Highlights for 9M and 3Q 2016 - Банк Санкт-Петербург · Highlights for 9M and 3Q 2016 2 Revenues consistently high at RUB 7 bn+ level for six quarters in a row:

Highlights for 9M and 3Q 2016

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Revenues consistently high at RUB 7 bn+ level for six quarters in a row:

RUB 7.9 bn for 3Q 2016 (+9% comp. with 3Q 2015) RUB 23.2 bn for 9M 2016 (+17% y-o-y)

NIM in 4%+ area for the first time since 4Q 2014

Impressive Fee and commission income:

RUB 1.2 bn for 3Q 2016 (+14% comp. with 3Q 2015) RUB 3.5 bn for 9M 2016 (+20% y-o-y)

Overview of Key Financials

In RUB bn Jan 1, 2016 Oct 1, 2016 YTD Oct 1, 2015 July 1, 2016 Oct 1, 2016 q-o-q y-o-y

Total assets 562.53 546.71 -2.81% 527.57 574.57 546.71 -4.85% +3.63%

Gross Loans 370.27 356.79 -3.64% 352.67 368.69 356.79 -3.23% +1.17%

Customer Deposits* 343.40 333.73 -2.82% 328.39 339.23 333.73 -1.62% +1.62%

Total Capital 81.08 82.11 +1.27% 79.90 81.77 82.11 +0.41% +2.76%

9M 2015 9M 2016 3Q 2015 2Q 2016 3Q 2016 q-o-q y-o-y

Net Interest Income 12.32 16.08 +30.48% 4.08 5.31 5.70 +7.24% +39.56%

Net Fee and Commission Income

2.90 3.47 +19.89% 1.03 1.17 1.18 +0.92% +13.93%

Revenues 19.81 23.25 +17.35% 7.23 7.80 7.91 +1.40% +9.33%

Net Income 2.69 3.03 +12.77% 1.12 0.83 1.03 +25.24% -7.60%

9M 2015 9M 2016 3Q 2015 2Q 2016 3Q 2016 q-o-q y-o-y

Net Interest Margin 3.49% 4.07% +0.58 PP 3.36% 4.01% 4.34% +0.33 PP +0.98 PP

Cost/Income Ratio 37.71% 39.25% +1.54 PP 34.73% 39.96% 39.60% -0.36 PP +4.87 PP

ROAE 6.71% 6.92% +0.21 PP 8.07% 5.68% 6.90% +1.22 PP -1.17 PP

• * Customer deposits are calculated as a sum of customer accounts and promissory notes (other debt securities issued). 3

Financial Highlights, 9M 2016

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Results for 9M 2016

5* Property tax is excluded from other administrative and operating expenses and included in expenses related to premises and equipment

(9M14: RUB 204 mln; 9M15: RUB 207 mln; 9M16: RUB 105 mln).

• More than RUB 4 bn of extra net interest income

compared with 2015

• F&C and trading income continue to make strong

contributions

• Cost/Income ratio is in line with guidance

Financial Highlights, 3Q 2016

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Results for 3Q 2016

7* Property tax is excluded from other administrative and operating expenses and included in expenses related to premises and equipment

(3Q15: RUB 69 mln; 4Q15: RUB 67 mln; 1Q16: RUB 36 mln; 2Q16: RUB 34 mln; 3Q16: RUB 35 mln).

• Strong NIM in 4%+ area for the first time since 4Q 2014

• Provisions remain high against the backdrop of challenging

macro environment, putting pressure on ROAE

NIM Dynamics

8* The full methodology is available in Mid-Quarter Update_January 2016: https://bspb.ru/en/investors/results/

• Core Banking Margin remains historically high

• Trading margin contributes to NIM growth

• Term deposits repricing outpaces loans repricing

Average interest rate

Contribution to NIM change:

Gross loans +1 bp

Retail term deposits +8 bp

Corporate term deposits +11 bp

On-demand accounts -14 bp

Total +6 bp

Average balance

Contribution to NIM change:

Correspondent accounts -8 bp

Gross loans -3 bp

Retail term deposits -4 bp

Corporate term deposits +6 bp

Total -9 bp

other factors -3 bp

Main Factors affected NIM in 3Q 2016

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Business highlights: retail banking

Large customer base: 1,730,000 retail customers

Number of cards issued – 1,040,000

12 new offices opened in 2015 (+19% y-o-y), 7 new offices in thepipeline in 2016

Retail lending:

Retail loans 13% growth y-o-y*

Top-5 player participating in Mortgage Subsidy Government Program(limit is RUB 22.1 bn)

The Bank #8 in the Russia’ mortgage lending market in 1H 2016

7 mortgage lending centers within the Bank’s branch network

E-banking:

Successful internet bank platform – 720,000 users

During 9M 2016:

60% of the total retail deposits are online deposits

85% of consumer loans originated through the Internet Bank

96% of payments were made through digital channels(Internet Bank, ATMs and payment kiosks)

10• * Retail loans include mortgages, car and consumer loans.

• Overdue loans include the whole principle of loan at least one day overdue.

Loan portfolio and quality

11Note:

Overdue loans and impaired not past due loans include the whole principle of loan at least one day overdue or impaired.

• Gross loan portfolio increased by 1.2% y-o-y

• Loans to individuals is a major segment of loan portfolio

• RUB 2.1 bn of the loan portfolio written off in 9M 2016

Assets and liabilities structure

• * Customer deposits are calculated as a sum of customer accounts and promissory notes (other debt securities issued ).

• Retail deposits represent 57% of total customer deposits

• Loans/Deposits Ratio close to targeted 100%

• Conservative approach to risk: approximately 94% of the debt securities belong to the CBR Lombard list

• Average duration of the bonds portfolio is 0.9 years

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Due from banks 0.9%

Fixed and other assets 6.0%

Amounts under reverse repo 6.2%

Cash 8.3%

Securities portfolio21.0%

Loans and advances to customers

57.5%

Other 0.8%

Capital markets 3.4%

Shareholders’ equity 11.0%

Due to banks23.7%

Customer accounts(corporates)26.5%

Customer accounts(individuals)34.6%

Capital and funding

• Comfortable level of all capital adequacy ratios

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New State-of-the-Art Mobile Bank app

All services at your fingertips

720 000 users

Online banking services:

60% of the total retail deposits are online deposits

85% of consumer loans originated through the Internet Bank

96% of payments were made through digital channels (Internet Bank, ATMs and payment kiosks)

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Alexander Savelyev

Chairman of the Management Board

2014 – 2016 Chairman of the Supervisory Board

2001 – 2014 Chairman of the Management Board

Maris Mancinskis

Chief Executive Officer, member of the Management Board

2009 – 2016 CEO Swedbank (Latvia)

2006 – 2008 CEO Swedbank (Russia)

Changes in the Bank’s senior management

Elena Ivannikova

Chairperson of the Supervisory Board

Since 2005 Member of the Supervisory Board

2003 – 2013 First Deputy Chairperson of the Management Board

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Alexander Savelyev returned to the position of the Chairman of the Management Board, following his two-year assignment as the Chairman of the Bank’s Supervisory Board.

The Supervisory Board now is chaired by Ms. Elena Ivannikova, formerly Deputy Chairperson of the Supervisory Board.

Mr. Maris Mancinskis, who previously headed Swedbank Latvia and served on the top management team of Swedbank AB, Sweden, was appointed Chief Executive Officer (СЕО), a member of the Management Board.

FY2016 Guidance

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Loan portfolio growth 0%

Cost of Risk 350 bp-

Costs growth 15-16%

Cost-Income ratio 40-41%

ROAE 7-8%

Presentation team

All information for the investors is available on the Bank’s web site: https://www.bspb.ru/en/investors/Contact information:

E-mail: [email protected]: +7 812 332 78 36

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