International Financial Club OJSC JSCB Bank IFC

The Bank operates under license No. 2618 issued by the Bank of Russia on March 2, 2009.

Performance indicators

2019: Loss after tax amounted to 3.4 billion rubles

On February 5, 2020, it became known that the International Financial Club (IFC) bank, 93.4% of whose shares are controlled by billionaire Mikhail Prokhorov, in 2019 became the leader in losses among Russian banks that did not go through the reorganization procedure. The head of the analytical department of the bank BKF Maxim Osadchy drew attention to this fact. The loss of the bank after taxation amounted to 3.4 billion rubles, follows from its quarterly reporting under RAS. The Moscow Industrial Bank (117 billion rubles), which was rehabilitated by VEB Svyaz-Bank (17 billion rubles) and Baltinvestbank (3.6 billion rubles), which was rehabilitated by Absolut Bank, became the leader in losses in 2019.

The bank showed the largest loss in the fourth quarter of 2019 - 2.8 billion rubles. In the first three quarters, the loss did not exceed 270 million rubles. The bank's losses at the end of 2019 are associated with the formation of reserves for losses, explains Maxim Osadchy - IFC reserved 2.4 billion rubles, of which 1.6 billion fell on corporate loans. In the fourth quarter, IFC also became the leader among Russian banks in terms of additional capitalization. Shareholders increased capital by 600 million rubles in November and by 2.45 billion rubles in December. Most likely, reserves were accrued during a planned audit by the regulator, which ended on January 17, 2020, Osadchy suggests. At the beginning of February 2020, the bank's capital adequacy ratio (N1.0) is at a comfortable level - 16.5% with a minimum without allowances of 8%.

The press service of the bank said that the reasons for the losses are the additional creation of a reserve for the loan portfolio, the sale of assets at a discount, the revaluation of property that is not used in core activities. The bank clarified that the assistance from the shareholder was in a non-cash form, but in which - did not specify.

The bank has been unprofitable over the past five years, Osadchy notes. In 2015, the loss of IFC amounted to 19.4 million rubles, in 2016 - 3.9 billion rubles, in 2017 - 1.4 billion rubles, in 2018 - 3 billion rubles.

For the past two years, IFC has been actively clearing distressed assets from its balance sheet. This was noted by the Expert RA rating agency, which in May 2019 raised the bank's rating by one notch to ruBB. The agency assessed IFC's market position as weak, but noted that the shareholder in past years has repeatedly provided assistance to the bank. In total, 10.65 billion rubles were spent on additional capitalization of the bank in 2016-2019, follows from the calculations of Maxim Osadchy, based on Russian reporting. In addition, in the spring of 2018, the bank conducted an additional issue of 2.8 billion rubles.

IFC's distressed assets are partly foreign currency loans, which worsened after the devaluation of the ruble in 2014, partly loans from large production and development companies, whose financial situation weakened, among other things, due to the situation in the economy after 2014, says Maria Zinina, junior director of banking ratings at Expert RA.

Mikhail Prokhorov is the main shareholder of IFC. He directly owns 83.6% of the bank's shares, another 9.8% - through the Cyprus offshore Onexim Holdings Limited. The second major shareholder is Ekaterina Ignatova (6.5% of the shares), the wife of the general director of the Rostec state corporation Sergei Chemezov. IFC ranks 105th in terms of assets for the third quarter of 2019, according to the Interfax-100 rating, ^[1].

History

2022: Bank downgrades due to deteriorating liquidity

In April 2022, the Bank "International Financial Club," the main shareholder of which is billionaire Mikhail Prokhorov, turned out to be the first Russian player from the top 100, to whom the national rating agency after February 24 (the start of Russia's special operation in Ukraine) reduced the credit rating. On April 18, the Expert RA agency worsened the IFC rating by two steps, to the ruBB- level, revising the forecast from "stable" to "negative." As noted in the agency's message, this was also due to the "weakening of the liquid position" of the bank against the background of the operations of VIP depositors.

2020: Mikhail Prokhorov sells 35.84% of the bank's shares to Tatyana Orlova

In March 2020, it was announced that entrepreneur Mikhail Prokhorov sold 35.84% of the shares of the International Financial Club (IFC) bank to Tatyana Orlova. The parties did not name the amount of the transaction.

Prokhorov has 57.6% of IFC (owns directly and through Onexim Holdings Ltd.), another 6.5% of the bank belongs to the wife of Rostec CEO Sergei Chemezov Ekaterina Ignatova. Prokhorov, Ignatova and Orlova are on the board of directors of the credit institution.

2016

As of mid-2016, since its inception, the bank has brought Mikhail Prokhorov almost 360 million rubles, despite the losses of the last crisis years. If not for the outflow in 2016, against the background of searches in ONEXIM, customer funds totaling 10 billion rubles, the project could be considered an exemplary^[2].

2015: IFC appointed sanatorium of Tavrichesky Bank

In December 2014, Tavrichesky Bank ceased to serve customers. In February 2015, external management was introduced in the bank, in March of the same year, Mikhail Prokhorov's IFC bank was appointed as a sanatorium.

2013: Profit of RUB 1 billion

The net profit of IFC Bank at the end of 2013 exceeded 1 billion rubles (as of January 1, 2013, 969.6 million rubles). This is one of the few resources of M. Prokhorov, who brought good profit for 2013. Perhaps this is due to the fact that the owners of IFC, in addition to M. Prokhorov, are other businessmen^[3].

2011: Making payments from Rosoboronexport to an official in Indonesia

The documents of the American financial intelligence FinCEN, which turned out to be ICIJ in September 2020, show that the International Financial Club bank was a participant in operations between Rosoboronexport and an official from Indonesia.

In particular, hundreds of thousands of dollars went to a businessman of Chinese origin , Yang Jin Tjong, who is called Sujito Ng in Indonesia. He was part of the entourage of the country's former president (Susilo Bambang Yudoyono) - a military man who was Minister of power and Minister of Politics, Law and Security. At the same time, Indonesia decided to buy Russian Su fighters and other military equipment.

The Indonesian press reported that due to his proximity to political circles and military leadership, Sujito became the largest agent for the supply of Russian Su-30 fighters and armored personnel carriers to Indonesia.

FinCEN documents show that in 2011-2012, Rosoboronexport paid Sujito personally, and these payments raised questions from the American bank Bank of New York Mellon, which noted them in its report on suspicious money transfers.

So, on December 29, 2011, Rosoboronexport transferred Sujito more than $220,000 under "additional agreements" to the 2005 agreement, the essence of which was not disclosed. One of the banks through which this money passed - JP Morgan Chase - then canceled this transaction and returned the funds due to the "risks" associated with Rosoboronexport. But the funds were redirected through another bank. And on January 24, 2012, Sujito Ng received another $51,000. All this happened a few years before the start of US sanctions against Rosoboronexport.

2010: Equity 4.2 billion rubles, assets - 27.1 billion

As of July 1, 2010, the bank's equity amounted to 4.2 billion rubles, assets - 27, 1 billion rubles.

2008: Prokhorov buys APR Bank and renames it IFC

Experiencing nostalgic feelings about the name (under this name the first bank was opened, founded by Mikhail Prokhorov with Vladimir Potanin in 1992; since 2003, this brand did not exist: IFC merged with Rosbank), in 2008 Prokhorov bought and renamed a small APR bank as IFC.

The International Financial Club (IFC) was created as a bank for its own. Therefore, among the bank's shareholders not only M. Prokhorov, but also such well-known businessmen as Alexander Abramov, Viktor Vekselberg and others.

Participation in organizations

ACB "International Financial Club" is a member of the mandatory deposit insurance system, is a member of the international payment systems Visa International, MasterCard International, as well as a member of the National Stock Association and the Moscow Interbank Currency Exchange. IFC Bank is a member of the Association of Russian Banks (ARB).

Notes