Globex

The GLOBEX bank is the Russian universal bank performing all main types of the banking activities presented at the market of financial services. One of the main activities of Bank was crediting of the enterprises of the real sector of economy. In 2018 it is attached to the Sviaz-Bank.

Performance Indicators

2017

Loss according to IFRS of 2.4 billion rub

Net loss of Globex bank for 2017 according to IFRS was reduced by 4.4 times in comparison with 2016 and made 2.4 billion rubles, follows from the report of credit institution.

Interest income of bank decreased by 26.3%, to the level of 11.6 billion rubles. Net commission income grew by 1.7%, having been 877.8 million rubles. Not interest income fell by 1.3 times and were 2.7 billion rubles^[1].

Interest expenses were cut down by 2.1 times, to the level of 6.9 billion rubles. Tax expenses on profit made 332.9 million rubles, having decreased by 5.2%.

Assets of bank fell by 1.5 times and were 104.6 billion rubles, obligations — by 1.6 times, to the level of 86.8 billion rubles.

The profit of 800 million rub under RAS

In April, 2018 the Globex bank summed up the preliminary results of activities for RAS for 2017. The profit of bank after taxation according to the results of reporting period exceeded 800 million rubles.

The operational result before creation of reserves and taxation for 2017 was more than 2 billion rubles. The indicator of the relation of operating expenses of bank to operating income was reduced from 105% in 2016 to 63% in the 2017th. Also the bank achieved decrease by 32% of a share of arrears in the loan portfolio in comparison with a similar indicator of 2016.

"The difficult task was set for us: improve quality of the loan portfolio and get a profit. This result was achieved due to increase in operational efficiency of bank and dense interaction of a command which showed capability to cope with the most difficult situations and to find optimal solutions. Thanks to it we managed to achieve this goal" — the president of Globex Valery Ovsyannikov told.

The volume of own means of bank increased from 19.3 billion rubles for January 1, 2017 up to 20.2 billion for January 1 of the 2018th.

History

2018

The Sviaz-Bank completes accession of Globex Bank

In November, 2018 PJSC JSB Svyaz-bank completed process of reorganization in the form of accession of JSC Globex Bank and became his legal successor by all rights and duties", says bank.

Branches of Globex Bank were included into network of the Sviaz-Bank and continue to work to the same addresses, the report says. Thus, now the Sviaz-Bank services clients in 64 cities of Russia.

"The united bank provides competitive services and services due to synergy, including integration of business of banks and regional network. Thanks to consolidation for us and our clients new opportunities open", – the president-chairman of the board of bank Denis Nozdrachev whose words are cited in the press release noted[2].

Before 98.94% of bank shares belonged to the "Development Bank and Foreign Economic Activity (Vnesheconombank)" state corporation.

The head of VEB Sergey Gorkov said that consolidation based on the Sviaz-Bank is going to be completed in 2018, and to sell it — no later than 2020.

Start of accession of bank to the Sviaz-Bank

In August, 2018 Vnesheconombank started the procedure of accession of Globex bank to the Sviaz-Bank: the stocks of Globex owned by VEB will be converted into actions of the Sviaz-Bank, says state corporation.

Earlier the prime minister of the Russian Federation Dmitry Medvedev said that the supervisory board of VEB will consider specific parameters of an exit from group of VEB of subsidiary banks – Globex and the Sviaz-Bank.

"Taking into account earlier made decisions the termination of participation of Vnesheconombank in authorized capital of JSC Globex Bank by converting of the stocks of JSC Globex Bank owned by VEB in the stock of PJSC JSB Svyaz-bank was approved — noted in VEB. Reorganization of subsidiary banks is performed in the form of accession of Globex Bank to Svyaz-bank, it is specified in the press release.

Decrease in authorized capital from 15 to 10 billion rub

In July, 2018 it became known that the Globex bank lowered authorized capital from  15  billion to   10 billion rubles. Authorized capital decreases by reduction of share par value from  33.41  rubles to  22.3  rubles for  an action.

"Reduce authorized capital  of JSC Globex Bank to     size 10,014,599,246.4  (ten billion fourteen million five hundred ninety nine thousand two hundred forty six  rubles 40 kopeks) by reduction of nominal value of ordinary nominal uncertificated shares  in number of   449,085,168    pieces (four hundred forty nine million eighty five thousand hundred sixty eight) pieces with a nominal value of 33.41 rubles (thirty three   rubles 41 kopeks) for     an action with a total nominal value of 15,003,935,462, 88  ( fifteen billion three million nine hundred thirty five thousand four hundred sixty two   rubles 88 kopeks)"  , the document says.

Globex takes the 56th place among banks of the Russian Federation, according to RIA Rating for April 1, 2018.

The plan of consolidation with Sviaz-Bank

In March, 2018 Vnesheconombank (VEB) refused the idea to sell child Globex and the Sviaz-Bank after their consolidation — even the united bank will not attract interest in the market because of the large volume of troubled and non-core assets, the Kommersant newspaper with reference to sources wrote.

The board of VEB approved merge of "daughters" — Globex and the Sviaz-Bank — and took out this question on the nearest supervisory board. After a number of unsuccessful attempts to sell these banks of VEB decided to refuse their output from under the control, told the newspaper the sources close to state corporation, and in the financial and economic block of the government.

"Changes will be made to the strategy of VEB: banks will be until the end of the year joint on the license of the Sviaz-Bank and are transferred to category "preserving in group", - reported one of sources.

Sell banks on one also it did not turn out though applicants were. Among those who were interested in purchase of banks — NPF Blagosostoyaniye structures of Rosneft, Alfa-Bank, UK "Leader" (manages pension reserves of Gazfond), the co-owner of Vostochny bank Artem Avetisyan and Kazkommertsbank. The most serious interest, according to newspaper sources, was shown by structures of Rosneft and Avetisyan. The transaction with Avetisyan who was going to buy banks through East for 33 billion rubles in the summer of 2017 was even approved by credit committee of VEB. However the temporary administration was soon entered into Yugra bank which lost the license later, and Globex issued to the companies of its owner Alexey Hotin the credits of 20 billion rubles.

At the same time against the background of constantly exaggerated information on sale of banks for 2016-2017 assets of Globex decreased by 2.5 time, and the Sviaz-Bank — by 27%. According to sources of the newspaper, the Central Bank at the end of 2017 estimated the volume of troubled assets in Globex at 64.4 billion rubles that makes nearly a half of all assets of bank if to proceed from the reporting under the Russian standards.

The press service of VEB nevertheless insists that continue to look for sales opportunities of subsidiary banks as "management of commercial banks is not strategic direction of work" state corporations, and call consolidation only "possible". According to the source close to state corporation, it is planned that the united bank will service among other things financial flows and projects of VEB.

The head of VEB of that time Sergey Gorkov said that consolidation based on the Sviaz-Bank is going to be completed in 2018, and to sell — no later than 2020.

Among massive faults of merge there is a debt of VEB to the Central Bank which arose because Globex and the Sviaz-Bank was at state corporation on sanitation. According to edition sources, a year ago at a meeting in the Central Bank the agreement on converting of these means in the non-term soft subordinated loan was reached, but at a sales term of these banks in the market. Whether will agree the regulator to converting according to the new scheme, so far it is unknown.

Creation of a system of protection of investments into ICO

On February 19, 2018 Globex (subsidiary bank of VEB state corporation) and "Russian Association of Cryptocurrencies and Blockchain" (RACB) announced creation together with the Internet platform CrowdHub of a system of protection of investments into ICO — placements of tokens by the Russian companies. It is supposed that the first system of guarantees of investments into cryptocurrencies will appear in Russia in 2018. Read more here.

2017

Cyber attack through SWIFT

The Globex subsidiary bank under control of Vnesheconombank (VEB) was the first bank affected by cyber attack with withdrawal of funds via the SWIFT system, Kommersant with reference to a source reports.

Withdrawal of funds is not connected with the international interbank information transmission system and making payments (SWIFT), the reason in vulnerability of information security of the tank. 

According to Vedomosti, cyberswindlers stole the amount equivalent to $1 million from Globex. The president of financial institution Valery Ovsyannikov confirmed: "There was an attempt of the attack last week". He also emphasized that "means of clients did not suffer".

Hackers stole $1 million from Globex bank

The Russian national association SWIFT ("Rossvift") is not sure, hackers could get into infrastructure of SWIFT or cracked the automated banking system. There specified that banks of the Russian Federation can undergo cyber attacks as here, unlike the whole world, SWIFT works through the intermediary — Alliance Factors company.

This is the only partner of SWIFT in Russia and the CIS, it has access to all confidential information of users, including the IP addresses and also to critical infrastructure. SWIFT already promised to establish cooperation with the Russian banks directly, however date of failure from services of the intermediary was transferred all the time. By December, 2017 it is about the end of the 2018th, specified in "Rossvift".

The representative of SWIFT said to Vedomosti on December 19, 2017 that  still there was no proof that someone managed to get unauthorized access to a system — the company pays much attention to cyber security. According to  the security consultant of Cisco  Alexey Lukatsky, it is not  about cracking of SWIFT, and about penetration of hackers into a banking computer network  from which it is possible to send payments, including through SWIFT.^[3]

The Central Bank recommended to VEB not to sell Globex Bank

At the beginning of July, 2017 it became known that Vnesheconombank should postpone sale of two subsidiary banks — the Sviaz-Bank and Globex. The Central Bank suggested to leave them to state corporation. Risks sell them not to that buyer are big, besides to sell them on the terms of state corporation impracticablly, Vedomosti wrote.

"the Central Bank considers option to leave both banks in ownership of VEB as is afraid that as a result of their sale to private players their risks can grow" — the banker studying assets of state corporation for the purpose of purchase says.

At this time the command of VEB, clear for the regulator, and change of the owner — risk operates banks, told the edition of people, close to VEB. Besides, the regulator and VEB understand that banks actually "could not be sold" as it is necessary to invest in their development seriously. Therefore now a task — to bring banks to profitability, and already then to look for buyers.

In 2017 it is expected that both banks will show operating profit, however Globex for June, 2017 continues to show a loss.

2012: the 28th place by the amount of assets in Russia

The Globex bank according to the results of the first half of the year 2012 takes the 28th place by the amount of assets and the 42nd place on the amount of funds of natural persons in the ranking Interfax-100 prepared by Interfax-CEA.

2010: 52 departments in Russia

The network of bank departments GLOBEX in Moscow, St. Petersburg, Nizhny Novgorod, Novosibirsk, Rostov-on-Don, Samara, Perm, Kemerovo and Krasnodar contains 52 offices.

For 2010 the bank had the following ratings of Fitch: long-term and short-term issuer default ratings in foreign currency "BB/B", the "D/E" individual rating, the rating of support "3" and long-term rating on a national scale of "(AA-rus)"; long-term and short-term credit ratings Standard&Poor’s "/-//B" and "ruAA-" on a national scale; credit rating AK&M "And +" on a national scale.

2008: VEB receives from the Central Bank 200 billion rubles on rescue of Globex and the Sviaz-Bank

VEB had "to rescue" Globex and the Sviaz-Bank in crisis of 2008. The state corporation then received from the Central Bank over 200 billion rubles on their financial improvement. The authorities of the Russian Federation at the beginning of 2015 recognized these assets non-core for VEB^[2].

1992: Foundation of bank

The GLOBEX bank is founded (GLOBEXBANK) in 1992.

Notes