VTB 24 is a major retail bank wholly owned by state-controlled VTB (the former Vneshtorgbank) and serves as the VTB group’s retail and small-business specialist. The Bank has an extensive service network and is a leader in virtually all segments of the retail market, including deposits and mortgages.

Credit Bank of Moscow (CBM) is a larger (by assets) private-sector Moscow bank controlled by its own President, Roman Avdeev. Operations with corporate clients (including integrated services for major retail chains in the Moscow region) are its core line of business but the Bank is gradually diversifying into retail. Market positions in retail deposits and corporate loans are healthy and the Bank has considerable experience working with foreign partners. Speculative activity is moderate.

BNP Paribas Vostok is a mid-sized (by assets) bank and a subsidiary of France-based BNP Paribas, a major international financial group. Operations centre on loans for small and mid-sized businesses, most of which are located in Moscow. The Bank is not active in speculative markets and has been functioning as a member of the BNP Paribas group since early 2008.

GE Money Bank is a mid-sized private-sector bank and the Russian arm of GE Money, a General Electric subsidiary. In accordance with its parent company’s profile it specialises in consumer loans and up until the start of the current crisis saw dynamic growth. The Bank is financed by loans from its parent group and has a moderately dense and geographically diverse distribution network. Its business benefits from GE’s experience, business ties and quality standards.

Bank Tavrichesky is a mid-sized private-sector bank that operates mainly in St. Petersburg and the surrounding Leningrad region. The bulk of equity is controlled by a large group of private individuals; SpareBank 1 Nord-Norge, a major Norwegian bank, holds a minority stake. Operations focus on serving larger and mid-sized corporate clients and their employees. Financial and securities market activity is minimal. The Bank’s strategy calls for expanding its corporate business and developing a retail presence with an emphasis on personal deposits and plastic card services.

FundserviceBank is a mid-sized private-sector joint-stock bank controlled by its President, Alexander Volovnik. Operations focus on corporate services and the Bank has a strong client base in several regions; a clear sectoral focus on the aerospace and defence industries reflects partnerships with the responsible government bodies. Retail development has largely been confined to payroll projects and funding drawn from the employees of corporate clients.

Kuban Credit is a mid-sized (by assets) private-sector regional bank that operates in the Krasnodar region. Its core line of business is corporate loans, some of which are extended to companies controlled by its owner. Retail activity has been growing since 2001, with an emphasis on deposits, payments and plastic cards. The Bank has a well-established network of sub-branches in its home region and is a leading player in all key segments of the local market. Speculative activity is negligible and interbank loan volumes minimal.

NBD is a smaller private-sector regional bank in which the European Bank for Reconstruction and Development holds an equity stake. Business projects centre on small or mid-sized firms and are backed by the resources of international financial organisations. The Bank offers a wide range of services and has several sub-branches, mainly in the Nizhegorod region. Financial market activity is modest.

Orient Express Bank (the former Dalvneshtorgbank) is a larger private-sector regional bank whose shareholders include private individuals (S.N. Vlasov, I.V. Kim, A.A. Bekarev and A.A. Taranov) and portfolio investors represented by Renaissance investment funds. Since 2005 its operations have focused on retail services, leading to dynamic growth, and a well-developed service network covers a substantial portion of the country. The Bank has experience accessing public capital markets both domestically and internationally and is moderately active in interbank loans. Etalonbank, another former member of the informal URSA banking alliance, was merged into Orient Express in 2009, followed by the previously-unaffiliated Dvizheniye Bank (Tomsk). Strategy calls for the further consolidation of smaller regional banks and a merger with Kamabank (Perm) is currently in progress.

Russian Standard is a major private-sector bank controlled by businessman Rustam Tariko and the principle asset of the Russian Standard group. Its business is focused on retail loans and up until 2007 saw rapid growth that made the Bank a market leader in this area. In the second half of that year access to foreign credit began to dry up in response to crisis conditions and Russian Standard started cutting back its business. Central Bank loans and retail deposits serve as alternative funding sources. Risks arising from cuts in working loans are offset by securities holdings and claims acquired from third parties.

Sarov Business Bank (SBB) is a mid-sized (by assets) private-sector regional bank controlled by Chairman of the Board of Directors Vladimir Kirienko. The Bank operates mainly in the Nizhni Novgorod region and its business is focused on serving a number of larger corporate clients, the retail market and SME loans. Within its home region SBB’s market positions are solid; it works with some state-sector organisations and is well-connected politically at the local level.

SDM-Bank is a mid-sized (by assets) private-sector bank with an extensive client base whose business is to a large extent focused on services for smaller and mid-sized companies, along with retail deposits. Most service centres operate in the Moscow region; branch activity elsewhere is mainly confined to SME loans. Securities market activity is modest.

AMT Bank (formerly BTA Bank) is a larger private-sector bank in which Kazakhstan’s BTA Bank – a system-critical financial institution active in all segments of its home market and the core of the BTA group – holds a 22.26% stake; a controlling interest of 77.74% is held by non-resident private individuals, including Chairman of the Board Mukhtar Ablyazov (19.77%).. AMT has established a healthy presence in corporate services, its core line of business; is a leader in trade financing; and benefits from a broad range of international ties. It operates a moderately well-developed service network and is actively expanding its presence in retail deposits. Service quality is high and BTA stands out for its advanced technology.
Capital adequacy is high and capital quality healthy. The stability of external funding is dependent on the degree of available Central Bank support and prospects for re-financing or re-extending a substantial volume of CBR loans. Asset quality is low. Financial results for 2009 and the first quarter of 2010 were negative. Overall risk sensitivity is high. Reported liquidity is judged sufficient but potential liquidity risks are high.

Probusiness is a major private-sector bank at the centre of the LIFE financial group, which also includes five regional subsidiaries: Express-Volga Bank (Saratov), VUZ-Bank (Ekaterinburg), Natsionalny Bank Sberezhenii (Ivanovo), Gazenergobank (Kaluga) and Bank24.ru (Ekaterinburg). Its business centres on the provision of complex corporate and personal banking services. Probusiness itself acts as a central treasury, allocating funds across the group, as well as providing integrated technical support and guiding the formation of the service network. The Bank works actively with international financial organisations.

SKB is a mid-sized (by assets) regional universal bank and one of the largest in the Sverdlovsk region. Principal beneficiary owner Dmitri Pumpyanski also controls the Sinara Group and TMK; the EBRD holds a blocking stake. The Bank has historically enjoyed close ties to the local authorities and operates an extensive service network with a wide client base drawing on large and medium-sized regional businesses, their employees and the general population. Its market positions in retail and SME services are well developed at the regional level.

Avangard is a medium-sized (by assets) private-sector bank with solid and moderately well-developed market positions. Core lines of business include leasing (channelled in part via specialist subsidiary companies) plus corporate and personal loans. The Bank’s principal shareholder, Kirill Minovalov, also owns Russia’s largest malt production holding. Avangard works closely with foreign financial institutions and is an active player on the domestic interbank market.

Gazenergobank is a smaller (by assets) private-sector regional bank and a member of the LIFE group, which also includes Express-Volga Bank (Saratov), VUZ-Bank (Ekaterinburg), Natsionalny Bank Sberezhenii (Ivanovo), Bank24.ru (Ekaterinburg) and Moscow-based ProbusinessBank, the major national financial institution at the head of the group. Gazenergobank itself focuses on loans and other services for corporate and retail clients, mainly in the Kaluga region, and its market positions at the regional level are moderately well-developed. The Bank is not active in the speculative markets.

Bank24.ru is a medium-sized private-sector regional bank that since early December 2008 has been part of the LIFE group, which has loan offices and other service locations in several regions of the country; other members include VUZ-Bank (Yekaterinburg), Express-Volga Bank (Saratov), Natsionalny Bank Sberezhenii (Ivanovo) and Gazenergobank (Kaluga), as well as ProbusinessBank, the major Moscow-based financial institution at the head of the group. Retail operations, particularly deposits and card-based services, are Bank24.ru’s priority line of business.

BystroBank is a mid-sized (by assets) private-sector regional bank whose dominant shareholders also control OAO Mobilbank. Retail operations are its core line of business and most activity takes place in the Republic of Udmurtia, where its market positions appear well-developed and reasonably solid. Current plans call for expansion of the service network, mainly into neighbouring regions.

Chelindbank is a medium-sized private-sector regional bank controlled by senior management; the RenFin II investment fund holds a minority stake, as do several other private and institutional investors. The Bank’s core line of business is serving industrial firms, small and mid-sized business and retail clients, mainly in Chelyabinsk region. Market positions at the regional level are stable, thanks in part to a recognised brand. The Bank is not active in the speculative markets.

St. Petersburg International Bank (IBSP) is a major regional bank and a market leader in north-west Russia with four branch offices in the Volga federal district and a service centre in Moscow. The Bank is wholly-owned by Russian senator Sergei Bazhanov, who up until April 2009 headed operational management. Its business centres on serving larger corporate clients and IBSP is also an established player in securities and leasing. Ties to international financial organisations are well developed and the Bank is moderately active in the market for retail deposits.

Investbank is a mid-sized (by assets) private-sector bank controlled by Vladimir Antonov that took on its current shape following a merger with Grankombank, Voronezhprombank and Conversbank (the largest of the four financial institutions) in April 2008. Loans and other services for corporate and retail clients are its primary lines of business. Investbank works closely with affiliated financial structures both inside Russia and abroad. Its service network covers Moscow, Kaliningrad, Sverdlovsk, Voronezh and Rostov regions and development strategy calls for energetic growth in retail and small-business loans and services, both in new regions and in areas where the Bank is already present.

Rostpromstroibank is a smaller (by assets) private-sector regional bank controlled by Igor Kim; minority investors include the IFC. The Bank’s business centres on loans and other services for corporate clients, particularly smaller and mid-sized firms. At the same time it is actively developing a retail business in the area of personal deposits and plastic cards and operates a service network within its home region. Securities and interbank market activity are moderate.

Sobinbank is a mid-sized (by assets) bank now owned by St. Petersburg-based Rossia Bank, a major credit organisation that in August 2010 absorbed Gazenergoprombank, a major bank controlled by the Gazprom group. Prior to the merger Rossia Bank’s largest shareholder was Chairman of the Board of Directors Yuri Kovalchuk, with a stake of 30.4%; the owners of a further 30% or so of equity were not publicly disclosed. Sobinbank itself continues to undergo financial rehabilitation in the wake of a sharp decline in creditworthiness triggered by the 2008 crisis, but has begun to develop and expand its market positions as a member of the diversified Rossia Bank Group.

Sotsgorbank is a smaller private-sector bank with solid market positions and controlled by Management Chairman Alexander Dmitruk. Its business centres on retail deposits and SME services, including loans, and the Bank works with a group of affiliated companies in the construction, manufacturing and wholesale/ retail industries. A reasonably well-developed branch network covers the Moscow region and a number of other major Russian cities. Securities market activity and international operations are gradually expanding.

AKB Soyuz is a larger (by assets) credit organisation that in January 2009 was taken over by ZAO Gazfinance, a member of the Gazprom group. Previously it served as the key bank of the Bazovy Element group, a major financial-industrial holding controlled by prominent businessman Oleg Deripaska. Active banking operations have been cut back to virtually nil: although the Bank retains an established presence in retail loans and a wide service network its market share in personal deposits has declined sharply. Securities market activity is moderate.

According to RusRating senior analyst Larisa Makarenko, the rating increase reflects the continuation of healthy development trends even under crisis conditions and a decline in reputation risks.
The rating is based on the Bank’s established business, steady development and a favourable assessment of corporate governance. Constraining factors include high exposure to securities market risks and the large impact of securities and debt market conditions on earnings performance coupled with a heavy dependence for macroeconomic stability.

Ural Bank for Reconstruction and Development (UBRD) is a major private-sector universal regional bank with well-established market positions in retail deposits and brokerage services across the Ural federal district, where it operates an established service network. The Bank is controlled by the owners of the RMK [trs. Russian Copper] group, a leading metal producer, and as before most loans are probably extended to affiliated companies. At the same time UBRD is actively developing an open-market business in personal and SME loans.

Millennium Bank is a smaller (by assets) private-sector Moscow bank that (according to official documents) has been controlled since 2008 by the SK Most Group, RZD Russian Railways’ largest contractor; minority stakes are held by a number of senior Bank executives. The Board of Directors is chaired by RZD Vice-President Oleg Toni and the Management Board by Mikhail Baidakov, an advisor to the President of RZD, while the audit commission is chaired by Russian Federation senator Sergei Scheblygin, who is also an advisor to RZD’s President. The Bank’s core business is the provision of services to RZD operating divisions, subsidiaries and business partners.

VUZ-Bank is a mid-sized (by assets) private-sector regional bank and a member of the LIFE group, which has loan offices and other service locations in several regions of the country; other members include Express-Volga Bank (Saratov), Natsionalny Bank Sberezhenii (Ivanovo), Gazenergobank (Kaluga), Bank24.ru (Ekaterinburg) and Moscow-based ProbusinessBank, the major national financial institution at the head of the group. VUZ-Bank itself focuses on loans and other services for corporate and retail clients, mainly in the Sverdlovsk region, and its market positions at the regional level are moderately well-developed. The Bank is not active in the speculative markets.

AK Bars Bank is a major regional bank and leading market player in the Republic of Tatarstan, where it enjoys the political and financial backing of the regional authorities. Within Tatarstan it operates as a universal bank with an extensive branch network. A recent expansion of the branch network to cover fourty one regions of the country also gives it a presence at the national level. Retail operations are growing.

Khanty-Mansiiski Bank (KMB) is a major regional bank of national significance, the largest in the Tyumen region and the authorised bank of the Khanty-Mansiiski Autonomous Region (KMAR) administration, which for many years controlled the Bank and retains a 44.2% stake. A combined majority interest (51%) is held by the owners of the ICT Group and their partners, the Eurasian Development Bank and the Czech Republic’s PPF Group, which are strategic investors. KMB has an extensive branch network and is a notable player on the interbank market and in trade financing, but the core of its business is serving corporate and retail clients in its home region, as well as local government bodies.

NOMOS is a major private-sector bank whose business centres on loans and other services for major corporate clients. According to the Bank itself, it is controlled by the owners of the ICT Group (an industrial holding) and their partners, with a blocking stake held by the PPF Group (Czech Republic). It is a leader in the financing of gold and silver production plus the export and domestic sale of precious metals, as well as a notable player in investment banking and trade financing.

Alfa-Bank is Russia’s number-one (by assets) private-sector commercial bank (seventh including state-owned players) and a universal financial institution controlled by the Alfa Group, one of Russia’s largest financial-industrial consortia. Its market positions are solid and the Bank is a leader in virtually all areas, with a well-developed service network that includes locations in other countries. Alfa-Bank makes use of advanced technology and its management is effective and highly-professional. The owners of the Alfa Group enjoy considerable influence in political and business circles, both inside Russia and abroad.

Bank of Moscow is a major universal bank controlled by the Moscow city government; senior managers control more than 23% of equity, minority stakes are held by foreign investors and some shares circulate on the open market. The Bank has an extensive service network and is an established player in virtually all market segments. A retail leader, it is also an active provider of investment services plus loans and other services for large and mid-size companies; small business loan programmes are being developed.

GPB (also known as Gazprombank), is Russia’s third-largest (by assets) universal bank and the authorised provider of all key banking services to OAO Gazprom, which holds a 42% stake; a majority interest is controlled by the pension fund NPF Gazfond. A close strategic and financial partnership with the Gazprom group has ensured solid government backing and made the Bank a system-critical financial institution at the national level. It is also systematically developing an independent business and is now an established leader in several market segments. GPB is active internationally and operates an extensive regional service network that includes subsidiary banks and representative offices both inside Russia and abroad.

Rosbank is a major universal bank controlled by France’s Societe Generale group; Vladimir Potanin, a leading Russian businessman and principal shareholder in the multi-sector InterRos group, holds a less than a blocking interest after a stake of close to 20% passed to state-owned Bank VTB in late 2008 in the form of collateral. Rosbank operates one of the country’s largest branch networks and is present in virtually all market segments: an active provider of loans and other services for corporate clients, it is also a leader in retail and a significant player in the market for investment banking services.

B&N is a major private-sector bank controlled by Mikail Shishkhanov. The Bank’s business initially focused on corporate services but has gradually diversified into retail in accordance with a new growth strategy; its market position is strong in retail deposits but less well developed in personal loans. B&N has considerable experience working with foreign partners and within Russia operates a large and growing service network with a wide geographic reach. Speculative activity is modest.

Center-Invest is a major regional bank operating across the South Russia federal district and a leader in the Rostov market. International financial organisations – including the EBRD and DEG, its largest shareholders – are close partners and co-founders V.V. and T.N. Vysokov also retain considerable influence. SME services are a priority line of business and the Bank is active in retail, with personal and small-business loans particularly well developed. As well as retail deposits, it draws on a substantial volume of domestic and international capital market resources.

Moscow Bank for Reconstruction and Development (MBRD) is a major commercial bank by assets and a member of the AFK Sistema group, the largest diversified public company in Russia and the CIS; its principal beneficiary owner is Vladimir Yevtushenkov. Working with large and mid-sized affiliated companies in a range of industries is the Bank’s core business. MBRD has a moderately well-developed service network and in recent years its expansion has facilitated intensive growth in retail operations. Securities market activity has become more prominent since late last year.

Petrocommerce, a member of the IFD Kapital group, is a major private-sector bank by assets with an established regional service network. Working with large corporate clients and their employees is its core line of business, but the Bank is implementing a diversification strategy aimed at mid-sized regional businesses and the retail market. It is also LUKoil’s main rouble settlement bank and a reasonably active player on the Russian financial markets.

PromsvyazBank is one of Russia’s top five private-sector banks. A majority stake is controlled by the Ananiev brothers; foreign investors, including Commerzbank and the EBRD, hold a blocking interest. The Bank is the key asset of the Prosvyazkapital financial-industrial group and sits at the centre of a banking group with subsidiaries in Yaroslavl, Nizhni Novgorod and Volgograd regions. Market positions are well developed and lines of business are diversified, with an emphasis on corporate services. Promsvyaz benefits from a positive image in both the domestic and international markets and commands significant political and lobbying resources at the federal level via its principal shareholders.

Uralsib is a universal financial institution of national significance, one of Russia’s top private-sector banks, and the primary asset of the Uralsib financial group. Its market positions are well-developed and the Bank is a leader in several areas. Thanks to one of the most extensive branch networks in the country, it is an active player at the regional level with a system-critical role in the Republic of Bashkortostan. Priority lines of business include serving industrial firms and strengthening its retail presence. The Bank has mature ties to both Russian and western banking counterparties and has enjoyed strong federal government backing since the onset of the current crisis.

MDM Bank is a large (by assets) private-sector bank formed in August 2009 from the merger of MDM-Bank into URSA Bank. The Bank is controlled by the principal shareholders of the pre-merger banks, Sergei Popov (who holds a majority interest) and Igor Kim (with approx. 10% of equity); minority stakes are held by several Russian and foreign private and institutional investors. The combined Bank operates a wide branch network across the country and is an established player in several areas, including loans and services for large and mid-sized companies, investment banking, retail services, and small business loans.

Vozrozhdeniye is a larger (by assets) private-sector commercial bank and a national leader in retail deposits with a strong presence in the Moscow regional market. It specialises in serving small and mid-sized businesses and private individuals. Management Chairman D.L. Orlov is the largest single shareholder, but the bulk of equity is controlled by professional investors. The Bank enjoys the political backing of the regional authorities, which has helped to reinforce its public image.

Zenit Bank is a major universal financial institution that specialises mainly in corporate and investment services; retail operations are also being developed. In 2005 it began forming a banking group, which now includes four other banks. OAO Tatneft [trs. Tatarstan Oil Co.], itself controlled by the government of Tatarstan, is the Bank’s largest client and shareholder. Zenit Bank is an active player in the securities market and also enjoys a strong position and positive reputation internationally.

Bank Ekaterinburg is a smaller regional (municipal) bank in which the Ekaterinburg authorities hold a major stake. The Board of Directors is chaired by Arkadi Chernetski, who heads the city administration. The Bank’s market presence within Ekaterinburg is solid and its products and services are competitive. Operations are largely focused on working with socially-significant local businesses and the retail market.

Mosstroyekonombank (MSEB) is a mid-sized (by assets) Moscow credit organisation, a construction industry specialist and an authorised bank of the City of Moscow, which has traditionally held a minority stake. A controlling interest is held by finance and construction companies formerly affiliated with the non-bank business of Mikhail Gutseriev. MSEB has a modest branch network with a moderate geographic reach. Its market positions are solid and the Bank can draw on established business ties across the Moscow construction industry. It is developing a retail business, including a presence in mortgage loans.

KB Garant-Invest is a smaller (by assets) private-sector bank and a member of the Garant-Invest Group, which specialises in construction projects, managing commercial real estate and retail trade. The Bank itself focuses on investment activity and organises financing for commercial projects, typically on behalf of affiliated companies. Its retail business is largely centred on deposits taken in under a private banking programme. Garant-Invest is moderately active on the interbank market, where it is a net creditor, but speculative activity is virtually nil.

Dagenergobank is a smaller (by assets) private-sector regional bank that operates in the Republic of Daghestan. Its owners are private individuals. Initially the Bank’s business focused on working with firms in the energy sector, but since 2003 it has been expanding its client base, particularly in the case of retail and SME services. The Bank is not active in the money, currency and securities markets.

Bank Forshtadt is a mid-sized (by assets) private-sector bank that operates mainly in the Volga and Central Russia federal districts. Most shares are held by private individuals with other business interests, including assets in the oil, gas and petrochemicals sector. The Bank focuses on working with corporate clients, some of which are affiliated companies, and a retail business is also being developed. It is moderately active in the securities and financial markets. Strategy calls for the further development of its corporate business, with an emphasis on SME services, as well as retail growth.