MTS-Bank’s EGM held on May 14 decided to reorganize the lending institution through the takeover of Dalcombank, the lending institution’s press service reported.

The integration with the subsidiary bank, Dalcombank, will increase MTS-Bank’s charter capital by 66.61 mln through the issue of additional common registered shares. The placement option will be to convert the shares on the day when a record is made to terminate Dalcombank’s activities in the Unified State Register of Legal Entities.

Dalcombank shareholders adopted relevant decisions at an EGM held on May 15, 2012.

“Strategic plans of the merged MTS-Bank are focused on boosting the number of customer service units and offering innovative banking services. On taking the assets under one roof and centralizing management, we’ll strengthen our presence nationwide. MTS-Bank is exploring possibilities to expand operations outside Russia. Ideally, we’d like to back up MTS’s transnational coverage area with MTS-Bank’s area of presence, offering advanced integrated solutions in the payment operations segment where telecom and financial services come together," commented Andrey Shlyakhovoy, board chairman at Dalcombank and management board chairman at MTS-Bank, on changes ongoing at the bank.

MTS-Bank is a major financial institution, a subsidiary of Vladimir Evtushenkov’s AFK Sistema. The bank was established in 1993. Until February 2012 the bank operated as Moscow Bank for Reconstruction and Development (MBRD). MTS-Bank’s business, despite quite a wide regional network, is centered on the Moscow region. Its key area of business is lending and maintaining accounts of corporate customers. Also, since 2003, the bank has been rolling out retail business (deposits and plastic cards). Furthermore, the lending institution also executes operations on the securities market.

Based on Banki.ru data, as of April 1, 2012 the lender’s net assets totaled Rub 142.20 bln (35th in Russia), capital (calculated in line with CBR requirements) totaled Rub 15.02 bln, the credit portfolio amounted to Rub 71.69 bln and obligations to households came to Rub 32.47 bln.

Dalcombank is the biggest lender registered in the Khabarovsk region and currently a subsidiary of MTS-Bank. The bank provides a wide range of banking services and products to both corporate customers and SMEs, and households. The bank holds strong competitive positions in the region. The primary source of funding for the bank is retail deposits, and also slightly under a half of all credits was provided to households.

Based on Banki.ru data, as of April 1, 2012 the lender’s net assets totaled Rub 26.26 bln (127th in Russia), capital (calculated in line with CBR requirements) totaled Rub 2.89 bln, the credit portfolio amounted to Rub 21.11 bln and obligations to households came to Rub 16.90 bln.