JointStock Commercial Mortgage Bank IPOTEKA BANK General Information
Joint-Stock Commercial Mortgage Bank ”IPOTEKA BANK”
General Information 38 branches 116 mini banks 515 retail service offices 80 international money transfer points 33 exchange offices Clients: 78, 7 ths. 1 673 ths. legal entities and entrepreneurs individuals Ratings: B+/B/stable Standard and Poor’s B 2/stable Moody’s JSCMB “IPOTEKA BANK" 2
Corporate Governance Structure External Audit affirms General Meeting of Shareholders Revision Commission selects Human Resources Commission Audit Committee appoints recommendations, reports appoints JSCMB “IPOTEKA BANK" Supervisory Board appoints recommendations, reports Department of Internal Audit Risk Management Committee reports Management Board reports Department of Risk Management 3
The List of Shareholders Structure of Shareholders (as of 1 st August 2015, in %) Direct share of the State: The Ministry of Finance of the Republic of Uzbekistan The State Committee of the Republic of Uzbekistan for Privatization, Demonopolization and Development of Competition «Uz. Gaz. Oil» Ltd. 25, 02 23, 65 1, 37 25, 00 JSC «Uz. Trans. Gaz» 5, 80 JSC «Uzmetkombinat» 5, 64 JSC «AMMC» 4, 90 JSC «Uzbekistan Railways» 4, 74 UC «Chinobod Neft Bazasi» 4, 40 The Department for Investments of Tashkent city municipality 3, 57 JSIC «Uzagrosugurta» 3, 20 JSC «Uzbekenergo» 3, 05 JSIC «Kafolat» 1, 50 SIC «Uzbekinvest Hayot» 1, 09 Other less than 1 %: Individuals Corporate entities JSCMB “IPOTEKA BANK" 12, 09 5, 41 6, 68 4
Supervisory Board First Name, Name Position Date of Appointment to the Board The Chairman of the Board The First Deputy Minister of Economy of the Republic of Uzbekistan 2013 Ahadbek Haydarov Deputy Chairman of the Central Bank of the Republic of Uzbekistan 2013 Ayubhon Kamalov Head of the Unit for coordination of the state shares in the banks’ capital, Ministry of Finance of the Republic of Uzbekistan 2010 Akromjon Abduhamidov Chief of Department of the Center for management of state assets, The State Committee of the Republic of Uzbekistan for Privatization, Demonopolization and Development of Competition 2014 Botirjon Turayev Head of «Uz. Gaz. Oil» Ltd. 2012 Yulchi Shakirov First deputy Head of «Uz. Gaz. Oil» Ltd. 2012 Larisa Zubrilova Chief Accountant of «Uz. Gaz. Oil» Ltd. Giyosiddin Najmiddinov Head of legal department of «Uz. Gaz. Oil» Ltd. 2014 Director of Center for Research of Problems of Corporate Governance and the Securities Market 2011 Batir Hodjaev The independent Board member Igor Butikov JSCMB “IPOTEKA BANK" 2012 5
Growth Dynamics in 2012 -2014 (in bill. UZS) 3, 500 11% 26% 3, 000 32% - Assets Loans 2012 JSCMB “IPOTEKA BANK" 2013 2% 1, 900 66% 1, 866 1, 305 500 21% 1, 543 1, 000 44% 2, 329 1, 500 2, 494 2, 932 2, 000 45% 1, 895 55% 3, 262 2, 500 Customer deposits 2014 6
Market Position 3% 2% 7. 56% 6. 79% 4% 7. 40% 6. 94% 7. 63% 5% 6. 59% 6% 8. 09% 7% 8. 49% 8. 13% 8% 1% 0% Assets Loans 2012 2013 Customer deposits 2014 * Source: The Analytical Report of the Uzbekistan’s Rating Agency «Ahbor-Rating» JSCMB “IPOTEKA BANK" 7
The main Market Positions Place among commercial banks of Uzbekistan 2010 2011 2012 2013 2014 Total Assets 6 = 6 4 = 4 5 Loan Portfolio 6 5 = 5 Investment Portfolio 4 7 = 7 Employees 5 4 = 4 = 4 Customer deposits 6 = 6 5 = 5 Deposits of Individuals 9 7 6 = 6 Share Capital 7 8 7 = 7 Branches 7 = 7 = 7 = 7 = 6 5 5 5 * Source: The Analytical Report of the Uzbekistan’s Rating Agency «Ahbor-Rating» JSCMB “IPOTEKA BANK" 8
Correspondent Banks Limits of outstanding amounts at the correspondent accounts in mill. USD Limits to conversional operations In mill. of national currencies in mill. USD or equivalents 30 JP Morgan, New York 60 Commerzbank AG, Frankfurt on Main 15 25 Hypo. Vereinsbank (Uni. Credit Group), Munich 1 1 Landesbank Berlin AG, Berlin 1 1 The Bank of Tokyo-Mitsubishi UFJ Ltd, Tokyo 1 100 Raiffeisen Bank International AG, Vienna 30 15 Promsvyazbank, Moscow 0, 2 2 Asia Invest Bank, Moscow 8 400 8 ZAO Raiffeisenbank, Moscow 1 National Bank of Uzbekistan, Tashkent 20 5 Asaka Bank, Tashkent 20 5 Uzsanoatqurilishbank, Tashkent 10 JSCMB “IPOTEKA BANK" 15 9
Financial Results (In thousands of Uzbekistan Soums, IFRS) 2012 2013 2014 Total Assets 2 328 860 2 931 916 3 262 348 Loan Portfolio 1 304 527 1 894 961 2 493 570 Total Liabilities 2 161 437 2 731 579 3 012 570 Total Equity 167 423 200 337 249 778 Interest income 128 100 172 263 232 686 Interest expense (52 150) (73 388) (102 989) Net interest income 75 950 98 875 129 697 Provision for impairment of loans (1 472) (5 087) (27) Fee and commission income 98 909 125 259 143 043 Fee and commission expense (14 130) (18 729) (22 872) (144 091) (171 826) (205 722) Profit before tax 40 665 45 561 64 195 Income tax expense (5 126) (5 164) (11 434) Total comprehensive income for the year 35 551 39 336 51 122 Administrative and other operating expenses JSCMB “IPOTEKA BANK" 10
Growth of income and expenses 50% 40% 30% 20% 10% 0% Interest income Fee and commission income 2012 JSCMB “IPOTEKA BANK" 2013 Net interest income 0% Interest expense Fee and commission expense Administrative and other operating expenses 2014 11
Loan Portfolio: general information Key figures 31. 12. 2012 31. 12. 2013 31. 12. 2014 1 321 622 1 927 883 2 521 157 Average weighted interest rate (in %) 10, 26% 10, 19% 9, 94% Average weighted term (in months) 51, 24 53, 49 54, 04 Total provisions / Total loans (in %) 1, 39% 1, 15% 0, 71% Impaired loans / Total Loans (in %) 3, 38% 2, 72% 2, 98% Total Loan Portfolio (in mill. of UZS) JSCMB “IPOTEKA BANK" 12
Diversification of Loan Portfolio by Collateral (in mill. UZS) Collateral Type 31. 12. 2012 31. 12. 2013 31. 12. 2014 Guaranties 810 635 61, 34% 1 092 256 56, 66% 1 243 343 49, 32% Real estate 373 107 28, 23% 547 437 28, 40% 790 741 31, 36% Transport vehicles 110 000 8, 32% 186 275 9, 66% 245 777 9, 75% 9 054 0, 69% 95 979 4, 98% 173 461 6, 88% 16 462 1, 24% 4 465 0, 23% 67 157 2, 66% 2 364 0, 18% 1 470 0, 08% 0, 674 0, 03% 1 321 622 100% 1 927 882 100% 2 521 157 100% Equipment and materials Cash and cash equivalents Unsecured Total JSCMB “IPOTEKA BANK" 13
Attracted lines for economic development JSCMB Ipoteka bank attracted the following lines of financing, which are directed to the realization of important projects: • Line funding ICD amounting to 10 million US dollars for the production of building materials • Credit line of Landesbank Berlin AG (Germany) in the amount of 50 million Euros to finance small business projects • The credit line of Commerzbank AG (Germany) in the amount of 100 million Euros to finance small business projects • The credit line of Commerzbank AG (Germany) in the amount of 28 million Euros to finance projects AMMC • Line of IDA financing in the amount of 2 million US dollars for the cultivation and processing of fruits and vegetables • Line of IFAD financing in the amount of 500 thousand US dollars for the cultivation and processing of fruits and vegetables in Surkhandarya region JSCMB “IPOTEKA BANK" 14
Projects financed by the Bank «Khandiza» mine field enriching factory is located in Sariosiyo district of Surhandarya region and has capacity for processing of 650 thousand tons of ore per year. The plant started its operation in 2010 year. The project cost is 154, 3 million USD. The amount of the received bank loan is 100, 9 million USD. 922 new job places were created. The “Khandiza” mine enriching factory has crushing, flotation, thickening and filtration sections that prepare copper, zinc and lead concentrates. The concentrates are processed in factory’s melting plant and finished products such as copper, zinc and precious metals are prepared from them. JSCMB “IPOTEKA BANK" 15
«Angren Pipe Plant» unitary enterprise Angren Pipe Plant is located in a special industrial zone. It was commissioned in December 2013. Cost: 35. 5 million USD Bank loan: 25. 2 million USD Production capacity: 8 thousand tons of different size copper pipes. As a result of the commissioning of the plant 110 new job places were created and 250 people were provided with jobs. JSCMB “IPOTEKA BANK" 16
Jizzakh region Cement Plant Jizzakh regional cement plant was commissioned in March 2014. The cost of the plant is 120, 3 million USD. The bank provided loan in the amount of 74, 2 million USD. The production capacity of the plant is 350 thousand tons of white cement or 760 thousand tons of portland cement. As a result of the project 430 people were employed. The technological part of the plant was constructed by “DAL Teknik” Turkish company on “turn key” basis. JSCMB “IPOTEKA BANK" 17
Projects financed at the account of ICD’s funds JSCMB “IPOTEKA BANK" 18
Funding Sources 100% 90% 80% 2. 9% 7. 2% 23. 1% 0. 6% 3. 3% 6. 8% 25. 0% 70% 1. 2% 4. 7% 1. 0% Customer accounts 7. 7% 28. 4% 60% Borrowings from government, state and international financial institutions Total equity 50% 40% 30% 66. 3% 63. 7% 58. 2% Due to other banks 20% 10% 0% 2012 JSCMB “IPOTEKA BANK" 2013 2014 Debt securities in issue and other liabilities 19
Capital Ratios RWA and Capital ratios 2012 2013 2014 1 446 017 2 037 804 2 482 793 Tier 1 capital 136 910 204 637 255 422 Tier 2 capital 35 551 24 346 17 079 Total capital 172 461 228 983 272 501 Tier 1 capital ratio (min. 4%) 9, 47% 10, 04% 10, 29% Total capital ratio (min. 8%) 11, 93% 11, 24% 10, 98% (in mill. UZS) Risk weighted assets JSCMB “IPOTEKA BANK" 20
Dividend policy Nominal price of 1 share (in UZS) Dividend per share (in UZS) 3578 1, 461. 5 51, 8% 1, 209. 5 3500 26, 8% 3000 56, 3% 2822 853. 8 51, 5% 535. 0 31, 3% 756, 0 672. 0 2500 26, 8% 2150 31, 3% 2000 31, 5% 26, 5% 1500 2013 2014 Ordinary shares JSCMB “IPOTEKA BANK" 2015 Preference shares 1000 2013 2014 2015 21
Dividends paid to shareholders from 2010 to 2014 Dividends paid (income, in %) № Year results Ordinary shares Total Breakdown Preference shares Total 4 1 2010 40 36 61 5 2 2011 30 25 50 5 3 2012 31, 5 26, 5 51, 5 0 4 2013 31, 3 56, 3 0 5 2014 JSCMB “IPOTEKA BANK" 26, 8 51, 8 Notes Breakdown 25 In form of cash 36 In form of capitalization 25 In form of cash 25 In form of capitalization 25 In form of cash 26, 5 In form of capitalization 25 In form of cash 31, 3 In form of capitalization 25 In form of cash 26, 8 In form of capitalization 22
Expected financial results in 2015 Total assets 3, 2 trill. UZS 1, 2 х 2014 Loan Portfolio Above 3, 9 trill. UZS 2015 Total Equity 249, 8 bill. UZS > 1, 6 х 2014 JSCMB “IPOTEKA BANK" > 1, 2 х 2, 5 trill. UZS 2014 Above 3 trill. UZS 2015 Customer accounts To 395 bill. UZS 2015 > 1, 2 х 1, 9 trill. UZS 2014 Above 2, 2 trill. UZS 2015 23
The main financial ratios until 2016 Financial Ratios Net Profit Growth ROE Market shares 22% ≥ 25% per year 2014 2015 -2016 20, 5% ≥ 8% 6, 6% Total Assets ≥ 20% ~ 10% 8, 9% 2014 2015 -2016 Mortgage Loans Cost Income Ratio 75% ≤ 70% 2014 2015 -2016 ≥ 12% 9, 6% CAR JSCMB “IPOTEKA BANK" 10, 9% ≥ 12% Retail Services 2014 2015 -2016 * Source: «Ahbor-Rating» 24
Thank you for your attention! JSCMB “IPOTEKA BANK"
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