Presentation for investors ESG Banking:made in Russia 3Q2018

Transcription

1 Presentation for investors ESG Banking:made in Russia 3Q2018

2 Bank overview Number of offices Client base Staff mln 1662 Credit ratings - Ba3 - А(ru) ESG-rating 17/76 (Europe) 2010, 2012, 2013, STP Excellence Award Sustainable banking leader in Eastern Europe FT/IFC TOP 35 The most reliable banks in Russia The 100 best goods in Russia 1

3 История First correspondent account opened in the USA Implementation of the program Doubling with Center-invest Bank ; DEG became a shareholder Services for privatization processes EBRD became a shareholder; entering Visa international; adoption of Corporate Governance Code and Code of Corporate Ethics Start of operations with individual deposits and currency exchange transactions The Sustainable Finance Awards by The New Economy magazine The Financial Literacy Centre was opened Dr.Vysokov Sustainable Banker of the Year (FT) Cooperation Agreement with Guarantee Fund for SME Development and Support Moody s assigned B1 rating; 1st international syndication for USD45m; 1st bond issue in amount of RUB1.5bn responsibility Investments AG became a shareholder First Russian bank who started issuing and acquiring Mir payment cards Sustainable Bank of Eastern Europe by FT/IFC Sustainable Finance Awards ACRA assigned A (Ru) rating; ESG-rating by VigeoEiris (17/76) 2

4 Shareholders Shareholders structure* 3.30% Raiffeisenlandesbank Ooe 7.49% 0.76% other 24.43% Bank founders Dr. Vasily Vysokov and Tatiana Vysokova Rekha Holdings Limited 9.01% Erste Group Bank AG 19.74% EBRD (European Bank for Reconstruction and Development) 9.11% Firebird Investment Fund 10.02% responsability Investments AG 16.14% DEG (German investment corporation, subsidiary of KfW) *%, Voting right shares 3

5 ESG-digitalization of Center-invest bank s ecosystem Development of the Bank s operational 1 Operational system 2 Relations with the regulator and state bodies t gi d i in E S Glo t er of Cen eco re e on based orat rp and co al ve i z a t gi st b io n a ca sp l, s nk s on oc sib ial ili t y p riciple s Digitalization for customers 3 Data and Payment Security Leadership in integration Big Data Interfaces with the regulator and government bodies: Leadership in pilot projects (Bank of Russia, Russian Pension Fund, NSPC and others) Integration with state services Automated Reporting Direct document exchange with government bodies Interaction with retail customers: Mobile banking, Bank of Russia s Marketplace, Customer identification via state systems Interaction with business customers: Analysis of cashier s checks, Internet and mobile banking with multi-level antifrod (SafeTouch) 4

6 Financial highlights RUB, bn Q Q18 Assets Capital Net Loans and Lease Customer accounts Net profit ROAE, % ROAA, % NIM, % Cost/Income, % Loans/Deposits, % CAR, % Number of children born to bank employees 1USD= RUB as at USD= RUB as at

7 Key financials The dynamics of key financial performance indicators demonstrates the ability of the Bank to operate in difficult financing environment and adapt efficiently in rapidly changing environment, "to be at the forefront of trends and constantly ready to meet new challenges" bn Assets 2003 Loan Customers accounts Capital Net profit 6

8 Center-invest Bank: market share Share of Center-invest Bank in southern Russia among local banks in CIB operational area Loans* Deposits % 40.03% *loans to non-financial corporations, leasing, factoring Due to the lack of data on regional Sberbank branches of Russia, information about a share among all banks isn t available. 7

9 Competitive positions: rankings In ranking of the largest Russian banks as at : Value of retail loan portfolio In ranking of TOP-16 Russian banks for SMEs as at : Value of loan portfolio to individual entrepreneurs Value of total loan portfolio Value of total assets Value of retail deposits Value of corporate loan portfolio Value of loan portfolio to small business Value of loan portfolio to medium enterprises Value of total SME loan portfolio In ranking of largest mortgage banks as at : 14 Number of issued loans 17 Value of issued mortgage loans 18 Value of mortgage loan portfolio TOP-100 Russian Banks by The Banker magazine: Profit CAR ROE ROA Cost/Income Tier 1 & Net Assets 8

10 Assets: dynamics and structure Loan portfolio/assets, bn Loan portfolio Assets structure, m Assets % 10% 8% 2% 2% Net Loans and Lease Cash and mandatory reserves the Bank of Russia Due from other banks Fixed assets & Intangible assets Other assets 9 13

11 Loan portfolio development m SME loan portfolio and leasing Retail loan portfolio Corporate loan portfolio 10

12 Structure of the loan portfolio 27% 32% 5% 7% 18% 11% Industries structure 32 % 27 % 18 % 11 % 7% 5% Structure by collateral 1% 68% Agriculture Trade Manufacturing Others Transport Construction 5% 68% 15 % 11 % 5% 1% Real estate Motor vehicles Third parties guarantees Others Farming machines 11% 15% 97% 3% 9% Structure by currency 97% Russian rubles 3 % Foreign currency TOP-10 Borrowers* 9% Share of TOP-10 Borrowers in gross loan portfolio and leasing Gross loan portfolio and leasing RUB 90.4 bn *%, loans and lease before provisions 11

13 Agribusiness Lending Value of financing agribusiness projects, m 32% 27% 21% % 25% % share in corporate LP Q Q 2018 Bank was included in the list of credit institutions approved by the Ministry of Agriculture authorized to participate in the government s preferential agricultural lending programme. 12

14 Energy Efficiency Lending Total investment in EE projects, m Q Q 2018 Center-invest Bank's success in financing EE projects is attributable to the fundamentally new approach: sustainable lending. It combines technical, financial and social engineering. 13

15 Retail lending Breakdown by loan volumes as at Dynamics and structure of retail lending portfolio, m +8.3% m % mortgage % Consumer loans 3% Car loans Consumer loans Mortgage Car loans 14

16 Accelerator of Center-invest Bank This is an innovative space for opening and development of all types of businesses. More than 5000 entrepreneurs have already become the participants of Accelerator. 1 month of education 7 hours per week Online-education Mentor programs Free consulting support Inclusive financial services Business loans for women Startup for start-up entrepreneurs over 3 years maturity up to 3 million RUB consulting support mentor programme 681 projects total of 805 m for business-women soft loan NPL=0% 565 projects total of 869 m Social responsability educational services, health the revival of cultural traditions start of programme 26 projects total of 75 m 15

17 Liabilities: dynamics and structure Liabilities structure, m Dynamics and structure of customer accounts, m 91.6 % 91.6 % 91.9 % % Individuals Corporate clients Loans/Deposits, % 85% 12% 1% 1% 1% Customer accounts Total shareholders equity Loans from IFIs and other banks Debt securities in issue Other liabilities 16 13

18 Center-invest Bank on financial markets Bonds in circulation Series Total par value, RUB m In circulation, RUB m Maturity date Put option date Coupon rate, % per annum Exchange bonds, BO-07 series Exchange bonds, BO-10 series Exchange bonds, BO-001P-03 series Exchange bonds, BO-001P-04 series Exchange bonds, BO-001P-05 series

19 Cooperation with IFIs Starting from 2002 Bank has been attracting funds from both the Russian and the international financial markets. Our partners 18 13

20 Operational efficiency Profitability Capital adequacy % %% 47.2% 44.9 % % 44.4% % NIM 3Q17 ROE Q18 Cost/Income N1.0, RAS CAR, IFRS CAR, Tier 1, IFRS CAR,Basel 3 19

21 Focus on social responsibility Since 2003 the Endowment Fund for Education and Science in the SFD and Center-invest Bank have been running an open scholarship competition for undergraduate and postgraduate the best students in Southern Russia. More than students have entered the competition since it began, and scholarships have been awarded. Center-Invest bank set up Financial Literacy Centers in Rostov-on-Don, Krasnodar and Taganrog. Center regularly provide trainings for older people, young entrepreneurs and workshops for those who want to develop its existing business. All consultations and workshops by the volunteers of the Center free of charge. The Bank s work to raise financial literacy continues all year round. Online training platform Enterprise for All (school.centrinvest.ru) combines training modules in the basics of entrepreneurship and testes in 6 languages. Over people have registered on the portal so far people have received a certificate Enterprise for All. Since 2004 more than children received free entry to the exhibitions at the Rostov Region Local Studies Museum and Volgograd State Panoramic Museum Stalingrad Battle

22 Center-invest Bank in 3Q2018 A new book "Banks love small business" by Prof.Vysokov was published. At the XVI International Forum "Banks of Russia in XXI Century" in Sochi, the Council of the Association of Russian Banks approved the declaration which was proposed by the book. The analytical Credit Rating Agency (ACRA) assigned Center-invest Bank a national scale rating of A (RU), stable outlook. In the framework of the Russian-Chinese Youth Business Incubator to be held in Rostov-on-Don Center-Invest Bank signed a cooperation agreement with the Association for the Promotion of Youth Entrepreneurship in Shenzhen. The agreement will allow the parties to share experience and best practices in managing ESG projects and start-up development. In the framework of the XII Forum of the largest companies in the Southern Federal District, organized by the Expert-Yug business magazine, Center-Invest Bank was awarded in the nomination The Largest Bank of Southern Russia and became the winner of the award for the twelfth year in a row. Center-Invest Bank took part in the Business Forum Supporting the Growth of Regional Cooperation in Russia of the Black Sea Trade and Development Bank. The organizers praised the role of Center-Invest Bank in promoting the real sector of the economy in the country and working with international financial institutions. Center-Invest Bank took part in the annual agricultural forum Don Farmer and presented financial products for agricultural development and the results of work as part of the program of preferential loans to agribusiness. At the round table "Women's view on the development of rural areas" a unique program of support for women entrepreneurs was presented by the Bank. Center-Invest Bank launched a new system of remote banking services for legal entities Business Online. Nizhny Novgorod State University and the Mininsky Pedagogical University have become partners of scholarship program realized by Center-invest Bank and the Endowment Fund Education and Science of SFD. 21

23 Contacts Dr.Vasily Vysokov Tatiana Vysokova Olga Vysokova Chairman of the Board of Directors Member of the Board of Directors Advisor to the Supervisory Board tel. +7 (863) tel. +7 (863) tel. +7 (863) Sergey Smirnov Yuriy Bogdanov Lidia Simonova Chairman of the Executive Board Director of innovations Deputy Chairman of the Executive Board Russia, Rostov-on-Don, , Sokolova ave. tel tel. +7 (863) smirnov@centrinvest.ru tel. +7 (863) referent@centrinvest.ru tel. +7 (863) l.simonova@centrinvest.ru welcome@centrinvest.ru Head office 22