Sovcombank

General Banking License No. 963 was issued by the Central Bank of the Russian Federation. Licenses for securities transactions and depository activities issued by the Federal Securities Market Commission.

Owners

2024: Publication of shareholder structure. Among the owners are funds from Asia and the Middle East

On August 5, 2024, Sovcombank announced its shareholder structure after increasing the share of shares in free float. The owners include sovereign funds from the Russian Federation, Asia and the Middle East.

On July 23, 2024, Sovcombank announced the completion of an accelerated bookbuilding, during which the majority shareholder of Sovko Capital Partners MKAO (Sovko) and some key managers reduced their share of ownership of shares. At the same time, securities were acquired by both existing shareholders, including institutional and retail investors, and new investors, including bank customers.

As a result, the total share of Sovko, the bank's management, their affiliates, strategic investors and other shareholders holding 5% of securities or more decreased, falling below 90%. The new shareholder structure as of July 24, 2024 is as follows:

· MKAO Sovko Capital Partners and affiliates (owners of more than 5% of the shares, top management) - 82.8%;

· Sovereign funds of the Russian Federation, the Middle East and Asia - 6.7%;

· Treasury shares on the balance sheet - 0.4%;

· Others with a share of less than 1% traded on the Moscow Exchange - 10.1%.

As of December 31, 2023, Sovcombank, as noted on the website of the financial organization itself, is the third private bank of Russia in terms of RAS assets with 2 thousand offices in about 1 thousand cities of the country. The number of personnel is about 29 thousand people. The business model of Sovcombank is based on three key segments: retail services, corporate block and treasury. Sovcombank, as emphasized, is also actively developing non-bank business: insurance, leasing, factoring, digital procurement platform and electronic payments.^[1]

2017

According to the statements of the Sovcombank group, its 100% owner is SovCo Capital Partners N.V. registered in the Netherlands. At the same time, as of December 31, 2017, Sovcombank was not under the actual control of any one legal entity or individual. Sovco Capital Partners N.V. is owned by a group of Russian businessmen, including key members of the management and supervisory board of the credit institution, but is not under the control of any ultimate owner.

Sovco Capital Partners N.V. is a tax resident of the Russian Federation

As of December 2014, the key beneficiaries of the bank were:

• businessman Pavel Fuchs (24.48%),
• the founders of the bank are brothers Sergey and Dmitry Khotimsky (19.83% and 10.81%),
• Mikhail Klyukin (12.29%).

Supervisory Board

As of April 2018, the supervisory board of the bank consists of seven people: the five largest ultimate beneficiaries of the bank, one member of the bank's management board and one independent director. The Bank's Supervisory Board is headed by Mikhail Kuchment.

Performance indicators

2023: Record profit - 95 billion rubles

At the end of 2023, Sovcombank's net profit reached 95 billion rubles, which is a record figure in the entire history of the organization. For comparison, in 2022, losses of 18.58 billion rubles were demonstrated. The share capital of the bank grew by 60% - to 264 billion rubles. This is stated in the financial report released on March 15, 2024.

In 2023, our bank showed a record financial result. A third of profits were irregular. These are revenues from trading operations that are difficult to predict, "says Dmitry Gusev, chairman of the board of Sovcombank.

Net profit of Sovcombank reached 95 billion rubles

In 2023, Sovcombank's assets grew by 46% - to 3.2 trillion rubles. The dynamics is ensured by organic growth, a positive revaluation of the securities portfolio and the takeover of the large insurance company "Inlet Insurance." In 2023, the bank acquired 36 tons of gold from producers (10% of all gold mined in Russia in 2023) and sold them to individuals and exporters.

Sovcombank's retail loan portfolio in 2023 grew by 36% to 796 billion rubles. The increase was demonstrated mainly due to the growth of collateral lending: car loans rose by 65%, mortgage loans - by 36%. The corporate loan portfolio grew by 38%, amounting to 1.1 trillion rubles. Customer accounts and deposits showed an increase of 48% - up to 2.5 trillion rubles. Net interest income rose by 35% and amounted to 139 billion rubles.

Sovcombank's customer base grew to 6.5 million people as of the end of 2023 - thanks to the successful development of retail business and popular products, such as the Halva national installment plan system. The retail chain expanded to 1,886 offices and 982 points of sale: the organization's services are available to customers in 79 regions of Russia. The number of group employees increased by 13% and amounted to 29 thousand people at the end of 2023.^[2]

2022: Net profit - 14.2 billion rubles

Net profit of Sovcombank in 2022 amounted to 14.2 billion rubles, having decreased 3.2 times compared to 2021. Such data are provided in the statements of the credit institution under RAS.

As Kommersant notes, Sovcombank managed to maintain a profit that was twice as bad as its own expectations. The bank explained the lag by the fact that "a number of indulgences that had to be abandoned from January [2023] (refusal of a fixed exchange rate and paper quotes) were decided to be removed in December [2022]," the newspaper writes.

In 2023, it will be necessary to additionally create several billion reserves. At the same time, taking into account the work already carried out and the planned activities, we hope that we will not have to create reserves for ten years in a row, "said Sergei Khotimsky, First Deputy Chairman of the Board of Sovcombank.

The bank's retail portfolio in 2022 grew by 86 billion rubles - to 601 billion rubles, corporate - by 65 billion rubles, to 970 billion rubles. Interest income, having decreased, almost equaled the commission, which, on the contrary, increased significantly. Sovcombank explained this growth by expanding its business, acquiring Vostochny Bank, as well as a wide range of operations both in retail and in corporate business. Expenses on reserves increased by 7.9 billion rubles - to 55.3 billion rubles, of which 51.3 billion rubles - on loans to individuals and legal entities.

The volume of funds of individuals in accounts and deposits increased in 2022 by 30.1%, to 721 billion rubles, and in January another 9 billion rubles were added to them. The funds of companies over the year increased by 22.3%, to 1.15 trillion rubles, but in January they decreased by 52 billion rubles. According to Khotimsky, the main contribution to capital growth was made by retained earnings.^[3]

2018: Net profit 18 billion rubles

Profit from regular business increased by 21% to 23.5 billion rubles. compared to 19.5 billion rubles. in 2017, according to the information letter of Sovcombank.

'Sovcombank has maintained a strong return on capital despite lower market interest rates and intense competition with state-owned banks. Net profit for 2018 amounted to about 18 billion rubles. The reason for the decrease in profit compared to 2017 is a significant decrease in irregular income against the background of growth in income from the main business. In addition, the decline in net profit was influenced by the costs of the Halwa project. The project is developing better than our expectations, but requires initial investment, which will pay off in the next 2 years, 'the letter said.

The bank's capital grew by 34% from 85 billion rubles. as of January 1, 2018 to 114 billion rubles. as of January 31, 2018, mainly due to net profit for the year (18 billion rubles), attracting investments in the bank's capital by 10 billion rubles. and the placement of subordinated bonds.

The retail loan portfolio grew by 39% to 190 billion rubles. mainly due to low-risk collateral loans (car loans/mortgages). The corporate portfolio, including loans and bonds, grew by 20% to RUB 577 billion, mainly due to Rosevrobank joining Sovcombank in the second half of 2018.

Joining Rosevrobank. In 2018, the acquisition of 100% of Rosevrobank was completed. Managing shareholders of Rosevrobank - Ilya Brodsky and Andrei Suzdaltsev became shareholders of the combined bank. As a result of the transaction, Sovcombank's assets grew by 187 billion rubles.

Dmitry Gusev, Chairman of the Board of PJSC Sovcombank: "In 2018, the Bank was able to successfully and quickly integrate Rosevrobank's business into its structure, having received a significant synergistic effect in all key indicators. Largely thanks to this transaction, as well as a verified and effective strategy, several of the largest foreign sovereign wealth funds became shareholders of the Bank last year. The well-coordinated work of the team and an effective business model allowed us to increase capital by 34%, and assets - by 40%. Sovcombank already provides work for more than 16 thousand people and serves 4.4 million customers in 2.6 thousand offices throughout the country. "

The portfolio of Halva cards in 2018 grew from 4 to 17 billion rubles. Since the card entered the market, its portfolio has doubled every 6 months. By the end of 2018, about 2.8 million cards were issued, and Halva's partner network grew to 153 thousand stores.

The bank's customer base increased in all segments: the number of retail clients increased by 38% to 4.4 million people, clients of legal entities - by 18% to 200 thousand. The Bank's branch network grew by 10% to 2,648 offices in 75 constituent entities of the federation. Sovcombank provides access to 514 thousand small and medium-sized businesses to public procurement through its own digital platform.

Digitalization

Main article: Digitalization of Sovcombank

History

2024

Creation of the telecom company Sovkom Telecom

Public Joint Stock Company Sovcombank has created a communications subsidiary called Sovkom Telecom LLC. The company was registered on August 6, 2024, its authorized capital is ₽1 million. This is evidenced by the data of the Unified State Register of Legal Entities (USRUL). Read more here

Sovcombank created its own NPF

In June 2024, Sovcombank announced the creation of its own non-state pension fund (NPF). This step is part of the bank's strategy to enter the pension business, which was confirmed by the first deputy chairman of the bank's board, Sergei Khotimsky. Read more here.

2023

Purchase of HKF Bank

In mid-February 2024, Sovcombank announced the purchase of HKF Bank. Credit institutions did not disclose the value of the transaction. Read more here.

Carrying out IPO

Sovcombank conducted an IPO and earned 11.5 billion rubles. The credit institution told about this on December 15, 2023.

The IPO price was 11.5 rubles per share. The market capitalization of Sovcombank at the time of the start of trading amounted to 230.5 billion rubles. As part of the listing, more than 140 thousand applications were received from investors.

A total of 1 billion shares were placed. According to the results of the placement, the authorized capital of the bank will consist of approximately 20 billion shares.

According to the results of the placement, the authorized capital of Sovcombank will consist of about 20 billion shares. The share of individuals in the placement was approximately 65%, institutional investors - about 35%. Among institutional institutions, priority was given to mutual investment funds, and among private investors, the greatest allocation was received by persons who applied for the purchase of packages of over 800 shares (from 9.2 thousand rubles), bank clients with a service history of over ten years and employees of a credit institution.

Sovcombank shares are included in the first level of the listing of the Moscow Exchange under the ticker symbol SVCB and ISIN RU000A0ZZAC4. One trading lot contains 100 shares.

None of the bank's current shareholders will sell their shares as part of the IPO. Existing shareholders and affiliates will assume obligations related to the restriction on the alienation of the bank's shares within 180 days after the completion of the IPO.

Sovcombank, like many Russian companies, banks does not disclose the composition of shareholders by December 2023. Previously, the main shareholder of Sovcombank with a share of 86.5% was Sovko Capital Partners, the ultimate beneficiaries of the credit institution were top managers of the bank, financial investors and a number of sovereign wealth funds Saudi Arabia Qatar(,,,,,, and Bahrain Kuwait). Japan Russia China UAE ^[4] IPO^[5]

Tadviser interview with deputy Tadviser Albert Boris

The IT division of the Russian bank needs to work simultaneously in a number of important areas. This is an increase in business efficiency due to digitalization in compliance with the continuity and security of business processes, and the qualitative growth of the team, despite the current situation in the labor market, and the promotion of new technologies, including in the field of artificial intelligence. All this happens against the background of import substitution throughout the technological IT stack: from computer equipment to application software and cloud services.

Albert Boris, Deputy Chairman of the Board of Sovcombank, told TAdviser how the financial institution not only supports its work in these conditions, but also sets the tasks of achieving leading positions. Read more here.

Incorporation of Septem Capital Investment Company

Sovcombank has annexed the investment company Septem Capital. He turned to the corresponding entry in the Unified State Register of Legal Entities (USRUL) on March 27, 2023. " Interfax here More.

Purchase from Home Credit Bank of the Liberty installment card portfolio

In February 2023, it was announced that Sovcombank was buying a portfolio of Liberty installment cards from Home Credit Bank, which is used by about a million customers. Earlier in June 2020, Sovcombank bought a portfolio of Conscience cards from the Qiwi group. Thus, only one installment card remained in the card market.

The plan to increase the staff of the group by 10-15% to 28-29 thousand people

Sovcombank's group intends to increase its staff by about 10-15% in 2023. The number of employees of the group as of January 2023 is 25,000 people, including insurance, leasing business and Sovcombank Technologies. Thus, in 2023, the number of employees of the Sovcombank group will grow to 28,000 - 29,000 thousand people. The main areas in which the bank will strengthen hiring are IT, contact center, sales, insurance business. More than 2000 vacancies opened in Sovcombank

2022

Conclusion with Svyaznoy of a settlement agreement on a debt of 2.9 billion rubles

On December 1, 2022, the Moscow Arbitration Court published its ruling approving the settlement agreement between Sovcombank and Svyaznoy. The credit institution filed a lawsuit demanding to recover more than 2.9 billion rubles from the largest cellular retailer in Russia. Read more here.

Cancellation of the purchase of Uzagroexportbank due to sanctions

On June 27, 2022, Sovcombank announced the cancellation of the purchase of Uzagroexportbank due to the sanctions that the Russian credit institution fell under. In February 2022, the deal was suspended, and four months later it was declared invalid. Read more here.

The founders and shareholders of the bank fell under US sanctions

The founders of Sovcombank, brothers Sergei and Dmitry Khotimsky, as well as bank shareholders Mikhail Kuchment, Dmitry Gusev and Alexei Panferov, fell under US sanctions.

Disconnecting from SWIFT

In early March 2022 European Union , he disconnected from,, SWIFT banks VTB,, "Russia", and in "Opening" Novikombank Promsvyazbank Sovcombank response ВЭБ.РФ to the start of a special operation of the Russian Federation. More. here

Imposition of US sanctions against the bank

Sovcombank, which fell under sanctions on February 24, 2022, explained to depositors and customers which services became unavailable after the introduction of US sanctions.

Foreign currency transfers abroad are not available in the Halva-Sovcombank mobile application and in bank branches in connection with the imposition of sanctions.

Bank cards continue to work in Russia, but their use abroad, including on Visa and Mastercard payment systems and payment with Sovcombank cards on foreign sites, is currently unavailable due to the imposition of sanctions. You can transfer money to a card of another bank, in respect of which no restrictions have been imposed, the bank advised.

The bank advised to use Sovcombank plastic cards instead of Apple Pay, Google Pay and Samsung Pay services.

Currency exchange will not be available either in the bank's offices or in the bank's mobile applications.

Hiring former U.S. senators and congressmen to prevent sanctions

Sovcombank in early 2022 hired former US senators and congressmen to avoid being sanctioned. Sovcombank's contract with the well-known PR group Mercury Public Affairs cost $90,000 a month. As a service, Mercury Public Affairs offered the services of former senator David Viter and former Congressman Toby Moffett to Sovcombank managers.

For example, in a letter dated February 8, 2022 to Congress, ex-Senator Viter wrote that Sovcombank would become "an extremely counterproductive object of sanctions" because of its "deep ties with American and Western institutions." It didn't help. On February 24, Sovcombank was under sanctions.

Sovcombank - investor of Vita Bank

Former Deputy Chairman of the Board of Sovcombank Kirill Sokolov bought Vita Bank to create a fintech company on his license. Sovcombank will become one of the investors in the project, the press service of the credit institution said in February 2022. Read more here.

Raiffeisen Bank and co-owners of Sovcombank demand a debt of 800 million rubles from the Cypriot roots of IT outsourcer Maykor

As TAdviser found out in February 2022, the Raiff eisen Bank through the court is trying to recover the amount of about 397.7 million rubles from Maykor Outsourcing Services PLC, based in Cyprus. According to the database of legal entities Kontur.Focus, "this company is the founder of Maykor-UK. And the latter is 99.99% owned by Maykor-Service LLC, a key legal entity of Maykor, a provider of IT outsourcing services, to the basis of which the former chairman of the board of directors of Complink Sergey Sulgin was related. He also headed Maykor in 2012-2018. The share in 0.01% of Maykor-Service since 2021 belongs to Sovcombank.

This lawsuit is not the only major one for Maycore Outsourcing Services Pielsey. In January 2022, another one came to her in the Moscow Arbitration Court for a substantial amount: 430.5 million rubles are demanded by the international company Sovco Capital Partners. This is a holding structure that owns 86.5% of the bank's shares. Its main business is connected with Sovcombank. Read more here.

Cooperation with US lobbyists amid impending US sanctions

As it became known in early February 2022, Sovcombank hired American lobbyists amid impending sanctions in the United States. A Russian credit institution has enlisted employees of Mercury Public Affairs to represent it.

Lobbyists who already have experience working with Russian customers have made arguments against the introduction of any sanctions against Sovcombank, according to materials posted to the US Department of Justice. According to the first deputy chairman of the bank's board, Sergei Khotimsky, Sovcombank is not so well known abroad, unlike its larger market colleagues.

We believe it is important to communicate information about the bank and our business model. This is generally accepted practice in the United States, "the banker explained.

US Democratic senators in mid-January 2022 proposed imposing sanctions against the Russian leadership, the sovereign debt of the Russian Federation and a number of Russian financial organizations in the event of a Russian attack on Ukraine. At least three of the 12 specified Russian financial institutions - Sberbank, VTB, Gazprombank, ВЭБ.РФ, RDIF, Credit Bank of Moscow, Alfa Bank, Rosselkhozbank, Otkritie Bank, Promsvyazbank, Sovcombank, Transcapitalbank - may fall under restrictions.

The inclusion of Sovcombank in this bill has already called into question its reputation, and we would like to receive guarantees that unreasonable sanctions will not be imposed against the bank, "says a letter from Mercury Managing Director Peter Kuchik to Senior Director for International Economics and Competitiveness of the US National Security Council Peter Harrell.

Mercury, speaking about the reasons why it is not necessary to impose sanctions against Sovkobank, pointed out that 34 individuals are shareholders of the credit institution, none of them have a controlling stake, and among the owners there are no "oligarchs from the Forbes list, a politically significant person or a person persecuted by the United States," lobbyists noted.^[6]

The FAS department recognized the advertising of the Sovcombank loan with the participation of actor Sergei Bezrukov as false

No free loan was given to anyone. Customers had to issue a loan with a paid program "Financial Protection," issue a paid service "Guarantee of the minimum rate" and pay monthly with a Halva card at least 5 purchases for 10 thousand rubles.

The advertisement did not indicate that in order to receive bonuses, customers need to connect additional paid services, comply with the term of the tranche and make purchases from a bank partner. At the same time, payments were supposed to be non-cash, a commission was withdrawn for withdrawing money.

There was a trick for pensioners - people over 50 were required to enter the Halva-Sovcombank application or personal account, as well as not turn off sending push messages. The old people did not notice this and paid a large rate.

The interest rate of 0% per annum, which was announced in the advertisement, did not reflect the real rate. The bank violated the requirements of the law "On Advertising," the FAS said in January 2022.

2021

Purchase of Finex Investment Management and Finex London from former Deputy Finance Minister Andrei Vavilov

Sovcombank bought from the former First Deputy Minister of Finance Andrei Vavilov two companies registered in the UK - Finex Investment Management with a management license in Britain and Finex London - in the fall of 2021 entered the Sovcombank group. Previously, they were part of the FinEx group and through them managed traded FinEx ETFs for Russian customers.

Purchase of Siv Life Insurance Company

On December 27, 2021, it became known about the sale of the Siv Life insurance company to Sovcombank. The value of the transaction, which is planned to be closed in the first quarter of 2022, has not been announced. Read more here.

Purchase of fintech platform Best2pay for $44.9 million

At the end of October 2021, Sovcombank closed the deal to acquire Best2pay for $44.9 million. Taking into account the exchange rates at the time of the purchase, it was about the amount of 3.2 billion rubles. Read more here.

Plan of acquisition of Uzbek "Uzagroexportbank"

The Uzbek authorities intend to sign agreements with the Russian Sovcombank and Expobank on the sale of 100% of Uzbek Uzagroexportbank and Poitakht Bank by the end of the year. This became known on November 29, 2021. Read more here.

Data leakage of 150 thousand customers

In September 2021, it became known about the data leak of 150 thousand clients of Sovcombank. Data Base appeared on a specialized shadow site.

As reported RBC with reference to the founder of the data leak analysis service, DLBI Ashota Hovhannisana a file containing questionnaires of citizens who applied for a loan in 2019-2020 was made publicly available. Each of them indicates the name, phone number, passport details, address of residence, marital status, names and contacts of relatives, place of work, position, amount of income, date and time of the call from the bank's specialists, type of loan requested and client's answers during the call.

The press service of Sovcombank confirmed the data leak. As it turned out, in the spring of 2020, one of the employees of the call center was identified, who illegally copied loan applications. He planned to sell this data on the dark web. He managed to post the announcement of the sale on his Telegram channel.

He was detained and released on recognizance not to leave, and in December 2020 he was found guilty of illegally receiving and disclosing information constituting bank secrets, and sentenced to two years probation. At the same time, law enforcement officers seized copies of the lists of applications on the computer hard drive and external media.

A particular cynicism is that a repeated attempt at fraud occurred at a time when a police report had already been filed and investigative actions were actively conducted. This situation clearly demonstrates the excessive softness of Russian laws in relation to this type of crime, which is actively used by fraudsters. We believe that Russian legislation on the protection of information and trade secrets has long required tightening, - said in a statement by the co-owner and first deputy chairman of Sovcombank Sergei Khotimsky, which was distributed by the bank's press service.[7]

Rent 9 thousand square meters. m of office space in the business center "Land" in the center of Moscow

On July 12, 2021, Sovcombank announced the lease of offices with an area of ​ ​ more than 9 thousand square meters. m in the business center "Land" in the center of Moscow. Vedomosti calls this deal the largest in 2021.

The lease agreement was concluded with JSC Khortex, which is part of Aktion Development. The consultant for the deal was the consulting company Knight Frank. The term of the contract is five years.

According to Sovcombank, the purpose of the lease is to accommodate a constantly growing number of group employees in the class A office, including in the field of information technology. In total, it is planned to accommodate more than 1,000 people in the new office.

When choosing an office building, the successful location of the facility near the main building of Sovcombank in City, the high quality of both the facility itself and its engineering systems, and a reasonable and loyal landlord were important for us. At Zemlyanoye, we want to make a comfortable and attractive office for bank employees, "commented Albert Boris, Deputy Chairman of the Board of Sovcombank.

According to him, both current and new employees of Sovcombank will work in the new business center. He believes that a high-quality office will help attract the best specialists in the market.

BC "Land" is located in the Presnensky district of Moscow. The total area of ​ ​ the building is 40 thousand square meters. m, of which 26,390 square meters. m will be leased. The height of the building is 15 floors. It will be divided into office and hotel parts.

According to JLL, the previous record in the office real estate market belonged to the state government institution "Transportation Organizer," which removed 6,228 square meters. m in the business center "South Port" near Art. m. "Kozhukhovskaya." Slightly less - 6,050 sq. m - rented the company "Infotech" in the complex "Otradny," approximately 5911 sq. m occupied a network of flexible offices "Klyuch" in the business center "Iskra" on Leningradsky Prospekt.^[8]

Purchase of 100% of Vostochny Capital Management Company

At the end of May 2021, Sovcombank closed the deal to acquire 100% of Vostochny Capital Management Company from Modulbank. Thanks to this transaction, the buyer intends to develop an asset management business. Its participants did not voice the financial and other terms of the agreement. Read more here.

Bank "Vostochny" when selling Sovcombank is estimated at 11 billion rubles

On May 20, 2021, it became known about the assessment of Vostochny Bank as part of a deal to sell it to Sovcombank. Read more here.

Purchase of NFC

In May 2021, Sovcombank agreed to purchase the NFK factoring group from the financial corporation (FC) NIKOIL Lyudmila Kogan, the widow of businessman Vladimir Kogan. A binding agreement has been signed between the parties. The assets were taken for reorganization together with Uralsib Bank, but now they are being sold off. Read more here.

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Purchase of Eurasian Bank

On December 4, 2020, Sovcombank announced the purchase of a 100% stake in the Russian subsidiary of the Kazakh Eurasian Bank JSC. The parties did not disclose the financial component of the transaction. Read more here.

The brand of Vostochny Bank will cease to exist after the takeover by Sovcombank

At the end of April 2021, the bank's brand East"" will cease to exist after the takeover by Sovcombank. This was announced by the co-owner and first deputy chairman of Sovcombank. Explaining Sergey Khotimsky this decision, he noted that "investing in two brands is expensive." More. here

Contribution of 7 billion rubles to the capital of Vostochny Bank

On April 8, 2021, Sovcombank announced the closure of the acquisition of Vostochny Bank and announced the introduction of 7 billion rubles of its own funds into its capital. This measure will allow Vostochny with a large margin to fulfill all capital standards, taking into account the allowances recommended by the Central Bank. Vostochny fully complies with all regulatory capital adequacy standards, Sovcombank explained. Read more here.

Purchase of Vostochny Bank

On March 25, 2021, Sovcombank announced the purchase of Vostochny Bank. The transaction, the cost of which its participants did not disclose (it is only noted that it takes place on market terms), is planned to be closed within a few weeks after receiving permits from the Central Bank of the Russian Federation and the FAS. Read more here.

The court invalidated the sale of the bank "Let's go!" To Sovcombank

On January 12, 2021, the Moscow Arbitration Court invalidated the sale of Let's Go! Sovcombank, having satisfied the claim of Avtocenter LLC and Transforvardingvostok LLC. Read more here.

2020

Purchase of Oney Bank from retailer "Auchan"

On December 31, 2020, Sovcombank announced the purchase of Oney Bank, the development of which was previously carried out by the Auchan grocery retailer. The value of the transaction was not disclosed. Read more here.

Purchase of MetLife Insurance Company

In early December 2020, Sovcombank announced the purchase of the MetLife insurance company. The transaction, the cost of which is not disclosed due to the provisions of the confidentiality agreement, is planned to be closed in the first quarter of 2021 after receiving approvals from the Central Bank of the Russian Federation and the Federal Antimonopoly Service. Read more here.

Merger with Volga-Caspian Joint Stock Bank

In November 2020, it became known about the accession of the Astrakhan Volga-Caspian Joint-Stock Bank (VKAbank) to Sovcombank. The corresponding decision was made by the shareholders of both credit institutions. Read more here.

Inclusion by the Bank of Russia in the list of systemically important credit institutions

On October 29, 2020, the Bank of Russia published a list of systemically important credit institutions on its website, which included Sovcombank for the first time. Now there are 12 credit institutions on the list.

Sovcombank was added to the list taking into account a number of factors, including the size of the credit institution. The bank's share was about 1.5% in the assets of the banking sector in 01.10.2020. g.

"Recognition of systemic importance for us is the result of the successful and high-quality growth of our business in recent years. And, of course, this is an increase in the bank's responsibility to its customers, partners and the regulator. That is why over the past few years, the Bank has been fulfilling all capital and liquidity requirements and standards with a margin, "said Dmitry Gusev, Chairman of the Board of Sovcombank.

X5 Retail Group and Sovcombank divided the Halva postamate project and ceased to cooperate

On October 12, 2020, it became known about the decision of X5 Retail Group and Sovcombank to stop cooperation on the Halva network of checkpoints: the operating company and software will be transferred to the bank, and the retailer will reserve some of the checkpoints. Read more here.

Transfer of employees to work with accommodation in the office

At the end of April 2020, Russian banks began to transfer employees to work with accommodation in offices. Sovcombank and Zenit are the first to introduce such an opportunity. Banks promise increased salaries and bonuses for this. Read more here.

Sovcombank consolidated 100% of the shares of the Sollers-Finance leasing company

For half of the Sollers-Finance leasing company, Sovcombank paid 1.2 billion rubles. As a result of the transaction, the bank consolidated 100% of the shares of the leasing company.

The company's valuation turned out to be the lowest, based on well-known transactions in the leasing market. The discount could be provided by the relatively small size of the company itself, as well as the concentration of its funding on the bank itself. The transition of Sollers-Finance to the bank reflects the emerging tendency for credit institutions to enter more marginal areas, as well as the increased sensitivity of leasing companies to the cost of funding, the cheapening of which can be achieved at the expense of the reference bank.

The bank bought a 50% stake from the Sollers automaker Vadim Shvetsov. The acquisition price of Sollers-Finance corresponds to 4.2 net profit (Net Income, NI) of the leasing company for the year, based on IFRS for mid-2019. Read more here.

Completion of acquisition of 99.99% of Liberty Insurance shares

In December 2016, Sovcombank announced the signing of a binding agreement with property and accident insurer Liberty Mutual Group to acquire Liberty Insurance (JSC), a Russian company of Liberty Mutual^[9]. The transaction was closed in February 2020, as a result of which the bank acquired a 99.99% stake in the insurance company. Read more here.

Entry of Sovcombank representatives into the board of directors of Just AI

On January 23, 2020, Just AI, a developer of conversational artificial intelligence technologies, announced the closure of transactions with strategic partners - Sovcombank PJSC and MTS PJSC. The combined share of investors in Just AI's capital amounted to 22.5% with the company's total market valuation of $40 million. Representatives of MTS and Sovcombank joined the Just AI Board of Directors as observers. Read more Here.

2019

Criminal investigation officers found 8 million rubles stolen from Sovcombank

In early October 2019, a raider with a pistol robbed Sovcombank and took two number packages prepared for collection. He managed to spend a quarter of the amount - he bought a BMW X5, a Quando wristwatch, two Huawei and Samsung phones. The rest remained intact in bank packages. I didn't have to look for him for a long time - he lived 5 km from the bank's office.

Sovcombank invested in the developer of robotization services for contact centers

In April 2019, Sovcombank announced the purchase of 25% of Aviation Communications Technologies (ATC). Sovcombank acts exclusively as a financial investor, and will not participate in the operational management of the company. Read more here.

2018

GMCS and BTE joining Sovcombank

In October 2018, GMCS, a company engaged in the implementation of business solutions and software development, left Maykor and joined the Sovcombank group, told TAdviser in GMCS. The Bank acquired a 100% stake in GMCS Management from GI, a Cyprus-based company. Um. Xi. Es. Limited. " The transaction amount amounted to 500 million rubles.

Since November 2018, Sovcombank has also been listed with a share of about 75% of the authorized capital as a co-founder of BTE, which specializes in service support and supply of ATMs, POS terminals, and cash equipment. Read more here.

Plans to buy a minority stake in the bank by the Russian-Chinese Investment Fund

On June 7, 2018, it became known that the Russian-Chinese Investment Fund (created by RDIF and China Investment Corporation) plans to invest in Sovcombank, this should be announced on June 08 as part of the visit of Russian President Vladimir Putin to China, a source familiar with the materials for the visit told Interfax.

We are talking about the acquisition of a minority stake, the agency's interlocutor said. He did not disclose the amount of investment. The preparation of the deal on the investment of RCIF in Sovcombank was confirmed to the agency by another source familiar with its discussion.

Purchase of the card operator "Halva" - "Sovcomkard" - for 1.1 billion rubles

On April 5, 2018, it became known that Sovcombank received control over the Halva bank card operator, Sovcomkard. The amount of the transaction, as a result of which the bank acquired Sovcomkard in 100% ownership, amounted to 1.106 billion rubles, follows from the statements of the credit institution.

"In accordance with the decision of the supervisory board of the [Sovcombank] group in February 2018, Sovcombank acquired 100% of its shares in Sovcomcard LLC from third parties for 1 106 million rubles," the statements said.

Sovcomkard was established in 2017 to develop the Halva installment card project and is the copyright holder of the Halva trademark in the Russian Federation. The project began work in March, the bank's expenses on its advertising amounted to 997 million rubles in 2017^[10]

As of April 2018, the assessment of the fair value of identifiable net assets and liabilities of Sovcomkard LLC has not yet been completed, the statement says.

16th place in terms of assets in Russia - 689 billion rubles

According to the results of the first quarter of 2018, Sovcombank took 14th place in terms of assets in the Interfax-100 ranking prepared by Interfax-CEA.

According to the reporting published on the Central Bank website, as of April 2018, the bank ranks 16th in terms of assets (689 billion rubles), the capital of the credit institution is 70 billion rubles.

The bank's service network includes 2,418 offices (including 2,087 mini-offices) located in 74 constituent entities of the Russian Federation, as well as 4,119 ATMs and cash reception terminals.

The Bank is one of the leaders of the debt market in the field of organizing bond issues, is one of the top 10 car loan banks, and also ranks 3rd in terms of loans to constituent entities of the Russian Federation and municipalities.

The Group serves 2.7 million borrowers (138.3 billion rubles) and 0.5 million depositors (301.5 billion rubles), as well as 170 thousand legal entities (loan portfolio - 80 billion rubles, deposit portfolio - 118, 4 billion rubles). The number of employees is 11,480 people.

Sovcombank provides work for more than 11.5 thousand people.

The reporting on IFRS Sovcombank for 2018 is audited by an international audit company (Ernst & Young Ernst & Young).

FAS approved Sovcombank's application for the purchase of 54.67% of Rosevrobank shares

The Federal Antimonopoly Service of Russia (FAS) approved Sovcombank's application for the purchase of 54.67% of Rosevrobank's shares. This is stated in the materials of the department. At the moment, Sovcombank owns 45.34% of Rosevrobank.

"FAS considered a petition to acquire PJSC Sovcombank 54.67% of the voting shares of JSCB Rosevrobank... and decided to satisfy this petition, "the document says

.

Until the end of 2018, credit organizations will carry out banking activities separately from each other, said Dmitry Gusev, CEO of Sovcombank. And after the merger, the bank is likely to work on Sovcombank licenses, but the integration plan has not yet been determined - a team of specialists from two banks will deal with it, he said. Rosevrobank after the merger will become the core of corporate business, Gusev explained.

The value of the transaction was not disclosed.

As of February 1, 2018, Sovcombank's assets were estimated at 708.9 billion rubles, Rosevrobank - 204.75 billion rubles.

Agreement to join Rosevrobank reached

In March 2018, shareholders of Sovcombank and RosEuroBank reached an agreement in principle on the merger of banks. The assets of the combined banking group will amount to more than 1 trillion rubles, capital will exceed 100 billion rubles, the press service of Sovcombank reported. Analysts believe that the combined bank will enter the top 3 private banks in Russia in terms of assets and capital, the press service added.

As of February 1, 2018, Sovcombank's assets were estimated at 708.9 billion rubles.

Increase in share in Rosevrobank to 45%

On January 30, 2018, it became known that Sovcombank closed the transaction on the acquisition of 11% of Rosevrobank from the European Bank for Reconstruction and Development (EBRD), increasing its share to 45%, Sovcombank said. The cost of the package has not been disclosed.

"Investments in Rosevrobank give a consistently high dividend income and an increase in value," the bank commented on the completion of the transaction with reference to the head of the board of Sovcombank Dmitry Gusev.

Sovcombank tentatively estimates the net profit of Rosevrobank in 2017 at about 5 billion rubles, expecting that in total this bank will send about 2 billion rubles to dividends.

In 2017, representatives of both banks did not rule out the merger.

2017

Profit 29.5 billion rubles, capital growth by 34% to 85 billion rubles

Net profit of PJSC Sovcombank for 2017 under IFRS amounted to 29.5 billion rubles, and capital grew by 34% to 85 billion rubles. Return on equity (ROE) was 40% in 2017 (41% in 2016).

The bank's assets grew by 22% in 2017, mainly due to the growth of the securities portfolio - by 22%, as well as the growth of the loan portfolio - by 12%. As of December 31, 2017, assets amounted to 689 billion rubles.

Net profit for 2017 decreased by 12% compared to net profit for 2016 due to a smaller revaluation of the securities portfolio in 2017 (RUB 12 billion in 2017 compared to RUB 17 billion in 2016).

Net profit from the regular banking business (i.e. excluding non-recurring income) increased in 2017 by 19% to 20 billion rubles compared to 16 billion rubles in 2016. The growth of this indicator corresponds to the growth of assets. Sovcombank managed to maintain a high profitability of the business, despite a decrease in interest rates on the market. The growth of net interest income in 2017 amounted to 19% (this figure increased from 28 billion rubles in 2016 to 33 billion rubles in 2017), and net commission income - by 41% in 2017 (an increase from 13 billion rubles in 2016 to 18 billion rubles in 2017).

The cost of creating provisions for the loan portfolio decreased in 2017 to 4 billion rubles. from 5 billion rubles. in 2016, and the cost of risk in percentage terms in 2017 decreased to 1.7% (in 2016 - 2.3%). Coverage of bad loans with created reserves increased from 125% in 2016 to 141% in 2017.

Sergey Khotimsky, First Deputy Chairman of the Board of Sovcombank PJSC: "At the end of 2017, we note with satisfaction a significant increase in profit from regular operations, including interest and commission income in the retail business. In the market for collateral lending to individuals, the bank entered the top five largest car loan banks and the top 20 mortgage banks, while improving the quality of the loan portfolio. This allowed to maintain the high growth rates of the bank's assets and capital. "

In 2017, three rating agencies upgraded Sovcombank's credit ratings.

In July 2017, Moody's upgraded Sovcombank's credit rating to Ba3 on an international scale due to "consistently high financial results and strengthening the bank's business profile."

In October 2017, ACRA raised the bank's credit rating to "A" on the national scale. The agency justified the increase in the credit rating "the consistently high quality of Sovcombank's assets throughout the economic cycle."

In November 2017, S&P upgraded Sovcombank's credit rating to BB- on an international scale due to "an increase in the bank's market share and increased business diversification," as well as "stronger financial indicators than comparable banks, despite unfavorable macroeconomic conditions in Russia."

In September 2017, Fitch Ratings noted Sovcombank's "strong financial performance, in particular, its long history of maintaining assets of high quality and high profitability" and confirmed the bank's credit rating at "BB-." In March 2018, the agency improved its outlook on the Bank's rating from stable to positive.

Dmitry Gusev, Chairman of the Board of PJSC Sovcombank: "In recent years, we have managed to assemble a unique team at the Bank, capable of simultaneously solving three most important tasks: profitability, transparency and diversification of assets. Despite the difficult external environment, the bank continues to develop effectively and transparently. Thanks to the verified strategy, following the results of the past year, we were able to increase capital by 34%, and assets - by 21%. "

2100 branches in 75 regions of the Russian Federation

At the end of 2017, Sovcombank PJSC is one of the top 20 Russian banks in terms of net assets, has a network of more than 2,100 branches and offices in 75 regions of Russia. The Bank is one of the leaders of the debt market in the field of organizing bond issues, is one of the top 10 car loan banks, and also ranks 3rd in terms of loans to constituent entities of the Russian Federation and municipalities.

Increase in share in Rosevrobank to 34.34%

In December 2017, it became known that Sovcombank increased its stake in Rosevrobank, follows from the materials of the bank's disclosure. Now he controls 34.34% of Rosevrobank (24.34% - directly, 10% - through REG Holding (unites Russian shareholders of Rosevrobank).

Sovcombank bought a 5.7% stake, the German investment fund DEG was the seller, Dmitry Gusev transferred through the press service of the Board of Directors of Sovcombank. He refused to name the amount of the transaction, adding that the purchase took place at the bank's own expense. Gusev admitted that in 2018 Sovcombank will buy a stake in Rosevrobank from the EBRD.

Earlier, Sovcombank received permission from the FAS to increase its stake in Rosevrobank. Then Gusev did not rule out that Sovcombank could buy out shares from the EBRD and DEG together with the founders of Rosevrobank.

"In connection with the sanctions, American, European investors often do not have the opportunity to remain among the shareholders of Russian issuers," the press service of Rosevrobank said.

There is currently no agreement on the merger of banks, added to Rosevrobank, but such a development of events is possible in the future.

Sale of 10% shares in RTI Group

In December 2017, it became known that Sovcombank reduced its stake in the capital of the largest Russian holding in the field of defense and microelectronic solutions - OJSC RTI Group - from 10% to 0%. This is stated in the materials of the bank. The date of termination of the reason to dispose of shares is indicated on December 25.

In April 2016, AFK Sistema sold 10% of the RTI Group holding to Sovcombank. Now Sistema owns 71.7% of RTI Group.

Sale of 24% of Modulbank to Artem Avetisyan

On December 18, 2017, it became known that Sovcombank sold 24% of Modulbank, bought out in the spring of 2016 from Uniastrum Bank. As the first deputy chairman of the board of Sovcombank Sergei Khotimsky told Interfax, the funds from the sale are planned to be used to replenish the bank's capital. "Sold to Artem Avetisyan. We do not disclose the price, "he said.

Sovcombank in March 2016 bought from Uniastrum Bank a 9.99% stake in Modulbank for 415.5 million rubles. In May 2016, Sovcombank acquired another 14.01% of Modulbank from Uniastrum Bank for 582.7 million rubles, increasing its share in it to 24%.

Increase in share in Rosevrobank to 29%

In October 2017, Sovcombank announced the purchase of a 9.16% stake in Rosevrobank, thus increasing its stake to 29%. The deal was closed last week, the bank said. The stake was sold by REG Holding, the holding structure of the REB, which unites the Russian shareholders of the bank, explained through the representative of the Board of Directors of Sovcombank Dmitry Gusev.

The amount of the transaction was "close to capital," Gusev reported through the press service. The press service of Rosevrobank also answered the question about the amount of the transaction. As of September 1, 2017, Rosevrobank's own funds amounted to 33.4 billion rubles, which means that the sale price could be about 3 billion rubles.

Halva Installment Card Launch

In 2017, Sovcombank introduced a new product on the Russian lending market - the Halva installment plan card, which combines the principles of a classic credit card and a consumer commodity loan.

2016

Plans for an IPO on the Moscow Exchange

In June 2016, it was reported that Sovcombank in the future is considering the possibility of an IPO on the Moscow Exchange.

Purchase of the "daughter" of the Turkish Garanti Bank in the Russian Federation for $40 million

Turkish bank Garanti announced the sale of a subsidiary of CB Garanti Bank - Moscow to Sovcombank for $40.455 million.

According to media reports, Garanti will sell 1,729 shares, 99.94% of the authorized capital of the commercial bank Garanti Bank - Moscow, and one share representing 0.04% of the authorized capital of the Russian subsidiary owned by Garanti ^[11].

The transfer of shares will be completed after receiving regulatory approval. The transaction can be adjusted before the completion of the formalities with the transfer of shares.

Purchase of GE Money Bank, Metcombank and the Russian branch of Nordea

In 2014-2016, Sovcombank also closed transactions on the acquisition and integration of GE Money Bank banks and Vologda Metcombank, and also bought out the retail business of the Russian subsidiary bank of the Scandinavian group Nordea.

2015: Issuance of a loan of 4 billion rubles Softline for 5 years

In January 2016, Softline announced the raising of financing from Sovcombank in the form of a mezzanine loan for 4 billion rubles for a period of 5 years. More details at Softline_.D0.BF.D1.80.D0.B8.D0.B2.D0.BB.D0.B5.D0.BA_4_.D0.BC.D0.BB.D1.80.D0.B4_.D1.80.D1.83.D0.B1.D0.BB.D0.B5.D0.B9_.D0.B8_.D0.B3.D0.BE.D1.82.D0.BE.D0.B2.D0.B8.D1.82.D1.81.D1.8F_.D0.BA_IPO link.

2014: Acquisition of Russian subsidiary ICICI Bank

In 2014, Sovcombank acquired AiSiSiAi Bank Eurasia, a subsidiary of the Indian ICICI Bank.

As of 2014, Sovcombank is one of the top 50 largest Russian banks in terms of assets. The bank specializes in retail services for pensioners, its network consists of more than 2 thousand offices in 35 regions of Russia.

2012: Nikolai Zhuravlev's acquaintances help the bank a lot

The future senator Nikolai Zhuravlev was largely the generator of the successful development of the bank - he was friends with the governor of the Kostroma region Sitnikov (his son Konstantin works for the Sovcombank charity fund for 2019) and the family of Viktor Khristenko-Tatyana Golikova. Zhuravlev met them thanks to the fact that he owned the Avtodetal plant and worked with Vadim Shvetsov's Sollers (they had a joint venture). Shvetsov was the husband of Khristenko's daughter.

State-owned clients appeared in the bank - VEB Leasing, FLK and pharmaceutical "R-Pharm" Alexei Repik.

2004: Obtaining a general license of the Central Bank

In 2004, Sovcombank received the Bank of Russia General Banking License (No. 963).

2003: Renaming as Sovcombank and transferring head office to Kostroma

In 2003, the head office was moved to the city of Kostroma, and the bank itself was renamed Sovcombank.

1990: Establishment of Buikombank in Kostroma

In 1990, Buikombank was founded in the city of Buoy, Kostroma Region.

Notes