BANK SAINT PETERSBURG 1H 2010 IFRS ResultsStrong Franchise Client baseClient base Market share in St. Petersburg: Retail bankingMarket share in St. Petersburg: Retail banking Market

BANK SAINT PETERSBURG1H 2010 IFRS Results

September 13, 2010

Образец заголовка

• Образец текста• Второй уровень• Третий уровень• Четвертый уровень• Пятый уровень

2

Summary –Bank Saint Petersburg at a glance

22

Regional leaderRegional leader

Focused on North-West

Focused on North-West

Selected financial and operational

results

Selected financial and operational

results

� A leading private universal bank in St. Petersburg and the Leningrad region� St. Petersburg market share as at July 1, 2010*:

• Assets: 12.5%• Loans: 15.1% - corporate, 5.7% - retail• Deposits: 11.2% - corporate, 9.3% - retail

As at September 1, 2010� Client base: over 987,000 retail and 34,900 corporate customers� 36 branches and outlets (primarily in St. Petersburg), 472 ATMs

As at July 1, 2010:

�16th largest bank by assets and 14th by retail deposits among the Russian banks**� Ratings: Moody’s Ba3 (Negative outlook)� Total assets: RUB 239.5 bn (USD 7.7 bn)� Total capital: RUB 33.5 bn (USD 1.1 bn)� Net income: RUB 1.1 bn (USD 36.1 mln)� Gross loans: RUB 177.2 bn (USD 5.7 bn)� Customer accounts: RUB 175.2 bn (USD 5.6 bn)� Cost/Income ratio: 25.4%� Total capital adequacy: 14.9%� 2,308 employees

* Association of North-West banks, Bank Saint Petersburg own estimates** Interfax



3

RUB 1.1 bn (USD 36.1 mln) versusRUB - 48.7 mln for 1H 2009 (USD -1.6 mln)

July 1, 2010 – January 1, 2010 July 1, 2010 – July 1, 2009

Net IncomeNet Income

AssetsAssets

Total capitalTotal capital

Loan portfolioLoan portfolio

Customer accounts*Customer accounts*

Cost/Income Ratio – 25.4%Capital Adequacy – 14.9%

Key ratiosKey ratios

RUB 177.2 bn (USD 5.7 bn)+ 1.8% compared with Jan 1, 2010 + 14.2% compared with July 1, 2009- 0.5% compared with Apr 1, 2010

RUB 175.2 bn (USD 5.2 bn)- 3.3% compared with Jan 1, 2010 + 20.7% compared with July 1, 2009+ 1.3% compared with Apr 1, 2010

* Customer accounts are calculated as a sum of customer deposits and promissory notes and bills of exchange (other debt securities in issue)

RUB 239.5 bn (USD 7.9 bn)+ 1.6% compared with Jan 1, 2010 + 11.9% compared wit h July 1, 2009+ 3.2% compared with Apr 1, 2010

RUB 33.5 bn (USD 1.1 bn)+ 0.9% compared with Jan 1, 2010 + 35.0% compared wit h July 1, 2009+ 7.7% compared with Apr 1, 2010

Key indicators

33



4

Strong Franchise

Client baseClient base Market share in St. Petersburg: Retail banking*Market share in St. Petersburg: Retail banking*

Market share in St. Petersburg: Corporate banking*Market share in St. Petersburg: Corporate banking*

* Central Bank of Russia, Association of North-West banks, Bank Saint Petersburg own estimates44

Loans: market share as at July 1, 2010*Loans: market share as at July 1, 2010*

451581

774900

26

31

35

35

987

35

2006 2007 2008 2009 September 1,2010

Retail Corporate

9,7%

12,9%

15,7% 15,1%13,9%

11,2%11,5%11,9%11,8%

8,9%

YE 2006 YE 2007 YE 2008 YE 2009 July 1, 2010

Corporate loans Corporate deposits

3,5%

6,3%7,1%

6,1% 5,7%6,0%

7,8%

9,5% 9,7% 9,3%

YE 2006 YE 2007 YE 2008 YE 2009 July 1, 2010

Retail loans Retail deposits

Sberbank20,6%

VTB Group14,0%

Others39,5%

Bank "Russia"6,0%

Bank Saint Petersburg

13,5%CIT Finance

6,4%



5

Financial Highlights

Assets, RUB, bnAssets, RUB, bn

Income dynamics, RUB mlnIncome dynamics, RUB mln Income and expenses data, RUB mlnIncome and expenses data, RUB mln

Capital, RUB bnCapital, RUB bn

55

4 222

2 889

3 590

4 491 4 326

3 343

823 847 9091194

859

3 086

2 384 2 3052 737 2 780

10851 185

1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010

Income before tax, provisions and operating expenses Operating expenses Provisions

3 085 2 993

326 373 359 430 337 426

1 283

319641 699 886

2 305 2 285

2 7743 057

-155

1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010

Net Interest Income Net Fee and Commision Income Net Trading Income

214,0217,5

235,6232,1

239,5

July 1, 2009 October 1, 2009 January 1, 2010 April 1, 2010 July 1, 2010

26,4 27,4

33,2 33,1 33,5

July 1, 2009 October 1, 2009 January 1, 2010 April 1, 2010 July 1, 2010



6

Results for 2Q 2010

Cost/income and NIMCost/income and NIM Operating expenses, RUB mlnOperating expenses, RUB mln

Net income dynamics, RUB mlnNet income dynamics, RUB mln

66

367

771

350

-289

322

12,1%

5,6%6,6%6,8%

-6,2%

-300

700

1700

2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010-10,0%

0,0%

10,0%

20,0%

Net Income ROAE

323 435 539 460 502

395346

519

280441128 128142

119

136

2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010

Expenses related to premises and equipment

Other administrative and operating expenses

Staff costs

846 9091 194

8591 08519,9%

32,5%

27,5%25,3%29,3%

5,5%

4,9%

5,6% 5,6%

5,4%

0,0

10,0

20,0

30,0

40,0

2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010

4,5%

5,0%

5,5%

6,0%

Cost/Income NIM

CommentsComments

● NIM stable

● Provision charge decreased from RUB 2.8 bn in 1Q 201 0 to RUB 1.2 bn in 2Q 2010

● Trading income is down due to the volatile markets

● ROAE recovering gradually



7

Results for 1H 2010

Cost/income and NIMCost/income and NIM Operating expenses, RUB mlnOperating expenses, RUB mln

CommentsCommentsNet income dynamics, RUB mlnNet income dynamics, RUB mln

77

● Strong revenues generation – RUB 7.7 bn for 1H 2010

● Net interest income is a key source of income

● Cost/income ratio consistently low

25,4%

42,7% 40,2%

34,7%

25,1%

5,5%5,2%6,5%

5,5%6,7%

FY 2006 FY 2007 FY 2008 FY 2009 1H 2010

-2,0%

3,0%

8,0%

13,0%

Cost/Income NIM

2 0001 190

640

1 122

2 77330,5%

20,6%16,4%

2,9%8,9%

0

1000

2000

3000

FY 2006 FY 2007 FY 2008 FY 2009 1H 2010

0,0%

10,0%

20,0%

30,0%

40,0%

Net Income ROAE

732 974 962

668866 721

269

264261

1H 2009 2H 2009 1H 2010

Expenses related to premises and equipment

Other administrative and operating expensesStaff costs

1 6692 104

1 945



8

Interest Rates and Assets/Liabilities Ratios

Average interest rates on the liabilities side*Average interest rates on the liabilities side* Average interest rates on the assets side**Average interest rates on the assets side**

88

CommentsCommentsAverage IEA and IBL (RUB bn) Average IEA and IBL (RUB bn)

* Average liabilities: due to banks, customer accounts including current accounts, debt securities in issue

** Average assets: loans, due from banks, securities portfolio, correspondent accounts

� Pre-crisis level of interest rates on the asset and liabilities side reached

� Interest rate on retail deposits flat due to struct ure change (RUB / FX shift)

� Loans / Deposits Ratio leaves room for more leverag e

141,9

173,7

189,0

221,4

197,9211,3

178,7

123,8

161,7

201,8

224,5216,3

116,7

207,6203,7196,5

155,8

135,3

179,7

197,4

92,3%92,3%

87,4%

99,7%99,2%99,0%100,5%102,8%

94,9%

102,4%

0,0

50,0

100,0

150,0

200,0

1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010

80,0%

Average IEA Average IBL Loans/Deposits Ratio

12,3%

14,2% 14,1%

15,0%

15,9%

13,1%

14,5%14,8%14,8%

12,0%

14,4%

13,7%

13,0%12,7%

11,0%

13,2%12,7%

12,4%

11,7%

11,0%

1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010

Average interest rate on loans Average interest rate on IEA

10,3%

8,4%

7,8%

8,7%9,1%

11,3%

9,8%

9,0%

7,9% 8,1%

9,3%

8,1%

9,6%

9,3%9,2%9,8%9,8% 9,9% 9,7%

9,0%

6,9%

8,1%

6,9%

6,1%6,1%

7,4%7,9%

7,2%6,7%

6,0%

1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010

Average interest on term corporate deposits Average interest on term retail deposits

Average interest on liabilities



9

Main Factors affected NIM in 2Q 2010

1Q 2010 NIM – 5.57%1Q 2010 NIM – 5.57%

992Q 2010 NIM – 5.38%2Q 2010 NIM – 5.38%

Average interest rate

Contribution to NIM change:

Loans - 84 bp

Due to banks + 55 bp

Retail term deposits + 17 bp

- 12 bp

Average balance

Contribution to NIM change:

Retail term deposits - 8 bp

Corporate customer accounts +38 bp

Other debt securities in issue - 8 bp

Bonds in issue - 14 bp

+ 8 bp

Other factors -15 bp



10

Financial Summary (RUB), 2006 – 1H 2010

1010* Customer accounts are calculated as a sum of customer deposits and promissory notes and bills of exchange (other debt securities in issue)

RUB bn 2006 2007 2008 2009 1H 2010

Loans and Advances to Customers 39.73 91.73 144.88 158.20 157.62

Total Assets 60.58 126.66 215.72 235.61 239.46

Customer Accounts* 47.51 96.15 144.16 181.14 175.23

Total Liabilities 56.07 111.65 196.91 210.32 213.88

Total Shareholders’ Equity 4.51 15.00 18.81 25.28 25.58

Total Capital 6.51 18.51 24.23 33.22 33.53

Net profit 1.19 2.00 2.77 0.64 1.12

Net Interest margin 6.70% 5.46% 6.47% 5.22% 5.57%

Capital Adequacy 12.77% 16.41% 14.15% 15.19% 14.35%

Cost-to-Income ratio 42.60% 40.20% 34.66% 25.08% 19.86%

Provisions / Gross loans 3.88% 2.74% 3.88% 9.14% 11.05%

Loans / Deposits 83.62% 95.40% 100.51% 87.36% 92.29%

ROAA 2.61% 2.15% 1.62% 0.28% 0.95%

ROAE 30.50% 20.60% 16.41% 2.90% 8.89%



11

Financial Summary (RUB), q-o-q, 2Q 2009 – 2Q 2010

-6.16%

-0.54%

99.16%

7.29%

29.31%

13.83%

4.90%

-0.29

26.39

18.61

195.43

145.22

214.00

143.90

2Q 2009

6.81%

0.59%

99.69%

8.54%

25.33%

14.08%

5.45%

0.32

27.35

18.93

198.53

146.23

217.47

145.77

3Q 2009

6.58%

0.64%

87.36%

9.14%

27.49%

15.19%

5.61%

0.37

33.22

25.28

210.32

181.14

235.61

158.20

4Q 2009

5.57%

0.61%

92.29%

10.37%

19.86%

14.35%

5.57%

0.35

33.15

25.63

206.44

172.95

232.08

159.61

1Q 2010RUB bn 2Q 2010

Loans and Advances to Customers 157.62

Total Assets 239.46

Customer Accounts* 175.23

Total Liabilities 213.88

Total Shareholders’ Equity 25.58

Total Capital 33.53

Net profit 0.77

Net Interest margin 5.38%

Capital Adequacy 14.35%

Cost-to-Income ratio 32.47%

Provisions / Gross loans 11.05%

Loans / Deposits 92.29%

ROAA 1.31%

ROAE 12.08%

1111* Customer accounts are calculated as a sum of customer deposits and promissory notes and bills of exchange (other debt securities in issue)



12

Loan portfolio and quality

Loan portfolio and provisionsLoan portfolio and provisions Loan portfolio by sector, July 1, 2010Loan portfolio by sector, July 1, 2010

CommentsCommentsProvision charge (RUB mln) and problem loans, %Provision charge (RUB mln) and problem loans, %

1212

� Loan portfolio growth in 1H 2010:Before provisions: +1.8% compared with January 1, 2 010After provisions: -0.4% compared with January 1, 20 10

� As at July 1, 2010:- Corporate overdue loans – 6.82% (7.11% as at Januar y 1, 2010)- Retail overdue loans – 10.68% (10.07% as at January 1, 2010)

� 0.16% (RUB 286 mln) of the loan portfolio written o ff in 1H 2010

� Provision charge decreased from RUB 2.8 bn in 1Q 201 0 to RUB 1.2 bn in 2Q 2010

* Ratios for all dates except Jan 1, Apr 1, and Jul y 1, 2010 are ratios for restructured loans

177,2178,1174,1159,4155,2150,0

11,1%10,4%

9,1%8,5%

7,3%6,0%

0,00

30,00

60,00

90,00

120,00

150,00

180,00

1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010

RU

B b

ln

0,0

2,0

4,0

6,0

8,0

10,0

12,0

(%)

Loan portfolio Provisions / Gross loans

Other7,2%

Gov ernment f inanced

3,1%Transport

3,2%

Chemical industry4,0%

Sport4,2%

Oil and gas4,8%

Food industry5,2%

Financial serv ices

7,7%

Indiv iduals

8,2% Real estate9,9%

Construction

12,8%

Heav y machinery

and ship-building14,5%

Trade

15,2%

3 086

2 384 2 305

2 737 2 780

1 185

7,1%

4,5%

7,5%

6,9%

7,4%8,6%

6,9%

6,7%

6,6%

7,9%

7,1%6,3%

0

1000

2000

3000

1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 20100

5

10

15

Provisions Overdue loans / Gross loans Impaired not past due* / Gross loans



13

Assets and liabilities structure

Assets structure, July 1, 2010Assets structure, July 1, 2010 Liabilities structure, July 1, 2010Liabilities structure, July 1, 2010

1313

Comments Comments

� Loans to deposit ratio - 92%

� Balance structure is back to the pre-crisis one

Loans and advances to

customers; 65,8%

Securities portfolio; 11,5%

Fixed and other assets; 11,6%

Cash & cash equivalents; 7,3%

Amounts receivable under reverse

repurchase agreements; 3,3%

Due to other banks; 8%

Capital markets; 8%

Shareholders' equity; 11%

Customer accounts

(individuals); 27%

Customer accounts

(corporates); 46%



14

Capital and funding

Capital adequacy, %Capital adequacy, % Repayment schedule for 2010-2013, USD mlnRepayment schedule for 2010-2013, USD mln

CommentsComments

1414

12,8%

16,4%14,1%

15,2% 14,9%

10,5%10,7%9,7%

12,3%

7,9%

YE 2006 YE 2007 YE 2008 YE 2009 July 1, 2010

Total Capital ratio Tier 1 Capital ratio

8,638,5

254,1

54,2

2010 2011 2012 2013

Risk-weighted assets, RUB bnRisk-weighted assets, RUB bn

44,3

97,9

162,0178,8

9,5 11,2

177,0

5,2

32,1 35,0

9,7

4,91,8

5,1

4,0

YE 2006 YE 2007 YE 2008 YE 2009 1H 2010

Risk weighted assets - banking book Risk weighted assets - trading book

Risk weighted off-balance-sheet assets

51

113

171

219 225

� Capital adequacy comfortable

� Dividends for 2009:- dividends on the ordinary and preferred stock - in line with the

previous periods (RUB 33.2 mln);- dividends on the type A preferred stock – according to the Bank’s

Charter (RUB 829 mln)

� April, 2010 – RUB 5 bn bonds issue (coupon rate – 8.1 % annually)

� August, 2010 – USD 55 mln club syndicated loan attrac ted

� September 10, 2010: RUB bond book building started



15

Presentation team

Konstantin BalandinDeputy Chairman of the Management Board

Konstantin NoskovDirector, International Finance and Financial Institutions

1515

All information for the investors is available on the Bank’s web site: http://en.bspb.ru/194/Contact information:E-mail: [email protected]: +7 (812) 332 78 36

Tatiana OreshkinaHead of IR

Documents

BANK SAINT PETERSBURG 1H 2010 IFRS ResultsStrong Franchise Client baseClient base Market share in St. Petersburg: Retail banking*Market share in St. Petersburg: Retail banking* Market

BANK SAINT PETERSBURG 1H 2010 IFRS ResultsStrong Franchise Client baseClient base Market share in St. Petersburg: Retail bankingMarket share in St. Petersburg: Retail banking Market