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Bank BelVEB: FACILITATING INTEGRATION Oleg Korobyin Deputy Chairman of the Board 18-19 March, 2015 Contents Key Facts about Belarus Bank BelVEB Profile and Key Performance Indicators Bank BelVEB Market Position Mechanisms of Integration Facilitation Cooperation Opportunities Key Facts about Belarus Land Area – 207 600 km2 (84) Population – 9.4 mln (90) GDP – USD 77 mln (63) GDP Growth (2014) – +1.5% Capital – Minsk Population – 1.9 mln Main industries: • metallurgical • mechanical engineering • chemical and petrochemical • light industry • food industry Number of Banks - 31 Bank BelVEB at a Glance Corporate name Belvnesheconombank Open Joint Stock Company (Bank BelVEB OJSC) Ratings B- by Fitch Ratings B- by Standard & Poors Assets USD 2 040 million NumberEquity of Branches USD 315 million Number of Branches 20 Number of Employees Major Shareholder 2 297 Milestones …December, 1991 Belarusian branch of Vnesheconombank of the USSR 1991 Belvnesheconobank 1994 2007 VEB became the major Bank for Foreign shareholder Economic Affairs of the Republic of Belarus 2011 Bank BelVEB (rebranding) 5 Branch Network Strong performance of the Bank’s branch network has always been pivotal in reaching to, and broadening of, its clientelle and channeling of banking products to increase sales of services. Bank BelVEB’s branch network covers over 20 cities of Belarus and comprises: - 20 branches; - 12 banking outlets; - 19 centers of retail services. Assets and Liabilities as at September 30, 2014 Customer Loan Portfolio Breakdown by Industry Customer Loan Portfolio (EUR million) NPL 90+ (%) Position in Belarus’ Banking Industry (1) Bank BelVEB is the fifth largest bank in Belarus by assets. Due to its dynamic management team and VEB’s support, Bank BelVEB can be more flexible in developing its strategy, selecting clients and setting risk-based pricing. Breakdown by Assets Position in Belarus’ Banking Industry (2) In accordance with the national standards of accountancy, by the end of 2014 the Bank’s profit reached USD 50 million that allowed it to attain the sixth place in the domestic banking system in terms of profit while the Bank’s equity makes it fourth among Belarus’ state-owned and commercial banks. Breakdown by Profit Breakdown by Equity Position in Belarus’ Banking Industry (3) Bank BelVEB is considered a highly professional bank for foreign economic affairs. By the end of 2014 the Bank ranked second in terms of trade finance exposure. Trade Finance Exposure Products and Services Being a universal bank, Bank BelVEB provides a wide range of banking services to its customers across different economic sectors ensuring customer satisfaction by offering technologically advanced products to companies and individuals. Retail & Corporate Banking Lending operations (consumer loans, mortgages, loan refinancing) Current and deposit account management Card issuance Payments and settlements Foreign exchange services Money transfers Insurance Trade in precious metals and commemorative coins Depositary services International payments L/Cs, guarantees, collections Corporate lending (SME financing, factoring, leasing, bank guarantees issuance, investment import financing) Short-term trade finance (documentary transitions, discounting of deferred payment L/Cs, pre-export finance) Long-term trade finance (loans supported by ECAs) Securities transactions (bonds, certificates of deposit, corporate securities, savings certificates) Clientele The Bank provides high quality services to individuals, self-employed entrepreneurs and corporate clients, including companies from such industries as steel production, oil refining, automobile building, furniture industry, trade, insurance, food processing, light and chemical industries, etc. MAZ (Minsk Automobile Plant) Pinskdrev Major state producer of trucks, buses, towed vehicles and various types of trailer equipment. Largest production complex involved in wood working and manufacturing of high-quality furniture Minsk Motor Plant CIS leader in the production of diesel engines Belarusian Railways Slutsk Sugar Plant McDonald’s Restaurants Belita Leading manufacturer of cosmetics popular both in Belarus and abroad Elema Country’s recognized leader in the production of ladies’ outer garments Atlant Recognized leader in the production of high-quality household appliances Savushkin Produkt Belarusian largest producer of dairy products Gorodeya Sugar Refinery Mozyr Oil Refinary Coca-Cola Beverages Belorussiya Spartak Largest producer of confectionery in the country Santa Bremor Major foodstuff manufacturer in Belarus Byelorussian Steel Works Facilitating Integration. Mission The Mission of the Bank is to facilitate and assist customers from Russia and Belarus in successful implementation of their mutual business initiatives Facilitating Integration Instruments of integration facilitation Financial Non-financial Informational Bank BelVEB Structure (sales and sales support) VEB VEB Group Corporate Business Other Banks Financial Markets Retail Business Corporates Facilitating Integration. Financial Instruments (1) Financing of Export from Russia to Belarus • • • • • • • Purpose loans granted through VEB financing EXIAR covered loans Non-purpose loans to importers Trade finance Guarantees Agent agreements Interest rates subsidies Facilitating Integration. Financial Instruments (2) Financing of Export from Russia to Belarus • • • • • • Pre-export financing Trade finance BelEximGarant covered loans Financing of Russia-based subsidiaries of Belarusian companies by VEB Group banks Guarantees Interest rates subsidies Facilitating Integration. KPI Share of integration projects in the corporate loans (min) 2017 2016 30% 2015 25% 2014 Facilitating Integration. Project Eligibility Criteria • Purpose financing of agricultural and industrial products supplies from Russia to Belarus; • Non-purpose financing of Belarusian manufacturers purchasing agricultural and industrial products, components and services from Russia; • Financial support to companies with the participation of Russian capital; • Corporate loans in Russian national currency; • Purpose financing of industrial products supplies from Belarus to Russia; • Non-purpose financing of industrial products supplies from Belarus to Russia. Facilitating Integration. 2014 Key Projects Over 2014, Bank BelVEB invested USD 1 bn in integration projects KPI achieved - 43% Facilitating Integration. Informational Instruments Since 2014 Bank BelVEB has been keeping the Information Database of Russia-Belarus foreign trade in goods and services Key data fields: • • • • • Exporters Importers Type of goods Russian Region Amount of Supplies Facilitating Integration. Non-financial Instruments Bank BelVEB holds conferences and workshops for VEB Group participants and their customers with the aim of expanding Russia – Belarus economic, trade and interbank cooperation. Bank BelVEB: Your Reliable Partner in Belarus Key Cooperation Opportunities: • • • • • • Trade Finance ECA Covered Loans Money Market and FX Deals Clearing Business Assessment for Investors Business Partners Search in Belarus Contact Information 29, Pobediteley Ave. 220004, Minsk Republic of Belarus Tel.: +375 17 209 29 44 Fax: +375 17 309 62 12 Telex: 252194 BVB BY SWIFT: BELBBY2X Reuter: BELB E-mail: [email protected] Website: www.bveb.by Corporate Business & Trade Finance Development: Alexander Kashlach +375 17 309 60 78 [email protected] Trade Finance Development: Liudmila Arkhipenko +375 17 309 62 39 [email protected] Financial Institutions: Denis Mozhdzher +375 17 209 29 62 [email protected] Documentary Operations: Vadim Yakubenko +375 17 218 66 94 [email protected] Thank you!