Promsvyazbank reports its Corporate Banking results for 200816.03 | 2009
According to Promsvyazbank’s (PSB) preliminary consolidated IFRS statements for 2008, loans to corporate customers (excluding loans to small and medium-sized enterprises) increased by 42% to RUB 249.7 billion. The bulk of the loan portfolio (65.3%) was comprised of standard loan products, such as corporate loans, lines of credit, and overdrafts; the rest was made up of international trade finance (25.7%) and factoring (9.0%). In H2 2008, PSB responded promptly to the worsening economic situation and adopted measures to minimize potential credit risks, including closer monitoring of the situation in various industries; tightening underwriting criteria for all types of borrowers; and focusing on companies with good credit histories at PSB. Lending to corporate clients remained one of PSB’s core business activities. A client-oriented approach and professional risk management allowed PSB to strengthen its position in the corporate lending market in 2008. PSB market share reached 2% (including factoring and international finance operations), whereas Corporate Banking income, according to preliminary IFRS statements, accounted for 51% of PSB total income. Within the portfolio of standard credit products, loans and lines of credit accounted for the biggest share (84.2%), with bank guarantees coming second at 13.5% and overdrafts facilities coming third at 2.3%. The regional structure of the loan portfolio (excluding Moscow and the Moscow region) reflected PSB’s active involvement in lending to regional companies in all federal districts of Russia. PSB branches in the Siberian Federal District were particularly active in acquiring new customers and assisting in the development of their existing customers’ business, resulting in the largest (30.7%) share of this District in the portfolio. PSB branches in the Central and North-Western Federal districts accounted for the second- and third-largest shares, respectively. The total volume of international finance transactions in 2008 reached about US$3.4 billion, a 44.3% year-on-year growth. In the sphere of factoring the volume of accounts receivable assigned to PSB in 2008 increased by 47% to RUB 142 billion. The volume of funds provided by PSB to its clients amounted to RUB 108 billion in 2008, up 40% year-on-year. PSB also provided is corporate clients a wide range of deposit products. According to the preliminary IFRS accounts, the total volume of corporate funding (current accounts and deposits) amounted to RUB 176 billion at YE 2008, up 67% year-on-year, including a 14% increase in Q4 2008. A wide range of products for corporate clients, efficient cross-selling between Retail and Investment Banking allowed PSB to expand cooperation with its existing clients, as well as attract new clients, including from among the largest Russian private and state-owned companies. In 2008, the number of PSB corporate clients increased to 65,000 from 50,000. In 2009, PSB will focus on factoring, domestic and international trade finance, and standard lending products. Special care will also be given to the development of deposit products, improvement of cash and settlement services and increased cross-selling between investment and retail products.
About Promsvyazbank OJSC Promsvyazbank, founded in 1995, is one of the leading privately-owned Russian banks, with total assets of RUB407.6 billion, and total capital of RUB46.7 billion under IFRS as of 30 September 2008. Holding company Promsvyaz Capital B. V. owns 84.68% of the Bank, the remaining 15.32% are owned by Commerzbank Auslandsbanken Holding AG, a subsidiary of the second-largest German bank Commerzbank AG. PSB has the following international credit ratings: “Ba2” from Moody’s Investors Service (stable outlook); “BB-” from Standard & Poor's (negative outlook); “B+” from Fitch Ratings (stable outlook). As of 1 February 2008, the regional network of the Bank in Russia encompassed about 170 sub-branches, 48 branches and 1 representative office; a foreign branch in Cyprus; and foreign representative offices in Kyrgyz Republic, Ukraine, China, and India.
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