Belarusbank - AHK Belarus

Since 1922
Belarusbank – reliable partner
Nikolai Vavokhin
Head of Representative Office in Germany
Frankfurt am Main, September 8, 2014
Agenda
1. Belarus - Economic Environment
2. Belarusbank - Business Model and Performance
3. Belarusbank - International Business
4. Doing business in Belarus. Experience and advices of a
bank
5. Contacts
2
www.belarusbank.by
Belarus - Economic Environment
3
www.belarusbank.by
Belarus: General Information
Area: 207 600 sq km
Population: 9.5 m. inhabitants
Capital: Minsk (1.9 m. inhabitants)
1
Natural resources: potash, timber, peat, oil,
granite, dolomite limestone, marl, chalk,
sand, gravel, clay
Administrative divisions: 6 regions + city Minsk
Official languages: Belarusian, Russian
International organizations’ membership:
2
International Ratings:
- UN, UNCTAD, UNESCO, UNIDO;
- WTO (observer);
- IBRD, EBRD;
- IMF;
- CIS;
- Shanghai Cooperation Organization
(dialogue member), etc.
B3
3
BBB 4
www.belarusbank.by
Economy Overview
Indicators
2010 2011 2012 2013 1H 2014
GDP, USD bn (equiv.)
54.8
32.8
67.3
29.9
37.4
- 7.5
95.0 100.5 89.5
46.7 51.7 43.9
48.3 48.8 45.6
- 1.6 2.9 -1.7
5.6
9.9
13.2 14.3
108.7 21.8
Foreign trade turnover (FFT) ,
USD bn (equiv.)
•Export, USD bn
•Import, USD bn
Balance of foreign trade, USD bn
Foreign direct investments in real
economic sector, USD bn (equiv.)
Inflation, %
Public External debt,
USD bn (equiv.)
Exchange rate USD/BYR
61.5
67.0
11.1
16.5
10.0 12.3 12.7 12.4
3000 8350 8570 9510
Real GDP Growth, %
33.4
35.73*
18.08
17.65
0.43
3.7**
10.2
13.4
10200
* as of 01/06/2014, ** as of 01/04/2014
Source: National Statistical Committee of the Republic of Belarus,
National Bank of the Republic of Belarus
Source: National Statistical Committee of the Republic of Belarus
Comments
GDP Structure as of 01.01.2014, %
Belarus has an open export-oriented economy.
Belarusian economy has a well-diversified structure
supplying goods and services to domestic and foreign
markets.
In comparison to GDP the national external debt stands
at low level giving the country an opportunity to make
safe borrowings to support its economy.
Refinancing rate of the National Bank of the Republic of
Belarus since 13.08.2014 – 20%.
Source: National Statistical Committee of the Republic of Belarus
5
www.belarusbank.by
Economy Overview
Cross-country Comparison
Country
CIS
Belarus
Ukraine
Lithuania
Czech
Republic
Greece
EU
Spain
Portugal
Poland
Germany
Ratings
M / S&P/ F
GDP Growth
2013/2012
%
Gross External
Debt to GDP
2013, %
NPL to total
gross loans
2013, %
Inflation Rate
2013, %
Unemployment
2013, %
B3/B-/-
0.9
22.8
4.6
16.5
0.5
Caa3/CCC/CCC
1.9
37.4
12.9
-0.3
8.1
Baa1/A-/A-
3.6
40.2.
12.5
0.4
11.4
A1/AA-/A+
1.1
48.8
5.2
1.4
8.2
Caa1/B-/B
-3.9
157.2
31.3
-0.9
27.7
Baa2/BBB/BBB+
-1.2
86
8.2
1.4
25.7
Ba1/BB/BB+
-1.4
129
11.0
0.3
15.3
A2/A-/A-
1.6
48.2
5.2
0.7
13.4
Aaa/AAA/
AAA
0.4
81.0
-
1.5
5.1
Source: Bloomberg, Belarusbank
12
6
www.belarusbank.by
Banking Sector
Performance Indicators of Belarusian Banks
Banking Assets to GDP Ratio, %
Indicator
2010
2011
2012
2013
01.07.14
Assets, USD bn
43.7
31.7
37.5
41.6
42.6
Authorized Capital, USD bn
4.0
3.3
3.5
3.3
3.2
Normative Capital, USD bn
5.8
4.4
5.3
5.6
5.6
Credits to clients, USD bn
29.6
17.7
25.1
29.8
30.5
Deposits from clients, USD
bn
CAR, %
14.3
11.7
19.2
18.2
19.0
20.45
24.70
21.85
15.50
14.77
Profit, , USD bn
0.571
0.369
0.571
0.717
0.312
1.69
1.65
1.82
1.87
1.65
ROA, %
Source: National Bank of the Republic of Belarus
Source: National Statistical Committee of the Republic of Belarus, National
Bank of the Republic of Belarus
Actual Value of Basic Indicators, %
Comments
Belarusian banking sector, as of 01.07.2014, consists of 31
banks, including 27 banks with foreign capital participation.
In the reporting period banks formed special provisions for
covering potential losses on assets exposed to credit risk to
the extent required and ensured the compliance with liquidity
and capital adequacy ratios.
Source: National Bank of the Republic of Belarus
7
www.belarusbank.by
Belarusbank - Business Model
and Performance
8
www.belarusbank.by
Belarusbank Overview
Belarusbank Key Facts
Foreign currency Foreign currency
short-term
long-term
Outlook
Individual
Support
2008
B
B-
Stable
D/E
5
Founded in 1922, the largest financial institution in Belarus
2009
B
B-
Negative
D/E
5
2010
B
B
Stable
D/E
4
The Banker rank by Tier 1 capital No. 399
2011
В
В-
Negative
D/E
5
2012
B
B-
Negative
D/E
5
2013
B
B-
Stable
D/E
5
Foreign
currency
long-term
Foreign
currency
short-term
Local
currency
long-term
Local currency
short-term
Outlook
April 2012
B-
C
B-
C
Stable
April 2013
B-
C
B-
C
Positive
November 2013
B-
C
B-
C
Stable
Total assets of USD 17.5 billion (as of July 1, 2014)
Ownership - 99% State Owned
Financial Statements: Audited Financial Statements according
to IFRS since 1997
Belarusbank Presence in Belarus, as of 01.07.2014
Local market position, % as of 01.07.2014
HEAD OFFICE
1
Regional Branches
6
Branches
124
Outlets
1728
9
www.belarusbank.by
Organizational Structure
Belarusbank Group Organization Chart
Belarusbank
49.3%
100%
99.9%
IT
Recreation
(2 companies)
Financial services
JSC Banks Processing
Center
ASB Recreation center
Sputnik
ASB Leasing
ASB Recreation center
Solnechniy
Shareholders' Structure,%
Representative Offices Abroad
98.039%
1.937%
0.021%
0.003%
98.039%
22
www.belarusbank.by
Historic Milestones. Recent times
1992
Started as Labour Savings Office in new Soviet banking system
1995
Joint Stock Company “Savings Bank “Belarusbank” was established by merger of the Savings Bank of
the Republic of Belarus and “Belarusbank” Joint Stock Commercial Bank
1996
Belarusbank acquired Belsvyazbank and Belzheldorbank
1997
Belarusbank opened its representative offices in Russia (Moscow) and Poland (Warsaw)
2003
Belarusbank opened its representative office in Germany (Frankfurt-am-Main)
2005
Belarusbank acquired MinskKompleksBank
2007
Belarusbank opened its representative office in China (Beijing)
Debut issue of Belarusbank LPN - $ 125 mln
2008
Memorandum of understanding between Belarusbank and Deutsche Boerse AG was signed
2009
Agreement for cooperation between Belarusbank and Warsaw Stock Exchange was signed
2012
Belarusbank obtained a syndicated loan of $ 130 mln
Belarusbank became - a full member of WSBI
- Bank-partner of Interbank Consortium of the Shanghai Cooperation Organization
2013
Belarusbank became a full member of Moscow Exchange
Belarusbank obtained a syndicated loan of $110 mln
2014
Belarusbank obtained a syndicated loan of €100 mln
1922, First Bank’s Office in Minsk
2011, Head Office in Minsk
10
2013, New building of Belarusbank Head Office
www.belarusbank.by
Belarusbank’s Market Position (Top 5)
Assets/Capital, as of 01/07/2014, USD bn
Profit, as of 01/07/2014, USD mln
Bank BelVEB
30,00
BPS-Sberbank
30,00
Priorbank
40,00
Belarusbank
40,00
70,00
Belagroprombank
0,00
20,00
40,00
60,00
Source: National Bank of the Republic of Belarus
Source: National Bank of the Republic of Belarus
Deposits, as of 01/07/2014, USD bn
Lending, as of 01/07/ 2014, USD bn
Source: National Bank of the Republic of Belarus
Source: National Bank of the Republic of Belarus
11
www.belarusbank.by
80,00
Belarusbank Financials (IFRS)
According to IFRS
USD million
(in equivalent)
2010
2011
2012
2013
Assets
14 967.1
10 551.5
13 515.9
14 960.6
Equity
1 379.9
1 628.7
2 041.1
2 136.9
193.7
(306.1)
257.9
92.7
Customer deposits
8 729.7
6 227.9
8 650.8
9 494.1
Loans to customers
10 268.5
4 922.6
7 708.6
9 270.6
88 800
89 600
86 045
90 900
14.27
16.08
17.28
15.90
Net profit
Corporate clients (number)
CAR, %
Comments
Assets Dynamics, USD mln. (in equivalent)
Net Profit Dynamics, USD mln. (in equivalent)
12
www.belarusbank.by
Belarusbank
International Business
13
www.belarusbank.by
International Trade
Belarusbank’s Share in Foreign Trade
of the Republic of Belarus
Belarusbank Customers’ Export and Import
Export
Import
Export, USD bn
The Republic of Belarus
Belarusbank
Share
Import, USD bn
The Republic of Belarus
Belarusbank
Share
2010
2011
2012
2013
29.9
9.5
46.7
12.3
51.7
10.9
43.9
10.2
32%
27%
21%
23%
2010
2011
2012
2013
37.4
9.3
48.3
12.9
48.8
12.0
45.6
9.4
25%
27%
24%
21%
14
Belarusbank’s share in servicing of the foreign trade of
the Republic of Belarus – 22%
www.belarusbank.by
External Financing in Belarusbank’s Funding
Structure of Belarusbank’s Funding Base as of 01.07.2014
12%
88%
Internal Sources
Foreign Funding
Comments
Belarusbank does not have any late payments towards nonresident creditors
15
www.belarusbank.by
Long-term funding
Tied financing (including ECA-covered loans)
Cooperation with ECAs
Austria
Belgium
China
Czech Republic
Denmark
Finland
France
Germany
Hungary
Italy
Japan
Norway
Poland
Russian Federation
Slovakia
Slovenia
Switzerland
Turkey
16
www.belarusbank.by
DCM / Deal
Tombstones
2006 -2012
Long-term
funding
Some long-term projects financed with ECA cover during last 5 years
attracted since 2008 to 2013
Economic Sector
Loan Agreements amount, USD mln
in equivalent
Transport
400
Construction
300
Woodworking industry
280
Machinery & Metallurgy
260
Light & Food industry
240
Petrochemicals
170
Agriculture
160
Energetics
150
TOTAL: 1 960
17
26
www.belarusbank.by
Short-term financing
Foreign Banks’ Credit Lines
for Trade Finance Operations:
Geography of Cooperation
Trade Financing Dynamics
Austria
Belgium
Denmark
France
Finland
Germany
Italy
Kazakhstan
Latvia
Lithuania
Netherlands
Poland
Russian Federation
Sweden
Switzerland
18
www.belarusbank.by
Major partner banks in Germany
Belarusbank Today
Long-term financing volumes (USD mln)
Bank
***
***
***
***
***
***
***
***
***
Deutsche Bank
Total
1253,5
19
www.belarusbank.by
International awards
The Banker highly rated the Belarusbank’s brand value placing it 480th in The Top 500 Banking
Brands list
Belarusbank has become the best in Belarus in nomination Best Banks of the emerging market of
the Central and Eastern Europe in 2009, 2010 and 2013
The Banker appreciated Belarusbank as the best bank of Belarus in 2010. According to the
Banker’s overview results for 2013 Belarusbank occupied 399 place in the world and is in the list of
25 largest banks of the Central and Eastern Europe by Tier 1 Capital.
In the competition Award for Achievement Belarusbank has become the Best Bank of the Republic
of Belarus
Belarusbank has become the best bank of Belarus in nomination Best Bank of the Central and
Eastern Europe and the CIS
EMEA recognized Belarusbank as “Best bank in Belarus”, “Best investment bank in Belarus”, “Best
broker in Belarus” in 2011, 2013 and as “Best bank in Belarus”, “Best investment bank in Belarus"
in 2012
Belarusbank has won an award Highly Commended of the Trade & Forfaiting Review in the
nomination Deals of the Year in 2011 and 2013
20
www.belarusbank.by
What do we do to make your business happen ?
 Short-term trade financing
 Syndicated Loans
 Long-term financing
 Credit Linked Notes
 Forfaiting
 Bilateral Loans
 Leasing
 Eurobonds
 FX Trade
 And much more…
21
www.belarusbank.by
Doing business in Belarus.
Experience and advices of a bank
13
www.belarusbank.by
Challenges of the local market
 Identifying a partner
 Investing in a tailor-made offer
 Winning a beauty contest
 Engineering a satisfactory financing scheme
 Strengthening relationship alongside with deliveries
 Identifying a next partner
21
www.belarusbank.by
Engineering a satisfactory financing scheme
 Financing 100% of deliveries and some part of the local cost if any
in most cases necessary
 Check a possibility of getting Euler-Hermes cover well in
advance
 Be flexible and when necessary try multi-sourcing, change the
origin of the exported goods, split the contract to smaller parts
 For having a happy story you need asp. the full team on board,
i.e. the Exporter’s and an experienced Importer’s banks
 Do not hesitate to involve the Importer’s bank at the early stage –
they are friendly, helpful with following the local rules and
regulations. The Importer relies a lot on his home bank.
 We are interested your business happen !
21
www.belarusbank.by
What can we do and what we need to foster our businesses?
 Defend our right to (a better) life
 Euler-Hermes to play a new role and its basic requirements to be
softened
 German financial institutions to increase business with Belarus
 Multinational German companies are most welcome, Mittelstand
to follow
 Do not be afraid of risks – evaluate and insure them properly
 New bilateral or EU-umrelled programs to support PPP will
produce more positive effect than strings or sanctions
21
www.belarusbank.by
Why Belarusbank is the right choice in supporting your business ?
 We can what other banks are not able to do
 Longstanding and a perfect track record
 Mentality of a reliable Borrower and confidence of Lenders
 Incomparable to any other bank funding possibilities
 Strong support of our clients in any situation
 Experienced stuff
 Easy to reach in Germany
21
www.belarusbank.by
Contacts
HEAD OFFICE
REPRESENTATIVE OFFICE IN
GERMANY
International Business Department
Elena Trofimovich
Head of Trade and Structured Finance
18, Dzerzhinski Av.,
220089 Minsk, Belarus
Tel.: + 375 (17) 309 06 68
Fax: + 375 (17) 289 37 82
E-mail: elena.trafimovich@belarusbank.by
23
Nikolai Vavokhin
43, Oeder Weg
D-60318 Frankfurt am Main,
Germany
Tel.: +49 (69) 5979 35 63
Fax: +49 (69) 5979 47 44
E-mail: info@belarus-bank.de
www.belarusbank.by
Since 1922
Спасибо !
Vielen Dank !
Frankfurt am Main, September 9, 2014
RELIABLE PARTNER
Since 1922
Спасибо за внимание !
Vielen Dank für Ihre Aufmerksamkeit !
Frankfurt am Main, September 8, 2014