Established in 1993 as Alina-Moskva, the bank was a small financial institution until 1999. At that time the bank was bought by Ingosstrakh, one of the leading insurance companies in Russia, and renamed Ingosstrakh-Soyuz. In 2001 investment group Basic Element, owned by Russian billionaire Oleg Deripaska, gained control over Ingosstrakh and its subsidiaries, becoming the banks majority shareholder.
At a later time Basic Element decided to unite its modest banking assets on the basis of Ingosstrakh-Soyuz. At the end of 2003 Ingosstrakh-Soyuz successfully merged with three banks controlled by Basic Element (Avtogazbank (Nizhny Novgorod), Sibregionbank (Irkutsk) and Narodny Savings Bank (Moscow)). The new merged bank was named Bank Soyuz.
In September 2008 the lending institutions financial standing was substantially impaired by the crisis on the repurchase market where Bank Soyuz was an aggressive player, and also due to heavy investments in development projects. In September-October households withdrew nearly half of all the banks deposits (deposits declined from Rub 11 bln to Rub 6.1 bln). In September 2008 businesses took back Rub 6.1 bln and in October corporate clients settlement accounts slid 46% from Rub 16.9 bln to Rub 9.2 bln, and deposits dropped 11% to Rub 29.8 bln. As a result, in late December 2008 an agreement on Bank Soyuzs rehabilitation was signed between the Deposit Insurance Agency (DIA), Bank Soyuz, holding Finansresurs (the banks major shareholder, 81% of which was directly owned by Oleg Deripaska) and Gazfinance (a 100% subsidiary of Gazpromregiongaz, part of Gazprom Group). However, 49.99% of the lenders shares returned to the previous owner, Ingosstrakh, in March 2010. And DIA retained a 50% + 1 share interest. It should be noted that a year earlier the seat of the lending institutions management board chairman was occupied by former Greenfieldbank executive Andrei Khandruev, the son of well-known banker and scientist Alexander Khandruev.
In November 2012 Ingosstrakh bought out a 50% + 1 stake from DIA at an auction for Rub 2.8 bln, thereby raising its equity position in Bank Soyuz to 99.99%. The seat of the lending institutions management board chairman went to Sergei Tishchenko who held executive positions at financial institutions, banks and insurers, including at Sovek OJSC, Mosbusinessbank, Moseximbank, Russian National Commercial Bank, Leasingbusinessprom, Moscow Insurance Company, Standard Reserv, holding Moscow Insurance Group and Ingosstrakh Life from October 1998 through October 31, 2012.
It should be noted that Ingosstrakh shareholders are involved in a corporate conflict. Oleg Deripaska (directly and through subsidiaries) owns around 58% of the bank, with roughly 38.5% held by a partnership set up by Petr Kellners PPF Group and Italian financial group Generali Group.
Bank Soyuzs network is comprised of 7 branches, 31 additional offices and 3 operating cash desks. The bank also operates over 200 own ATMs. The lenders headcount is estimated at 1,300 people. The lending institutions priority areas of business are retail, corporate and investment banking business, and operations with wealthy individuals. Businesses are provided with a wide range of banking services, including corporate finance, remote operations, bank guarantees, brokerage services, and also leasing and factoring solutions. Among its largest customers the bank specifies such companies as Hyundai Com Trans Rus, Luding LLC, Korea Motor LLC, RusAl Group, Agency Rospetchat OJSC, Agricultural Association Kuban OJSC, Aviacor — Aircraft Plant OJSC, Ingosstrakh, Russkiye Mashiny OJSC, Irkutskenergo OJSC, Krasnoyarsk HPP OJSC and Sochi International Airport OJSC. Households are offered various credit products, including mortgage and education loans, and also deposits, wire transfers, MasterCard and Visa cards, online banking, safety deposit boxes, etc. The lender is a close partner of insurance group Ingosstrakh, which traditionally deposits substantial funds (insurance reserves) at the bank.
The banks assets rose 3% in 2012. As for liabilities, term liabilities, including corporate and non-resident deposits, are leaving the bank, while investment in securities and high-liquidity assets contracted in the banks assets.
Also, 15% of the banks liabilities fall to balances held on corporate accounts, 16% to the banks capital and reserves, 25% are deposit accounts of non-profit organizations (the money received from DIA to rehabilitate the bank), 22% fall to retail deposits, 11% is the money borrowed from banks (nearly all the money was borrowed from the Bank of Russia against collateral of securities). The banks clientele makes quite a lot of payments, but the bulk of turnover on clients accounts falls to settlements with brokerages. The lender is too aggressive on exchanges (securities transactions on the stock market).
As for the banks assets, the credit portfolio dominates (60% of net assets), but it has not increased considerably since early 2012. Also, 45% of the credit portfolio fall to corporate loans, 25% to retail loans, 14% to funds lent against the assignment of monetary claims, including purchased credit portfolios of other banks and factoring services. Since the banks rehabilitation, loan losses have been traditionally high (around 9% at the moment). Presumably, the bulk of the portfolio falls to credits granted to builders, which are the pre-rehabilitation inheritance. More than half of all loans was issued for over 12 months.
The securities portfolio accounts for 24% of net assets (traditionally the significant portion of the banks business). 70% of the securities portfolio fall to repurchase instruments (assigned against funds from the Bank of Russia) and a third of the portfolio is corporate bonds. The lender also has a portfolio of government securities (2% of net assets).
The lender is a net borrower on the inter-bank lending market. The core of the lenders liabilities is balances held on deposit accounts of corporate clients (35% of liabilities), with around a half of these funds falling to institutions that are on federal books. Money held on accounts and deposit accounts of households accounts for 22% of liabilities.
The bank is very aggressive on the inter-bank lending market where it constantly borrows extra liquidity. The bulk of funds borrowed from banks falls to the money drawn from the Bank of Russia (against collateral of securities). In 2012 the bank earned net profit of Rub 136 mln in line with its RAS financial statement (the lenders net profit totaled Rub 1.8 bln in 2011), and the banks profit totaled Rub 150 mln as of May 1, 2013.
The Supervisory Board: Marina Chekurova (chairwoman), Sergei Tishchenko, Tatiana Kaigorodova, Alexander Ilyashenko, Firuza Eshonova, Mikhail Volkov and Valery Khokhlov.
The Management Board:
Sergei Tishchenko (chairman), Alexander Produvnov, Yury Mozgunov, Dmitry Ishchenko and Sergei Vorovatov Hide