VTB Bank JSC revenue jumped on 19.5% in 2015

17 Mar 2016 • About VTB Bank JSC ($VTBR) • By InTwits

VTB Bank JSC reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:

VTB Bank JSC has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.8%. At the same time it's a lot of higher than industry average of 3.1%.
CAPEX is quite volatile: 349,036 in 2015, 271,330 in 2014, 208,611 in 2013, 169,213 in 2012, 118,449 in 2011
The company has potentially unprofitable business model: ROIC is at 3.6%
It operates with high leverage: Net Debt/EBITDA is 2.2x while industry average is

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

VTB Bank JSC ($VTBR) key annual financial indicators

mln. RUB	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	486,100	720,100	838,600	1,088,300	1,300,000	19.5%
Net Income	89,400	85,800	101,500	4,100	10,700	161.0%
Balance Sheet
Cash	478,900	632,800	413,000	780,700	641,500	-17.8%
Short Term Debt	699,700	759,900	624,600	653,300	1,191,500	82.4%
Long Term Debt	1,640,200	1,986,500	2,515,100	3,915,800	3,007,800	-23.2%
Cash flow
Capex	36,900	26,300	34,500	53,600	51,100	-4.7%
Ratios
Revenue growth	23.8%	48.1%	16.5%	29.8%	19.5%
Net Income Margin	18.4%	11.9%	12.1%	0.4%	0.8%	0.4%
CAPEX, % of revenue	7.6%	3.7%	4.1%	4.9%	3.9%	-1.0%
ROIC	8.9%	8.6%	7.9%	4.6%	3.6%	-1.0%
ROE	15.4%	13.2%	12.4%	-0.4%	0.2%	0.5%

Revenue and profitability

VTB Bank JSC's Revenue jumped on 19.5% in 2015.

Net Income marign showed almost no change in 2015.

Capital expenditures (CAPEX) and working capital investments

In 2015 the company had CAPEX/Revenue of 3.9%. VTB Bank JSC showed almost no change in CAPEX/Revenue from 2012 to 2015. For the last three years the average CAPEX/Revenue was 4.3%.

Return on investment

The company operates at low ROIC (3.61%) and ROE (0.17%). ROIC decreased slightly on 1.0 pp from 4.6% to 3.6% in 2015. ROE increased slightly on 0.52 pp from -0.35% to 0.17% in 2015.

Leverage (Debt)

Debt decreased on 8.1% in 2015 while cash dropped on 17.8% in 2015.

Appendix 1: Peers in Banks

Below you can find VTB Bank JSC benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.

Top companies by Revenue growth, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Kazkommertsbank JSC ($KKB)			6.0%	16.3%	41.4%
Sberbank Of Russia ($SBER)		37.2%	25.1%	23.4%	27.4%
Commercial Intl Bank(Egypt)S.A.E ($CBKD)		37.6%	23.7%	18.9%	26.8%
Yapi Ve Kredi Bankasi As ($YKBD)		14.9%	4.8%	19.7%	25.3%
Mcb Bank Ltd ($MCBS)		3.0%	-1.7%	19.4%	22.4%
Median (40 companies)	-8.9%	9.3%	4.2%	11.5%	5.5%
VTB Bank JSC ($VTBR)		48.1%	16.5%	29.8%	19.5%

Top companies by CAPEX/Revenue, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Lloyds Banking Group ($LLPC)		8.0%	8.9%	13.1%	13.6%
Banco Santander Sa ($BNC)	2.2%	2.7%	2.6%	8.9%	10.2%
Guaranty Trust Bank ($GRTB)	10.0%	6.7%	6.1%	6.8%	7.7%
Diamond Bank ($DBPA)		8.2%	7.9%	6.0%	6.7%
Banco Bilbao Vizcaya Argentaria Sa ($BVA)	4.1%	5.1%	3.8%	4.5%	6.0%
Median (38 companies)	2.3%	2.2%	2.7%	2.1%	2.5%
VTB Bank JSC ($VTBR)	7.6%	3.7%	4.1%	4.9%	3.9%

Top companies by ROIC, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Commercial Intl Bank(Egypt)S.A.E ($CBKD)	16.3%	21.7%	26.9%	30.1%	30.3%
Guaranty Trust Bank ($GRTB)	14.2%	19.8%	18.9%	17.8%	16.0%
Mcb Bank Ltd ($MCBS)	18.7%	15.0%	14.4%	15.8%	14.9%
United Bank Ltd ($UBLS)	12.6%	11.7%	11.8%	13.8%	12.6%
Zenith Bank ($ZENB)	13.8%	19.0%	17.6%	15.0%	11.2%
Median (40 companies)	6.9%	6.0%	5.3%	4.4%	3.3%
VTB Bank JSC ($VTBR)	8.9%	8.6%	7.9%	4.6%	3.6%

VTB Bank JSC stock price chart

VTB Bank JSC financials

mln.	FY2010	FY2011	FY2012

Revenue	392,500	486,100	720,100
EBITDA	0.000	0.000	0.000
Net income	58,200	89,400	85,800
CAPEX	31,300	36,900	26,300
Debt	1,381,600	2,339,900	2,746,400
Cash	301,900	478,900	632,800

About VTB Bank JSC

JSC VTB Bank, together with its subsidiaries, provides various financial services. The company offers various retail banking products and services, including deposits; consumer, car, mortgage, and other retail loans; bank cards; and remote banking and transfer services. It also provides corporate banking products and services comprising transaction banking, trade finance, lending, custody, real estate development financing, currency and interest rate forward transactions, securitization and security market products, credit derivatives, structured loans, commodity market products, and foreign exchange transaction services, as well as precious metals operations. In addition, the company offers investment banking solutions, such as trading operations in the global markets, organising debt and equity issuance, M&A transactions and consulting services, private equity investments, asset management, and others. Further, it provides leasing, factoring, insurance, and private pensions. The company was formerly known as Vneshtorgbank and changed its name to JSC VTB Bank in March 2007. JSC VTB Bank was founded in 1990 and is headquartered in Moscow, the Russian Federation.