Promsvyazbank reports Investment Banking results for 200816.03 | 2009
Promsvyazbank (PSB) considers its 2008 results in the area of investment banking as successful, despite significantly deteriorated external markets, the actual closure of the Russian debt market, and the meltdown in securities markets in H2 2008. From January to August 2008, PSB arranged 8 bond issues with a total nominal value of RUB 17.4 billion, including PSB own issue, and the bond issues of JSC Synterra, OJSC Polyplast, Penoplex Finance Ltd., Amet-Finance Ltd. (Ashinsk Metallurgical Plant) and OJSC Sibirtelecom. According to Bloomberg, PSB ranked No. 10 bond arranger of domestic bond issues in 2008. In 2008, PSB was also active in the market of public foreign borrowings of Russian companies, co-arranged a number of CLN issues, and arranged, together with Credit Suisse, two Eurobond issues of OJSC AK Transneft in the total amount of US$ 1.65 billion. In 2008, PSB maintained a leading position in the secondary domestic bond market and significantly increased activity in the secondary market of Russian corporate Eurobonds. PSB was one of the leaders in the market of interdealer bond repo transactions; the Bank also moved up the Top 10 ranking of leading operators in the secondary ruble bond market, and remained at the top of the ranking of government bond repo operators. PSB’s securities portfolio strategy for 2008 was developed in anticipation of adverse market movements, and encompassed liquidation of the equity portfolio as well as a more conservative approach to issuer evaluation and shortening duration for the fixed income portfolio. Appropriate risk management policy and limit setting have allowed PSB to minimize losses from the negative revaluation of securities. In particular, none of the issuers, whose bonds were included in the PSB portfolio of Eurobonds and domestic bonds, defaulted on its obligations in 2008. PSB continued to expand its brokerage services. The number of active clients in the reporting period increased by 23%, with PSB attracting some former clients of competitor companies going out of business; and the number of online brokerage clients increased by 17%. PSB substantially increased the sales of hedging services for clients engaged in international trade, and of futures and options (FORTS products). In 2009, taking into account the harsh reality of the global recession, PSB’s Investment Banking division will offer its clients an anti-crisis product range, maintain a conservative securities portfolio strategy and continue to expand its client base.
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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