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V Tashkent International Investment Financial Forum 4 – 8 April 2012. Table of Contents. History of KDB Overview of KDB Financial Group UzKDB Bank RBS NB Uzbekistan CJSC Vision & Strategy. Overview - KDB. Current Structure KDB Financial Group KDB Profile Global Presence.
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V Tashkent International Investment Financial Forum 4 – 8 April 2012 +99871 120 80 00 www.kdb.uz
Table of Contents History of KDB Overview of KDB Financial Group UzKDB Bank RBS NB Uzbekistan CJSC Vision & Strategy +99871 120 80 00 www.kdb.uz
Overview - KDB Current Structure KDB Financial Group KDB Profile Global Presence +99871 120 80 00 www.kdb.uz
Current Structure (as of March 2012) Government 100% Korea Finance Corporation 1 9.7% 90.3% KDB Financial Group 100% 100% 43% 99.9% 84.2% KDB Daewoo Sec. KDB Capital KDB Asset Mgmt KIAMCO 85.05% 2 1 Ownership through any entity in which the government holds more than 50% of its voting rights, construed as ownership by the government. 2 Consists of the 60.35% stake held by SPC and the 24.70% stake held by PEF KDB Life Insurance 4 +99871 120 80 00 www.kdb.uz
KDB Financial Group • Established : Oct. 28, 2009 • Ownership : 100% Government • Total asset : KRW172 trillion (End of 2011) • Combined strengths of Korea’s leading institutions in the banking, securities, capital, • and asset management markets 43% 84.2% 99.9% 100% Business areas -Infrastructure & Special Assets Fund Management Korea’s first and largest asset management company specializing in infrastructure funds & alternative investments Established: Oct. 2003 No. of Offices : 1 Asset Size : KRW 18.1bn Business areas -Lease -Venture Capital -Factoring Most favored venture capital offering diverse public venture funds and incubation services Established: Dec. 1972 No. of Offices : 4 Asset Size : KRW 2.8trn • Business areas • Retail • Investment Banking • Wealth Management • -Trading • Uncontested position in the domestic capital market • Highest M/S in brokerage and primary market • Established: Sep. 1970 • No. of Offices : 131 • Asset Size : KRW 21trn • Business areas • Asset Management • (equity/bond/hybrid funds) • -Trust Management • -Investment Advisory • Comprehensive asset management • Top 10 in AUM • Established: Jul. 1996 • No. of Offices : 1 • Asset Size : KRW 80.5bn 100% Owned by the government through KDB FG • Business areas • Corporate Banking • Investment Banking • Corporate Restructuring • Consulting & Research • Retail Banking • Established leader in domestic corporate banking with global competitiveness in investment banking • No. of Employees : 2,465 • No. of Offices : 73 (Including overseas) • Asset Size : KRW 149trn (End of 2011) (End of 2011, Consolidated Basis) 5 +99871 120 80 00 www.kdb.uz
KDB Profile • 100% Government owned (Includes indirect ownership) • Government responsible for maintaining KDB’s solvency under the KDB Act • Strong intention of Government to nurture KDB into a Global Financial Services Institution Quasi Sovereign Status • Pioneered development of Korea’s financial industry • Accumulated financial know-how in Corporate & Investment Banking • Window for foreign currency funding Expertise & Know-how Solid Capital • BIS Ratio : 15.48% • Tier 1 : 14.58% Asset Size & Composition (Unit: KRW bil.) Credit Rating (27%) (60%) 6 +99871 120 80 00 www.kdb.uz
Global Presence Europe Beijing Ireland London Shenyang Frankfurt Seoul (HQ) North America New York Tokyo Hungary Asia Shanghai Guangzhou Hong Kong Africa Singapore South America Tashkent South Pacific Branch Sao Paulo Subsidiary Representative office Headquarters Domestic: 60 branches Overseas: 7 branches (New York, London, Tokyo, Singapore, Shanghai, Guangzhou, Beijing) 5 subsidiaries (Hong Kong, Hungary, Brazil, Ireland, Uzbekistan)2 representative offices (Frankfurt, Shenyang) 7 +99871 120 80 00 www.kdb.uz
Vision & Strategy Vision 20-20-20 Globally Competitive CIB Phase 2: Global Top 20 Financial Group Phase 1: Asia Top 20 Financial Group Core Business Corporate Banking Investment Banking Asset Management > Enhance Financial Structure > Increase Profitability and Competence in Core Business Areas > Expand Deposit Base Raise Competitiveness 28 +99871 120 80 00 www.kdb.uz
32, Oybek Street, Mirabad District, 100015 Tashkent, Uzbekistan SWIFT: UZDAUZ22 UzKDB Bank
Why KDB invests in Uzbekistan financial market (Purchase of UzDaewoo Bank and RBS Uzbekistan) • Political and economic stability in the country; • Attractive business environment; • Enhanced legislative and regulatory system created by the government agencies, including CBU; • Expansion of business in Central Asia as a new financial market; • Strong will to participate in the great changes in Uzbekistan by contributing to the development of its financial market and economy as a whole. +99871 120 80 00 www.kdb.uz
wide range of strong customers stretching from entrepreneurs to business elite creating value-added business opportunities & new banking services reputation of stable & reliable Financial institution Mission UzKDB Bank …always moving forward… a full range high quality banking services +99871 120 80 00 www.kdb.uz
From Foundation to Present (i) 2006 – up to present 1997-2006 2006 UzKDB Bank is the successor UzDaewoo Bank, which was founded in 1997 as part of the international expansion of Daewoo Group and its financial department Daewoo Securities. UzDaewoo Bank was recreated on May 5, 2006 as UzKDB Bank (Uzbekistan-Korea Development Bank) and starting from this day the Bank is engaged in its activity on the basis of License # 5 issued by the Central Bank of the Republic of Uzbekistan. During this period Board of the Bank worked on enlargement of Bank’s activity and reinforcement of financial statements. The total capital is increased by 24.7 % during 2011 and amounted in USD 34.0 million at the end of FY 2011. +99871 120 80 00 www.kdb.uz
From Foundation to Present (ii) UzKDB Bank (latest data) Ownership structure: Shareholders: Assets: Total Equity: Branches: Mini-banks: Audit company: Closed Joint Stock Company • Korea Development Bank (61.11 %) • EBRD (27.78 %) • NBU (5.56 %) • JSC Turon Bank (5.56 %) • 418.0 mln. in USD equivalent • 34.0 mln. in USD equivalent • 1 • 2 • Ernst & Young, Tashkent +99871 120 80 00 www.kdb.uz
Conversion and Remittance Services International payments and Visa services UzKDB Bank Services Local Transactions Services Export & Import Operations Local Plastic Cards Services Loan operations Treasury Services Business overview UzKDB Bank offers comprehensive financial services across diverse areas based on qualified experience. Our Bank's business profile is primarily oriented to corporate clients and banking servicesto corporate clients who provide the main part of assets and profits of the bank. +99871 120 80 00 www.kdb.uz
Business overview: Correspondent relations Our Bank established strong and reliable relationships with highly reputable commercial banks in Europe, Asia, USA, CIS countries and successfully conducts correspondent relations in different currencies. Our main correspondent banks are: • JP Morgan Chase (USA) • CommerzbankAG (Germany) • KEB Seoul (Republic of Korea) • VTB Bank (Russian Federation) • NBU (Uzbekistan) etc. Based on our extensive financial know-how and using the global network of KDB Seoul we are continuing our international expansion and cooperation in order to give a solid support to our customers in their international operations. +99871 120 80 00 www.kdb.uz
Business overview: Comparative advantage UzKDB Bank is a safe bank, because of: • Conservative Credit Policy; • Well established Assets and Liabilities management; • The limits for interbank placements are set by KDB Headquarters based in Seoul; • Unlike other local banks in Uzbekistan, UzKDB Bank has an access for analysis of financial institutions carried out by KDB, and has competitive knowledge about the situation in international markets; • FX position of the bank is positive and stable; • UzKDB Bank makes interbank placements only with first class international banks with highest investment ratings and carries out periodical analysis of counterparty banks. +99871 120 80 00 www.kdb.uz
Main financial indicators +99871 120 80 00 www.kdb.uz
RBS Uzbekistan History of RBS Uzbekistan Bank’s Profile Financial performance 77, Nasirova street, Yunus Abad District, 100084 Tashkent, Uzbekistan SWIFT: KODBUZ22 8 +99871 120 80 00 www.kdb.uz
History of RBS Uzbekistan • 1996 - Founded as ABN AMRO Bank NB Uzbekistan A.O. • 2008 - Renamed to RBS NB Uzbekistan CJSC subsequent to the global acquisition by The Royal Bank of Scotland Group • 2009 - RBS Uzbekistan – Award “Best Bank in Uzbekistan” by Euromoney magazine • 2010 - RBS Group agrees to sell RBS Uzbekistan to Korea Development Bank • 2011 - KDB acquired majority stake in RBS Uzbekistan and the Bank (Nov) became part of KDB Financial Group • The name “RBS NB Uzbekistan CJSC” is used under Transitional Trade Mark License Agreement signed with RBS Group +99871 120 80 00 www.kdb.uz
Shareholders are: KDB – 82.35% and NBU – 17.65%. RBS Uzbekistan has advanced Relationship Management service compared to other banks The Bank implements enhanced Know Your Client Policy and advanced operating system leading to efficient risk management Corporate customer segmentation Subsidiaries/joint venture companies of multinational companies and large local enterprises Small businesses, representation offices of international companies and diplomatic missions Corporate staff and card accounts Sector of economy Integrated energy Automotive Telecommunication Textile and etc Bank’s profile
Product offering Transaction Banking - current accounts, trade finance, physical cash, bank transfers, international clearing, collection services Treasury - currency exchange, money market instruments, trading, plain vanilla derivatives Credit Structuring - overdrafts and loan facilities Principal Member of MasterCard International Payment System, fully authorized for issuance and acquiring of MC cards. Licensed by Visa International as an Affiliate Member Bank’s profile (continued)
Total assets remained almost the same while the bank tightly controlled its cost base In 2011, the Bank increased the capital base by injecting the retained earnings (UZS 12 bln) of the previous years into share capital Financial Performance Volume of Assets and Equity (UZS mln)
Vision & Strategy Vision Strategy +99871 120 80 00 www.kdb.uz
Vision • By acquiring previously UzDaewoo bank and later RBS Uzbekistan, KDB wants to expand its business activities in Uzbekistan and to contribute more to economic prosperity by sharing and combining KDB’s accumulated banking service know-how, advanced financial knowledge as well as the expertise as a leading Asian bank • In late 2012, KDB will integrate RBS NB Uzbekistan with UzKDB Bank as soon as all required actions would be taken to enhance the management efficiency and empower the synergy of resources belonging to both banks • In the long term, KDB wants to grow its presence in Central Asia +99871 120 80 00 www.kdb.uz
Vision (continued) • New Bank (after merging UzKDB and RBS Uzbekistan) will continue to serve clients with current valuable employees at the same service level by maintaining best internationally banking practices • The bank will continually and progressively contribute to the economic growth of Uzbekistan by: • contributing to Uzbekistan’s financial market development through performance of advanced universal banking services • provision of consulting and financial services for social sphere and natural resources development • engagement in other banking business activities +99871 120 80 00 www.kdb.uz
Strategy • Main focus will continue to be on existing and new clients • Pro-actively cross-selling products • Increasing the loan portfolio prudently by providing credit facilities to clients with sufficient cross selling products • Developing strong leadership positions in trade business (import finance, discounted L/Cs, LGs) and commodity finance & trading • Delivering comprehensive regional and domestic cash management solutions, payment & collection services for clients • Continue delivering comprehensive cash/salary arrangement solutions • Proceeding with initiatives on attracting physical cash in local currency • Launching FX swap, FX options and other “plain vanilla” derivatives instruments with a proposal of managing and hedging foreign currency and commodity risks for customers • Expand cooperation with local financial institutions on money and foreign exchange markets +99871 120 80 00 www.kdb.uz
We hope your prosperity with investment in Uzbekistan THANK YOU! +99871 120 80 00 www.kdb.uz