B&N Bank is quite a large Moscow-based bank led by entrepreneur Mikail Shishkhanov*, its beneficial owner. The lenders core areas of business are corporate lending and retail deposits. The bank is fairly aggressive on the FX market as well.
B&N Bank was incorporated at the end of 1993 by Mikhail Gutseriev as an operator of the special economic zone (a domestic offshore area), Ingushetia. From 2000 through 2002 the lender handled financial flows of state-controlled oil producer Slavneft and later began to deal with financial flows of private oil company Russneft, which was founded by the former Slavneft president and now renowned entrepreneur Gutseriev.
Once the informal group B&N united three areas of business: oil production and oil refining (Russneft), real estate development (PFK B&N, etc.) and finance (B&N Bank and First Insurance Company). The groups owners Mikhail Gutseriev, his brother Sait Gutseriev and nephew Mikail Shishkhanov* (B&N Bank management board chairman and president) are in the ranking of the Russian richest.
In February 2008 the media announced the sale of B&N Bank to Vadim Moshkovich, a Federation Council member representing the Belgorod region, a co-owner of Rusagro, development firms Avgur Estate and Mashtab and land plots in the suburbs of Moscow (at that time business magazine Finance assessed his assets at $2.5 bln). In addition, banking rumor had it that Vadim Moshkovich acquired B&N Bank on behalf of third parties. However, the deal never got off the ground. Shishkhanov himself explained his refusal to strike a deal by the fact the timeframe for closing the purchase/sale agreement was substantially dragged out and the transaction price, which had been earlier agreed upon by the parties, no longer suited him. Moreover, in October 2008 Shishkhanov again took helm at the bank, regaining the position of the president in a bid to personally manage business at the time of turbulence on financial markets. Until recently (as of late May 2014) Mikail Shishkhanov held 97.96% of the banks shares. However, news broke on June 2, 2014 that as a result of an additional share issue (carried out via closed subscription in favor of Mikhail Gutserievs Hunberg Finance Limited) Shishkhanovs holding was reduced to 77.7% and that of Mikhail Gutseriev equaled 20.6% of the bank. The additional share issue increased the banks charter capital by Rub 1.9 bln to Rub 9.3 bln, while equity jumped Rub 4 bln to around Rub 28 bln.
The lending institution is headquartered in Moscow. B&N Banks network consists of 184 offices, a representative office (London) and 8 branches (in Saint Petersburg, Ulyanovsk, Rostov-on-Don, Stavropol, Ekaterinburg, Novosibirsk, Kazan and Ufa). The banks average headcount exceeds 4,000 people.
The lending institution serves over 22,000 businesses, and since 2004 the bank has been aggressive in rolling out retail operations, including mortgage, auto loans and plastic cards. Since 2007 it has engaged in investment business as an underwriter and co-underwriter for bonded loans of Russian issuers. At the service of around 300,000 cardholders of the bank are 80 terminals and over 550 ATMs. As part of rehabilitation efforts B&N Bank acquired 78% of Bashinvestbank in November 2008, and as early as December 2013 B&N Banks takeover of Bashinvestbank was wrapped up. Since December 28, 2013 Bashinvestbank has officially turned into B&N Banks Ufa branch. Also, since January 2011 B&N Bank and Finam Investment Holding have been founders of private pension fund Doverie. As part of the strategy geared towards retail business expansion two deals were transacted in April 2014. The acquisition of Moscomprivatbank, a former subsidiary of Ukraine-based PrivatBank, was closed on April 2, 2014. To transact this deal the State Depositary Insurance Agency (DIA) lent Rub 12 bln to B&N Bank. News broke a little later (April 25) that Mikail Shishkhanov-controlled Asokerco Trading Limited is to buy 100% of Murmansk-headquartered DNB Bank from the leading Norwegian financial group DNB. Terms of the transaction were not disclosed.
Since the beginning of 2013 the lending institutions assets have jumped 44%. As for liabilities, a sharp rise is seen in retail deposits (from Rub 79 bln to Rub 119 bln, or up 50%), funds held on demand accounts of financials, corporate deposits, bonds and promissory notes issues by the bank, and also in capital. On the asset side, newly drawn funds were invested in the credit and government securities portfolios.
As regards the breakdown of liabilities, 50% fall to retail deposits, the money held by enterprises and institutions accounts for 31% of net assets, 5% fall to bonds and promissory notes issued by the bank, 3% to inter-bank loans (some of them were raised from the Bank of Russia) and the banks equity (capital and provisions) accounts for 9%. Monthly turnover on clients accounts ranges from Rub 150 bln to Rub 250 bln.
Also, 60% of the assets falls to the credit portfolio, with corporate loans dominating (82%), while retail loans account for 18% of aggregate loans. NPLs are reported at around 3.4% under RAS. Two thirds of the portfolio fall to long-term loans (12M+). The securities portfolio equals 9%, consisting of corporate bonds and stocks of domestic companies, while government securities account for 3.5% of net assets, and 4% falls to highly liquid assets (cash and funds held on CBRs correspondent account).
Holding unequal positions on the inter-bank lending market, B&N Bank both lends and borrows in modest amounts. The bank is quite aggressive in conversion operations.
The lending institution reported net profit of Rub 2.2 bln under RAS in 2013 (the banks FY12 net profit totaled Rub 1.3 bln) and the bank earned Rub 238.6 mln in January — March 2014.
The Board of Directors: Sergei Maryin (chairman), Mikail Shishkhanov, Angelica Anshakova, Galina Danilova, Margarita Konovalova, Kirill Lyubentsov, Stanislav Taslitsky and Alexander Filatov.
The Management Board: Mikail Shishkhanov (chairman), Alexander Lukin, Pyotr Morsin, Alexei Kitaev, Irina Komarova, Kirill Petrov, Sergei Kachura, Konstantin Kalagin and Alexei Farafontov.
* Mikail Osmanovich Shishkhanov was born on August 6, 1972. In 1993 he received a bachelors degree at the Peoples Friendship University of Russia majoring in economics and management of national economy and completed a postgraduate course at the university in 1995 and the Financial Academy attached to the Russian government majoring in finance and credit in 2000. He holds a doctoral degree in economics and a PhD in law. In 1992—1993 he served as a deputy general director and commercial director at limited liability partnership B&N. He ran B&N Industrial and Financial Group in 1993—1994. After working for 12 months there, he moved to B&N Bank to act as head of the department for inter-bank relations and regional representative offices, later was appointed vice president at B&N Bank. Inteco CJSC appeared on the list of Shishkhanovs assets in December 2011. Shishkhanov gained 95% of the company, with 5% grabbed by Sberbank Investments. In addition, 100% of Inteco CJSC, and also Patriot CJSC and all her production units and design entities were sold as part of the deal to sell Elena Baturinas assets.
According to business magazine Forbes, Mikail Shishkhanov is net worth $700 mln (2014). Hide