The bank was founded as KAV-Bank in 1994. The banks first participants were three open joint stock companies (KAV, Kedr and Terminal, with stakes of 35% 35% and 30%, respectively). The bank was renamed Nezavisimy Stroitelny Bank (NS Bank, in brief) in 1997 when SU-155 and Glavmosstroy became its majority shareholders. The banks corporate status was changed to a joint stock company in June 2015, and now its full corporate name is NS Bank JSC. Mikhail Balakin, the owner of major construction group SU-155 who controlled over 34% of the banks shares, divested his holding in March 2013. The bank has been a member of the national deposit insurance system since February 2005.
At present, the banks beneficial owner — directly and through entities — is the banks president and board chairman Yury Petrov (58.38%). The lending institutions other beneficial owners are Inga Belogurova (16.41%), board member Gennady Ulanovsky (7.84%), Anna Samsonova (7.13%), board members Sergey Deryabin (4.15%) and Larisa Podgornaya (3.44%), and Lilia Danilova (2.64%).
The banks network is mainly centered on Moscow and the Moscow region (the head office and ten additional offices in Moscow, three offices in the Moscow region). In addition, the bank runs an additional office in Saint Petersburg and four branches (in Nizhny Novgorod, Ivanovo, Veliky Novgorod and Saint Petersburg). The banks cards can be processed at ATMs of partner banks (Promsvyazbank and Alfa Bank), and its own ATM network comprises 31 machines. As of January 1, 2016 the lending institutions headcount totaled 504.
Corporate customers are offered cash settlement services, loans and guarantees (to bid at auctions, to execute contracts), non-cash currency operations, deposit accounts, securities market transactions, the issue and support of corporate cards (Visa), payroll projects, cash collection services, online banking, merchant acquiring, leasing services, currency control, letters of credit, and partner programs (insurance, private pension funds).
Retail customers are provided with cash settlement services, a lineup of deposit accounts, loans (consumer, auto and mortgage loans), wire transfers (Western Union, Golden Crown), safe deposit boxes, letters of credit, memorable coins, brokerage and depositary services, bank cards and Internet banking. Mortgage lending is rolled out aggressively because the bank invests in housing construction and keeps close partnership ties with Moscows leading home builders (Morton, etc.).
The banks clientele totals around 219,000. Among customers the bank distinguishes companies operating in the construction and related sectors (Mospromstroymaterialy, Mekhanizatsia-2, an operator of construction machinery and equipment).
In January-July 2016, the financial institutions net assets declined sharply (down Rub 4.2 bln) to Rub 33 bln as of August 1. On the liabilities side, corporate funds and retail deposits slid tangibly (off Rub 4.1 bln and Rub 1.7 bln, respectively), and equity, to a lesser extent (down Rub 61 mln). At the same time, the bank bumped up its portfolio of inter-bank loans (up Rub 943.5 mln) and promissory notes issued by the bank (an increase of Rub 94.1 mln). As for assets, high-liquidity assets contracted by Rub 1.9 bln, the securities portfolio shrank by Rub 1.5 bln, and other assets declined by Rub 695.8 mln, funds placed in the inter-bank lending market fell to zero and the credit portfolio dropped by Rub 166.8 mln.
As for liabilities, 47.4% falls to retail deposits (down 9.9% YTD to Rub 15.7 bln as of August 1, 2016). Also, 67.6% of retail funds were drawn for 12 to 36 months. Funds of businesses and institutions account for 20.1% of liabilities, down 38.4% YTD. As regards the breakdown of corporate funds, 59% falls to balances held on demand accounts, 35.1% to 3Y+ deposit accounts. The banks clientele is mainly comprised of construction firms, with turnover on customer accounts during the period under consideration ranging from Rub 21 to Rub 41 bln per month. Notably, turnover has halved YTD. As of December 31, 2015 balances held by the banks five major customers accounted for 20.4% of total client funds.
Since the beginning of 2016 the banks equity (capital) has dropped marginally (slightly less than 1%) to Rub 6.6 bln, or 20% of liabilities, as of early August. For this reason, the banks capital adequacy ratio (№ 1.0), which is calculated based on the Bank of Russias methodology, fell respectively, equaling 15.7% as of the balance sheet date. Capital is composed of 13 subordinated loans for a total of Rub 2.3 bln with maturity from June 2036 through June 2041.
Drawn inter-bank loans account for 9.7% of liabilities, up 41.6% since the beginning of 2016. All loans were taken out from Russian banks, mainly for two to seven days. Promissory notes issued by the bank account for less than 1% of liabilities.
As for the breakdown of assets, equal portions fall to securities and the credit portfolio (36% each), 3.6% to high-liquidity assets (mainly cash in hand and funds held on a correspondent account at the Bank of Russia), 3.3% to other assets, and 3.2% to fixed assets and intangibles.
Since the beginning of 2016 the credit portfolio (Rub 11.8 bln) has shrunk moderately (-1.4%) because of the corporate segment (down Rub 597.1 mln). Meanwhile, retail lending rose by Rub 430.3 mln. In spite of a decline in the corporate credit portfolio, its share in the total credit portfolio remains dominant (90.8%). Overdue debt has climbed over 4x YTD, and its share also jumped substantially from 3.7% to 15.5%. The banks provisions cover 16.3% of all loans. Notably, credits are highly collateralized (174.3%). In line with the banks FY15 IFRS financial statement, 35.5% falls to construction firms, 19.3% to retailers, 13.9% to real estate operators, and 10.1% to financial services. The banks eight biggest borrowers account for 47.6% of total loans payable, which is a sign of high concentration.
The securities portfolio totals Rub 11.9 bln, down 11.3% YTD. Also, 47% of the securities portfolio falls to corporate bonds, including those of foreign issuers. Also, around 29% of the portfolio is heavily used to raise liquidity in the market via repurchase transactions. Corporate promissory notes account for 10.7% of the portfolio, 10.6% to funds invested in banks bonds, including non-resident banks (2.8%). In line with the FY15 IFRS financial statement, the portfolio mainly comprises liquid corporate bonds (including Eurobonds), banks bonds and promissory notes.
In the inter-bank lending market the lending institution both lends and borrows, but, to a large extent, borrows short liquidity heavily. The bank borrowed Rub 73.3 bln in July 2016. The bank is aggressive in the currency market, with monthly turnover of Rub 177—211 bln.
The lending institutions FY15 profit totaled Rub 498.9 mln under RAS (Rub 419.9 mln in 2014). During the first seven months of 2016 the bank earned Rub 39.5 mln in profit.
The Board of Directors: Yury Petrov (chairman), Sergey Deryabin, Larisa Podgornaya, Nadezhda Kurtasova, and Gennady Ulanovsky.
The Management Board: Vladimir Pukhov (acting chairman), Nadezhda Kurtasova, Nikolay Bazhenov, Svetlana Alexeeva, Vladimir Troparevsky, and Svetlana Mitina. Hide