International Financial Club JSC AKB Bank IFC

The Bank operates on the basis of 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, whose 93.4% of the 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. This fact was noticed by the head of the analytical department of the bank BKF Maxim Osadchy. The bank's loss after tax amounted to 3.4 billion rubles, follows from its quarterly reporting under RAS. The leader in losses in 2019 was the Moscow Industrial Bank (117 billion rubles), rehabilitated through the Banking Consolidation Fund, which was rehabilitated by VEB Svyaz-Bank (17 billion rubles) and Baltinvestbank (3.6 billion rubles), which is rehabilitated by Absolut Bank.

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 came from corporate loans. In the fourth quarter, IFC also became the leader among Russian banks in terms of recapitalization. Shareholders increased capital by 600 million rubles in November and by 2.45 billion rubles in December. Most likely, the reserves were accrued during a planned inspection by the regulator, which ended on January 17, 2020, suggests Osadchy. At the beginning of February 2020, the bank's capital adequacy standard (N1.0) is at a comfortable level - 16.5% with a minimum without premiums of 8%.

The press service of the bank said that the reasons for the losses are the creation of a reserve for the loan portfolio, the sale of assets at a discount, the revaluation of property not used in the main business. The bank clarified that the assistance from the shareholder was in cashless form, but in which it was not specified.

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

Over 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 step to the level of ruBB. The agency rated IFC's market positions as weak, but noted that the shareholder in previous years has repeatedly assisted the bank. In total, in 2016-2019, 10.65 billion rubles were spent on the recapitalization of the bank, follows from the calculations of Maxim Osadchy, based on Russian reporting. In addition, in the spring of 2018, the bank held an additional issue of 2.8 billion rubles.

IFC's problematic assets are partially foreign exchange loans, on which the state worsened after the devaluation of the ruble in 2014, partially - loans from large production and development companies, whose financial situation weakened, including due to the situation in the economy after 2014, says Maria Zinina, associate 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 Cypriot offshore Onexim Holdings Limited. The second major shareholder is Ekaterina Ignatova (6.5% of the shares), wife of the general director of Rostec state corporation Sergey Chemezov. IFC ranks 105th in terms of assets for the third quarter of 2019, according to the Interfax-100 rating, ^[1].

History

2022: Bank rating downgrade due to liquidity deterioration

In April 2022, International Financial Club Bank, 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 its credit rating. The agency "Expert RA" on April 18 worsened the IFC rating by two steps, to the level of "ruBB -," revising the forecast from "stable" to "negative." As noted in the agency's report, this was also due to the "weakening of the liquid position" of the bank amid 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 a 35.84% stake in International Financial Club (IFC) to Tatyana Orlova. The parties did not name the amount of the transaction.

Prokhorov left 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 a credit institution.

2016

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

2015: IFC appointed sanator of Tauride Bank

In December 2014, Tauride Bank ceased to serve customers. In February 2015, external management was introduced in the bank, in March of the same year, the IFC bank Mikhail Prokhorov was appointed sanator.

2013: Profit 1 billion rubles

IFC Bank's net profit 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, which brought a good profit for 2013. Perhaps this is due to the fact that the owners of the IFC in addition to M. Prokhorov are other businessmen^[3].

2011: Payments from Rosoboronexport to an official in Indonesia

US financial intelligence documents FinCEN which were in September 2020 with ICIJ show that the bank International Financial Club was a participant in operations between Rosoboronexport and an official from Indonesia.

In particular, hundreds of thousands of dollars went to Chinese-born businessman  Eng Jin Tjong, who is called Sujito Ng in Indonesia. He was surrounded by the former president of the country (Susilo Bambang Yudoyono) - a military man who was Minister of Energy 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 thanks 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 personally paid Sujito, 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 more than $220 000 to Sujito under "additional agreements" to the agreement of 2005, the essence of which was not disclosed. One of the banks through which this money went -  JP Morgan Chase - then canceled this transaction and returned the funds due to "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 IFC a small APR bank.

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

Participation in organizations

AKB "International Financial Club" is part of the system of compulsory deposit insurance, 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