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Disclaimer
This presentation has been prepared and issued by National Bank TRUST. This publication is intended for professional and institutional customers. Any information in this presentation is based on data obtained from sources considered to be reliable, but no representations or guarantees are made by National Bank TRUST with regard to the accuracy of the data. The opinions and estimates contained herein constitute our best judgment at this date and time, and are subject to change without notice. This presentation is for information purposes, it is not intended to be and should not be construed as an offer or solicitation to acquire, or dispose of any of the securities or issues mentioned in this presentation. National Bank TRUST and/or its subsidiaries may use the information in this presentation prior to its publication to its customers. National Bank TRUST or its employees may also own or build positions or trade in any such securities, issues, and derivatives thereon and may also sell them whenever considered appropriate. National Bank TRUST may also provide banking or other advisory services to interested parties. National Bank TRUST accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this presentation.
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NBT’s profileProducts:
Full range of commercial banking services to corporate and private clients with primary focus on Retail and SME loans to corporate and individual customers as well as to federal and municipal governmental entities in Russia,
Key Clients:
Mass Retail segment, Trade and Service Industries, SME;
Current Geographical Coverage:
Strong presence in cities with population of over 100,000 and satellite towns of large cities
Strategic Goal:
In the next two years to become a TOP 5 Russian retail and SME bank in Russian regions with high growth potential based on
• size of assets
• number of clients
• coverage of branch network
NBT in figures:
31/03/07 IFRS (RUB mln.) unaudited Total Assets: 48.057 Net profit: 81 Shareholders’ equity: 4,419 Loan portfolio: 27,834
Branch Network as of 1st of April, 2007
133 offices in 81 cities of Russia
Current work in progress on 44 offices, with 15 planned to open by July 2007
Employees: 5,860
Ratings: “B1”, outlook “Positive” by Moody’s “B-” , outlook “Stable” by Fitch
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Ist Quarter 2007 SnapshotFinancials
Raised sub-debt by issuance of 5.5 year CLN for Usd 20 million Achieved all major budget targets for the quarter
People Hired 331 people Implemented SAP-HR system branch-wide, for HR Management and
remote learning Trained 823 staff, mainly in sales
Systems Upgrades implemented for Front Office retail products Systems enhanced in readiness for securitisation Automation of Mortgage back office process under testing
Network Expansion Opened 6 Offices in Armavir, Kovrov, Nizhny Tagil, Komsomolsk-na-
Amure, Kursk and Kazan
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Financial Overview
by IFRS 2004 2005 2006 1Q07Actual (unaudited)
1Q07Budget
Capital 3,545 4,193 4,337 4, 419 4, 544
Assets 29,715 39,360 44,669 48,057 41,781
Loans (gross) 9,553 17,262 25,934 29,117 27,987
Loan / total assets, % 32% 44% 58% 61% 67%
Amount due to customers 22,257 30,564 34,868 38,349 34,444
Net operating income 2,319 3,615 4,284 1,234 1,396
Pretax profit 856 847 303 125 100
Net interest margin 9.2 8.3 9.8 11,5 12,6
ROAA 1.1 0.8 0.5 0,7 0,7
ROAE 9.3 7.5 4.5 7,4 6,8
Cost / Income before provisions 87.3 68.1 77.4 74.0 73.2
Cost / Income 70.3 74.4 91.7 88.0 91.1
CAR 24.1 17.0 14.2 14.7 17.8
Key indicators, RUR mln
Key financial ratios, %
Headcount 2,698 3,505 5,529 5,860 6,173
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2004 2005 2006 1Q07 Target 2007 (Post-capital injection)
ROAA 1.1 0.8 0.5 0,7 1,0
ROAE 9.3 7.5 4.5 7,4 9,8*
Cost / Income 70.3 74.4 91.7 88.0 85.0
CAR 24.1 17.0 14.2 14.7 16.8
Key financial ratios, %
* - 12,6% pre-capital injection
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2006Other Assets
3.0% Cash and cash equivalents
23.2%Property, equipment and
intangibles
4.4%
Loans to customers
55.6%
Financial assets at fair value through
profi t and loss
13,8%
1Q07Other Assets
3.5% Cash and cash equivalents
21.5%Property, equipment and
intangibles
4.5%
Loans to customers
57.9%
Financial assets at fair value through
profi t and loss
13,8%
Assets structure
29,715
48,057
39,36044,669
2004 2005 2006 1Q07
27,834
9,005
16,379
24,847
2004 2005 2006 1Q07
Increasing loan portfolio in assets structure 2006 vs.1Q07
Total assets. RUR mln. Loan portfolio. RUR mln.
2007 Budget
68,566
2007 Budget
53,220
Cash and cash equivalents
4.5%
Loans to cus tom ers
77.6%
Financial assets through profit
and loss14.5%
Property, equipm ent and
intangibles3.3%
2007 Budget
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Retail52.6%
SME22.1%
Corporate25.3%
Retail
50.9%
Corporate
37.7%
SME
11.4%
Retail28,7%
Corporate71,3%
Retail50.0%
Corporate41.3%
SME8.7%
Loan portfolio structure
Changes in loan portfolio structure
20062005 1Q07
93% of retail and SME business is conducted in the Regions
2007 Budget
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Corporate current accounts
18.9%
Individual current accounts
4.7%
Long term f inancing
29.1%
Short term interbank
12.5%
Corporate term deposits13.4%
Individual term deposits21.4%
Liabilities structure
17.823.3 23.0 25.3
19.5
4.5
7.311.8
12.4
15.9
2.73.2
17.6
0
10
20
30
40
50
60
2004 2005 2006 1Q07 2007 budget
RU
R b
ln
Long term Financing
Individual accounts
Corparate accounts
Long term f inancing
7.7%
Corporate term deposits14.4%
Individual term deposits21.5%
Corporate current accounts
46.1%
Individual current accounts
8.0%
Short term interbank
2.2%
Funding structure
1Q07 2007 Budget
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4Q063Q06
85 128168
234281
1966
112394
1927
122
4829
157
6830
183
Retail Banking
Retail deposits, RUR bln.
Retail portfolio size (RUR bln.)
Number of clients in portfolio (thousand)
1Q06 2Q06 1Q07
1Q06 2Q06 3Q06 4Q06 1Q07
Term depositsCall deposits Cards CashAuto
Cash Auto Cards Mortgage
0.20.3
0.4
1.93.4
3.2
4.7
5.1
4.6 6.5
5.45.38.1
1012.4
0.050.55.4
7.7
13.7
2007B
2004 2005 2006 1Q2007 2007B
2.3
2.2
4.5
3.2 3.4 3.3
4.1
7.3
8.38.8
12.111.8
15.8
13.0
2.8
4.51.5
8.2
15.2
29.4
2007B
319
44
190
553
First Quarter Developments:
• Planned volume numbers achieved
• Launch of Application Credit Cards and open market Cash Loans in whole network
• Implementation of motivation system for senior level sales staff
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Micro34,94%
Small43,42%
Medium21,64%
SME Banking
Type Loan Size, US$ thsd
Duration mths
Yield, % Average Loan size US$ thsd
Micro up to 50 up to 24 up to 28 16.7
Small 50 - 250 up to 36 up to 20 83.6
Medium 250 - 1,000 up to 36 up to 18 395.8
SME portfolio size (RUR mln.)
SME Loans structure as 1Q2007
30571
1,403
3,842
5,988
10,977
1Q06 2Q06 3Q06 4Q06 1Q07 2007B
21.8 295.2716.9
2,282.63,397.3
12,320.9
1Q06 2Q06 3Q06 4Q06 1Q07 2007B
Number of clients
Micro72,63%
Small25,83%
Medium1,54%
1Q2007 2007 budget
First Quarter Developments:
• Planned budget numbers achieved
• Issued first “Medium” Loan
• Increased sales to 53 offices (49 in Dec 06)
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Corporate Banking
First Quarter Developments:
• As planned, loan portfolio stable
• Focus on new segmentation
• Cross sold 2 deals with IBT
Corporate loans (RUR bln.)
Corporate deposits (RUR bln.)
Term depositsCall deposits2004 2005 2006 1Q2007
17.8
23.1 23.0
27.3
1.0
16.8
6.9
16.3 16.6
6.4
5.9
21.3
2007B
7.9
12.511.7 11.8
2004 2005 2006 1Q07 2007B
11.5
7.5
19.0
14.1