The bank was founded as AllianceInvest in 2000. The bank was initially established as a settlement center for regional trade and industrial concerns. The bank was renamed Kaznachey in 2002. In late 2003 the lending institution was acquired from Magnezit Group by companies that make up investment group Renaissance Capital and was named accordingly (Renaissance Capital Commercial Bank). The new owner shifted the banks business focus to the consumer lending market in which the financial institution started operating under the Renaissance Credit brand. The lending institution has been a member of the national deposit insurance system since December 2004. In December 2010, the bank divested its Ukrainian subsidiary to SKM Group that is owned by businessman Rinat Akhmetov. Funds from the deal were spent to roll out retail business in Russia. In 2012, Mikhail Prokhorovs Onexim Group began to gradually buy Renaissance Groups equity stakes in Renaissance Capital Investments Limited, Renaissance Capital Limited and Renaissance Capital International Services Limited, through which retail lender Renaissance Credit was controlled.
In early April 2013, the bank announced the purchase by Onexim Holdings Limited of a second half (50% + half a share) in Renaissance Capital Investments Limited that owned 83.02% in the retail bank. Thus, Onexim Group turned into a majority owner of the retail bank, commanding 83.02%. Also, a 6.5% interest in the bank was bought by Evgeny Yurchenko, former CEO of telecom group Svyazinvest. At that time Onexim Group announced the closing of a deal, as a result of which it became an indirect holder of a 100% stake in Renaissance Financial Holdings Limited, an investment bank that operates in international markets under the Renaissance Capital brand.
In March 2013, the retail banks sole participant decided to change its official corporate name in accordance with its brand to Renaissance Credit Commercial Bank LLC.
At present, Renaissance Credits beneficial owner is Mikhail Prokhorov who controls 86% of the bank through Renaissance Investments Limited and Onexim Holdings Limited, another 7.50% interest is in the hands of Belize-registered Bashton Company Limited and Evgeny Yurchenkos 6.5%.
As of July 1, 2016 the bank ran three representative offices, 24 additional offices and 164 regional credit & cash offices in 68 constituent entities of Russia. Moreover, the bank operates 63,700 points of sale at department stores all across Russia. The banks ATM network is narrow, mainly spanning Moscow and Saint Petersburg. As of June 30, 2016 the banks headcount averaged 6,601.
The bank specializes in uncollateralized consumer lending. At present, the lending institutions lineup includes special-purpose loans to buy goods at retail chains, cash loans for any purposes and credit cards. The financial institution cooperates with both major federal retail chains and mid-sized regional companies and retail chains that specialize in selling consumer electronics, furniture, other goods and services. The banks key partners are Svyaznoy, Evroset, M. Video, Media Markt, Eldorado, Beeline and Ascona. The bank also deals with online shops whose clients can buy goods by taking out loans online. Such partners include Citilink, Holodilnik.ru, Wikimart, Hoff.ru, Stolplit, etc. In addition, the banks lineup of credit products includes low-rate cash loans for pensioners, vacation loans, etc. The lending institution also issues MasterCard debit cards for households, offers a range of deposit accounts, family insurance and accidence insurance programs, cash settlement and online banking services, etc.
Since the beginning of 2016 the banks net assets have decreased by a quarter to Rub 100.2 bln as of September 1, 2016. All key items of the banks liabilities decreased during the first eight months of 2016 (funds of businesses and institutions (-58.8%), retail deposits (-20.8%), and equity (-22.8%)). Furthermore, the bank repaid all inter-bank loans which, however, constituted a small proportion in liabilities. On the assets side, a contraction in both absolute and relative terms was mainly recorded in high-liquidity balances (down 81% or Rub 25.3 bln). The portfolio of inter-bank loans shrank drastically (-48.8%), and so did corporate loans (-41.7%). At the same time, the core of assets — the retail credit portfolio (over 80% of net assets) — improved, albeit marginally (up 1.2%).
The banks liabilities are poorly diversified and are marked by pronounced dependence on household funds (61% of liabilities fell to retail deposits as of September 1, 2016). Most household funds were raised for six months to three years. Funds of businesses and institutions accounted for 8.1% of the banks liabilities as of October 1, 2016 and primarily comprise subordinated loans taken out from its shareholders. The banks clientele is active thanks to household accounts, with stable turnover of Rub 20—30 bln. The banks capital adequacy ratio is maintained with a small margin (as of September 1, 2016 № 1.0 (the total capital adequacy ratio) fell below 10% (the minimal threshold is 8%) as of September 1, 2016, while the core capital adequacy ratio stood at 6.68% vs. the 6% minimum requirement.
A considerable portion of assets (over 80% as of the balance sheet date) falls to the retail credit portfolio. Also, high-liquidity assets (cash and balances held on correspondent accounts at non-resident banks) account for 6% of net assets, nearly 3% falls to the corporate credit portfolio, and slightly less than 8% to other assets and fixed assets.
Since the beginning of 2016 the banks total credit portfolio has contracted 1.3% due to a decline in corporate lending (overall, corporate loans account for no more than 3.5% of the total credit portfolio). Retail loans have jumped 1.2%, while overdue debt has declined by nearly 20%. This could be driven by the sale of bad debt. During the period under review the aggregate share of overdue debt in the banks total credit portfolio decreased, but is still quite high (14.7% of the portfolio). Provisions are fairly conservative and adequate to the share of overdue debt, equaling 22.5%. The credit portfolio mainly consists of mid- and long-term loans.
Over the past few months the bank has been quite aggressive in the inter-bank lending market, being a borrower. The banks borrowings have ranged from Rub 40 bln to Rub 150 bln in the past few months. The bank maintains high turnover on currency operations.
The banks losses slightly exceeded Rub 1 bln in January-August 2016, or nearly 6.5x less than in the same period a year ago. The banks FY15 net loss totaled Rub 8.7 bln.
The Board of Directors: Dmitry Razumov (chairman), Dmitry Usanov, Alexander Zubkov, Evgeny Yurchenko, and Alexey Levchenko.
The Management Board: Alexey Levchenko (chairman), Tatiana Khondru, Sergey Korolev, and Larisa Maryina.
* Onexim Group is a major Russian private investment fund, and its investment portfolio comprises assets in M&M (UC Rusal), financials (apart from Renaissance Credit, insurer Soglasie, IFC Bank and investment company Renaissance Capital), real estate development (OPIN Group), media (Snob, RBC), power utilities (Quadra) and high-tech (Optogan). The group was set up in 2007 by Mikhail Prokhorov, one of the leading Russian businessmen). According to the Forbes rating, Mikhail Prokhorov ranked 14th among the richest Russian businessmen in 2016, holding main assets (UC Rusal and a 20% stake in UralKaliy). Onexim Group divested a 20% interest in UralKaliy in July 2016. Hide