Вы здесь

UBRD News Update

UBRD will have a capital increase

UBRD is listed among regional banks in respect of which measures to improve their capitalization will be implemented by Deposit Insurance Agency (DIA).

The additional capitalization will be carried out by transfer of federal loan bonds.

The list approved by Dmitry Medvedev, PM, includes 10 credit institutions: The Ural Bank for Reconstruction and Development, Tatfondbank, Asian-Pacific Bank, Zapsibkombank, International Bank of Saint-Petersburg, Surgutneftegasbank, Commercial bank Kuban Credit, Investment Bank of Chelyabinsk Chelyabinvestbank, Pervobank, Sarovbusinessbank.

UBRD acts as lead arranger of a syndicated loan Savings Bank Belarusbank

Ural Bank for Reconstruction and Development acted as lead arranger with Alfa-Bank acting as mandated lead arranger and agent of a syndicated loan to Savings Bank Belarusbank (Belarus). The agreement for a facility in the amount of EUR 203 mln for the term of 6 months was signed on July 10, 2015.

17 financial institutions took part in the transaction: among them, in addition to UBRD and Alfa-Bank, are Novikombank, Promsvyazbank, Transcapitalbank, Bank Finservice, GLOBEX bank, Uralsib, Gazprombank, Svuaz-Bank (lead arrangers), Asian-Pacific Bank, Banca Intesa, Bank ZENIT, Kazkommertsbank, Absolut Bank, Oil Investment Bank, and Nefteprombank (organizers).

JSC Savings Bank Belarusbank is the largest universal financial institution in Belarus that offers its customers more than 100 types of banking products and services, including cash and settlement services, lending, deposit banking, leasing, factoring, cash collection, international and interbank settlements, currency exchange and conversion operations, operations with bank cards, consulting and depository services.

In June 2015 the Bank acted as co-arranger of the syndicated loan for Alfa-Bank (Belarus) in the amount of USD 30,000,000 and EUR 4,000,000.

UBRD co-arranges a syndicated loan to Alfa-Bank (Belarus)

Ural Bank for Reconstruction and Development acted as co-arranger of the syndicated loan to CJSC Alfa-Bank (Belarus); and Alfa-Bank (Russia) acted as lead arranger. The Agreement was signed on June 29, 2015; the first tranche of USD 2,500,000 was disbursed on July 6. The second tranche of the same amount is to be disbursed in three weeks.

The syndicated loan to Alfa-Bank (Belarus) in the amount of USD 30,000,000 and EUR 4,000,000 involved eight credit organizations. Along with UBRD and Alfa-Bank, Novinkombank, Bank Zenit, Svyaz-Bank, Bank Finservice a cted as co-organizers, and Baltikums Bank and Asian-Pacific Bank as general managers. The term of the facility is 6 months with the possibility of extension for the same period.

After signing the agreement the combined ATM network of the Ural Bank for Reconstruction and Development has exceeded 22 th. units.

Now customers of both financial institutions will be able to withdraw money using a card of any payment system without commission.

As of June 1, 2015 UBRD’s AMT network accounted 1194 machines, and Ak Bars’ network accounted 1201 machine.

The consolidated network also includes ATMs of Alfa-Bank, United Settlement System and partner banks of VTB Group.

UBRD and Ak Bars consolidate ATM networks

After signing the agreement the combined ATM network of the Ural Bank for Reconstruction and Development has exceeded 22 th. units.

Now customers of both financial institutions will be able to withdraw money using a card of any payment system without commission.

As of June 1, 2015 UBRD’s AMT network accounted 1194 machines, and Ak Bars’ network accounted 1201 machine.

The consolidated network also includes ATMs of Alfa-Bank, United Settlement System and partner banks of VTB Group.

UBRD to indemnify depositors of Plato-Bank

Ural Bank for Reconstruction and Development won the tender to indemnify depositors, including individual entrepreneurs, of the credit institution Plato-Bank, LLC. This was reported on the website of the State Corporation Deposit Insurance Agency (DIA).

On May 13, 2015 the Central Bank of Russia has revoked banking license held by Ekaterinburg-based Plato-Bank (Registration No. 2071). Plato-Bank’s retail deposit portfolio amounted to RUB 740 mln as of April 1, 2015.

UBRD awarded by Visa for 1 mln cards issued

UBRD was awarded by the international payment system Visa at the conference New Horizons that explores leaders of the banking industry in the Russian regions and was held in Yekaterinburg.

UBRD received the award for the emission of one million Visa cards and for the successful cooperation with Visa for 15 years. The first card from Visa was issued by UBRD in 2000, the millionth – at the end of 2014.

3-2-3 Strategy summary

2014 was rich in foreign economic and geopolitical events. Difficult economic situation and sanctions against Russia were the key aspects of the year and required adjustments to many processes. UBRD responded quickly to market events and developments working over any opportunities.

An important event of the end of the year was the increase of the Central Bank key rate to 17% resulting in increase of interest rates on deposits by banks. Under these conditions, the banking system received a big cash inflow from depositors and new opportunities for development in 2015. Moreover, the risk of depositors’ distrust that was formed in the course of the year was removed from the banking system.

After completing the 3-2-3 strategy UBRD fulfilled the plan by the number of active clients of the Bank: as of January 01, 2015 UBRD had 1,007,259 customers. In 2014 the number of customers increased by 15%.

In 2014 the Bank conducted two waves of optimizations in the front area and the head office. As of December 2014 the number of employees was 6,108.

Last quarter was very successful the corporate business in terms of deposits, which have increased by 166%.

In December 2014 UBRD managed a big inflow of customers: every second client visited our office during the month. Despite the intense pressure on the front area, in December the average waiting time in service offices was minimal during the year.

Retail Business: From January to September approaches to risk assessment were severely tightened resulting in decrease of the approval rate by one third. Starting from September the number of applications received decreased due to the general decline in demand for loans.

Corporate Business: In April and May there was a sharp decrease in the number of loan applications. Since June the number of applications has stabilized at 900-950, and the percentage of approved applications stood at the level of 45-50%. At the end of the year there was a significant decrease in the number of applications related to the difficult situation in the economy and the currency market.

Bank’s assets in 2014 increased by 17.5% and amounted RUB 236.7 bln.

Equity in 2014 increased from RUB 17.4 bln to RUB 24.8 bln (+42.4%). As of January 1, 2015 N1 ratio was 13.54% (with a minimum requirement of 10%).

Pre-tax profit of the Bank at the end of 2014 amounted to more than RUB 2 bln; net profit amounted to RUB 1.9 bln.

Net operating income in 2014 increased by 44.7%.

Results of the implementation strategy 3-2-3
3-2-3 Strategy was formulated in 2011 with four main objectives: creating value for customers, creating conditions for staff, ensuring efficiency and achieving financial results. An action-plan was launched for each of these blocks, and by the end of 2014 UBRD has achieved the intended result. Thus, the Bank achieved the targets of 1 mln customers and creation of necessary infrastructure, and the target income.

As of October 1, 2014 the Bank had 555 offices (as of 2011 – 200 offices, the planned number in the strategy – 550).

Income of the Bank for the past period has increased by more than triple RUB 45.8 bln (as of 2011 – RUB 13 bln).

The number of customers has doubled to 1,007,259 customers (as of 2011 – 570,000)

UBRD implemented several major projects in the HR field: introduction of the system of motivation and grades, development of integrated approaches for assessment and staff development, organization and arrangement of actions to support internal corporate values.

A significant change in the development of branch network and the perception of the Bank’s image was the rebranding conducted in 2012. New image, design and office space seriously affected the success of communication and interaction with customers, which contributed to a rapid increase in the customer base.

“During the implementation of the strategy we have practically rebuilt the bank in terms of internal processes, as well as in terms of management of key business processes. Today we have the necessary infrastructure, all possible channels of communication with customers, and most importantly, a serious competitive advances relative to the market”, says Anton Solovyov, President of UBRD

Challenges in 2015
To compensate and take into account all the negative fluctuations in the economy, we need a clear implementation of the budget approved for 2015 (reducing the overall size of the budget amounted to 17.6 - 20%). As far as this reduction is sufficient, the results of the Q1 2015 will show.

UBRD managed cost optimization and will continue to minimize costs, reviewing and improving the efficiency of business processes. These actions are carried out in order to respond adequately to the events taking place in the markets.

Preliminary Y-end 2014 results (RAS)

Ural Bank for Reconstruction and Development (UBRD) summarized the first financial results for 2014. As of January 1, 2015 Bank’s equity increased from RUB 17.4 bln to RUB 24.8 bln, an increase of RUB 7.4 bln or 42.4%. Currently, UBRD is among fifty largest Russian banks in terms of equity.

UBRD assets for 2014 increased to RUB 236.7 bln or by 17.5%. As of January 1, 2015, N1 ratio, one of the main indicators of stability and reliability of the financial institution, was 13.31% (with a minimum requirement level of 10%).

Liabilities amount to almost RUB 224 bln, which is RUB 46 bln more compared to the beginning of last year (+ 17.8%). Balance profit amounts to more than RUB 2 bln. Net operating income increased by 44.7% to RUB 23.712 bln.

“The results of 2014 show that UBRD is able to work effectively in any situation: we were able not only to receive more profit than in the successful 2013, but also provide a significant capital cushion. This will allow the Bank consistently implement its business objectives even under adverse developments in the economy“, said Anton Solovyov, President UBRD.

Q3 2014: Key performance indicators (RAS)

In the third quarter of 2014 Corporate Business division showed best performance result. Corporate accounts balances increased to RUB 61.8 bln (+16.1%), and corporate deposits grew significantly from RUB 39.8 bln to RUB 50.7 bln (+27.4%).

“The growth of the corporate sector mainly was drawn by improvement of quality of products for SME, change of tariff plans, and special offers for business, which the bank has launched in a new business season. Customers responded positively to the new proposals as we see this in the third quarter,” said Alexei Ikryanikov, Vice President of UBRD.

Total deposit portfolio reached RUB 151.8 bln as of October 1, 2014 (+5.2%); loan portfolio amounted to RUB 160.3 bln. Bank’s assets increased by RUB 14.7 bln and reached RUB 230.5 bln (+6.8%). Capital increased by RUB 214 mln and reached RUB 19 bln.

As of October 1, 2014 liabilities reached RUB 219.1 bln. Customer accounts balances for the quarter increased by RUB 7.5 bln. and amounted to RUB 152 bln.

“We are completing the strategy initiated in 2012, and will focus on the effective management of business processes and improvement of customer service. Thus, we must create a comfortable 24/7 customer service anywhere in the world on any channel that is convenient to our client. For us it is a challenge and a new level. We expect that this approach to business will lead to higher penetration of banking products, development of distant sales and a significant increase in fee income in the overall structure in the next 3-4 years. The focus will shift to client support and consulting,” says the Anton Solovev, President of UBRD.

32nd place among largest Russian banks

UBRD took 32nd place in the 200 largest Russian banks ranking of the Profile magazine in H1 2014.

Despite the slowdown in the banking sector UBRD retains positive dynamics in key financial indicators. Bank showed a high increase in assets: +8.5% to RUB 225.1 bln in first six months of 2014.

UBRD is the leader by all key indicators in the Sverdlovsk region and one of the leaders in the Ural region.

Experts of the magazine stress that in the second quarter of 2014 the assets growth rate of the Russian banking system had the same dynamics as in the first quarter (+3.4%), however, far worse than the results of previous years. In the first half only 389 banks of 900 showed asset growth, while in the previous year it was 552 banks.