Translated by






"Conscience" — the financial detailed project started by Qiwi company at the end of 2016. It is the card of interest-free payment by installments which allows to buy goods more than in 20 thousand shops by installments for a period of up to 12 months without percent and overpayments. The issuer — QIWI Bank, the license of the Central Bank of the Russian Federation No. 2241.

2020: Sovcombank buys Conscience

On June 18 the QIWI company announced conclusion of an agreement about sale of the project of consumer crediting Conscience of PJSC Sovcombank. Within the transaction the Company intends to assign to Sovcombank of the right of requirements to clients of the Conscience project with a gross carrying amount about 9 billion rubles and with a net value about 7.6 billion rubles and to receive monetary compensation according to these requirements in the amount of 6 to 6.5 billion rubles. In further QIWI is going to transfer to the buyer practically all assets, including the corresponding brands and domains. Within the transaction the Sovcombank intends to make offers on employment to a number of employees of the Conscience project and to compensate QIWI a part of the expenses connected with dismissals. The final cost of the assigned rights of requirements and the monetary compensations received by the Company is subject to assessment which should take place approximately in a month; at this moment, as expected, there will also be a closing of the transaction. Documentation on the transaction includes assurances and the guarantees, contractual commitments and conditions of closing commonly accepted for transactions of this kind.

"Sale of the project "Conscience' will allow QIWI to be focused on the directions, strategic for us, – service of key client niches and development of synergy products of an ecosystem of our payment business. From the very beginning of project implementation "Conscience' we aimed to develop it on multibank model that would allow us to scale the project, without assuming all credit risks and without providing with own forces all volume of funding necessary for growth. However, in view of both current a situation, and some other factors, we did not manage to create multibank model which would be economic and technology effectively implementable for all participants. Having analyzed possibilities of development of the project "Conscience', including the necessary financial investments for creation of the full bank offer, we came to a conclusion that such strategy will cause considerable investments from our party, will increase credit risks and also will deliver us in a situation of keen competition with other market participants. We consider that the bargain concluded by us with Sovcombank is profitable to all concerned parties. The QIWI will be able to concentrate on development of the product offer for the target audience, including self-employed. Our clients will continue to do the usual purchases on the terms of interest-free payment by installments and will have many new opportunities from the card "Halvah'. We are convinced that with sale of the project "Conscience' the QIWI will have more opportunities to focus on key client niches and also on development of the innovative technological payment solutions for the clients and partners" — Kim Boris, the CEO of the QIWI Group noted.

"Consolidation of projects "Conscience' and "Halvah' will become really win-win the project from which all will benefit: clients, partner shops and banking market in general. Clients of "Conscience' will have an opportunity to buy goods without percent in 200 thousand partner shops of "Halvah' and also to longer terms of payment by installments. Partners of the card "Conscience' will have an opportunity to sell goods by installments to 5 million holders of cards "Halvah', partners of "Halvah' will receive more than 1 million additional clients – holders of cards "Conscience'", and the banking market in general will receive more competitive environment on consumer credit market and credit cards" — Sergey Hotimsky, the First deputy chairman of the board of PJSC Sovcombank told.

We expect that the general corrected net loss on a segment of consumer financial services for complete 2020 will not exceed 2 billion rubles that meets expectations of the Company. Besides, as a result of business sale we will suffer losses from write-off of assets. We expect that the loss based on the transaction will not exceed 1.5 billion rubles. This loss will not have an impact on the corrected net profit of Group as it will be considered in the form of adjustment owing to the one-time nature of the transaction.