The financial institution was established as Kvota-bank in Moscow in 1992, and its founders were 15 businesses and nine individuals. In 2000, the bank changed hands, later boosted capital after RK-audit became its shareholder in 2001. Apart from RK-Audit (19.355%, the beneficial owner is Evgenia Klimenko), stakes in the bank (16.129% each) were got by German Klimenko, Konstantin Savoysky, Victor Yatsuk, Antonina Zaeva, and Larisa Airapetian. In 2002, the lending institution was transformed from a limited liability company into a closed joint stock company. In January 2014, the lender was renamed from Kvota-Bank CJSC to Ivy Bank CJSC. In 2015, the bank’s corporate status was changed to a joint stock company.
According to disclosed information, presently a 23.37% interest in the bank is held by Moscow Machine Engineering Plant Znamya* (its beneficial owners are state-run corporation Rostec, Larisa Sizova, Roman Trotsenko and Yulia Nikishova), a 19.99% stake is in the hands of the bank’s board chairman Alexander Plyushchenko (former Project Finance Bank management board chairman), 10% equity positions are held by former Project Finance Bank board members Gennady Labutin and Oleg Volnov (deputy general director of First Channel OJSC for socio-political broadcasting, member of the Academy of Russian Television, laureate of the State Prize for contributions in Literature and Arts), Trans-Meridian’s general director Dmitry Tarabasov controls 10%, the bank’s management board chairwoman Sofie Shalneva holds 9.83%, and the bank’s former beneficial owner, Liveinternet director and owner German Klimenko controls 3.82% of the bank directly and 6.19% together with partners through ZDNews LLC (since 2016 he has been an Internet advisor to the Russian President). A 3.81% holding is owned by Shipyard of Brothers Nobel LLC (its beneficial owners are Larisa Sizova and Elena Kopylova), and Lyudmila Komarovskaya holds a 3% stake.
The bank’s network comprises the head office and an additional office in Moscow. Earlier (in April 2014) the bank shut down two additional offices, and another additional office was closed in December 2015. The bank’s ATMs are in operation solely at offices, but its clients may use ATMs that are operated by its partner banks (the Bank of Moscow and VTB 24) at discounted rates.
The bank’s major clients are Moscow Shipyard and Dockyard, Trans-Meridian ZDNews, Avia-Concept, Promagroinvest, Promtopresursy, mw River Shipping Ko, Domashniye dengi, Khlebnikovsky Machine Engineering & Shipyard, Egorievsk Poultry Factory, Orelrastmaslo, Aptechka Retail Network, Legal business center LLC, Goznak-leasing, Port Serpukhov, and Mytishchi Electrotechnical Plant.
The bank offers its corporate clients a standard set of products and services, namely deposit accounts, cash settlement services, safety deposit boxes, online banking, loans, and merchant acquiring. Households are offered deposit accounts, loans (including consumer, mortgage, auto loans, credit cards and loans within payroll projects), bank cards (Master Card), currency payments and money wires via Contact, online banking, and safety deposit boxes.
In January-November 2015, the lender’s net assets rose marginally (4%) to Rub 3.7 bln by December 1. On the liabilities side, a contraction was largely recorded in drawn inter-bank loans as the bank repaid 30% of its debt to the Bank of Russia. Moreover, corporate funds and equity also dropped a little. However, the aggregate decline in all these items of liabilities was greatly offset by an inflow of retail deposits, and also by the issue of the bank’s promissory notes. The lender’s assets underwent structural changes as the bank slashed inter-bank loans and highly liquid assets, forwarding related liquidity to loans and bond purchases.
In January-November 2015, retail deposits jumped 14.5%, as a result of which (given also a drop in other liabilities) the portion of deposits in liabilities rose from 63% to 70%. The financial institution heavily hinges on household funds, with 12- to 36-month deposits prevailing.
As for other sources of liabilities, the biggest item is the money of corporate clients (11.8% of liabilities). Corporate funds comprise balances held on settlement accounts and subordinated loans. Equity (excluding subordinated loans) accounts for slightly less than 6% of liabilities. In 2015, the bank bumped up its promissory notes (up Rub 79.1 mln vs. Rub 8.4 mln as of start 2015), but their portion in total liabilities remains low (2.4%). Turnover on clients’ accounts is not high, but quite stable (Rub 2—3 bln per month, on average).
As for net assets, more than half (51%) falls to the credit portfolio, and securities account for a noticeable proportion (27%). Also, highly liquid assets (cash in hand and funds held on nostro accounts) account for slightly more than 9% of net assets. Also, roughly 12.5% of net assets are equally divided between other assets and fixed assets.
The credit portfolio mainly consists of loans granted to businesses and organizations (77%). However, in 2015 the aggregate portfolio expanded (7.1%), first and foremost, on the back of retail loans (up 25.8%, or Rub 87.4 mln), while corporate loans rose modestly (2.7%, or Rub 38.6 mln). NPLs are steadily maintained at a low level (1.1% as of December 1, 2015). The provisions ratio for the entire portfolio is low, but it is several times higher than the one of overdue loans, equal to 3.2% as of December 1, 2015. Loans, on average, are collateralized by more than 100% (100.7% as of December 1).
In 2015, the bank invested quite heavily in securities, buying mainly bonds. Overall, in January-November 2015 the bank’s securities portfolio expanded nearly 18.8%, while the bond portfolio increased by nearly a third. At present, roughly a third of the bond portfolio is under collateral under repurchase transactions, and in the past few months it has accounted for 30—50% and higher, i.e. the bank’s securities portfolio may be considered quite liquid. Turnover on securities assigned under repurchase transactions is also fairly high and match liquidity borrowed from the Bank of Russia.
The bank’s turnover to offer liquidity in the inter-bank lending market is minimum, and the bank has been quite passive in the currency market in recent months.
The bank posted a loss of Rub 19.6 mln in January-November 2015. In 2014, the financial institution earned net profit of Rub 26.6 mln. Net costs related to provisions and payroll expenses put primary pressure on the bank’s financial performance in 2015.
The Board of Directors: Alexander Plyushchenko (chairman), Oleg Labutin, Oleg Volnov, German Klimenko, Dmitry Tarabasov, Alexei Ozerov, and Sofia Shalneva.
The Management Board: Sofia Shalneva (chairwoman), Ilya Aseev, and Venera Donskaya.
* The plant was established in May of 1942, and presently the company is one of the leading producers of over 50 types of units for aircraft and ground machinery. The plant’s products are used for civil and fight planes and helicopters, and also for specialized ground (including military) and construction machinery. Znamya-made steering gears are installed at Russian new-generation aircraft (passenger planes TU-204s, TU-214s, TU-334s, and IL-114s). All products manufactured at the plant are unique and have no peers worldwide.
Znamya JSC is an active participant of government special-purpose programs for the industry’s development, cooperation programs aimed at manufacturing new products together with domestic and foreign companies, programs of import substitution and repair of units of foreign producers.
The plant’s partners are such big companies and enterprises as Aeroflot OJSC, Siberia Airlines, Russian Aircraft Company MiG, air carrier Volga-Dnepr, Kurganmashzavod OJSC, Uralvagonzavod OJSC, Kazan Helicopter Plant OJSC, NPO Saturn OJSC, air carrier UTair, Perm Engine Plant OJSC, UMPO OJSC, Kaluga Engine OJSC, Federal State Unitary Air Carrier Pulkovo, Kazan Aircraft Kazan Association, Mil Moscow Helicopter Plant OJSC, Kuban Airlines OJSC, etc.
Also, 48.07% of the plant’s shares is controlled by state-run corporation Rostec, with the rest of shares divided among individuals.
Based on RAS data, at end 2014 Znamya’s assets stood at Rub 1.4 bln, revenue totaled Rub 900 mln, and net profit amounted to Rub 56.2 mln.
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