Retail Banking Market in Russia

10 41 115 2016 VTB Group Investor Day

153 153 255

212 225 240

161 11 72

153 51 102

221

221 221 London / May 17, 2016 10 41 115

153 153 255

212 225 240

161 11 72

153 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"). 51 Such forward-looking statements are based on numerous assumptions regarding the Group's present and future business strategies and the 102 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. 221 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 221 update these statements to make them conform with actual results. 221 10 41 115 VTB Group Overview

153 153 255

212 225 240

161 11 72

153 51 102

Andrey Kostin 221 President and Chairman of VTB Bank Management Board 221 221 10 IMPRESSIVE GROWTH STORY AND 41 STRONG COMPETITIVE POSITIONS IN ALL KEY SEGMENTS 115 Total assets RUB trln today

153 +29% y-o-y . Leading player in Russia 153 vs market +24% y-o-y − 2nd largest banking group in Russia 255 13.6 12.2 − 18% market share in Russia 8.8 7.4 . Successful growth story 212 1.1 − 12-fold asset growth for the past 225 ten years 240 2005 2012 2013 2014 2015 . Well-established universal banking model VTB market share in Russia 161 − leading Russian banking group with strong positioning in all key 11 Customer loans Customer deposits segments: CIB, Retail banking, 72 Insurance, Leasing, Factoring, etc. 17% 19% 13% . Extensive branch network Legal entities 7% 153 − over 1,900 branches in Russia 51 2005 2015 2005 2015 − presence in 22 countries 102 18% 11% . Solid client base 5% Individuals 2% – over 20 mln active retail and corporate customers 221 2005 2015 2005 2015 221 221 4

10 VTB GROUP CORPORATE DEVELOPMENTS: 41 MIX OF MERGERS AND ORGANIC GROWTH 115

Completion of the BoM integration: 153 . Optimisation of costs 153 255 . Strengthening of internal control and risk management system Organic growth . Revenue synergies: increased cross-sales and strengthening of VTB Bank’s competitive positions 212 225 240

161 2004 2005 2008 2010 2011 2013 2016 11 72

Launch of Post Bank, a joint venture between VTB and Russian Post 153 M&A deals 51 . A wide network of outlets and an extensive client base 102 . Access to pensioners base . VTB Group expertise and infrastructure 221 221 221 5

10 VTB GROUP FLEXIBLE OPERATING MODEL 41 115

Corporate – Investment Banking Retail Business Mid-Corporate Banking 153 global business line global business line global business line 153 255 Assets (1) RUB trln 7.6 44% 3.8 22% 0.8 5%

Large corporate clients Small corporate clients and individuals Mid - corporate clients (revenue > RUB 10 bn) (revenue

153 Risk Audit and IT Finance HR Admin Legal PR Compliance Security 51 management 102

221 221 (1) Second number represents share of each global business line in VTB Group’s total assets, % 221 6

10 SUMMARY 41 115

2014 – 2016 Strategy of quality growth 2017 – 2019 New development strategy 153 153 255 Maintaining position of Сorporate-Investment Maintaining position of Сorporate-Investment 1 1 banking while further improving its efficiency banking while further diversifying CIB business mix

Outperforming the market growth in Retail Outperforming the market growth in Retail banking, 212 2 banking, and further increasing the share of Retail 2 and further increasing the share of Retail in the 225 in the Group’s business mix Group’s business mix 240

Prioritising Mid-Corporate banking as a Outperforming the market growth in Mid-Corporate 3 separate operating segment and profit centre while 3 banking in loans and transaction fee income while 161 further increasing the market share in Russia further growing customer base 11 72 Further consolidation of VTB Group governance Enhancement of Group level risk management 4 4 structure and enhancement of Group level risk and controls management and controls

153 Focusing on operating efficiency and stringent Focusing on operating efficiency and stringent cost 5 5 51 cost control control 102

Transitioning the Group to unified functional and Prioritising investments in technological platform 6 6 221 technological platforms development and innovations 221 221 7

10 41 115 VTB Group Corporate-Investment Banking

153 153 255

212 225 240

161 11 72

153 51 102

Yuri Soloviev 221 First Deputy President and Chairman of VTB Bank Management Board 221 221 CIB: 2015 KEY ACHIEVEMENTS

10 58 212 252 248 41 75 225 25 164 In 2015 CIB managed to achieve CIB net income and costs dynamics RUB bn 115 140 240 33 74

254 253 198 216 235 . Four-fold year-on-year increase in NOI driven 101.6 194 225 76 132 193 by strong revenue growth, tight cost control 120 185 155 186 219 and a reduction in provisions vs high 2014 29.9 base 24.2

146 183 219 153 118 -34.2 205 223 240 153 141 . CIB increased / maintained its leading market 81 131 189 153 188 position in loans (~23%), deposits (~14%), current accounts (~15%) and across all 2014 2015 investment banking products Net profit Net operating income

. Improved portfolio mix: increase share of Oil CIB structure of net operating income before and Gas, Metals and Mining, Retail, Telecom, provisions Chemicals and lower exposure to Construction, Utilities, Public Sector

. Year-on-year 30% increase of fees and 15% commissions driven by cross-sell and new product development 9% 45% 45%

76% NII 2014

NCI 2015 10% Other Incomeincome

CIB: 2013-2019 MARKET IN RUSSIA

10 58 212 252 248 41 75 225 25 164 115 140 240 33 74 CIB loans RUB trln CIB deposits and current accounts RUB trln 254 253 198 216 235 194 225 76 132 193 ~22% ~8% ~23% ~7% 120 185 155 186 219 CAGR CAGR CAGR CAGR 30-31 29-30 146 183 219 153 118 23.8 23-24 23-24 205 223 240 153 141 22.8 19.7 81 131 189 153 188 19.6 13.6 13.2

2013 2014 2015 20162016F (F) 20192019F (F) 2013 2014 2015 20162016F (F) 20192019F (F)

. Significant banking market growth in 2013-2016 driven by currency impact, closed international capital market and low risk appetite of foreign banks to Russia;

. We expect slower market growth in 2016-2019 both in lending and deposit / current accounts markets in Russia due to low investment demand and high interest rates.

CIB CREDIT BUSINESS(1): 2014-2015 HIGHLIGHTS

10 58 212 252 248 41 75 225 25 164 Key 2015 achievements Loan portfolio RUB bn 115 140 240 33 74 +14% . Managed to increase CIB segment loan portfolio by 18% and 254 253 198 216 235 ensure strong revenue growth 194 225 76 132 193 +18% 120 185 155 186 219 . Maintained strong positions in corporate lending; worked with more than 400 active client groups 7,671 6,748 146 183 219 153 118 . Kept leading position: VTB market share of CIB Russian 6,139 5,186 205 223 240 153 141 credit portfolio rose from 19.3% in 2013 to 23% in 2015 81 131 189 153 188 . International franchise development: VTB Group established itself as one of the leading lenders and arrangers of private financings in Sub-Saharan Africa and arranged some 2014 2015 strategic financing transactions in CEEMEA and Asia (including debt restructurings, holding company financings Loans and advances to legal entities (net) and event driven transactions) CIB loans and advances (net)

. VTB has extended its presence in infrastructure finance by moving forward with the financing of a landmark toll road construction project and several new deals in mining, airport and shipping finance

. VTB has taken the leading position in terms of volume of deals approved under the Government investment projects support program (P-1044)

. Development of Trade Finance franchise and further build-up relations with counterparties from 55 countries . Since 2013 Trade Finance business volume has been increased by 7.0x

. Became one of the key partner banks for Russian Export Credit Agency (EXIAR)

(1) Key products in L&D segment are Credit, Leveraged Finance and Investments, Infrastructure credits and project finance, Trade finance, Leasing

CIB TRANSACTIONAL BUSINESS: 2014-2015 HIGHLIGHTS

10 58 212 252 248 RUB bn 41 75 225 25 164 Deposits and current accounts 2015 Key achievements 115 140 240 33 74 . Overall GTB revenue increase: net operating income grew by 117%, fees and commissions – by 44%, net interest income – by 121% 254 253 198 216 235 3,940 194 225 76 132 193 3,520 . Current account volumes grew by 51% significantly higher than 120 185 155 186 219 3,212 market growth

2,152 . Significant market share: current accounts – 15%, deposits – 15%; 146 183 219 153 118 factoring – 33% 205 223 240 153 141 . Leading Custodian in Russia with 6% increase in assets under 81 131 189 153 188 custody 2014 2015 . VTB provided new cash management solutions for 80+ large groups Deposits of legal entities of companies which included more than 600 legal entities CIB deposits . VTB is recognised to be the top solution and product provider in Cash Management in the Russian Market. Launched multiple CIB GTB segment financial results RUB bn products around Liquidity Management, Channels and Cash & Settlements 29.1 . Implemented centralised treasury solutions for 18 government controlled companies, including Rostelecom, Transneft, Rostech and 16.2 Alrosa 13.4 12.7 8.8 . Capital consuming transactions were priced with intense focus on ROE hurdle rates 4.3 . VTB Factoring completed the largest ever global factoring transaction 2014 2015 between InterRao and Gazprom EnergoHolding for RUB 13 bn

Net operating income Fees and comissions . Servicing 24 Depositary Receipts Programs of The Bank of New Net profit York Mellon and Deutsche Bank Trust Company Americas 12

CIB INVESTMENT BUSINESS: MARKET SHARE

10 58 212 252 248 Product Line 3 41 75 225 25 164 Market Share Position Comments 115 140 240 33 74 2015 Δ from 2013 . Significantly strengthen the positions in Client Fixed 1 254 253 198 216 235 FX Spot 22% +7% #1-2 FX market Income 194 225 76 132 193 120 185 155 186 219 FX Derivatives 30% +8% #1-2

Securitisation 75% +22% #1 146 183 219 153 118 205 223 240 153 141 81 131 189 153 188 Equities . Strengthen the position in Structured REPO – Cash equities 4% -4% #10 the most significant part of Equities business in Structured Russia 33% +7% #1-2 repo . Development of product lines with Direct Market Access DMA 1% +1% No data Infrastructure 52% +8% #1 capital

. Significantly strengthen the positions in all product Global 42% DCM +24% #1 lines in low Russian Market Banking2 . Strengthened international positions in DCM and ECM 49% +28% #1 M&A segments . Offset slow Russian IB market by significantly M&A 26% +7% #1 increasing market share in all products and winning more international business

Investment Portfolio 5% 0% #3 . Hold current positions Management management

1) Estimation of Client FX Market for CIB and MidCap clients 2) 2013 estimation done based on Dealogic database, 2015 – Thomson Reuters “Deal Making in Russia 2015” publication by deal value 3) In net profit (IFRS) Source: VTB Analytical Center 13

IB: 2014-2015 HIGHLIGHTS (1/2)

10 58 212 252 248 41 75 225 25 164 Fixed Income 115 140 240 33 74

254 253 198 216 235 . FX and Rates: 194 225 76 132 193  VTB has been recognised as the best Russian Foreign Exchange Provider every year by Global 120 185 155 186 219 Finance magazine  2014 VTB Started trading African and Asian currencies 146 183 219 153 118  2015 VTB prints record-high volumes in trading RUBCNY in the onshore interdealer market in China 205 223 240 153 141  Local RUB Spot market share in 2015 reaches about 25%, derivatives are over 30% 81 131 189 153 188  Technological advances in FX allow VTB to enter into strategic partnerships with Alibaba Group and Ant Financial Group

. Credit Trading:  Over the course of the past year in response to rising capital requirements and secondary liquidity adjustments Credit trading has significantly reduced balance sheet use for linear/non-linear risk and has increased the velocity of position turnover  VTB has won 10 CBonds awards, including Best Bond Market Sales and Best Bond Market Trading

. Commodities business:  Launch of physical trading and financing in VTBCT Zug. Zug became operating entity and completed first physical deals in crude oil, oil products and base metals  First official member on Shanghai Gold Exchange  Physical Commodity financing set up in VTB Austria

IB: 2014-2015 HIGHLIGHTS (2/2)

10 58 212 252 248 41 75 225 25 164 Equities 115 140 240 33 74 . The establishment of a ‘true’, integrated Global Equities Product which encompasses Cash Equities, 254 253 198 216 235 Equity Derivatives Volatility Trading, Repo, Private Equity & Special Situations (PESS) and Infrastructure 194 225 76 132 193 Capital & Project Finance (IC&PF) 120 185 155 186 219 . Completed the re-organisation of our client franchise ‘flow’ businesses to reflect the prevailing market opportunity / dynamics while maintaining the scope of our product offering and geographical coverage; . VTBC Broker: develop a robust, scalable, secure, multi-asset class electronic trading platform which is 146 183 219 153 118 being pro-actively marketed to clients as we continue to add functionality and new market connectivity; 205 223 240 153 141 . Market-leading MOEX Repo business combined with our core client-facing strategic EQ financing 81 131 189 153 188 business . The PESS portfolio continues to generate significant returns while the team retained their “#1 Private Equity Firm in Russia” from Private Equity International (#2 in CEE since the category was expanded); . IC&PF are the clear leader in their field within the Russia market. The official opening (in February 2014) of the new terminal at Pulkovo International Airport in St Petersburg attracted global acclaim

Global Banking

. Revenue growth of almost 50% in 2015 vs 2014 despite a highly subdued domestic IB market and without increasing headcount . Increased market share in the Russian IB market - which hit record levels in 2015 - with clear leadership across M&A, ECM and DCM activity (verified by ThomsonReuters independent research) . A good balance of domestic and international business (~50% of revenues generated on internationally related deals) . Development of several profitable niches where VTB has established unique specialist knowledge such as in taking private London Stock Exchange companies and in running domestic Russian IPOs

2015 GLOBAL BANKING KEY DEALS

10 58 212 252 248 41 75 225 25 164 115 140 240 33 74

254 253 198 216 235 194 225 76 132 193 120 185 155 186 219

146 183 219 153 118 205 223 240 153 141 81 131 189 153 188

d CIB 2016 KEY PRIORITIES

10 58 212 252 248 41 75 225 25 164 CIB market position 115 140 240 33 74

. Maintain market share in lending and deposits / current accounts Russian banking markets 254 253 198 216 235 194 225 76 132 193 . TOP positions in key IB markets (GB, FX, Infrastructure finance) 120 185 155 186 219 . Leverage domestic dominant position in advisory . Bespoke approach to international markets focusing on high-yield financing solutions and 146 183 219 153 118 advisory 205 223 240 153 141 . Key strategic international regions: Asia (China, India), Africa (Southern and Eastern parts), 81 131 189 153 188 Southern Europe . Special focus on growing Russia-China links

Product development

▪ Focus on new product development: commodities, trade finance, project finance, structured financing solutions ▪ New solutions in Cash management techniques ▪ Direct market Access platform development ▪ Further growth of cross-sell opportunities: increase number of products per one client

Operational efficiency

▪ Operating platform realignment to decrease share of hard currency CIB denominated costs

10 41 115 VTB Group Retail Banking

153 153 255

212 225 240

161 11 72

153 51 102

Mikhail Zadornov 221 President and Chairman of VTB24 Management Board 221 221 RETAIL BANKING MARKET IN RUSSIA

10 58 212 252 248 RUB trln RUB trln 41 75 225 25 164 Retail loans Retail deposits 115 140 240 33 74 +11% Credit cards Car loans Current accounts Term deposits CAGR 34 - 35 254 253 198 216 235 Cash loans Mortgage 194 225 76 132 193 +10% 16% 120 185 155 186 219 CAGR +18% 26.0 CAGR 23.2 +11% 15% CAGR 15 - 15.5 18.6 17% 146 183 219 153 118 17.0 11.3 10% 14.3 205 223 240 153 141 10.0 10.7 10.9 18% 7.7 19% 10% 10% 10% 42% 19% 84% 81 131 189 153 188 10% 9% 50% 46% 45% 85% 53% 6% 83% 54% 5% 81% 82% 8% 6% 43% 81% 10% 9% 40% 27% 28% 32% 38% 2012 2013 2014 2015 2016F 2019F 2012 2013 2014 2015 2016F 2019F

Small business loans RUB trln Small business RUB trln

+6% +3% Current accounts Term deposits CAGR +4% CAGR CAGR 3.3-3.5 3.1-3.3 +13% 2.9 3.1 3.0 2.7 CAGR 2.7 2.6 2.6 2.4 2.4 2.1 69% 69% 70% 69% 79% 81%

31% 31% 30% 31% 19% 21% 2012 2013 2014 2015 2016F 2019F 2012 2013 2014 2015 2016F 2019F 19

VTB GROUP MARKET POSITION IN RETAIL BUSINESS IN RUSSIA

10 58 212 252 248

41 75 225 25 164 Retail loans Retail deposits and current accounts 115 140 240 33 74 +1.0 p.p. +0.5 p.p. 254 253 198 216 235 +3.9 p.p. +2.0 p.p. 194 225 76 132 193 18.8% 17.8% 120 185 155 186 219 0.9% 11.2% 0.6% 10.7% 2.9% Leto / Post Bank 8.7% Leto / Post Bank 13.9% 2.7% 0.2% 0.2% & VTB Bank 1.8% 1.8% 1.2% 0.1% 146 183 219 153 118 Ex-Bank of Moscow Ex-Bank of Moscow 1.2% 15.0% 205 223 240 153 141 VTB24 14.4% VTB24 9.2% 12.7% 7.5% 8.7% 81 131 189 153 188

2012 2015 2016F 2012 2015 2016F

Small business loans Small business deposits and current accounts

+1.7 p.p. +4.8 p.p. 13.1% +1.0 p.p. 11.4% +1.3 p.p. 1.7% 7.9% 1.3% 6.9% 5.6% 1.2% 6.6% 1.2% Ex-Bank of Moscow 0.6% Ex-Bank of Moscow 1.4% 11.3% 10.0% 6.7% VTB24 5.6% VTB24 5.0% 5.2%

2012 2015 2016F 2012 2015 2016F

RETAIL BUSINESS CONTINUES TO BE THE KEY CONTRIBUTOR TO VTB GROUP P&L AND EFFICIENCY

10 58 212 252 248 41 75 225 25 164 RUB bn 115 140 240 33 74 Profitability of VTB Group’s Retail business

254 253 198 216 235 194 225 76 132 193 120 185 155 186 219 CIR 48% 46% 56%

146 183 219 153 118 205 223 240 153 141 166.0 81 131 189 153 188 157.6

136.2

50.8

37.6

16.9

2013 2014 2015

Net profit Net operating income

VTB GROUP CUSTOMER BASE IN RUSSIA BY ENTITY

10 58 212 252 248 41 75 225 25 164 VTB Group customer base (active customers) in 2015 mln 115 140 240 33 74

254 253 198 216 235 194 225 76 132 193 120 185 155 186 219 1.3 -3.3 19.9 146 183 219 153 118 205 223 240 153 141 81 131 189 153 188 10.4

11.5 -0.5 1.9 9.0 1.1

VTB24 Post Bank BoM De-duplication Banking VTB VTB De-duplication Total (ex-Leto Bank) customers, Insurance Pension customer total Fund base

VTB24 CUSTOMER BASE BY SEGMENT

10 58 212 252 248 41 75 225 25 164 VTB24 customer segments (active customers) thsd 115 140 240 33 74

254 253 198 216 235 194 225 76 132 193 120 185 155 186 219

9,033 8,789 146 183 219 153 118 205 223 240 153 141 1,253 +7 p.p. 1,932 81 131 189 153 188 Affluent + HNWI (14%) (21%)

2,466 +7 p.p. Upper mass (28%) 3,133 (35%)

Mass 2,526

(29%) -4 p.p. 2,290 Lower mass (25%) 2,544 -10 p.p. (29%) 1,679 (19%)

2013 2015

VTB24 LOAN PORTFOLIO STRUCTURE AND RISK PROFILE

10 58 212 252 248 41 75 225 25 164 Average loan portfolio RUB bn / % and cost of risk % 115 140 240 33 74

254 253 198 216 235 4.4% 194 225 76 132 193 3.6% 3.2% 120 185 155 186 219 Cost of risk

146 183 219 153 118 +11% +4% 205 223 240 153 141 81 131 189 153 188 1,641 100% 1,577 100% 63 4% 1,422 100% 41 3% 148 9% 174 Other 8 1% 11% 78 204 73 5% 14% 5% Small business 68 445 27% 5% 445 28% Credit cards 436 30% 81 5% Cash loans 95 6%

Car loans 109 8% 50% Mortgage 47% 826 748 596 42%

2014 2015 2016F

VTB GROUP BRANCH AND ATM NETWORKS IN RUSSIA

10 58 212 252 248 41 75 225 25 164 Branch network ATM thsd 115 140 240 33 74 Post-office branches Leto/Post Bank 254 253 198 216 235 Leto/Post Bank and ex-BoM Ex-BoM 194 225 76 132 193 Offices with affluent zones +161% VTB24 +27% 120 185 155 186 219 Standard offices 4,312 17.0 146 183 219 153 118 -4% +11% 205 223 240 153 141 81 131 189 153 188 13.4 0.4 12.1 2,600 2.0 2.0

1,713 1,649

646 630 11.0 603 10.1

687 +52% 530 576 627 378 537 470 455 309 (50%) (45%) (42%) (45%)

2012 2014 2015 2016F 2014 2015 2017F

VTB24 INTERNET AND MOBILE BANKING PENETRATION: STRONG GROWTH TO BE CONTINUED IN 2016

10 58 212 252 248 % of active clients 41 75 225 25 164 Active users of online & mobile banking 115 140 240 33 74 Input of 2H’2015 254 253 198 216 235 Input of 1H’2014-1H’2015 194 225 76 132 193 120 185 155 186 219 Active users of online & mobile banking as of 1H’2014

146 183 219 153 118 51.6% 205 223 240 153 141 50.8% 1.0% 81 131 189 153 188 1.5% 45.2% 3.0%

33.3% 29.4% 28.1% 4.4% 1.1% 50.6% 23.8% 22.0% 49.3% 12.8% 2.6% 3.5% 42.2% 16.8% х1.4 15.2% 27.1% 10.6% 28.9% 9.8% 21.2% 8.3% 1.5% 8.0% 6.3% 18.5% 16.6% 5.6% 3.6% 2.5% 0.8% 9.1% 2.2% 7.0% 4.4% 4.4% 5.5% 3.4%

“Online&mobile” benchmarking study by Finalta among Russian banks VTB24 BoM Russia Russia CEE Global Avg Avg Avg Leaders 2015 Top 3

CRM ACTIVITIES PLAY INCREASINGLY IMPORTANT ROLE IN SUPPORTING DYNAMIC GROWTH OF RETAIL BUSINESS

10 58 212 252 248 41 75 225 25 164 VTB24 business plans for selected products and CRM Share of CRM 115 140 240 33 74 RUB mln No. of cards 254 253 198 216 235 Sales of consumer loans Sales of credit cards Sales of affluent bundles (“Privilege”) No. of bundles 194 225 76 132 193 120 185 155 186 219 +108% +23% +114%

146 183 219 153 118 316,091 449,144 205 223 240 153 141 418,956 81 131 189 153 188 364,256

151,969 195,724

54% +87% 49% +129% +87% 41% 49% 27% 56%

2015 2016F 2015 2016F 2015 2016F

SHARE OF CLIENTS WITH SALARY ACCOUNTS

10 58 212 252 248 % of active clients 41 75 225 25 164 Share of clients with salary accounts, 2014 115 140 240 33 74

254 253 198 216 235 194 225 76 132 193 120 185 155 186 219

47.0% 146 183 219 153 118 205 223 240 153 141 42.0% 81 131 189 153 188 36.0% 35.0% 32.0% 32.0% 29.0%

22.0% 19.0%

12.0%

3.0%

VTB24 BoM “Branch productivity” benchmarking study by Finalta among Russian banks Russia Average

VTB GROUP RETAIL BUSINESS KEY STRATEGIC INITIATIVES FOR THE NEXT 3 YEARS

10 58 212 252 248 41 75 225 25 164 Market share and financial performance 115 140 240 33 74 . Increase market share (as a Group) both in loans and deposits

+ 5% in loans  254 253 198 216 235  + 5% in deposits and CA 194 225 76 132 193 . Maintain high level of financial efficiency / profitability (ROE ~18%) 120 185 155 186 219 Customers

▪ Increase number of active customers through new customers acquisition and current customers reactivation 146 183 219 153 118 ▪ Continue developing as a multi-brand model to target different client segments (e.g. focus VTB24 on mass-affluent and affluent segments and Post Bank 205 223 240 153 141 on mass segment and retirees) 81 131 189 153 188 ▪ X-sell: increase number of products per customer ▪ Customer experience: improve customer satisfaction (NPS)

Multi-channel

▪ Continue developing multi-channel model:

 Increase sales network - mainly by Post Bank  Increase penetration of Internet and Mobile bank  Increase share of sales in alternative channels (CRM, Internet)

Operational efficiency

▪ Achieve high-level of operational efficiency: number of customers per branch employee, sales per branch employee

▪ Continue further centralisation of back-office functions Post bank

▪ Successfully realise a joint project with Russian Post

IT ▪ Mid 2017 – completion of VTB24 IT overhaul

YE’2019 – harmonisation of VTB Group retail IT landscape ▪ 29

POST BANK OFFICIALLY LAUNCHED IN APRIL 2016

10 58 212 252 248 41 75 225 25 164 Post Bank logo and branch format Key numbers (2023) 115 140 240 33 74 Key numbers (2023): 254 253 198 216 235 15,000 Branches in Post offices 194 225 76 132 193 120 185 155 186 219

>17 mln Customers 146 183 219 153 118 205 223 240 153 141 81 131 189 153 188 Top-3 Top-3 retail bank in Russia

POST BANK 2016 BUSINESS PLAN

10 58 212 252 248 RUB bn RUB bn 41 75 225 25 164 Loan portfolio (gross) Customer deposits 115 140 240 33 74

254 253 198 216 235 194 225 76 132 193 +62% х8.6 120 185 155 186 219 25 126 8 5 Credit cards 15 146 183 219 153 118 78 205 223 240 153 141 4 POS 14 Current accounts 3 81 131 189 153 188 103 20 Cash loans 60 Term deposits 2 1 2015 2016F 2015 2016F

Net operating income RUB bn Net profit RUB bn

60% 52% CIR

+131% 0.1 15.6

6.7 -1.7

2015 2016F 2015 2016F

10 41 115 VTB Group Financial Performance and Outlook

153 153 255

212 225 240

161 11 72

153 51 102

Herbert Moos 221 Deputy President and Chairman of VTB Bank Management Board 221 221 10 MACRO ENVIRONMENT SIGNIFICANTLY DETERIORATED 41 115

Oil price USD and exchange rate RUB Inflation and CBR key rate

153 61.2 31.8 38.0 12.6% 153 USD/RUB CBR key rate 5.5% 7.9% (avg) (avg) (1) 255 -9% -47% +7.8 p.p. +1 p.p. 108.0 98.0 15.6% 212 Oil price CPI inflation (Urals, avg) 52.0 (avg) 225 6.8% 7.8% 240 2013 2014 2015 2013 2014 2015

161 Russian macroeconomic indicators 11 2013 2014 2015 72 3.9% 2.7% 1.7% 1.3% 0.8% 0.4% 0.6% GDP

153 Investments in fixed capital -1.5% 51 -3.7% -3.4% Industrial production 102 -8.4% Retail turnover -10.0%

221 221 (1) In its current form key rate was introduced by the Bank of Russia in September 2013. Average figure for 2013 is calculated based on the period from 221 September 13, 2013 till December 31, 2013. 33

10 VTB SIGNIFICANTLY IMPROVED BALANCE SHEET METRICS 41 AND CAPITAL 115

Total assets RUB bn Customer funding RUB bn

153 151% 157% +12% 139% 153 +39% LDR 255 13,642 12,191 +28% +29% 8,769 7,267 5,669 212 4,383 225 240 2013 2014 2015 2013 2014 2015

RUB bn RUB bn 161 BIS Group capital NPLs (90+) 11 14.7% 14.3% Total CAR 115.5% 114.8% 72 12.0% NPL coverage 105.8%

Tier I ratio ratio 12.4% 10.9% 9.8% +25% 153 +11% 635 534 51 1,516 1,217 102 1,093 313 Total capital NPL 5.8% 6.3% 1,316 4.7% Tier I capital 807 998 NPL ratio

2013 2014 2015 2013 2014 2015 221 221 221 34

10 PROFITABILITY HIT BY LOWER NIM AND RISE IN CREDIT COSTS 41 PARTLY OFFSET BY SOLID FEES GROWTH 115

Net interest income RUB bn Provisions charge (1) RUB bn

153 +10% +178% -35% -17% 153 275.4 347.3 255 316.9 289.1 178.1

4.4% 4.0% 99.2 3.4% 212 NIM 2.6% CoR 1.8% 225 1.6% 240 2013 2014 2015 2013 2014 2015

RUB bn RUB bn 161 Net fee and commission income (NFCI) Net profit

11 Share of NFCI in operating 11.8% income before provisions 72 ROE 0.1% 0.1% +21% +14% -99% 76.2 153 63.1 55.4 100.5 51 +113% 19% 102 13% 12%

0.8 1.7

2013 2014 2015 2013 2014 2015 221 221 (1) Including provision charge for impairment of debt financial assets and provision charge for impairment of other assets, credit related commitments and legal claims. 221 35

10 2016 MANAGEMENT EXPECTATIONS 41 115

Indicator Measurement Optimistic scenario Conservative scenario 153 153 Marco 255 GDP, nominal % YoY 0.5 -1.2 CPI inflation % YoY 7.0 7.6 Oil price (Urals), average USD/bbl 50 40 212 CBR key rate, average % 9.1 10.0 225 Banking sector 240 Loans to legal entities % YoY 5-10 0-5 Loans to individuals % YoY 5-10 0-5

VTB Group 161 Loans to legal entities % YoY In line with the market In line with the market 11 Loans to individuals % YoY Above the market Above the market 72 NIM % ≈4.0 >3.0 CoR % ≈2.0 >2.0 Cost growth % YoY In line with inflation In line with inflation 153 Net profit RUB bn ≈50 >0 51 NPL coverage ratio % Above 100 Above 100 102

221 221 221 36

10 VTB GROUP MACRO EXPECTATIONS TILL 2019 41 115

GDP growth Y-o-Y Oil price (Urals), average USD/bbl

153 60 60 153 55 255

≈2.0-2.5% ≈2.0-2.5% ≈2% 212 225 240 2017F 2018F 2019F 2017F 2018F 2019F

161 CPI inflation Dec / Dec CBR key policy rate EOP 11 72 6.5 – 7.5% 5.5 – 6.5% 5.5 – 6.5% 5.5 – 6.5%

4.5 – 5.5% 153 4.0 – 5.0% 51 102

221 2017F 2018F 2019F 2017F 2018F 2019F 221 221 37

10 RUSSIAN BANKING SECTOR TILL 2019 41 115 Loans to legal entities RUB trln Loans to individuals RUB trln

2015 2019 2015 2019 153 13% 14% 18% 23% 153 255 +10-12% Y-o-Y avg growth rate

+10-15% 44 - 45 36 - 37 40 - 41 Y-o-Y avg growth rate 212 225 12.0 - 12.5 13.0 - 13.5 15.0 - 15.5 240 2017F 2018F 2019F 2017F 2018F 2019F

VTB market share VTB market share 161 RUB trln RUB trln 11 Deposits of legal entities Deposits of individuals

72 2015 2019 2015 2019

11% 11% 11% 16%

+10-12% +9-11% Y-o-Y avg growth rate 153 Y-o-Y avg growth rate 51 40 - 41 36 - 37 34 - 35 102 32 - 33 28 - 29 31 - 32

221 2017F 2018F 2019F 2017F 2018F 2019F 221

221 VTB market share VTB market share 38

10 VTB GROUP KEY FINANCIAL TARGETS TILL 2019 41 115

153 Indicator Measurement 2017 – 2019 153 255 Loans to legal entities % YoY In line with the market

Loans to individuals % YoY Above the market 212 225 NIM % ≈4.0 240 CoR % ≈2.0

th 161 CIR % 2019: low 40 11 2017-2018: >5.0 ROE % 72 2019: ≈11.0

NPL coverage ratio % Above 100 153 51 102

221 221 221 39

Product and channel innovation

10 IT AND INFRASTRUCTURE DEVELOPMENT 41 115

153 Product and channel innovation Simplification of IT landscape 153 . Broadening the list of products and . Unification of corporate support 255 services available through mobile and applications internet banking . Centralised IT architecture management . Omnichannel and seamless customer experience Data analytics 212 . New customer interaction channels . Enhancement of data quality and 225 . Market place (integrated group-wide granularity through introduction of CDO Key objectives 240 product platform) function and methodology . Productivity increase . Organisational setup to support . MIS improvement through visualisation innovation cycle tools and mobile analytics . Reduced maintenance 161 . Centralised risk modelling cost Cyber security 11 . Overall improvement of 72 . Development of authentication tools (including biometric authentication) IT reliability and . Introduction of adaptive anti-fraud systems security

Reduced time-to- Consolidation and virtualisation of IT infrastructure . 153 market 51 . New data processing center, . Private cloud . Virtualisation of . Workplace 102 integrated infrastructure of and dynamic workstations mobility data processing centers in capacity Russia management

221 221 221 40

10 CONSISTENT IMPROVEMENT OF COSTS STRUCTURE 41 115 Staff costs and administrative Key initiatives RUB bn expense 153 2.4% 2.2% 1 Completion of integration of the Bank of Moscow Cost / Avg. assets 1.8% 153

255 -0.3% 2 Further consolidation of support and control functions 223 222 198 3 Deeper penetration of remote channel client servicing 212 44% 38% Administrative 40% 225 expenses 240 4 Streamlining of business processes / lean practices Staff costs 60% 56% 62%

5 Optimisation of international footprint

2013 2014 2015 161 11 RUB bn 72 Realignment of costs structure 222

FLAT Staff costs 153 UP IT expenses 51 62% Staff costs Depreciation and other expenses 102 DOWN related to premises and equipment IT expenses FLAT Leasing and rent expenses Depreciation and other expenses related to premises and equipment 9% DOWN Taxes Leasing and rent expenses 10% FLAT Other expenses 221 Taxes 6% 3% 221 Other expenses 10% 221 2015 2017Future – 2019 projections Trends 41

10 VTB GROUP RISK MANAGEMENT FUNCTION 41 115 Centralised risk management Key developments in 2014–2015 Global CRO 153 VTB Group risk management competence centers . Loan monitoring and pre-work out functions were integrated into centralised risk 153 Deputy CRO Deputy CRO Deputy CRO management system 255 Corporate credit Retail Integrated risks . Risk appetite concept was cascaded from the Credit risk management Credit risks methodology Group level down to subsidiaries and global Credit application analysis Market & Liquidity risks business lines 212 Consolidated risks . Internal models for credit risk assessment (corporate & retail) were fine‐tuned in Loan monitoring and pre-workout Operational risks 225 accordance with the Basel II requirements 240 Subsidiaries Head of Risks . Measures aiming at business continuity were CIB International implemented, Crisis management body was Head of risks in subsidiaries established

161 Risk management departments in subsidiaries Key priorities for 2016 and beyond 11 Risk management coordination 72 Management board Risk appetite statement, risk management policies . Further implementation of risk-adjusted metrics (such as ECaP and RAROC) in business decision Risk committee Credit committees process and business-planning 153 Corporate credit and investment Risk methodology, portfolio risk . Further development of IT platform to ensure the 51 management decisions availability of up-to-date detailed data on VTB risk 102 profile Loan monitoring committee Retail risk committee . Further development of VTB Group Retail risk Managing risks in the Retail Monitoring exposures and loan workout, management competence center control of risk mitigation procedures segment 221 221 221 42

10 FUNDING STRUCTURE 41 115

Total liabilities structure RUB bn Customer deposits structure RUB bn

153 153 ≈16,000 255 12,188 ≈11,000

212 7,267 225 240 69% Customer 60% Current deposits + 9 pp accounts 20% + 2 pp 22% 161 2015 2019F 2015 2019F 11 72 Comfortable wholesale debt repayment schedule (1) USD mln

International debt repaid and 2,220 bought back since mid-2014: 1,921 283 CHF 153 160 USD 11.6 bn 51 1,339 AUD 102 827 1,937 1,761 USD

312 236 25 221 2016 2017 2018 2020 2022 2024 2035 221 (1) Net of bought back public debt. Exchange rates published by the CBR as of April 14, 2016. 221 In addition to international debt, VTB Group currently has RUB 61 bn domestic bonds. 43

10 CAPITAL MANAGEMENT 41 115

Tier I CAR (Basel I) Total CAR (Basel I) 153 153 14% 13% 13% 13% 255 12% 11% 10.5% comfort zone threshold

212 2017F 2018F 2019F 2017F 2018F 2019F 225 240 Dividend payout RUB bn 33.1

17.9 18.0 161 15.0 15.0 11 Dividend payout for 2.8 preference shares 9.2 72 6.1 15.0 15.0 15.2 15.2 Dividend payout for 9.2 ordinary shares 6.1

2010 2011 2012 2013 2014 2015*(1) 153 Dividend payout ratio 2010 2011 2012 2013 2014 2015(1) 51 % of net profit in accordance with RAS 14 38 83 44 91 67 102 % of net profit in accordance with IFRS 11 10 17 15 2,250 1,947

Dividend payout 2016 – 2019 ≥ 25% of the Group’s net profit under IFRS 221 221 (1) VTB Bank Supervisory Council recommendation on 2015 dividend payment. 221 44