Belorussian- Russian Belgazprombank Joint Stock...14,9%BelVEB 16,8%Bank VTB 17,9% 18,7% 0% 10% 20%...

Belorussian- Russian

Belgazprombank

Joint Stock

Au

gust

20

16

Macroeconomics International Business Bank overview Performance

Authorized Bank of OAO Gazprom in the Republic of Belarus

BELARUS OVERVIEW

2 Macroeconomics Performance

Moody’s

Standard&poor’s

FitchRatings

Caa1 Stable

B- Stable 1

24

25

41

44

51

83

Singapore

Georgia

Poland

Kazakhstan

Belarus

Russia

Ukraine

EASE OF DOING BUSINESS (189 COUNTRIES)

Source: WB-IFC Doing Business Report, 2016

1

36

50

50

56

76

81

Norway

Poland

Belarus

Russia

Kazakhstan

Georgia

Ukraine

HUMAN DEVELOPMENT INDEX (188 COUNTRIES)

Source: Human Development Report 2015 Published for the United Nations

1

36

44

45

58

78

79

Korea (Rep.)

Belarus

Poland

Russia

Kazakhstan

Georgia

Ukraine

ICT DEVELOPMENT INDEX (167 COUNTRIES)

Source: International Telecommunication Union, 2015.

INTERNATIONAL RANKING RATINGS

MAIN INDUSTRIES

B- Stable

Mechanical engineering

(production of trucks, buses, quarry

lorries, tractors, different types of

harvesters, agricultural machines, etc.)

Chemical and petrochemical

Metallurgical

Fuel-power complex

Agricultural

International Business Bank overview Performance

Area 207 600 sq km

Population 9,5 mln

Life expectancy 73,9 years

Official language Belarusian and Russian

Currency Belarusian Ruble (BYN)

GDP 01.01.16 54,9 bn USD

GDP per capita 01.01.2016 USD $5,8 th

Inflation rate 01.01.2016 12%

External Public debt to GDP 2015 69,6%

Source: National Bank of the Republic of Belarus, National Statistical Committee

Manufacturing

19,7%

Wholesale & Retail

Sale

12,1%

Net taxes on

products

15,1%

Construction 6,0%

Transport &

Communications

6,1%

Agriculture, Fishery,

Forestry 3,4%

Other 37,5%

GDP STRUCTURE AS OF 01.08.2016

Source: National Bank of the Republic of Belarus,

National Statistical Committee of Belarus

3,5 6,6

10,6

15,3 18,6

22,0 26,4

-4,3% -4,0%

-3,6%

-3,0% -2,8%

-2,5% -2,7%

-6%

-5%

-4%

-3%

-2%

-1%

0% 0

4

8

12

16

20

24

28

32

36

40

January February March April May June July

GD

P g

row

th, %

GD

P. b

n U

SD

GDP in 2016

GDP GDP growth

GROSS DOMESTIC PRODUCT

3 Macroeconomics Performance International Business Bank overview Performance

STRUCTURE OF FOREIGN TRADE IN GOODS

WITH CERTAIN COUNTRIES AS OF 01.07.2016

According to National Statistical Committee of Belarus foreign trade is essentially influenced by foreign

trade transactions with goods (86% of foreign trade turnover as of 01.07.2016)

Source: State Customs Committee of the Republic of Belarus

3 2

62

2 9

76

2 7

15

2 6

62

2 5

90

2 4

87

2 6

90

1 9

61

2 0

50

2 3

39

2 3

72

2 5

08

2 7

74

-2 8

99

-2 7

85

-2 6

08

-2 7

17

-2 7

70

-3 0

18

-2 8

72

-1 8

97

-2 1

08

-2 4

36

-2 4

60

-2 6

11

-2 6

41

-900

-700

-500

-300

-100

100

300

500

700

900

-5

-3

-1

1

3

5

Jun

e 2

01

5

July

20

15

Au

gust

20

15

Sep

tem

ber

20

15

Oct

ob

er 2

01

5

No

vem

ber

20

15

Dec

emb

er 2

01

5

Jan

ua

ry 2

01

6

Feb

rua

ry 2

01

6

Ma

rch

20

16

Ap

ril 2

01

6

Ma

y 2

01

6

Jun

e 2

01

6

FOREIGN TRADE MONTHLY BREAKDOWN, MLN USD

Export Import Balance

FOREIGN TRADE

4 Macroeconomics Performance Bank overview Performance International Business

Source: National Bank of the Republic of Belarus

39 275 40 802 40 552 40 024 38 231 37 935 38 217 38 275 38 617

2 459

4 973 8 801

11 057

2 242 3 747

6 707 7 763

1 444

0%

10%

20%

30%

40%

50%

60%

70%

80%

0

10

20

30

40

50

US

D m

ln

EXTERNAL DEBT: ABSOLUTE & RELATIVE MEASURES

External Debt External Debt Servicing

External Debt, % of GDP Reserve Assets, % of External Debt

4,61 4,62 4,68 4,57 4,63 4,67 4,58 4,18 4,03 4,11 4,19 4,23 4,27 4,31

4,63

0

5 000

10 000

15 000

20 000

25 000

0

2

4

6

8

Exc

ha

nge

Ra

te, B

YR

Inte

rna

tio

na

l res

erve

s, b

n U

SD

INTERNATIONAL RESERVES

International Reserves BYR/$

25 25 25 24 22 22 20 18 20 25 25 25 25 25 25 25 25 25 25 25

2,4

4,1 4,9

5,9 6,5 7,3

7,5 7,8 9,2

10,1 10,7 12,0

1,9

4,8 5,7 6,4

7,0 7,4 7,8

0

20

40

60

80

100

120

140

160

180

200

10

5

0

5

10

15

Ref

ina

nci

ng

rate

, %

CP

I, %

CPI AND REFINANCING RATE IN 2015-2016

Refinancing rate 2016 Refinancing rate 2015 CPI 2015 CPI 2016


BANKING SYSTEM

38,6 43,0 41,8

35,0 33,3

0

10

20

30

40

50

2012 2013 2014 2015 01.08.2016

ASSETS (bn USD)

REGULATORY CAPITAL (bn USD)

&ADEQUACY (%)

5,2 5,6 5,2

4,2 4,1

20,8%

15,5% 17,4%

18,7% 17,1%

0

5

10

15

20

25

0

2

4

6

8

10

12

2012 2013 2014 2015 01.08.2016

Regulatory capital Capital adequacy

0,63 0,72

0,64

0,32

0,20

0,0

0,2

0,4

0,6

0,8

2012 2013 2014 2015 01.08.2016

PROFIT (bn USD)

1,8 1,9 1,7

1,0 1,1

0

0,5

1

1,5

2

2012 2013 2014 2015 01.08.2016

RETURN ON EQUITY (%) RETURN ON ASSETS (%)

12,7 13,8 13,1

8,4 8,7

0

5

10

15

2012 2013 2014 2015 01.08.2016

Source: National Bank of the Republic of Belarus


5

16

4

25

banks Banks with

foreign capital

State-owned

banks Other banks

Source: IFRS statements

* According to NFRS Statements; without IAS29 application

49,66 %

49,66 %

0,18 %

0,49 %

OWNERSHIP STRUCTURE

Belgazprombank, established in 1990, is a privately owned bank

with almost 100 % of its shares owned by the largest and most

reliable Russian holding, i.e. Gazprom Group;

2012 2013 2014 2015

Total Assets (USD mln) 1283 1604 1852 1625

Net Profit (USD mln)* 32,8 11,2 10,4 43,7

Loans to customers

(USD mln) 719,6 971,9 1048,5 965,8

Customer funds (USD

mln) 666,0 771,6 1057,2 983,3

Tier I Capital AR 19% 16% 14% 12%

Total Capital AR 19% 16% 14% 18%

A branch network of 6 regional offices, 57 smaller outlets and

135 other service points;

Number of employees: 1,9 th as of 01.08.2016;

FitchRatings: ‘ B-’ with ‘Stable’ outlook.

73

4

85

9

94

0

1 2

83

1 6

04

1 8

52

1 6

25

54

1

65

1

82

3

1 0

09

1 3

19

1 5

77

1 4

16

193 207

117

274

285

275

209

2009 2010 2011 2012 2013 2014 2015

ASSETS, LIABILITIES & EQUITY DYNAMICS, MLN USD

Assets Liabilities Equity


BRIEF INFORMATION


Universal commercial bank;

Approximately 1,3 mln retail customers and 27,5 th legal entities

(including individual entrepreneurs);

№ 6 by total assets, №3 by regulatory capital, № 4 by profit and

№6 by corporate loans in the banking system;

As of 01.08.2016

42,3%

15,7%

9,4%

6,1%

5,4%

5,2%

4,3%

2,3%

2,2%

7,1%

MARKET SHARE IN TOTAL ASSETS

Other Banks

41,8%

13,8%

6,3%

6,2%

5,5%

5,5%

4,7%

2,3%

2,1%

11,8%

MARKET SHARE IN REGULATORY

CAPITAL

Other Banks

17,1%

17,0%

13,8%

12,9%

8,4%

30,8% Other Banks

34,6%

19,1%

12,9%

7,4%

5,9%

5,3%

4,2%

10,6%

MARKET SHARE IN CORPORATE LOANS

Other Banks

6th

4th

3d

6th

Source: NFRS statements as of 01.08.2016

MARKET SHARE IN PROFIT

OVERALL MARKET POSITION



State-owned banks

65,1%

Banks with foreign capital

(assets over USD 0,5 bn)

24,3%

Belgazprombank

5,2%

Other Banks 5,5%

MARKET SHARE BY ASSETS

9,9%

6,6%

7,1%

13,3%

15,9%

18,6%

28,7%

0% 10% 20% 30% 40%

Other

VTB Bank

Alfa-bank

Priorbank

Belgazprombank

BelVEB

BPS-Sberbank

MARKET SHARE BY ASSETS

Belgazprombank is №1 by regulatory capital among the banks with foreign capital and has one of the

highest levels of capital adequacy among the foreign banks with assets over USD 500 mln

Alfa-Bank 6,2% Bank VTB

6,7%

Priorbank

15,7%

BPS-Sberbank

15,7%

BelVEB 17,9% Belgazprombank

18,0%

Other banks

19,9%

REGULATORY CAPITAL

12,0%

13,8%

14,9%

16,8%

17,9%

18,7%

0% 10% 20%

BPS-Sberbank

Alfa-Bank

BelVEB

Bank VTB

Belgazprombank

Priorbank

CAPITAL ADEQUACY

3,167 bn USD

1,421 bn USD

MARKET POSITION AMONG BANKS WITH FOREIGN CAPITAL

9 Macroeconomics Bank overview Performance International Business

01.01.2014 01.01.2015 01.01.2016 01.08.2016

CAR 13,4% 13,1% 18% 17,9%

CIR 44,7% 37,3% 28,6% 36,7%

ROE 24,1% 29,6% 30% 22,6%

ROA 4,0% 4,4% 3,7% 2,7%

On-demand liquidity

168,8% 126,9% 110,6% 66,7%

Current liquidity 120,8% 133,9% 239,6% 122,6%

Short-term liquidity

1,6 3,3 3,2 1,5

Source: Managerial Accounts, NFRS

4,3%

2,7%

1,9%

1,5%

0,8%

0,3%

0%

1%

2%

3%

4%

5%

Pri

orb

ank

Bel

gazp

rom

ban

k

Alf

a-B

ank

Bel

VEB

Ban

k V

TB

BP

S-Sb

erb

ank

RETURN ON ASSETS

25,6%

22,6%

18,9%

12,9%

8,6%

4,5%

0%

5%

10%

15%

20%

25%

30%

Pri

orb

ank

Bel

gazp

rom

ban

k

Alf

a-B

ank

Bel

VEB

Ban

k V

TB

BP

S-Sb

erb

ank

RETURN ON EQUITY

FINANCIAL HIGHLIGHTS&LIQUIDITY

In terms of ROE and ROA Belgazprombank shows one of the highest performances among the banks with

foreign capital and assets over USD 500 mln



Source: IFRS statements as of 01.01.2016

debt securities issued 2%

other liabilities 11%

due to financial institutions

18%

individual customer

accounts 33%

customer accounts 36%

LIABILITIES STRUCTURE

other assets 1,0%

derivative financial

instruments 1,6%

due from banks & other FI

2,4% securities 2,4%

property, equirment &

intangible assets 4,5%

retail loans 4,7%

property, equipment &

intangible assets 3,5%

investments available for

sale 19,2%

loans to customers

54,7%

ASSETS DISTRIBUTION

DIVERSIFIED ASSETS STRUCTURE

FUNDING STRUCTURE IS WELL-BALANCED


48

6

72

0

97

2

10

49

96

6

46

0 6

66

,0 77

2

10

57

98

3

2011 2012 2013 2014 2015

LOAN PORTFOLIO & CUSTOMER ACCOUNTS DYNAMICS, MLN USD

Loans to customers Customer accounts

LOAN PORTFOLIO


1-30 days

7%

30-90 days

13%

90 days - 1 year

32%

over 1 year

48%

LOANS TO CUSTOMERS BY TENOR

Source: Managerial Accounts as of 01.01.2016, NFRS

guarantees of

individuals 1%

insurance of credit risk

exposure 4%

other types of

collateral 7%

collateralized by

inventories 11%

collateralized by

equipment 13%

liens over receivables

14%

collateralized by real

estate 50%

LOANS STRUCTURE BY COLLATERAL


DIVERSIFIED STRUCTURE OF LOAN PORTFOLIO

HIGHLY COLLATERALIZED LOAN PORTFOLIO


IFRS statements as of 01.01.2016

machinery 5,4%

retail

portfolio 7,5%

oil industry

6,2%

investment

property 6,3%

metallurgy

industry 7,4%

retail portfolio

7,5% chemistry &

petrochemistry

10,1%

other sectors

23,7%

trade 27,3%

SECTOR BREAKDOWN OF LOAN PORTFOLIO


2011 2012 2013 2014 2015 01.08.2016

Share of NPL* in Loan Portfolio, %

0,20 1,70 0,20 0,57 1,40 0,98

Share of Problem loans** in Loan Portfolio, %

0,38 2,01 0,29 1,57 1,44 0,98

* NPL include loans with outstanding indebtedness from 1 day.

** Problem loans include NPL & Restructured Loans.

Source: Managerial Accounts, NFRS

0,5% 0,3%

0,2%

1,1% 0,1%

0,3%

0,0%

0,5%

1,0%

1,5%

2,0%

Legal Entities, % of corporate and MSE LP

Individuals, % of retail LP

STRUCTURE OF PROBLEM LOAN PORTFOLIO

BY NUMBER OF DAYS IN ARREARS

>180 days

91-180 days


rent & property &

equipment

maintenance 4%

contributions to

individuals' deposits

protection fund 6%

expences for services

of automated

interbank and

international

settlement system

7%

depreciation &

amortization 7%

social security

contributions 9%

other 30%

staff costs 37%

OPERATING EXPENSE STRUCTURE

net interest income

16%

fee and commission

income 21%

other non-interest

income 63%

OPERATING INCOME STRUCTURE

INCOME AND EXPENSES



84,7 91,0

110,2

157,3 167,1

176,7 167,4

47,1 41,3

58,1

85,7 83,5

91,8 100,8

0

20

40

60

80

100

120

140

160

180

200

2009 2010 2011 2012 2013 2014 2015

INTEREST INCOME & EXPENSE DYNAMICS, MLN USD

Interest Income

Interest Expense

Net Interest Income (including

Impairment Losses on Interest

Bearing Assets)

Net Non-Interest Income

60,4

79,3 86,4

127,3

116,5 122,7

106,2

28,5 39,2

33,6

47,3

60,9 68,7

53,5

-40

-20

0

20

40

60

80

100

120

140

2009 2010 2011 2012 2013 2014 2015

OPERATING INCOME & EXPENSE DYNAMICS, MLN USD

Operating Income

Operating Expense

Profit Before Tax and

Loss on Net Monetary

Position

Net Profit

Most banks in Belarus recognized losses under IFRS for 2011 as a result of the hyperinflationary status

assigned to Belarus and the application of IAS 29 (Financial Reporting in Hyperinflationary Economies)


November 2013

EUR 20 MM MSME Credit Line

February 2014

EUR 30 MM MSME A+B Facility

February 2015

BYR 100 BN MSME Credit Line

March 2014

EUR 20 MM Business Mortgage

Financing Credit Line

August 2014

USD 10 MM Agricultural Sector

Financing

Credit Line

Basic Agreement with AKA (Ausfuhrkredit-Gesellshaft mbH) for the purpose of

attracting long-term loan facilities covered by Euler Hermes and other export credit

agencies

Full-scale cooperation with Eximbank of Russia on the financial support of trade

between Russia and Belarus (RUB 2 BN)

The package of bilateral agreements with International Investment Bank on import

support from the countries, where IIB performs its activity (EUR 20 MM Limit)

May 2016

EUR 45 MM 5-year SME Credit

Line

December 2015

BYR 100 BN MSME Credit Line

is expanded to include a new

banking product on the

support of startup companies

COOPERAION WITH FIs

While the focus remains on providing services to domestic customers, Belgazprombank also

developed a large international network of partner banks: more than 100 foreign and international

FIs from more than 20 countries are our esteemed partners

November 2005

Syndicated loan – 15 MM USD

September 2005


and 5 MM EUR

October 2006


June 2007


June 2008

The loan is increased from 35

MM USD to 45 MM USD.

August 2014 BYR 150 BN MSME Credit Line

March 2016

BYR 60 BN MSME and startup

companies Credit Line


December 2012

USD 20 MM Loan Agreement

July 2013


December 2008


February 2013

USD 13 MM BelSEFF Loan Agreement

July 2009


September 2007


Letters of

credit

20%

Confirmed

guarantees

2%

Financing

(post

financing and

direct

financing)

77%

Import LC

92%

Export LC 8%

Source: Managerial Accounts as of 01.07.2016

14,9 bn

USD 72,8 bn

USD

As at the exchange rate of NBRB on 30.06.2016

TRADE FINANCE AS OF 01.07.2016

Import LC Export LC Confirmed guarantees Financing (post financing

and direct financing) Total

31 (25%) 4 (3%) 5 (4%) 83 (68%) 123

Russia 57%

Europe (except CEE

countries) 22%

Asia (except for those

included in CIS) 10%

CEE 7%

Baltics 3%

CIS (except Russia) 2%

BREAKDOWN OF TF PORTFOLIO BY COUNTRY


Industry 76.2%

Trade and Public Catering 12,0%

General commerce 4.2%

Financial and Insurance 3,0%

Transportation and road

facilities 2,1%

Other 2,5%

BREAKDOWN OF TF PORTFOLIO BY ECONOMIC SECTOR

«STP Quality Award January-

June 2014»

Raiffeisen Bank

International (RBI), Austria

«Best Internet-Banking

System» within the

Framework of the

Contest «Bank of the

Year 2012», Belarus

Gratitude 2013, 2011 «For

significant contribution

to the implementation of

charitable programs»

International Children’s

Charitable Foundation

Chance, Belarus

«Trade Award

2013»,

Commerzbank AG,

Germany

«Best Services for

Entrepreneurs» within the

framework of the Contest

«Brand of the Year 2013»,

Belarus

«2011 Elite Quality

Recognition Award»,

J.P. Morgan, USA

BACEE Gold Award in the

annual report competition

2014

«STP Award 2014»

Commerzbank AG,

Germany

Diploma «Patron of

Сulture of Belarus

2015»

Award «HR

Brand 2015» in

the «Republic»

category

The best partner bank of

Development Bank of

Belarus in the support of

SME

The best Bank of the year in

the nominations «Online

Bank», «Banking Service»,

«Bank for Business», «The

most dynamic Bank among

the largest banks»

BACEE 2014 Special

Award for

Transparency in

Financial Reporting

AWARDS

The recognition of our efforts brings pride to all of us and confirms the invaluable price Belgazprombank

receives from its stakeholders – our shareholders, customers and employees


International Children’s Charity Foundation Chance

The Foundation, established and supported by Belgazprombank, is currently recognized by

the independent Experts as the most significant non-governmental charity foundation in the

Republic of Belarus and one of the most successful projects in this field. More than 300

children received help over the recent 5 years for the total amount over USD 3 mln.

Project «Art-Belarus» The initial idea of a corporate collection «Belarus-Born Artists of the School of Paris»

developed into a nationwide project «Art-Belarus» aimed at a historical overview of the fine

arts evolution in Belarus in its plenitude and integrity.

International Theater Forum «TEART»

Annual international theater forum «TEART» conducted under the auspices of

Belgazprombank has acquired the status of one of the most important cultural events in

Belarus.

International Handball Tournament

Annual tournament «Belgazprombank’s Cup» with the participation of clubs from Russia,

the Ukraine, Poland, Spain, France, Macedonia and other countries has become one of the

most prestigious international tournaments held within former Soviet territory.

“…While, in our opinion, theatrical art demonstrates the integration of

Belarus into world culture and we try to understand the present-day

theatre and imagine the theatre of the future – the collection of art works

is a mere flashback. Such projects can be merged to fulfil one important

task – to shape our future based on our past, taking our present into

account...”

Viktar Babaryka

Chairman of the Management Board of Belgazprombank

Belgazprombank presented a large-scale international art-project «Time and creative work

of Leon Bakst» in the framework of the national historic and cultural project «Art-Belarus»

dedicated to the 150th anniversary from the artist’s birth and aimed at the provision of a

comprehensive picture of the development of national art.

Time and creative work of Leon Bakst

SOCIAL ACTIVITY

Successful systematic international projects in social and cultural spheres are a distinctive feature of

the Belgazprombank’s activity.


Autumn Salon of Belgazprombank

A large-scale project the main purpose of which is, on the one hand, to find the most talented artists of Belarus and support their professional development, and, on the other

hand, to facilitate the formation of the Belarusian art-market. The winners of the project will

be supported in the participation in a world famous Paris Autumn Salon.

Address: 60/2 Pritytsky St., 220121 Minsk, Belarus

SWIFT: OLMPBY2X

Telex: 252104 OLIMP BY

E-mail: [email protected]

www.belgazprombank.by

BELARUSIAN MACRO • BELARUS OVERVIEW (p.2)

• GROSS DOMESTIC PRODUCT (p.3)

• FOREIGN TRADE (p.4)

• EXTERNAL DEBT INDICATORS, CPI AND REFINANCING RATE (p.5)

• BANKING SYSTEM (p.6)

BELGAZPROMBANK OVERVIEW • BRIEF INFORMATION (p.7)

• MARKET POSITION (pp.8-9)

BELGAZPROMBANK FINANCIAL PERFORMANCE • FINANCIAL HIGHLIGHTS AND LIQUIDITY (p. 10)

• BALANCE SHEET RESULTS (pp.11-14)

• INCOME & EXPENSES (pp.15-16)

INTERNATIUONAL BUSINESS • COOPERATION WITN FIs (p.17)

• TRADE FINANCE (p.18)

AWARDS (p.19)

SOCIAL ACTIVITY (p.20)

CONTENTS (p.21)

CONTACTS (p.22)

CONTENTS

21 Macroeconomics International Business Bank overview Performance

Mr. Sergey V. Shaban

Deputy Chairman of the Board

+375 17 229 15 35

[email protected]

Mrs. Irina A. Antonova

Financial Institutions Global Head

+375 17 218 36 55

[email protected]

Mr. Andrei A. Khatsenka

Head of Business Development Financial

Institutions

+375 17 218 36 55

[email protected]

Address: 60/2 Pritytsky St.,

220121 Minsk, Belarus

SWIFT: OLMPBY2X

Telex: 252104 OLIMP BY

E-mail: [email protected]

www.belgazprombank.by

Belorussian- Russian Belgazprombank Joint Stock...14,9%BelVEB 16,8%Bank VTB 17,9% 18,7% 0% 10% 20%...

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Transcript of Belorussian- Russian Belgazprombank Joint Stock...14,9%BelVEB 16,8%Bank VTB 17,9% 18,7% 0% 10% 20%...