BUSINESS OVERVIEW 1Q 2020 FOR - - PowerPoint PPT Presentation

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BUSINESS OVERVIEW

FOR FINANCIAL INSTITUTIONS

1Q 2020

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CONTENTS

• Bank overview, shareholders and management.…………..….……………………………………………

4

• Main business segments……...………………………………………………………………………………..

7

• Bank’s strategy….…………………………………………………………………………………………………………..
• Clients………………………………………………………………………………………………………........................
• Corporate banking …………………………………………………………………………………………………………
• Trade finance………………..………………………………………………………………………………………………
• International business….…………………………………………………………………………………………………..
• Track records with ECAs, OPIC & EXIAR………………………………………………………………………………….
• SME lending……….………………………………………………………………………………………………………..
• Retail banking…….…………………………………………………………………………………………………………
• Plastic cards, deposits and e-banking overview…………………………………………………………………….…..
• Financial rehabilitation of INVESTTRADEBANK…………………………………………………………………………….

8 10 11 12 13 14 16 17 18 19

• Regional presence…………..…….………………………………………………………………………………

21

• Full customer service for financial institutions “Bank for Banks”………………………………………

23

• “Bank for Banks” programm..……………………………………………………………………………………………..
• Trade finance with CIS/SCO………………………………………………………………………………………………
• Cooperation with EXIAR…………………………………………………………………………………………………..
• Arrangement of syndicated loans…………………………………………………………………………………………

23 24 27 29

• Capitalization and profitability ratios….……………………………………………………………………….

32

• Balance sheet………………………………………………………………………………………………………………..
• International and domestic funding………………………………………………………………………………………..
• Key financial ratios…………………………………………………………………………………………………………..
• Capital adequacy…………………………………………………………………………………………………………….

33 34 35 36

• Liquidity management…………………………………………………………………………………………....

38

• Contacts…………………………………………………………………………………………………………….

39

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BANK OVERVIEW, SHAREHOLDERS AND MANAGEMENT

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MARKET POSITIONING TKB IS A UNIVERSAL FEDERAL-SCALE BANK

CORE BUSINESS FOCUS: TOTAL ASSETS AND LOANS

(RUBbn)

TOTAL EQUITY

(RUBbn)

IN THE MARKET SINCE 1992

In October 2015 TKB started financial rehabilitation

• f

Investtradebank (ITB). Since February 2016 ITB entered the banking group of TKB.

Сurrency Rates (RUB/USD): 2017 – 57.6002, 2018 – 69.4706; 2019 – 61.9057

OUR GROWTH AND SIZE IN RUSSIA

(Source: Profile Magazine and Expert RA)

TKB TKB+ITB

 Assets

#45 #28

 Retail loans

#53 #43

 Equity

#59 #59

 Factoring

#16 (Expert)

•  Mortgage

#17 (Rusipoteka.ru)

•  SME Loans

#12 (Expert)

•  Cooperation with EAEU/CIS

Environment

#3

• ($4.4 bn)

($2,1 bn) ($0.3 bn) ($0.3 bn)  Corporate Lending

• Loans: 43.9 RUB bn (26.4%)

 SME Lending

• Loans: 63.6 RUB bn (38.1%)
• 28 000 corporate and SME customers

 Since 2010 TKB gradually increased retail exposure

• Loans: 59.2 RUB bn (35.5%)
• 693 799 retail customers

TOP-10 AMONG RUSSIAN PRIVATE BANKS

TKB IS NOT INCLUDED IN ANY SANCTIONS LIST

146,4 122,3 130,3 249,4 257,2 275,4 31.12.2017 31.12.2018 31.12.2019

Total Loans Total Assets

20,0 18,3 18,9 26,3 21,1 21,1 31.12.2017 31.12.2018 31.12.2019

Tier 1 Tier 1+Tier 2

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OWNERSHIP STRUCTURE

Group of Yuri Berezovsky Financial investors Managing shareholders Family 17,5% 9,8% 0,2% 6,1% 18,3% 4,2% 2,7% 1,0% 8,2% 8,2% 8,1% 7,6% 8,1%

RIGVANS LLC



Insurance services and financial consulting



Based in Moscow, Russia

Due to geopolitical situation in September 2015 the Board of Directors of EBRD and IFC decided to suspend investments in Russia and exit from Russian projects. In July 2018, the shares of EBRD and IFC were purchased by financial investors.

YURI BEREZOVSKY



Shareholder since 2020

TATYANA ORLOVA + DAK LLC



Member of BoD



Shareholder since 2018

ELCRIP LLC



Market trends research



Based in Moscow, Russia

LIBERTY 1 LLC



Investment activities



Based in Moscow, Russia

TSENTRALIYA LLC



Marketing research and financial consulting



Based in Moscow, Russia

VBB Invest LLC



Insurance services and financial consulting



Based in Moscow, Russia

OTHER



Minority stakes

GOIYA Service LLC



Marketing research and wholesale



Based in Moscow, Russia

OLGA GRYADOVAYA



Chairman of the Board of Directors



Management of the Bank since 2000



Shareholder since 2000

LEONID IVANOVSKI



Member of BoD



Shareholder since 2000

TOP-MANAGEMENT OF BANK EVGENII IVANOVSKI



Chairman of the Management Board



Shareholder since 2013

Financial investors

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CLEAR AND TRANSPARENT GOVERNANCE

Alexey Vorobiev

State Development Corporation “VEB.RF” Credit Committees Risk Management Committee Limit Committee

BOARD OF DIRECTORS

Evgenii Ivanovskii,

Chairman of the Management Board 15+years of experience in finance

MANAGEMENT BOARD

Leonid Ivanovski,

22 years of experience as Notary public

Boris Kazakov,

30+years of experience in finance, former CEO of NorNIckel Technological Committee

Vladimir Mau

Rector of the Russian Presidential Academy of National Economy and Public Administration

Anton Selivanovski

Associate Professor, PhD in Law, Experience in PWC, Head of Audit and Risk Committee of TKB Internal Audit Committee Audit & Risk Committee Corporate Governance and Remuneration Committee Bank Board (Vice-presidents)

GENERAL SHAREHOLDERS MEETING

Roman Mironchik

10+ years of experience in investment companies

• independent directors

Asset Liability Committee Tariff Committee

Olga Gryadovaya,

Chairman of the Board of Directors (Professor of Economics 70+ scientific publications)

Tatiana Orlova

Member of the Management Board

10+ years of experience in finance

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MAIN BUSINESS SEGMENTS

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STRATEGY OF THE GROUP: SUSTAINABLE DEVELOPMENT AND DIVERSIFICATION 1/2

Corporate MSME Retail



Businesses with annual sales

• ver RUB1bn and number of

employees more than 250



Businesses with annual sales less than RUB1bn and number of employees less than 250*



Mass и mass affluent Main clearing and anchor (home) bank for corporate clients Main clearing and anchor (home) bank for SME clients Monoliner for individual clients



Upper medium corporate businesses



Maximum single loan limit: up to RUB600mln



Marketable collateral



26.4% of total loan book



SME and micro businesess



Maximum single loan limit: up to RUB600mln



Marketable collateral



38.1% of total loan book



35.5% of total loan book



Main target segment: residents

• f cities with population of

500K+



Single loan limit: up to RUB10mln

Business focus: Customer profile: Share: Summary:

* Small business, incl. microlending with annual turnover less than RUR400mln 

Low industry concentration (diversification) based on the

• wn experience



Core focus in lending



Digital banking development



Building market strength in mortgage lending



Digital banking development



Products range extension



Mortgage loans securitization



Low industry concentration (diversification) based on the

• wn experience



Lending via cooperation on the financial markets

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STRATEGY OF THE GROUP: KEY PRIORITIES 2/2

COMPETITIVE POSITION

• High rankings in mortgage lending
• Flexible IT platform
• Stable position on the corporate

lending markets

• Brand awareness in the regions of

Group’s presence

• Brand awareness in EAEU/CIS/SCO

countries

SOURCE OF CAPITAL

• Subordinated loans
• Additional shares issuance
• Profit generated by the Group

SOURCE OF FUNDING

• Deposits from individuals: constant

updating of deposit products – focus

• n commercial customers
• Bond issuance stock programs
• Deposits from legal entities:

attraction (win-back) for customer service due to expansion of product line and service quality increase

• Securitizations (RMBS and ABS)

9

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BANK CLIENTS

АФЖС

РОСНЕФТЕГАЗ

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CORPORATE BANKING OF TKB GROUP

LOANS BY INDUSTRY CORPORATE LOANS AS OF 31 DECEMBER 2019 AMOUNTED TO 107,5 RUBbn

19% 15% 15% 11% 9% 5% 4% 4% 3% 3% 3% 2% 2% 2% 1% 1%

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CORPORATE BANKING: TRADE FINANCE



TKB offers a wide range of comprehensive trade finance products, including:

• letters of credit (with financing / discounting options)
• guarantees / standby LCs
• bilateral trade-related loan facilities (including PXF)



TKB has developed various financing structures aimed at arranging medium- to long-term (3 to 7 years) ECA-covered financing to support imports of capital goods into Russia



TKB supports Russian exports to CIS and EEU under EXIAR cover

TRADE FINANCE FOCUS COOPERATION WITH ECAs

TKB established long-term relationship with major ECAs worldwide:

(1) Excluding syndicated term loans (2) Includes perfumery, clothing, shoes, pharmaceutical, textile, printing, oil products & metals

TRADE FINANCE BY INDUSTRY

As of 31December 2019

TRADE FINANCE TURNOVER(1)

(2)

10% 52% 38%

Food & agricultural products Machinery, equipment & vehicles Consumer non-durables (non-food)

90 69 67 54 137 #125 #136 #122 #76 #79

2015 2016 2017 2018 2019 Turnover, USD M # Number of deals

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INTERNATIONAL BUSINESS: BANKS - PARTNERS

REPUTATION OF A RELIABLE AND PROFESSIONAL PARTNER ENABLES TKB TO SUCCESSFULLY DEVELOP COOPERATION WITH BANKS ALL OVER THE WORLD

BNP-Paribas Societe Generale CITI UBI Banca Monte dei Paschi di Siena UniCredit Intesa SanPaolo Banca popolare dell’Emilia Romagna Banco Popolare Group Banca Popolare di Sondrio RBI UBS Credit Suisse BCP Deutsche Bank Commerzbank AKA Export Finance Bank LBBW Helaba UniCredit Germany BHF Bank и другие Svenska Handelsbanken KBC Bank NV ING Bank Nordea Bank CSOB

ICBC Bank of China Harbin Bank Bank of Communications

Ziraat Bank Akbank Kuveyt Türk Aktif Bank

KEB HANA BANK Kookmin Bank

Vietcombank

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CORPORATE BANKING: TRACK RECORDS WITH ECAs & OPIC 1/2

TKB IS RECOGNIZED BY VARIOUS ECAS WHICH ENABLES TKB TO SUPPORT MEDIUM & LONG-TERM INVESTMENT PROJECTS OF ITS CUSTOMERS

USD 885 000 5 year loan Equipment & Services

USD 885 000 5 years loan Equipment & Services 2004

USD 6 000 000 5 year loan Construction Services

USD 885 000 5 years loan Equipment & Services 2004

EUR 2 500 000 5 year loan Equipment & Services

USD 885 000 5 years loan Equipment & Services 2004

EUR 2 300 000 3.5 year loan Equipment & Services EUR 1 200 000 5 years loan Power Equipment USD 10 000 000 3 year facility Agricultural Commodities EUR 1 200 000 4 year loan Equipment & Services USD 10 000 000 1 year loan Agricultural Commodities EUR 800 000 5 year loan Equipment & Services EUR 7 500 000 5 year loan Equipment & Services USD 15 000 000 7 year loan SME Lending EUR 1 300 000 5 year loan Plastic Packing Equipment EUR 1 800 000 5 year loan Packing Equipment SEK 30 000 000 5 year loan Wood-working Equipment EUR 850 000 5 year loan Plastic Packing Equipment EUR 6 800 000 5 year loan Oil Production Plant EUR 1 000 000 5 year loan Plastic Packing Equipment EUR 1 200 000 5 year loan Aviation Equipment EUR 5 000 000 5 year loan Power Equipment EUR 1 100 000 3 year loan Food Equipment EUR 15 500 000 5 year loan Power Equipment USD 51 000 000 7 year loan Warehouse Complex construction EUR 1 500 000 3.5 year loan Mineral Water Equipment EUR 1 600 000 5 year loan Metal sawing and drilling equipment 2004 2005 2006 2007 2007 2007 2007 2007 2007 2007 2007 2008 2008 2008 2008 2008 2008 2010 2011 2012 2012 2012 2013 2013

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CORPORATE BANKING: FINANCING RUSSIAN EXPORT WITH EXIAR 2/2

RUB 30 000 000

Financing of sulfur export deliveries to Singapore and UK

RUB 10 000 000

Financing of tea export deliveries to Belarus

RUB 15 000 000

Financing of mining equipment export deliveries to Kazakhstan

USD 207 730 Financing of GAZ

vehicles export deliveries to Nicaragua

RUB 3 000 000

Financing of crane export delivery to Belarus

USD 232 000

Financing of beet molasses export deliveries to Turkey Financing of designation equipment for metal industry export delivery to Spain

2015 2015

USD 500 000

Financing of beet molasses export deliveries to Turkey

2015 2015

RUB 22 000 000

(2 projects)

Financing of mining equipment export deliveries to Kazakhstan

2016 2015 2015 2016

RUB 15 000 000

Financing of mining equipment export deliveries to Kazakhstan

2017 2016

EUR 66 900 RUB 45 000 000

Financing of VAZ spare parts export deliveries to Cuba

2016

USD 700 000

(2 projects)

2017

Financing of GAZ, VAZ and KAMAZ vehicles export deliveries to Nicaragua

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SME LENDING: OVERVIEW

DEVELOPMENT OF MICRO AND SMALL BUSINESS LENDING



Since 2006 ТКБ started to increase SME’s lending



#12 by SME loans in Russia



38.1% of total loan portfolio – RUB 63.6 bn

PARTICIPATION IN STATE SME SUPPORT PROGRAMS:

 Participant in State Support Programme of Ministry of Agriculture  Participant in State Support Programme of Ministry of Economic Development

PARTICIPATION IN STATE SME DEVELOPMENT PROGRAMS:

 RSMB Corporation Guarantee program exposure – RUB 1.95 bn

KEY SEGMENTS

MARKETING AND PRODUCT COMPONENTS:

 Changes of product parameters in order to increase loyalty of existing

customer portfolio

 Development and implementation of “product bundles” for all segments (small

and micro)

 Development and introduction of multichannel marketing strategy: internet,

• utdoor, direct sales, partner network, etc.

BUSINESS DEVELOPMENT:

 Transition to new operational model in all regional offices  Development of combined model (scoring + verification) for micro business  Business process optimisation (further development of Siebel CRM for MSME

sector, revision of regulations and more)

 Increasing brand recognition in MSME sector  Increasing CSS sales to clients  ACRA assigned the highest rating AAA(ru.sf) to the collateralized bonds

issued within the SME loans securitization transaction

• f

TRANSKAPITALBANK

Currency Rates (RUB/USD): 2019 – 61.9057

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RETAIL BANKING

OVERVIEW

(RUB bn)

RETAIL PORTFOLIO BY PRODUCT

2019 VS 2018

RATES ON RETAIL DEPOSITS RATES ON RETAIL LOANS RETAIL BANKING DEVELOPMENTS



Strong focus on mortgages:

• #18 by volume of mortgage portfolio
• New products: revolving-line mortgage &

commercial mortgages, floating rates mortgages

• 3 successfully placed RMBS transactions



Larger consumer loans continue to be available to borrowers participating in payroll card program & employees of the corporate customers

Outer circle = 2019 Inner circle = 2018

Note: Substantial growth of retail deposits is due to acquisition of ITB (1) Rusipoteka as of 1 January 2020

(1) Сurrency Rates (RUB/USD): 2017 – 57.6002, 2018 – 69.4706; 2019 – 61.9057

91% 9% 92% 8% Mortgage Other loans 13,4% 12,2% 10,9% 15,6% 18,7% 19,5% 16,3% 16,7% 16,0% 2017 2018 2019 Mortgage Car loans Consumer loans 8,5% 7,5% 7,3% 2,5% 2,7% 3,0% 1,5% 1,3% 1,4% 2017 2018 2019 RUR USD EUR 56,0 51,6 59,2 109,5 118,3 127,5 2017 2018 2019 Retail loans Retail deposits

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PLASTIC CARDS, DEPOSITS AND E-BANKING OVERVIEW

 Principal member of Visa Int. and MasterCard Worldwide  Member of the National System of Payment Cards  As of 31 December 2019 - 196 thousand cards in circulation  Own card and terminal processing centers  Own terminal network (more than 670 payment terminals). Acceptance of payments in favor of more than 1100 public institutions (hospitals, policlinics, multipurpose

centers, schools, etc.) and commercial organizations (insurance companies, etc.)

 ТОP-15 by collector services

PREMIUM CLASS CARDS – VISA INFINITE CARD provides exclusive access to special conditions and discounts in the sphere of trade and service all over the world PAYROLL CARDS – Debit card for receiving a salary within the contract with employer DEBIT CARDS – Debit card for any bank client CORPORATE CARDS – Debit cards for corporate customers INSTANT-ISSUE CARD – Instant-issue cards for payments to individuals within the projects with the Bank partners CREDIT CARDS – Bank card with credit limit and grace period for any bank client OVERDRAFT CARDS – Bank card with overdraft for payroll customers with 2 month interest-free use of proceeds INTEREST INCOME CARD – Debit card with interest accrual on demand balance GOLD MILE – Debit card with loyalty program for travelling clients

CARD PRODUCTS FOR CLIENTS OVERVIEW: 18

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FINANCIAL REHABILITATION OF INVESTTRADEBANK

INVESTTRADEBANK (ITB)

Key facts in July 2018:

• 12 July – Financial Rehabilitation Plan (FRP) was updated & approved

for up to 2030

• 16 July – liquidity tranche of 19,5 RURbn was extended up to 2030, %rate

was reduced to 0,51%

• 16 July – 5 RURbn was received from the DIA by ITB (total financial

support amounted to 72,4 RURbn)

• 23 July – all DIA’s tranches were extended up to December 2030

FUNDING FOR ITB REHABILITATION

19,5 19,5 29,7 47,8 72,4

16.10.2015 01.04.2018 16.07.2018

FINANCIAL REHABILITATION PLAN – MAIN POINTS

• Management and recovery of distressed assets
• Moderate growth in lending and cross-sale of products
• Interest rate risk hedging via investments in the State

Federal Bonds in the amount of 72,4 RURbn for up to 2030 at 8%

• Guaranteed income from investments in securities (7.5%
• f the Bank's margin between the cost of the tranches

from DIA for ITB’s rehabilitation and the return on OFZ portfolio)

• Long-term tranches (0,51%)
• Short-term tranches (6,01%)

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REGIONAL PRESENCE

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St-Petersburg

MOSCOW

Perm Yekaterinburg Saratov Volgograd Novosibirsk Samarа Voronezh Penza Ivanovo,Kineshma Rostov-on-Don Tyumen

Маkhachkala

Bryansk Belgorod Vladimir Yaroslavl

Kostroma

Kazan Khabarovsk Barnaul Syktyvkar Kaluga,Obninsk Ryazan  Over 857K customers (individuals and corporate

customers) in 31 regions  77 points of sale:



HQ located in Moscow



2 branches



51 credit-cash offices + operational offices



22 additional offices



1 Mortgage Center 

49 cash advance offices



293 ATMs



2 138 payment terminals



2 408 card acquiring points

KEY FACTS

Krasnodar

REGIONAL PRESENCE (TKB + ITB)

Kaliningrad

Stary Oskol

N.-Novgorod

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FULL CUSTOMER SERVICE FOR FINANCIAL INSTITUTIONS «BANK FOR BANKS»

In 2019 Program “Bank for Banks” of TransKapitalBank became the winner of National Banking Award in the nomination “International Cooperation” NATIONAL

BANKING

AWARD

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FULL CUSTOMER SERVICE FOR FINANCIAL INSTITUTIONS «BANK FOR BANKS»

 Strong presence in the Russian and CIS financial markets  Creation of single settlement and payment space of the CIS  Participation in intergovernmental commissions: China, Kazakhstan, Uzbekistan, Tajikistan, Moldova, Afghanistan, Turkmenistan, Turkey,

Mongolia, Vietnam, UAE, India

 Creation of infrastructure for ensuring business interests of the Banks’ clients

TRANSKAPITALBANK – KEY PARTNER OF EAEU/CIS, SCO

 Multi-currency settlement business including national currencies  Deposit and conversion operations including electronic access to the own currency

liquidity via TKB FX platform, REUTER FXALL, BLOOMBERG FXGO

 Banknote operations. Purchase of the Bank’s of Russia coins from FI  Arrangement of syndicated loans for banks of the CIS countries  Russian export financing under insurance of EXIAR and under guarantees of

EBRD/IFC/ADB

 Financing of trade contracts via instruments of documentary business for

clients of partner banks including under own financing, financing lines of foreign banks and under EBRD/IFC/ADB guarantees

 Instant payments C2C/C2B via New payment platform “One Channel – All Russia”

PRODUCTS FOR BANKS-PARTNERS GEOGRAPHY OF INTERBANK COOPERATION

AZERBAIJAN ARMENIA BELARUS GEORGIA KAZAKHSTAN KYRGYZSTAN VIETNAM MOLDOVA TAJIKISTAN UZBEKISTAN TURKMENISTAN MONGOLIA UKRAINE TURKEY CHINA

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Issuance of Performance

• Guarantee. Foods deliveries to

Kyrgyzstan from Kazakhstan

2019

KZT 92 600 000

Financing of petrochemical products import to Mongolia from Russia

2017 - 2020

USD 51 562 640 (7 tranches)

LC confirmation with post

• financing. Dairy products

deliveries to Uzbekistan from Russia

2019

EUR 500 000

LC confirmation with post

• financing. Locomotive deliveries

to Uzbekistan from Russia

2019

USD 540 000 (2 tranches)

Financing of household equipment import to Mongolia from China

2019

USD 396 000

LC confirmation with post

• financing. Pharmaceutical

products deliveries to Uzbekistan from Slovenia

2019

USD 3 500 000

Financing of materials for liquid floor import to Belarus from Russia

2019

BYN 362 420 Trade related loan

2020

EUR 20 000 000 Tenor 3 months Trade related loan

2020

USD 2 000 000 Tenor 3 months Trade related loan

2020

USD 10 000 000 Tenor 3 months Trade related loan

2020

EUR 15 000 000 Tenor 3 months Trade related loan

2020

USD 7 800 000 Tenor 1.5 years

FULL CUSTOMER SERVICE FOR FINANCIAL INSTITUTIONS «BANK FOR BANKS» TRADE FINANCE WITH CIS/SCO

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Trade related loan

2019

USD 5 000 000 Tenor 1 year (2 tranches)

2019

USD 2 550 000 Tenor 1 year (2 tranches) Trade related loan

2019

USD 434 000 Tenor 1 year Trade related loan

2019

RUB 250 000 000 Tenor 9 months Trade related loan

2019

EUR 10 000 000 Tenor 1 year Trade related loan

Financing of petrochemical products import to Mongolia from Russia

2019

USD 488 700 Trade related loan

2019

USD 10 000 000 Tenor 6 months and 1 year (2 tranches) Trade related loan

2019

USD 10 000 000 Tenor 1 year (2 tranches) Trade related loan

2019

USD 2 000 000 Tenor 6 months

2017 - 2019

Equipment for renovation of turbines from Russia to Ukraine

USD 373 000 RUB 46 329 405

Financing of printing equipment to Belarus from Turkey

2019

EUR 198 770

Financing of equipment to Belarus from Turkey

2019

EUR 181 850

FULL CUSTOMER SERVICE FOR FINANCIAL INSTITUTIONS «BANK FOR BANKS» TRADE FINANCE WITH CIS/SCO

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2017

EUR 20 000 000

Financing of MAZ vehicles export deliveries from Belarus to Russia

2016

EUR 6 000 000

Financing of rolled steel export deliveries from Belarus to Russia

2016

EUR 451 000

Financing of roughing filters import from Russia to Uzbekistan

USD 430 000

Financing of household chemicals and demand guarantee Air Transportation import to Kyrgyzstan from Russia

2017 - 2019

USD 100 982

Financing of sportswear import to Mongolia from USA

2018

RUB 8 000 000

Demand Guarantee Deliveries of pipes from Russia to Kazakhstan

2018 2017 - 2018

EUR 550 000

Financing of coffee import from Italy and tyres import from Russia to Belarus

2018

USD 316 356

Financing of printed wrapper import to Mongolia from Republic of Korea

2017 - 2018

USD 2 530 000 (5 tranches)

Financing of food and consumer goods import to Mongolia from Russia

USD 120 000 (2 deals)

Demand Guarantee Deliveries of pasta to Moldova from Russia

2018 - 2019

Financing of petrochemical products import to Mongolia from Russia

2018 - 2019

USD 15 625 000 (4 tranches)

LC confirmation with post

• financing. Vegetable oil

production line to Uzbekistan from China

2019

USD 142 250

FULL CUSTOMER SERVICE FOR FINANCIAL INSTITUTIONS «BANK FOR BANKS» TRADE FINANCE WITH CIS/SCO

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PROGRAM «BANK FOR BANKS»: COOPERATION WITH EXIAR

EXIAR areas of activity:

 Insurance cover of export credits against commercial and political

risks

 Insurance cover of the Russian investments outside Russia from

political risks

TRANSKAPITALBANK – one of the main partners of the Russian Agency for Export Credit and Investment Insurance EXIAR

TRANSKAPITALBAK realized the basic product line of EXIAR:

 Complex export credit insurance  Supplier credit insurance  Buyers' bank credit insurance  Confirmed letter of credit insurance  Export credit insurance for working capital financing (only for SME

customers)

Structure of financed Russian export covered by EXIAR in 2015-2017:

33% 22% 24% 21%

By type of credit product

Credit to buyer's bank Confirmed letter of credit of buyer`s bank with financing WC financing for SME suppliers Credit to suppliers under short- term receivables insurance

33% 23% 5% 21% 6% 6% 6%

By importing countries

Belarus Kazakhstan Uzbekistan Tajikistan Latin America Turkey Other countries

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TRACK RECORDS WITH EXIAR

Loan to the buyers’ bank

Confirmed letters of credit

Financing of KAMAZ vehicle chassis export deliveries to Uzbekistan Financing of wood chip board export deliveries to Uzbekistan Financing of GAZ vehicles export deliveries to Belorussia Financing of steel- teeming ladle deliveries to Belorussia

RUB 33 554 964

Financing of oil products export deliveries to Tajikistan

USD 300 000 2015

Financing of GAZ vehicles export deliveries to Belorussia Financing of GAZ vehicles export deliveries to Belorussia

RUB 8 504 090 RUB 30 371 750 2015 2015 2015

Financing of oil products export deliveries to Tajikistan Financing of oil products export deliveries to Tajikistan

2015 2015 USD 2 010 000 USD 350 000 2016 USD 606 000 2015 2015 RUB 6 404 500 USD 365 209

Financing of caoutchouc deliveries to Belorussia

RUB 161 160 000 2015

Financing of KAMAZ vehicle chassis export deliveries to Uzbekistan

RUB 16 586 500 2016

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PROGRAM «BANK FOR BANKS»: ARRANGEMENT OF SYNDICATED LOANS FOR FIs

 TKB acts as arranger of syndicated loans for CIS banks  TKB has rich investor base and wealth of experience in arrangement of loans  TKB develops the secondary market of syndicated lending  TKB provides full range of services for arrangement of syndicated loans

Attraction of syndicated loans allows getting financing on favorable terms

TKB acted as Arranger of 20 syndicated loans for banks from Belarus, Mongolia and Uzbekistan for the amount exceeding EUR 2 bln Examples of arranged syndicated loan facilities

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PROGRAM «BANK FOR BANKS»: ARRANGEMENT OF SYNDICATED LOANS FOR FIs

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PROGRAM «BANK FOR BANKS»: ARRANGEMENT OF SYNDICATED LOANS FOR FIs

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CAPITALISATION AND PROFITABILITY RATIOS:

ANALYSIS OF FINANCIAL RESULTS

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BALANCE SHEET OF TKB GROUP

ASSETS & LIABILITIES STRUCTURE

As of 31 December 2019

Including Subordinated debt: 37%

Loans to customers Customer accounts Financial Assets (securities) Cash & equivalents (cash, NOSTRO) Other assets Deposits from banks (incl. REPO-transactions) Capital Debt securities issued

47% 38% 8% 7% 54% 1% 9% 23%

Including Subordinated debt: 28% Including Retail loans (incl. mortgage): 41%

DIA facilities 11% Other liabilities 2%

*Other assets includes deferred tax assets and property

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USD 70.000.000*

Syndicated Loan

Libor + 2.95% 1+1 year 2008

34

INTERNATIONAL AND DOMESTIC FUNDING

USD 70,000,000*

Syndicated Loan

Libor + 2.95% 1+1 year 2008 A Loan USD 60,000,000 L+4.10% 3 years

SYNDICATED LOANS STATE SUPPORT & DEVELOPMENT PROGRAMMES INTERNATIONAL BONDS DOMESTIC BONDS SECURITISATION

USD 164,000,000*

A+B Syndicated Loan

2010 A Tranche USD60,000,000 L+4.10% 3 years B Loan USD104,000,000 L+3.25% 1 year EUR 116,500,000*

Syndicated Loan

Euribor + 2.1% 1 year 2013 EUR 65,000,000*

Club Syndicated Loan

Euribor + 2.25% 1 year 2012 USD 175,000,000* RegS Senior Issue 9.125% 3 years 2007 USD 100,000,000 LT2 Issue 10NC5 10.50% 10 years 2007 USD 28,200,000* Repurchase of RegS Senior issue via Tender (MDA) 2009 2 Subordinated Loans from Vnesheconombank RUR 986,747,840 10 years 2009 Loan Facilities from SME Bank RUR 8,3bln * 5-6 years 2011-2017 RUR 1,800,000,000* Domestic Bond Issue 8.15% 5 years 2011 RUR 1,000,000,000 Subordinated Bond 13% 6 years 2012 RUR 2,000,000,000 Domestic Bond Issue 9.7% 10 years 2013

Mortgage Securities* RUR 4,1bln.(tranche A) RUR 0,4bln. (tranche B) 8% 33 years

2013

* Facility has been repaid

USD 100,000,000 LT2 Issue Consent Solicitation 10% 5 years 2015

Mortgage Securities* RUR 4,7bln. (tranche A) RUR 0,4 bln. (tranche B) 11% 31 years

2016

Mortgage Securities RUR 4,1bln. (tranche A) 19,6% Credit Enhancement 9,1% 28 years

2017

SME Securities RUR 5 bln. (tranche A) 30% Credit Enhancement 9,25% 15 years

2018 USD 25,570,000 Repurchase of RegS at fixed price 50,00% 2018

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KEY FINANCIAL RATIOS

Audited IFRS/RAS (RUBbn)

2018 TKB GROUP (incl. ITB) IFRS 2019 TKB (excl. ITB) RAS 1Q 2020 TKB (excl. ITB) RAS

Total Assets 257.1 160.1 169.1 Total Loans 122.3 91.4 91.7 Total Securities 95.6 23.4 26.8 Total Liabilities 240.2 144.2 152.1 Total Customer Accounts 143.5 83.5 90.5 Total Equity (Tier 1 + Tier 2) 21.1 15.9 16.9 Net Interest Income (Before provisions) 3.8 5.4 1.2 NPLs/Total Loans (90+ days overdue loans) 19.4% 10.6% 10.0% Provisions/NPLs 93% 130% 145%

Profit 1.6 billion 1.2 billion 1.4 billion

AS OF 1Q 2020 (RAS) CBR MANDATORY RATIOS TKB (excl. ITB)

N1 (Capital Adequacy Ratio)

• Min. 8%

12.1% N2 (Quick Liquidity Ratio)

• Min. 15%

117.2% N3 (Current Liquidity Ratio)

• Min. 50%

242.9% N4 (Long-term Liquidity Ratio) Max.120% 43.5%

In February 2016 TKB acquired ITB

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CAPITAL ADEQUACY OF TKB GROUP



In 2Q 2020 TKB made an additional issue of RUB 1 bn.



In April 2019 there was an additional capitalization in amount of RUB 2,5 bn.



On 16 July 2018 Financial Rehabilitation Plan (FRP) of Investtradebank (ITB) was updated & approved. The total funds provided by DIA in the frame of the Financial Rehabilitation Plan was RUB 72.4 bn at 0,51% with maturity 27 December 2030



In April 2018 TKB increased Tier 1 by RUB 900 mio through perpetual subordinated loans + RUB 700 mio in 1Q2019



In 1Q 2018 there was an additional capitalization in amount of RUB 2,5 bn.



In 1Q 2018 shareholders (Ms. Tatiana Orlova) increased share capital by RUB 150 mio



In 3Q 2016 shareholders increased share capital by RUB 150 mio



In August 2016 TKB attracted a RUB 1.5 bn subordinated loan by means of subordinated bonds placement on MICEX



In May 2016 DIA provided a RUB 100 mio subordinated loan to TKB in frame of the OFZ Recapitalization Program

COMMENTS: MANAGEMENT OF CAPITAL

(RUBbn)

Сurrency Rates (RUB/USD): 2016 – 60,6569, 2017 – 57.6002, 2018 – 69.4706; 2019 – 61.9057

For the period of 1Q2018 - 1Q2019 total volume of the support to T1 Equity from TKB shareholders reached RUB 6,8 billion (over US$100 mln.)

(capital adequacy ratio as of RAS) 20,0 18,3 18,9 26,3 21,1 21,1 13,6% 10,1% 13,3% 12,5% 12,1% 13,8% 2017 2018 2019 Tier 1 Total Basel II Capital CAR Н1

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LIQUIDITY MANAGEMENT

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LIQUIDITY MANAGEMENT OF TKB GROUP

LIQUIDITY BUFFER

As of 31 December 2019 (RUBbn)

SECURITY PORTFOLIO STRUCTURE

As of 31 December 2019

CORPORATE BONDS BREAKDOWN

As of 31 December 2019

71.7 RUBbn

91% 2% 2% 1% 1% 1% OFZ DOM.RF VEB GAZPROM LUKOIL TRANSNEFT

24 RUBbn 12 RUBbn

LIQUIDITY BUFFER

As of 31 December 2019 18,0 42,8 10,9 Cash and cash equivalents Federal bonds Securities in CBR's Lombard list 91% 7% 1% Federal state bonds and CBR's bonds Corporate bonds (from BBB- to BBB+) Corporate bonds (from B+ to BB+)

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CONTACTS

HQ: 1, Mashkova str. Moscow, 105062 Russian Federation Tel.: +7 (495) 797-32-00 Fax: +7 (495) 797-32-01 E-mail: info@tkbbank.ru Website: www.tkbbank.com

ADDRESS:

• Mrs. Stella Danielova

Vice-President, Director of FI and Export Financing Division Tel.: +7 (495) 797-32-00 (ext. 1569) Mob.: +7 (915) 454-45-54 E-mail: danielova_sg@tkbbank.ru

• Mrs. Elena Shirinskaya

Deputy Chairman of the Management Board, PhD in Economics Tel.: +7 (495) 797-32-00 (ext. 1948) Mob.: +7 (985) 765-31-68 E-mail: shirinskaya@tkbbank.ru

• Mrs. Anna Gorodnicheva

Vice-President, Deputy Director of FI and Export Financing Division Tel.: +7 (495) 797-32-00 (ext. 2309) Mob.: +7 (985) 997-39-71 E-mail: gorodnicheva_av@tkbbank.ru

• Mrs. Tatiana Trushkova

Head of Interbank Business Department, FI and Export Financing Division Tel.: +7 (495) 797-32-00 (ext. 2414) Mob.: + 7 (903) 104-12-81 E-mail: trushkova_tm@tkbbank.ru