Building strong SME in traditional bank. Basmanov K. Senior VP

Transcription

1 Building strong SME in traditional bank Basmanov K. Senior VP March 2012

2 PSB: general information Business overview 2011* Assets Loans (gross) Deposits Profit 2011 $17,5 bn. $13,2 bn. $10.5 bn. $0.2 bn. Corporate clients Retail clients Branches 287 Employees Ratings: Fitch Long-Term Issuer Default Rating: "BB-"; Short-term: "B"; viability: bb-"; Support: 4; Outlook: Stable Moody s Foreign currency deposits: Ba2/NP Financial Strength Rating: "D Outlook: Stable Ukraine National rankings: Assets 11 (RBC.Ratings) Equity 13 (Interfax) Factoring 1 (National Factors Assn.) Int. financing 6.4% (SWIFT) SME loans portfolio 7** (RBC.Ratings) SME loans granted 4** (RBC.Ratings) Corporate (SME+Corp) loans 8 (RBC.Ratings) Kazakhstan Cyprus India China * Financial data for , bn. USD; 1usd = rur **

3 SME in PSB: key figures SME Indicator Loans, $ mln. (share*) $ 587 $ (7%) + 103% Savings (share), $ mln. $ 532** $ 888 (8%) + 66% Loans disbursed, $ mln./year $ 625 $ % Annual profit, $ mln. $ 3 $ 20 x7 times Active clients / borrowers n/a / Outlets (total***/with SME credit groups) 238/47 256/73 +8%/+55% Staff (front+middle+hq) % * Share in Bank s assets ** for 2009 *** Outlets with current accounts services for companies and entrepreneurs (SME+Corp), without overseas outlets 3

4 SME MILESTONES Network and processes build-up Basic credit products Extensive growth Loans focus Profitable growth Efficiency issues arise (CTI, ROE) 2007 SME team E. Makhota Program approved 1 st loan 34 SME outlets 2 basic products incentives system 47 outlets 7 basic products crisis 08: - tight policy Program didn t stop NPL mgmt. high rates short-term loans softening policy independent risk function SME loans CAGR 26% 2010 rates decrease long-term loans focus cost-based pricing new products: - commercial mortgage - loyalty program % +19% GR 43% vs 19% (market) competitor s portfolio purchase ($177 mln) new incentives system rates increase new products: - loan for refinance - flexible IR - automated overdraft % Launch SME Loans, mln. Usd Loans disbursed, mln. Usd 4

5 SME branch formats Branch type SME format SME staff SME Service model Retail + SME outlet SME Group 2-4 employees 2 credit officers 1 back-office Separate SME Loans module Hub-branch in town Retail + SME + Corp SME Division 4-6 employees: credit officers back-office SME Head 1 relationship manager 2 credit officer 1 back-office + Current accounts (SME+Corp) + Territorial hub-branch Ret. + SME + Corp SME Department 6-14 employees: SME Head 3 relationship managers 5 credit officer 1 risk-officer 1 back-office Cash operations (R+SME+Corp) 5

6 SME: branches & faces Our people and branches SME Credit center staff, Moscow 6

7 KEY SUCCESS FACTORS PSB BEFORE SME (2007) PSB big corporate clients oriented culture (sales, risk-taking model) Launching SME: Adequate risk appetite Experienced SME team Bank-within-bank approach Solid investments big-shots oriented processes SUCCESS good branch network strong brand Running SME Strategy consistency Constant innovation Strong local SME team leaders 7

8 WHY SME? 51 WHY OF SME BUSINESS IS AN IMPERATIVE FOR PSB STRATEGY? SME loans, Russia, bln. usd* х2,3! SME CAGR % Market potential SME share in GDP: 12.4% vs 60% in Europe SME Lending/GDP : 7.1% vs >50% in Europe gross margin, PSB SME Corp, % Price-to-Book Value driver 3.3% 2.4% 2.3% Steadily higher SME margin Assets and Savings diversification Savings stability * Bank of Russia data + PSB forecast 8

9 Supporting SME: PSB activities : National contest for young Entrepreneurs Funds for the young 2011: Sponsoring GSEA (Global Student Entrepreneur Awards) : SME day annual conferences in 21 cities 9

10 Trends and Strategic plans 1. Market challenges 2. Shrinking loan margin 3. PSB strategic targets State-owned banks introduce aggressive SME strategy and push rates down SME Gross margin -4.3% in 3 years bank ROE 11.2% 20-25% Private-owned banks pushed out of corporate loans market to lower segments (SME, Retail) SME Loans $1.2 bn. $3.2 bn. ROE-oriented strategy clients Subsegmentation segments with greater margin non-credit Income focus ROE-oriented approach to clients new segments: microloans new products: non credit products and services packages preapproved loans special products for subsegments segmented / fully specialized branch formats new sales channels (call center, mobile, agent network, partners) Intense cross-selling 10

11 Thank you for your attention Q&A 11