INVESTOR PRESENTATION. BTA AT A GLANCE June 2008

Transcription

1 INVESTOR PRESENTATION BTA AT A GLANCE June 2008

2 CONTENTS BTA AT A GLANCE Strategy Competitive Positioning The Team Financial Overview Contacts Page 2

3 STRATEGY

4 Milestones Creation of Bank TuranAlem through Turanbank-Alem Bank merger Privatisation to Kazakh investors Minority investment in Slavinvestbank, Moscow Representative offices in Kyrgyzstan, Belarus, China Minority investments in Astanaeximbank, Belorussia Representative office in UAE Increase of equity by US$ 1.5 bln Minority investment in a Ukrainian bank Application for a banking licence in China EBRD, IFC, FMO, DEG, RZB become shareholders First credit rating from Moody s First bond issue Adoption of geographical diversification strategy Minority investments in banks in Russia (incl. Omsk Bank), Georgia and Armenia Representative offices in Russia and Ukraine International credit ratings raised to Baa2/BB-/BB+ ORIX Japan becomes a shareholder of BTA Leasing Development of a new strategy East Capital becomes a shareholder Minority investment in Sekerbank, Turkey Acquisition of a majority stake in Temirbank, Kazakhstan Consolidation of the financial group through creation of a holding company Launching and implementation of new strategy and rebranding Page 4

5 Mission and Strategy Further enhance the bank s leadership position in Kazakhstan Provide the full range of financial solutions in the emerging markets of the CIS, Eastern Europe and Asia Increase its presence in the CIS and in Kazakhstan s key trade partners, such as Turkey and China Key Stakeholders Key Customers Key Goal in Kazakhstan Key Objective in the CIS Customers, Shareholders, Employees Retail clients and SMEs Evolution into a universal financial group with market shares of at least 25% in retail, SME and corporate sectors Geographic diversification of revenue through acquisition and development of well-positioned retail banks with strong clients bases and solid balance sheets Page 5

6 What makes us special Local for locals at every market: 402 retail units, 714 ATMs, 420 Faster units in Kazakhstan and 211 in CIS,160 Cash&Pay 24-hours servicing terminals Geographic coverage: Market share in SME 16.6% in H12008 Market shares of 20.6% in deposits and 19.3% in consumer loans Market share in corporate lending 30.5%. A large market share (approx. 40%) in consumer payments (utilities, mobile phones and taxes) Growth: Since 1998 BTA assets grew from US$ 219,2 mln to US$ 26,928 mln. in 1H2008, capital from US$ 43,9 mln. to US$ 3,953 mln., number of employees from 2,320 to 13,058. Page 6

7 COMPETITIVE POSITIONING

8 BTA Group Structure Deep penetration of financial services in Eurasia and broad geographic diversification of the core business overseas Bank Market BTA Bank Temirbank Kyrgyzstan: BTA Bank ( 71.0%) Insuranc e Market Mortgage Market Pension Market BTA Insurance BTA Zabota BTA Life London-Almaty Insurance Co. Oranta Life BTA Ipoteka BTA Kazakhstan Accumulative Pension Fund Russian Pension fund Bank Market Georgia: BTA Bank (49.0%) Belarus: BTA Bank (48.9%) Armenia: BTA Invest Bank (48.9%) Turkey: Sekerbank (33.9%) Ukraine: BTA Bank (9.9%) Russia: BTA Kazan (47.3%) Omsk Bank (17.8%) BTA Bank (15.6%)* *Consolidation is currently in progress Securities Market TuranAlem Securities Representative office in Shanghai, China Representative office in Dubai, UAE Leasing Market BTA ORIX Leasing Temir Leasing Leasing Company Delo Insurance Market NSIC Oranta, Ukraine (14.0%) Page 8

9 Solid position in home market Market share by Assets as of 1H 2008 Other 13.0% Market share by Capital as of 1H 2008 Other 17.6% Centrcredit 7.4% BTA 26.7% BTA 31.2% Centrcredit 4.9% ATF Bank 8.6% ATF Bank 6.5% Alliance Bank 9.0% Haly k Bank 14.0% Kazkommercbank 21.4% Total per BS bln.$ Alliance Bank 11.0% Halyk Bank 11.2% Kazkommercbank 17.6% Total per BS bln.$ Market share by Loans as of 1H 2008 Market share by Deposits as of 1H 2008 Centrcredit 7.1% ATF Bank 9.0% Other 9.8% Centrcredit 8.2% ATF Bank 6.1% Other 12.7% Alliance Bank 8.4% Alliance Bank 7.5% BTA 27.7% BTA 22.7% Haly k Bank 13.2% Halyk Bank 17.9% Kazkommerc bank 24,9% Total per BS bln.$ Kazkommercbank 24.9% Total per BS bln.$ Page 9

10 5% 0.5% $25.9 bln. Belorussia 0.2% 2% $ bln. Russia 0.2% 5% $148.2 bln. Ukraine 5% 1,8% $5.3bln. Georgia 22 branches 280 retail units Kazakhstan 1.2% 5% $520.0 bln. Turkey 1.5% 5% $3.0 bln. Armenia 13% 25% $1.4 bln. Kyrgyzstan Current share by assets Plans for growth Assets of banking system Further plans: Tokyo New-York Hong Kong Page 10

11 Sustainable growth of profitability BTA Bank has been able to retain good growth rates of Net Interest Income and Net Interest Margin, while maintaining a good Cost/Income ratio Net interest income and Net interest margin Cost/Income Ratio % $ mln $ ,000 40, Cost and profit per employee 46,070 42, H ,000 20,000 10,000 10,870 15,919 17,593 7,205 Net interest income Net interest margin (%) Cost per employee Net profit per employee Source: Bank Data as of Jule, 2008 Page 11

12 THE TEAM

13 Dedicated Board of Directors Mukhtar Ablyazov Chairman of the Board Yerkin Tatishev Member of the Board Konstantin Kolpakov Member of the Board Roman Solodchenko Member of the Board Akmaral Ablyazova Member of the Board Yerlan Tatishev Member of the Board Yrki Talvite Member of the Board Independent Director Talgat Akhsambiev Member of the Board Independent Director Page 13

14 Strong Management Team Roman Solodchenko Chairman of the Management Board Asylmurat Ramazanov Managing Director Corporate business Indira Izteleuova Managing Director HR Zhaksylyk Zharimbetov First Deputy Chairman Risk management Security Genrig Kholodzinskyi Deputy Chairman SME business Bakhyt Otarbekov Managing Director State bodies relations Khalil Kamalov Chief Financial Officer Murat Yuldashev Deputy Chairman IT Kapbasova Kunsulu Managing Director Retail business George Iosifyan Managing Director International Financial Institutions Loan & Capital Markets Abilakim Zhumakhmetov Deputy Chairman Administration Page 14

15 FINANCIAL OVERVIEW

16 Diversified shareholders base % "InvestCapital" Company" LLP (Almaty, CP-Credit Prive S.A. (Geneva, Switzerland) 6.74 Kazakhstan) 8.86 Strident Energy Limited 9.56 "SMKK" LLP (Almaty, Kazakhstan) 7.81 Drey Associates Limited (United Kingdom) 9.65 "Yassy-Invest"LLP (Turkestan, Kazakhstan) 7.19 "Agroinvest" LLP (Almaty, Kazakhstan) 7.15 KT Asia Investment Group B.V. (Netherlands) 9.66 "MaktaAral" Company" LLP (Shymkent, Kazakhstan) 6.91 Others 26.5 International shareholders Local shareholders Bank benefits from continuous shareholders commitment to maintain higher level of capital adequacy ratio. This was evidenced by additional capital injection of US$1.5 billion in cash during 2007 Shareholders with 5 or more percent of all shares Page 16

17 Solid balance sheet structure and well managed currency position Assets structure as of June 30, 2008 Cash and obligatory reserves 9,4% Financial assets at fair value 5,0% Amounts due from credit institutions 3,7% Liabilities structure as of June 30, 2008 Amounts due to credit institutions and NBK 31,3% Loans to Customers 73,4% Investments in Associates 1,7% Investment securities 2,1% Other 4,7% Debt securities issued 41.0% Amounts due to customers 25,9% Other 1.8% Assets diversification by currencies as at June 30, 2008 Nonconvertible currencies 3% KZT 39% Liabilities diversification by currencies as at June 30, 2008 Nonconvertible currencies 1% KZT 31% Convertible currencies 58% Convertible currencies 68% KZT Convertible currencies Nonconvertible currencies KZT Convertible currencies Nonconvertible currencies Page 17

18 Key financial performance indicators ($m) 2006 June March June Assets 16,340 24,044 25,475 26,219 27,795 Loans to customers 10,578 17,779 19,782 19,897 20,414 Deposits from customers 4,159 6,117 5,424 5,557 6,192 Shareholder's equity 1,532 2,968 3,758 3,837 3,928 Net income Tier 1 Capital Adequacy Ratio 12.1% 15.1% 16.9% 16.7% 16.6% Total Capital Adequacy Ratio 17.5% 16.8% 17.6% 17.4% 19.8% RoAA 3.0% 3.3% 2.4% 2.0% 1.8% RoAE 35.8% 33.5% 22.4% 13.6% 12.0% Liquid Assets/ Total Assets 32.7% 21.9% 16.7% 17.1% 20.1% Loan Yield 9.8% 12.7% 11.4% 10.0% 11.0% Net Interest Margin 4.2% 5.3% 6.0% 6.3% 6.0% Cost to Income 28.7% 30.4% 30.1% 23.5% 31.8% Total Debt to Equity 957% 703% 570% 571% 599% Total Loan to Deposit 254% 291% 365% 358% 330% Income structure Interest income 69.9% 81.7% 84.2% 88.1% 87.5% Fee and commission income 13.2% 8.5% 7.4% 8.3% 7.6% Gains less losses on trade securities 8.7% -0.7% 0.7% -1.8% 0.3% Gains less losses on foreign currency operations 6.4% 9.0% 5.8% 2.6% 1.5% Share of income of associates 1.2% 1.0% 1.1% 2.3% 1.4% Income (expense) from insurance operations -0.1% 0.3% 0.9% 0.3% 0.3% Other income 0.5% 0.1% 0.0% 0.2% 1.3% Source: Bank Data as of June 30, 2008 Page 18

19 BTA Bank remains a core of financial group Breakdown of group s assets as of June 30, 2008 Temirbank 9.5% InEximBank 0.6% TuranAlem Securities 1.7% BTA Bank 84.2% BTA Ipoteka 2.6% Pension Fund BTA Kazakhstan 0.2% BTA Insurance Group 1.2% Source: Bank Data as of June, 2008 Page 19

20 Higher quality and lower risk profile of Non Kazakh assets 3,500 Geographical breakdown of assets BTA Group s assets have grown almost twofold since ,000 2,500 1,059 33% 1,306 40% The share of assets outside of Kazakhstan increased from 33% in 2006 to 40% in H12008 which are positive fact allowing to maintain higher quality of portfolio comparing to its peers 2,000 1,500 1, % 1,887 67% 1,941 1,360 67% H % Assets in Kazakhstan Assets outside of Kazakhstan Source: Consolidated data as of July, 2008 Page 20

21 Solid Fundamental Platform Capital Adequacy Ratio Net Profit and RoAE $, bln H2008 % $, mln H2008 % Total Capital CAR, % Tier 1 Capital, % Net Profit RoAE Source: Bank Data as of June, 2008 Page 21

22 Strong funding potential on domestic market BTA Deposit Dynamic Loan to Deposit Ratio 7,000 6,000 5,000 4,000 3,000 2,000 1, ,854 3,636 3,093 2,949 2,422 2,331 2,556 1, Retail Deposits Corporate deposits Loans to deposits ratio 90% growth in retail deposits in 1H2008 in Kazakhstan attributable to BTA Page 22

23 Diversified loan portfolio Housing construction 14,0% Loan portfolio breakdown Chemical industry 2,1% Retail trade 3,0% Transport 0,9% Communications 0,9% Food industry 1,6% Mining 1,2% Agriculture 5,1% Other 5,9% Consumer loans 9,9% % Provisioning ratios 6, H2008 Provisions/Gross Loans NPL ratio Mortgage loans 9,5% Exposure to related parties as of H12008 Real estate operations 15,9% Oil&Gas 6,5% Road and industrial buildings development 8,6% Wholesale trade 14,8% bln, KZT H2008 Loan to related parties Related parties lending concentration 1.7 % The following parties are recognized as related: any officer or director of the bank, the general manager or chief accountant of any of the bank s branches, his or her spouse and next of kin; an individual or legal entity that has a major interest in the bank, or an officer of such legal entity, his or her spouse and next of kin; a legal entity in which a person specified in sub-paragraphs a) and b) has a major interest; a legal entity in which the bank has a major interest, an officer of such legal entity, his or her spouse or next of kin; an affiliated party of the bank. Page 23

24 CONTACTS

25 Key Contacts Mr. George Iosifiyan Member of the Board Tel.: +7 (727) Mr. Sadyr Shaguzhayev Director Loan and Capital Markets and Investor Relations Mr. Aidarbek Khojanazarov Director Islamic Banking & BTA Bank Dubai Almaty Tel. +7 (727) Dubai Mobile: akhojanazarov@bta.kz Ms. Gulnara Galyamova Director Loan and Capital Markets Tel.: +7 (727) Fax: +7 (727) galyamova@bta.kz Mr. Timur Sabyrbayev Managing Director Structured and Trade Finance Global Financial Institutions Tel.: +7 (727) Fax: +7 (727) sabyrbayev@bta.kz Ms. Janelle Utemuratova Director Structured and Trade Finance Tel.: + 7 (727) Fax: +7 (727) ut@bta.kz Page 25