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April 2019
Republic of Belarus: General Information …………………………………………………… 3
Belagroprombank: General Information …...…………………………………………….….. 5
Belagroprombank: Financial Indicators ………………………………….………………… 14
Belagroprombank: International Business ……………………………………….………… 19
Contacts ...……..….………………………………..…………………………………………... 24
Contents
Republic of Belarus:General Information
2017 GDP Structure
Population 9.5 mln
Foreign trade turnover, 01.02.2019 USD 5.9 bn
Inflation, 01.03.2019 2.2%
Gold & Currency reserves, 01.04.2019 USD 7.25 bn
External public debt, 01.03.2019 USD 16.7 bn
Credit ratings:
S&P B/stab.
Fitch Ratings B/stab.
Moody‘s B3/stab.
Republic of Belarus: overview
4 Sources: National Bank of Belarus, National Statistical Committee of Belarus
USD 54.4 bn
Manufacturing 26.8%Agriculture, Hunting,
Forestry & Fishing 7.8%
Net taxes on products 13.2%
Other 31.4%Construction 5.3%
Transport & Communications5.8%
Wholesale & Retail Trade 9.7%
• Belarus has an open export–oriented economy
•Natural resources: potash, rock salt, timber, oil & natural gas, granite, peat, dolomiticlimestone, chalk, slate stone
• Refinancing rate since 27.06.2018 – 10% p.a.
Belagroprombank:General Information
Universal commercial bank
State holds the major share in the bank's ownership structure
Government Agent on servicing State Programs
Systemically important bank Leading positions in banking sector of
Belarus:
– #2 by authorized fund and equity
– #2 by total assets and customer deposits
– #2 by loans granted to SMEs
Second largest network: about 290 branches*
About 36 thousand corporate and 1.7 mlnretail clients
Belagroprombank was recognized as the Best Bank in the Republic of Belarus in 2017 by Global Banking & Finance Review in three nominations: Best Corporate Bank, Best CSR Bank, Best Retail Bank.
Key financials 3Q 2018BYN mln
3Q 2018USD mln
Assets 9 876 4 676
Share capital 3 174 1 503
Loans to customers 4 803 2 274
Customer accounts 5 679 2 689
Profit 42 20
Tier 1 capital adequacy ratio, % 15.7
Belagroprombank’s Overview
6 * As of 01.04.2019
Data for 9m 2018 (non −audited IFRS figures)
Credit rating: S&P – В, Stable (at sovereign level)
The only bank in Belarus with in-depth knowledge of agriculture - the core export-oriented sector of Belarus economy
In terms of Equity Belagroprombank ranks 25th among largest banks of Central and Eastern Europe according to magazine “The Banker”.
1991–199603.09.1991
Belagroprombank was created on the basis of Belarussian branch of Agrobank of USSR
1992 – the Bank obtained general license to perform banking activities in foreign currency
1994 – the Bank became a member of SWIFT international settlement system
1996 – the Bank obtained the status of the Government Agent on serving state programs
Belagroprombank joined Reuters system
2004 – the Bank’s financial statements were prepared in accordance with IFRSand audited by Deloitte and Touche
Long-term rating of the Bank was assigned at CCC+ by Fitch Ratings
2005 – the Bank joined Visa Internationalpayment system
The Bank tapped international debt capital markets, the total volume of borrowings reached USD 340 mln
2007 – The Bank has opened its representative office in Milan, Italy
The Bank becamea member of CICA(InternationalAssociation ofAgricultural Credit)
2008 – Moody’s assigned rating for the Bank for the first time
2009 – The Bank held conference on agroecotourism development in Belarus
2010 – Long-term rating of the Bank was assigned at B+ by Standard & Poor’s
Belagroprombank was the first among Belarusian banks to issue 3 year USD 100 mln CLN
The Bank became the member of MasterCard Worldwide
Belagroprombank was the first among Belarusian banks to implement quality management system ISO 9001
2014 – The Bank became the participant of the Moscow Exchange trading
The quality management certificate against ISO 9001:2008 is confirmed by TÜV Thüringen certification authority
2015 – The Bank was accepted as a full member of Polish-Belarusian Chamber of Commerce
2016 - Belagroprombank was the first among Belarusian banks to raise the Syndicated Loan nominated in three currencies
Belagroprombank was the first in Belarus since 2008 to raise the Syndicated Loan from exclusively European banks
2017 – The Bank was named Best Trade & Structured Finance bank in Belarus 2017 by international business magazine bne IntelliNews
Belagroprombank was the first among Belarusian banks to raise the Syndicated Loan for a period of 1,5 years with an option of extension for a subsequent similar term
2018 – The Bank joined the TFP of EBRD in the status of the Confirming Bank.
Belagroprombank raised the largestEuropean syndicated facility in Bank’s history
2019 - Belagroprombank was the first in the Republic of Belarus to raise a credit line of the European Investment Bank to finance small and medium-sized businesses
History and Development
7
1997–2007 2008–2014 2015–2019
Belagroprombank’s market positions
8
Assets Retail Deposits
Equity Corporate Loan Portfolio
Source: National Bank of the Republic of Belarus
Data as of 01.03.2019
16%
15%14%
15%
Governance Structure
9
Supervisory Board is headed by theMinister of Finance of the Republic ofBelarus
In accordance with the best internationalpractices, independent directors aremembers of the Supervisory Board
General Shareholders’
Meeting
Supervisory Board
Management Board
Asset-Liability Management Committee
Bad Loans Committee
Credit Committee
Audit CommitteeRisk Committee
Finance Committee
IT Committee
Corporate Governance and Remuneration
Committee
Belagroprombank’s Branch Network as of 01.04.2019
Belagroprombank’s subsidiaries
The Bank is a parent company of a Groupwhich consists of the following enterprisesconsolidated in the financial statements
Belagroprombank’s Group and its Branch Network
10
JSC “Ozeritskiy-Agro”(agriculture)
JSC “Turovschina”(agriculture)
JSC “Agroleasing”(finance leases)
UE “Agrobusinessconsult”(consulting)
100%
92.33%
96.10%
99.70%
Headquartered in Minsk
Representative office in Milan, Italy
Implementation of regional network transformation strategy
About 290 branches
11
Belagroprombank’s Development Strategy 2018-2020
Corporate business
Retail business
International Cooperation
• Segmentation of front units responsible for cooperation with large clients and SMEs as well as segmentation of middle units
• Adoption of personal managers system as well as active sales system• Optimization of product line
• Separation of sales and support units, universalization of sales specialists • Development of system and channels of sales• Standardization of approaches to sales and customer service• Optimization of product line, implementation of innovative services• Development of card business in regions
• Search for new funding instruments• Establishment and development of cooperation with international financial
organizations and export credit agencies• Development of existing and introduction of new investment banking
services
Strategic goals:
• Bank №1 for financial support for individuals and SMEs in regions of the Republic of Belarus.
• Internal efficiency.
• Optimization of risk management system.
• Maximum centralization and optimization of business processes.
Risk-Management
12
Bank's risk management system is aimed atproviding financial reliability, stable and securefunctioning while achieving common strategicobjectives of the Bank
Responsible for the risks generated by them in the normal course of business
Carry out independent risk management functions
Structural divisions
Banking risksdivision
Internal auditdivision,
External audit
Conducts an independent audit of the risk management system functioning
Constant risk monitoring by:
Bank's risk management structure is headed bythe General Meeting of Shareholders, theSupervisory Board and the Risk Committee ofthe Supervisory Board.
Bank generates reports onconsolidated basis for: activity effectiveness
monitoring; risks (safe functioning
standards) level monitoring; ensuring information
transparency (informing theNational Bank of the Republicof Belarus, contractors andother stakeholders).
Risks
Credit
Operational
Reputation
Currency
Strategic
Pricing
Liquidity
Interest
Corporate banking Retail banking International operations
About 36 000 clients The clients are the large and
medium-sized manufacturing companies and entities in the agricultural sector
Total corporate loan portfolio of about USD 2.1 bn (in equivalent)
State lending programs for the agricultural sector
Wide range of services includes:– Lending, leasing,
factoring operations– Credit support of trade
operations– Advisory services
Providing credit support to the subjects of agroecotourism
About 1.7 mln clients Area of strategic importance
and development for the Bank Total retail loan portfolio
of about USD 217 mln (in equivalent)
Product offering includes:– Multi-currency deposits– Money transfers– Foreign currency exchange – Payment cards (BelCart, Visa,
Maestro, MasterCard)– Payments services– SMS-banking– Internet-banking– Consumer lending,
car lending, mortgages– Selling of gold, platinum
and silver bullions
One of the leaders in trade- and ECA backed finance in Belarus
More than USD 9.06 bn raised since 2005 by means of trade finance, ECA-covered financing, DCM transactions etc.
More than USD 1,3 bn raised since 2006 by means of syndicated loans and issuing of credit notes, etc.
Cooperation with more than 100 financial institutions from 30 countries
Recognition by 18 ECAs (SACE, Hermes, KUKE, EGAP, OeKB and others)
Representative office in Milan, Italy
Business Overview
13 Data for 9m 2018 (non −audited IFRS figures)
Belagroprombank:Financial Indicators
49% 34%
9%4%4%
Loans to customers (49%)
Investment in securities
(34%)
Cash and balances with the
National Bank of the
Republic of Belarus (9%)
Property, equipment and
intangible assets (4%)
Other assets (4%)
Total assets Assets structure, %
Major part of assets formed by loans to clients (mostly to corporates)
Investments in securities form over 30% of the total Bank’s assets
Аssets
15 Data for 9m 2018 (non −audited IFRS figures)
5,7
7,5 7,8
9,0 9,09,4
9,9
6,6
7,9
6,6
4,8 4,6 4,8 4,7
2012 2013 2014 2015 2016 2017 3Q 2018
BYN bn. USD bn. (in eqv.)
Sector breakdown
Assessment of the credit ratings to the clients (10 rating categories, priority is given to the clients of top four categories)
Establishment of limits on the clients (depending on the amount of the limit, respective decision taken at various levels of governance)
Constant monitoring of credit risks
100% of the loan portfolio is secured
Loans structure by collateralCredit policy principles
Loan Portfolio Breakdown
16
Bank has a high-quality and diversified loanportfolio
Agriculture’s portion in the total loan portfolio isdecreasing and amounts to 29%. Agriculture itselfincludes both primary agricultural production ofall types and its further processing
The ratio of provisions against losses to the totalloan portfolio is 9.71%
Construction 2%Government bodies 2%
Other 7%
Agriculture 29%Manufacturing 41%
Trade 10%
Individuals 9%
Property & inventory 45%
Guarantees of the government & local
authorities 10%
Other 5%
Lien over property & receivables 11%
Real estate 29%
Data for 9m 2018 (non −audited IFRS figures)
Structure of liabilities, %Share capital
Tier 1 Capital adequacy ratio, % The capital/assets ratio provides significant capability to cover unforeseen loan losses in addition to existing reserves
Capital adequacy ratio of Belagroprombank conforms to Basel standards and meets all requirements of the National Bank of the Republic of Belarus
According to the standards set by Basel Accords capital adequacy ratio must be at least 8%
Capital and Sources of Funding
17
Other 3%
Due to banks & the National Bank 19%
Debt securities issued 11%
Customer accounts 67%
22,7 23,4 22,117,4
13,218,1 15,7
0,0
10,0
20,0
30,0
2012 2013 2014 2015 2016 2017 3Q
2018
In 2017 Belagroprombank’s authorized fund was increased by BYN 428.0 mln (USD 230 mlnin equivalent).
Data for 9m 2018 (non −audited IFRS figures)
1,6
2,9 2,9 2,9 2,93,2 3,2
2,3
3,0
2,4
1,5 1,5 1,6 1,5
2012 2013 2014 2015 2016 2017 3Q 2018
BYN bn.
USD bn. (in eqv.)
Net interestincome 44%
Interest Income
and Expenses Dynamics, BYN bn
Operating Income
and Expenses Dynamics, BYN bn
Operating Expenses BreakdownOperating Income Breakdown
BYN
0.3 bn
Income and Expenses
18
Other non - interest income 26%
Net fee & commission income 30%
Other 24%
Personnel 36%
Contributions to deposits protection fund for individuals 5%
Utilities, rentals & maintenance 6%
Depreciation and amortization 9%
Social security contributions 11%
BYN
0.3 bn
1,21,3
1,11,3 1,3
1,0
0,6
0,9 1,00,8
1,10,9
0,50,3
0
1
2
2012 2013 2014 2015 2016 2017 3Q 2018
Interest income Interest expenses Net interest income
0,3
0,5 0,50,4 0,4 0,4
0,30,2
0,3 0,3 0,3 0,30,4
0,3
0
1
2012 2013 2014 2015 2016 2017 3Q 2018
Operating income Operating expenses Profit before tax
Payment information transmission and
processing, software maintenance 9%
Data for 9m 2018 (non −audited IFRS figures)
Belagroprombank:International Business
International markets activities
Belagroprombank has been accepted by 18ECAs for participation in co-financing ofapplicable transactions
Belagroprombank cooperates with more than100 banks from 30 countries of the world
Bank provides all available instruments forproject financing, precisely tailored to fit theindividual requirements of each client
Our achievements:
Bank became Belarusian financial marketpioneer in countries such as Italy and Hungary,concluding debut deals for Belarus.
Belagroprombank was the first amongBelarusian banks to sign a loan agreement witha non-bank financial institution resided in theUnited States - Deere Credit, Inc.
Bank implemented a unique deal for theRepublic of Belarus denominated in Japaneseyen.
Bank implemented a significant deal raising aloan under the cover of Euler Hermes totalingEUR 100 million for 10-year term without theguarantee of the Government of the Republic ofBelarus. Insurance cover was provided outsidethe country limit for Belarus and significantlyexceeded it.
Bank carried out raising credit facility withIsrael’s ASHR’A insurance cover for a 7-yearterm.
International Business
20
USD 43.5 mln
1 year
Club style
November 2009
EUR 30 mln
1 year
JSC VTB Bank &
VTB Bank Europe plc
August 2007
International Funding Track Record.
Syndicated Loans
21
2006 2007 2008
2013
2009
2014 2016
EUR 30 mln
1 year + 1
JSC VTB Bank &
VTB Bank Europe plc
August 2006
First syndicated loan for Belarus state-owned
bank raised for the term of 1 year + 1
Extension of the loan with the
original amount and decreased
margin
RUB 1 bn
1 year
JSC VTB Bank
June 2007
“Deal of the Year” according to
Trade&ForfaitingReview Magazine
USD 40 mln
1 year + 1
Commerzbank AG
Banco Finantia SA
UniCredit Group
February 2008
For the first time in Belarus UniCredit
Group acted in capacity of MLA
USD 55 mln
1 year + 1
Banco Finantia SA
Credit Suisse
Intesa SanPaolo
September 2008
Intesa Sanpaolo SpAfor the first time in
Belarus acted in capacity of MLA
The only deal closed in Belarus’ banking
sector in 2009
USD 63.5 mln
1 year + 1
JSC VTB Bank
OJSC “ALFA-BANK”
VTB Bank
(Deutschland) AG
October 2013
Broad geography of the deal: Russia
and Europe
USD 70 mln
EUR 29 mln
1 year
JSC VTB Bank
VTB Bank
(Deutschland) AG
October 2014
Extension of the loan with the increase of the
original amount and accession of new European banks
EUR 75 mln
USD 4 mln
RUB 7 bn
6 months + 6/1 year
AO “ALFA-BANK”
TRANSKAPITALBANK
Promsvyazbank PJSC
March 2016
The first syndicated loan in Belarus
nominated in three currencies
EUR 22 mln
6 months + 6
AKA Ausfuhrkredit-
Gesellschaft mbH
May 2016
The first European
syndicated loan in Belarus since
2008
2017
EUR 190 mln
1 year +1/1.5 year + 1.5
PJSC “Bank Otkritie
Financial Corporation”
TRANSKAPITALBANK
April 2017
First syndicated loanfor Belarus raised for the
term of 1.5 year + 1.5
2018
EUR 40 mln
1 year + 1
Commerzbank AG
November 2018
The largest European syndicated facility in Bank’s
history
USD 100 mln3 years
MLA
“Investment Company
“Troika Dialog”
& The Royal Bank
of Scotland plc
November 2010
International Funding Track Record.
Notes issue
22
EUR 70 mln1 year
MLA
VTB Bank Europe plc
& Banco Finantia SA
December 2006
In December 2006 Belagroprombank was thefirst Belarusian bank to raise funds via notesissuance
One-year notes were successfully placed amonginvestors mostly based in UK and WesternEurope representing emerging markets funds aswell as private banks
In November 2010 Belagroprombank completedplacement of its USD 100 mln three-year issuepriced at par with a coupon of 9.95% p.a. andlisted on the Frankfurt Stock Exchange
Belagroprombank is the only bank in Belarusto price internationally distributed notes
2006 2010
23
Awards and Successes
“Bank of the Year 2002”
in Belarus
“Best Bank in Belarus 2007”
“Award forExcellence 2007”
“Best Bank in Belarus 2008”
“Deal of the year 2007”
“Brand of the year 2009” “For exceptional quality of payment
messages, 2009, 2010”
Deal
of the year
2007Syndicated Loan
RUB 1 bn
“Deal of the Year”in 2009
“STP Award 2011, 2012” “Cbonds Awards 2013” “Best Bank in Belarus 2015”
“Best trade & Structured Finance bank in Belarus 2017”
Ms. Natallia P. SVIRSKAYAHead of International Business Department
Tel.: + 375 17 229 62 08Fax: + 375 17 229 62 51
e-mail: [email protected]
Contacts
24
Mr. Pavel P. RYNKOVDeputy Head of International Business Department
Head of Financial Institutions
Tel.: + 375 17 229 62 09Fax: + 375 17 229 62 51
e-mail: [email protected]
Mr. Siarhei P. CHUHAIDeputy Chairman of the Board
Tel.: + 375 17 229 62 07Mob.: +375 29 150 68 05 Fax: + 375 17 229 62 75
e-mail: [email protected]
