radio vikom

Brief presentation
April, 2014
2
Contents
1.Highlights
2.Ratings & Rankings
3.Shareholders
4.Supervisory Board
5.Management Board
6.Principles & Services
7.Strategy
8.Corporate Clients
9.Financials
10.Assets & Liabilities Structure
11.Corporate Business
12.International Business
13.Cooperation with State Export Credit Agencies of the CIS countries
14.Fund Raising Program
15.International Lending: Syndicated Term Loan Facility
16.Money Market and Capital Market Activity
17.Program of Comprehensive Services for FIs of Russia and CIS
18.International Banking Club
19.Contact persons
3-4
5
6
7
8
9
10
11
12
13
14
15-17
18-19
20
21-24
25
26
27
28
3
Highlights
 Established in 1993. Key focus — financing of the Russian economy
 Among key partner banks of Russian Technologies State Corporation, Transneft, etc.
 In December 2011 Rostec State Corporation became the shareholder of NOVIKOMBANK
 Share of Rostec State Corporation in the authorized capital of NOVIKOMBANK will be
gradually increased from 17% to 51% as decided on the Rostec Supervisory Board
meeting on 07.08.13
 Core customer base — leading enterprises of heavy-machinery, automobile, high-technology
industries
 Among TOP 40 Russian banks by assets
 Assets — USD 5.2bln, Capital – USD 616mln as of January 1, 2014 (in acc. with RAS)
 Asset growth — 30% in 2013
 Long term B2 rating by Moody‘s with a Stable Outlook
 Long term B rating by Fitch with a Positive outlook
 National scale A+ rating by Russian Rating Agency «Expert RA» with a Stable Outlook
 In July 2009 NOVIKOMBANK received a subordinated loan from State Corporation
VNESHECONOMBANK for the total amount of USD 15.5mln for the period till the year 2018
 Current regional network of branches: Rostov-on-Don, Nizhny Novgorod, St. Petersburg, Togliatti.
Additional Offices: Zhukovski, Samara, Tula. Representative office in Kazan.
 IFRS accounts audited by Ernst and Young
 NOVIKOMBANK is the core bank for the Customs Union and the CIS
4
Rostec State Corporation Shareholder and Strategic Partner
Rostec Corporation is an innovative industrial Corporation that participates in the implementation
of state policy on innovative development of the Russian economy. It was created to promote the
development, manufacture and export of high-tech industrial products.
North-west region
Central region
Privolzhsky region
South region
Ural region
Rostec comprises more than 660
enterprises from different
industries:
• automotive manufacturing;
• aircraft manufacturing;
• engine manufacturing;
• metallurgy;
• construction;
• optics;
• composite and other modern
structural materials;
• medical equipment;
• pharmaceuticals;
• industrial biotechnologies;
• radio electronics;
• instrumentation technology;
• information technologies, and
telecommunications;
• etc.
Siberian region
Far East region
5
Ratings & Rankings
International Rating by Fitch
Published in December 2013
Individual credit rating-------------------------B
Outlook---------------------------------- Positive
Short-term foreign currency IDR-------------- B
Long-term local currency IDR------------------B
National Long-term Rating-------------BBB(rus)
International Rating by Moody’s
Confirmed in 2013
Individual credit rating----------------------------B2
Short Term foreign / local-------------------------NP
Financial strength (FSR) --------------------------E+
Outlook----------------------------------------Stable
Rating Agency “Expert RA”
Increase of credit rating in May 2012
Individual credit rating----------------------------A+
High creditworthiness level
Outlook-----------------------------------------Stable
 38th by assets in TOP 100 Russian Banks as of January 1, 2014 (by Interfax)
 30th among Most Reliable Russian Banks as of October 1, 2013 (by Profile Magazine)
 41st in TOP-200 of Most Profitable Russian Banks as of June 1, 2013 (by National Rating Agency)
 NOVIKOMBANK entered the TOP-10 of most dynamically growing Russian banks in terms of asset growth
according to THE BANKER (February 2013). Since 2010 NOVIKOMBANK’s assets have grown almost 3.5 times
NOVIKOMBANK’s Assets and Capital
(USD mln, RAS)
Growth Indicators in 2013 (%)
38%
Banking system
NOVIKOMBANK
18,0%
4 300
Capital
3 100
15%
2 020
241
Loans
5 215
Assets
28%
Assets
YE 2010
304
YE 2011
519
YE 2012
616
YE 2013
6
Shareholders
State related:
 In 2012 subordinated loans in the total amount of USD
154mln were received from Rostec State Corporation
 In 2009 subordinated loan in the amount of USD 15.5mln
(with maturity date in 2018) was received from State
Corporation VNESHECONOMBANK. Only 16 Russian
banks received such loan.
 NOVIKOMBANK is ultimately controlled by the President of
the Bank Mr. Ilya Gubin currently controlling 82.39% of
the Bank’s shares
Mr. Ilya Gubin – President, Member of the Board of Directors
In NOVIKOMBANK since 2001
Born in 1965 in Novokuibushevsk, Kuibushev region;
In 1987 he graduated from Yaroslavl Higher Military Financial School. PhD in Economics;
2005—2009 - Chairman of the Board of Directors of NOVIKOMBANK;
2005—2008 - Vice-President for Finance and Economics, Executive Director for Finance and Economics of
AVTOVAZ Group;
2001—2005 - President, Chairman of the Management Board of NOVIKOMBANK;
1994—2001 - held management positions in SBS-AGRO Bank (Stolichny Bank), International Company for
Finance and Investments, ITERA Corporation
In 2009 - was added to the management personnel pool established under the President’s patronage “The Best
Russian Banker” in 2009.
7
Supervisory Board
Sergey Chemezov
CEO, Rostec State Corporation
Ilya Gubin
CEO, NOVIKOMBANK
Boris Aleshin
General Director in Federal State Unitary Enterprise
CENTRAL AEROHYDRODYNAMIC INSTITUTE named after
professor N.E. Zhukovsky (TsAGI)
Vladimir Artyakov
Deputy General Director, Rostec State Corporation
Igor Zavyalov
Deputy General Director,
Rostec State Corporation
Igor Makarov
CEO, ITERA Oil and Gas Company Ltd
Petr Fradkov
CEO, EXIAR
Julia Karpova
Deputy Chairman, State Corporation Bank for Development
and Foreign Economic Affairs (Vneshekonombank)
8
Management Board
Ilya Gubin
CEO
Tatyana Ryskina
Deputy CEO
Natalia Yudina
Deputy CEO
Elena
Shirinskaya
Deputy CEO
Aleksandr Lapko
Deputy CEO
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NOVIKOMBANK today: Principles & Services


Provides a full range of high-quality reliable banking services to both corporate and
private customers
Focus on tailor-made services, partnership relations maintenance, efficient riskmanagement
Banking Services
For corporate
clients
For financial
institutions
For private clients

Lending

Private banking

Lending

Accounts & Payments

Lending

FX operations

Foreign exchange control

Deposits & Bank cards

Securities operations

Liquidity placements

Accounts & Payments

Banknote business

Trade finance &
Documentary operations

Foreign exchange

Brokerage commodities

Investments

Accounts & Payments

Trade finance &

Service Settlement Center
for Corporation
Documentary operations
10
Expected strengthening of the capital base in 2014
Expected Sources of Capital Growth in 2014
Sources
Conversion of subordinated loans of Rostec State
Corporation into Capital, Tier 1 for the amount of USD 135
mln (1Q 2014)
Issue of subordinated loan for the amount of USD 100mln
(1Q 2014)
Issue of subordinated loan for the amount of USD 60mln
(2Q 2014)
Issue of subordinated Eurobond in the amount of USD
100mln (October, 2014)
Net income in 2014 for the amount of USD 77mln
Expected Dynamics of Assets and
Capital in 2014-2015
Capital,
USD mln
135
100
60
100
77
Expected Capital as of YE2014 - USD 900mln
Strategy: Highlights
 Close strategic partnership with Rostec State Corporation
 Creation of a large specialized bank for Russian Industry
 Creation of a client-targeted regional network of branches
by 2015
 International business expansion, primarily in the CIS.
NOVIKOMBANK is the core bank for the Customs Union and
the CIS.
8000
Assets
7000
Capital
6000
6700
5200
5000
4000
3000
2000
900
616,2
1000
0
1 JAN 2014
1 JAN 2015 (plan)
Capital Trends of NOVIKOMBANK, USD, 000
(in accordance with calculation methods of the Central Bank of
the Russian Federation)
700000
600000
500000
200000
100000
519 216
Tier I Capital
308126
227342
400000
300000
616 252
Tier II Capital
240 787
304 416
137035
111267
129520
167381
1 JAN 2011
1 JAN 2012
291874
308126
1 JAN 2013
1 JAN 2014
0
11
Corporate Clients
JSC “Transneft”
OJSC AVTOVAZ
Technopromexport
VSMPO – AVISMA
Corporation
Russian Technologies
State Corporation
Belorussian Steel Works
JSC Zarubezhneft
TYAZHPROMEXPORT
JSC Ruselectronics
United Aircraft
Corporation
Russian
Helicopters
INTERLEASING
Urals Optical and
Mechanical Plant
12
Financials in accordance with IFRS/RAS
USD'000
АSSETS
Cash and cash equivalents
Deposits with the Central Bank of Russia
Obligatory reserves with the Central Bank of Russia
Placements with banks and other financial institutions
Financial instruments at fair value through profit or loss
Loans to customers
Аvailable-for-sale assets:
Held-to-maturity investments
Investments in associated company
Property and equipment
Other assets
YE 2010
YE 2011
YE 2012
6m 2013
260,561.9
12,153.8
182,047.3
487,648.6
871,404.5
198,022,7
29,833.6
820.3
9,245.6
6,054
529,708
217,441
24,993
285,818
413,12
1,483,765
62 209,50
26,924.6
287.3
9,338
8,322
632,241
65,865
37,455
432,404
210,856
2,407,172
271,757
28,714.6
405
12,817
6,75
369,094
428,122
41,214
396,771
142,964
2,535,552
430,480
25,563
11,395
15,590
Total assets
2,057,792
3,061,927
4,106,437
4,396,745
188.2
2,71
6,395
7,545
152,971.5
330,495.7
405,154
467,667
IFRS Financial Metrics
as of 01.01.2013
1,344,400.8
237,942.1
91,699.8
8,512.1
15,935
4,112
322,959
1,790,568
277,695
128,239
4,294
10,144
-
206,774
2,549,595
337,834
294,973
1,717
6,528.8
933.7
292,451
2,399,557
641,793
288,351
726
12,963
-
Total liabilities
1,855,761.4
2,867,105
3,809,905
4,111,053
ROA – 0.6%
ROE – 8.6%
NIM – 3.7%
NPL – 0.7%
Coverage Ratio
(Provisions/NPLs) – 260%
Profit – USD 20.8mln
EQUITY
Share capital
Share premium
Revaluation reserve for property and equipment
Revaluation reserve for available-for-sale assets
Gains on initial recognition of subordinated loans
Retained earnings
Total equity
104,943.4
2,426.9
4,888
3,442.7
86,33
202,031.1
99,34
2,297.3
4,538
(2,095.1)
90,742
194,822
118,717
43,346.7
6,341
(469)
11,657
116,939
296,532
110,238
40,251
5,888
(5,087)
10,821
123,581
285,692
Total liabilities and equity
2,057,792
3,061,927
4,106,437
4,396,745
LIABILITIES
Financial instruments at fair value through profit or loss
Deposits and balances from banks and other financial
institutions
Amounts payable under repurchase agreements
Current accounts and deposits from customers
Debt securities issued
Subordinated loans
Other borrowed funds
Other liabilities
Deferred tax liability
Financials as of
01.01.2014 (RAS)
Assets – USD 5.2bln
Capital – USD
616.3mln
Loan portfolio – USD
3bln
Profit – USD 42.8mln
CAR – 11.85%
13
Assets and Liabilities Structure (IFRS, as of 01.01.13)
Assets Structure
Equity and Liabilities Structure
8%
6%
7%
7%
10%
14%
48%
Capital
Subordinated Loan
Accounts and Deposits from Retail Customers
Accounts and Deposits from Corporate Customers
Banks
Debt Securities Issued
Other
14
Corporate Business (as of 01.01.2014)
Loans to Corporate Customers (USD, mln)
3013
2500
1634
1226
YE2010
YE2011
YE2012
YE2013
Loan Portfolio Structure
Loan Portfolio Structure by Industry
15
International Business
Cooperation with Financial Institutions
16
International Business
Volgo
-Diesel Mamins
LC with
post-financing
10mln USD
BNP Paribas,
Commerzbank AG,
VTB Bank Shanghai,
Deutsche Bank AG,
BHF-Bank
Beneficiaries from
France, China,
Germany
Oil Company
Trade Related Loan
10.5mln USD
Surgutneftegas,
Russia
SKAT, Russia
LC with
post-financing
2.53 mln EUR
Commerzbank AG,
Deutsche Bank AG,
BHF-Bank
NACCO Materials,
Scotland
Interleasing Ltd.,
Russia
Medicus-Centre Ltd,
Kazakhstan
LC with ECA
LC with PF
8.2 mln EUR
17.7mln RUB
Commerzbank AG
Keller HCW GmBH,
Germany
Ravis LLC
VSP - Leasing
LC
Loan Facility
With ECA
0.3 mln USD
9.1 mln USD
Commerzbank AG,
Germany
Oberbank,
Austria
Wt Specialty
Ingredients Sdn,
Malaisia
Ingenia GmbH,
Austria
NOVIKOMBANK
OOO Medikal-Onko,
Russia
OJSC«Avtovaz»
LC
1.3 mln USD
OOO
VLADIMIRSKI LPK
Kominvest-AKMT
LC with
post-financing
With Sace cover
SBLC
0.6mln USD
UBI Banca
Unicredit Bank AG,
Germany
BONGIOANNI S.R.L.
Italy
Doppstadt Cable,
Germany
Trade related Loans
Bobruisk Plant of
Tractor Parts
and Units
105, 6 mln USD
Pre-export financing
2 transactions
Trade Related Loan
39mln USD
TNK-BP, Russia
Lukoil,Russia
OJSC
‘BYELORUSSIAN
STEEL WORKS’
LC
Various companies
In Ukraine
Samsung C&T
Corporation,
Korea
0.34 mln USD
Belorussian Oil
Company
2 mln USD
Republic of Belarus
7,5 mln USD
Commerzbank AG
HOFFLAND
ENVIRONMENTAL.
INC
17
International Business
JSC «TEHSTROI»
LC with ECA
2.2 mln USD
Commerzbank
Germany
Siegfried Schumaher
GmbH, Germany
Vitebskiy
Combinat
Khleboproduktov,
Belarus
2 LC
0,54 mln EUR
Novikombank
TEKHNEX,
Russia
Elektrom LLC, Russia
LC with PF
Jsc mozyr oil
Refinery
Belarus
Motor Sich JSC,
Ukraine
5.45 mln USD
LC
LC
VTB Shanghai
Commerzbank AG
30 mln EUR
10 mln USD
JSC TNK-BP,
Russia
MRK-Engineering LTD
Russia
Beneficiaries
from China
Tavricheskiy
Bank
10 LC with
post-financing
1,5 mln USD
Commerzbank ,
Deutsche Bank,
BCP
Beneficiaries from
France, Germany,
Switzerland, China
RUP "BPHO",
Belarus
LC
0.4 mln USD
Novikombank
OJSC “Teksimport”
Tajikistan
CJSC Belorussian
Oil Company
Vinogradovskyi
Raiagrotekhservis
JSC Belshina,
Belarus
LC
LC
LC
20 mln USD
40 mln USD
RUE Production
Association
“Belorusneft”,
Belorus
ZAPADNY MOST LLC
Thai Hua Rubber
Pubilc Company
Limited
Tailand
Aston Martin
Moscow Ltd.,
Russia
CHUP ASB
Lizing,
Belarus
RUP "BPHO",
Belarus
LC with
post-financing
LC with
post-financing
1.3 mln EUR
0,8 mln USD
8 mln EUR
LC with
post-financing
OOO”Dar-Dar”,
Tajikistan
LC
0.28 mln USD
5.8 mln USD
Commerzbank,
Germany
BCP,
Switzerland
Novikombank,
Moscow
Aston Martin
Lagonda Ltd.,
UK
Zeppelin
Int. AG,
Switzerland
OJSC “Teksimport”
Tajikistan
Commerzbank
Germany
China Meheco
Corporation
China
18
NOVIKOMBANK’s cooperation with EXIAR and other
State Export Credit Agencies of the CIS
EXIAR: Russian Agency for Export Credit and Investment Insurance
Activities:
 Insurance of the export credits against business (commercial) and
political risks for Russian exporters
 Insurance of Russian investments against political risks outside the
Russian Federation
NOVIKOMBANK is the LEADING BANK in terms of cooperation volumes with EXIAR in
2013.
BELEXIMGARANT, KazExportGarant and UZBEKINVEST: CIS Export Insurance Agencies
 Financing of import of products and equipment from the CIS countries;
 The instrument used is a letter of credit, confirmed/executed by
NOVIKOMBANK in favour of products exporters of Belarus, Kazakhstan
and Uzbekistan. The risks are insured by the export-import insurance
agency from the exporter’s country;
 Financing tenor – up to 2 years;
 Financing tenor up to 5 years is possible when products are imported
from Kazakhstan;
UZBEKINVEST
 Ability of funds raising for the term up to 2 years above the lines
approved for your fine Bank. Consideration of further deals refinancing
on annual basis is possible. Minimal financing tenor is not limited.
19
NOVIKOMBANK’s cooperation with EXIAR and other
State Export Credit Agencies of the CIS
USD 390 thnd
USD 62,7 mln
RUB 74,5 mln
Loan to importer
LLC “Sangi Dare”
Loan to importer
BMZ-Belorussian Steel Works
Loan to importer
BMZ-Belorussian Steel Works
Republic of Tajikistan
Republic of Belarus
Republic of Belarus
ENTECHMACH RPC LLC
EUR 1,6 mln
JSC “MAGADAN
MECHANICAL PLANT”
Commercial vehicles
GAZ GROUP
USD 430 thnd
USD 314 thnd
Loan to importer
JSC DNIPROAZOT
Loan to importer
Orien-Leasing LLC
Loan to importer
AIR BUSINESS CONSULTING
Ukraine
Republic of Tajikistan
Republic of Uzbekistan
20
NOVIKOMBANK’s cooperation with EXIAR and other
State Export Credit Agencies of the CIS
Bobruisk Plant of Tractor
Parts and Units
USD 2 mln
Pre-export financing
Republic of Belarus
Moscow design bureau Compas
RUB 2 bln
Financing of reconstruction of
naval aviation with groun
testing training facility
The project risks are covered by
EXIAR
AVTOVAZ
EUR 3 mln
Loan to importer
BOGDAN-AUTO
Ukraine
21
Fund Raising Program
Internal market
 RUB Bonds of NOVIKOMBANK are included in the Lombard List of the Central Bank of
the Russian Federation
April 2013: RUB Bond Issue
October 2012: RUB Bond Issue
Borrower
NOVIKOMBANK
Borrower
NOVIKOMBANK
Amount
Tenor
Put option
Coupon rate
RUB 3bln
3 years
1 year
9.85%
Amount
Tenor
Put option
Coupon rate
RUB 2bln
3 years
1 year
10.25%
Arrangers
Gazprombank
Sberbank KIB
Arrangers
Promsvyazbank
VTB Capital
Rosbank
November 2010: Debut RUB Bond Issue
July 2011: RUB Bond Issue
Borrower
NOVIKOMBANK
Borrower
NOVIKOMBANK
Amount
Tenor
Put option
Coupon rate
RUB 2bln
3 years
1.5 year
9.00%
Amount
Tenor
Put option
Coupon rate
RUB 3bln
3 years
2 years
8.50%
Arrangers
Promsvyazbank
MDM Bank
Arrangers
Promsvyazbank
Troika Dialog
22
NOVIKOMBANK - Leading Arranger
of Syndicated Term Loan Facilities for the CIS Banks
 Provision of full range of syndicated loan arrangement services for the CIS banks;
 Participation as Investor in loans (both club and public) granted to the Russian and the CIS banks.
Since 2010, NOVIKOMBANK has arranged syndicated loans for the Russian and CIS banks for the total
amount of more than USD 800mln.
In 2013 NOVIKOMBANK acted as MLA for 10 syndications and as MLA, Bookrunner and Agent for 5
syndications.
On Investor’s side in 2013 -2014:
23
NOVIKOMBANK - Leading Arranger
of Syndicated Term Loan Facilities for the CIS Banks
On Investor’s side in 2013:
24
NOVIKOMBANK - Leading Arranger
of Syndicated Term Loan Facilities for the CIS Banks
On Investor’s side in 2012:
 Participation in syndications on
secondary market:
25
NOVIKOMBANK - Leading Arranger
of Syndicated Term Loan Facilities for the CIS Banks
On Investor’s side in 2010-2011:
 MLA in syndicated loans granted to
Belarusbank, Belinvestbank and
Paritet Bank, Republic of Belarus
As the Borrower:
 Syndicated loan in 2007
Borrower
Amount
Tenor
Lender
NOVIKOMBANK
USD 42mln
6 months
Barclays
26
Money Market and Capital Market Activity
Securities portfolio structure
(as of 01.01.14)
0,99%
17,95%
Corporate bonds
Proprietary securities portfolio
(January 1, 2014) - USD 533mln
52,33%
 Fixed income — 99%
incl. securities from Lombard list — 80%
Eurobonds
28,73%
 Equities — 1%
Partners of NOVIKOMBANK
Deutsche Bank
ICAP
Tradition
Barclays
Merrill Lynch
Commerzbank
RBI
Citi
Uralsib
Nomos Bank
Zenit
Loko-bank
State bonds
Avangard
Metallinvestbank
Alfa-Bank
MDM Bank
TransCreditBank
Vnesheconombank
Credit Suisse AG
Unicreditbank
Otkrytie
Gazprombank
Promsvyazbank
Vneshprombank
Equities
27
Program of Comprehensive Services for
Financial Institutions “Bank for Banks”
 Creation of infrastructure for supporting clients’ interests in key regions;
 Creation of single settlements center for the banks from the CIS countries;
NOVIKOMBANK is an active player on financial markets of Russia and CIS recognized on the
interbank market: the volume of lines established in favour of NOVIKOMBANK by CIS banks
exceeds USD 790mln. The number of partner banks exceeds 416 (as of 01.01.2014).
Products for partner banks:
 Settlements
 Money market products
 Banknote business
 Organization of export-import operations
financing through documentary instruments
for clients of partner banks
 Organization of syndicated loans
 Full range of services on capital markets of
Russia
 International Banking Club
Geography of interests on interbank
market in the CIS and Baltic countries
Uzbekistan 1% Lithuania 1%
Kyrgyzstan 8%
Belarus 22%
Ukraine 18%
Azerbaijan 3%
Armenia 3%
Kazakhstan
11%
Tadzhikistan
16%
Moldova 11%
Latvia 6%
NOVIKOMBANK opened TMT, USD and EUR
accounts with the State Bank for Foreign
Economic Affairs of Turkmenistan
28
International Banking Club
«POINTS OF GROWTH»
New Project of
International Banking Club
initiated by NOVIKOMBANK
Within the framework of the project International Banking Club in partnership with the
founders of the Club as well as with such leading banking organizations as National Foreign
Exchange Association, Russian Chamber of Commerce and Industry, International Moscow
Financial and Banking school and etc. organizes conferences and seminars aimed at
helping Russian banks successfully conduct business in current economic conditions.
For more information please use the following link:
www.interbankclub.com
29
Contact Information
Elena Shirinskaya
Deputy CEO, Ph.D.
E-mail: [email protected]
Tel.: +7 495 974-71-87
Mob.: +7 985 765-31-68
Stella Danielova
Head of International Business Division
E-mail: [email protected]
Tel.: +7 495 974-71-87, ext. 692
Mob.: + 7 916 800-15-11
Elena Garaykina
Head of International Trade and Structured Finance Department
E-mail: [email protected]
Tel.: +7 495 974-71-87 ext. 634
Mob.: +7 985 133-28-74
Contact Information
JSCB NOVIKOMBANK
4/4 bld. 2, Yakimanskaya emb., Moscow, 119180, Russia
Tel.:+7 (495) 974-71-87
Fax:+7 (499) 246-92-02
www.novikom.ru