Financial results following the results of 2013 and development plans of Subsidiary JSC VTB Bank (Kazakhstan)

On June 4 VTB Bank (Kazakhstan) has conducted press conference following the results of 2013 and presented development plans until 2017.

The press conference was attended by:
     • Sergey Gusarov, Chairman of the Board of Subsidiary JSC VTB Bank (Kazakhstan);
     • Dmitry Yakovlev, Deputy Chairman of the Board – Member of the Board (Curator of Retail Business);
     • Olga Yemelyanova, Director of the Department of Corporate Business Development.

Basic financial and operating indicators following the results of
2013 (in comparison with 2012)

Following the results of 2013, VTB Bank (Kazakhstan) has demonstrated growth of indicators in all areas of activities. Net profit of the Bank in 2013 has amounted to 619 million tenge, against net loss of 487 million tenge in 2012.

• Assets of the Bank have increased by 49% – up to 143 995 million tenge;
• Liabilities of the Bank have increased by 59% - up to 126 265 million tenge;
• Loan portfolio of the Bank has been formed in the amount of 108 280 million tenge, increase in comparison with the beginning of 2013 has amounted to 34%. Balanced credit policy allows to maintain quality of loan portfolio at enough high level;
• Volume of funds on accounts and deposits of customers has continued to grow and reached 97 155 million tenge as of December 31, 2013, having increased by 87% in comparison with the beginning of 2013;
• Net interest income having increased by 43% in comparison with the same period of the last year;
• Net commission income having increased by 64% in comparison with the same period of the last year;
• Net profit of the Bank following the results of 2013 has amounted to 619 million tenge in comparison with net loss of 487 million tenge in 2012. The increase of net profit was affected by growth of number of operations of the Bank (including increase of the loan portfolio) along with optimization of expenses.

Subsidiary VTB Bank in Kazakhstan continues to demonstrate steady growth of basic balance sheet ratios and operating incomes, herewith paying significant attention to quality and accessibility of provided services.

Significant role herewith was played by expansion of range of products and financial services for corporate and retail customers.

Sergey Gusarov, Chairman of the Board of Subsidiary JSC VTB Bank (Kazakhstan): «In 2013, VTB Bank (Kazakhstan) has shown excellent results - net profit has amounted to 619 million tenge. Increase of corporate loan portfolio has amounted to 10,2 billion tenge or 19%. Retail loan portfolio has amounted to 46,2 billion tenge in comparison with 27,5 billion tenge as of beginning of the year. All these indicators point to growing confidence of customers to our Bank. We appreciate it very much and will do anything for making quality of service to grow steadily, and customers of our bank to receive financial services of European standard».

Participation of VTB Bank (Kazakhstan) in State programs of financing business development
In 2013, the Bank has actively participated in state programs of financing business development. Within the framework of state program «Business Road Map – 2020», the Bank has financed 67 projects totaling 7,9 billion tenge, including companies of medium-sized and small business. The Bank has sent 3,4 billion tenge to finance agricultural within the framework of program of subsidization of agricultural sector of the Ministry of Agriculture of the Republic of Kazakhstan. Within the framework of state program «Damu regions III», the Bank has financed 26 companies totaling 800 million tenge.

Development strategy of VTB Bank (Kazakhstan) for 2014 – 2017

1. Formation of universal bank with equally strong retail and corporate business areas.
2. Achievement of leading positions in servicing Russian companies and companies from CIS countries in the market of Kazakhstan, as well as local clients who have interest in development of business in CIS countries.
3. Increase of funds of individuals in the structure of liabilities of the Bank by 2017.
4. Capitalization of the Bank will be maintained by VTB Group at sufficient level for successful development of business in accordance with strategic initiatives and regulations of legislation of the Republic of Kazakhstan.
5. Corporate business: improvement of efficiency of work with corporate clients, extension of portfolio in middle segment by means of presence in regions, development of commission-based products, development of investment-banking business area.
6. Retail business: significant expansion of network by means of opening new points, development of «VTB Private banking» and building-up network of remote points of sale for express lending.

VTB Bank (Kazakhstan) seeks to maintain sufficient level of liquidity and balance of assets and liabilities by maturity and currencies, ensure required level of diversification by regions, industries, customers and size of investments.
The results of the I quarter of 2014 have shown that VTB Bank (Kazakhstan) continues to demonstrate stability and sustainability of its financial positions, ensuring safety of funds of customers of the Bank.