2. Contents
1. Sovcombank at a glance p. 4
2. General information p. 8
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3. Important notice
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uncertainties, unforeseen circumstances and other important factors of any kind which are hard or impossible to predict, which are beyond the Company’s control, and which may
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or any person in the Russian Federation, and does not constitute an advertisement of any securities or assets in the Russian Federation.
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5. Sovcombank – focus on sustainable return
EMPHASIS ON RETAIL BUSINESS AND BALANCED APPROACH TO RISK
Focus on return
• Sovcombank is in the Top 3 among the
Attractive niche market hundred largest Russian banks in terms of Strong market position
return on capital
• The Bank generated 57% return on
• Target customers – retired individuals capital in 2011 • Sovcombank is in the Top 30 Russian
with relatively small accounts and low banks ranked by value of loan portfolio
mobility • The Bank is focused on retail segment
• Minimum deposit amount is set at only with loans to individuals making up over
RUR 5-10 thou 80% of the total loan portfolio
Important player Highly competitive offering
• During the global recession Sovcombank
• The Bank is among the Top 60 by asset
became the market leader in terms of
size – RUR 89 bn*
growth in the customer base delivering
• Sovcombank is Russia’s 33rd largest bank
solid growth against the backdrop of
by value of deposits of individuals (RUR
declining market and poor peer
52 bn)*
performance
* As of 31 October 2012
Broad market reach Balanced approach to risk
• The Bank is focused on generating high
• Extensive regional network: 265
and sustainable return driven by
branches, 1,187 mini-offices and 257
customer loyalty and retention
points of sale across 500 locations
• Sovcombank maintains rather
• Bank operates over 900 ATM and 1,200
conservative approach to risk taking
EFTPOS terminals
aiming at low volatility of returns
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6. Sovcombank in numbers
• The Bank is among the Top 60
Russian banks by asset size with Assets Loan Portfolio
the total asset value of RUR 89
bn* RUR bn RUR bn
• Consumer loans make up over
80% of the Banks’s loan
portfolio
• Sovcombank is Russia’s 27th
largest bank by value of
consumer loan portfolio*
• Consumer loans are matched by
89% of total deposits being
raised from individuals Source: Sovcombank Source: Sovcombank
• Sovcombank is Russia’s 33rd
largest bank by value of Deposits Capital, NII and net profit
deposits of individuals with RUR
RUR bn RUR mn
52 bn* raised
• The Bank tailors its market
offering to retired individuals
• Starting from 2009 the Bank’s
assets increased by 2.5 times
and the Bank’s capital nearly
tripled
* Banki.ru statistics as of 31
October 2012
Source: Sovcombank Source: Sovcombank
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7. Peer comparison
RATINGS AND KEY FINANCIALS
• The Russian rating agency
Expert RA assigned A rating to Long-term rating Expenses as a share of net profit*
Sovcombank underlying “Very
high creditworthiness” translated to Moody’s scale %
• Rating agency RusRating
assigned A+ rating to
Sovcombank on a national scale
• Financial health was assessed as
highly strong and sustainable
Source: Sovcombank Source: Sovcombank
Return on capital* Deposits as a share of total liabilities*
% %
* SCB – Sovcombank, HCF – Home Credit
Bank, GE Money – GE Money Russia, VE –
Bank Vostochniy Express, RenCred –
Renaissance Credit, OTP – OTP Bank,
TKS – Tinkoff Creditnye Systemy
Source: Sovcombank Source: Sovcombank
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9. Sovcombank: History in brief
1990 1990 The Bank was established in Buy city in Kostroma region under the original name of Buycombank
2001 The Bank was acquired by its current management team
2003 The Bank’s head office was transferred to Kostroma with subsequent change of name to Sovcombank
2004 Sovcombank capital base was supported by an injection from the Dutch investment fund TBIF
2001
2007 Kardan Group acquired stake in the Bank. The Bank and ARKA Group were merged to become a large regional banking
group with a full range of banking services and extensive regional presence
2003
2008 The Bank received loans from EBRD and from the Netherlands Development Finance Company thus gaining access to
2004 unsecured government financing which it used to successfully introduce its ‘Loans to SMB’ program
Sovcombank expanded its branch network to 30 Russian regions and significantly increased volume of retail lending
2009-2010 through over 1,000 points of sale. The Bank’s business processes were streamlined with implementation of new
2007
management technologies
2008
2009-2010 2011 Considerable growth in consumer lending. Opening of the Samara and Nizhny Novgorod branches, ATM network grew to
583 convenient locations and 921 EFTPOS terminals
2011
2012 2012 Kardan Group’s equity stake repurchased
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10. The Bank’s geography
PRIMARY OBJECTIVE – STRENGTHENING EXISTING PRESENCE
Sovcombank is present in over
500 Russian cities across 30
regions
The Bank’s deposit geography is - Existing presence
heavily geared towards Moscow
(around 50%) and Kostroma 1 - Number of offices
(around 30%). Branches in other
cities attracted around 20%
deposits
Consumer loan portfolio is well
1
diversified by geography
Yaroslavl
region Kamchatka
Sovcombank intends to focus on Vologda region region
5
strengthening its existing Moscow and
11
presence with limited Moscow region
67 16
Kostroma region
geographic expansion in new Lipetsk 6 9
region Krasnoyarsk region Khabarovsk
regions 1
Vladimir region region
Tyumen Sakhalin region
Voronezh 14
Ivanovo region Chelyabinsk
region 5 region 1
Samara region region 8
Krasnodar Tomsk Amur region
region 4 4 region
Irkutsk region
14 Omsk 7 9
23 region
8
9 10 1
16 Primorsk region
Orenburg 15 Kemerovo region
Evreyskaya AO 18
region Novosibirsk region
4
13
Altai region
1
Khakasiya
Altai republic republic
Source: Sovcombank
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11. Organisational structure
The Bank’s organisational
structure includes several layers Organisational Structure
of authority
The Board of Directors General Shareholders’
members are appointed at the Meeting
General Shareholders Meeting
and retain the ultimate
responsibility for decision Board of Directors Internal Control Service
Internal Control Service Audit Committee
making
Corporate Business
Corporate Business
The Management Board is Retail Business Committee
Retail Business Committee Management Board
Management Board Committee
Committee
accountable to the Board of
Directors and comprises four
executive directors Other committees
Other committees
The Management Board is led
by Dmitry Gusev
Key committees
Decision making at the
Management Board level is Composition: 9 members
supported by the Retail Business Meeting schedule: twice a month
and Corporate Business Retail Business Committee
Competence: retail lending policy (including products, network, interest
Committees responsible for rates and risks)
management decisions in the
relevant business area Composition: 8 members
Meeting schedule: twice a month
Corporate Business Committee
Effective control and monitoring Competence: corporate lending policy (including products, maximum
at the Board of Directors level is exposure and interest rates)
supported by the operation of
the Audit Committee Composition: 8 members
Meeting schedule: once a quarter
Audit Committee
Competence: auditor appointments, internal control system appraisal
and monitoring
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12. Management
Dmitry Gusev
Chairman
Born in 1976, holds a graduate degree from the Financial University under the Government of the Russian Federation,
major in Finance and Credit.
Before joining ICB Sovcombank Dmitry held Partner position at Deloitte & Touche in Moscow. In 2007-2008 he held Advisor
to Chairman position in the Moscow branch of the ICB Sovcombank. In 2008-2011 Dmitry was a member of the Board of
Directors and held Deputy Chairman position at ICB Sovcombank.
From 2011 Dmitry Gusev leads the Board of Directors of Sovcombank.
Sergey Khotimskiy
First Deputy Chairman, Managing Director
Born in 1978, Sergey holds a graduate degree in law from Moscow International University.
From 2007 Sergey holds First Deputy Chairman and the Managing Director position of ICB Sovcombank. From 2008 he is a
member of the Board of Directors and Management Board of ICB Sovcombank. In 2010 Sergey joined the Board of
Directors of SOLLERS-FINANS.
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13. Management (cont’d)
Kirill Sokolov
First Deputy Chairman
Born in 1979, Kirill holds graduate degree from Novosibirskiy State University, major in Mathematic Methods in Economics.
In 2006-2008 Kirill held CFO position of ICB Sovcombank.
From 2008 Kirill holds First Deputy Chairman position and is a member of the Board of Directors of ICB Sovcombank.
Elena Sarycheva
Deputy Chairman
Born in 1971, Elena holds a graduate degree from the State Academy of Service in Tolyatti, major in accounting.
In 2004-2008 Elena held Chief Accountant position in the Moscow branch of ICB Sovcombank.
From 2008 Elena holds Deputy Chairman position and is a member of the Board of Directors of ICB Sovcombank.
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