Transcript UzKDB Bank

V Tashkent International Investment
Financial Forum
4 – 8 April 2012
CJCS UzKDB Bank
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+99871 120 80 00
www.kdb.uz
Table of Contents
History of KDB
Overview of KDB Financial Group
UzKDB Bank
RBS NB Uzbekistan CJSC
Vision & Strategy
CJCS UzKDB Bank
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+99871 120 80 00
www.kdb.uz
Overview - KDB
Current Structure
KDB Financial Group
KDB Profile
Global Presence
CJCS UzKDB Bank
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+99871 120 80 00
www.kdb.uz
Current Structure
(as of March 2012)
Government
100%
Korea Finance Corporation 1
9.7%
90.3%
KDB Financial Group
100%
KDB
43%
99.9%
Daewoo Sec.
100%
KDB Asset Mgmt
KDB Capital
84.2%
KIAMCO
85.05% 2
1
KDB Life Insurance
2
CJCS UzKDB Bank
Ownership through any entity in which the government holds more than 50% of its
voting rights, construed as ownership by the government.
Consists of the 60.35% stake held by SPC and the 24.70% stake held by PEF
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+99871 120 80400
www.kdb.uz
KDB Financial Group
- Established : Oct. 28, 2009
- Ownership : 100% Government
- Total asset : KRW172 trillion (End of 2011)
- Combined strengths of Korea’s leading institutions in the banking, securities, capital,
and asset management markets
100% Owned by the government through KDB FG
Business areas
-Corporate Banking
-Investment Banking
-Corporate Restructuring
-Consulting & Research
-Retail Banking
Established leader in domestic corporate banking
with global competitiveness in investment banking
No. of Employees : 2,465
No. of Offices : 73 (Including overseas)
Asset Size : KRW 149trn (End of 2011)
43%
99.9%
100%
84.2%
Business areas
-Retail
-Investment Banking
-Wealth Management
-Trading
Business areas
-Lease
-Venture Capital
-Factoring
Business areas
- Asset Management
Business areas
-Infrastructure & Special
Assets Fund Management
Uncontested position in the
domestic capital market
Highest M/S in brokerage
and primary market
Most favored venture capital Comprehensive asset
offering diverse public
management
venture funds and incubation Top 10 in AUM
services
Established: Sep. 1970
No. of Offices : 131
Asset Size : KRW 21trn
Established: Dec. 1972
No. of Offices : 4
Asset Size : KRW 2.8trn
(equity/bond/hybrid funds)
-Trust Management
-Investment Advisory
Korea’s first and largest
asset management
company specializing in
infrastructure funds &
alternative investments
Established: Jul. 1996
No. of Offices : 1
Asset Size : KRW 80.5bn
Established: Oct. 2003
No. of Offices : 1
Asset Size : KRW 18.1bn
(End of 2011, Consolidated Basis)
CJCS UzKDB Bank
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+99871 120 80500
www.kdb.uz
KDB Profile
Quasi Sovereign
Status
 100% Government owned (Includes indirect ownership)
 Government responsible for maintaining KDB’s solvency under the KDB Act
 Strong intention of Government to nurture KDB into a Global Financial Services Institution
Expertise &
Know-how
 Pioneered development of Korea’s financial industry
 Accumulated financial know-how in Corporate & Investment Banking
 Window for foreign currency funding
Solid Capital
 BIS Ratio : 15.48%
 Tier 1 : 14.58%
Asset Size & Composition (Unit: KRW bil.)
Credit Rating
157,613
131,896
122,333
113,205
34,016
(27%)
Effective
Moody’s
S&P
Fitch
R&I
Apr. 14. 10
Oct. 28. 09
Sep. 9. 09
Oct. 30. 09
A1 (P-1)
A (A-1)
A+ (F1)
A+ (a-1)
80,308
(60%)
Rating (ST)
7,200
2008
2009
CJCS UzKDB Bank
2010
2,470 7,902
3Q 2011
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+99871 120 80600
www.kdb.uz
Global Presence
Europe
Beijing
Ireland
London
North America
Shenyang
Frankfurt
New York
Hungary
Seoul (HQ)
Tokyo
Shanghai
Asia
Guangzhou
Hong Kong
Africa
Singapore
South America
Branch
Tashkent
South Pacific
Sao Paulo
Subsidiary
Representative office
Headquarters
Domestic: 60 branches
Overseas: 7 branches (New York, London, Tokyo, Singapore, Shanghai, Guangzhou, Beijing)
5 subsidiaries (Hong Kong, Hungary, Brazil, Ireland, Uzbekistan)
2 representative offices (Frankfurt, Shenyang)
CJCS UzKDB Bank
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+99871 120 80700
www.kdb.uz
Vision & Strategy
Vision 20-20-20
Globally Competitive CIB
Phase 2: Global Top 20 Financial Group
Phase 1: Asia Top 20 Financial Group
Core Business
Raise
Competitiveness
CJCS UzKDB Bank
Corporate
Banking
Investment
Banking
Asset
Management
＞ Enhance Financial Structure
＞ Increase Profitability and Competence in Core Business Areas
＞ Expand Deposit Base
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+99871 120 8028
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www.kdb.uz
UzKDB Bank
32, Oybek Street, Mirabad District, 100015 Tashkent, Uzbekistan
SWIFT: UZDAUZ22
Why KDB invests in Uzbekistan financial market
(Purchase of UzDaewoo Bank and RBS Uzbekistan)
 Political and economic stability in the country;
 Attractive business environment;
 Enhanced legislative and regulatory system created
by the government agencies, including CBU;
 Expansion of business in Central Asia as a new
financial market;
 Strong will to participate in the great changes in
Uzbekistan by contributing to the development of its
financial market and economy as a whole.
CJCS UzKDB Bank
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+99871 120 80 00
www.kdb.uz
Mission
UzKDB Bank
…always moving forward…
reputation
of stable
& reliable
Financial
institution
CJCS UzKDB Bank
wide range
of strong
customers
stretching from
entrepreneurs to
business elite
a full range
high quality
banking
services
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creating
value-added
business
opportunities
& new banking
services
+99871 120 80 00
www.kdb.uz
From Foundation to Present (i)
1997-2006
UzKDB Bank is the
successor UzDaewoo
Bank, which was
founded in 1997 as part
of the international
expansion of Daewoo
Group and its financial
department Daewoo
Securities.
CJCS UzKDB Bank
2006
UzDaewoo Bank was
recreated on May 5, 2006
as UzKDB Bank
(Uzbekistan-Korea
Development Bank) and
starting from this day the
Bank is engaged in its
activity on the basis of
License # 5 issued by the
Central Bank of the
Republic of Uzbekistan.
12
2006 –
up to present
During this period Board
of the Bank worked on
enlargement of Bank’s
activity and
reinforcement of
financial statements. The
total capital is increased
by 24.7 % during 2011
and amounted in USD
34.0 million at the end of
FY 2011.
+99871 120 80 00
www.kdb.uz
From Foundation to Present (ii)
UzKDB Bank (latest data)
Ownership structure:
Closed Joint Stock Company
Shareholders:




Korea Development Bank (61.11 %)
EBRD (27.78 %)
NBU (5.56 %)
JSC Turon Bank (5.56 %)
Assets:
Total Equity:
Branches:
Mini-banks:
Audit company:





418.0 mln. in USD equivalent
34.0 mln. in USD equivalent
1
2
Ernst & Young, Tashkent
CJCS UzKDB Bank
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+99871 120 80 00
www.kdb.uz
Business overview
UzKDB Bank offers comprehensive financial services across diverse areas
based on qualified experience. Our Bank's business profile is primarily
oriented to corporate clients and banking services to corporate clients who
provide the main part of assets and profits of the bank.
Conversion
and
Remittance
Services
International
payments and
Visa services
UzKDB Bank
Services
Local
Transactions
Services
Export &
Import
Operations
Loan
operations
CJCS UzKDB Bank
Local
Plastic
Cards
Services
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Treasury
Services
+99871 120 80 00
www.kdb.uz
Business overview:
Correspondent relations
Our Bank established strong and reliable relationships with highly
reputable commercial banks in Europe, Asia, USA, CIS countries and
successfully conducts correspondent relations in different currencies.
Our main correspondent banks are:
 JP Morgan Chase (USA)
 Commerzbank AG (Germany)
 KEB Seoul (Republic of Korea)
 VTB Bank (Russian Federation)
 NBU (Uzbekistan) etc.
Based on our extensive financial know-how and using the global network of KDB
Seoul we are continuing our international expansion and cooperation in order to
give a solid support to our customers in their international operations.
CJCS UzKDB Bank
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+99871 120 80 00
www.kdb.uz
Business overview:
Comparative advantage
UzKDB Bank is a safe bank, because of:
 Conservative Credit Policy;
 Well established Assets and Liabilities management;
 The limits for interbank placements are set by KDB Headquarters
based in Seoul;
 Unlike other local banks in Uzbekistan, UzKDB Bank has an access
for analysis of financial institutions carried out by KDB, and has
competitive knowledge about the situation in international
markets;
 FX position of the bank is positive and stable;
 UzKDB Bank makes interbank placements only with first class
international banks with highest investment ratings and carries out
periodical analysis of counterparty banks.
CJCS UzKDB Bank
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+99871 120 80 00
www.kdb.uz
Main financial indicators
Items
Unit
FY2011
FY2006
% Increase
Total Assets
UZS mln
752,087.4
85,458.9
780.1
Total Liabilities
UZS mln
689,973.7
66,807.8
932.8
Total Equity
UZS mln
62,113.7
18,651.1
233.0
Operating Income
UZS mln
26,107.5
9,447.0
176.4
Operating expenses
UZS mln
13,909.5
4,449.1
212.6
Profit before income tax
UZS mln
12,197.9
4,997.9
144.1
Income tax
UZS mln
2,798.1
1,037.9
169.6
Net Profit
UZS mln
9,399.9
3,960.0
137.4
Financial Position
Income statement
CJCS UzKDB Bank
17
+99871 120 80 00
www.kdb.uz
RBS Uzbekistan
History of RBS Uzbekistan
Bank’s Profile
Financial performance
77, Nasirova street, Yunus Abad District, 100084 Tashkent, Uzbekistan
SWIFT: KODBUZ22
CJCS UzKDB Bank
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+99871 120 80800
www.kdb.uz
History of RBS Uzbekistan
 1996 - Founded as ABN AMRO Bank NB Uzbekistan A.O.
 2008 - Renamed to RBS NB Uzbekistan CJSC subsequent to the global
acquisition by The Royal Bank of Scotland Group
 2009 - RBS Uzbekistan – Award “Best Bank in Uzbekistan” by Euromoney
magazine
 2010 - RBS Group agrees to sell RBS Uzbekistan to Korea Development
Bank
 2011 - KDB acquired majority stake in RBS Uzbekistan and the Bank
(Nov) became part of KDB Financial Group
 The name “RBS NB Uzbekistan CJSC” is used under Transitional Trade Mark
License Agreement signed with RBS Group
CJCS UzKDB Bank
19
+99871 120 80 00
www.kdb.uz
Bank’s profile
 Shareholders are: KDB – 82.35% and NBU – 17.65%.
 RBS Uzbekistan has advanced Relationship Management service compared to other
banks
 The Bank implements enhanced Know Your Client Policy and advanced operating
system leading to efficient risk management
 Corporate customer segmentation
 Subsidiaries/joint venture companies of multinational companies and large local enterprises
 Small businesses, representation offices of international companies and diplomatic missions
 Corporate staff and card accounts
 Sector of economy
 Integrated energy
 Automotive
 Telecommunication
 Textile and etc
Bank’s profile (continued)
Product offering
 Transaction Banking - current accounts, trade finance, physical cash, bank transfers,
international clearing, collection services
 Treasury - currency exchange, money market instruments, trading, plain vanilla
derivatives
 Credit Structuring - overdrafts and loan facilities
 Principal Member of MasterCard International Payment System, fully authorized for
issuance and acquiring of MC cards. Licensed by Visa International as an Affiliate
Member
Financial Performance
Volume of Assets and Equity (UZS mln)
Description
FY 2011
FY 2010
FY 2009
Total assets
539,627
543,097
551,734
Total equity
41,527
36,544
31,312
 Total assets remained almost the same while the bank tightly controlled its cost
base
In 2011, the Bank increased the capital base by injecting the retained earnings
(UZS 12 bln) of the previous years into share capital
Vision & Strategy
Vision
Strategy
CJCS UzKDB Bank
23
+99871 120 80 00
www.kdb.uz
Vision
 By acquiring previously UzDaewoo bank and later RBS
Uzbekistan, KDB wants to expand its business activities in
Uzbekistan and to contribute more to economic prosperity
by sharing and combining KDB’s accumulated banking
service know-how, advanced financial knowledge as well as
the expertise as a leading Asian bank
 In late 2012, KDB will integrate RBS NB Uzbekistan with
UzKDB Bank as soon as all required actions would be taken
to enhance the management efficiency and empower the
synergy of resources belonging to both banks
 In the long term, KDB wants to grow its presence in Central
Asia
CJCS UzKDB Bank
24
+99871 120 80 00
www.kdb.uz
Vision (continued)
 New Bank (after merging UzKDB and RBS Uzbekistan) will continue to
serve clients with current valuable employees at the same service level by
maintaining best internationally banking practices
 The bank will continually and progressively contribute to the economic
growth of Uzbekistan by:
 contributing to Uzbekistan’s financial market development through
performance of advanced universal banking services
 provision of consulting and financial services for social sphere and
natural resources development
 engagement in other banking business activities
CJCS UzKDB Bank
25
+99871 120 80 00
www.kdb.uz
Strategy
 Main focus will continue to be on existing and new clients
 Pro-actively cross-selling products
 Increasing the loan portfolio prudently by providing credit facilities to clients
with sufficient cross selling products
 Developing strong leadership positions in trade business (import finance,
discounted L/Cs, LGs) and commodity finance & trading
 Delivering comprehensive regional and domestic cash management
solutions, payment & collection services for clients
 Continue delivering comprehensive cash/salary arrangement solutions
 Proceeding with initiatives on attracting physical cash in local currency
 Launching FX swap, FX options and other “plain vanilla” derivatives
instruments with a proposal of managing and hedging foreign currency and
commodity risks for customers
 Expand cooperation with local financial institutions on money and foreign
exchange markets
CJCS UzKDB Bank
26
+99871 120 80 00
www.kdb.uz
We hope your prosperity with investment in
Uzbekistan
THANK YOU!
CJCS UzKDB Bank
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+99871 120 80 00
www.kdb.uz