Uralsib FC

Performance indicators

2023: IFRS profit growth by 17%, to RUB 8.2 billion

Uralsib ended 2023 with a net profit of 8.2 billion rubles, obtained from the results of work in this 12-month period. Compared to 2022, profits rose 17%. This is stated in the reporting under IFRS, which the bank disclosed in mid-April 2024.

According to Interfax, citing materials from a credit institution, its net interest income to reserves in 2023 increased by 42% compared to a year ago (to 33.3 billion rubles), after reserves - 1.6 times to 28.7 billion rubles. At the same time, net commission income decreased by 19%, amounting to 8.8 billion rubles.

source = Uralsib

Other non-interest income of the credit institution in 2023 increased by 30.5% to 7.7 billion rubles. Other non-interest expenses of the credit institution in 2023 amounted to 37.9 billion rubles and increased by 22.7% compared to the previous year.

 According to the results of 2023, the bank's assets reached 678.2 billion rubles (a decrease of 5% on an annualized basis ), the bank's capital - 116.6 billion rubles (+ 2%). By the end of 2023, Uralsib's customer accounts contained 442.8 billion rubles of funds, which is 8% less than a year earlier. The bank's loan portfolio after deducting reserves in 2023 grew by 20% and reached 373.9 billion rubles.

According to the press service of Uralsib, in 2023 the bank continued to implement a development strategy aimed at increasing business efficiency. In 2023, the  credit rating agency (ACRA) raised Uralsib's credit rating to BBB + (RU) , the NKR rating agency to A.ru , and the Expert RA rating agency assigned the bank a creditworthiness rating at ruA-, with a "positive" forecast.

Interfax notes that at the end of 2023, Uralsib took 19th place in terms of assets among Russian banks.^[1]

2022: Profit growth to RUB 12.4 billion

The bank's profit under RAS in 2022 increased 1.7 times and amounted to 12.4 billion rubles. Also, Uralsib's assets grew from 525.2 billion to 689.5 billion rubles. And capital - from 65.2 billion to 77.3 billion rubles.

2020: Decrease in profit from 12.8 billion to 173 million rubles

According to the results of work in 2020, Uralsib received a net profit of 173 million rubles, while a year earlier it was measured at 12.8 billion rubles. Such data were provided by a Russian credit institution in the consolidated financial statements under IFRS.

A significant decrease in net profit at Uralsib was associated with a high indicator in 2019, which was caused by income from one-time operations - it takes into account profit from the sale of securities from the investment portfolio, the bank said.

This is due to the application of a conservative assessment of the risks associated with the negative impact of the pandemic on the conditions of financial and economic activities, the bank said in a statement.

In 2020, Uralsib's profit decreased to 173 million rubles

By the end of 2020, Uralsib's capital amounted to 96.4 billion rubles, which is about 2 billion rubles more than a year earlier. Assets increased even more - by 60.6 billion rubles, to 505.6 billion rubles.

Despite the difficult economic conditions, in 2020 the bank continued to implement a development strategy aimed at improving business efficiency. The successful results of the bank's activities against the backdrop of the pandemic have also been confirmed in external assessments, Uraslib said.

It also follows from the bank's statements that Uralsib's interest income in 2020 amounted to 38.8 billion rubles, showing a decrease of 8.9% amid a slight decrease in loan income (-5.6%) and a significant drop in securities income (2 times). Interest expenses decreased faster (-18.6%), amounting to 16 billion rubles against the background of a reduction in interbank funding.

As a result, the bank's net interest income remained almost at last year's level, amounting to 22.8 billion rubles. Net commission income increased by 4%, amounting to 7.4 billion rubles. The net expense on operations with securities turned out to be 1.2 billion rubles. Among other things, the bank recorded a loss of 1.1 billion rubles from early repayment of loans received from the deposit insurance agency.^[2]

Informatization Uralsib

Main article: Information Technology at Uralsib Bank

History

2023

Hacking of the social network "Uralsib"

On August 3, 2023, Uralsib Bank reported a massive cyber attack that hacked its social networks. In addition, the network resources of a number of other financial organizations were affected.

It is said that in the social networks of the affected banks, the attackers posted a fake post about the 1win campaign with phishing links. With the help of this publication, scammers tried to steal customer card data for the subsequent withdrawal of money.

Fraudsters hacked Uralsib social networks and posted phishing links there

Tonight there was a hack of social networks of some banks, including ours. If you followed the link from the fake post about the action from 1win and left your card data, then for the safety of your funds we advise you to temporarily block it, - noted in the official notification of Uralsib.

The bank recommends taking protective measures as soon as possible, since cybercriminals can pay with the card of the affected client or withdraw funds from it at any time. You can block the card through a mobile application, a hotline or at a bank branch (you must have a passport with you). The fake social media post was deleted 10 minutes after it was posted.

It is extremely doubtful that one of the clients managed to use the link. Currently, we are clarifying the details and are clarifying all the circumstances of what happened. The only thing we can say at the moment is that measures to protect and restrict access to the administration of the bank's social networks will be strengthened, the Uralsib press service noted.

In the current geopolitical situation, the intensity of attacks on Russian companies and organizations, including those from the financial sector, has increased significantly. Therefore, enterprises are forced to strengthen protection and implement new security tools.^[3]

3-day DDoS attack

On March 17, 2023, Uralsib announced a protracted cyber attack on the bank's IT infrastructure, which forced the credit institution to turn off several services.

The third day there is a DDoS attack on the bank's services. Today it is especially massive. To preserve the infrastructure of the bank's electronic services, we decided to temporarily disconnect some of the service channels. We apologise for any inconvenience caused. We are actively working to repel the DDoS attack, the Uralsib press service told TASS.

Uralsib disconnected part of the services due to a powerful DDoS attack, which lasts for the third day

They also assured that customer funds are completely safe. The Bank expects to quickly restore the operation of its services in full. By 16:00 Moscow time on March 17, 2023, it was possible to go to the website of Uralsib Bank, the TAdviser journalist was convinced.

Later on March 17, 2023, Uralsib announced the restoration of all services after a powerful DDoS attack.

The attack was successfully repelled. Customer funds are completely safe, the work of all banking services has been restored in full, the message says.

On March 13, 2023, a similar situation was reported in Rosbank. The bank warned that customers may face temporary difficulties in the operation of applications, an Internet bank and a site due to the reflection of a major DDOS attack.

In February 2023, Deputy Chairman CENTRAL BANK Philippe Gabunia said that the number of DDoS attacks on financial institutions Russia in almost quadrupled. According to him, the total number of cyber threats increased by 2%. He also added that the demand for insurance in the field is increasing. Uralsib cyber security^[4]

2022

Uralsib bought out the portfolio of consumer loans of individuals of Citibank

Uralsib closed the deal to buy Citibank's consumer loan portfolio. The acquired portfolio includes consumer loans without collateral, further maintenance of which from the moment of purchase of the portfolio will be carried out at Uralsib, the bank said on December 12, 2022. Read more here.

Uralsib entered into an agreement on the purchase of Citibank's consumer loan portfolio

On October 28, 2022, Uralsib Bank entered into an agreement on the purchase of Citibank's consumer loan portfolio, two sources in the financial market told RBC.

According to one of them, we are talking about the assignment of rights to such loans, in addition, Uralsib will be able to refinance Citibank credit cards if their holders agree to this operation.

Stopping outgoing transfers in euros for legal entities due to sanctions against the background of Russia's special operation in Ukraine

In August 2022, Uralsib Bank suspended outgoing euro transfers for legal entities. The bank explained its decision "by introducing restrictions on foreign exchange transactions on the part of European correspondent banks."

2021

A bank employee bought ILI and mutual funds with the money of wealthy clients without their knowledge

An employee of the Vologda office of Uralsib invested about 348 million rubles in dubious products without the knowledge of customers. The woman performed illegal operations for three years - from November 2017 to October 2020. No employee of the department could interact with wealthy clients and the woman deceived the VIPs.

As a result, the number of victims in the case turned out to be significant - 71 people. Customers were returned only 217 million rubles, that is, less than two-thirds of the stolen.

"Irrefutable evidence was found in the defendant's home, including about 90 bank cards and PIN envelopes of victims and witnesses, and funds worth 1 million rubles were seized. The property of the accused was seized in an amount exceeding 2 million rubles, "the Investigative Department of the Investigative Committee noted in December 2021.

Sale of the central office building in St. Petersburg

In June 2021, it became known that Bank Uralsib sold the building of the central office in St. Petersburg on Engineering Street, 9 to TunnelGeoStroy LLC, which belongs to Sergei Shulzhik, co-owner of a large developer RosStroyInvest. The building was built in 1876 and is an object of cultural heritage, historically it housed the Red Cross, since 1990 - Uralsib Bank. According to experts, the value of the transaction could be about 500 million rubles.

2020: 10-year DIA loan to pay off debts owed to subordinated bond holders

Uralsib received another 1.4 billion rubles from the DIA at 0.51% for 10 years. This is compensation for payments to creditors on subordinated bonds owned by investment funds Natwest Markets (RBS bank) and Kleinwort Benson (Socgen). They won the court against the bankers.

Earlier, the DIA on the same terms allocated Uralsib 9.5 billion rubles to pay off debts to holders of subordinated bonds of the bank. In June 2017, the court satisfied the claim of VTB Austria and FIMBank against the structure of Uralsib, which issued the paper. Assistance states for the reorganization of the bank amounted to 92 billion rubles.

2019

Net profit 12.8 billion rubles

The bank's net profit for 2019 under IFRS amounted to 12.8 billion rubles, an increase of 2 times compared to 6.1 billion rubles in 2018. Net interest income decreased by 2.3% to 22.9 billion rubles against 23.5 billion rubles a year earlier. The bank's capital increased by 11.9% and amounts to 94.3 billion rubles.

Lost disputes on outstanding subordinated bonds

In September 2019, Uralsib in the London International Arbitration lost a dispute to the structures of Royal Bank of Scotland and Societe Generale on unpaid subordinated bonds for $8.6 million.

The bank wrote off the bonds in 2015 after the beginning of the reorganization of the bank by Vladimir Kogan.

This is not the first dispute that Uralsib lost. Previously, he paid VTB Austria more than $5.8 million, FIMBank - more than $1.9 million. Uralsib reissued these accounts to the Bank of Russia, which agreed to repay them to the then living owner of the bank, Kogan.

2015: Owners

Uralsib was sanitized in November 2015 by Vladimir Kogan. He owned 82% of the shares, another 15% - from the founder of the bank Nikolay Tsvetkov.

Vladimir Kogan received 81 billion rubles from the Central Bank of the Russian Federation for the reorganization of URALSIB (loans for 14 billion rubles for a period of 6 years and 67 billion rubles for a period of 10 years), and BFA Bank provided almost its entire loan portfolio for this loan (in the amount of about 30 billion). Among the shareholders of BFA Bank is the son of Vladimir Kogan Efim Kogan (24.95%).

After the death of Vladimir Kogan, his widow Lyudmila became the sanatorium of Uralsib Bank. The Central Bank approved her as a sanator in April 2020.

2013: Amount of assets - 409 billion rubles

Uralsib Financial Corporation is one of the largest Russian financial groups providing services such as retail and corporate banking products, investment banking services, leasing products, brokerage and custodial services, asset and wealth management, etc.

The largest asset of FC Uralsib is Uralsib Bank. Its authorized capital as of 01.07.2013 amounted to 29.3 billion rubles, the amount of assets - 409.8 billion rubles, and the amount of own funds - 51.3 billion rubles.

The parent organization of Uralsib Bank is located in Moscow, and the remote central office operates in Ufa. The integrated regional network of sales of financial products and services of the bank as of August 1, 2013 has 27 branches, 444 points of sale, about 3 thousand ATMs and more than 22.5 thousand payment terminals.

2011: 3.4 million customers

As of 01.01.2011, the corporation's sales network unites 469 outlets in Russia and abroad, serving more than 3.4 million customers.

Notes