Unicredit Bank Unicredit

UniCredit Group

Main article: UniCredit Group

The Italian financial group is one of the largest in Europe.

Business in Russia

Main article: Foreign banks in Russia

UniCredit Bank has been operating in Russia since 1989, until the end of 2007 under the name International Moscow Bank (MMB). 100% of UniCredit Bank's voting shares are held by UniCredit Bank Austria AG, Vienna, Austria, which is part of the European UniCredit Group.

The bank specializes in corporate and private customer services, corporate finance and treasury operations. Under the name MMB YuniKredit Bank became one of the leaders in the Russian financial services market.

2024

A court in Russia recovered 448.2 million euros from Unicredit Bank at the suit of Ruskhimalliance

On June 26, 2024, the Arbitration Court of St. Petersburg and the Leningrad Region satisfied the claim of Ruskhimalliance against UniCredit Bank AG to repay the debt under bank guarantees and pay a penalty. The total amount of recovery amounted to €448.2 million.

According to the Kommersant newspaper, the process is related to a contract concluded with the German engineering company Linde. In 2021, Ruskhimalliance, the Linde consortium and the construction holding Reneissance Heavy Industries LLC signed an agreement on the construction of a gas processing plant in the Leningrad Region. According to the terms of the contract, Linde was to design, purchase and build the plant, as well as the UIO process facilities in Ust-Luga. The total cost of the project was estimated at €5.9 billion, of which RusAlliance paid €1.02 billion.

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According to the contract, the consortium of Linde GmbH and Renaissance Heavy Industries LLC will carry out work on the design, supply of equipment, construction and commissioning of gas processing facilities and technological offsite facilities of the gas processing complex in the Ust-Luga area, - said in a statement to Ruskhimalliance.

However, due to the worsening geopolitical situation and sanctions against the Russian Federation, Linde has curtailed work on the Russian market. In response, Ruskhimalliance terminated the signed contract and went to court. Guarantees under the contract with Linde were provided by Commerzbank AG, Deutsche Bank and UniCredit Bank, but all of them refused to fulfill their obligations. Banks motivated their position by the fact that payments to a Russian company would violate European sanctions. Nevertheless, the Arbitration Court of St. Petersburg and the Leningrad Region fully satisfied the claim of Ruskhimalliance^[1]

Seizure of property and accounts for 462 million euros at the suit of Gazprom's subsidiary, RusChemAlliance

In May 2024, the Arbitration Court of St. Petersburg and the Leningrad Region seized property, accounts and securities of subsidiaries of the Italian bank UniCredit operating in Russia (YuniKredit Bank) and Germany (UniCredit Bank AG), in the amount of 462.6 million euros ($503 million).

The assets were seized at the suit of Gazprom's subsidiary, RusChemAlliance.

2023: Net income - €665 million

At the end of 2023, the Russian division of the Italian banking group UniCredit demonstrated a net profit of €665 million. For comparison, a year earlier, net losses were recorded in this area at the level of €200 million. Such indicators are given in the financial report published on February 5, 2024.

European banks continue to make higher profits in Russia and pay more taxes than before the outbreak of the conflict in Ukraine

UniCredit's Russian business in 2023 provided €1.18 billion in total revenue. A year earlier, this figure was €1.26 billion. The net interest income of the Russian division is €798 million against €757 million in 2022, which corresponds to an increase of 5.4% on an annualized basis. Commission income rose by 23% - from €161 million to €198 million.

source = Yandex.Maps

The report notes that UniCredit's expenses on reserves in the Russian Federation decreased from €882 million in 2022 to €5 million in 2023. According to the results of 2023, the loan portfolio decreased to €3.2 billion from €6.6 billion euros as of the beginning of this year. Customer deposits at the end of December 2023 amounted to €7.2 billion against €8.7 billion euros in 2022.

In the current geopolitical situation, UniCredit does not exclude the possibility of curtailing business in Russia. At the same time, the head of the group, Andrea Orchel, says that UniCredit is not going to sell the Russian asset at any price. During 2023, the Russian business changed in size and was reoriented taking into account the reduction of the local market and a significant reduction in risks for foreign customers. At the same time, UniCredit emphasizes that the group is constantly looking for opportunities to reduce risks by continuing to support international customers.

In general, the global revenue of the UniCredit group at the end of 2023 amounted to €23.8 billion against €20.3 billion in 2022. Net profit increased on an annualized basis from €5.6 billion to €8.6 billion.^[2]

2022

Russian business brought a loss of €220 million

The Russian business of the Italian group UniCredit in 2022 made a net loss of approximately €220 million, while a year earlier this unit showed a net profit of about €218 million. Such data are provided in the financial report published on January 31, 2023.

The revenue of the Russian segment of UniCredit in 2022 rose by 86% and reached €1.26 billion. For comparison: a year earlier, this unit brought in €569 million. Excluding Russian business, the group's total revenue in 2022 amounted to €19.08 billion against €17.34 billion a year earlier. Thus, an increase of about 10% was recorded. Net profit rose by 64% - from €3.32 billion in 2021 to €5.45 billion in 2022.

Russian subsidiary brought UniCredit an annual loss of €200 million

The report says that since March 2022, the UniCredit group has begun to reduce risks for Russia: by the beginning of 2023, they have decreased by 66%, or about €4.1 billion. It is noted that such a result was achieved thanks to "proactive and disciplinary actions" and that UniCredit seeks to support a progressive approach to risk mitigation.

In the spring of 2022, the UniCredit group began preliminary negotiations on the sale of Russian business after "showing interest from financial organizations, as well as companies interested in obtaining a banking license in Russia." Later, UniCredit CEO Andrea Orcel announced that he sees interest in the Russian UniCredit Bank from countries that have not imposed sanctions against Russia. It was assumed that proposals could come, in particular, from organizations from China, Turkey and India.

If we talk about inorganic options, we continue to look for alternatives. I know that in addition to local interest, we are now growing interest from third countries that have not imposed sanctions on the country and are interested in potentially taking the place that Western companies are leaving, "said Orchel.[3][4]

Losses of €915 million in the 1st quarter

Russian business brought UniCredit a loss of 915 million euros in the first quarter of 2022. This is stated in the statements of the Italian financial group, which was published in early May 2022.

According to UniCredit, the company in the first quarter created 1.3 billion euros of reserves for possible losses on loans, this amount almost entirely falls on risks in Russia. According to UniCredit Chief Executive Officer Andrea Orchela, presented in the statements, it is the creation of such reserves that will allow the group to maintain stability for customers and implement the strategy until 2024, despite geopolitical and macroeconomic uncertainty.

Russian business brought UniCredit a quarterly loss of 915 million euros

As a result of losses from Russian business, the group's net profit in January-March 2022 amounted to 247 million euros against 829 million euros in profit a year earlier. Excluding the financial results of the Russian division, the bank made a net profit of 1.16 billion euros. Net revenue for the reporting period increased by 7.9%, to 4.7 billion euros.

According to Kommersant, business in Russia is becoming unprofitable for banks. The overall economic situation is worsening, economic growth is slowing, and banks are recording losses compared to their initial forecasts. In addition, some corporate clients of banks faced significant financial problems and a reduction in business volumes, Maxim Nalyutin, director and head of the group for providing services to financial sector companies of Deloitte and Touche, describes the situation.

No one understands how the situation with foreign banks will develop in Russia further. Banks fear they could be banned from the country. Although, of course, they would like to keep the business in Russia, and not sell it for nothing, "he added.[5]

Refusal to buy Otkritie Bank due to geopolitics

At the end of January 2022, UniCredit refused to buy Otkritie Bank due to geopolitics. This was stated by the chief executive officer of the Italian financial group Andrea Orchel. Read more here.

2020: Ex-head of Unicredit Bank Mikhail Alekseev became deputy chairman of the Central Bank

On October 5, 2020, the Central Bank of the Russian Federation announced the appointment of Mikhail Alekseev as Deputy Chairman of the Board. In this position, the former head of Unicredit Bank will oversee the cash circulation department and the activities of the Rosinkas Association. In addition, Alekseeva is planned to be appointed chairman of the Board of Directors of the Management Company of the Banking Sector Consolidation Fund (MC FCBS). Read more here.

2019: Ban on employees taking pictures of computer screens

On June 24, 2019, it became known that large banks in Russia banned their employees from photographing computer screens using personal mobile phones. According to RBC, restrictions were introduced at Sberbank, Unicredit Bank, Otkritie Bank and VTB. Read more here.

2017: Pooling ATM networks with Binbank

In February 2017, Binbank and YuniKredit Bank announced the merger of ATM networks. Bank customers were able to withdraw cash from the combined network of ATMs at "home" rates - without charging an additional commission.

The client can withdraw funds within the limits provided by the tariffs of the bank that issued the card. There are no additional restrictions on the amount of withdrawal at Binbank ATMs, UniCredit Bank devices provide for a one-time withdrawal limit of 150 thousand rubles.

2016: UniCredit Bank came under the direct shareholder control of UniCredit S.p.A.

On October 24, 2016, the change of the sole shareholder was registered in the register of owners of ordinary shares of UniCredit Bank JSC, as a result of which 100% of the shares in the authorized capital became the property of UniCredit S.p.A. (UniCredit S.p.A.).

This transaction was carried out as part of the transfer of a number of subsidiaries of UniCredit Group to CEE, previously under the control of the subholding company UniCredit Bank Austria AG, under the direct control of the parent company of the Group - UniCredit S.p.A.

2015: Inclusion in the list of systemically important banks of the Central Bank

In 2015, YuniKredit Bank was included in the list of systemically important banks approved by the Bank of Russia based on the methodology established by Bank of Russia Ordinance No. 3737-U of 22.07.2015 "On the Methodology for Determining Systemically Important Credit Institutions."

2013: New profit record: 24 billion rubles

At the end of 2013, YuniKredit Bank made a record profit in the entire history of its work - 24.1 billion rubles.

2012

Record high profits

UniCredit Bank's financial performance as at 31.12.2012 2012 in accordance with International Financial Reporting Standards (IFRS):

• Net profit - 17.48 billion rubles (+ 10.7% against 2011 results)
• Assets - 868.48 billion rubles (+ 12.5% compared to 2011 results)
• Capital - RUB 113.25 billion (+ 28.2% vs 2011 results)
• Loans to customers - RUB 504.20 billion (+ 6.7% vs 2011 results)
• Customer funds - RUB 503.87 bln (+ 9% vs 2011 results)

The increase in net profit is explained by the increase in net income from financial activities, which amounted to 33.34 billion rubles in 2012 (+ 3.22 billion rubles, or + 10.7% compared to 2011 results). The growth of this indicator was mainly due to an increase in operating income, which in 2012 amounted to 36.13 billion rubles. (+ 3.34 billion rubles or + 10.2% compared to the results of 2011), which grew due to growth as net interest income (23.26 billion rubles, + 1.49 billion rubles, + 6.8% in relation to the results of 2011)as well as net commission income (4.72 billion rubles, + 0.74 billion rubles, or + 18.66% compared to the same period in 2011).

Operating expenses of the Bank for 2012 amounted to 11.14 billion rubles, which is slightly higher than the results for 2011 (+ 8.3%), and is mainly due to the increase in personnel costs. At the same time, the ratio of costs to income before provisions decreased by 1.4% to the level of 33.8%.

As of 31.12.2012, UniCredit Bank's assets amounted to 868.48 billion rubles, which is an increase of 12.5% (+ 96.5 billion rubles) compared to the results of 2011, which is mainly due to the growth of the loan portfolio and funds in credit institutions.

Loans to customers net of provision as at 31.12.2012 amounted to RUB 504.20 billion (+ 6.7% vs 2011 results). The growth of the loan portfolio is mainly due to an increase in the volume of loans to retail customers, which reached 117.56 billion rubles, an increase of 34.62% compared to 2011 (+ 30.23 billion rubles). The volume of the corporate loan portfolio before the provision amounted to 385.88 billion rubles.

During 2012, YuniKredit Bank continued to maintain a good level of diversification of sources of raised funds. As of 31.12.2012, the amount of funds raised by legal entities and individuals amounted to 503.87 billion rubles. (+ 9% or + 40.95 billion rubles in relation to the results of 2011), while the balances in the accounts of corporate clients amounted to 409.31 billion rubles, an increase of 7.72% compared to the results of last year, the balances in the accounts of retail clients increased by 13.98% compared to last year and amounted to 94.56 billion rubles.

At the end of 2012, UniCredit Bank's capital increased to RUB 113.25 billion (+ RUB 24.94 billion or + 28.2% compared to 2011 results). In October 2012, the CBR registered an increase in UniCredit Bank's share capital to RUB 41.79 billion. The decision to increase the share capital was made by UniCredit Bank UniCredit Bank Austria, a UniCredit shareholder.

The total number of divisions of the Bank's network in Russia and the CIS in the 31.12.2012 was 107, including the Representative Office in the Republic of Belarus.

At the end of 2012, the number of UniCredit Bank's private clients exceeded 1.215 million, which means an increase of almost 180 thousand compared to the results of 2011.

"I am pleased to note that 2012 was another successful year for our bank," comments Mikhail Alekseev, Chairman of the Management Board of UniCredit Bank. - The bank again surpassed its own record and received the highest profit in the history of its existence - 17.48 billion rubles. In addition, it is important to note that the Bank is definitely among the most efficient Russian banks, since we managed to reduce our cost-to-income ratio to 33.8%. In 2013, we intend to continue to develop our activities in the corporate and retail segments, as well as closely monitor our expenses in order to continue to remain among the leading Russian banks. "

UniCredit Bank has opened a new office in the Nagatino i-Land business center in Moscow.

Collaboration with Qiwi

Since February 2012, UniCredit Bank clients have been able to replenish their accounts, including card accounts, as well as repay loans using the Qiwi payment service. At the service of cardholders and borrowers of the bank - more than 120 thousand. Qiwi Terminals and Qiwi Wallet^[6].

To make a payment, it is enough in the "Bank Services" section of "Qiwi Terminals" to select "YuniKredit Bank" or find "YuniKredit Bank" in the "Search" line on the "Qiwi Wallet" website, after which indicate the account number, passport number and enter the payment amount. The procedure takes no more than 2-3 minutes.

The commission for payments for repayment of loans, replenishment of cards and accounts is 1.5%, but at least 50 rubles, according to the message of UniCredit Bank.

2011: 3,700 employees in Russia and 106 units

• 106 network divisions in Russia, 1 representative office in the Republic of Belarus
• About 3,700 employees
• Over 985 thousand individual clients
• More than 22,600 legal clients
• Ratings: BBB + (Fitch), BBB (Standard & Poor's)
• Total assets: 894.07 billion rubles
• Capital: 81.88 billion rubles
• General License No. 1 of the Bank of Russia

UniCredit Bank took part in organizing the UEFA Champions League Tour presented by UniCredit in Russia. In the same year, the Bank presented an exhibition of works from its art collection and the UniCredit Group collection "People and the City."

2009: Network of offices and representative offices reaches 100

In 2009, the UniCredit Bank network reached 100 branches and representative offices, including a representative office in Minsk (Republic of Belarus).

2008: The largest bank in Russia with foreign participation

According to the results of the 3rd quarter of 2008, YuniKredit Bank took 7th place in the ranking of INTYeRFAKS-100 in terms of assets, thus becoming the largest bank in Russia with foreign participation.

2007: Bank Austria Creditanstalt - receives 100% of MMB shares, renamed to YuniKredit Bank

On 20 December 2007, the International Moscow Bank officially changed its name to YuniKredit Bank. MSTU of the Bank of Russia issued ZAO YuniKredit Bank General License No. 1 for banking operations.

In July 2007, Bank Austria Kreditanstalt (Vienna, Austria) became the owner of a 100% stake in MMB.

On May 11, 2007, at the annual meeting of MMB shareholders, a decision was made to change the name and further activities of the Bank under the UniCredit Bank brand.

2006: Car Loan Program

MMB and Autoframos (Renault's official representative in Russia), together with RCI Banque (the official bank of the Renault-Nissan alliance), launched a program to provide loans for the purchase of new cars.

2005: UniCredit gains control of the International Moscow Bank

After the merger of UniCredit Group and HVB Group, UniCredit became one of MMB's shareholders.

2001: Association with Bank Austria Creditanstalt

MMB successfully merged with Bank Austria Creditanstalt (Russia), a subsidiary of Bank Austria Creditanstalt (Vienna, Austria). The United Bank retained the name International Moscow Bank.

1995: Opening of a new bank building in Moscow

The official opening ceremony of the Bank's new building at 9 Prechistenskaya Embankment took place in Moscow.

1993: Opening a branch in St. Petersburg

In 1993, St. Petersburg hosted the official opening ceremony of the first branch of the International Moscow Bank.

1991: General License No. 1 of the Bank of Russia

MMB received the General License No. 1 of the Bank of Russia for banking operations in rubles and foreign currency.

1989: MMB - the first bank in the USSR with foreign participation

UniCredit Bank was founded as the International Moscow Bank in Moscow on 19 October 1989. Registered by the State Bank of the USSR on October 20, 1989. He became the first bank in Russia (then the USSR) with the predominant participation of foreign capital.

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