Sme / Corporate Loan Portfolio 1Q'16
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July 2016 Bank’s overview Business Performance Key Financials Appendices 1 KEY PERFORMANCE INDICATORS(1) Assets and net loan portfolio(2) Asian-Pacific Bank is the largest private regional bank of the Far East and Siberia RUB mln 143 069 130 467 131 798 118 556 Head Office: Blagoveschensk, Amur Region 92 176 60 530 Branch network (mainly in Far East and Siberia): 41 781 82 837 85 591 74 915 75 767 60 540 39 494 219 offices 109 localities 18 regions 20 898 2010 2011 2012 2013 2014 2015 1Q2016 Net loans Other assets Key ratios Equity RUB mln +4% 2012 2013 2014 2015 1Q’16 Net interest margin 11.7% 11.1% 10.2% 6.4% 6.5% Cost/Income 43.4% 41.3% 36.9% 46.0% 43.7% 15 896 16 526 14 590 14 856 ROAA 4.3% 3.0% 0.04% (1.2%) 1.4% 11 529 8 724 ROAE 32.2% 23.8% 0.3% (10.3%) 11.9% 5 493 2010 2011 2012 2013 2014 2015 1Q'16 2 (1) Hereinafter data from IFRS financial statements (2) Including net investments in finance leases NET RESULT REVERTS IN PROFIT BOTTOM OUT RECOVERY IN 1Q’16 Net Profit Controlled Stable Costs Net Interest Margin RUB mln RUB mln RUB mln 2014 2015 1Q'15 1Q'16 46,0% 45,9% 43,7% 37,4% 50 198 10,2% 6,4% 6,4% 6,5% 1813 2345 (1252) +17% (1585) 14269 3530 3236 12128 457 514 812 899 2764 3231 2014 2015 1Q'15 1Q'16 2014 2015 1Q'15 1Q'16 Personnel expenses Administrative expenses Operating income NIM CTI ROA / ROE Cost of Risk Reduction Balance in Loan Structure to Corporates RUB mln 2014 2015 1Q'15 1Q'16 2014 2015 1Q'15 1Q'16 12,2% 9,6% 38% 8,6% 48% 50% 11,9% 0,3% (10,3%) 0,3% 5,0% 0,0% (1,2%) 0,0% 1,4% (1172) (2986) 62% 52% 50% (8812) (8347) ROA ROE -2.5x 2014 2015 1Q'16 Retail Corporate -5% Loan loss impairment charge CoR 3 MILESTONES: HISTORY AND ACHIEVEMENTS • APB inclusion in the list of 10 regional Through stable successful development as well as absorption of regional players the banks for participation in the government program for capitalization Bank has become the leading financial institution in the Far East and Siberia • Purchase of loan portfolio of Raiffeisen Bank at the Far East • APB acquired M2M Private Bank (JSC). Transaction to be completed in 1Q2016 2016 • VMHY injected RUB 2,2 bln into the Bank • RUB 3bln bond issue, capital 3-year term The award • EBRD provided RUB 1bln loan 2015 "Financial Elite • Purchase of offices of several facilities for financing of SMEs & of Russia", banks exiting Far East and Siberia Energy Efficiency projects Grand-Prix: • Opening of the proprietary • Fitch assigned B+ long-term Regional Bank processing center issuer default rating • Moody’s rating upgrade to B2 • APB is in top-30 banks by net • EBRD’s Trade Facilitation and SME profit • IFC acquired 7% stake in APB lending programs • 3 new regions in Siberia 2014 • Rapid expansion of the network • RUB 3bln second mortgage-backed • SME & Corporate banking active 2013 bonds issue development 2012 • Additional share issue for the total amount of RUB 609mln 2011 • Debut RUB 1.5bln 3-year bond • Placement of Subordinated Eurobonds in 2010 issue • VMHY acquired the amount of USD 42 mln • KB and KPB merged with APB • IFC granted USD 30 mln 7-year control over • MIB provided EUR 20 mln for financing of 2008 subordinated loan Amurpromstroyban • Acquisition of Expo-Leasing SMEs&Energy Efficiency projects k and Kolyma Bank • Debut mortgage-backed bonds • Further proactive expansion in Far East (KB) issue: RUB 2 bln, maturing in 2045 2006 and Siberia • Retail banking development • VMHY acquired KamchatPromBank (KPB) • Moody’s assigned B3 rating launched • Asian-Pacific Bank (APB) is the new brand name of the Bank; 2004 • Regional expansion in Far East • East Capital acquired minority stakes in APB, KB & KPB 1992 Incorporation of Amurpromstroybank 4 RATINGS AND RANKINGS Ratings APB being the leading regional financial institution in its home market steadily ranks among the 100 largest banks of the Russian Federation B-/Negative The Bank is one of the largest lenders to individual entrepreneurs, small and medium-sized enterprises, regional mortgage lenders, lenders to individuals (Top-30 as at 01.01.2016)* A(II)/Stable TOP-100 Russian Banks** Rankings #1 by assets among multiregional Banks (1) 61 54 #5 by gold purchased from mining companies(2) 82 78 #20 by SME loan portfolio (3) 144 (4) 125 #29 by retail loan portfolio #51 by total loan portfolio (5) Assets Equity 2008 2010 1Q’16 Sources: * Banki.ru, 1.4.16 5 * * Interfax, 1.4.16 (1) Frank Research Group, 1.4.16, (2) Prime, Gold Mining Bulletin, 2015, (3) Expert RA, 1.1.16, (4) Banki.ru, 1.4.16, Expert RA, 1.3.16, (5) Banki.ru,1.4.16, (6) FORBES, 17.3.16 GEOGRAPHICAL FOOTPRINT The Bank’s regional presence includes all the centers of economic activity in the Far East and Siberia Egvekinot Ugolnie Kopi Anadir Bilibino Omsuchkan Norilsk Mjaundga Susuman Yagodnoe Sinegorie Moscow Ust-Omchug Magadan Elizovo Ajkhal Petropavlovsk-Kamchatskii Viluchinsk Nurba Vilujsk Borogonci Mirnii Yakutsk Berdigestjah Nizhnii Bestyah Pervouralsk Pokrovsk Lensk Olekminsk Ekaterinburg Aldan Nerjungri Lesosibirsk Kodinsk Ust-Ilimsk Bodajbo Olekma Tynda Zheleznogorsk Kansk Nizhneudinsk Borodino Zeja Krasnoyarsk Sosnovoborsk Zheleznogorsk-Ilimskij Yuzhno-Sahalinsk Urga Anghero-Sudgensk Bratsk Fevralsk Kemerovo Severobajkalsk Shimanovsk Kholmsk AchinskChernogorsk Vikhorevka Tulun Sayansk Svobodnii Belogorsk Komsomolsk-na-Amure Prokopievsk Serishevo Korsakov Sharipovo Nazarovo Zima Talakan Zavitinsk Leninsk-Kuznetskii Berezovka Cheremkhovo Amursk Novokuznetsk Blagoveschensk Novoburejsk Barnaul Minusinsk Usolie-Sibirskoe Chita Rajchihinsk Birobidgan Osinniki Abakan Angarsk Shilka Vanino Shushenskoe Progress Bijsk Irkutsk Karymskoe Khabarovsk Sovetskaja Gavan Majna Sayanogorsk Shelekhov Borzya Dalnerechensk Kabansk Dalnegorsk cheremushki Ulan-Ude Krasnokamensk Lesozavodsk Spassk-Dalnii Muhorshibir Zabaikalsk Presence of APB in Russia: Arseniev Kyakhta Ussurijsk Zakamensk Artem Far East Siberia Urals Vladivostok Nakhodka Top 3 largest network in the Far East and Siberia 219 sales offices 109 cities / 18 regions of Russia 6 Sources: Bank’s Data as of 01.04.2016 SHAREHOLDER STRUCTURE Techsun Enterprises Limited East Capital Financial Fund AB 17.92% 8.41% Alexey Maslovsky 22.53% International Finance Corporation (IFC) 6.71% Andrey Vdovin and members of his Others 1.82% family 22.53% Evgeny Aksenov 3.08% Management 1.13% Treasury shares 1.76% PPFIN Holding Peter Hambro and members of his family 59.17% 22.53% International Finance Corporation (IFC) PPFIN Region and Techsun, parts of VMHY group East Capital Financials Fund AB Investment arm of the World Bank Group with investments in banking, insurance, retail, IT, Leading Swedish Asset Managing company focused Shareholder since 2008 gold and iron ore mining, real estate, leasing, on Emerging Markets (Eastern Europe, CIS and factoring. The group’s net assets are USD 2.4 bn. China), having EUR 4.1 bn under management Shareholder since 2006 7 CORPORATE GOVERNANCE General Shareholders’ Meeting Revision Committee Remuneration Audit and Risk Board of Directors Committee Committee Andrey Vdovin Internal Control Chairman of the Board of Directors Alexander Oleg Margot Murychev Andrey Rinat Marc Van der Plas Safonov Jacobs Independent Novikov Dosmukhamedov director Andrey Novikov Chairman of the Executive Board Igor Mikhail Vyacheslav Dmitry Andrey Tatyana Zylberblum Pavlov Andrushkin Makarov Chavtur Chekonova Customer lending & Capital markets & Corporate Far East IT & Operations Distribution network Collection Precious metals 8 Bank’s overview Business Performance Key Financials Appendices 9 RETAIL BUSINESS RESULTS 1Q’16 Market Position Plastic Card Operations and Related Services Constantly growing market in the regions of presence 488 000 cards issued as at 1 Apr’16, 300 000 of which are activated High brand recognition More than 133 000 credit cards were issued as at 1 Apr’16 Three major client segments in the retail client base: 279 АТМs and 227 payment terminals mass market clients Proprietary processing center retirees VIP clients (mass affluent) More than 4 064 SMEs/corporates are involved in payroll projects of the Bank. In 2008 – 2015, client base of retail clients has increased 3x: from 222 000 in 2008 to more than 810 000 in 2015 Customer Accounts Dynamics Issued Plastic Cards Structure RUB mln Co-brand cards +2% Social cards 2% 16% Free circulation cards 33% 74 211 75 768 488,000 58 633 50 480 23% 43 385 28 936 20 768 Credit cards 26% 2010 2011 2012 2013 2014 2015 1Q'16 Payroll cards 10 RETAIL LOAN PORTFOLIO 1Q’16 Gross Loans by Regions(1) Other Yakutiya Share of retail loans in total loans (incl. leasing) is 55.7% in Kamchatka 11% 14% 1Q’16 Magadan 4% Irkutsk 4% Retail loans are denominated in RUB Khakassia 10% 4% Two mortgage backed securitization for total amount of more RUB 53.5 bn 8% than RUB 5.5 bn Zabaykalie 10% Amur High geographic diversification of retail loans: share of each 8% region does not exceed 15% of total loans 10% Primorye 8% 9% Krasnoyarsk Khabarovsk Buryatia Loans Dynamics Gross Loans by Products(1) RUB mln Right on demand Car loans 3% 4% Credit lines 7% Mortgage 7% 64561 59267 55101 53476 43269 10% RUB 53.5 bn 25782 69% Consumer loans Microlight 7407 13163 2009 2010 2011 2012 2013 2014 2015 1Q'16 (1) RAS as at 01.01.16 11 SME / CORPORATE BUSINESS 1Q’16 SME/Corporate loans by sectors Number of Corporate and SME clients increased from 7ths in 2008 Other to 18ths in 2015 Trade Production 14% SME and Corporate business: 23% Services 3% Corporate selling system development 4% Fishery, In each region – focus on areas of expertise forestry and 6% agriculture RUB 40.9 bn 4% Increase powers at branch level 9% The client base is well diversified by regions.