3-year Strategy. March 2018

Transcription

1 3-year Strategy

2 Major Shareholder In 2017 Bank ZENIT successfully completed a RUB 14 billion capital increase, bringing the total to RUB billion. TATNEFT Group As a result of the new share issue, TATNEFT Group s holding in the Bank s capital increased to 71.9% PJSC TATNEFT as a shareholder has plans to actively develop the business of ZENIT Banking Group TATNEFT Group is a vertically integrated oil production, refining and petrochemicals holding. TATNEFT Group's main production facilities are located in the Republic of Tatarstan. PJSC TATNEFT is one of the largest public companies in Russia with current market capitalization at approximately RUB 1.4 trillion. A TOP 10 world s largest oil companies by return on investment for shareholders (based on data of Boston Consulting Group) A TOP 10 world s leading company and the absolute leader in Europe and the Middle East by number of innovations in the field of oil and natural gas prospecting and production. TATNEFT Group produces almost 30 mln tons of crude oil every year. 2

3 Credit Ratings PJSC TATNEFT s rating from Fitch Ratings: Long-term and Short-term issuer default rating (IDR) at BBB- and F3, respectively, with a stable outlook on the long-term rating. PJSC TATNEFT s rating from RAEX (Expert RА): a non-financial company creditworthiness rating at ruaaa with a stable outlook. PJSC Bank ZENIT s rating from Fitch Ratings: ВВ with a stable outlook. PJSC Bank ZENIT s credit rating from RAEX (Expert RA): rua- with a stable outlook. PJSC TATNEFT s credit rating from Moody s: Baa3 with a positive outlook. PJSC Bank ZENIT s rating from Moody s: Вa3 with a positive outlook. 3

4 ZENIT Banking Group Today years in the market active corporate client groups cities where it has a presence thous. active retail clients Point of sales thous. active SME clients FTEs place by equity (RUB 43 billion) 4

5 Strategy: targets and priorities The Strategy has a goal to implement the key initiatives enabling the Bank to add value, grow business and client base and ensure profitability while improving the client-oriented approach. CORPORATE BUSINESS SME RETAIL BUSINESS To ensure a business ecosystem with TATNEFT Group To grow the online guarantees framework (TOP 5 as a target) Ecosystem for military personnel Digitalisation To syndicate with VEB, to ensure a business ecosystem with buying platforms To promote transactions with EXIAR insurance To develop the factoring business (TOP 5 as a target) To expand the client base and increase the number of products per customer 1 million active clients At least 3 products per client To adjust the product line for target segments PRIVATE BANKING INVESTMENT BUSINESS To expand financial products line To develop asset management and brokerage services Focus on fee and commission based products To increase the number of products per family A TOP 10 arranger of bond issues based on Cbonds ranking 5

6 Strategy: main goals and objectives To build a universal Bank with a flexible approach to creating assets To integrate the Group s banks and achieve synergies from this integration To implement a management accounting framework, performance indicators and motivation system To build a reliable risk management framework based on the best practices in international to support the aggressive plans of controlled business growth To develop a product offering adjusted for risk and operating model efficiency To create an advanced and efficient IT platform To create an efficient segment-oriented operating model To create a business development model to factor in the real risks allocated to capital 6

7 Financial targets of ZENIT Banking Group s strategy* Net profit RUB 5.6 bln 1 4 ROE at least 15% Net assets RUB 300 bln + 2 Financial targets for CIR not more than 50% Customer accounts RUB 250 bln 3 6 COR not more than 1.3% Net assets, mln rubles Customer accounts, mln rubles ROE and CIR ROE Cost-to-income % % 47.8 % % * in accordance with RAS

8 Strategy for the main business areas Corporate business Retail business SME Modified client base Optimal balance among profitability, cost of risk and direct expenses to achieve a sustainable income goal ROE* = 9.6%, CIR* = 85%, COR* = 3.5% A new scale and scope of business Retail customer-oriented network of the Bank Stable retail accounts base and balanced approach to risk-taking Low-risk lending and commission services, development of digital products ROE = 17.8%, CIR = 85%, COR = 1.5% Client base expansion Creation of a settlement Bank for loyal clients Standardized technologically advanced products with target profitability and risk levels Digital channels set-up Niche products, including strategically important business areas: factoring, online bank guarantees, leasing ROE = 21%, CIR = 45%, COR = 2.5% Investment Private To grow fee and commission income An optimal balance between profitability and cost of risk ROE = 22.9%, CIR = 25%, COR = 0% Stable client base and accounts base Fee and commission income from investment products CIR = 30% 8 * COR, CIR, ROE in accordance with the management accounts of all businesses under RAS based on 2020 results

9 ZENIT Banking Group s financial indicators at a 3-year horizon* Net profit Net profit by business area (391) 569 Private Banking Investment SME (3 952) (4 594) Corporate Retail ROE and CIR 158.8% ROE by business area, % 65.1% 47.8% Investment SME 21.0% 22.9% % 2.0% 4.3% 17.9% Corporate Retail 9.6% 17.8% ROE Cost-To-Income 9 * data under RAS

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