Nizhny Novgorod Bank is preparing to attract a portfolio investor

Yesterday, at an extraordinary meeting, the shareholders of OJSC CB "Association" increased the composition of the bank's council to six people, including the vice-president of the Association of Regional Banks of Russia Oleg Ivanov. As the chairman of the board of the bank, Mikhail Gaponov, explained, this initiative was dictated by the Bank of Russia’s recommendation to increase the publicity of Russian banks and include independent directors “not affiliated with the owners” on their boards, as well as the need for further development of the Association Bank. According to Mr. Gaponov, Oleg Ivanov will attract foreign partners for the bank, who at the first stage will act as creditors, and then can enter the authorized capital of the Association, receiving a package of up to 25% plus one share: “Cooperation with international financial institutions requires experience, connections and competencies. Oleg Mikhailovich has all this.” Mr. Ivanov himself explained that the partnership would most likely include three stages: provision of a long-term loan for the development of the Association’s credit programs, provision of a subordinated loan and entry into the authorized capital. Negotiations are already underway with the EBRD, IFC and the German state bank KfW. “Early this year, IFC created a fund for the recapitalization of private Russian banks, which over the coming years plans to invest $0.5–1 billion in the capital of 20 Russian banks. KfW in March 2013 is also creating a specialized fund that will support credit and leasing Russian organizations financing small and medium-sized businesses. The EBRD created a fund to support small businesses in Russia 20 years ago, already has about two dozen partner banks here and plans to double their number,” said Oleg Ivanov. According to him, in the last few years, the Association of Regional Banks has noted “significant interest in private, successfully developing banks in the regions, the so-called “champion banks.”

KB "Association" was founded in 1990. At the end of 2011, the net profit of OJSC CB "Association" amounted to 48.1 million rubles. (growth by 18.5%), balance sheet currency - 5.2 billion rubles. (52%), loan portfolio - 4 billion rubles. (48%), the volume of funds raised is RUB 3.6 billion. (35%). As of July 1, 2012, it ranks 349th in the Interfax-CEA rating of “Top 400 Russian banks” with assets of 5.25 billion rubles. (growth compared to the end of 2011 10.4%) and equity capital of 721.7 million rubles. (79.2%). It is controlled by companies close to the president of Nizhny Novgorod OJSC Gidromash, the head of the Nizhny Novgorod Association of Industrialists and Entrepreneurs Vladimir Luzyanin: 25.5% of the bank's authorized capital belongs to OJSC Nizhny Novgorod Television Plant named after. Lenin", 9.8% - CJSC Hydraulic Systems, 8.5% - OJSC Petrovsky Plant, 8.2% - CJSC Gidromashfarverk.

Among the Nizhny Novgorod banks, NBD Bank and Forus Bank are currently cooperating most actively with foreign financial institutions. NBD Bank was generally the first in Russia to have the EBRD join its authorized capital after the 1998 crisis: in 2001, the European Bank for Reconstruction and Development bought 25% of the voting shares of NBD Bank. At the moment, the bank has more than 15 foreign partners: in addition to the EBRD, joint projects have been opened with the IFC, the Black Sea Trade and Development Bank (BSTDB), the German Investment and Development Corporation (DEG), etc. Forus Bank also works closely with the EBRD, the American government Overseas Private Investment Corporation (OPIC), financial groups BSGV, HSBC, ING.

Commenting on the Association’s plans, the head of the regional department of the Bank of Russia for the Nizhny Novgorod region, Gennady Komissarov, notes that the regulator constantly “recommends, configures and convinces” regional bankers of the need to work at the international level: “In addition to cheap money, this gives new impetus to development and authority in banking system." “Cooperation with international financial institutions as one of the directions for growth is justified and logical, otherwise we ourselves would not have been doing this over the past 15 years,” says the head of NBD Bank, Alexander Sharonov, noting that at this particular moment Russian banking assets are quoted not very high: “Sberbank’s SPO passed with a ratio of 1.3 to capital, the planned placement of Promsvyazbank is estimated below one.” “A lot of time has passed since the last crisis, but even to this day, large foreign investors, including financial organizations, are not yet particularly eager to invest in the Russian banking system,” confirms Evgeniy Trusov, director of the banking consulting department of the NEO Center consulting group. . According to him, “perhaps in two or three years the situation will change and, perhaps, the Association will even be able to become one of the first banks after the crisis to attract large foreign financial institutions into its capital.” This process, according to the analyst, will not be easy for the Association. To do this, according to the expert, the bank needs “outstanding communication skills of management” and increasing investment attractiveness - a further increase in capital and transparency of the corporate structure. “In this regard, plans for the initial raising of loans for the development of lending, as well as attracting subordinated loans, look quite reasonable.” Mr. Sharonov adds that when choosing partners in Russian regions, foreign investors consider the bank’s clear vision of its market niche and prospects for its development, as well as the availability of an action plan and technologies to implement these intentions, to be fundamental.

Tatiana Krasilnikova

Foreigners are invited to the “Association”