Sustainable Bank for Southern Russia 1H2015 IFRS Results Southern Russia
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Presentation for investors Sustainable Bank for southern Russia 1H2015 IFRS Results Southern Russia. Region overview • Southern Russia consists of the two federal district: Southern and North Caucasus • Global competitive advantages of southern Russia are: mild climate and natural conditions which are conductive for development of agribusiness (account for 20-25% of Russian agricultural production); unique geographical location and well developed transport infrastructure; well developed network of educational and research institutions; rapidly developed and diversified economy, dynamic banking and insurance system; long historical traditions of enterprise conductive to an intensive development of SMEs. Comparative features of the region, % 2000 2005 2011 2012 2013 2014 Territory 3.5 3.5 3.5 3.5 3.5 3.5 Population 15.6 16.0 16.4 16.3 16.4 16.5 Gross domestic product 7.6 7.1 8.5 8.8 8.8 9.0 Industrial production - 5.6 7.6 7.3 7.2 6.2 Agricultural output 18.7 22.6 23.2 23.6 23.4 23.5 Construction 11.4 9.5 14.5 14.4 15.0 13.0 Retail trade 9.8 11.5 14.0 14.2 14.1 14.3 Investments 11.6 9.4 14.5 13.0 14.0 13.3 Center-invest Bank is the Sustainable for southern Russia 1 History From the date of foundation the Center-invest Bank became the «laboratory of reforms in the South Russia». «Enterprise for All» and «Business loan for businesswoman» were recognized as «The Best Social Projects of Russia»; The Financial Literacy Centre was opened www.school.centrinvest.ru was launched; «Sustainable Bank of Eastern 2014 Europe» by FT/IFC Sustainable Finance Awards; Citibank «STP Award Winner in the tender of the Federal Treasury for cash services of 2012» and Commerzbank «Relationship Award 2012» budgetary funded organizations of Rostov region; Youth Business 2013 Programme run by the IFBL «The Sustainable Finance Awards» organized by The New Economy 2012 magazine; correspondent account with Bank of Communications 2011-2015 Development Strategy «The Post-Crisis Development of (Shanghai, China) Southern Russia»; cooperation agreement with Guarantee Fund for SME 2011 Development and Support Top performing bank in the Rostov Region SME Development 2010 Programme; 1st loan under new Energy Efficient Housing and Communal Services Programme Erste Group Bank AG became the shareholder; Bank opened the first 2009 processing centre in southern Russia 1st CLN for USD175m have been issued in international market; 2008 Prof.Vysokov - «Sustainable Banker of the Year» by FT; Golden Certificate of Trust from the Federal Tax Service of Russia Moody’s assigned B1 rating; 1st international syndication for USD45million; 2007 1st bond issue of the bank in the amount of RUB1.5bln on Russian market implementation of the program «Doubling with Center-invest Bank»; 2006 DEG became a shareholder; RUB1bn syndication in the Russian money EBRD became the shareholder; entering VISA International as associate market member; adoption of Corporate Governance Code and Code of 2005 Corporate Ethics 2004 Branch opened in Krasnodar; implementation Agreements with European bank for Reconstruction and Development of program «Billion dollars of Don investments» (EBRD), The U.S. Agency for International Development (USAID), 2003 International Finance Corporation (IFC), HERMES entered 2002 Participation in programs for transition of Russian banks Cooperation with international financial institutions began; 2001 to international standards joining in Europay International as associate member 2000 Bank offices opened in Salsk, Kagalnik; development of pro-active marketing program Branches opened in Aksay, Azov, Semikarakorsk; implementation 1999 of new technology in conditions of financial crisis Agency agreement with Western Union, development of the program 1998 for Don SME support; first audit passed according to International Accounting Standards by PWC 1997 First correspondent account opened in the USA 1996 Advanced license for currency operations; first correspondent accounts opened abroad; launching first investment projects Start of operations with utility payments, opening first branches in Bataysk, 1995 Novocherkassk, Taganrog; operations with bills of exchange 1994 Start of operations with individual deposits and currency exchange transactions 1993 Center-invest Bank is the Sustainable for southern Russia Services for privatization processes 1992 3 Bank overview Mission statement 2013 Sustainable banking «Center-invest Bank is the Sustainable Bank for leader in Eastern Europe southern Russia»! • Center-invest Bank is a leading universal regional bank is southern Russia, was founded in 2010, 2012 1992 (General Banking License N2225) STP Excellence • Bank is licensed by the Federal Financial Markets Service of Russia to act as a broker, Award (Citibank) dealer, professional participant in the securities market for securities management and depositary in the Russian securities market 2013 • Credit ratings were revised in February 2015: «Relationship Award 2012» B1 (Stable outlook) – Moody’s Investor Service A1.ru – Moody’s Interfax • Two prominent IFIs – EBRD and DEG – together with Bank founders Vasily and Tatiana Vysokovy hold 68% of Bank’s shares 2014 • Bank operates through 130 offices in southern Russia and representative office in Moscow «The 100 Best Goods of Russia» (banking services) • CIB has been audited annually by PricewaterhouseCoopers Audit since 1997 http://www.centrinvest.ru/files/about/reports/audit%28en%29/CIB_2014_eng.pdf • High quality of loan portfolio: NPL>90 days as at 01.07.2015 made up 5.62% 2014 «The Best Center-invest Bank is the Sustainable for southern Russia • Number of employees: 1650 as at 01.07.2015 Regional Bank» 4 Shareholder structure as at 01.07.2015* 0.82% 3.58% others 27.45% Raiffeisenlandesbank Ooe EBRD (European Bank for 8.15% Reconstruction and Development) Rekha Holdings Limited 9.80% Erste GroupBank AG 9.90% Firebird Investment Fund 22.45% DEG (German investment 17.85% corporation whose aim is to Bank founders support countries with econo- Vasily and mies in transition through Tatyana Vysokovy private sector support) Center-invest Bank is the Sustainable for southern Russia * Voting right shares 5 Financial highlights Key financials RUB.billion 2009 2010 2011 2012 2013 1H2014 2014 1H2015 Assets 42.9 48.3 54.5 62.7 75.9 80.3 91.3 87.4 Capital 5.4 5.8 6.7 7.6 8.8 9.2 9.6 9.6 Net Loans and Lease 26.3 30.6 42.5 48.4 61.5 65.9 72.0 74.2 Customer accounts 27.8 33.8 39.0 44.0 49.4 48.6 49.2 55.0 Net profit 0.1 0.2 0.9 1.1 1.4 0.7 1.1 0.02 NIM,% 6.5 6.3 6.8 6.7 6.6 6.5 6.3 3.6 Cost/Income, % 53.1 51.8 49.9 45.1 45.0 40.0 43.4 55.8 Loans/Deposits, % 94.6 90.6 109.1 109.9 124.5 135.5 146.2 134.9 CAR,% 20.8 19.5 18.2 17.4 15.6 15.5 14.5 15.0 1USD=56.2584RUB as at 01.01.2015 1USD=55.8413RUB as at 01.07.2015 Center-invest Bank is the Sustainable for southern Russia 6 Competitive positions: ratings and rankings In ranking by the Expert RA Rating Agency In ranking of the 100 largest Russian banks Center-invest Bank is placed*: by the Banki.ru portal: 12 SME loan portfolio** 40 Value of retail loan portfolio 16 Value of loans granted to SMEs ** 52 Value of retail deposits 40 Value of retail loan portfolio 53 Value of corporate loan portfolio 51 Value of retail deposits 57 Total loan portfolio 53 Corporate loan portfolio 71 Net assets 58 Total loan portfolio 80 Capital Basel (form 123) 74 Assets https://www.banki.ru/banks/ratings/ *http://raexpert.ru/ratings/bank/monthly/Jul2015 **http://raexpert.ru/ratings/bank/credit_msb_9m2014 TOP-100 Russian Banks by «The Banker» magazine: 10 Cost/Income Ratio In the Forbes annual reliability rating of Russian banks: 15 Return on Tier 1 Capital 33 The «Most Reliable Banks: classed as «highly reliable»» 25 Return on Assets http://forbes.ru/ratings 58 Assets Center-invest Bank is the Sustainable for southern Russia 72 Capital http://www.thebanker.com 7 Center-invest Bank: market share Share of Center-invest Bank in Rostov region Share of Center-invest Bank in southern Russia among local banks among local banks in CIB operational area Loans* 01.07.2015 Loans** 01.07.2015 80. 12% 39.96% Deposits 01.07.2015 Deposits 01.07.2015 79. 28% 29.06% *loans to individuals, corporate loans, leasing, ** loans to non-financial corporations, Center-invest Bank is the Sustainable for southern Russia factoring and interbank loans leasing, factoring 8 Balance sheet structure Liabilities Assets 87 385 87 385 80 329 424 80 329 243 572 3 533 509 1 514 3 203 9 049 1 729 2 269 8 994 9 586 2 352 9 193 9 214 9 816 9 868 74 166 9 742 54 977 65 871 48 604 01. 07.14 01. 07.15 01. 07.14 01. 07.15 Customer accounts Net Loans and Lease Debt securities in issue Cash and mandatory reserves with Total shareholders equity the Bank of Russia Loans from IFIs Fixed assets Due to CBR and other banks Other assets Other liabilities Trading securities Center-invest Bank is the Sustainable for southern Russia 9 Loan portfolio development During the 1H2015 gross loan portfolio increased by RUB2.7bn (+3.5%) and reached RUB78.2 billion. The steady growth in lending is attributable to the attractive lending terms, comprehensive support to SMEs, free consulting services to clients and long-term sustainable development strategy of the Bank. Loan portfolio growth dynamics, RUB m RUB, m 78 213 68 583 75 551 40 000 63 742 35 103 35 000 33 983 30 025 30 467 32 090 30 000 28 532 27 431 26 297 25 000 20 000 15 000 10 014 10 026 11 101 11 020 10 000 5 000 0 01.01.2014 01.07.2014 01.01.2015 01.07.2015 Center-invest Bank is the Sustainable for southern Russia SME loan