The bank was registered in Moscow in September 1994. The bank joined the national deposit insurance system in August 2005. The bank changed its corporate status from a closed joint stock company to a public joint stock company.
At present, the banks beneficial owners are Nobel Oil* founder and co-owner Grigory Gurevich (58.33%), and also the oil companys minority shareholders, including Grigory Gurevichs spouse Vera Artyakova (31.12%) and their daughter Maria Nazarova (0.23%). The lending institutions beneficial owners also include Igor Gorlushkin (4.40%), Alegri LLC (3.45%), Infotekh LLC (1.30%), and Ion LLC (1.16%).
The bank is headquartered in Moscow, its sales network is comprised of two additional offices (Moscow and Reutov), an operating office in Vladimir, and also 11 credit & cash offices (three of them operate in Crimea, two in Sevastopol, and other offices in Vologda, Leningrad, Rostov, Saratov regions, and also in the Republic of Komi and the Stavropol region). The banks ATM network consists of six machines that are in use at the banks branches. As of January 1, 2016 the banks average headcount equaled 244.
Among main customers, apart from households, the bank names oil producers, food makers, retailers, agribusinesses, manufacturers and textile concerns, drug makers and medical equipment producers, publishers and printing houses, and entities from other industries. Businesses are offered a variety of main banking services, including cash settlement services, bank guarantees, deposit products, online banking, payroll projects and corporate bank cards (MasterCard, Visa), merchant acquiring solutions, safe deposit box lease, currency operations, loans (including those granted to small and mid-sized enterprises using resources from SME Bank), and also leasing and factoring operations. Households have access to a wide range of deposit accounts, cash settlement services, loans (consumer and mortgage), safe deposit box lease, wire transfers (Western Union, Contact, Golden Crown, and UNIStream), bank cards (Visa, MasterCard), online banking and brokerage services. As its customers the bank names Eleron Production Association LLC, Yuza LLC, Laguna LLC, Petrusco LLC, MV — Nedvizhimost LLC, Plastaviya LLC, Russian Lead Group, Service-Integrator LLC, Appolo Trading House LLC, etc.
Since the beginning of 2016 the lending institutions assets have dropped by Rub 1.5 bln to Rub 17.7 bln as of September 1, 2016. A main contraction in the lending institutions liabilities was recorded in the funds borrowed from banks (down Rub 1.2 bln), and also the bank saw an outflow of funds from corporate accounts and deposits (a decrease of Rub 95.4 mln), a drop in own funds (down Rub 91.4 mln) and promissory notes issued by the bank (off Rub 58.4 mln). This contraction was partly offset by a rise in retail deposits (up Rub 739.1 mln). On the assets side, investment in the securities portfolio dropped sharply (down Rub 2.1 bln), and high-liquidity assets have also been falling (down Rub 486.4 mln). At the same time, the bank managed to expand its credit portfolio by Rub 697.6 mln, the portfolio of inter-bank loans (up Rub 608.1 mln) and other assets (a rise of Rub 221 mln).
The bank is characterized by the poorly diversified resource base. Specifically, 70.7% of liabilities falls to retail deposits (up 6.3% YTD to Rub 12.5 bln as of the balance sheet date). Also, 93.7% of retail deposits were drawn for 12 to 36 months, 14.2% of liabilities falls to balances held on accounts and deposit accounts (including subordinated loans) held by corporate customers, 12.9% to own funds (capital). The money borrowed in the inter-bank lending market forms 6.7% of liabilities (down 49.9% since the beginning of 2016). To a large extent, the bank raises funds from the Bank of Russia via repurchase transactions, and also from Russian banks for a term of up to 30 days. The banks own promissory notes account for 2% of liabilities. The lending institutions clientele is narrow, with a good flow of payments. Monthly turnover under customer accounts is Rub 6—14 bln (turnover has been falling, down 59.7%). The bank is seen as heavily dependent on household funds, and risk concentration is assessed as high. A major customer accounts for 4.6% of total customer funds (according to the IFRS financial statement as of December 31, 2015).
The share of equity capital is 12.9% (Rub 2.3 bln). Notably, 23.6% of the charter capital is formed by the banks own funds. Profit from previous years, data of which were confirmed by the auditor, is equal to 23.8%, and 44.3% falls to subordinated deposits (Rub 1.01 bln). Since the beginning of 2016 equity capital has decreased by 3.9%. For this reason, the banks capital adequacy ratio (№ 1.0) fell marginally from 12.4% to 12% as of the balance sheet date.
Around 62.3% of net assets falls to the credit portfolio, 16.6% to the securities portfolio, 8% to other assets (mainly claims under other operations), 5.7% to high-liquidity assets, 4% to fixed assets and intangibles, and 3.5% to granted inter-bank loans.
As of September 1, 2016 the banks credit portfolio was equal to Rub 11 bln, up marginally YTD (+6.7%) on the back of corporate lending (up Rub 1.2 bln). the core of the portfolio is corporate loans (94.2%). Retails loans are modest, and during the period under analysis declined by 42.7% to Rub 637 mln as of the balance sheet date. Overdue debt is not high (2.8%), and has been falling (5% at year-start). Provisions are low (4.9% of the portfolio). The credit portfolios collateralization is assessed as insufficient (82.4%). In line with the banks FY15 IFRS financial statement, as of December 21, 2015 the bank had 27 borrowers (18 borrowers in 2014) with a total amount granted to every borrower exceeding 10% of the banks equity capital. The total amount of these loans came to Rub 8.2 bln, or 73% of total credits and loans before provisions against impairment of credits and receivables (53% in 2014). As for the sectorial breakdown of the corporate credit portfolio, according to the FY15 IFRS financial statement, the following sectors mainly prevailed: wholesaling and retailing (31.7%), manufacturing (16.1%), real estate (12.2%), and financial institutions (5%).
The securities portfolio is equal to Rub 2.9 bln (down 41.8% YTD). Also, 43.2% of the portfolio falls to bonds collateralized under repurchase transactions, 23.7% to government bonds, 12% to banks bonds, 11.3% to securities of private companies, and 9.7% to corporate bonds. Notably, the securities portfolio contains overdue bonds worth Rub 42.6 mln, against which 100% provisions were put aside.
In the inter-bank lending market the financial institution is fairly aggressive, mainly drawing short liquidity (including from the Bank of Russia under repurchase transactions). The bank is also an active player in the currency conversion market. Turnover of conversion operations ranges from Rub 27 bln to Rub 37 bln.
The bank turned a profit of Rub 139.2 mln under RAS (Rub 161.2 mln in 2014). During the first eight months of 2016 the banks profit amounted to Rub 20.4 mln.
The Board of Directors: Grigory Gurevich (chairman), Oksana Borodina, Igor Fisenko, Ekaterina Pushkarevskaya, and Vladimir Danilov.
The Management Board: Vladimir Danilov (chairman), Olga Basalay, and Tatiana Ovchinnikova (chief accountant). Hide