Long-Term Development Programme
Based on the Development Strategy for 2014–2016, the Development Strategy for 2017–2019 and in accordance with the requirements for companies outlined in the special list published by the Government of the Russian Federation (Decree No. 91-r of 23 January 2003), the Bank developed and approved an updated Long-Term Development Programme for 2014–2019 (Minutes No. 4 of the Supervisory Council of 9 April 2018; hereinafter the “Programme”).
The Programme contains a detailed list of measures to ensure that the Bank achieves the development goals specified by the Strategy (a more detailed description of the implementation of individual measures in 2018 is presented in the relevant sections of this Report).
The need to update the Programme in 2018 was due to:
- changes in the macroeconomic conditions related to the forecast used for development of the Programme;
- approval of the Bank’s Development Strategy for 2017–2019 and, as a result, the need to reflect in the Programme VTB’s current strategic initiatives and plans for their implementation for 2017–2019, as well as the need to synchronise the timing of the Programme with VTB Group’s strategic cycle;
- the requirements of the directives of the Government of the Russian Federation regarding changes to the Programme (in terms of increasing labour productivity; the need for human resources, including in engineering and technical specialisations; replacing foreign-made products with products of Russian origin; reducing operating expenses (costs); improving corporate governance; the inclusion of a key performance indicator based on dynamics in SME lending).
In accordance with the instructions of the Government of the Russian Federation (Directive No. 4955p-P13 of 17 July 2014), the Programme’s implementation is subject to an annual audit.
The audit of the Programme’s implementation is governed by the Bank-approved Standards for Conducting an Audit of the Implementation of the Long-Term Development Programme, which contains information about the procedures of the planned audit, the procedures for the tender to select an auditor, conducting the audit, the time frame for completing audit-related work and on decision-making based on the results of the audit, as well as on the corresponding Terms of Reference for conducting the audit.
The audit of the implementation of the Programme for 2018 was carried out by Ernst & Young LLC, and an audit report was prepared based on the audit results. The Supervisory Council reviewed the report on the fulfilment of the Programme for 2018 and the results of the audit. On the basis of these procedures, the auditor concluded that the information in the report fairly represents:
- the actual values of the Bank’s performance indicators specified by the Programme for the year ending on 31 December 2018, and the extent of the attainment of the target values;
- information about the reasons for failing to implement measures included in the Programme, and deviations in the actual values of the Bank’s performance indicators against those envisaged in the Programme for the year ending on 31 December 2018.