May 2012 Belagroprombanks Overview Universal commercial bank Key - PowerPoint PPT Presentation

May 2012

Belagroprombank‟s Overview  Universal commercial bank Key financials, BYR bn 2011  99% state-owned bank Assets 45,550  Government Agent on servicing State Programs Equity 10,052  #9 among 25 largest banks of CEE by equity (July Loans to customers 33,415 2011) Customer accounts 17,651  Leading positions in banking sector of Belarus: Net interest income ** 2,533 – #1 by corporate loan portfolio Profit before loss on net monetary position 1,378 in national currency Tier 1 capital adequacy ratio, % 25.8 – #2 by authorized fund and equity Source: Consolidated Financial Statements in accordance with IFRS as of 31.12.2011 – #2 by total assets and retail deposits  7 regional branches, 57 local branches  The agricultural sector and 217 outlets * has been announced  More than 42 000 corporate and 1.4 mln as the “growing point” retail clients of the economy in Belarus  Credit ratings :  Belarus ranks №1 among CIS – S&P – В - (at the sovereign level) countries in terms – Moody’s – Caa1 (1 notch lower than the of vegetables, meat and milk sovereign level) production per capita  Deep expertise of the agricultural sector  The only Belarus corporate issuer on the international debt capital market * As of 01.05.2012 2 ** Before allowance for impairment and effect of initial recognition

Republic of Belarus Real GDP Growth Ratings in 2011 vs. European Rating Agency Rating countries S&P B- Moody’s B3 On April, 18th, Belarus’s credit rating outlook was raised to stable from negative by S&P Agricultural & Industrial 2011 GDP Structure Production Indices 146%154% Agriculture, Hunting, Forestry 134% 130% Other 15% & Fishing 9% 100% 111% 121% Financial Intermediation, Real Manufacturing 100% 107% 106% 116% 121% 127% 133% Estate, 30% etc. 10% USD Transport & 55.1 bn Communi- cations 10% 2005 2006 2007 2008 2009 2010 2011 Wholesale & Agricultural Output Indices 2005 = 100% Retail Trade 13% Construction 13% Industrial Production Indices 2005 = 100% 3 Sources: National Bank of Belarus, National Statistical Committee of Belarus Data as of 01.01.2012

Belagroprombank‟s market positions Equity Corporate Loan Portfolio 5% 11% 14% 5% 21% 30% 4% 7% 4% 5% 4% 48% 11% 31% Assets Retail deposits 15% 12% 20% 16% 6% 4% 8% 6% 5% 3% 39% 46% 10% 10% Bank “ BelVEB ” Belagroprombank Belarusbank BPS-Sberbank Belinvestbank Priorbank Others 4 Source: National Bank of the Republic of Belarus Data as of 01.05.2012

History and Development 1991 – 1996 1997 – 2006 2007 – 2008 2009 – 2011  03.09.1991 JSC  2002 – JSC  2007 – Global Finance  2009 – The Bank in cooperation with Belagroprombank Belagroprombank was named JSC Belagro- Italian company Agrotecnica s.r.l. prombank The Best was created on the awarded with the title held conference devoted to the issues “ The Bank of the Year basis of Belarussian Bank in Belarus of the development of agroecotourism 2002 ” by The Banker branch of Agrobank in Belarus  The Bank opened its of USSR magazine  2010 – the meeting of the Central representative office  1992 – the Bank  2004 – for the first time in Milan, Italy Committee of CICA was held under the Bank’s financial obtained general  Euromoney magazine the auspices of JSC Belagroprombank license to perform statements were prepared  The Bank was awarded with “ EUR awarded the Bank with banking activities in accordance with IFRS Award for Excellence Straight-Trough Processing (STP) in foreign currency and audited by Deloitte Excellence Award” by Deutsche Bank  The Bank became  1994 – the Bank and Touche for the exceptional quality of payment a member of CICA  Long-term rating of the became a member of messages (International SWIFT international Bank was assigned at  The Bank joined MasterCard Association of settlement system CCC+ by Fitch Ratings Agricultural Credit) Worldwide payment system  1996 – the Bank  2005 – the Bank joined  2008 – Moody’s  Belagroprombank was the first Belarusian obtained the status Visa International assigned rating for the bank to implement quality management of the Government payment system Bank for the first time system ISO 9001 Agent on serving  2006 – Fitch Ratings  For the second time  2011 – The Bank has improved its state programs upgraded the Bank’s positions in The Banker’s Top 1000 Global Finance named on financing rating to B- JSC Belagroprombank World Banks. It ranked 325 among agricultural sector  The Bank tapped 1000 world’s largest banks in terms The Best Bank of the economy international debt capital in Belarus of tier 1 capital having moved from  JSC 403 rd place a year earlier markets, the total volume  Financing provided Belagroprombank of borrowings reached  Deutsche Bank awarded Belagroprombank by foreign financial joined Reuters USD 340 mln by the end with “EUR STP Excellence Award” institutions totaled system of the year to USD 1 bn. for the second time 5

Governance Structure GENERAL SHAREHOLDERS ‟ MEETING Includes Includes SUPERVISORY BOARD Deputy Prime Independent Minister Members MANAGEMENT BOARD FINANCE COMMITTEE OTHER COMMITTEES (BUDGET, IT) CREDIT COMMITTEE 6

Belagroprombank ‟ Group and its Branch Network  Headquartered in Minsk  Implementation of regional network optimisation strategy – low-profit branches are re-organised into outlets (i.e. less staff, limited operations) Belagroprombank‟s Branch Network Belagroprombank‟s subsidiaries as of 01.05.2012 217 Outlets 57 7 The Bank is a parent company of a Group Regional Local Branches Branches which consists of the following enterprises consolidated in the financial statements The Bank‟s Vitebsk Type of Name Share, % operation 1 PUE “Ozeritskiy - Agro” 100 Agriculture Mogilev Minsk Grodno Finance 2 JSC “Agroleasing” 66.7 leasing Gomel 3 PE “ Agrobusinessconsult ” 100 Consulting Brest 4 OJSC “ Turovschina ” 95.03 Agriculture 7

Strategy The Development Program of Belagroprombank for 2011-2015 1 Pursuing client-oriented policy both in retail and corporate business 2 Active developing of international cooperation 3 Goal-directed adopting of modern technologies 4 Securing safe performance 5 Promoting economic effectiveness 8

Risk-Management Risks Credit Risk Operational Risk Market Risk Other Risks Technical & Legal entities Currency Risk Liquidity Risk Technological Risks Individuals Accounting Risk Interest Risk Strategic Risk Operational Banks Stock Risk Country Risk Activity Risk Interest Rate С ommodity Risk Legal Risk Risk Reputation Risk Risk of Operation Organizational Structure Risk Other Risks 9

Business Overview Corporate banking Retail banking International operations  More than 42,000 clients  More than 1.4 mln. clients  Top-priorities of the Bank: – Increase the scale of business (as of 01.04.2012) (as of 01.04.2012)  The clients are the large  Area of strategic importance via raising funds from and medium-sized and development for the Bank international markets  Total retail loan portfolio – Involve international markets entities in the agricultural sector and manufacturing of more than USD 190 mln. to diversify liabilities structure  Product offering includes:  More than USD 3.45 bn. raised companies  Total corporate loan – Multi-currency deposits since 2005 by means of forfaiting, – Money transfers portfolio of over USD 4 trade finance, capital markets – Foreign currency exchange bn. transactions, etc.  State lending programs  Cooperation with more than – Plastic cards (BelCart, Visa, for the agricultural sector Maestro, MasterCard) 100 financial institutions  Wide range of services – Payments services from 30 countries  Recognition by 17 ECAs – SMS-banking includes: – Lending, Leasing, – Internet-banking (SACE, Hermes, KUKE, EKF, – Consumer lending, Factoring operations OeKB and others)  More than USD 1 bn. – Support of trade car lending, mortgages – Selling of gold, platinum operations of unsecured short-term lines  Representative Office in Milan, Italy – Advisory services and silver bullions 10 Data as of 31.12.2011 (IFRS audited figures)

А ssets Total assets Assets structure, % 45.6 Derivative financial instruments 9% Other assets 3% 28.3 Fixed assets 4% Investment in securities 19.3 available for sale 5% 15.2 Cash and balances with the National Bank of the Republic of Belarus 6% 9.4 8.1 6.9 6.7 5.5 Loans to customers 73% 4.6 3.7 2.7 2.2 1.2 2005 2006 2007 2008 2009 2010 2011 BYR trn USD bn  Major part of assets formed by loans to clients (mostly to corporates)  100% of the loan portfolio is secured 11 Data as of 31.12.2011 (IFRS audited figures)