Absolut Bank
JSCB Absolut Bank - founded in 1993.
Aktivs
At the end of 2018, Absolut Bank took 34th place in terms of assets in the Interfax-100 ranking. Its controlling shareholder is NPF Blagosostoyanie.
According to the results of 2018, the group's assets decreased by 19% and amounted to 237.2 billion rubles.
Performance indicators
2019
Net profit amounted to 770 million rubles
On April 2, 2020, Absolut Bank reported positive financial results according to the international financial statements for 2019. The bank's net profit amounted to 770 million rubles.
 | The profit was generated as a result of the improvement of dynamics in the areas of business priority for us, in particular, mortgage crediting in the guarantee business, where we maintain our leadership position, explains Tatyana Ushkova, Chairman of the Board of Absolut Bank
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According to her, profit fixing, among other things, contributes to the profitable sale of a pool of high-quality loans to those banks that later entered the mortgage lending market.
The volume of the mortgage portfolio for the year as a result of active work with partners throughout the network grew to 93.75 billion rubles, which allowed Absolut Bank to improve its position in the top 10 leading mortgage banks.
The volume of the portfolio of bank guarantees for SMEs as a result of the launch of convenient online services over the year increased by 47% - to 51.2 billion. Now every third guarantee within the framework of the state order is issued by Absolut Bank.
According to the results of 2019, the Bank's net commission income grew by 17% - from 2.06 billion to 2, 48 billion.
The portfolio of deposits of individuals, including private banking clients, increased from 104.8 to 112, 27 billion rubles, which indicates a stable passive base and customer confidence. At the same time, the amount of funds of wealthy clients increased over the year from 41.8 to 44.1 billion rubles.
Increase in the volume of mortgage issuance by 9.2%
On January 16, 2020, information appeared that at the end of 2019, Absolut Bank increased the volume of mortgage issuance by 9.2% compared to the results of 2018: the total amount of housing loans amounted to 51,890 million rubles. At the same time, the growth rate of mortgage issuance at Absolut Bank, according to expert assessment, is 13% ahead of the market.
The results of the last month of 2019 bank are considered record: in December, Absolut Bank issued mortgages for 5,808 million rubles, which is 33% more than in December 2018. As follows from the bank's message, one of the reasons for such results is the launch of winter mortgage shares, to crediting including Orange Saturday shares. As a result, all the Saturdays of December were workers, which increased the number of bank customers who successfully resolved the housing issue before the holiday holidays.[1]
Information Technology in Absolut Bank
2021: New Managing Director, Digitalization Coordinator - Maxim Belousov
In March 2021, Absolut Bank announced that Maxim Belousov was appointed managing director. In this position, he coordinates at Absolut Bank the IT digital development strategy and effective business support in terms of the operational unit. Read more here.
2020: Absolut Bank Implements Knowledge Management System in Retail Network
Absolut Bank will scale the Knowledge Management System for all employees of the retail chain from the beginning of 2020. The reason for the introduction of the Knowledge Management System into the retail network of Absolut Bank - the results of the launch of a unified knowledge base into the work of contact center employees in 2019 exceeded expectations.
Also in the plans for 2020, the integration of the Knowledge Management System with the chatbot platform, telephone and CRM systems of the bank.
- For six months of the existence of the Knowledge Management System in the contact center, a number of high indicators were achieved. For example, 40% reduction in the training time of new specialists and the training time of existing employees of the Bank - by 10%. The number of errors decreased by 5%.
- The time to search for the necessary information by the contact center staff was also reduced from 1-2 minutes to 8 seconds.
- By reducing customer service time - by 12% - it was possible to optimize the costs of the contact center.
- The knowledge management system will allow employees of the Bank's retail network to optimize their work with content, improve their efficiency and improve the quality of customer service.
History
2024: TAdviser interview with CISO Ruslan Lozhkin
Banking infrastructure is one of the critical ones. At the same time, it is the most developed in terms of information security. Ruslan Lozhkin told CISO Absolut Bank about the key tasks of protecting the bank from cyber attacks and requirements for Russian suppliers of information security solutions in an interview with TAdviser. Read more here.
2023: Aslan Shogenov appointed chairman of the board
On February 10, 2023, Aslan Shogenov was appointed new chairman of the board of Absolut Bank. Previously, in this credit institution, he coordinated corporate business as deputy chairman of the board. Read more here.
2022: Closing of Dollar Correspondent Account at JP Morgan and Termination of SWIFT Transfers
From August 2022, Absolut Bank is expected to close the dollar correspondent account at JP Morgan Bank. He will not be able to enroll and translate into dollars. The bank does not open dollar accounts and closes SWIFT transfers.
2020
Absolyut Bank is chosen by authorized bank of the Ministry of Digital Development of the Russian Federation
Absolut Bank on September 17, 2020 informed TAdviser about the selection at the Ministry of Digital Development, Mass Media Communications of the Russian Federation (Ministry of Digital Media), becoming the authorized bank of the Ministry.
Absolut will take part in the implementation of the program within the framework of Decree of the Russian Federation No. 1598 "Promising measures to support the IT industry and digital transformation of sectors of the economy." The program is designed to support the industry of domestic IT products.
After concluding an agreement with the Ministry of Absolute, the Bank will be provided with subsidies for targeted loans issued for the introduction of domestic products, software and hardware complexes, software, services and solutions created on the basis of digital technologies in the Russian Federation.
According to the information provided on the website of the Ministry of Digital Development, the recipients of the subsidy are systemically important credit organizations and other legal entities that have the right to carry out banking operations and provide loans that have been selected and recognized by authorized banks. Authorized banks provide short-term and investment loans to Russian companies at a preferential rate of 1 to 5%. The maximum loan volume for the project is 5 billion rubles, for the program (set of projects) - 10 billion rubles. Preferential lending to borrowers is provided until the end of 2024.
| | Absolut Bank has established itself as a reliable bank with high technological expertise, and as an authorized bank of the Ministry of Digital Development, Communications and Mass Media, we are starting to work on a strategic government program aimed at supporting leading companies from the field of domestic IT products. - comments Aslan Shogenov, Deputy Chairman of the Board of Absolut Bank.
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Negotiations with the Central Bank on increasing financing for the reorganization of Baltinvestbank
On January 23, 2020, Kommersant Publishing House announced that the Central Bank and Absolut Bank are negotiating an increase in financing for the reorganization of Baltinvestbank, he became aware of this from two sources in the financial market. Read more here.
2018
Net loss of RUB 8.6 bln
At the end of 2018, the Absolut Bank group reduced its net loss under IFRS by 1.7 times - to 8.6 billion rubles from a loss of 14.7 billion rubles in 2017, follows from the bank's report.
Excluding the consolidation of Baltinvestbank being rehabilitated, the group's loss in 2018 amounted to 4 billion rubles due to the reservation of corporate debt issued before 2017, the bank's press service explained to Interfax. The loss on the Baltinvestbank group amounted to 4.5 billion rubles and was also associated with the additional formation of reserves for distressed assets.
| | "The bank has formed conservative reserves for all distressed loans of the banking group," said the representative of[2] credit institution[2] | |
Absolut Bank, in accordance with the strategy, planned to receive 0.4 billion rubles of net profit in 2018, in 2019 - 1.8 billion rubles of profit.
The group's expenses on reserves in 2018 decreased by almost 4% - to 12.5 billion rubles.
Net interest income before reserves in 2018 decreased by 15.5% - to 7.7 billion rubles.
The securities portfolio for 2018 decreased by 45 billion rubles, while the bulk of them were implemented in the first half of the year, said the representative of Absolut Bank.
The loan portfolio before provisions in 2018 grew by 2.7% - to 185.7 billion rubles, after reserves decreased by 8.5% - to 148.5 billion rubles. The volume of reserves doubled to 37.3 billion rubles from 18.6 billion rubles in 2017.
The corporate loan portfolio to reserves in 2018 decreased by 16.9% - to 85.3 billion rubles, retail grew by 28.5% - to 100.5 billion rubles.
| | "In the new strategy, the focus has changed from corporate lending to collateral lending. A strategy is being implemented to reduce the share of corporate lending, with the exception of lending to Russian Railways companies, "said a bank representative. | |
In 2018, the Group sold mortgage loans for 6 billion rubles, car loans - for 3.5 billion rubles.
| | "The bank plans to develop a service model involving the sale of part of the mortgage portfolio to the market: we plan to sell up to about 40% of the issued volume, and leave 60% on the balance sheet," the press service noted. | |
Shareholders capitalized the bank by 6 billion rubles.
In August 2018, it was announced that shareholders capitalized Absolut Bank for 6 billion rubles, buying out an additional issue of shares at a price of 34.66 rubles. per share. The shares were acquired by Transfingrup Management Company, Trinfico Management Company and Leader CJSC, associated with Blagosostoyanie NPF, the main founder of which is Russian Railways. The Bank of Russia registered a report on the results of the share offering. As a result, the authorized capital of Absolut Bank increased by almost 32%, to 7.1 million rubles. (at face value).
| | "The investment in capital will create additional opportunities for the implementation of a new development strategy and allow the bank to strengthen its position in priority business areas," commented Tatyana Ushkova, Chairman of the Board of Absolut Bank. | |
The ratio of capital to assets at the bank at the end of the first quarter of 2018 fell to 2.4%, indicating a need for recapitalization.
The positive effect of the additional issue of Absolut Bank for 5 billion rubles, which took place in October 2017, to date has already been completely offset by the bank's losses, said Vladimir Teterin, director of bank ratings at Expert RA.
| | "The Bank reduces the volume of corporate lending. As a result, there are fewer potential large credit losses, says the expert. "But it cannot be ruled out that in about a year, about half of the new capital can be" spent "due to the implementation of corporate risks and the revaluation of non-core assets[3]. | |
Consideration of the issue of merging with Gazprombank
Fitch first lowered the bank's rating by two steps at once, and then withdrew it with the diplomatic wording "for business reasons." Nevertheless, the Central Bank is in no hurry to revoke the license, apparently in anticipation of the upcoming deal with Gazprom.
According to Reuters, the board of the Blagosostoyanie fund may consider the possible sale of its controlling share from 51 to 75% in NPFs at a meeting until the end of July 2018. The buyer is allegedly the pension fund of employees of the Gazfond monopoly, controlled by families of bankers from Rossiya Bank - Yuri Shamalov and Yuri Kovalchuk.
Telegram channel @ bankomafia writes that the idea in the deal between Russian Railways and Gazprom is to combine NPF Gazfond with Welfare, and then two subsidiary banks - Absolut and Gazprombank. In fact, both funds have one problem - the ownership of a controlling stake in the[4] credit[4]
Telegram channel @ Thoughts-NeThought believes that at one time, in a similar way, the state-owned company Rosneft saved the ICD from collapse, while the rest of the "Moscow banking ring" drowned. In fact, this means that Gazprom is no less interested in the deal than the railway monopoly.
Unsuccessful attempt to sell the bank
Until July 2018, Russian Railways tried to sell separately TransFin-M and Absolut-Bank, which are under the control of NPF Blagosostoyanie. The monopoly bank was not lucky right away: there were no buyers for it. A hole in the balance sheet of 4 billion rubles scares off potential investors. Telegram channel @ Boilers believes that Absolut Bank, which at that time is vacuuming the deposit market of individuals at 7% per annum and above, is the absolute leader among Russian banks at the rate, and this is a litmus test to assess its problem.
The fact that Absolut Bank was withdrawn from sale was told to the Kommersant newspaper in July 2018 by two sources close[5] credit institution[5]. According to them, the corresponding decision will be approved at the end of July at the board of NPF Blagosostoyanie, which will discuss issues related to the upcoming corporatization of the fund. Both interlocutors claim that they could not find a buyer for the bank, since in addition to problematic assets on the balance sheet, the transaction is complicated by the reorganization of Baltinvestbank (Absolut Bank could only be sold with it). The search and recommendation of the Central Bank complicated: the buyer should be much more reliable and larger than Absolut Bank, says one of Kommersant's sources. The second interlocutor of Kommersant clarifies that the regulator thus does not want to find itself in a situation where not only Baltinvestbank, but also Absolut Bank and the buyer will have to be sanitized by the Banking Sector Consolidation Fund.
"There are no examples in my memory when a bank of this size was able to be sold in conditions of chronic unprofitability and the presence as a" dowry "of a rehabilitated credit institution," says Vladimir Teterin, director of bank ratings at Expert RA. "At the moment, it is probably premature to believe that any large structure will show interest in such a purchase."
According to Alexander Danilov, senior director of the Fitch Ratings banking analytical group, given the poor quality of assets and the loss-making of the bank, its sale without prior injections from the current owner is "unrealistic."
In connection with the refusal to sell Absolut Bank, now, according to one of Kommersant's sources, work is underway to sell bad corporate loans or to better manage distressed assets. The bank seeks to complete this work by the end of the year, that is, before the corporatization of NPF Blagosostoyanie. Absolut Bank answered Kommersant's questions that the shareholder makes all strategic decisions on transactions with banking assets. NPF Blagosostoyanie reported that the fund supported and intends to continue to support Absolut Bank in accordance with the approved strategy, but clarified that the fund considered and considers various investment opportunities on favorable conditions for NPFs.
Bank No. 37 in Russia
According to reports for May 2018, Absolut Bank ranked 37th in the Russian banking system with assets of 264 billion rubles, and 40th in terms of capital (27.5 billion rubles). The loss for the first half of 2018 reached 2.7 billion rubles.
Tatyana Ushkova replaces Andrei Degtyarev as CEO
In March 2018, Absolut Bank shareholders voted to early terminate the powers of the current chairman of the bank's board, Andrei Degtyarev, and appoint Tatyana Ushkova to this post, the bank said in a statement.
Ushkova will head the board after the approval of her candidacy by the Bank of Russia. It is assumed that Degtyarev will deal with corporate projects of the structures of the controlling shareholder of the bank of the non-state pension fund "Welfare."
The change in the head of Absolut Bank is associated with a change in its business model and a greater reorientation to the development of the retail direction.
By the end of 2019, Absolut Bank plans to increase the share of the retail loan portfolio to 70%, with the total growth of the assets of the banking group by 15%. The bank's net profit in 2018 is planned at 0.4 billion rubles, in 2019 ‒ 1.8 billion rubles. According to Kommersant, shareholders plan to capitalize the group in 2018‒2019. By 9 billion rubles.
Shareholders of Absolut Bank also decided to increase the authorized capital by 1.73 billion (32%) to 7.149 billion rubles. A total of 173.1 million shares with a face value of 10 rubles. each will be placed in favor of the structures of NPF Blagosostoyanie. The placement price is 34.66 rubles. per share. As a result, the bank can attract 6 billion rubles to its capital. The last time the bank increased its authorized capital in December 2017.
2017
Loss of 4 billion rubles at the end of the year
The bank's loss in 2017 exceeded 4 billion rubles.
Loss of 65% of capital due to the introduction of IFRS 9
Due to the introduction of a new reporting standard, IFRS 9 which required a one-time increase in deductions for impairment of loans, Absolut Bank lost 65% of its capital at the end of 2017, analysts at the rating agency wrote in their study. Fitch
The new standard introduces the concepts of "second stage loans" (uncollectible loans, but with a significant increase in credit risk) and "third stage loans" (impaired). Po to IFRS 9, Absolut Bank's total net (net of reserves) loans of the second and third stages reached 539% of capital, according to Fitch.
Absolut Bank's group includes rehabilitated, and Baltinvestbank this affects its performance, commented on Fitch's calculations at the bank. Excluding it, the ratio of loans of the second and third stages minus reserves to capital of Absolut Bank would be at the level of 90% of capital. The level of coverage with reserves of such loans at the group is higher than the market average, noted in Absolut Bank.
2016
Increase in the number of letters of credit transactions by 4.5 times
Absolut Bank increased the number of letters of credit transactions by 4.5 times in 2016. At the same time, the volume of letters of credit in mortgage transactions increased significantly over the year: their share of the total number was 92.5%.
The increase in demand for documentary transactions at Absolut Bank is primarily due to the fact that the letter of credit is a convenient form of settlement during real estate purchase and sale transactions and a good alternative to safe deposit boxes.
When applying for a mortgage at Absolut Bank, opening and servicing of the letter of credit is free of charge. The advantages of this instrument are that it relieves the risks associated with the transportation of a large amount of cash, as well as increases the security of settlements between participants in the transaction. The buyer of the property receives a guarantee that the funds will be returned to his account if the transaction for some reason did not take place or was not registered. Guarantee for a real estate seller - receiving funds after submitting documents to the bank that meet the terms of the letter of credit.
Growth of mortgage loans issued by 40% to 21 billion rubles
In 2016, Absolut Bank showed a record increase in the volume of mortgage loans issued compared to 2015. The total volume of housing loans increased by 40% and amounted to 21.2 billion rubles. In 2016, Absolut Bank clients issued 10,500 loans for the purchase of real estate. In 2015, this figure was 7,300 loans.
The mortgage program "Primary Market with State Support" was the most popular among the bank's clients. 50% of all loans issued were issued under the state program for subsidizing mortgage rates.
The leader in growth in the number of mortgage applications submitted was December. In the last month of 2016, Absolut Bank clients issued 1,414 loans and received more than 2.87 billion housing loans.
Absolut Bank remains among the leaders in the mortgage market. At this time, Absolute Bank's mortgage programs are one of the most affordable in the housing lending market, which is due to the favorable loan rate and the ability to choose a real estate object from the base of more than 500 of the most reliable developers in Russia.
Increase in the authorized capital by 40% to 4 billion rubles
In September 2016, it became known that Absolut Bank increased its authorized capital by more than 40% - from 2.975 billion to 4.186 billion rubles.
"The Board of Directors of Absolut Bank approved a decision to increase the authorized capital of the bank by more than 1.211 billion rubles by placing additional ordinary registered non-documentary shares," the company said.
Shares (121.065 million units) with a par value of 10 rubles each were placed under a closed subscription. At the same time, emission income was increased - from 9.5 billion to 13.294 billion rubles.
2013: NPF Blagosostoyanie buys the bank from Belgian KBC for 300 million euros, reducing 30% of staff
Absolut Bank intends to take significant measures to reduce costs, in particular, it is planned to reduce staff by 30% and reduce the network of branches. According to media reports, staff cuts have already begun. The chairman of the bank's board, Andrei Degtyarev, for his part, denied the 30% reduction and at the same time confirmed that the staff is not in such a volume, but will decrease. The exact number of employees subject to the reduction will become known only after the adoption of the 2014 budget.
In the financial organization itself, this is explained by the upcoming association with KIT Finance Bank. Its shareholder - the structures of NPF Blagosostoyanie - bought Absolut Bank from the Belgian group KBC in May 2013 for 300 million euros. In this regard, Absolut Bank has already partially changed the leadership staff, and in some divisions a targeted replacement of personnel is being carried out.
2010: KBC Group holds 95% stake in bank
It is one of the banks with a high degree of reliability * and TOR-30 the largest banks in Russia in terms of assets. Absolut Bank is represented in 24 regions of the country.
Shareholders: Kay-BBC International Finance Group (KBC Group, headquartered in Brussels, 95% of the shares) and International Finance Corporation (IFC, 5% of the shares).
Notes
- ↑ Absolut Bank in 2019 issued mortgages worth 52 billion rubles
- ↑ 2,0 2,1 [https://ru.investing.com/news/economy-news/article-608327 the
- ↑ " Shareholders poured 6 billion rubles into the capital of Absolut Bank
- ↑ 4,0 4,1 [https://vgudok.com/lenta/npf-blagosostoyanie-novoe-nacionalnoe-dostoyanie-zhd-hayli-laykli-vypusk-no12 NPF Blagosostoyanie
- ↑ 5,0 5,1 [https://www.kommersant.ru/doc/3683189 to the Absolut Bank
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