Introductory presentation. years in BELARUS!

Transcription

1 Introductory presentation years in BELARUS!

2 Belarus: political update Key tendencies & news Belarus: ranks & figures In brief 2015: key points 2016: increased powers CG structure Content TOP 5 banks in Belarus Capital injections & funding base Core business & special functions Core business Projects map International presence Social responsibility Annexes

3 BELARUS: POLITICAL UPDATE Belarusian national ornament symbolizing clean & creative energy Alexander Lukashenko meets with Angela Merkel, François Hollande, Vladimir Putin and Petro Poroshenko at Minsk summit February, 2015 Alexander Lukashenko meets with Johannes Hahn, European Commissioner for European Neighbourhood Policy and Enlargement Negotiations 17 April, 2015 Alexander Lukashenko meets with Christine Lagarde, Managing Director of the International Monetary Fund 26 September, 2015 Alexander Lukashenko meets with Heinz Fischer, President of Austria 28 September, 2015 «Seen from Minsk, past 20 years were not so bad Of the six countries in the EU s Eastern Partnership (EaP) program Belarus has the highest income per person bar oil-rich Azerbaijan It avoided chaotic privatizations of Russia and Ukraine, and has no oligarchs straddling business and politics» 11 April, 2015 «... Lukaschenko hatte 2014 etwa die Eingliederung der Krim durch Russland kritisiert. Nach Einschätzung von Beobachtern wird er damit sein Ansehen im Westen steigern» 11 Oktober, 2015 «The EU has signalled its intention to suspend some of the sanctions imposed on Belarus, in a move that could bring President Alexander Lukashenko out of its diplomatic isolation.» 12 October,

4 BELARUS: BREAKING NEWS! Belarusian national ornament symbolizing spring time After more than 15 years of sanctions pressure оn Feb 15, 2016 EU Council agreed to drop most of it s sanctions against Belarus 1998/2002/2004/2006 Sanctions in force Oct 29, 2015 Sanctions «on pause» Feb 15, 2016 No sanctions! 4

5 KEY TENDENCIES & NEWS Belarusian national ornament symbolizing life Improvement of external trade balance (2015 surplus 0.3% of GDP) Lower inflation (YoY: %; %) Keeping the balanced fiscal policies (2015 budget surplus 1.7% of GDP) Tightening of monetary policy: limitation of directed lending in 2016 Floating exchange rate of Belarusian Rubles keep in force Price liberalization in progress Belarus and the Eurasian Development bank signed an agreement on a $2 billion 10-year loan to be disbursed in tranches until 2018 to support economic reforms IMF and Belarus made considerable progress in discussing a set of policies which could be supported by a 3Y Extended Fund Facility arrangement with 10-year maturity Belarus has advanced 13 positions to rank 44th in Doing Business Ranking WB forecasts a 0.5% fall in GDP of Belarus in 2016 and it is projected to return to growth by 1% annually in 2017 and 2018 Belarusian Potash Company's share in global export up to 19.3% in 2015 Framework agreement between Belarus and the European Investment Bank is to be signed 5

6 BELARUS: RANKS & FIGURES Belarusian national ornament symbolizing growth & development *potash RANKS 3 producer 3 producer 4 exporter 10 % market share In European TOP-5 by number of graduates In World s TOP-10 by moving towards business-friendly regulations (World Bank Doing Business) In World s TOP-40 by creativity being the leader among the CIS (Global Creativity Index-2015) Official website of the Republic of Belarus 8% 4% 0% -4% -8% -12% -16% 70% 60% 50% 40% 30% 20% 10% 0% 18.8% Trade balance, % of GDP -7.7% -11.4% -13.6% -2.1% 4.5% USD GDP per capita 2014, #62 in World by IMF Maastricht criterion 60% Legislative ceiling 45% -3.2% -0.6% 24.9% 23.7% 22.8% 22.3% 31.3% Gross pub. debts, % of GDP 0.4%

7 IN BRIEF Founded in 2011 upon recommendations of IMF and World Bank 100% state-owned Classic development institution Export finance leader in Belarus with 84% market share Mandated by the Government as asset manager The only Belarusian bank that has: -authority to initiate and change national financial & banking legislation -Government guarantee for all bond issues -Rep. Office in London -SME support credit program approved by World Bank DBRB Headquarters, Minsk Team of 378 highly experienced professionals (as of ) B- by S&P / Fitch with «stable» outlook IFRS FS since 2012 (on 6-12 m. basis) audited by KPMG «Gold» by profit and «Silver» equity among all Belarusian banks (2015) 7

8 2016: INCREASED POWERS Exclusive rights for export finance in Belarus with budget support (only DBRB will act as Lender) The only financial institution for direct state programs lending in Belarus Competitive selection for all projects (DRBR will finance only profitable and effective projects from all listed in state programs projects) Belarusian banks will return funds from previously financed state programs to DBRB (special bonds will be issued by DBRB) 8

9 CG STRUCTURE (SUPERVISORY BOARD) Shareholders representatives (Government and National bank ) Independent directors (science, public activity, Top business, int. business) Vasily Matyushevsky First Deputy Prime Minister of the Republic of Belarus Vladimir Zinovskiy Minister of Economy of the Republic of Belarus Andrei Kobyakov Prime Minister of the Republic of Belarus Chairman of the Supervisory Board Risk Committee Budget & Remuneration Committee Audit Committee Strategic Development Committee Mikhail Kovalev Dean of Economics Faculty of the Belarusian State University Aleksandr Shvets Chairman of «Belarussian scientific industrial association» Vladimir Amarin Minister of Finance of the Republic of Belarus Sergei Kalechits Deputy Chairman of the Board of the National Bank of the Republic of Belarus Our Supervisory Board is the unique «fusion» of Top Officials from financial & economic spheres, representatives from science and public and foreign experts. Siarhei Navitski Director General of Henkel Bautechnik JLLC Daniel Krutzinna Managing Partner of independent management consultancy Civitta 9

10 TOP 5 BANKS IN BELARUS 26 banks operating in Belarus, incl. 5 banks controlled by the state 16 banks controlled by foreign capital Assets / Equity/ Profit (2015)* Belarusbank 14.4 Belarusbank 1.9 Belagroprombank BPS-Sberbank Development Bank Development Bank Belagroprombank BPS-Sberbank Development Bank Priorbank Belgazprombank Belarusbank Belinvestbank 2.0 Priorbank 0.2 Bank BelVEB 34.2 USD bn eq USD bn eq USD mln eq Since 2012 we are member of «TOP 5 banks in Belarus» club *Source: NBRB 10

11 CAPITAL INJECTIONS & FUNDING BASE USD 780 mln DBRB capital as of January 01, 2016 (#2 among all Belarusian financial institutions) Capital Injections Dynamic exp USD 4 mln USD 351 mln USD 597 mln USD 104 mln USD 134 mln USD 50 mln DBRB is #1 by CAR (Tier 1) among all world development institutions Funding Base Composition Own funds, including capital injections Local Bonds (BYR and FX nominated) External Funding (Syndications / BB Loans) Social prgm. Big Family (up to USD 120 mln per year) 11

12 CORE BUSINESS & SPECIAL FUNCTIONS Core business Special functions State Programs Financing Single coordinator of State programs lending International Activities SME Support Export Finance Solutions The main platform of DBRB activities is to provide unique financial solutions on non - competitive basis with commercial banks Government agent on DCMs «Toxic» asset management 12

13 CORE BUSINESS DBRB is the leading financial institution for state programs financing with around 50% stake of total volume. From 2016 DBRB will act as a single coordinator for all state programs to be financed in Belarus Loan portfolio dynamic (USD bn) / Breakdown / FX Structure State Programs Financing * Transferred Loans Development Bank's Loans * ruble portfolio decreased significantly by reason of devaluation Agriculture Construction & Real Estate Transport & Communications Export finance 24.1 Industry Trade Other BYR USD EUR RUB 10% 8% 7.6% 7.6% 7.7% 6.5% 6.0% 5.8% 5% 5.9% 3% 0.5% 0.9% 0% 2011 H H H H NPLs totaled 5.8% of DBRB loan portfolio as of (transferred loans NPLs 15.9%/ own loans NPLs 0.09%). Average level of NPLs in Belarusian banking industry 6,5% (as of ). 13

14 PROJECTS MAP Completed projects Stadium construction in Borisov The only football stadium in Belarus authorized by UEFA to held Champions League group stage Reconstruction of the biathlon stadium Raubichi Junior Biathlon World Championship and The Race of Legends were held Delivery of 2 Embraer 195LR jets for Belavia The first new aircraft wholly owned by the national airline Belavia The purchase of mechanized Tunnel boring machine Will accelerate the construction of the third underground line in Minsk by 2.5 times Construction and reconstruction of 57 dairy farms Increase in gross milk production up to 10 mln. ton and double increase in exports Dairy plant construction in Turov A unique Belarusian plant producing cheese of European varieties 14

15 2016: FINANCING PLAN COMPOSITION (MAJOR AREAS) Classic Lending Other Instruments Industry Modernization USD 96 mln Export Finance USD 152 mln Agricultural Sector USD 95 mln USD 500 mln SME Support USD 50 mln Infrastructure USD 27 mln Leasing USD 47 mln Public Road Construction USD 33 mln USD 200 mln expected to be raised on DCMs Total state programs financing in 2016 USD 1.5 bn DBRB DBBR s share USD 0.5 bn 15

16 PROJECTS MAP Current projects USD 285 mln Second Minsk ring road construction Total road length >160 km Mission: environmental improvement in Minsk USD 2 bn Construction of the third underground line in Minsk Line length: 17.2 km/ 14 stations Mission: environmental improvement and development of public transport in Minsk USD 200 mln Support of export of Belarusian equipment Export to Mongolia, Cuba, Zimbabwe, Singapore Mission: entering new markets, export diversification Projects in pipeline USD 150 mln Delivery of 3 Boeing NG737 jets for Belavia USD 18 mln EUR 94 mln USD 12 mln USD 400 mln Accumulator battery plant Tractor Stadium construction in Construction of medical center Development of Sitnitsky field 16 construction Minsk in Brest

17 CORE BUSINESS SME Support DBRB provides funding for 11 local partner banks to support projects and business ideas of their SME clients Funds & Liquidity Loans & Lease for SME (since Aug,14) Economic sectors breakdown 442 Projects USD 125 mln Total volume Joint program with the World Bank expected in % 1.1% 2.0% 7.7% 29.4% Agriculture Forestry Construction Transport 70 % market share in % Services Industry 17

18 CORE BUSINESS SME Support (cont d) DBRB creates unique atmosphere in Belarus for growing new business ideas and talents in SME area «Start up» From 2015 DBRB considers «Start up» companies as important part of SME support system V International Entrepreneurship Forum (Nov , Minsk ) Around 500 participants from SME business, World Bank, Belarus Top Officials DBRB - official Arranger and Sponsor «My Business» TV-Show Above 700 participants from different regions of Belarus presented own business ideas. Hosted and sponsored by DBRB 18

19 CORE BUSINESS Activities on the International Capital Market ECAs To become partner #1 among Belarusian banks for foreign institutions Partner Banks High Ratings by ECAs (= Sovereign Rating) And more Established Risk Limits No Guaranty Required Financing of large investment projects Established Credit Lines 19

20 INTERNATIONAL PRESENCE We are only financial institution from Belarus with Rep. Office in London (UK) Investors relations Belarus export support PR Events Clients consultations 20

21 CORE BUSINESS Export Finance Solutions Export finance geographic composition Selected export brands DBRB jointly with Promagroleasing (73% owned by DBRD, #1 international leasing operator in Belarus) provide around 90% of total Belarus export finance support USD 11.7 mln USD mln USD mln

22 SOCIAL RESPONSIBILITY «School Bus» as viewed by children (Katya, 7 years) The world s biggest gobelin in DBRB HQ (May, 2014) DBRB BSU SCA Signing Ceremony (June 6, 2014) «School bus» program over 300 special buses for safe study trips and traveling Our Head Office building provides opportunities to show the biggest art and culture objects DBRB Belarusian State University Strategic Cooperation Agreement, training and first working place for talented students Being the leader in financial business DBRB pays special attention to social projects Special program «Young tennis stars» Vera Lapko, junior Australian Open 2016 Champion Soccer tournament «Development Cup» for boys up to 17 ys old Exhibition of paintings from the Tretyakov Gallery General Partner 22

23 Annexes

24 CG STRUCTURE (MANAGEMENT BOARD) Chairman Deputies Heads of business divisions Sergei Roumas Chairman Tatsiana Sasnouskaya First Deputy Chairperson Natallia Yasinskaya Deputy Chairperson Dzmitry Lipski Head of Finance & Economics Alyaksei Zhyrankou Head of Active Banking Operations Vasili Shved Deputy Chairman Ivan Varenitsa Deputy Chairman Mariya Arlouskaya Chief Accountant Siarhei Staliarchuk Head of International Business Pavel Dzik Head of Legal Department 24

25 ASSETS TRANSFER HISTORY USD 0.3 bn USD 0.6 bn USD 0.5 bn USD 0.1 bn During DBRB has entered in the books USD 1.5 bn of assets from 2 biggest state commercial banks 25

26 FIGURES Total Assets USD mln 2 608, , , , ,3 Due from banks 136,1 173,2 167,0 316,7 2,1 Loans to customers 1 538, , , ,2 193,5 Securities available for sale 811,8 993, , , ,6 Property and other assets 122,2 95,7 94,0 43,5 17,1 Total liabilities and equity USD mln 2 608, , , , ,3 Due to banks 365,6 288,5 133,1 0,0 0,0 % ROA I CAR (DBRB vs Banking System) by NAS Customers deposits 367,0 407,3 317,5 71,0 254,1 incl. Government s deposits 353,3 402,5 298,8 71,0 254, Development Bank Banking system Debt securities issued 995, , , , ,7 Other liabilities 79,1 25,4 30,4 9,4 2,1 Equity 801,0 990, ,4 563,7-43,6 incl. Share capital 723,9 938,3 938,8 356,9 3,5 % BYR/USD, eop Consolidated statement by IFRS 26

27 CREDIT RATINGS Long-term issuer : 'B- Short-term issuer : 'B Outlook Stable Assigned on September 4 th 2013 Affirmed on July 30 th 2015 DBRB Credit Ratings Fully Correspond to Belarus Sovereign Ratings Selected DBRB Key Strengths viewed by RAs Long-term IDR: 'B- Short-term IDR: 'B Outlook Stable Assigned on February 5 th 2014 Affirmed on August 5 th 2015 The bank enjoys special legal status Critical public policy role Close association with authorities Sizable capital buffers 27

28 GOVERNMENT ADVISING Selling a pool of toxic assets (USD 650 mln) Ministry of Finance Toxic assets ( ) Management mandate Woodworking enterprises Management 2015 International Business *Repayment The core objective of BRRB management is to improve efficiency of woodworking enterprises with a view to return of assets to the Ministry of Finance of the Republic of Belarus spent to purchase the toxic assets pool. Strengthening of corporate governance system Development strategy adjusting Marketing policy adjusting Analysis and optimization of technologies applied Operating capital management Independent examination Attraction of direct investors 28

29 JSC «Development Bank of the Republic of Belarus» , Republic of Belarus, 35, Masherova av., , Minsk SWIFT BRRBBY2X Fax: INTERNATIONAL BUSINESS TEAM Sergei Stolyarchuk Member of the Board Head of International Business Tel: Mob: Dzmitry Kuliashou Deputy Head of International Business Head of Trade and Structured Finance Tel: Mob: Alexandr Churilo Deputy Head of International Business Head of UK Representative office (London) Tel: Mob: Andrei Belkovets Head of Financial Institutions Tel: Mob: This presentation was prepared by JSC «Development Bank of the Republic of Belarus», International business department. All estimates and opinions present in this presentation constitute our judgments as of the date of the presentation preparation and may be subject to change without notice. This presentation is intended for your reference only and it may not be circulated, distributed, reproduced or disclosed (in whole or in part or in any manner whatsoever) to third parties without the prior written consent of JSC «Development Bank of the Republic of Belarus».