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28.04.2017

Standard & Poor's has upgraded the short-term credit ratings of Ural Bank for Reconstruction and Development to "B" level from the "C" due to the change in the methodology of long-term and short-term ratings. As S&P reports the criteria are reviewed on an ongoing basis at least once a year. The purpose of such changes is to make bank ratings more transparent and thus potential changes more predictable to professionals of credit analysis.

08.08.2012

In early August the Bank has set800th ATM  in city of Kushva, an industrial center of Central Ural region having 16 large production plants. The increase in ATM network, sometimes anticipating growth of the branchnetwork –is a part of the Bank's strategy to develop retail business in new regions, as well as in the cities of the Bank's current presence. Implementing this strategy the Bank has entered large citiesof Krasnodar, Nizhnevartovsk, and St. Petersburg, as well as expandedits presence in the regions of Orenburg, Novosibirsk, Bashkortostan, and HQ base area –Sverdlovsk region.

Since the beginning of 2012 UBRD has already introduced 75 ATMs. Last year, the Bankhas increased its ATM network by204 machines. "Along with the expansionof the network, we are developingthe functionality of ATMs, minimizingthe need ofcardholders forvisitingour office to perform simple operations withthe card, such as making payments, payment forvarious services and state fines, transfer between accounts, loan payments, transactions on deposits with remote control and so on", saysMaxim Tamoshkin, Head of ATM Network Developmentof UBRD.

As of year-end of 2011UBRD holds18th place among the country's banks by the number of own ATMs in Russia, and 9th place by the number of ATMs with cash-in (RBC. Rating).

19.09.2012

The Ural Bank for Reconstruction and Development signed a framework agreement with AKA Export Finance Bank, which gives to the German bank an opportunity to finance UBRD, as well as its customers. The Agreement continues strengthening positions of  UBRD in international arena.

The agreement was signed during the European road show of UBRD, during which the Bank had several meetings with the major European banks. The meetings focused on further expanding cooperation, and the possibility of the use of new products and services between UBRD and western European banks.

“The signing of the agreement with AKA Export Finance Bank marks a new level of activity of UBRD in international financial markets. Our bank is a trusted foreign partners and banks in Europe are ready to enhance dialogue with UBRD for further cooperation. For our bank such cooperation – are additional ways to diversify the  funding base. For our clients – a new funding opportunities, settlements with foreign partners, documentary operations”,  said Mr. Sergey Sisoshvili.

01.10.2012

A new bright, open, and friendly image replaces old logo and symbols of UBRD. The Bank neither changes its name, activities and products nor shareholders but switches to a new visuals.

The Bank’s Management took care of clients’ inetrest when making a decision about rebranding, UBRD will continue to provide a wide range of services for businesses and individuals. The Bank firmly believes cooperation with clients will mutually benfit from the new corporate style, which is open, up-to-date, way-wise, professional, and driving.

The Ural Bank for Reconstruction and Development, the bank with more than twenty years, is  ranked in the Top 50 leading banks of Russia.

UBRD’s network has 12 branches and more than 240 sales and service office. The Bank’s clientele accounts about 60,000 of corporate clients and 750,000 of individuals.

25.09.2012

Ural Bank for Reconstruction and Development has become the winner of the Leader of the Top List award of the reputable business publication Business District. UBRD is one of the Top-Three leaders among local banks in terms of funds raised in Ekaterinburg and the Sverdlovsk region.

According to the newspaper UBRD was ranked first in the loan portfolio in the region among the local banks. The Banks was also ranked first among domestic banks in categories of largest banks in lending, leaders by corporate loan portfolio, and leaders of retail deposits.

The award involved banks od Yekaterinburg and branches of federal banks active in Ekaterinburg and Sverdlovsk region.

The rating is based on analysis of public sources, official websites of banks, as well as information provided by banks.

23.08.2012

On August 17, 2012 UBRD has signed a six years term loanagreement with the Commerzbank AG, Frankfurt, forthe amount of USD 5,3 mln. The funds areinsured by the German export credit agency Euler Hermes for the purchase of 270 ATMs of Wincor Nixdorf, a long-standing partner of the Bank. This agreement marks an increase in activity of UBRD in international markets and high confidence among foreign partner banks.

The Bank actively expandsits ATM network to provide high quality services to its customers and develop and strengthen its position at the federal level.

"The agreement with Commerzbank AG allows us to buy a large lot of ATMs, not involving the Bank's own resources requiredfor the active expansion. Such solution diversifiesUBRD'sown base and reducesthe cost of funding", said SergeySisoshvili, Vice President, International Markets & Financial Institutions at UBRD.

In September 2011 UBRD has already financed the purchase of ATMs with participation of Commerzbank and Euler Hermes  for theamount of USD 4,9 mln with the term of fiveyears. Expansion of ATM network  is a part of the Bank's retail banking strategy. In 2011 the ATM network has been increased  by 204 ATMs.

22.08.2012

85 mutual funds run by 10 leading management companies of Russia form UBRD's mutual fund store. Investors can choose appropriate among available portfolios or from its own one depending on specific purposes. Recently mutual fund Arsagera Management Company joined UBRD's mutual fund market. The Company operates in Saint-Petersburg since 2004.

UBRD's mutual fund market was opened in 2012 and became the first banking store of mutual funds in Ural region. It benefits by the one-stop-store concept offering full service pack to clients.

27.01.2017

In December 2016 Ural Bank for Reconstruction and Development and Harbin Bank Co Ltd have signed uncommitted bilateral trade finance framework facility agreement as part of previously signed cooperation agreement. According to the document the parties undertake to finance the export-import operations of their customers with partners from China both in yuan and US dollars.

“Chinese banks are very cautious and always have a conservative approach to business. I believe that this agreement, which allows us to attract unsecured financing, is our achievement. It shows confidence and recognition of UBRD as a reliable partner, “ said Sergei Sisoshvili, VP, Head of International Business Department in UBRD.

According to the Federal Customs Service of Russia the share of trade with China in 10 months of 2016 is 14.1%. During this period the trade turnover between the two countries reached USD 58.745 bln, which is 1.7% more than in the same period of 2015. Main exports are fuel and energy products (58.6%), crude oil (26.3%), natural gas (10.8%), metals (10.3% ),  and imports: machinery, equipment and vehicles (47.1%), chemical products (18.7%), food products (13.4%).

15.03.2016

In 2015 the Ural Bank for Reconstruction and Development has implemented its plans, showed an increase in key financial indicators, maintained its leading position in the banking market and demonstrated the effectiveness of the existing business model.

Equity increased from RUB 24.8 bln to RUB 27.1 bln (+ 9%), including as a result of operating profit. Net assets grew by RUB 109.9 bln (+46%), reaching RUB 346.6 bln by January 1, 2016. Stock market trading, business lending, and revaluation of the foreign currency component of assets were key growth drivers. Total loan portfolio amounted to RUB 187.55 bln (+6%) as of January 1, 2016.

One of the main tasks of the year was work on the quality of the loan portfolio, particularly, reduction of arrears in corporate segment, maintenance of the required profitability of retail business given a gap of rates in assets and liabilities, decrease of anticipated losses on new retail loans by the end of the year. These goals were realized through improved approaches to credit risk assessment, implementation of new data and algorithms in the scoring models, switching focus in retail to loyal customers.

As a result, the Bank’s funding base increased by RUB 108.2 bln (+48%) and amounted to RUB 331.9 bln as of January 1, 2016. Most of the increase was ensured by the inflow of retail deposits (+ 43%); generally, the volume of retail deposits increased from RUB 93.17 bln to RUB 133.66 bln in 2015. In addition, the Bank has increased the fund raising in the repo market and interbank lending.

As of January 1, 2016, profit after tax amounted to RUB 2.2 bln, which is 14% more than in 2014.

In November 2015 UBRD assumed obligations under reorganization of VUZ-bank buying out 99.99% of shares.

15.10.2015

The State Corporation Deposit Insurance Agency (DIA, the Agency) has selected the investor to participate in the prevention of bankruptcy of VUZ Bank JSC (the Bank) after consideration of proposals received from applicants interested in participating in the its rehabilitation.

A key criterion for the selection of investors is the smallest aggregate amount of financial assistance provided by the Agency to the financial rehabilitation of VUZ Bank.

UBRD (the Investor) was selected as a candidate that offered the most favorable conditions of financing measures to prevent bank’s failures. In accordance with the plan of DIA‘s participation in preventing the bankruptcy of the Bank the reduction of the authorized capital up to RUB 1 is envisioned and its subsequent increase by issue of new shares in favor of the Investor, allowing the latter to become the main shareholder of the Bank.

Also in accordance with the amendments to the plan of DIA‘s participation in preventing the bankruptcy of the Bank a financial assistance to cover the imbalance between the fair value of assets and the carrying value of liabilities in the amount of RUB 5.7 bln for 10 years is to be provided by DIA.

In future a reorganization of the Bank in the form of its accession to the Investor prior to October 1, 2025 is planned.

Given these activities the Bank will carry out its regular activities, fulfilling the full range of banking services and provide an uninterrupted service to customers.

10.08.2015

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.

17.07.2015

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.

08.07.2015

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.

22.06.2015

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.

21.05.2015

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.

21.05.2015

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.

28.01.2015

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.

Clients
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%.

Staff
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.

Processes
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.

Lending
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.

Finances
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.

19.01.2015

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.

11.11.2014

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.

21.08.2014

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.

04.08.2014

On June 17, 2014 Ural Bank for Reconstruction and Development (UBRD) signed unsecured uncommitted syndicated revolving loan facility agreement with Alfa-Bank JSC acting as arranger, initial creditor and paying agent, and Bayerische Landesbank acting as agent of the transaction. The transaction is governed by English law.

The term of the credit line is two years from the date of signing the loan agreement. The Borrower has the right to attract funds for a period of three, six, nine and 12 months. Repayment is one-off at the end of each period.

The first tranche in the amount of USD 16 mln was delivered on July 31, 2014. The first tranche was provided by two major Russian banks – Bank ZENIT OJSC and Promsvyazbank JSC by acquiring rights to claim under English law by signing Transfer Certificates with Alfa-Bank.

“This is a unique deal for the Russian banking sector. Contrary to the unstable situation in the market we have been able to implement a deal to provide a syndicated loan for the leading Russian bank, bringing together the main features of the primary and secondary market. Sale of UBRD’s risk was carried out through the signing transfer certificates and preliminary deposit of loan funds in the accounts with Alfa-Bank. We believe that this product will be able to interest other Russian banks as well,” says Alexey Petrov, Director, Head of syndication desk, Corporate and Investment Bank of Alfa-Bank.

Sergey Sisoshvili, Head of international business, UBRD, said: “This transaction confirms high reputation of Ural Bank for Reconstruction and Development in the interbank market, and also shows the emerging trend – many of leading Russian banks in the current market situation will shift to local debt capital markets.”

24.07.2014

In the first half of 2014 despite a slowdown in the banking sector Ural Bank for Reconstruction and Development (UBRD) showed growth in key financial indicators demonstrating the effectiveness of its business model.

UBRD’s equity YTD increased by RUB 1.5 bln (+8.6%), reaching nearly RUB 18.9 bln. The capital increased due to the financial support from shareholders and a subordinated loan in the international market. This enabled the Bank to increase capital adequacy ratio (N1.0) to 11% (as of July 1, 2014) and continue the implementation of development strategy.

As of H1 2014 net profit amounted to RUB 746.8 mln, assets amounted to RUB 215.8 bln, compared to the beginning of the year an increase of RUB 14.3 mln or 7.1%, and for the year increase of 28.1%. The loan portfolio increased to RUB 138.5 bln (+7.9%). In the first half of the year the growth of the corporate loan portfolio(including SMEs) was to RUB 65.8 bln. (+17.7%); loans to retail clients in the first half to amounted to RUB 20.6 bln (in the same period last year it was RUB 23.9 bln). Total retail loan portfolio was RUB 60.9 bln, decreasing by 2.9% compared with January 1, 2014, due transaction for the sale of the portfolio.

Liabilities reached RUB 204 bln (+7.6%), compared to the same period last year an increase of 29.6%. Corporate deposits increased from RUB 35 bln to RUB 39.8 bln (+13.7%). Retail deposits reached RUB 85 bln (+9%). Inflows of individuals is a result of new products – promotional deposits "+10" and "Record", allowing the highest returns, as well as special programs for loyal customers.

Number of active clients of the Bank in six months increased by 61 thsd up to 947.8 thsd. Main inflow of individual clients: from January1, 2014 their number increased by almost 60.5 thsd.

“These results demonstrate with the overall serious slowdown in the banking sector UBRD confidently moves forward. External events require more work on the reliability of the Bank. We chose a conservative business management model that focuses on diversification of passive base, improving the quality of the loan portfolio, and it has shown its effectiveness.

At the same time, we worked on improving the quality of products and services, emphasizing on simple technological services. The result of this work is obvious – for six months UBRD significantly increased its customer base, which is primarily an indication of customer confidence,” said Anton Solovyov, President of UBRD.

To recall, UBRD has launched a number of new high-tech products. Among them are a new internet bank for individuals, rated 7th by functionality in Banking Review, and, according to Markswebb, UBRD is in the top 3 banks for mobile browsers. During Innoprom exhibition UBRD also presented bank technology SEQR of Swedish company Seamless, which allows to pay for purchases with smart phone.

09.06.2014

UBRD’s shareholders have made additional capital injection of RUB 1,044 bln. The proceeds will be used to maintain and ensure the growth of the Bank, in particular, the development of lending, improvement of technologies, and expansion of office and ATM network.

“The capital increase confirms willingness of the shareholders to support and to stimulate the development of the Bank. Increased equity will allow us to focus more on improving efficiency and strengthening our position in the market, and will provide the necessary framework for the implementation of the Bank's strategy 3-2-3, according to which we plan to triple the number of offices and revenue, and double the number of active clients,” says Anton Solovyev , President of UBRD.

Highlights: Anton Solovyev talks with Thomson Reuters

On June 04, 2014, Anton Solovyev participated in a chat-room of Thomson Reuters Trading Russia, where the main topic of the discussion was a retail bank in current market environment. We have highlighted key quotes below:

Q: What are the expectations for the key rate?

A: On the one hand, this rate sets the general level of interest rates in the credit market, respectively, is an effective lever of government lending rates. If the issue is to reduce the cost of credit to businesses, it is logical to expect it to go down. According to the optimistic scenario, it may be reduced in the medium term by 0.5 - 1.0 percentage points

But one can not exclude the pessimistic scenario where it will remain at the same level, which will reduce the rate of inflation. The level of the key rate primarily depends on which of these issues the state will solve.

Q: What will be the ruble yield curve? What will happen to pricing and yield on Russian Treasury bonds? How the cost of short-term borrowing in the interbank market will change?

A: At the moment, the main factor of rate changes are the regulator’s actions. Therefore, when the key rate reduced, we see a similar reduction in the rates in the range of over 180 days, while the short rates should fall by 1.5.

Now a part of the curve from 30 to 90 days has very high values as a consequence of a shortage of liquidity in the market and the effect of the recent rate rise.

We believe that the most likely the regulator and market rates will decline, however, the corridor of reduction will not exceed 1.0 b.p.

Q: What dynamics did retail portfolio show in 2013, and whether you plan to increase its share?

A: According to RAS retail loan portfolio increased by 71.6% to RUB 62.7 bln in 2013. In 2014 we plan to expand portfolio by 20-30% (depending on the growth options of market capacity).

As of January 1, 2014 retail deposit portfolio was RUB 78 bln, which is RUB 18 bln more than last year (+29.9%). The total share of the retail sector in the resource base is 64%. In 2013 UBRD followed a policy of diversifying its resource base. As a result, the proportion of funds raised from the open markets (bonds issued in domestic and foreign markets) increased from 8% to 13%.

As long-term goals we set further reduction of the share of retail in liabilities by boosting other sources. According to our expectations, depending on the situation in the markets, the share of retail may be reduced to 55-60% in the next two years

Q: Who are your main clients, and how the Bank attracts deposits from individuals?

A: The Bank positions itself as a universal credit institution that offers traditional banking services to all categories of customers: large corporate customers and small businesses, and individuals.

The main part of attracted funds from individuals are deposits. By the end of 2013 deposit portfolio amounted to RUB 78 bln, by the end of four months of 2014 it grew by 6.3% and totaled RUB 82.9 bln; UBRD’s share in the Russian market was 0.6% as of May 1, 2014.

At the same time, in March, when the banking system saw an outflow of deposits UBRD entered the Top 20 banks, which recorded inflow of deposits. The Bank plans to increase its growth dynamics and bring its market share up to 1% in 2016.

Q: Do you plan any international developments, why? And if so, what methods are used?

A: Certainly. Reliability of the Bank’s business model involves the diversification of funding sources.

Therefore, the work in international capital markets is an important direction for us. Our plan is to continue the development of trade finance, as it can be quite interesting to a wide range of clients engaged in export and import.

In addition, using trade finance products may significantly reduce the cost of international funding and expand the circle of Western partners and financial institutions, including banks, export credit agencies, and factoring companies.

Q: Any borrowings in the bond market planned?

A: Currently, the Bank has registered and ready to place three three-year exchange bonds of Series BO-06, BO-07, and BO-09 with total nominal value of RUB 7 bln., and one additional issue of Series BO-05 of RUB 1 bln maturing in 2020.

The placement of these issues will depend on the situation in the financial markets of Russia.

Q: Are you ready to lend to businesses not in your region? How do you assess this recent practice in the banking sector?

A: We lend to businesses in all regions of our presence. Today we are represented in 68 regions, the number of our branches exceeds 550 offices.

Q: How does the portfolio of Bank’s customers look like, more individuals or legal entities?

A: Roughly, equal number of individuals and legal entities among the clients – 46% and 54%, respectively.

Q: What bonds do you hold in your portfolio? Are there any shares in the portfolio, which and why?

A: There are no shares traded on stock exchange; the Bank currently has limited investments in high-risk instruments. As of May 26, 2014, the bond portfolio is about RUB 51,6 bln.

It consists of more than 99% of the securities of issuers that are rated by international agencies and included in the Lombard list of the Bank of Russia. Two third of the portfolio are securities rated BBB- and above: A – 1.16% , B – 3.97%, BB – 27%, and BBB – 66.42%.

24.04.2014

In the first quarter of 2014 despite the general economic slowdown UBRD showed a positive trend on the main indicators.

Compared with the beginning of 2014 the Bank's capital increased by to RUB 17.8 bln. (+4.1%). Over the past 12 months the growth of capital was +30.9%.

Profit before provisionsin the first quarter exceeded RUB 4 bln, an increase of RUB 1 bln. compared with the previous quarter. Net incomein the first quarter was RUB 7.2 mln, while for the same period last year it was recorded at around RUB 320 mln, and by the end of fourth quarter of 2013 – RUB 287.6 mln. The decline in net income is explained by securities revaluation, changes in reserve requirements on newly issued loans, and taxes.

During the first quarter assets increased by 5.7%, up to RUB 213 bln, compared to the same period last year, an increase of 38.3%. Driver of growth in the first three months of 2014 was the Bank’s loan portfolio, which increased by 4.8% since the beginning of the year, up to RUB 134.5 bln. Growth of the corporate loan portfolio(including SMEs) from the beginning of the year was RUB 5.3 bln and reached RUB 61.2 bln. Retail loan portfolio increased by 65.3% and reached almost RUB 62 bln compared with the same period last year.

Liabilities have also increased, and on April 1, 2014 exceeded RUB 201.4 bln. Portfolio of retail term deposits increased by 4.4% to RUB 81.4 bln. However, the higher growth rate were in corporate deposits. Portfolio grew by 12% and reached RUB 39.2 bln. To be noted that in the same period last year growth was recorded only at 2.4%.

Number of active clients of the Bank exceeded 920,000. Office network increased by 20 offices: as of April 1, 2014, 539 offices in 67 regions of Russia were registered with CBR.

In the first quarter, there were many external events that have had a direct impact on the banking sector. These were decreased customer confidence in the banking system and a significant decline in economic growth, as well as geopolitical factor. We understand the current threat to the market , and we already can predict that the recession will be. The first quarter was for the entire banking sector another stress test. As a result, we have seen once again that UBRD’s business model allows clearly and promptly respond to all the challenges of the market, ensuring uninterrupted service to our customers, said Anton Solovyov, President of UBRD.

RUB BO-05 repurchased

On April 23, 2014, UBRD fulfilled obligations under annual offer and redeemed at the request of the owners of seven-year BO- 05 bonds after the second coupon period.

Totally Bank repurchased 1,646,352 bonds at par, which is 82 % of the issue. UBRD further plans to place securities in the secondary market.

UBRD placed BO-05 Series totaling RUB 2 bln with third and fourth coupon rates of 11.75% in April 2013.

On April 17, 2014 MICEX has registered the additional issue of BO-05 Series with a total nominal value of RUB 1 bln. Overall, UBRD has three RUB bonds series of exchange bonds, and one of classic bonds totaling RUB 9 bln; classic RUB bonds in the amount of RUB 2 blnwill be repaid in early May 2014.

22.04.2014

On April 17th, 2014, UBRD finalized the refinancing of its customer for buying power equipment from Caterpillar, USA. The loan for the amount of USD 33.8 mln with tenor of 5 years was granted by AKA Export Finance Bank and Commerzbank, and insured by export credit agency Euler Hermes.

“The structure of the deal was complicated since process involved companies from several countries: Germany, Switzerland, the United Arab Emirates. This kind of deal that lasted almost a year is unprecedented for the market because the rules of the German export credit agency do not involve the participation of such a wide range of countries. I am sure that it will further strengthen the reputation of UBRD as a reliable partner in foreign and domestic markets,” said Sergei Sisoshvili, Head of International Business. The successful completion of the transaction also evidences the fact that international cooperation and foreign trade will  further develop, he continues.

In Top-20 by deposits

UBRD is among the 20 largest banks in Russia that showed an increase in the volume of retail deposits in March 2014, according to the analisys of Banki.ru Agency.

Agency experts have calculated the dynamics of deposits placed in the top 100 Russian banks, and found that only 20 of them observed increase in funds by the end of March. UBRD’s increase amounted to RUB 71.7 mln.

25.02.2014

UBRD holds strong positions in the ranking of the largest Russian banks published by Expert RA in terms of assets, loans and deposits of individuals.

Occupying 33 place by assets as of February 1, 2014, UBRD shows a high growth rate of assets – 46% over the past year (01.02.2013 – 01.02.2014).

UBRD has established itself as a reliable bank for safekeeping of funds; for the same period the volume of individual deposits in UBRD increased by 28%, allowing the bank to take 22 place among the largest financial institutions of Russia. As of February 1, 2014, retail customers have placed deposits with UBRD for more than RUB 80.17 bln.

Bank’s retail loan products are also in great demand; in the beginning of February 2014 UBRD has granted loans to individuals in the amount of RUB 63.26 bln. In this term UBRD holds 26 place in the rankings.

17.02.2014

Ural Bank for Reconstruction and Development to finance supply of Italian construction equipment of Italian company Linco Baxo in Russia . Term of the transaction is up to 4 years.

The agreement was signed between UBRD and UBI Banca. Credit insurer under the agreement is Italian export agency SACE. Linco Baxo equipment will be delivered to the client of UBRD – Sukholozhsky Refractory Plant, which is one of the main manufacturers of energy-efficient new generation of refractories Sverdlovsk (home) region.

It should be noted that SACE along with US Ex-Im Bank and Euler Hermes accepts long-term risks of UBRD.

As Sergei Sisoshvili, Head of International Business, says this deal shows UBRD’s strong positions in the international financial market and a high degree of confidence that the world's largest insurers place in UBRD. “In the future we plan to continue to attract long-term foreign capital for industrial development Russian regions”, he continues.

07.02.2014

UBRD expands its network and in late January has opened first full office in Ulyanosvk.

In 2014 UBRD office network will continue to increase: in the first half of 2014 there will be new offices in Tomsk, Astrakhan, Kursk, Novosibirsk, Lipetsk and other cities. According to the bank's strategy, in 2015 the bank office network is not less than 550 outlets.

04.02.2014

In 2013 Ural Bank for Reconstruction and Development has not only strengthened its position but also prepared the platform for further intensive development in the context of slowing growth of the market of banking services. The Bank's own capital has increased from RUB 12.7 bln to RUB 17.4 bln. (+37.1%) due to operating income and issue of subordinated Eurobonds. Thus UBRD became the first bank in the Sverdlovsk region by capital.

UBRD is among 25 largest retail banks in the country and maintain a leading position in home region (Sverdlovsk region) by all key banking indicators: assets, profit, loan portfolio, retail deposits, and investments in securities.

Net assets have increased by RUB 59 bln (+41.1%) reaching RUB 201,4 bln as of January 1, 2014. The total loan portfolio increased compared with the beginning of the year to RUB 43.6 bln (+51.5%) and reached RUB 128.4 bln. Retail loan portfolio increased by 71.6% reaching RUB 62.7 bln, volume of corporate loans grew by 27% from RUB 44 bln to RUB 55.9 bln rubles. High growth rate was recorded in lending to SMEs: SME loan portfolio increased to RUB 8 bln (75.8%).

YTD resource base increased by almost half reaching RUB 189,6 bln as of January 1, 2014. As of January 1, 2014 retail deposits portfolio amounted to RUB 78 bln, which is RUB 18 bln (+29.9%) more than last year. Portfolio of corporate deposits increased by RUB 18.6 bln (+113.4%) up to RUB 35 bln. UBRD has issued exchange bonds for RUB 5 bln, euro-commercial papers of USD 100.8 mln, and made a debut issue of subordinated Eurobonds for USD 68 mln to increase equity of the Bank.

As of January 1, 2014 net profit amounted to RUB 2 bln (+75%).

UBRD took 9th place by the number of point of sales in 2013 (RBC). As of January 1, 2014, 519 offices in 67 regions were registered by the CBR. In  2013 the Bank has opened 237 new offices. ATM network now accounts 1148 machines.

On January 1, 2014 the number of active customers has exceeded 886 thsd (+28.3%).

“We see the market is cooling and approaching the saturation point. Although our focus will gradually shift from extensive development towards intensive, UBRD’s business model will not change significantly in 2014. We will continue to compete in those areas where we are confident, will continue developing the network, we pay much attention to remote sales and service, will continue working with loyal borrowers. Particular attention will be paid to the Bank’s risk policies and the effectiveness of business processes. And, of course, we will continue to improve our services and offer our customers the best and marketable products,” said Anton Solovev, President of UBRD.

20.01.2014

The Ural Bank for Reconstruction and Development has appointed a new top manager – Head of Risk Management – Tomasz Szymanowski, who will be responsible for development of risk management strategies and consistent credit policy, and capital management at risk.

“A new strong leader of an important division has joined our team. Tomasz Szymanowski has successful experience in establishing an effective control scheme of bank loan portfolio, which will allow him to build a quality system for monitoring liquidity risk in our Bank”, said Anton Solovev, President of UBRD.

Tomasz Szymanowski graduated from Warsaw University of Technology and the Warsaw School of Economics. He has more than 20 years experience in the banking sector, including eleven years of running credit risk management in different banks –  Bank Millennium, GE Money Bank, and Rabobank in Poland. Tomasz Szymanowski is one of the organizers of the forum on banking strategy of the banking sector, which was held in Warsaw in 2012. Besides Polish , fluent in English and Russian languages.

06.12.2013

On December 5 Ural Bank for Reconstruction and Development has additionally placed 9 month Euro-commercial papers in the amount of USD 7.5 mln. The decision to arrange forth tranche under the Programme was made ​​given the interest of foreign investors to buy UBRD’s 9 month-risk after placement of 6-month ECP in the amount of USD 35.8 mln earlier in October 2013, said Sergei Sisoshvili, Head of International Business Department.

In 2013 UBRD issued Euro-commercial papers for more than USD 100 mln. In August the Bank repaid debut issue of USD 50 mln placed in February 2013. Outstanding ECP amount to USD 50.8 mln. UBRD plans, given favorable market conditions, to enhance its position in the international debt and capital markets. In addition to the ECP Programme of USD 200 mln Bank also considers the possibility of arranging syndicate and Eurobonds issue in future.

Entrance to international markets contributes to both broadening base of foreign creditors and diversification of liabilities, adds Sergey Sisoshvili . In 2013 the total amount of transactions in the international market was approximately USD 600 mln, including long-term financing with international export credit agencies, trade finance deals with largest foreign banks in Europe and the United States, placement of  short-term and subordinated bonds among different European and U.S. investors.

21.11.2013

In late October, the Bank of Russia (“CBR”) has included into Lombard List UBRD’s bond issue of BO-08 Series. Earlier CBR has added to the List bonds of series UBRD-02, BO-1, and BO-05. Thus, at present in Lombard List includes all RUB bond issues of UBRD.

Bondholders of the Lombard List may use securities as collateral under repurchase agreements or loans granted by CBR. For potential investors this is a confirmation of high reliability of bank’s bonds.

25.10.2013

Ural Bank for Reconstruction and Development has completed a transaction in the international market. The issue of Euro Commercial Papers of USD 35.8 mln for 6 months took place on October 25.

Sergei Sisoshvili, International Business Department, said about 20 investors participated in the deal. “The interest in our deal confirms reputation of UBRD as a reliable bank. Investors are willing to buy our risks“, he commented. Herewith Mr. Sisoshvili said that for UBRD ECP is a quick way to access Western capital markets.

There is also ECP of USD 7.5 mln outstanding. In August UBRD repaid debut ECP issue of USD 50 mln placed in February 2013.

14.10.2013

Nine months results demonstrate that UBRD fulfills its plan set at the beginning of the year. By October 1, 2013 the Bank's net profit nearly doubled and amounted to RUB 1.4 bln.

Since the beginning of retail loan portfolio increased by RUB 18.3 bln reaching RUB 54.9 bln. The loan portfolio of SMEs increased by RUB 2.5 billion to RUB 7 bln. Thus, the structure of the loan portfolio became more balanced. Total loan portfolio increased by RUB 29 bln (+ 34.1%) compared to January 1, 2013 and reached RUB 113.6 bln.

As of  October 1, 2013 assets totaled to RUB 189.2 bln; the increase compared with the beginning of the year – RUB 47 bln (+ 32.8%), and compared with the same period last year – RUB 62.3 bln (+ 49%).

UBRD’s funding base increased substantially as well  by RUB 46 bln (+ 34.9%) and reached RUB 177.6 bln. As of October 1, 2013, retail deposits reached RUB 73.7 bln, which is RUB 13.6 bln more than in the beginning of the year. Since the beginning of the year corporate deposits increased as well by RUB 4.9 bln (or 29.8%) to RUB 21.3 bln. Other funding sources in the reporting period were exchange traded bonds for RUB 5 bln, Euro Commercial Papers issuance for US 50 mln and debut issue of subordinated Eurobonds for USD 68 mln.

Since the beginning of 2013 Bank’s equity increased from RUB 12.9 bln to RUB 16.8 bln (or 30.2%) due to operating income and issue of subordinated Eurobonds. Thus, in July, 2013 UBRD became the largest bank in Sverdlovsk region by equity. The growth of equity will allow the bank to further develop its “3-2-3” business strategy. The increase of shareholders' equity and the creation of additional reserves of the bank provides a stable position in the market.

As of January 1, 2013 UBRD had about 689 thsd active clients, while as of October 1, 2013 the number of active customers has exceeded 792 thsd (+15%). Particularly, during this period the Bank attracted 3.9 thsd clients-entrepreneurs and about 99.4 thsd individuals.

UBRD expands its office network as well; as of October 1, 2013 the Bank had 466 offices registered by the Central Bank of Russia. Only during last three months 54 new points of sale and other service offices were opened in 33 regions of Russia and now the Bank operates in 64 regions of Russia. According to RBC, UBRD has entered Top 10 of the largest banks in Russia by branch network, and by October 1, 2013 UBRD’s ATM network includes 1,090 units.

“In the first nine months UBRD has excellent results: first of all, the Bank continues showing positive profit trend; secondly, significant increase of Bank’s equity. We implement our strategy according to our plan and develop the business, ensuring sustainable growth. Consistently high results, balanced approach to risk and process optimization give us a solid degree of safety and allow to be prepared for any possible changes and stress. So, we continue look forward with confidence”, said President of UBRD, Anton Solovyev.

07.10.2013

On September 30, 2013 at UBRD’s General Shareholder Meeting it was decided to pay (declare) dividends on ordinary shares of Ural Bank of Reconstruction and Development based on results of first six months of 2013 in the amount of RUB 0.30 per one ordinary registered share for total amount of RUB 300,436,300.20.

19.09.2013

Ural Bank for Reconstruction and Development has closed the bid book for bond placement of Series BO-08 on September 17, 2013.

The placement of the bonds with total par value of RUB 3 bln took place at MICEX on September 19, 2013.

As a result of significant excess demand (RUB 9 bln bids from over 70 investors) coupon rate was lowered from intial 11.25%-10.75% p.a. to the lowest range border. The Bank has decided to set the rate of both coupons at 10.75% p.a., which is in line with effective yield of offer in one year of 11.04% p.a.

Note that this is the first placement of UBRD’s bond for the amount of RUB 3 bln. High interest for this issue marks positive attitude of investors to the strategy and development dynamics of the Bank, and allows to count on good liquidity of the issue on the secondary market. At present UBRD has three outstanding issues for total par value of RUB 6 bln. The new bond issue complies with all criteria for inclusion into Lombard List of the Bank of Russia.

Arrangers of Series BO-08 placement  were  Promsvyazbank OJSC, UniCredit Bank ZAO, and BK Region OOO.

16.09.2013

National Rating Agency ( NRA) has raised the credit rating of the Ural Bank for Reconstruction and Development from “AA-“ to “AA” (very high credit quality, second level) on a national scale, thus confirming a “positive” outlook assigned to the Bank’s rating in March 2013.

According to NRA the Bank effectively implements the strategy aimed at growing its market share , expanding its presence at the federal level, building a universal bank with a strong presence in retail. The Bank manages to maintain high growth rate of business, maintaining adequate capital, stable asset quality, positive return on investment. Consistency and effectiveness in implementation of the Bank’s strategy, expanding its positions exclusively through market transactions, maintaining high quality and liquidity of assets - all contributed to the rating upgrade.

Today UBRD successfully implements its medium-term development strategy “3-2-3”, which implies within the period of 2012-2014 the growth of the number of offices three times (up to 550) , customers – twice (up to 1 million), and gross income – three times (up to RUB 45 bln). During the first half of 2013 financial performance of the Bank, and throughout the year since August 2012, grew at a rate much higher than the market average. Asset quality is stable and improving, loan portfolio diversification by borrower and industry increases, and interest margin increases as well.

13.09.2013

As per financial statements UBRD’s profit before tax for the first half of 2013 reached RUB 1.1 bln (+ 635.8% compared to the same period last year). High growth rate of profit has resulted from not only significant increase in operating income, which was doubled to RUB 6.8 bln by July 1, 2013 from RUB 2.9 bln last year, but also low growth rate of its expenses.

Overall, the Bank’s assets increased by 43.5% compared to the same period last year. Changes in the structure of assets had a great impact on both net profit growth, and improvement efficiency indicators: share of loans has increased to 60.7% (1H 2012: 54.6%), while the share of securities has declined from 32.4% to 28.4%. In the loan portfolio the share of retail loans rose to 49.3% (1H 2012: 42.2%). In absolute terms, the volume of loans increased by RUB 38.6 bln (+ 67.5%), retail loan portfolio grew almost twice – by RUB 23.1 bln reaching RUB 47.3 bln.

The quality of the loan portfolio is also improving along with its growth: overdue loans to individuals over 30 days (NPLs 30+) in 2012 decreased to 13.2% (1H 2012: 18.6%), and the total amount of loans overdue over 30 days has also declined from 9.9% to 8.3%.

In the first half of the year there have been changes in the structure of liabilities: the share of retail accounts decreased from 51.5% to 47.8%, while the share of corporate clients and securities issued has increased. In absolute terms, retail accounts increased to RUB 76 bln (+ 35.1%), corporate customers – RUB 33.9 bln (+85%), and debt securities issued – RUB 15.5 bln (200.1%).

Also performance indicators have significantly increased compared to the same period last year: ROE – up to 20,9% (1H 2012: 6%), ROA – to 1,3% (1H 2012: 0,4%), operating income / assets increased 1.6 times from 5.3% to 8.7%.

24.07.2013

During the first half of 2013 the Ural Bank for Reconstruction and Development has shown steady growth of the main financial indicators. The Bank strengthened its position among the leaders of Russian banking sector in terms of all key areas. Particularly, the growth was recorded in Retail and SME segments. As a result, the Bank’s profit increased by almost 60% over the year.  

Since the beginning of 2013 retail loan portfolio increased by RUB 9 bln reaching RUB 45.5 bln. For the first time in the history of the Bank Retail loan portfolio gained corporate loan portfolio, which is RUB 45.3 bln as of July 1, 2013. Thus, the share of Retail loans was 44.5% and Corporates – 44.3% of the Bank’s total loan portfolio as of H1 2013, compared to 43.1% and 46.7% respectively as of January 1, 2013. High growth rate of retail loans is a result of both development of Internet sales and implementation of loyalty programs for the borrowers.

As of H1 2013 SME Loan portfolio increased by RUB 1.3 bln, or 29.7%, and amounted to RUB 5.9 bln due to effective sales scheme.

Total loan portfolio increased by RUB 17.5 bln (+20.6%) and exceeded RUB 102 bln since January 1, 2013. Assets amounted to RUB 168.4 bln increasing by RUB 26 bln (+18%) since the beginning of this year.

As a result of growth of retail deposits during the first half of 2013 funding base of UBRD has increased by RUB 25.9 bln (+19.7%) reaching RUB 157.4 bln. As of July 1, 2013 the volume of retail deposits amounted to RUB 70 bln, growing by RUB 10 bln (+16%) compared to the beginning of 2013. The volume of corporate depositsincreased by RUB 7.2 bln (+43.8%) and reached RUB 23.6 bln. Funding base was diversified through the issuance of exchange bonds of RUB 2 bln, Euro-commercial papers of USD 50 mln, and debut issue of subordinated Eurobonds of USD 68 mln, which allowed UBRD to increase both the funding base and the capital.

High growth rates of H1 2013 were provided as well by substantial inflow of customers. Customer base of UBRD was about 689 thsd active clients as of January 1, 2013, while as of July 1, 2013 the Bank had more than 765 thsd active clients. In particular, the number of customers-entrepreneurs increased by 2.7 thsd, and the number of individuals increased by 73.4 thsd. During the year the total number of clients increased 164.3 thsd (+27%).

As a result of the growth of the bank’s main indicators pre-tax profit increasedby 58.2% and totaled RUB 744.5 mln in H1 2013.

The bank’s equity increased from RUB 12.9 bln up to RUB 15.7 bln (+21.7%) mainly due to operating income and subordinated Eurobond issue. As a result, according to the rating of Banki.ru, UBRD enters Top-50 Russian banks in terms of equity and keeps leading position among the banks in Sverdlovsk region. Equity growth provides UBRD a safety margin for the further development of the business within its strategy “3-2-3”, which assumes the growth of network by three times, number of clients by two times and the Bank’s income – three times up to 2015.

Network of UBRD has grown substantially. As of July 1, 2013, the Central Bank of the Russian Federation has registered 416 bank’s branches. During only last three months the bank opened 59 new points of sale of various formats in 39 regions of Russia. Today UBRD has offices in 62 regions of Russia. The bank’s ATM network exceeded 1,000 units and has 1,019 units as of July 1, 2013.

“UBRD shows positive trend in all key indicators for the past two years. UBRD will continue to concentrate its efforts in the mass segment providing services for retail and SME customers. We expect assets to reach RUB 190 bln by the end of the year mainly due to increase in retail loan portfolio, which as we plan to exceed RUB 60 bln by the end of this year. The basis of the funding base will continue to be retail deposits. Intensive development of retail business confirms high penetration of banking services; more often we notice that one customer uses several products. Although the competition in retail sector is growing, we understand the perspective sources and channels for growth, and thus, we are confident in the potential development of the financial sector over the next few years,” –  said Anton Solovyev, President of UBRD.

01.07.2013

On June 27, 2013 Ural Bank for Reconstraction and Development has placed it’s debut subbordinated 5.5-year Eurobonds in the amount of USD 68 mln. Raised funds are directed to the Bank’s capital.

“Today, our growth is outpacing the growth of the banking system, so additional funds are crucial for the smooth development, - says Anton Solovyov, President of UBRD. - The placement contributes to a level of capital adequate to support further growth.”

“We have completed another successful transaction in the international market, and of course we will continue strengthening our presence in the capital markets”, - said Sergei Sisoshvili, Vice-President, International Business of UBRD.

Eurobond placement was made through UBRD Capital Ltd. (Ireland). The Joint Lead Managers of the transaction were BCP Securities, BNP Paribas and Sberbank CIB.

17.06.2013

Not for Distribution in or into the United States or to U.S. Persons

Joint Stock Company "The Ural Bank for Reconstruction and Development" ("UBRD"), rated B (stable) by S&P, has mandated BCP Securities, BNP Paribas and Sberbank CIB as Joint Lead Managers and Bookrunners to arrange a series of fixed income investor meetings in Europe, commencing on June 18th. A US$ Reg S Tier 2 offering may follow, subject to market conditions. FCA/ICMA stabilisation.  

Not for distribution, directly or indirectly, in or into, the United States, Canada, Australia, Japan or any other jurisdiction where to do so would be unlawful. Nothing in this communication shall constitute an offer to sell or the solicitation of an offer to buy securities in the United States, Canada, Australia or Japan or any jurisdiction in which such offer or sale would be unlawful. The offering and the distribution of this communication and other information referred to herein may be restricted by law and persons into whose possession this communication or such other information comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.  

The Securities have not been and will not be registered under the U.S. Securities Act of 1933 (the “Securities Act”) or under any securities laws of any state or other jurisdiction of the United States and may not be offered, sold, directly or indirectly, within the United States or to U.S. Persons except pursuant to an applicable exemption from, or a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. The Securities are being offered outside the United States to non-U.S. Persons in offshore transactions in reliance on Regulation S under the Securities Act.  

This communication is not being made, and this communication has not been approved, by an authorised person for the purposes of section 21 of the Financial Services and Markets Act 2000, as amended (the "FSMA"). Accordingly, this communication is not being distributed to, and must not be passed on to, the general public in the United Kingdom or to persons in the United Kingdom save in circumstances where section 21(1) of the FSMA does not apply. This communication is being distributed on the basis that each person in the United Kingdom to whom it is made available or at whom it is directed is (i) an investment professional within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) of the United Kingdom (the "Financial Promotion Order"); (ii) a person within Articles 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc.") of the Financial Promotion Order; or (iii) any other person to whom it may otherwise lawfully be communicated by virtue of an exemption to section 21(1) of the FSMA or otherwise in circumstances where it does not apply (all such persons together being referred to as "relevant persons"). This communication will be made, available only to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire securities will be engaged in only with, such relevant persons. No other person should rely or act upon it. This communication is not intended for distribution to and must not be passed on to any retail client.  

This announcement or information contained therein is not an offer, or an invitation to make offers, to sell, exchange or otherwise transfer securities in the Russian Federation to or for the benefit of any Russian person or entity and does not constitute an advertisement or offering of securities in the Russian Federation within the meaning of Russian securities laws. Information contained in this announcement is not intended  for any persons in the Russian Federation who are not "qualified investors" within the meaning of Article 51.2 of the Federal Law no. 39-FZ "On the Securities Market" dated 22 April 1996, as amended (the "Russian QIs") and must not be distributed or circulated into Russia or made available in Russia to any persons who are not Russian QIs, unless and to the extent they are otherwise permitted to access such information under Russian law. The Notes have not been and will not be registered in Russia and are not intended for "placement" or "circulation" in Russia (each as defined in Russian securities laws) unless and to the extent otherwise permitted under Russian law.  

In member states of the European Economic Area, this announcement is directed only at persons who are "qualified investors" within the meaning of article 2(1)(e) of Directive 2003/71/EC (the "Prospectus Directive"). This announcement is an advertisement for the purposes of applicable measures implementing the Prospectus Directive.  

A credit rating is not a recommendation to buy, sell or hold the securities and such credit rating may be subject to suspension, reduction or withdrawal at any time by the relevant rating agency. 

17.05.2013

  • Since the beginning of this year the UBRD's assets increased by 8.3%: by April 1, 2013 assets exceeded RUB 154 bln (January 1, 2013:  RUB 142 bln).
  • Equity has increased by 5.9% from RUB 12.9 bln to RUB 13.6 bln. The capital adequacy ratio (H1) was 10.79% which is above the minimum level of requirement criteria of Central Bank of Russia – 10%.
  • Net income reached RUB 320.2 mln.
  • On February 7, 2013 UBRD issued debut Euro-Commercial Papers for the amount of USD 50 mln.
  • On February 28, 2013 the Bank attracted a second tranche of subordinated debt in the amount of USD 20 mln with maturity of six years. Earlier, in December 2012, UBRD received the first tranche of a total amount of USD 30 mln.

During Q1 2013 total loan portfolio showed an increase of 4.5% (April 1, 2013: RUB 88.6 bln, January 1, 2013: RUB 84.7 bln). Corporate loan portfolio increased by 4.4% compared to Q4 2012 and exceeded RUB 41 bln (January 1, 2013: RUB 39.5 bln). Retail loan portfolio increased by 2.7% and amounted to RUB 37.5 bln by 1 April 2013 (January 1, 2013: RUB 36.5 bln).

Funding base maintained growing trend as well. As of April 1, 2013 customer account balances exceeded RUB 101.7 bln (January 1, 2013: RUB 95.6 bln), with balances of corporate clients increased to RUB 31.3 bln. And retail deposits were RUB 65.1 bln ( January 1, 2013: RUB 60 bln).

During the first three months of 2013 the total number of active clients of the Bank has also increased considerably: from 688,986 to 717,430 customers. UBRD provided loans to more than one million private customers: as of March 1, 2013 UBRD has provided 1,013,226 loans.

During the first quarter UBRD opened 55 new offices covering the most part of regions in Russia. The Bank entered markets of the Republic of Kabardino-Balkaria, Karelia, Mordovia and Sakha (Yakutia), Primorye Territory, Arkhangelsk, Vologda and Tambov regions. On April 1, the Central Bank of Russia has registered 357offices; ATM network increased by 66 units to 966 ATMs.

The first quarter of the year was successful for the Bank in terms of business performance indicators. Good results were achieved in the corporate business: by April 1, 2013 we have fixed the maximum current account balances of our clients. Retail business as well showed very good results with 40% increase. During January – March 2013 Russian credit organizations earned a profit of RUB 239.4 bln, which is 10.6% less than the same period in 2012. Thus, the Bank continued to grow faster pace of the banking sector, says Anton Solovyov, President of UBRD.

18.04.2013

NOMOS-BANK and Promsvyazbank have announced the successful closing of the book of Series BO-05 Bond Issue of UBRD.

The bid book for bond placement was closed at 17:00 Moscow Time on April 17, 2013.

During t marketing the coupon rate was set at the range between 11.00 - 11.25% per annum, which was lower then initial rate of 11.15 - 11.65% per annum. Investors have made the offers within the coupon rate range from 11.00% to 11.50% per annum. Final coupon rate was set at 11.15% per annum. The RUB 2 bln bond issue was oversubscribed by more than two times with total demand equaling more than RUB 5 bln.

Considering the demand on the market UBRD has decided to accept offers from 53 investors. In addition to the Lead Arrangers, NOMOS-BANK and Promsvyazbank, the bond placement sindicate included 23 participants.

Co-Arrangers: OJSC “Bank “Rossiya”, “Element” (LLC); “BC REGION” (LLC).

Underwriters: “Asian-Pacific Bank” (OJSC); OJSC Bank ZENIT; JS “INTERPROGRESSBANK” (CJSC); Commercial Bank “Koltso Urala” (LLC); OJSC Commercial Bank “EurocityBank”, “VELES Capital Investment Company” (LLC); RONIN Investment Company (LLC).

Co-Underwriters: Commercial Bank “EUROTRUST” (CJSC), JSC “Coalmetbank"”, Commercial Bank “ARESBANK” (LLC), SB Bank (LLC), Joint Stock Commercial Bank “Avangard”, OJSC “ROST” BANK, CB “International Bank of Development” (CJSC), CB “Khlynov” (OJSC), CB “Expert Bank” (CJSC), “M2M Private Bank” (OJSC), Joint Stock Commercial Bank “Sprut”, RWM Capital Asset Management, Bank “Petrocommerce” (OJSC).

UBRD’s RUB 2 bln bond issue of Series BO-05 was admitted to trading on MICEX March 29, 2013 (the identification number of the issue – 4B020500429B). The interest rate for the second coupon has been set and is equaled to the interest rate for the first coupon (put option – 1 year). The coupon will be redeemed twice a year.

It should be pointed out that the placement of the bonds of Series BO-05 will take place on MICEX April 19, 2013.

Issuer has credit rating of “B” (Stable) from Standard & Poor's. Bond issue BO-05 meets the requirements and is eligible to be included in the Bank of Russia Lombard List. As of today, the issuer has two rouble bonds issues which are in the market circulation: bonds Series 02 (RUB 2 bln.) and bonds Series BO-01 (RUB 2 bln.). All securities are traded on MICEX in the List В and are included in the Lombard List and List of securities accepted as collateral under repurchase agreements (REPO) of the Bank of Russia.

22.03.2013

National Rating Agency confirmed UBRD's AA- credit rating on a national scale with a «positive» outlook.

National Rating Agency confirmed the individual credit rating of Ural Bank for Reconstruction and Development at AA- level on a national scale and changed outlook to "positive". According to Mr. Vladimir Zotov, Head of Financial Institutions and Investment Services, this improvement of outlook reflects positive dynamics of financial indicators of UBRD and Bank's capitalization by existing shareholders.

"UBRD effectively implements the model aimed at rapid growth of business and financial performance through active regional expansion and growth of retailing component. The Bank is one of the largest financial organizations in the country by the regional network, the number of retail clients, the volume of transactions in retail lending, payments via plastic cards, the number of own ATMs. The Agency positively assess the ability of shareholders of the Bank to maintain adequate capital and the consistency with which the Bank is implementing its development strategy. The Agency sees an opportunity to increase the Bank's rating and assigned a "positive" rating outlook. Subject to maintaining stable asset quality indicators, liquidity and capital adequacy, in the event of further successful implementation of the strategy of the Bank this forecast can be implemented by the Agency", says Maxim Vasin, Senior Analyst of NRA.

As stated in the official report of the Agency, by implementing the medium-term development strategy for the period up to 2015 UBRD is becoming a major credit institution at the federal level. Thus, in 2012, the Bank made a rebranding, adjusted internal procedures, developed new products and improved long-term approach to working with clients. The result recorded a substantial growth in sales of banking products and services. As of February 2013 an increase in deposits was around RUB 1.5 bln, in loans to individuals –  RUB1.7 bln. In addition, over the past year UBRD doubled the number of regions of presence from 21 to 44. And Bank’s equity currently stands at RUB 13.6 bln.

13.03.2013

At the end of February 2013, The Ural Bank for Reconstruction and Development has received a second tranche of subordinated loan in the amount of USD 20 mln with the term of 6 years. Earlier, in December 2012, the Bank has received the first tranche of a total of USD 30 mln.

As a result of these measures UBRD has managed to increase additional capital thereby increasing the total capital as well during two months of this year from RUB 12.9 bln as of January 1, 2013 to RUB 13.6 bln as of March 1, 2013.

Sergei Sisoshvili, Vice-President, Head of International Markets, said that subordinated loan had a positive impact on the growth of capital adequacy and the possibility of growth of bank assets in the future.
"Long-term funding is another evidence of the growing confidence of foreign investors in UBRD", he said.

13.03.2013

At the end of February 2013, The Ural Bank for Reconstruction and Development has received a second tranche of subordinated loan in the amount of USD 20 mln with the term of 6 years. Earlier, in December 2012, the Bank has received the first tranche of a total of USD 30 mln.

As a result of these measures UBRD has managed to increase additional capital thereby increasing the total capital as well during two months of this year from RUB 12.9 bln as of January 1, 2013 to RUB 13.6 bln as of March 1, 2013.

Sergei Sisoshvili, Vice-President, Head of International Markets, said that subordinated loan had a positive impact on the growth of capital adequacy and the possibility of growth of bank assets in the future.
"Long-term funding is another evidence of the growing confidence of foreign investors in UBRD", he said.

13.02.2013

The Banker journal has published review of banking industry in Russia, where The Ural Bank for Reconstruction and Development took fourth place among the top-10 Russian banks showing the highest growth rates. The key indicators used by analysts of the journal were the size and change rate of Tier I capital.

In 2012 UBRD has shown growth in all business areas. Assets of the Bank grew 41% to RUB 142.4 bln, equity increased by 33% to RUB 12.9 bln, while the capital adequacy ratio 11, 01%. UBRD has also doubled the number of regions of its presence broadening its network to 397 offices.

Moreover, last year the Bank began actively develop its international relations. Thus, the total financing of foreign trade contracts has doubled up to USD 200 mln in 2012.

To remind, by 2015 and according to its 3.2.3 Strategy UBRD plans to triple office network and net operating income, and double the number of clients.

06.02.2013

In 2012 the Ural Bank for Reconstruction and Development met all key objectives set, while the targets have been already achieved by November 2012.

The Bank's assets grew 41% in 2012 totaling RUB 142.4 bln, equity increased to RUB 12.9 bln (+33%) by January 1, 2013.

Capital adequacy ratioof 11.01% has exceeded the minimum benchmarks set by both the Management of UBRD (11%) and the Central Bank of Russia (10%). However, it ped by 0.59% as compared to 2011 due to the rapid growth of assets and as a consequence of the overall market situation in the past year.

Pre-tax profitfor the year 2012 increased by 12.5% to RUB 1.4 bln. Accrued dividends totaled RUB 300.4 mln for nine months of 2012

“Primarily, the Bank reached these targets with improved efficiency of business processes and the consistent implementation of the ‘3-2-3’ strategy approved in 2011. In 2012 UBRD pursued rebranding campaign, updated internal procedures, developed innovative products and improved client service approach based on the more than 20 years expertise. As a result we have recorded a significant increase in sales”, says Anton Solovyev, CEO of the Bank

Retail loan portfolio increased by 80% (from RUB 20.3 bln in 2011 to RUB 36.5 bln in 2012). The largest share of it still accounts for by unsecured lending (94.4%), which has increased by 78.9% during the last year. Corporate loan portfolio of UBRD grew by more than 38% to RUB 44 bln in 2012.

Given the growth of lending volume of 2.5 times in two years the total share of problem loans has declined to 4.65% (5.91% in 2010, 5.63% in 2011).

Aggregate customer accounts balances have increased over the past year by 36.9% (RUB 95.7 bln). The individuals’ accounts balances have exceeded RUB 66 bln, which is 34.4% more compared to last year, and corporate clients’ accounts were RUB 29.7 bln (+43%).

During 2012 the Bank has issued more than half a million of plastic cards, and the number of active cardsexceeded one million pieces. The number of credit cards with a grace period has increased by more than 26%, and debit cards by 19.7%.

Last year UBRD significantly expanded its network: the total number of offices reached 397. During the year the Bank has opened three branches in Novosibirsk, Krasnodar, and St. Petersburg. As of January 1, 2013 UBRD’s offices operate in 44 regions of the country. Thus, the number of regions of presence has almost doubled as compared with 2011. So far, the Bank’s network covers all federal districts of the country. In the meantime, the ATM network has been increased to 902 (+24%).

Number of employees increased by 40% over the year: currently, the Bank has more than 5500 people. During 2012 the Bank carried out a review of the salary level, which has resulted in the salaries of certain categories of employees have been revised upwards. According to the information analytical service of web portal Banki.ru UBRD tops in terms of salary in the Sverdlovsk region as of the first nine months of 2012.

The leading positions of the Bank in 2012 were confirmed by studies of leading Russian information and rating agencies:

Portal Banki.ru ranks UBRD:

  • #26 by retail deposits;
  • #40 by net assets;
  • #41 by loan portfolio.

 Interfax-100 ranking:

  • #27 by deposits;
  • #40 by assets;
  • #56 by equity.        

In May 2012 the National Rating Agency confirmed the individual credit rating at AA- national scale. In October Standard and Poor`s affirmed the Bank’s BB rating with stable outlook, national scale rating at ruA-

02.02.2013

The total order book for debut Euro-Commercial Paper issue was closed on Thursday, January 31, 2012, with USD 50 mln. Overall demand exceeded twice the announced volume underscoring investors’ appetite. Names of investors from Russia, Switzerland, Luxembourg, and other European are listed among the participants. The ECP Programme totaling USD 200 mln was arranged by BCP Securities, LLC and VTB Capital.

“The Bank plans to continue active funding in Russian and International Capital Markets. This promotes UBRD entering international markets, expansion of international creditors’ base and diversification of liabilities given that the Bank’s portfolio includes large share of consumer loans and credit cards, a short-term funding, which is in line with duration of assets”, says Sergey Sisoshvili, Vice President, International Markets and Financial Institutions.

 Next issues under this Programme are scheduled for 2013-2014.

15.01.2013

The total volume of the trade finance portfolio of the Ural Bank for Reconstruction and Development approached USD 200 mln by the end of 2012.

“The Bank’s active position in international markets during difficult macroeconomic conditions emphasizes the confidence of foreign creditors in UBRD and contributes to economic development in all regions of presence of UBRD”, says Sergey Sisoshvili, Vice President, International Markets & Financial Institutions.

UBRD’s partners include Deutsche Bank AG, Commerzbank AG, VTB Bank (Deutschland) AG, BHF-Bank Aktiengesellschaft, Banque de Commerce et de Placements SA, UniCredit SpA, Nordea Bank AB, Fifth Third Bank, and others. The Bank will continue developing relationship with other international financial institutions such as Raiffeisen Bank International AG, Credit Suisse AG, UBI Banca, and London Forfaiting Company Ltd.

14.12.2012

The Ural Bank for Reconstruction and Development takes a lead in the list of professional players in the securities market of Yekaterinburg and Sverdlovsk region by results for the nine months of 2012, according to Delovoi Kvartal Magazine.

The Bank’s turnover from its broker-dealer activities in Yekaterinburg and Sverdlovsk region during this period totaled over RUB 2 trillion (123% increase compared to results of 2011).

According to the magazine, as of November 1, 2012 there are 22 companies, including 10 banks, holding a license to operate as a professional participant of the securities market in Yekaterinburg and Sverdlovsk region. The aggregate turnover of the securities market participants registered in the region amounted to over RUB 6 trillion for the nine months of 2012. Meanwhile UBRD had 30.5% share of the total turnover.

29.11.2012

Mr. Anton Solovyev, President of the Ural Bank for Reconstruction and Development, won the The Banker of the Year nomination in the Person of the Year annual award organized by Delovoi Kvartal Magazine (Yekaterinburg). The award ceremony was held at the State Academic Theatre of Opera and Ballet on November, 28 in Yekateriburg.

Person of the Year is a unique regional award, winners of which are determined by the representatives and experts of business society of the city. The Person of the Year is awarded to the senior executives working in Ural region for the professional achievements that effect sector’s growth, for implementation of innovative projects and technologies, support of social projects of the city and the region.

“This award is, no doubt, one of the most prestigious one. It marks high achievements not only of company’s executive officer, but of the whole team.  For the last two years UBRD made a great step forward: we have expanded our retail outlet network to 270 in all regions of Russia, we have made all business processes more technological, and have improved all main indicators of Bank’s performance. And the forthcoming 2013 will be no less intense and rich in new projects. Surely, in 2013 our developments will be highly appraised by business society, and more importantly by our clients”, says Anton Solovyev, President of UBRD.

28.11.2012

As of October 1, 2012 the Ural Bank for Reconstruction and Development holds 39th position in the ranking Top 200 Largest Russian Banks by Net Assets released by Kommersant DENGI Magazine.

UBRD occupies 27th spot in the list of Top 100 Largest Private Banks (by equity size) and in the list of Top Retail Banks, also released by DENGI Magazine. 

19.11.2012

As of the first nine months of 2012 the growth of key performance indicators of the Ural Bank for Reconstruction and Development has exceeded the average development rate of the Russian banking system.

Since the beginning of the year shareholders' equity was significantly increased up to RUB 12,130 bln (+25.3%, while the banking system average is 7.7%). as of October 1, 2012 the Bank's assets totaled RUB 126,9 bln increasing by 25.9% since the beginning of the year, and by 19.1% in the third quarter (the national average is 10.2% and 3.6% respectively). Thus, the assets of UBRD growth two and a half times faster than the in the banking system in the first nine months of 2012, and five times - in the third quarter. Net income of UBRD amounted to almost RUB 1 bln for the same nine month period.

Asset growth is mainly driven by a significant increase in the loan portfolio of UBRD (as of October 1, 2012 RUB 74 bln, the increase in the first nine months is 30.7%, and for the third quarter is 11%). Good growth rates is demonstrated by the SME loan portfolio (63.1% YTD) reaching almost RUB 4 bln by the end of the third quarter. As of October 1, 2012 the retail loan portfolio was RUB 30,5 bln (+50.3% YTD), while the share of loans to individual enterpreneurs in the total loan portfolio has increased from 35.8% in the beginning of the year to 41.2% as of the first nine months 2012. And the number of active cards exceeded 1 million.

The liabilities side shows certain dynamics as well. In particular, as of October 1, 2012 retail deposits reached RUB 54,2 bln, growing since the beginning of the year by 19.7%, and in the third quarter by 5.4%  (the average rates of the banking sector are 1.8% and 10% respectively). Corporate accounts for the third quarter amounted to RUB 22,4 bln (+7.8% YTD and 16.4% compared to the second quarter), while the banking sector growth rate is 4.6% and 1.5% respectively.

“Performance of UBRD during the three quarters has showed that the chosen business model and strategy of the bank are right. Now, as of October 1, 2012 we have already achieved many targeted indicators planned for the year”, said  Mr. Anton Solovyov, President of UBRD.

14.11.2012

On October 15, 2012 the Ministry of Finance of Sverdlovsk region held open electronic auction. There were three lots for bidding: opening and  maintenance of deposit accounts,  and fundraising of  regional budget of Sverdlovsk region into deposits.

The Ural Bank for Reconstruction and Development has made the best offer and won a tender for the state 12-months contract up to RUB 1 bln.

 “Raising public funds strengthens positions of UBRD in the market. Furthermore, funds of the regional budget remain in the region and this improves the investment climate of the Sverdlovsk region”, says Mr. Evgenii Lubimov, head of external sales division.

08.11.2012

The secondary offering of RUB bonds of the Ural Bank for Reconstruction and Development, UBRD 02, was closed on November 7, 2012 on the MICEX Stock Exchange. Bonds presented by the holders have been sold in the secondary market in full. This secondary offering was arranged ​​by Promsvyazbank, which has aslo been the arranger of the initial offering of this issue in April 2011.

During the session seven deals were closed resulting in 553,936 bonds sold at par totaling in RUB 555,509,178.24, the amount received on November 2, 2012 for the offer. Moreover, in the secondary market the issue was oversubscribed twice and amounted to 1.134 mln bonds.

Currently there are two bond issues outstanding: commercial papers UBRD BO-1 and bonds UBRD  02 with a total nominal value of RUB 4 bln (RUB 2 bln each, and both placed with oversubscription) with annual and semiannual coupon payments respectively. There are three more commercial paper bonds registered for a total amount of RUB 8 bln to be placed in 2013 given favorable market environment.

30.10.2012

Overall amount  paid was RUB 9,526,000 with RUB 47.63 per one bond with a face value of RUB 1,000.

UBRD’s bond issue of series 02 for the total amount of RUB 2 billion was placed on the MICEX Stock Exchange in April 2011. Bonds are included in the Lombard list of the Bank of Russia, which allows bondholders to obtain refinancing in the Central Bank.

Current fourth coupon was announced by the Issuer of 11.5% per annum, which is RUB 57.66 per bond. After repayment of the fourth coupon a put option is offered to bondholders due in May 13, 2013.

Earlier on October 2, 2013 UBRD has placed a first bond issue of serie BO-1 for RUB 2 billion. 40 primary investors participated in the placement and the demand for the bonds has exceeded supply by 25%. Thus, at present two RUB bond issues with the annual and semi-annual duration are outstanding. Three more bond issues for the total amount of RUB 8 billion are registered, which are planned to be placed in 2013.

26.10.2012

International rating agency Standard & Poor’s affirmed the credit rating of the Ural Bank for Reconstruction and Development at the level B/B with stable outlook. Agency analysts marked the Bank’s good market position and assessed liquidity as adequate. “We expect that in the medium term UBRD will maintain a relatively high proportion of liquid assets that would provide it some cushion in the event of a moderate reduction in liquidity”, says the release of the Agency.

The report notes that in the medium term UBRD can expect an increase in assement on a number of items, in particular, risk management. “The upgrade is likely to be due to a sustained improvement in diversification of the loan portfolio and the steady increase in the quality of assets to the industry average level,” states the release.

Analysts marked the Bank’s plans to increase the share of retail loans in the portfolio from 41% (as of September 1, 2012) to two-thirds of total loans in 2015. “We believe that the successful implementation of this strategy will allow the Bank to increase the diversification of operations and improve the ability to generate profit”, said in the press release. It should be recalled that according to the development strategy during next three years UBRD plans to double the number of customers to one million, triple the number of offices up to 550 sales points, and increase net operating income from 13 to 45 billion rubles.

03.10.2012

The Ural Bank for Reconstruction and Development closed the placement of bonds (series BO-1) at 100% of face value for a total of RUR 2 bln with the first and the second coupon period at 12.5% on October 2, 2012.

Arrangers of the issue, Bank Uralsib and Russian Agricultural Bank, held bookbuiding from 24 to 28 September 2012 resulting in 41 bids on the coupon yield in the range of 12.25%-12.5% ​​p.a. The initial demand has exceeded supply and amounted to RUR 2.5 bln.

On Octoner 2, 2012 47 deals were concluded, the whole issue was placed among the initial investors.

“I think that the placement rate is adequate. The large number of investors shows that the placement of the loan was market-based. The investors have an appetite for bank risk. Therefore, we expect a good enough investment activity in this issue in the secondary bidding”, said Mr. Vladimir Zotov, Head of CIS FI and Investment services.

The Ural Bank for Reconstruction and Development (UBRD), incorporated in September 1990 as a regional bank for development of business providing services to both corporate and retail customers, is the largest bank in the Ural region of Russia. It is listed among TOP-30 Russian banks by CBR.

Nationally, the Bank is ranked #35 by net assets and #24 by private deposits as at 1 January 2015.

UBRD is assigned “B-” (Stable outlook) credit rating from S&P and “AA” from National Rating Agency.

Extensive network (TOP-10 in Russia) with 158 branches and full service offices plus 280 additional offices covering 57 regions in the Russian Federation.

The Bank provide services to >44,000 corporate clients and >960,000 retail clients with longstanding credit histories with the Bank.

Anton SOLOVYEV

PRESIDENT OF THE BANK, CEO

Alexei KROKHIN

VICE PRESIDENT, MEMBER OF MANAGEMENT BOARD

Yuri MIRONOV

VICE PRESIDENT, HEAD OF OPERATIONS & IT, MEMBER OF MANAGEMENT BOARD

Alexei OVCHINNIKOV

VICE PRESIDENT, HEAD OF RETAIL BUSINESS, MEMBER OF MANAGEMENT BOARD

Alexei IKRYANIKOV

VICE PRESIDENT, HEAD OF CORPORATE BUSINESS, MEMBER OF MANAGEMENT BOARD

Alexander PLASTININ

VICE PRESIDENT, HEAD OF TREASURY, MEMBER OF MANAGEMENT BOARD

Marat SIRAZOV

VICE PRESIDENT, MEMBER OF MANAGEMENT BOARD

Shareholder

Percent of shares

Igor A. Altushkin

Citizen of the Russian Federation

29,9999

Vladimir V. Pechenenko

Citizen of the Russian Federation

19,9989

Alexander V. Semkin

Citizen of the Russian Federation

19,9989

Sergey V. Skubakov

Citizen of the Russian Federation

15,8656

Irina N. Gaivoronskaya

Citizen of the Russian Federation

13,2763

B-

Long-term counterparty credit rating

B

Short-term counterparty credit rating

ruBBB

National scale

Negative

Outlook

Statutory documents

Name

License number

Issuing authority

Date of issue

Validity period

General license for banking operations

429

Central Bank of the Russian Federation

06 February 2015

Unlimited

License to conduct banking operations with precious metals

429

Central Bank of the Russian Federation

06 February 2015

Unlimited

License of a proffesional securities market participant for dealer activities

166-03591-010000

Federal Financial Markets Service of Russia

07 December 2000

Unlimited

License of a proffesional securities market participant for broker activities

166-03488-100000

Federal Financial Markets Service of Russia

07 December 2000

Unlimited

License of a proffesional securities market participant for depository activities

166-04114-000100

Federal Financial Markets Service of Russia

20 December 2000

Unlimited

License of a proffesional securities market participant to carry out securities management activities

166-03684-001000

Federal Financial Markets Service of Russia

07 December 2000

Unlimited

License of exchange intermediary for future and option transactions trading

1293

Federal Financial Markets Service of Russia

16 December 2008

Unlimited

Public Joint Stock Company «The Ural Bank for Reconstruction and Development» / UBRD PJSC

Address

67 Sakko i Vantsetti Street, Ekaterinburg, 620014

SWIFT code UBRDRU4E
Telex 721020 UBRR RU
Reuters Dealing code UBRD

Currency

Correspondent Bank

SWIFT code

Account #

EUR

COMMERZBANK AG

FRANKFURT/MAIN, GERMANY

COBADEFF

400886875400 EUR

GBP

CREDIT SUISSE

ZURICH, SWITZERLAND

CRESCHZZ80A

0835-0902577-34-002

USD

DEUTSCHE BANK TRUST COMPANY AMERICAS

NEW YORK, USA

BKTRUS33

04453488

CHF

BANQUE DE COMMERCE ET DE PLACEMENT,

GENEVA, SWITZERLAND

BPCPCHGG 10.604474.0.100CHF
CNY

BANK OF CHINA (ELUOSI)

BKCHRUMM

30109156400000000052

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