December 2008 2 VAB Bank. Overview
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1 December 2008
Transcript of December 2008 2 VAB Bank. Overview
1December 2008
2
VAB Bank. Overview
Short name VAB Bank (formerly known as VABank)
Established 2nd July 1992, Kyiv
Member of VAB Group
Auditor Ernst&Young
Ratings
□ Moody’s Local Currency Deposits: B2Foreign Currency Deposits:
B2Outlook: Stable
□ Fitch Foreign Currency:Long-Term IDR: B–
Short-Term IDR: BOutlook: Negative
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Kardan N.V.
90.4%
60%
48,9%
40%
Shareholders
MAKSIMOV FAMILY
48,9%
Kardan Financial Services B.V.
11%
TBIH Financial Services Group N.V.
80%
50/50 strategic partnership between international institutional investor and local business
Kardan N.V. is an international investment company based in the Netherlands with total assets of €5 bn as of 1H2008 and listed on Euronext Amsterdam and the Tel-Aviv Stock Exchange
In December 2007 Israel Discount Bank purchased 11% of Kardan Financial Services B.V. Israel Discount Bank agreed to provide KFS with EUR 225 million of credit facilities.
TBIF Financial Services is a subsidiary of Kardan N.V. focusing on retail and SME banking, consumer finance, leasing, mortgages and asset management.
Vienna Insurance Group (Wiener Stadtische) is the #1 insurer in Austria and #3 foreign insurer in the CEE region as of YE2007
Currently operating in 20 countries, incl. Ukraine where it is a partner in VAB insurance and pension business through TBIH Financial Services Group N.V.
Mr. Sergey Maksimov is a local entrepreneur and the main shareholder of the Bank since 1995 with excellent local market knowledge and proven track record. His other businesses include port management, pharmaceuticals development and distribution, retail trading, insurance and construction.
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VAB Group
VAB Bank. Comprehensive banking coverage (est. 1992)
VAB Express.Provision of consumer loans (est. 2006)
VAB Leasing.Provision of leasing services (est. 2005)
VAB Pension.Administration of private pension funds (est. 2004)
VAB Insurance.Provision of insurance services (est.2002)
VAB Life.Provision of life insurance services (est. 2004)
VAB Asset Management.Provision of asset management services (est. 2006)
VAB Capital.Professional activities in the capital market, including brokerage, dealing, underwriting and portfolio management services (est. 2006)
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VAB Bank. Strategic Goals
To develop VAB as a full-service bank with strong franchise in retail and SME
To have strong distribution:
□ to strengthen front office (sales)
□ to grow the network to 250 branches and outlets by YE2010
□ to diversify sales channels
To continue to develop both the Bank's human resources and information technology systems
| in US$ millions | 2005 2006 2007 2008F
Assets 453 731 1 211 1 540
Loans to customers 244 515 911 1 240
Capital 64 101 142 200
Net profit 2.8 2.1 1.8 5
Key Financial Targets
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Strong Management TeamPetr BaronChief Executive Officer
Desmond O’MaonaighChief Financial Officer
Tsvetan PetrininHead of Retail Business
Lukas Tursa, Head of Treasury, FI and Investment Banking
VAB, CEO (2007-2008)
VABank, First Vice-President , (2006-07)
VABank, Supervisory Board member (2003-2008)
International Private Bank, Macedonia, (2002-2004)
Inkahrana, Russia,
First OVK Banking Group, Russia
BSc in Investment and Financial Risk Management from CASS Business School, London
OTP Bank, Kiev, CFO (2007-2008)
International Finance Corporation (2003-2007)
Ukraine International Airlines (2000 - 2003)
PricewaterhouseCoopers (1996-2000)
BSc in Economics
MSc in Business Studies, Finance
Ocean Bank, Moscow, Deputy Chairman of the Management Board responsible for retail and branch network (2007)
First Investment Bank, Sofia, Bulgaria, Head of Retail Department (2003-2007)
MSc in International Economic Relations
Ministry of Finance of Lithuania, (2004-2006), Deputy Head and Head of State Treasury
Ministry of Finance of Lithuania, (1998-2004), Head of Middle Office
BSc in Banking and Int. Finance from CASS Business School, London
MSc in Economics
Yuriy Klimov
Head of Corporate Business
Elena Domuz
Head of Risk Management
Nataliya Shelko Chief Operations Officer
Alfa-Bank, Moscow, Senior Vice-President, Head of Settlements, Head of Products Development, Corporate Clients Relations Director (2003-2008)
ABN AMRO, Moscow, Vice-President, Corporate Settlements Office (2002-2003)
Siemens Financial Services, Moscow (2000-2002)
MSc in Economics
Swebank, Ukraine, Head of Risk Management Dept (2005-2007)
Ukrgasbank, Ukraine, Head of Credit Risk Management Division (2005)
First Ukrainian International Bank, Ukraine (2000-2005)
MSc in Finance and Economy, Accounting and Audit, Law
Raiffeisenbank Aval, Head of Operations (2006-2008)
OTP Bank, Head of Operations (2003-2006)
First Ukrainian International Bank, (2001-2003)
Ukraine Bank (1993-2001)
Msc in Economics
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Sal
es P
oin
ts
| Number |Branches and ATMs
Distribution Network
Network coverage in all regional centers of Ukraine
Number of sales points will remain unchanged for 2008, several of them will be relocated to improve performance
Rebranding and new sales orientated concept introduced in 2006 ensuring competitive benefits for VAB Bank
□Facilitates cross-selling
□Cost and capital effectiveness
□Higher sales per square meter
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Gro
wth
Dyn
amic
s
| in US$ millions |Assets, YE
Assets and Capital Dynamics
Total assets growth is constrained by the challenging market environment
Profit for the 3Q2008 amounted to USD 3.1 million (USD 1.8 million for the entire last year)
Total capital of the Bank increased by USD 49 million and reached USD 191 million at the end of 3Q2008
Total Capital Adequacy Ratio strengthened to 18.4% as of 3Q2008 (15% as of YE2007)
The shareholders are committed to maintain CAR at the level of minimum 12%
Gro
wth
Dyn
amic
s
| in US$ millions |Total Capital, YE
+40%YoY +34% +41%YoY +66%YoY
+1% +27%YoY
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SME 56%
To
tal L
oan
Po
rtfo
lio
| 3Q2008 |Breakdown by Customer Segments
Loan Portfolio
+77%YoY +13% +36%YoY
Gro
wth
Dyn
amic
s
| in US$ millions |Loan Portfolio, YE
Lending policy: conservative risk assessment, fast decision making
VAB Bank’s share in the lending market stood at 1% as of 3Q2008
Over 90% of the loan portfolio is collateralized
ANNUAL SALESLargest >$100mLarge $50-100mMedium $5-50mSmall $1-5mRetail SMEs <$1mio
Co
rpo
rate
Lo
an P
ort
folio
| 1H2008 |Corporate Portfolio by Industries
10
Loan Portfolio
+61%YoY
Co
rpo
rate
Cu
sto
mer
s
| in US$ millions |Corporate Loans, YE
+7%YoY +27%YoY
Pri
vate
Cu
sto
mer
s
| 3Q2008 |Retail Portfolio by Products
Pri
vate
Cu
sto
mer
s
| in US$ millions |Loans to individuals, YE
+146%YoY +31% +48%YoY
Concentration of the loan portfolio is further
decreasing with top-10 Borrowers reaching 13.8% as
of 3Q2008, down from 16.2% as of YE2007 and
22.9% as of YE2005
The Bank issued 553 thousand payment cards as of
3Q2008
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FundingT
ota
l Fu
nd
ing
| percent |Funding Composition The main funding sources for 2008 are local bonds
and parent funding
Deposits provide a stable source of funding on the background of the international market squeeze
VAB Bank has a strategic commitment to further diversify its funding base and reduce its cost of funding
No material foreign debt repayments due before 2010
Fu
nd
ing
| in US$ millions |Customer Deposit Portfolio
492
738721
924
+25%YoY +50%YoY
2008 Gross Borrowing USD millions
Domestic Bonds 25
Funding from TBIF 55 -2%
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Amount: US$30,000,000
Tenor: 7 years
Facility Date: Dec 2006
Lenders
Bila
tera
l Lo
an
Funding. Capital Market Loans
Amount: US$51,000,000
Tenor: 1year
Facility Date: Apr 2007
Mandated Lead Arrangers
Syn
dic
ated
Lo
an
Amount: US$15,000,000
Tenor: 14 months
Facility Date: Feb 2006
Mandated Lead Arranger
Syn
dic
ated
Lo
an
Amount: US$10,000,000
Tenor: 11 months
Facility Date: Jun 2006
Mandated Lead Arranger
Syn
dic
ated
Lo
an Amount: US$20,000,000
Tenor: 10 years
Margin: LIBOR + 4.5%
Facility Date: Oct 2007
Lender
Su
bo
rdin
ated
Lo
an
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Amount: US$125,000,000
Tenor: 3 years ▲
Coupon: 10.125%
Format: Reg S
Issue Date: June 2007
Lead Managers
Eu
rob
on
ds
Issu
e
“…Bookrunners’ comment: …In all the time I’ve been doing emerging markets bonds, I’ve not seen a book like this for a credit of this type…”
“…Reactions had been very positive, with investors impressed by both strong management team and the bank’s strategy…”
“…Spencer Maclean (Deutsche Bank) stressed the high participation rate of investment grade and crossover accounts in the book, in addition to the traditional high-yield and dedicated EM funds...”
Funding. Eurobonds Debut Issue
Inve
sto
r B
ase
| percent |Breakdown by Geography
Inve
sto
r B
ase
| percent |Breakdown by Investor Type
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Current Ratings Rating Outlook
Long-Term Issuer Default Rating B- Negative
Short-Term Issuer Default Rating B
Individual D/E
Support 5
National Long-Term BBB- (ukr) Negative
VAB Bank cooperates with Moody’s and Fitch since 2003 and 2006 respectively
In June 2008 Moody's confirmed the bank’s B2 long-term local and foreign currency deposit and debt ratings and assigned the stable outlook
In June 2008 Fitch affirmed VAB Bank’s foreign currency long-term issuer default rating and outlook at B- (stable). In November 2008 Fitch changed the outlook from “stable” to “negative” in light of the sharp depreciation of the Ukraine’s national currency
Current Ratings Rating Outlook
Bank Deposit Foreign Currency B2/NP Stable
Bank Deposit Local Currency B2/NP Stable
BFSR E+ Stable
National A1.ua
Credit Ratings
“…The bank’s further franchise expansion, accompanied by declining business concentrations, may put upward pressure on the ratings. Funding base diversification and a strengthening of liquidity should be also positive for the bank’s financial standing…“
“…The rating derives from the bank’s current market standing, relatively advanced for Ukrainian bank corporate governance and risk management practices and the expected strengthening of the
bank’s retail franchise following the execution of the strategy, supported by expansion of the branch network together with
enhancing the infrastructure and IT systems...”
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Strong, supportive, long-term strategic investors with sufficient financial resources and experience to ensure success
Top quality senior management team with extensive international experience
Strong branch network coverage
Unique customer service approach and well-developed brand. Brand awareness increased from 18% in 2006 to 47% in January 2008
High capitalization level with 18.4% Basel Capital Adequacy Ratio as of 3Q2008
International standard risk management systems with proven capability to manage rapid growth
High standards of corporate governance and transparency: ranking the 3rd among the most transparent banks in Ukraine according to Standard & Poor's survey in Nov 2008 staying among the leaders for the third consecutive year
Summary
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5 Zoolohichna Street, Kyiv 04119, Ukraine
Tel.: (38 044) 481-33-48
Fax: (38 044) 481-33-49
e-mail: [email protected]
Telex: 631048 VABNK UX
S.W.I.F.T. BIC: VABA UA UK
REUTERS: VABK
Contact Details
Mr. Lukas Tursa Deputy Chairman of the Management Board
Head of Treasury and Financial InstitutionsTel.: +38 044 492 39 80e-mail: [email protected]
Financial Institutions & International Borrowings
Mr. Viktor DumaHead of Financial Institutions & International FinancingTel.: +38 044 481 33 48e-mail: [email protected]
Ms. Natalia BastunCorrespondent BankingTel.: +38 044 481 33 47e-mail: [email protected]
FX & Money Market
Ms. Natalia ShishatskaHead of Money & Forex MarketsTel.: +38 044 490 06 36e-mail: [email protected]
Mr. Oleksiy TihiyHead of DealingTel.: +38 044 481 33 53e-mail: [email protected]
Documentary Business
Ms. Tetyana Synitsyna
Head of Documentary BusinessTel.: +38 044 490 06 34e-mail: [email protected]
Ms. Iryna DrygaloDeputy Head of Documentary BusinessTel.: +38 044 490 06 34e-mail: [email protected]
Investment BankingMs. Dorina ZilbermintsInvestment BusinessTel: +38 044 481 33 55E-mail: [email protected]
Please see www.vabbank.com.ua for more details about VAB
12/04/23 06:00
