% 

66.7% 

49.4% 51.4% 53.0% 

(RUB bn) 

42.5 44.6 47.8 

56.7 49.2 

19.8 20.4 21.9 29.9 20.3 

22.7 24.2 25.9 26.8 28.9 

1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 

Cost / Income ratio 

Administrative expenses 

Staff costs (1) 

2.6% 2.7% 2.7% 3.1% 2.6% 

Cost / Assets 

1Q'12 

2Q'12 

3Q'12 

4Q'12 

1Q'13 

Number of employees 

Staff and administrative expenses per employee (2) 

CIS and other 

Europe 

Russia 

+5% 

-8% 

69,403 71,602 

10,085 10,214 

980 

1,007 

76,528 

9,628 

1,027 

84,764 

80,860 

9,682 

9,715 

1,103 1,155 

2.6 

2.4 

58,338 60,381 

65,873 70,075 73,894 

(RUB mln) 

31-Mar-12 30-Jun-12 30-Sep-12 31-Dec-12 31-Mar-13 

1Q'12 

1Q'13 

(1) Including pensions. 

(2) Staff costs and administrative expenses per average employee (annualised). 

19 


Asset Quality 

Сost of risk 

1.7% 

20.4 

1.0% 1.0% 1.1% 

1.6% 

22.0 

Provision charge for loan 

impairment / Average gross 

loan portfolio 

(RUB bn) 

11.9 12.7 

14.4 

Provision charge for 

impairment of debt financial 

assets 

1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 

(RUB bn) 

NPL and loan-loss reserves 

NPL coverage ratio 

Allowance for loan impairment / Total gross loans NPL ratio (1) 118.4% 

117.0% 

110.6% 

345 

252 271 286 288 298 

Allowance for loan impairment NPLs 

6.6% 6.8% 6.6% 6.4% 6.5% 

5.5% 5.6% 5.6% 5.4% 5.4% 

299 317 317 323 


112.4% 

115.4% 


(1) Non-performing loans (NPLs) represent impaired loans with repayments overdue by over 90 days. NPLs are calculated including the entire principal and interest payments. Ratio is calculated to total gross loans including 

financial assets classified as loans and advances to customers pledged under repurchase agreements. 

20 


Balance Sheet Structure 

Assets structure 

Customer loans / customer deposits 

6,858 

7,185 

6,451 6% 

9% 

6% 

15% 15% 

12% 

6% 6% 4% 

7,416 

7,603 

9% 

9% 

13% 13% 

5% 3% 

Cash and mandatory 

reserves 

Securities 

portfolio (1) 

127.6% 

125.9% 

126.7% 

129.6% 

132.7% 

(RUB bn) 

66% 63% 62% 

64% 65% 

10% 10% 10% 9% 10% 

Due from other 

banks 

Loans to customers 

(net) 

Other assets (2) 

31-Mar-12 

30-Jun-12 

30-Sep-12 

31-Dec-12 

31-Mar-13 


Liabilities structure 

BIS Group capital 

5,821 

20% 

6,229 

23% 

6,501 6,650 

24% 24% 

6,820 

24% 

Due to banks 

and other 

borrowed funds (3) 

13.7% 

9.6% 

12.8% 12.9% 

8.9% 9.3% 

14.6% 14.5% 

10.3% 10.2% 

(RUB bn) 

57% 55% 54% 55% 55% 

14% 14% 14% 14% 14% 

4% 

5% 

4% 

4% 

4% 

4% 

4% 

3% 

4% 

3% 


Customer deposits 

Debt securities issued 

Subordinated debt 

Other liabilities 

(1) Includes debt and equity securities, assets pledged under REPO, securities classified as due from other banks and loans to customers, and derivatives. 

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

(3) Other borrowed funds include bilateral and syndicated bank loans, secured and unsecured financing from central banks. 

(RUB bn) 

736 737 790 

223 224 223 

513 513 568 640 658 

Total capital adequacy ratio 

Tier I ratio 

911 931 

271 273 


Tier II less deductions 

Tier I 

21 


VTB Group Public Debt Instruments 


VTB Group Public Debt and Hybrid Capital instruments 

VTB Group public debt instruments outstanding (1) 

VTB Group public debt instruments outstanding 

Borrower 

Equivalent amount 

(USD, mn) 

Instrument 

Maturity Date/Put 

or Call Option 

Coupon 

2013 

VTB 435 Series 9 CHF EMTN 2 Aug-13 4.00% 

Bank of 

CHF Public debt 

381 

Moscow 

instrument 

Sep-13 4.50% 

VTB 163 Series 11 CNY EMTN 2 Dec-13 2.95% 

Subtotal 

979 

2014 

VTB 238 Series 13 SGD EMTN 2 Jun-14 3.40% 

VTB 3,130 Loan repayment Jul-14 

Subtotal 3,368 

2015 

Bank of 

Moscow 

750 Public debt instrument Mar-15 6.70% 

VTB 1,250 Series 7 EMTN 2 Mar-15 6.47% 

VTB 693 

Series 6 EMTN 1 

(put option) 

Jun-15 6.25% 

VTB 318 Series 17 SGD EMTN 2 Jul-15 4.00% 

VTB (2) 400 Subordinated Debt Sep-15 5.01% 

VTB 326 Series 22 CNY EMTN 2 Oct-15 4.5% 

VTB 326 Series 14 CHF EMTN 2 Nov-15 5% 

Bank of 

Moscow 

300 Public debt instrument Nov-15 5.97% 


2016 

VTB 258 Series 9 EUR EMTN 1 Feb-16 4.25% 

VTB 2,000 Loan repayment Apr-16 

VTB 652 Series 19 CHF EMTN 2 Sep-16 3.15% 


2017 

VTB 2,000 Series 15 EMTN2 Apr-17 6.00% 

Bank of 

Moscow 

400 

Subordinated debt (call 

option) 

May-17 6.81% 

VTB 476 Series 23 AUD EMTN2 Dec-17 7.5% 


Borrower 

Equivalent amount 

(USD, mn) 

Instrument 

VTB Group debt maturity profile 

VTB Group debt maturity profile 

Maturity Date/ Put 

or Call Option 

Coupon 

2018 

VTB 750 Series 12 EMTN 2 Feb-18 6.32% 

VTB 1,701 Series 4 EMTN 2 May-18 6.88% 


2020 

VTB 1,000 Series 10 EMTN 2 Oct-20 6.55% 


2022 

VTB 1,500 


6.95% 

Oct-22 

Subordinated Debt 


Perpetual 

US$ million 

VTB 2,250 


Total 21,697 

979 

163 

816 

3,368 

238 

3,130 

4,363 

326 

318 

326 

3,393 

Tier 1 Perpetual Eurobond 

(call option) (4) 

2,910 

652 

258 

2,000 

2,876 

476 

2,400 

2,451 

Dec-22 

(call option) 

USD AUD EUR 

CHF SGD CNY 

1,000 

1,500 

9.5% (3) 

2013 2014 2015 2016 2017 2018 2020 2022 

Source: VTB’s website 

(1) Exchange rates published by the CBR are as of June 20, 2013. Note: In addition to international debt, VTB Group currently has RUB 218 bn outstanding domestic bonds. 

(2) As the result of the reorganisation of JSC Bank VTB North-West and its merger with JSC VTB Bank, March 18, 2011, JSC VTB Bank has assumed the rights and obligations of JSC Bank VTB North-West as the Borrower. 

(3) Fixed until the first call date, then reset on 6th Dec 2022 and every 10th year thereafter. 

(4) The Instrument meets CBR requirement for Additional Tier 1 Capital, however the instrument was partially allocated to Tier 2 Capital under CBR in view of limited current capacity for Additional Tier 1 Capital under CBR standards. 


VTB Group International Public Debt Instruments Issued in 2012-2013 

Borrower Date of issue Amount (mln) Instrument Maturity date Coupon/rate 

VTB April 2012 USD 2,000 Series 15 EMTN 2 April 2017 6.0% 

VTB 

July 2012 SGD 400 Series 17 EMTN 2 July 2015 4.0% 

VTB August 2012 USD 2,250 

Tier 1 Perpetual Loan 

Participation Notes 

December 2022 (call option) 9.5% 

VTB September 2012 CHF 600 Series 19 EMTN 2 September 2016 3.15% 

VTB October 2012 USD 1,500 


LT2 Subordinated Debt 

October 2022 6.95% 

VTB October 2012 CNY 2,000 Series 22 EMTN 2 October 2015 4.5% 

VTB December 2012 AUD 500 Series 23 EMTN 2 December 2017 7.5% 

VTB April 2013 USD 2,000 Syndicated loan April 2016 LIBOR+1.5% 

Total (USD equivalent) (1) USD 9,557 

(1) Exchange rates published by the CBR are as of April 9, 2013 

24 


Hybrid Tier I Perpetual Bond 

In August 2012, VTB Bank issued USD 1 bn 9.5% Perpetual Loan Participation Notes 

In November 2012, VTB Bank issued an additional issuance of USD 1.25 bn 9.5% Perpetual Loan Participation Notes 

Key features 

■ 

■ 

■ 

■ 

■ 

■ 

■ 

Full equity treatment under IFRS 

Included in VTB’s Tier 1 Capital under CBR Regulatory Capital (1) and Basel Tier 1 Capital on a 

consolidated basis 

Non-dilutive capital adequacy increase tool 

Amendment provisions for future compliance with Tier 1 сapital requirements for possible transition of 

Russian regulations to Basel III 

Equity сredit from rating agencies 

Coupon payments are tax deductible lowering cost 

Coupon payments are not included into Interest Expenses but treated as quasi dividend; 

no impact on NIM is expected 

(1) The Instrument meets CBR requirement for Additional Tier 1 Capital, however the instrument will be partially allocated to Tier 2 Capital under CBR in view of limited current capacity for Additional Tier 1 Capital under CBR standards. 

25 


Investor Relations 

Tel: +7 (495) 775-71-39 

e-mail: investorrelations@vtb.ru 

26

VTB Investor Presentation

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