Gazbank

The additional issue shares worth 1 billion rubles were bought by closed subscription by all seven shareholders in proportion to their shares in the authorized capital, Gazbank reported yesterday. The placement took place on August 15, the Central Bank of the Russian Federation approved the report on the results of the additional issue on September 2. The authorized capital increased to 1.998 billion rubles.

JSCB Gazbank

Universal bank. Assets - 29.5 billion rubles (Interfax-CEA). Shareholders' equity - 3 billion rubles. Net profit - 609.7 million rubles (1st half of 2008, RAS). Shareholders: member of the board of directors Vladimir Avetisyan - 14.41%, deputy general director of OJSC Samaraenergo Aleksandr Gridnev - 14.41%, vice-speaker of the Samara Regional Duma Oleg Dyachenko - 14.41%, former general director of OJSC Samaratransgaz Gennady Zvyagin - 13.48%, Minister of Finance of the Samara Region Pavel Ivanov - 14.41%, general director of OOO Samararegiongaz Andrei Kislov - 14.41%, Yuri Makushin - 14.46% (as of July 1, 2008, bank data).

The funds from the additional issue will be used to develop consumer and corporate lending, as well as new investment projects, said an employee of the PR policy and marketing department of Gazbank.

The additional issue will allow Gazbank to increase its balance sheet total from the current 43 billion rubles to 2 billion euros (about 71 billion rubles), and enter the top 50 Russian banks in terms of assets, says a bank representative. According to the results of the first half of the year, Gazbank's assets are 29.5 billion rubles. In the Interfax-CEA rating, at the end of the first half of the year, Rusfinance Bank was in 50th place in terms of assets - 61.2 billion rubles.

"Banks increase their authorized capital when their capital adequacy ratio (CAR) approaches 12-13%," says Bank of Moscow analyst Dmitry Khamrakulov. Gazbank's assets are growing rapidly, and in order not to reduce the CAR (the minimum permissible level is 10%), the shareholders carried out an additional issue, and Denis Khadeev, Senior Vice President of Pervobank, agrees. After the additional issue, Gazbank's CAR will increase from 13.3% to 14.56%, Gazbank said in a statement. According to Khamrakulov, given Gazbank's previous development (see diagram) and the growth of assets in the Samara Region banking system (15-20% per year), Gazbank will be able to increase its assets to 60 billion rubles within two to three years.

"Gazbank wants to regain its leadership position in the Samara Region," believes Andrey Borisov, Chairman of the Board of the B2b Group banking group. According to the results of the first half of the year, Gazbank fell to second place in the region in terms of assets and equity capital, behind Pervobank. According to the results of 2007, Gazbank's assets grew by 37%, equity capital by 12.5%, and Pervobank's by 77% and three times, respectively.

Borisov believes that Gazbank's plans are feasible, especially since one of the bank's shareholders, Vladimir Avetisyan, in July headed the AvtoVAZ auto component holding with an estimated annual turnover of about $20 billion.

Shareholders helped the bank