business in three dimensions

Transcription

ANNUAL REPORT 2014
BUSINESS IN THREE DIMENSIONS
ANNUAL REPORT 2014
The Best
Russian Bank
Expobank has received the EMEA Finance Europe
Banking Award, nominated as the Best Bank Operating
in Russia, based on 2014 results.
EMEA Finance Magazine is an internationally recognized financial publication
telling of the most important events in the financial markets in Europe, the Middle
East and Africa. Every year the magazine gives out ‘Europe Banking Awards’
to the best banks. When deciding on the winners, EMEA Finance experts rely on
such criteria as the economic performance, increase in profits and international
business expansion.
2014
Expobank
ANNUAL REPORT
CONTENTS
General Information on the Report
SUMMARY
CORPORATE GOVERNANCE
General information on the Report
3
Accountability and efficiency 40
Assets and partner banks 6
Risk management 42
Geography of operation 7
Information openness and transparency
48
Expo brand footprint globally and across Russia
8
Social policy and HR management
49
History of the Bank
10
STARTEGIC REPORT
2
FINANCIAL STATEMENTS
Address of the Chairman of the Board of Directors 13
Independent Auditor’s report 60
Address of the Chairman
of the Management Committee 15
Statement of financial position
62
Strategy, Mission, Values 18
Statement of Comprehensive Income
64
Our activities
19
Statement of changes in equity
66
Key events in 2014 20
Statement of cash flows
67
Financial results
21
Overview of Russian economy in 2014
24
Strategic goals for 2015–2017
27
Private Banking / Expobank Premier
30
Treasury
31
Corporate banking
36
M&A
38
Regional policy
39
The Report has been prepared by Expobank
Limited Liability Company (‘Expobank’).
The consolidated data cover the period
from 01 January to 31 December 2014.
Key Topics of the Report
Contact Details
The Report highlights performance indicators included in
Expobank’s 2015–2017 Strategy.
29 Kalanchevskaya Street, bldg.2, Moscow, 107078
Standards
Email: [email protected]
The report has been prepared based on Expobank
2014 IFRS Statements.
Tel: +7 (495) 228 31 31
24/7 Information Centre:
+7 (495) 231 11 11; +7 (800) 500 07 70
Website: www.expobank.ru
Ratings
In May 2014 International Rating Agency Fitch Ratings
upgraded the Bank’s National Long-Term Rating to “BBB”,
with its International Ratings affirmed at “B”. The ratings were
affirmed in December 2014.
In November 2014 Russian Rating Agency RusRating upgraded
the Bank’s credit ratings to “BBB-” (International Scale) and
to “AA–” (National Scale), Outlook Stable
GENERAL
Addresses / Contacts Core Business
69
Offering a whole range of banking services to corporate clients
and affluent private customers are among the Bank’s priorities,
as well as acquisition and consolidation of banking assets. The
Bank operates under General License for Banking Operations
No.2998 of 06 February 2012 (replacement of License No.2998
of 02 December 2008) issued by the Bank of Russia (CBR).
The Bank participates in the government’s deposit insurance
programme introduced by Federal Law No.177-FZ dated
23 December 2003 ‘On Insurance of Household Deposits with
Russian Banks’.
www.expobank.ru
3
INTERNATIONALITY
Prague Stock Exchange
Moskva-City
is the second largest stock exchange in the CEE
countries. Though the first commodities and stock
exchange in the Czech capital was founded yet in 1861,
the modern Prague Stock Exchange is relatively young:
trading started on 6 April 1993.
‘Moskva-City’ Moscow International Business Center is
the biggest business area both in Moscow and Russia.
The country’s highest skyscrapers — Mercury City Tower
(338.8m), Eurasia Tower (308.9 m), Moscow Tower
(301.8m) — have been and are still constructed.
Prague, the Czech republic
Moscow, Russia
Business and finance have no borders. Despite
differences in traditions and cultures businessmen
from various countries are able to find common
language. Expobank opens up the way to the European
and world markets to its clients and is ready to be
their guide in new directions and new opportunities.
We are familiar with all subtleties and nuances
of business cultures in various countries, and we
are happy to share this experience. Everywhere, we
speak one common language with business people —
the language of growth and development.
Riga Stock Exchange
The stock exchange is owned by Swedish-Finnish
OMX Group which also operates exchanges in Helsinki
and Stockholm. The neo renaissance stock exchange
building was constructed in 1852–1855, designed by
architect Harald Julius von Bosse.
Riga, Latvia
Expobank
2014
ANNUAL REPORT
Assets and Partner Banks
Igor Kim
Chairman of the Board of Directors,
Expobank LLC (Russia)
Chairman of the Supervisory Board,
Expobank CZ (Czech Republic)
Chairman of the Board of Directors,
AS Expobank (Latvia)
Igor Kim is an international strategic investor who has successfully completed over 30 M&A deals both with Russian partners
and global financial institutions.
IGOR KIM SUCCESSFULLY CLOSED
OVER 30 M&A DEALS WITH GLOBAL
FINANCIAL INSTITUTIONS:
THE FOLLOWING ASSETS HAVE
BEEN PURCHASED IN THE RUSSIAN
SECTOR RECENTLY:
The banks are represented in three
regions — Russia, the Czech Republic
and Latvia — and operate under
a single corporate name of Expobank.
Each of the credit institutions is controlled by Igor Kim and
is a financial partner of the Russian credit institutions. This
provides the clients of our bank in Russia with both prompt
execution of transactions in Russia and with a whole range
of opportunities in European countries and in Hong Kong.
“Clients’ business value growth leads to the
increase in the shareholder value of the Bank.
That is why each of the credit institutions is
result-oriented and focuses on offering the most
advantageous opportunities. Partner banks
form new access points for Russian clients
to global financial centers, provide operational
efficiency and consultancy expertise”.
The banks are focused on corporate banking, M&A deals and on
servicing export and import transactions of companies including
those promoting import substitution policies and development
of joint businesses in the territories of the brand presence.
Igor Kim
Barclays (UK)
Santander (Spain)
Morgan Stanley (USA)
West LB (Germany)
VR Leasing (Germany)
LBBW (Germany)
LLC ‘SIBBUSINESSBANK’ (Surgut)
Commercial Bank ‘STROMCOMBANK’ Limited
(Krasnoyarsk)
Commercial Bank ‘MAK-Bank’ LLC (Moscow)
from OJSC ALROSA Diamond Mining Company. Moscow
Kirill Nifontov
Māris Avotiņš
Ilya Mitelman
CEO, Russia
CEO, the Czech Republic
CEO, Latvia
Expobank LLC
COMMERCIAL BANK ‘MAK-BANK’ LLC
Surgut
LLC ‘SIBBUSINESSBANK’
Krasnoyarsk
COMMERCIAL BANK ‘STROMCOMBANK’ LIMITED
THE PURCHASED FINANCIAL INSTITUTIONS
WERE MERGED INTO EXPOBANK LLC
(RUSSIA)
6
Geography of Operation
is a dynamically developing bank that has been
operating in the Russian banking market since
1994.
Its priorities are offering a whole range of banking
services to corporate clients and affluent private
customers. The Bank focuses on providing banking
services backed up by an extensive experience
of successful deals involving funds raising, M&A’s
and business restructuring for Russian and international companies. About 7.5 thousand companies
and over 100 thousand individuals are among the
Bank’s customers and clients.
www.expobank.ru
EXPOBANK CZ operates in the Czech banking market since 1991.
The bank is focused on provision of complex products and services. This covers corporate banking
services incl. treasury services, real-estate financing
and export and trade financing as well as a broad
range of private and personal banking services.
Expobank CZ takes pride in being able to offer
custom-made solutions and in its great care to detail
when providing its clients with intellactual products
and services.
AS EXPOBANK is one of the oldest banks in Latvia. It was founded
in 1991. The Bank’s major task is to be a reliable
and professional financial partner to its customers
and clients, to provide them with top quality and
speedy service, and to ensure security and stability.
The service standards have already been appreciated
by clients from Russia, CIS and Europe operating
in mining, manufacturing, finance, trade and other
industries.
7
Expobank
2014
1
ANNUAL REPORT
Summary
Expo Brand Footprint Globally
and Across Russia
“The Bank’s team possesses qualitative
expertise and competences in M&A deals.
Ensuring development for the Bank, growth in its
business volumes and profitability, and expansion
of geographical footprint through M&A deals are
our key business goals. The synergy effect from
their implementation enables us to develop at
the rate exceeding the market average”.
Expobank LLC (RUSSIA) 51.9
RUB BLN
Assets
as of 2014
year-end
Equity of RUB 6.9 bln,
return on equity
of 22.5%
EUR MLN
Kirill Nifontov
THE CZECH REPUBLIC
Prague
“We provide our clients with top quality financial
instruments and service. When performing
export and import transactions between
Russia and the Czech Republic, promptness
and skilled support are among our competitive
advantages”.
LATVIA
Riga
Saint Petersburg
RUSSIA
Assets
as of 2014
year-end
Equity of EUR 94 mln,
capital adequacy ratio
of 24.8%
Māris Avotiņš
Moscow
Yakutsk
Perm
490
EUR MLN
Yekaterinburg
Krasnodar
Krasnoyarsk
8
Novosibirsk
Novokuznetsk
Assets
as of 2014
year-end
Equity of EUR 68 mln,
capital adequacy ratio
of 35.5%
CEO of Expobank CZ
Surgut
Kemerovo
AS EXPOBANK (Latvia) Ilya Mitelman
CEO of AS Expobank
CEO of Expobank LLC
EXPOBANK CZ (Czech Republic)
750
“We see great potential for the development
of the Bank’s and its clients’ businesses in
the Asian market, namely in such segments as
China, Malaysia, Indonesia. We think that the
Bank’s products and services, especially highly
efficient servicing of payments with a remote
access option, will be in great demand”
HONG KONG
The Representative Office has been
opened to support our clients
interested in expanding their businesses
in Asia, especially in China.
www.expobank.ru
9
Expobank
2014
ANNUAL REPORT
The Jubilee Year 2014 —
20 YEARS IN BANKING
The Success Story
10
ОКТЯБРЬ 2011
1994
March
2008
October
2011
February
2012
March
2012
2012
Expobank
was founded
Expobank was
acquired by
Barclays
Bank was acquired
by private
investors headed
by Igor Kim
Bank was
renamed back
to Expobank
AS EXPOBANK
(Latvia)
was acquired
Russia’s first project on
full-scale technology
outsourcing of banking
systems was implemented. The transition was
recognized by OUTSOUR
CING RUSSIA AWARD-2013
as the best technology
outsourcing solution in
Russia in 2012
March
2013
June
2013
August
2013
September
2014
2014
Merger of Stromcombank
to Expobank was
completed
Merger of Sibbusinessbank
to Expobank was
completed
Russian
subsidiary
of German
VR LEASING
holding was
acquired
Expobank acquired
LBBW BANK CZ
from Landesbank
Baden
Württemberg
(LBBW)
EMEA Finance
recognized Expobank as
the Best Russian Bank,
based on 2014 results.
The Bank received the
EMEA Finance Europe
Banking Award,
nominated as the
Best Bank Operating
in Russia
www.expobank.ru
11
2
Startegic Report
Address of the Chairman of the Board of Directors
of the Board of Directors
Dear shareholders,
members of the Board,
clients and partners,
The world economy in general and the banking sector in particular are going through changes. Financial institutions are seeking
efficient forms and means of being a success, with regulations
tightened, costs increased and with a global tendency for
transparency. The Russian banking sector is not an exception. Professional market players are adapting to the updated
geopolitical frame of reference taking into account risks and
defining for themselves the most optimum business strategies.
Expobank’s active interaction with the partner banks in the
Czech Republic and Latvia secured operational efficiency, consultancy expertise and new access points for Russian clients
to global financial centers. All three credit institutions operating
under the single brand are result-oriented and focused on offering the most advantageous opportunities. This is supported
by a strong management and successful work of nonexecutive
directors of world level.
Russian Expobank has always demonstrated
positive dynamics and every year it proves its
competence and reliability building up longterm relationships of trust with its customers
and clients.
In 2014 the work of the Board of Directors of Exponank-Russia
was focused on enhancement of decision-taking and strengthening of control over adherence to the laws and recommendations of CBR. With requirements to the banking sector tightened, the top management paid and continues to pay special
attention to creditworthiness of corporate borrowers and
to risk management matters. All taken measures were targeted
at strategy implementation and creation of a robust platform
for further business development.
The year 2014 was a jubilee year for the Bank. 20 years of successful operation are marked with a number of transformations,
achievements, successes, with introduction of innovative and
state-of-the art solutions. A team of responsible and professional top managers was formed. Their work is aimed to ensure
the clients’ business value growth, which leads to the increase
in the shareholder value of the Bank.
On behalf of the Board of Directors I would like to thank the
whole team of Expobank in Russia and wish them successful
implementation of the goals set.
Igor Kim
Chairman of the Board
of Directors Expobank LLC
www.expobank.ru
13
Expobank
2014
2
ANNUAL REPORT
Startegic Report
Address of the Chairman of the Management Committee
of the Management Committee
Dear shareholders,
members of the Board,
clients and partners,
Success factor for the Bank today is quality of customer
service based on reliability, skills of staff and on a high level
of banking technologies. In 2014 our Bank earned comprehensive income of RUB 1.7 bln, which exceeds the 2013 results
by 40.5%. Equity made RUB 6.9 bln, return on equity equaled
22.5%.
Profits of the Bank have been growing for the
third year running and even with the market
environment changing Expobank demonstrates
high rate of return while maintaining excess
liquidity and capital adequacy.
One of the key elements for the year results was income from
M&A’s. In September 2014 Expobank successfully closed the
deal on acquisition of 100% voting shares in Czech LBBW
Bank CZ a.s. from Landesbank Baden-Württemberg. As a result
of this acquisition Expobank gained over 30 thousand active
clients in Europe, an opportunity to service export and import
transactions between Russia and the Czech Republic, and also
a competence in working with German companies. Expobank
CZ a.s. is characterized by a sound capital adequacy (CAR
24.75%), loan book quality, and also by a well-diversified asset
structure and excess liquidity.
14
www.expobank.ru
Our plans stand out by their reasonableness as the Bank’s
team prefers steady development. We remain true to our
cause, our values remain unaltered — integrity, efficiency, openness to change. These principles form basis for relationships
with our clients, partners, team members and community. We
develop; we improve customer service and do everything for
you to feel comfortable and profitable to build up your relationships with the Bank.
I would like to thank all team members of the Bank for the
professionalism and responsibility with which we get down
to resolution of the most difficult tasks set by the present-day
challenging environment in the financial markets. No doubt,
the valuable experience we gained in the past year will be just
another step to success, stable growth and prosperity of the
Bank in future.
Kirill Nifontov
CEO, Expobank LLC
15
Expobank
2014
Management Committee
ANNUAL REPORT
Ernst
Bekker
Olga
Pugacheva
Kirill
Nifontov
Dmitry
Ganushkin
Oleg
Novolodsky
Alexey
Fedotkin
Gulnisa
Ulanova
Alexey
Sannikov
Deputy Chairman
of the Management
Committee
Deputy Chairman
of the Management
Committee
Chairman of the
Management
Committee
of Expobank LLC
Deputy Chairman
of the Management
Committee
Deputy Chairman
of the Management
Committee
Deputy Chairman
of the Management
Committee
Chief
Accountant
Deputy Chairman
of the Management
Committee
Expobank
2014
2
ANNUAL REPORT
Startegic Report
Our Activities
Strategy, Mission, Values
Our Activities
Mission and Vision
Mission of the Bank:
We build the banking business designated to help clients to secure growth of their business
value and to promote their financial soundness.
Expobank is among top 30 biggest
credit institutions in net profits
in Russia, based on the FY2014 results
Values of the Bank:
TEAMWORK
EFFECTIVENESS,
EFFICIENCY
Engagement of each team member, sincere
interest in the result achievement through
joint effort. Willingness of every person
to make a valuable contribution maintaining confidential and respectful relations
Focus on the best result with the help
of the most suitable methods. Constant
search of ways to achieve professional
improvement and development
OPENNESS,
READINESS TO CHANGE
Openness to changes and appropriate
response to the necessity of introducing
possible changes. The ability to accept
various points of view and adaptability
to a new action plan approved
TOP-30
ETHICS, HONESTY
AND INTEGRITY
Loyalty to ethical standards and principles.
Demonstration of the firm intention to act
in line with ethical principles, honestly
and decently abiding by professional code
of conduct and social standards
Comprehensive
income of 1.7
RUB BLN
exceeds the 2013 result
by 40.5%
31.3
Expobank LLC is a dynamically developing bank that has been
operating in the Russian banking market since 1994.
Clients’
liabilities of The Bank is among top 30 biggest credit institutions in net
profits*. It has high credit ratings from leading rating agencies. In December 2014 Fitch Ratings affirmed the Bank’s
International Rating at ‘B’. In November 2014 RusRating
upgraded the Bank’s credit ratings to “BBB-” (International
Scale) and to “AA-” (National Scale), Outlook Stable.
Clients’ liabilities grew by 19.6%.
Individuals’ funds grew by 43.0%
to RUB 18.7 bln
Its priorities are offering a whole range of banking services
to corporate clients and affluent private customers. The Bank
focuses on providing banking services backed up by an extensive experience of successful deals involving funds raising,
M&A’s and business restructuring for Russian and international
companies.
About 7.5 thousand companies and over
100 thousand individuals are among the
Bank’s customers and clients.
RUB BLN
Net interest
income of 2.6
RUB BLN
Net interest income increased by
22.6%
Operational costs
decreased by
1.4
RUB BLN
* According to the banks ranking
made by the Interfax-Center for
Economic Analysis as of 01 January
2015
18
www.expobank.ru
which is 21.4% lower than the value
of 2013. The Bank’s cost to income ratio
in 2014 reduced to 41% as compared
to 47% in 2013.
19
Expobank
2014
ANNUAL REPORT
2
Key Events in 2014
Key Events in 2014
Startegic Report
Financial Results
Financial Results
ACQUISITION
OF LBBW BANK CZ
BANK ACCREDITED
WITH DIA
Expobank successfully closed
the deal on acquisition
of LBBW BANK CZ from
Landesbank BadenWürttemberg (LBBW)
Expobank is accredited with
Deposit Insurance Agency
to take part in tenders held
to select agent banks
Assets (bln RUB)
60.0
38.5
Comprehensive income (bln RUB)
48.0
51.9
44.1%
During the year, the Bank’s
assets grew by 8.1%
to RUB 51.9 bln
Share of liquid assets in the
balance structure grew from
33.8% to 44.1%
BANK
EQUITY
OF
6.9
BLN RUB
1.0
1.2
1.7
2012
2013
2014
40.0
1
20.0
0
2012
2013
2014
0
Growth for 2014: 8%
Clients’ funds (bln RUB)
8.1%
2
35.0
20.4
26.1
Growth for 2014: 40%
Net loan portfolio less leasing (bln RUB)
31.3
30
30.0
20
25.0
10
20.0
0
16.7
27.8
26.5
2012
2013
2014
15.0
Growth for 2014: –5%
10.0
Liquid assets (bln RUB)
5.0
0
2012
2013
2014
Return on Equity of 22.5%
20
13.5
11.1
17.2
2012
2013
2014
15
10
5
0
20
www.expobank.ru
21
PUNCTUALITY
Timeliness and efficiency are the two most
important qualities of a successful business.
24/7 access to international financial markets
and freedom to act in them provide for
continuity and efficiency of the transactions
and deals concluded. Expobank cuts out delays.
We value every second of our clients’ time
irrespective of the time zones that separate us.
The Prague Chiming Clock
(Pražský orloj)
The Kremlin Clock
The Laima Clock (Laimas pulkstenis)
is a medieval astronomical clock mounted on the southern wall of Old Town City Hall in the Old Town Square in
Prague. The oldest parts of the clock date back to 1410.
The clock shows the year, month, day and hour, time of the
rise and setting of the Sun and the Moon, and also the
position of the zodiac signs. The full hour chime is accompanied by a short show in the traditions of the medieval
toy theatre performed by moving mechanical figures.
The chiming clock mounted on the Spasskaya Tower
of the Moscow Kremlin dates back to the 16th century.
The famous melody of its chime marking every hour and
quarter-hour was not composed on purpose — it was
conditioned solely by the structure of the bell tower itself.
At noon, midnight, 6 a.m. and 6 p.m. the National Anthem of the Russian Federation is played, while at 3 a.m.,
9 a.m., 3 p.m. and 9 p.m. it is the melody of the “Glory”
chorus from Mikhail Glinka’s opera “A Life for the Tsar”.
is a pillar clock of an original tower-type design mounted
in the center of Riga at the beginning of XX century.
The name “Laima” and its art deco design were passed
down to the clock from the confectionary factory
to advertise whose produce it was used. In 1999, in
commemoration of the 800th anniversary of Riga, the
clock gained back its historical look. Today this clock
is considered to be the most accurate clock in Riga as,
twice a day, its rate is verified against satellite data.
MOSCOW, RUSSIA
RIGA, LATVIA
Expobank
2014
2
ANNUAL REPORT
Startegic Report
Overview of Russian Economy in 2014
Overview of Russian Economy
in 2014
Russian
GDP
growth of
0.6%
as per
FY2014
results
Thus, the Russian economy did manage
to preserve its growth as of year-end,
with a rising impact of external shocks
in place
Throughout 2014 Russian GDP was
gradually slowing down. After a slight
increase of 0.7% in Q3 (as compared to the
same period a year earlier) caused, mainly,
by a good harvest, in Q4 this indicator fell
into the red zone making -0.2%. As of yearend, GDP grew by 0.6%. Thus, the Russian
economy did manage to preserve its growth
as the year-end results show, with a rising
impact of external shocks in place.
Nevertheless, the key factor for further growth of the Russian
economy is the level of oil prices which experienced a dramatic
decline in September to December 2014. Such drop had a great
impact on the exchange rate of the Russian currency, which
lead to significant inflation consequences.
GDP Dynamics*
5%
4.5%
4.5%
3.3%
4.3%
4.6%
3.4%
0.9%
1.3%
1.0%
0.6%
4%
Besides, high geopolitical uncertainty
related to the conflict in the Ukraine and
maintained throughout 2014 continued
to have its negative effect on the economic
performance. Apart from political and
economic sanctions, the existing situation
resulted in the dramatic weakening
of economic confidence.
Accelerating inflation had a negative impact on the stability
of the current economic growth. As of 2014 year end, the
inflation rate grew to its maximum of 11.4%, first registered
in 2008. This was caused, primarily, by two factors: devaluation of the national currency due to a cut in energy commodity
prices, and also by introduction of food sanctions against the
EU countries.
In 2014 the Central Bank of Russia pursued a policy to target
inflation, one of the tools of which was increase of key interest rates. With sharp devaluation of the national currency
in place, CBR had to increase the key rate to 17%, it having
grown by 11.5 percentage points since the beginning of the
year. Nevertheless, those measures had no due effect on prices
because of the drop in oil-price hikes and weakening of the
national currency exchange rate; but they lead to resource
appreciation for the banking sector and, as a consequence,
for the real sector. Combined with absence of opportunities
to attract external borrowings, the cost of funds changed
drastically.
The Bank assumes that the current inertial trends, complicated
geopolitical environment, oil prices at USD 50-60 per barrel
(Urals) will persist in 2015, while GDP continues to slide down.
Such forecast is confirmed by GDP reduction dynamics in Q1
2015 which, according to the Ministry of Economic Development
of the Russian Federation, made –2.2%.
3%
2%
1%
In late 2015 the slide in GDP may slow down but as of the
year-end this indicator will still be in the negative zone. Its
dynamics will still depend greatly on energy commodity prices.
Apart from that, in midterm, the economy
will be stressed by a number of internal
factors:
A drop in consumer demand whose major phase will
be in 2015, to be followed either by stagnation or
moderate growth;
Having affected all sectors of the consumer market, the
prices growth will continue well into 2015. In Q1 2015
annual inflation rate was 16.9%. In H2 2015 inflation
factors are likely to grow less strong due to a reduced
demand.
Weak internal investment activity which, nonetheless,
may recover in 2016–2017 due to import substitution;
Limited opportunities to attract external borrowings
and, consequently, high cost of funding for the real
sector. The Bank does not expect the environment
to improve in 2015 but a gradual restoration
of confidence to Russia may lead to positive changes;
Pressure on the banking sector as a result of asset
quality deterioration. In 2015 high risk of banking crisis
will maintain, further stabilization of the environment
will be possible in case a consistent and predictable CBR
policy is implemented and general economic situation is
normalized.
0%
H1, 2010
2010
H1, 2011
2011
H1, 2012
2012
H1, 2013
2013
H1, 2014
2014
* Half-year data are presented annualized and are compared to the same values
of the previous year.
24
www.expobank.ru
25
Expobank
2014
2
ANNUAL REPORT
Startegic Report
Strategic Goals for 2015–2017
Strategic Goals
for 2015–2017
As a result of the above trends development, the Bank expects
high cost of funding to maintain in midterm, with it gradually decreasing as inflation slows down. Due to high rates on
attracted funds banks will face a reduction of interest margin.
The factors described above will inevitably lead to augmentation of the trend on consolidation of the banking sector which
will be supported by the regulator in order to minimize DIA
insurance payments.
Apart from that, costly funding together with a drop in household real earnings and reduction of consumer activity will lead
to reductions in retail lending. In 2015, the volume of retail
loans is likely to remain at the 2014 level. Corporate lending will
be influenced by a mix of such factors as contraction of production and low investment activity, and necessity to substitute
foreign funding.
Thus, to preserve capital and take a rightful place in this country’s banking market, an ongoing search for new opportunities
to gain profits with the market environment deteriorating is
required.
As a whole, with the economic environment deteriorating,
the Bank expects growth of the Russian banking sector to be
slowed down both in lending and in attracting deposits.
Negative economic conditions will put strong pressure on asset
quality, which will lead to the necessity to raise sizeable provisions. The latter will have a strong effect on the financial results
of the banking sector in 2015.
In light of the listed above, pressure on the capital of Russian
banks will increase dramatically, which will inevitably lead to a
demand for additional capital to be raised either through the
existing shareholders, or through recruiting new investors,
or through government support. Sector low profitability will
impede recruitment of external investors while general deceleration of the real sector will reduce opportunities for Russian
banks of capital top-ups from the existing owners. Government
support will be available to a limited number of market players,
which will lead to strengthening of big players, mainly of those
partially owned by the government.
In order to preserve capital and take
a rightful place in the Russian banking
market, an ongoing search for new
opportunities to gain profits with the
market environment deteriorating
is required.
2015–2017 Strategy is a continuation
and development of the implemented
2012–2014 Strategy
The major task for the said period is providing our Clients with
first class financial services and gaining stable income in any
market environment through the high professionalism of our
team and financial advantages of the Bank.
The Bank consistently cuts down on the product-based business model in favour of the customer-focused model centered
on building-up of long-term relationships with households and
companies. The Bank is regarded as a ‘service company’ for its
corporate clients and private customers.
The Bank is focused on the key regions of its presence that
enable it to successfully implement the strategic goals.
Moscow, Novosibirsk, Saint Petersburg, Yekaterinburg, Surgut,
Krasnoyarsk, Kemerovo, and Perm are defined as priority
regions for the Bank’s operation.
Focus on the complex servicing of corporate
clients and affluent private customers
through corporate sales channels enables
the Bank, without increasing general and
administrative expenses, to efficiently
increase non-interest income and maintain
the Bank’s resistance to external impacts
through:
The Bank is planning to concentrate on the relationships with
corporate clients operating in the sectors most resistant
to economic crises. Along with classical banking products,
Expobank is planning to assist its clients in increasing their
businesses value through offering complex individually structured products (M&A’s, MBO’s), restructuring and optimization
of debt burden of companies, financial consulting, etc.
Effort focused on private banking development enables the
Bank to form a stable resource base for further development
and creates a sustainable source of fee income.
The Bank has expertise and competence in acquisition of standardized retail portfolios and loan portfolios extended to small
and medium enterprises and formed by professional players in
the relevant segments of the banking market. Purchase of portfolios planned by the Bank will enable it to form highly marginal
loan portfolios with minimum loss.
The economic situation makes it possible for the Bank, in midterm, to make high-yield transactions in the financial markets.
The Bank is planning to convert its extensive liquidity cushion
into top-up margin as funds are scarce in the market.
Along with organic growth, the Bank strives to increase
the volume of its business through M&A’s with other credit
institutions, the synergy effect of which will enable the Bank
to develop at the rate exceeding the market average. A combination of organic growth with M&A deals will enable Expobank
to expand its geographical footprint and offer its clients yet
more financial opportunities.
maintaining a flexible product line (development of niche
products, transaction and fee services);
focus on cross-selling;
implementation of a service model targeted at the
highest service quality, close integration with the
investment and retail businesses.
26
www.expobank.ru
27
State Historical Museum
House of the Blackheads
The main historical museum in Russia was officially
established in 1872 by a personal decree of Emperor
Alexander II. The Museum’s building was constructed
in 1881, following the design of architect Vladimir Shervud.
Its exterior, styled in conformance with the 16th century
Russian architectural traditions, harmoniously fitted into
the architectural ensemble of Red Square. At present, its
collection boasts of almost 4.5 million exhibits telling about
Russian history from the earliest times down to our days.
This most beautiful building was erected in the center
of Riga in 1334, in the times of the Livonian Order, as
a gathering place for townsfolk to meet and hold feasts.
At the end of the 16th century the House was leased
to the Brotherhood of Blackheads. This association
of foreign merchants had existed in Livonia since the
mid 14th century. The name “Blackheads” is linked to the
patron saint of the Brotherhood — the black Saint
Mauritius.
MOSCOW, RUSSIA
Riga, Latvia
TRADITIONS
To create innovations and successfully develop,
traditions have to be known and venerated. Analysis
of the previous experience ensures reliability and
soundness of all new solutions and beginnings.
To Expobank, it means primarily a deep understanding
of nation-specific practices in the financial markets
of various countries. Respect for traditions makes our
business universal, global and really stable.
National Museum
Since its foundation in 1818, the National Museum in
Prague has accumulated a richest collection of exhibits.
Several million items are displayed in the main building
and at other exhibition sites. The Museum’s main
building inaugurated on 18 May 1891 is the gem
of Wenceslas Square.
Expobank
2014
2
ANNUAL REPORT
Startegic Report
Treasury
Private Banking /
Expobank Premier
Treasury
Royal Service.
We Have Common Goals with Our Clients
Funds placed
in retail deposits
amount to 16
RUB BLN
Due to cross-sales to/from
its Corporate Business the Bank was
able to attract new clients
services of the personal relationship manager acting as
a personal banker
special conditions applied to the Bank’s products
membership in the VIP Privilege Club — special servicing
conditions, participation in closed events of the Bank’s
partners
44%
share of liquid
assets as
of 01 January 2015
Compared to early 2014, the share
of liquid assets as of 01 January 2015
grew by 10 percentage points and made
44% in the Bank’s total assets
Private banking and development of the Premier operation are
a strategic line of the Bank’s business.
2014 was marked by new challenges to the
Russian banking system in view of its
financial sustainability and stability.
Over 2014 the amount of the funds placed in retail deposits
grew up to RUB 16 bln. In 2014, the Bank outpaced the market
due to the updated deposit product line, introduction of lending
to VIP-clients on special terms and conditions. Due to crosssales to/from its Corporate Business the Bank was able
to attract new clients.
Along with the ongoing strengthening of prudential supervision
on the part of the regulator in 2014, external macroeconomic
factors started to produce an adverse impact both on the financial system of Russia as a whole and on the banking system in
particular.
During 2014 the volume of funds attracted from the existing clients was increased substantially due to the individual approach
to servicing. Average amount placed by a VIP-client grew from
$250 thousand to $350–500 thousand, which indicates their
greater confidence in the Bank.
Due to the imposition of sector sanctions by the USA and the
EU countries since March 2014, external markets have been
actually closed for attracting liquidity, there has been a mass
exit of foreign investors from securities issued by the Russian
Federation and Russian companies.
The package of services offered by AS Expobank expanded.
The Bank has created and successfully operates
a system of private banking ‘Expobank Premier’.
The customers are offered:
services provided in comfortable VIP branches (there
are servicing sites in Moscow: Business Center ‘Malaya
Dmitrovka’ Office, as well as in Novosibirsk, a key
operations area)
30
Issuable
securities
portfolio of 11.8
RUB BLN
As of 01 January 2015, the volume of the
issuable securities portfolio increased
by 42% against the similar data of the
previous period and made RUB 11.8 bln
Both these external and internal factors set forward the efficiency of liquidity management as the priority area for Treasury.
Throughout 2014 the Bank kept on with the strategy of maintaining liquid assets at a level exceeding 30% of the total
assets. Compared to the beginning of 2014, the share of liquid
assets as of 01 January 2015 grew by 10 percentage points
and made 44% in the Bank’s total assets.
One of the tools of efficient liquidity management in 2014
remained investment of funds in debt securities of the issuers
of high credit quality and included into the Lombard List of the
Bank of Russia.
As of 01 January 2015, the volume of the issuable securities
portfolio increased by 42% against the similar data of the
previous period and made RUB 11.8 bln.
Our team members maintain relations with the customers not
only to do business but also to socialize and attend to the
interests and hobbies of each of them, organizing and holding
joint events. For example, at the end of 2014 there took place
“The Royal Pheasant Hunt”.
Hunting took place in the pheasantry and keeping station
‘Vltava a Borek’ located in a scenic landscape of Southern
Bohemia adjacent the town Hluboká nad Vltavou.
Hunting excitement, company, competing in
the number of hunting trophies made this
event an unforgettable one.
www.expobank.ru
31
Expobank
30
2014
2
ANNUAL REPORT
Startegic Report
Treasury
44%
48%
34%
34%
44%
2.9
2,9
20
2.9
11.8
11.8
11.8
8.2
10
11.8
11,8
2.9
Securities Portfolio Split-Up by Maturity (%)
44%
8,2
2.9
11.8
8.2
8.2
8.2
8.2
Up to 90 days
15%
91–180 days
13%
181–365 days
24%
1 to 2 years
16%
2 to 3 years
9%
Over 3 years
23%
0
H1, 2012
2012
Due from other banks
Cash and cash equivalents
H1, 2013
2013
H1, 2014
Marketable securities
Liquid assets share
983
Securities Portfolio Split-Up
by Issuer Rating (%)
RUB MLN
from ВВВ– from ВВ– to ВВ+
from В– to В+
32
2014
34%
60%
6%
Net profits
from securities
transactions in 2014
In 2014, net profits from such
transactions amounted to RUB
983 mln vs RUB 7.4 mln in 2013
www.expobank.ru
Despite the adverse market environment, in July 2014 Expobank
successfully passed the offer as part of its liquidity management framework and implementing its strategy on diversification of funding sources.
Almost all of the bonds in the amount of RUB 1,174.5 mln
bought out under the offer were placed during July 2014 with
a rate of return of 11.5% per annum.
In 2014 Expobank significantly increased its income from
securities business. In 2014, net profits from such transactions
amounted to RUB 983 mln vs RUB 7.4 mln in 2013.
33
Riga International Airport
Moscow Domodedovo Airport
is the largest airport in the Baltic states in passenger
and cargo traffic. It was built in the Riga region, next
to the settlement of Skulte in 1973. By 2001, when Riga
celebrated its 800th anniversary, the airport was fully
renovated. Today, regular flights are operated from Riga
Airport to 31 countries.
is the largest airport in Russia in terms of passenger
traffic and is among the 20 busiest air hubs in Europe.
The first passenger flight from Domodedovo was made
on 25 March 1964. Now, 82 airlines operate their
flights from the airport to 247 destinations worldwide.
In 2011, World Airport Awards recognized Domodedovo
as the best airport in the Eastern Europe.
Mārupe Municipality, Latvia
Domodedovo, Russia
SPEED
Time is money. Today, speed of banking transactions
has increased to such an extent that some do not even
notice it. But we, as market professionals, know it
for sure that the limit is not achieved yet. We improve
our technologies and gain momentum for our clients
to be faster, to make it earlier, to be ahead of their
competitors, and to make it first.
Václav Havel Airport Prague
The airport, formerly Prague Rusynĕ International Airport,
began its operations on 5 April 1937. In the same year
the technical conception of the airport received Diploma
and Gold Medal of the World Exposition in Paris. Now,
the airport processes regular flights to 132 destinations.
Annual passenger traffic here exceeds 10 million people.
Since 2012, the airport in Prague has been named after
Václav Havel.
Prague, the Czech Republic
Expobank
2014
2
ANNUAL REPORT
Startegic Report
Corporate Banking
Corporate Banking
Throughout 2014 the Bank continued to develop the corporate
transaction model focused on generation of fee income from
implementation of complex structured transactions for medium
and large businesses. Specific features of this model made it
possible for the Bank to preserve a conservative approach in
risk assessment.
The Bank also kept on with its consistent work on enhancement
of its positions in such strategic industries as development
of residential and income generating property.
To develop its activities in the Eastern Europe and implement
import substitution programs, the Bank built up financial relationships with one of the biggest players in the machine-tool
industry, joint Czech and Russian Company ‘MTE Kovosvit MAS’.
Implementation of this project enabled the Bank together with
colleagues from Expobank CZ to provide the client with the full
range of banking services — from support of financial transactions in the Czech Republic to issue of bank guarantees and
funding to secure contract obligations in Russia.
Due to the corporate team’s expansion and appearance in Q4
2014 of a new department headed by Mr. A.V. Fedotkin, corporate business gained additional momentum by the year end.
Assumptions arose to expand the list of strategic
industries and add to it new priority sectors:
Structure of Corporate Credit Portfolio,
by industry (%)
Residential
construction
food processing industry / agricultural processing
industry
Commercial
property
retail trade
Production
oil and gas industry
Wholesale trade
Finance
A strategic resolution has been taken that
in 2015 one of the goals for the Bank will be
to attract large corporate clients: holdings
and industry leaders including those with
revenues exceeding RUB 15 bln a year.
Oil and gas
industry
Services
Other
The Bank has two key
competitive advantages in
active operations:
1) A flexible approach
and an opportunity to get
approvals for deals, which
enables the Bank to timely
approve and implement
non-standard projects.
27.6%
19.5%
16.6%
9.4%
9.1%
7.3%
3.5%
7.0%
2) Due to high capital
adequacy and a liquidity
cushion as compared to the
deficit experienced by the
sector in general the Bank
is capable of funding quality
assets with the margin
exceeding the market
average.
The Bank’s strategy in Corporate Banking is focused on the
development of long-term relationships with the clients that
have an experience of cooperation throughout crises times and
whose businesses are resistant to uncertainties and stresses,
and with the shareholders that have an impeccable reputation
and are ready to be materially liable for their business.
36
www.expobank.ru
37
Expobank
2014
2
ANNUAL REPORT
Startegic Report
Regional Policy
M&A
Assets
of Expobank CZ
a.s. of
Regional Policy
750
EUR MLN
Assets of Expobank CZ a.s. make
EUR 750 mln, capital — to EUR 94 mln,
its credit portfolio — EUR 510 mln.
Expobank LLC owns 19.8%
of the voting shares in this bank.
In September 2014 Expobank successfully
closed the deal on acquisition of 100%
shares in Czech LBBW Bank CZ a.s.
from Landesbank Baden-Württemberg.
In 2014 rebranding of the acquired entity
was completed, with the new name
of Expobank CZ a.s. Expobank LLC owns
19.8% of the voting shares in Expobank
CZ a.s.
In September 2014 Expobank successfully closed the deal
on acquisition of 100% shares in Czech LBBW Bank CZ a.s.
from Landesbank Baden-Württemberg. In 2014 rebranding
of the acquired entity was completed, with the name changed
to Expobank CZ a.s. Expobank LLC owns 19.8% of the voting
shares in Expobank CZ a.s.
Expobank CZ a.s. is characterized by high capital adequacy
(CAR 24.8%), good loan book quality (share of impaired loans
in the portfolio is 3%), and also by a well-diversified asset
structure and excess liquidity (share of liquid assets is 28%).
Assets of Expobank CZ a.s. are equal to EUR 750 mln, capital —
to EUR 94 mln, its credit portfolio — EUR 510 mln.
Expobank CZ a.s. is focused on lending to medium corporate
clients, offering banking services to German companies in the
Czech Republic, export financing and servicing affluent private
customers. As a result of this acquisition Expobank gained over
30 thousand active clients in Europe, an opportunity to service export and import transactions between Russia and the
Czech Republic, and also a competence in working with German
companies.
Development through M&A’s is an important part of the Bank’s
strategy. Expobank’s team is excellent at implementing such
projects and monitors the market both in Russia and in other
regions; while the Bank’s strong financial position and high profitability ensure its readiness to such transactions any time.
As of 31 December 2015, the Bank is represented in:
5
FEDERAL
DISTRICTS
Central FD
Siberian FD
Northwestern FD
Volga FD
Ural FD
In 2014, the Bank’s main task with regard
to its implementation of the regional network
development strategy was expansion of the
territories where Expobank operates and enhancement of the branch network efficiency.
The Bank successfully develops within its strategic business
model and creates optimal conditions for its clients in response
to the market challenges.
(4 branches and 13 offices):
Moscow
Saint Petersburg
Novosibirsk
Kemerovo
Krasnoyarsk
Perm
Yekaterinburg
Surgut
Universal Bank branches offer to private and corporate customers and clients a competitive product line that meets market
needs in all regions where the Bank is present.
For example, there are ‘Expobank Premier’ format offices
in Moscow and Novosibirsk focused on VIP-clients who can avail
of premium services.
2014
38
8
CITIES
Assets
Liabilities
Central FD (without centralized business)
81%
65%
Siberian FD
17%
24%
Northwestern FD
1%
2%
Ural FD
1%
7%
Volga FD
0%
2%
www.expobank.ru
39
Expobank
2014
3
ANNUAL REPORT
Corporate Governance
Accountability and Efficiency
Accountability and Efficiency
One of the underlying principles of building
an efficient corporate governance system is
distinct allocation of competences among
corporate governance bodies, with due
control exercised.
The underlying principles and procedures for the Bank corporate governance are stipulated by the Charter and Code
of Corporate Conduct of the Bank. The current corporate
governance system of the Bank includes various elements
and mechanisms used to have shareholders’ rights exercised,
to perform efficient internal control, and carry out interaction
among the Bank’s managers, shareholders, Board of Directors
and other stakeholders.
The corporate governance system
of the Bank includes:
Shareholders of the Bank:
Igor Kim
Directors:
66.64 %
German Tsoy
17.63%
OJSC ‘AUTOBANN’ RBC 8.76%
Kirill Nifontov 2.65%
MORELAM HOLDINGS LIMITED 1.82%
Yuri Koropachinsky Alexey Andreev
completeness and reliability of the Bank’s financial
statements;
John McNaughton
qualifications and independence of the external auditor,
quality of its services;
Kirill Nifontov
1.14%
Member of the Board of Directors
reliability and efficiency of the internal control system
of the Bank;
Oleg Kirillov 1.14%
German Tsoy
compliance with laws and regulations.
Dmitry Ganushkin 0.02%
Alexander Proshin 0.2%
General Shareholders’ Meeting;
Collective executive body —
Management Committee;
Sole executive body —
Chairman of the Management Committee.
Frank Wilhelm Schauff
Management Committee:
Kirill Nifontov
Chairman of the Management Committee
Board of Directors
Board of Directors;
Igor Kim
Chairman of the Board of Directors
The Audit Committee is a consultative and
advisory body of the Board of Directors providing
for presentation to the Board of Directors of the
objective information on the following matters:
The Board of Directors of the Bank
consists of 6 members. Each member
of the Board of Directors of the Bank has
experience, knowledge, qualification and
enjoys impeccable reputation required
for performance of duties of a Board
of Directors member and for organization
of efficient operations of the whole Board
of Directors to the benefit of the Bank and
its shareholders.
Committees of the Board of Directors
To ensure efficient performance of the tasks set for the Bank,
the Board of Directors has, by its resolution, set up Audit
Committee of the Board of Directors.
Audit Committee
Frank Wilhelm Schauff — Chairman of the Committee;
John McNaughton
Ernst Bekker
Deputy Chairman of the Management Committee
Dmitry Ganushkin
Oleg Novolodsky
Olga Pugacheva
Alexey Sannikov
Alexey Fedotkin
40
www.expobank.ru
41
Expobank
2014
3
ANNUAL REPORT
Risk Management
Risk Management
Risk acceptance is the essence of the
financial business, and exposure to risk
is a key condition of working in this area.
The Bank’s Executive Team considers an
efficient risk management system a basis
of the Bank financial stability and key factor
of its competitiveness determining the level
of its profitability and shareholder value.
The main objective of risk management is
maximization of the long-term shareholder
value of the Bank.
The main risks accepted by the Bank when
performing transactions are credit risk,
market risk, liquidity risk, operational risk,
legal risk and reputational risk.
Credit risk means the probability of incurring by the Bank
of financial losses resulting from the failure to perform, late
performance or incomplete performance by counterparties
of their obligations to the Bank.
Credit policy of the Bank is aimed at creating
a high quality credit portfolio and keeping bad
debt at the level close to zero. The following key
principles help to achieve this objective:
The upper level limits (risk appetite of the Bank) are set
according to the risk management strategy and credit policies approved by the Board of Directors and Management
Committee. Limits for individual counterparties and groups
of related counterparties, concentration limits, etc. are set
depending on the amount and type of the limit by resolutions
of the collective bodies (Board of Directors, Management
Committee, credit committees) or authorized officials of the
Bank.
Statements on the risk level of the credit portfolio are regularly
prepared by employees of Risk Management and are promptly
communicated to the business units and Management of the
Bank.
42
RUB BLN
Main Operating results for 2014
Credit Policy of the Bank
The Bank manages its credit risk individually in relation to each
client group (corporate clients, small and medium businesses,
individuals, financial institutions).
12.9
In 2014, the volume of the acquired
claims to individuals increased from
RUB 12.1 to 12.9 bln. Loss on the
portfolio is equal to zero
Credit Risk
The Bank accepts credit risk in connection with lending transactions, as well as with other transactions characterized by credit
risk.
Acquired
claims
to individuals
of The Bank extends credits only to those clients whose
business it understands clearly and who have stable
initial sources for credit repayment.
The Bank does not lend to clients with excessive debt
load and high risk exposure.
When taking a decision on the credit issue the Bank establishes
personal liability for its repayment.
The Bank has approved credit policies on each type of lending: corporate business, small and medium enterprises, retail
lending, financial markets. These policies define the priority
client groups, product line, requirements to the lending process
organization, and the total of the restrictions applied and credit
risk limits.
In 2014, to bring the risks management system
in line with the statutory instruments of the
Bank of Russia, Risks Management Strategy was
approved in the Bank, changes were made to its
organizational structure: Risks Management
Service was set up, and its Head was appointed.
As part of ongoing activities on enhancement
of risk management processes the following
measures were implemented during the
reporting period:
Credit Risk Analysis
The major part of the credit portfolio of the Bank has been
formed as the result of corporate lending transactions and
purchase of retail credit portfolios.
In 2014, the volume of the acquired claims to individuals
increased from RUB 12.1 to 12.9 bln. Throughout the reporting period the Bank has maintained the share of NPL’s in the
purchased portfolios at zero level due to application of risk
mitigation instruments provided for in the course of structuring
portfolio purchase transactions.
High assets quality is of top priority for the Bank. Thus lending
in a volatile economic environment is done with the use of conservative criteria. The corporate credit portfolio of the Bank
shrank by 22.5% over the reporting period (from RUB 15.0 bln
to RUB 11.6 bln). Despite reductions in the credit portfolio the
volume of impaired corporate loans in it, as of 2014 year-end,
decreased by RUB 306 mln, or by 32,8% (from 6.2% of the
corporate credit book to 5.4%).
testing of ‘Action Plan Ensuring Business Continuity
and/or Business Recovery in Expobank LLC in Case
of Abnormal Situations and Emergencies’ and its
subsequent update and fine-tuning;
validation of the applied risk level assessment models
(rating models, VaR models);
updating of the risk management methodology;
testing of the Bank employees’ skills related to the risk
management methodology.
www.expobank.ru
43
Expobank
2014
3
ANNUAL REPORT
Risk Management
Market Risk
Liquidity Risk
Operational Risk
Market risk means the probability of incurring by the Bank
of financial losses due to changes in market prices for financial instruments, including exchange rates and interest rates.
Market risk comprises pricing, currency and interest risks.
Liquidity risk means the probability of incurring by the Bank
of financial losses due to its inability to secure timely performance of its financial obligations in full and with minimum
expenses.
Operational risk means a probability of incurring
by the Bank of direct and indirect financial losses
due to:
Market risks arises on open positions related to equity, debt,
currency and interest financial instruments exposed to influence
of general and specific changes in the market environment.
The liquidity risk arises from mismatch of asset and liability
maturities.
any inconsistency between the internal business
processes and nature and scale of the Bank activity;
The Bank manages its liquidity risk
on the centralized basis:
violation by Bank employees or any other persons of the
internal regulations of the Bank and laws of the Russian
Federation (due to the lack of competence, unintentional
or intentional actions or omissions);
The Bank manages its market risk
on the centralized basis:
risk identification, assessment and control are effected
by employees of Risk Management;
decisions in market risk management, including setting
risk limits, are taken by the Assets and Liabilities
Committee;
management of open positions in financial instruments
exposed to market risk is effected by Treasury.
The Bank opens positions in the financial markets to develop
its client business and to manage liquidity. The Bank does not
open own speculative positions in the financial markets without
consent of the Board of Directors.
strategic management is effected by the Assets and
Liabilities Committee;
operational management is effected by Treasury.
The Bank uses the following instruments
for liquidity risk management:
maintenance of the assets and liabilities structure
balanced in terms of their maturity;
diversification of the financing sources, focus on the
stable client liabilities;
creation of the liquidity cushion consisting of highly
liquid financial instruments with low credit risk;
stress testing of the liquidity risk and development
of action plans in case of the liquidity crisis occurrence;
forecasting of receipts and payments, keeping
a payment position.
44
disproportion (inadequacy) of functional capabilities
(characteristics) of the information, technological and
other systems applied by the Bank or their failure
(malfunction);
impact of external factors;
influence of the legal risk factors.
The process of the Bank’s operating risk
management includes the following stages:
risk identification;
risk assessment;
risk monitoring;
The Bank uses the following means
of identification and assessment
of its operational risks:
identification of operational risks in the process
of development/modification of the Bank’s products
and processes;
analysis of data on the losses incurred by the Bank
as the result of the operational risk occurrence;
independent assessment of operational risks
by the Bank units.
The Bank applies the following methods to reduce
its exposure to operational risks:
regulation, standardization and improvement
of the Bank business processes;
automation of bank technologies and information
protection;
organization of the internal control system;
insurance of losses caused by operational risks
occurrence.
The Bank engages employees of all units of the Bank to manage
its operational risk; operational risk management is coordinated
by Risk Management.
reduction of the risk exposure.
www.expobank.ru
45
TIMELINESS
Not to set oneself above everyone, but to be useful
and loyal is a genuine goal worthy of any effort. To do
good, become part of people’s life, that of a city
and country — these are the values Expobank has
always sought to share. In order to remain up to the
mark, every day we have to offer to the business and
private customers what they expect from a modern
dynamic bank: cutting edge technologies, up-to-date
tariffs, prompt service. To work in tune with the pace
of today’s world, never growing complacent, and
to move ahead — these are the tasks crucial to us
at all times.
Riga Radio and TV Tower
Ostankino Tower
Žižkov Television Tower
Being 368.5 m tall, it is the tallest TV tower in the
European Union. Its construction and assembly
continued from 1979 to 1986. The tower is built on
Zaķusala island in the middle of the Daugava river. There
is an observation platform at 99 meters from which
most of the city and surroundings and the Gulf of Riga
can be seen in good weather.
Standing 540 meters tall, it is the fourth tallest
television tower in the world and the tallest free
standing structure in Europe. It was under construction
between 1960 and 1967. Ostankino Tower is one
of the main architectural symbols of Moscow. Today,
Ostankino’s broadcast TV and radio transmitters cover
a territory inhabited by over 15 million people.
Springing up above the ground 216 meters, Žižkov
Tower is a member of the World Federation of Great
Towers. It was built between 1985 and 1992. Apart
from radio broadcasting equipment, the tower houses
a meteorological station, a restaurant, a café and
three viewing platforms. In 2000, in commemoration
of Prague being announced the European Capital
of Culture, sculpturer David Černý decorated the tower
with cast-iron figures of crawling babies.
Riga, Latvia
Moscow, Russia
Prague, the Czech Republic
Expobank
2014
3
ANNUAL REPORT
Information Openness and Transparency
Information Openness
and Transparency
Reputation of the Bank
is the key intangible asset
which is the linchpin of trust
of our Clients and Partners.
Communication policy of the Bank is part
and parcel of doing modern and successful
business. This activity is aimed at creating
a positive image of the Bank in the eyes
of society. We are sure that — especially
in contemporary environment — this key
intangible asset is the linchpin of trust
of our clients and partners.
Social Policy
and HR Management
Information Openness
482
Committed to the principles of information transparency,
the Bank is always open to active dialogue with mass media.
Throughout the year we promptly provided journalists with
the most updated information about the Bank’s activities and
answered questions posed to us. Speakers of the Bank covered
the topics related to the banking market, shared their expert
and analytical commentary, did their best in explaining to the
audiences of newspapers, magazines, radio and TV programs all
subtleties and specific features of the banking services market,
and also the challenging environment in the financial markets
and banking sector.
people were employed
in the Bank as
of 31 December 2014
Attrition
rate of
5%
in 2014
The key factors to the Bank’s success
in social policy are employees’ high
professional skills, opportunities for
revealing their talents and capabilities
The Bank is characterized by stability
of its staff composition and low attrition rate
The Management of the Bank sticks to the principle that
the Bank’s success depends entirely on the people working for it. Our employees are the ‘human capital’ due
to which, to a great extent, efficiency and shareholder value
of Expobank grow. It is the Bank team members who create
additional shareholder value for the Bank’s business by their
efficient and creative work.
Employees’ high professional skills, opportunities for revealing
their talents and capabilities, an ability to use them for the
benefit of the bank and the employees themselves — these
are the key factors to the Bank’s success in social policy and
human resources management. The Bank is characterized by
stability of its staff composition while the attrition rate is low
(5%). Headcount as of 31 December 2014 was 482 people.
Headcount Dynamics in 2012–2014 (people)
400
206
358
151
276
168
306
154
328
350
300
250
200
150
100
50
0
2011
Regional network
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2012
2013
2014
Parent bank
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Expobank
2014
3
ANNUAL REPORT
Vacancy Closure Structure (%)
Headcount Structure in 2014 (people)
450
36
62
49
55
191
171
49
82
65
30
104
97
39
62
31
58
176
108
39
66
26
Line positions 49
196
106
Key positions Students 9%
60%
31%
400
350
300
250
200
150
100
50
0
Male
Female
2011
45 y.o. and older
Male
Female
Male
2012
Female
2013
Male
Female
2014
30–45 y.o.Under 30 y.o.
The Bank has introduced a flat organizational structure that
enables it to resolve all operational matters of daily activities at
the horizontal level.
Personnel Selection and Adaptation
Active development of the Bank, growth of volumes and diversification of businesses require a regular influx of highly-skilled
professionals to the Company who bring in new experience,
state-of-the art knowledge, advanced technologies. Banking
business, principally, is an intellectual business. That is why it
is the development of the company’s intellect that comes first
today, while the value of any company is its people.
To create a team of high profile and professional
fellow-thinkers ready to solve any challenging
tasks, able to take advantage of the market
environment, the Bank implements a complex
approach to recruitment of skilled employees:
planning of staff selection, with strategic goals and
operational tasks taken into account;
In a accordance with this approach, during 2014 the Bank
recruited high-skilled team members.
Expobank has been developing an active cooperation with
Russian institutions of higher learning that train professionals
in banking and finance. The major goal of cooperation with
universities and colleges is to form with the potential candidates a concept of the Bank as of one of the best employers
and of a company that is ready to engage graduates and build
up long-term partner relations with them. The number of students who had a professional placement in 2014 (as compared
to 2013) increased by 41.4% and made 70 people, out of which
20 were later employed by Expobank LLC.
70
students
had a professional
placement in
Expobank in 2014
The number of students who had
a professional placement in 2014 (as
compared to 2013) increased by 41.4%
recruitment of candidates meeting the requirements
of the Bank and position;
creating and maintaining an image of an attractive
employer bank;
organization of professional placements for students
of field-specific institutions of higher learning.
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Expobank
2014
3
ANNUAL REPORT
58
employees of the
Bank were awarded
in 2014
As part of the corporate competition
system implementation process,
at the end of 2014, 58 most efficient
employees were awarded for their
high performance
The motivation system in the Bank
is transparent and easily understandable
to each employee. It stipulates clear and
transparent principles for setting target
amounts of bonuses and calculation of their
actual values based on KPI’s.
Remuneration
and Employee I ncentives
Apart from material incentives, the Bank consistently develops
a system of non-material incentives for individual and team
performance results.
Today the Bank applies a competitive remuneration system consisting of the fixed and variable components. The amount of the
fixed component is determined on the basis of the labor market
analysis for the region where the Bank operates whose results
are used for regular employee-by-employee review of their
income levels. The variable component is represented by the
incentive system aimed at enhancement of performance results,
focused on achievement of both individual and collective results,
strengthening of material motivation of the Bank employees.
The variable component depends on the performance efficiency
of each employee, the level of accepted responsibility, the level
of risks the Bank is exposed to as the result of their activities.
As part of the corporate competition system implementation
process, at the end of 2014, 58 most efficient employees were
awarded for their high performance. Of them 12 employees and
3 subdivisions with the highest results received awards on the
stage during the ceremony dedicated to the main corporate
event of the year.
Training and Development
The bank implements programs on the employees’ development, their advanced training, expansion of their professional
horizons on the regular basis. Development of intellectual environment is among top priorities in the Bank’s strategy.
As part of the implemented complex program on personnel
training and development for 2014, 178 employees (40%)
successfully completed their training, with over 100 various
courses, seminars, trainings organized for the team members
contributing to the process. Also, to meet the regulator’s
requirements, skills enhancement training was organized for
20 employees of the Bank.
The Bank is focused on long-term partner
relationships between the Bank and its
team. Preparation of the managerial
back-up out of the employees is based on
a two-level model of formation of a talent
pipeline, which contributes to the
improvement of interaction within the team,
to professional development and personal
fulfillment of promising team members
and promotes innovation.
Following the strategic priorities implementation plan, ‘English
Language School’ was opened for our employees to improve
their English skills.
In 2014 a system of distance learning began its operations
in the Bank. This made possible to conduct wide-scale distance learning and staff assessment. Since the launch of DLS
348 people have already had their skills assessed.
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Expobank
2014
3
ANNUAL REPORT
Labor Safety
Social Policy
Expobank LLC takes a responsible approach in carrying out its
duties on labor safety, considering this process not as employer’s additional expenses but as investment in human capital.
Undoubtedly, value of human factor, of human resources is
an important element of modern business. That is why labor
safety and health protection of its team members is one of top
priorities for the Bank in the organization of work processes.
Activities of the Bank in labor safety are comprised of special
assessments of working conditions, provision of individual
employee categories with personal protective clothing and
equipment and overalls, personnel health and safety trainings
and trainings on safe working procedures, organization of medical examinations for employees at hiring stage and further
throughout their work activities.
A number of measures have been introduced in the Bank aimed
at health promotion and ensuring proper rest and recreation
of the employees, at support of parenthood and family, at protection against the risks of unfavorable events occurrence.
The Bank does not only take care of its employees
but also gives support to their families providing
social benefits and guarantees. In 2014, over
RUB 2,300,000 of the following social benefits
were paid to the Bank employees:
Birth of a child in an employee’s family
First official marriage
In 2014 Expobank completed the pro
ject on special assessment of working
conditions. During this assessment
hazardous working conditions at work
places were not identified.
Employee’s coming of retirement age
Death of an employee’s close relative
Support for the employees parenting a disabled child
Challenging life circumstances of an employee
2,300,000
In 2014, over RUB 2,300,000 of various
social benefits were paid to the Bank
employees
Besides, in addition to the existing elements of the intracorporate employee social protection in 2014, those employees who
had worked in the Bank for at least 1 year had an opportunity
to choose a specific social benefit: either a private health
insurance policy or a compensation for a fitness center season
pass.
Corporate Culture
One of the important tasks of HR
management policies in 2014 was
enhancement and promotion of corporate
culture. Corporate culture manifests itself
in a positive image of the Bank within the
team, in the high level of employee loyalty,
in the unified employees and in the strong
team spirit.
In 2014 the Bank continued developing channels of interaction with its team members. The key information channels for
employees were email newsletters containing the news of the
Bank and banking sector, information about events held in the
Bank, about achievements of our team members and successes
of our football team.
In 2014, the Bank launched its corporate newsletter ‘Express’,
whose every issue contains both businesses’ news, official
information and articles and notes on various creative projects, about the life of the Bank team members outside office
and other interesting facts.
сотрудников Банка
были отмечены
в 2014 году
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Expobank
2014
3
ANNUAL REPORT
To assess the level of employee loyalty and satisfaction,
the Bank regularly (every six months) holds employee opinion
surveys via its intranet portal to obtain feedback from its team
members. Survey results prove that employee loyalty and satisfaction are quite high. This signifies that all events organized
and held by the employer to improve employee loyalty are
efficient and yield planned results.
Charity
Corporate events, as a common cause, bring
people together. They provide a unique
opportunity to meet colleagues again,
to see them in a casual environment. That
is why organization of corporate festivals,
football tournaments and creativity
contests for Expobank employees has
grown into a good tradition.
In 2014 Charity Committee was set up in
the Bank.
In 2014 Expobank celebrated its 20th anniversary. The jubilee
festive events were held in a sports manner, in the open air, and
included team events and creativity competitions.
Undoubtedly, the most important corporate event for the Bank
team members in 2014 was a jointly organized New Year Party
in Riga attended by employees of Expobank and its partner
banks from Latvia and the Czech Republic.
Expobank, as a socially responsible company, has a proactive attitude and takes part in the development and support
of charity programs. It is this way that we can contribute
to and have a positive impact on the resolution of the key social
issues of our society.
Two major lines in charity work of the Bank in 2014 were:
Assistance to the children’s home in the settlement
of Baryshevo (Novosibirsk region)
Support to the children’s football team ‘Metallist’ in the
town of Korolev (Moscow region).
In 2014, Expobank renovated the gymnasium of the children’s
home in Baryshevo which earlier could not be used because
of exceptionally neglected condition.
In 2014, Expobank gave new training uniforms and backpacks
to young footballers from Korolev.
Charity aid of Expobank is targeted and
socially focused. The principles of our
activities are tangible results, propaganda
and promotion of healthy lifestyles. The Bank
welcomes readiness of its team members
to use their personal time and their skills
for participation in the charity events
on a voluntary basis.
Tasks for 2015
Formation of favorable business environment,
incentives to enhance performance, investment
in people — these matters have always been
of primary importance for the Bank. For 2015,
improvements in adaption processes for
newcomers are planned, as well as enhancement
of corporate culture in the Bank, to implement
which the following tasks are set:
Internal communication rules to be formulated;
Code of Corporate Conduct to be introduced;
Effort on cascading corporate values through line
managers to be intensified;
Corporate traditions within subdivisions
to be developed.
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57
Karlštejn Castle
Turaida Castle
The castle was founded in 1348 by Charles IV, Holy
Roman Emperor-elect and King of Bohemia, as his summer residence and a place for safekeeping the Imperial
Regalia. The castle was constructed following the design
of Matthias of Arras as a gothic fortress but in the 16th
century the royal apartments were renovated in the
Renaissance style. The castle was erected on the slopes
of a 72-meter limestone cliff above the Berounka river.
Turaida Cstle was founded in 1214 and for five centuries
it had been a residence of Riga bishops and an estate
of the Baltic nobility. After the fire of 1776 the castle grew
dilapidated but its romantic ruins still attracted travelers
for quite a long time. Reconstruction of the monument
began only in 1953. At present, the castle is open to the
public but archeological studies and restoration works
still continue.
28 km from Prague,
the Czech Republic
Sigulda, Latvia
PREMIUM FEEL
Modern banking is affordable by nature: an ideal bank
should make it comfortable for each client including the
most demanding ones, because an ideal bank should
think of the needs of everyone. Expobank creates products affordable to all and at the same time develops
premium banking programs. Expoabnk Premier means
premium products and services and also a unique
privileges program for clients. Royal service remains in
demand at all times.
Kolomenskoye Palace
A magnificent wooden palace with emerald-green domes
and turrets was constructed in the 17th century at the
order of the Tsar Alexey Mikhailovich. The glorious interior
décor of the country palace unfailingly was admired by
foreign guests. But in the second half of the 18th century
the wooden structure fell into disrepair and was demolished. In 2010 the Kolomenskoye Palace was rebuilt
according to the preserved model.
Moscow, Russia
Expobank
2014
4
ANNUAL REPORT
Financial Statements
Independent Auditors’ Report
§
Independent Auditors’ Report
Ernst & Young LLC
Sadovnicheskaya Nab., 77, bld. 1
Moscow, 115035, Russia
To the Shareholders and Board
of Directors of Expobank LLC
Report on the financial statements
We have audited the accompanying financial statements
of Expobank LLC (the Bank), which comprise the statement
of financial position as at 31 December 2014, and the statement of comprehensive income, statement of changes in equity
and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory
information.
Management’s responsibility
for the financial statements
The Bank’s management is responsible for the preparation
and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for
such internal control as management determines is necessary
to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
Tel: +7 (495) 705 9700, +7 (495) 755 9700
Fax: +7 (495) 755 9701
www.ey.com/ru
Auditors’ responsibility
Opinion
About the audited entity
Our responsibility is to express an opinion on these financial
statements based on our audit.
In our opinion, the financial statements present fairly, in all
material respects, the financial position of the Bank as at
31 December 2014, and its financial performance and its cash
flows for the year then ended in accordance with International
Financial Reporting Standards.
Name: Expobank LLC
We have conducted our audit in accordance with the Federal
Standards on Auditing effective in the Russian Federation and
International Standards on Auditing. These standards require
that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud
or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and
fair presentation of the financial statements in order to design
audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and
the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation of the
financial statements.
An entry to Unified State Register of Legal Entities was made
on 5 November 2002, with Principal
State Registration Number 1027739504760 assigned.
Located at: 29 Kalanchevskaya Street, bldg 2, Moscow,
Russia 107078
About the auditor
Name: Ernst and Young LLC
A.V. Sorokin
Partner
Ernst and Young LLC
29 April 2014
An entry to Unified State Register of Legal Entities was made
on 5 December 2002, with Principal
State Registration Number 1027739707203 assigned.
Located at: 77 Sadovnicheskaya Embankment, bldg 1,
Moscow, Russia 115035
Ernst and Young LLC is a Member of Self-Regulated Auditors’
Organization Nonprofit Partnership ‘Auditors Chamber
of Russia’ (SRO NP ACR).
Ernst and Young LLC is included in the check copy
of the Auditors and Audit Organizations
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Register under the entry main registration number
10201017420.
A member firm of Ernst & Young Global
Limited.
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Expobank
2014
4
ANNUAL REPORT
Statement of Financial Position
§
Statement of Financial Position
(in thousands of Russian rubles)
Notes
31 December
2014
31 December
2013
Assets
Cash and cash equivalents
6,808,070
7
320,511
248,140
6,993,522
— non-pledged trading securities
— pledged trading securities sold under direct repurchase agreements
Obligatory reserve with the CBR
31 December
2013
8
16
11,780,109
11,102,390
Amounts due to customers
17
31,259,071
26,135,998
8,065,424
Debt securities issued
19
1,601,904
2,290,773
4,702,545
3,107,958
Deferred tax liabilities
25
19,172
—
2,290,977
4,957,466
Other liabilities
18
333,247
306,744
Total liabilities
44,993,503
39,835,905
10,413,412
10,413,412
548,256
548,256
(1,649,137)
(3,204,088)
(2,950,000)
—
Unrealized gains on revaluation of available-for-sale financial assets
117,805
—
Revaluation reserve for property and equipment
454,299
424,490
6,934,635
8,182,070
51,928,138
48,017,975
9
2,884,343
1,085,545
Loans to customers
10
26,472,193
27,803,096
Finance lease receivables
11
400,932
1,443,367
Investment securities available for sale, including:
12
1,070,779
288,865
Share capital
1,070,779
106,958
Share premium
—
181,907
3,764,762
—
326,834
—
3,437,928
—
2,435
20,482
— non-pledged available-for-sale securities
— pledged available-for-sale securities sold under direct repurchase
agreements
12
— non-pledged held-to-maturity securities
— pledged held-to-maturity securities sold under direct repurchase
agreements
Prepayment for current income tax liabilities
Deferred tax assets
25
—
419,195
Intangible assets
14
40,573
81,584
Property and equipment
13
1,618,220
1,638,582
Other assets
15
186,025
115,625
51,928,138
48,017,975
Total assets
31 December
2014
Amounts due to other banks
Amounts due from other banks
Investment securities held to maturity, including:
Notes
Liabilities
8,173,843
Trading securities, including:
Equity
20
Accumulated loss
Dividends paid
Total equity
Total liabilities and equity
20
Signed on behalf of the Management Committee on 29 April 2015
K.V. NifontovG.M. Ulanova
Chairman of the Management Committee
Chief Accountant
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Expobank
2014
4
ANNUAL REPORT
§
Notes
2014
2013
Interest income
21
5,183,600
4,130,556*
Interest expense
21
(2,539,681)
(1,973,219)*
2,643,919
2,157,337
(66,871)
(633,059)
2,577,048
1,524,278
Net interest income
Allowance for impairment of loans to customers and finance lease receivables
10, 11
Net interest income after allowance for loan impairment
Notes
Profit before tax
(Income tax) / income tax benefit
25
Net profit after tax
Loss on discontinued operations, net of income tax
33
Profit for the year
2014
2013
2,039,482
1,480,980
(435,044)
(364,705)
1,604,438
1,116,275
(49,487)
—
1,554,951
1,116,275
117,805
1,039
Other comprehensive (loss)/income:
Fee and commission income
22
385,240
614,449
Fee and commission expense
22
(84,056)
(159,040)
(319,402)
(289)
Losses net of gains from derivative financial instruments
(61,301)
(782)
Gains less losses from foreign currencies
734,033
15,943
(1,423,275)
228,922
Revaluation of property and equipment
13
37,261
118,459
—
(22,204)
Income tax recognized directly in other comprehensive income
25
(7,452)
(23,692)
147,614
95,806
1,702,565
1,212,081
Losses net of gains from trading securities
(Losses net of gains) / gains less losses from foreign currency translation
Losses on sale of loans and advances to customers and other banks
33
10, 11
Gains less losses on sale of investment securities available for sale
33
1,302,886
7,647
Other operating income
23
159,591
1,255,523
15, 18
(39,613)
(61,920)
Other impairment and provisions
Administrative and other operating expenses
24
(1,510,522)
(1,921,547)
Excess of acquirees' net assets over cost of investments
33
874,824
—
Disposal of subsidiaries
33
(555,971)
—
64
Other comprehensive income to be reclassified to profit
or loss in subsequent periods:
Unrealized gains on investment securities available for sale, net of tax
Other comprehensive income not to be reclassified to profit or loss in
subsequent periods:
Other comprehensive income for the year
Total comprehensive income for the year
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Expobank
2014
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ANNUAL REPORT
Statement of Cash Flows
Total equity
Non-controlling interests
Equity attributable
to owners of the Bank
Dividends to shareholders
of the Bank
Accumulated loss
Revaluation reserve for
property and equipment
Statement of Cash Flows
10,319,835 407,623
Profit for the year
—
—
Other comprehensive income for
the year
(1,039) 329,723(4,320,363)
—
1,039
Total
comprehensive income for the year
—
20
—
93,577 140,633
1,039
94,767
—
94,767 1,116,275
1,116,275
—
95,806
—
1,212,081
— 1,116,275
—
95,806
— 1,212,081
— 424,490(3,204,088)
—
8,182,070
— 8,182,070
Profit for the year
—
—
1,554,951
— 1,554,951
—
—
—
Balance at 31 Decem10,413,412 548,256
ber 2013
—
—
— 1,116,275
6,735,779 234,210 6,969,989
—
— 1,554,951
234,210 (234,210)
—
117,805
29,809
—
—
147,614
—
147,614
20
Balance
at 31 December 2014
—
—
117,805
—
—
—
10,413,412 548,256
29,809 1,554,951
—
—
1,702,565
— 1,702,565
— (2,950,000) (2,950,000)
— (2,950,000)
117,805 454,299(1,649,137) (2,950,000)
6,934,635
2013
4,080,595
(2,594,084)
(2,239,641)
Fees and commissions received
385,240
798,938
Fees and commissions paid
(84,056)
(159,040)
(319,402)
(289)
734,033
15,943
Proceeds from sale of loans to customers and finance lease receivables
55,101
887,631
Other operating income received
96,500
1,268,314
(1,417,406)
(1,635,523)
(15,533)
(21,221)
2,088,738
2,995,707
(72,371)
49,474
Net decrease/(increase) in trading securities
1,099,346
(2,809,589)
Net decrease/(increase) in amounts due from other banks
3,397,280
(199,374)
Net decrease/(increase) in loans and advances to customers
3,145,409
(13,934,205)
(18,262)
366,888
(3,148,396)
1,085,085
228,086
5,241,113
(1,388,624)
486,144
(257,272)
(726,097)
5,073,934
(7,444,854)
Administrative and other operating expenses paid
Income tax paid
Cash flows from operating activities before changes
in operating assets and liabilities
Net (increase)/decrease in mandatory cash balances with central banks
Net (increase)/decrease in other financial and non-financial assets
Net increase/(decrease) in amounts due to other banks
Net increase/(decrease) in amounts due to customers
Net (decrease)/increase in other financial and non-financial liabilities
Net cash from / (used in) operating activities
Total comprehensive income
for the year
2014
5,248,345
Net (decrease)/increase in debt securities issued
Other comprehensive income for
the year
66
Interest received
Losses from trading securities
—
Notes
Cash flows from operating activities
Interest paid
—
Dividends
to shareholders
of the Bank
Gains from dealing in foreign currencies
Balance
at 1 January 2013
Merger
of a subsidiary
Unrealized gains on
revaluation of available-forsale financial assets
Share premium
(in thousands
of Russian
rubles)
Share capital
Notes
Statement of Changes in Equity
§
— 6,934,635
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67
Экспобанк
Expobank
2014
5
ANNUAL REPORT
General
Addresses / Contacts
General
Notes
2014
2013
1| Moscow “Business Center
“Kalanchevsky” Subsidiary Office
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired
33
3,553,798
128,312
Proceeds from disposal of a subsidiary, net of cash disposed
33
(8,181,488)
—
(3,124,657)
(101,819)
Purchase of investment securities available for sale
Proceeds from sale of investment securities available for sale
33
Proceeds from redemption of investment securities available for sale
Purchase of property and equipment
13
Proceeds from sale of property and equipment
Purchase of intangible assets
14
Net cash (used in) / from investing activities
4,001,788
784,277
106,958
—
(30,483)
(17,778)
17,370
22,706
(8,980)
(14,522)
(3,665,694)
801,176
Cash flows from financing activities
Dividends paid to shareholders of the Bank
20
(2,950,000)
—
Bonds issued that were purchased by the Bank for subsequent resale
19
(223,095)
—
Proceeds from bonds issued in the domestic market
Net cash (used in) / from financing activities
Net (decrease)/increase in cash and cash equivalents
—
1,500,000
(3,173,095)
1,500,000
1,365,773
(4,579,220)
Cash and cash equivalents, beginning
7
6,808,070
11,387,290
Cash and cash equivalents, ending
7
8,173,843
6,808,070
Branch Manager: Elena Pokidysheva
Address:
Moscow, ul. Kalanchevskaya, 29, blg. 2
Working hours:
Individuals:
Monday — Friday: 09:00 — 20:00
Lunch break: none
Saturday, Sunday: closed
Legal entities:
Monday — Thursday: 09:30 — 16:00
Friday: 09:30 — 16:45
Lunch break: none
Cash service for Legal entities:
Friday: 09:30 — 16:00
Lunch break: none
Cash service for Individuals:
Lunch break: none
Telephones:
Legal entities:
+7(495) 231-22-83,
8 (800) 500-07-70, 8 (495) 231-11-11
8 (495) 228-31-31, ext. 1010
2| Moscow “Business Center
“Malay Dmitrovka” Subsidiary
Office
Branch Manager: Vera Ermakova
Address:
127006, Moscow, ul. Malaya Dmitrovka, 20
Working hours:
Private banking — Expobank Premier:
Friday: 9:30 — 18:00
Lunch break: none
Friday: 10:00 — 18:00
Lunch break: none
Legal entities:
Friday: 09:30 — 17:00
Lunch break: none
Friday: 09:30 — 16:00
Lunch break: none
Telephones:
+7 (495) 231-11-59
3| Moscow “Na Valovoy”
Subsidiary Office
Branch Manager: Maxim. Khudyakov
Address:
115054, Moscow, ul. Valovaya, 6
Working hours:
Individuals:
Legal entities:
Lunch break: 14:15 — 15:00
Lunch break: 14:15 — 15:00
Telephones:
8 (800) 500-07-70, +7 (495) 231-11-11
+7 (495) 228-31-31, ext. 1020
4| Moscow “Na Bolshoy
Yakimanke” Subsidiary Office
Branch Manager: Dmitry Zagorsky
Address:
119180, Moscow, ul. Bolshaya Yakimanka, 23
Working hours:
Individuals and Legal entities:
Lunch break: 13:00-14:00
Cash service:
Lunch break: 13:00-14:00
Telephones:
+7 (495) 213-19-94
68
www.expobank.ru
69
Expobank
2014
5
ANNUAL REPORT
General
5| Branch
Yekaterinburg
Branch Manager: Vadim Golofast
Address:
620026, Sverdlovsk region, Yekaterinburg,
ul. Rozy Luxemburg, 49
Cash service:
Friday: 09:00 — 16:45
Lunch break: none
Telephones:
8 (800) 500-07-70, +7 (495) 231-11-11
+7 (495) 228-31-31, ext. 1080
Friday: 09:00 — 16:45
Lunch break: none
Legal entities:
Friday: 09:00 — 16:45
Lunch break: none
Cash service:
Friday: 09:00 — 16:45
Lunch break: 12:45 — 13:30
Telephones:
8 (800) 500-07-70, +7 (495) 231-11-11
+7 (495) 228-31-31, ext. 3010
7| Surgut
“Na Lenina” Operational Office
Branch Manager: Elizaveta Nikolaeva
Address:
628426, Tyumen region, Khanty-Mansiisk
Autonomous District — Yugra, Surgut,
pr. Lenina, 66
Working hours:
Individuals:
Friday: 09:00 — 16:45
Lunch break: 13:00 — 13:45
Telephones:
8 (800) 500-07-70, +7 (495) 231-11-11
+7 (495) 228-31-31, ext. 1090
6| Surgut
“Surgutsky” Operational Office
8| Branch
in Saint Petersburg
Branch Manager: Svetlana Ivanova
Branch Manager: Pavel Galan
Address:
628403, Tyumen region, Khanty-Mansiisk
Autonomous District — Yugra, Surgut,
district 33, ul. 30 let Pobedy, 41
Working hours:
Individuals:
Friday: 09:00 — 16:45
Lunch break: none
Legal entities:
Friday: 09:00 — 16:15
Lunch break: none
70
8 (800) 500-07-70, +7 (495) 231-11-11
+7 (495) 228-31-31, ext. 1050
9| Branch in Perm
Branch Manager: Natalia Melnik
Address:
Working hours:
Individuals:
Telephones:
Address:
196084, Saint Petersburg, Moskovsky
prospect, 74, bldg. A, office 3H
Working hours:
Individuals:
Lunch break: none
Legal entities:
Friday: 09:00 — 16:45
Lunch break: none
Cash service:
Lunch break: none
614000, Perm, ul. Pushkina, 84
Working hours:
Individuals:
Lunch break: none
Legal entities:
Lunch break: none
Cash service:
Lunch break: 13:00 — 13:45
Telephones:
8 (800) 500-07-70, +7 (495) 231-11-11
+7 (495) 228-31-31, ext. 2010
11| Novosibirsk
“Akademichesky” Subsidiary
Office
Branch Manager: Larisa Deeva
Address:
630090, Novosibirsk, pr-kt Akademika
Koptyuga, 15
Working hours:
Individuals:
Lunch break: none
Legal entities:
Lunch break: none
Cash service:
Lunch break: none
Telephones:
8 (800) 500-07-70, +7 (495) 231-11-11
+7(495) 228-31-31, ext. 2020
13| Krasnoyarsk “Tsentralny”
Operational Office
Working hours:
15| Krasnoyarsk
“Na Parizhskoy Kommuny”
Operational Office
Individuals:
Branch Manager: Ekaterina Vlassova
Address:
660021, Krasnoyarsk, ul. Gorkogo, 3k
Friday: 09:00 — 16:45
Lunch break: none
Legal entities:
Friday: 09:00 — 16:45
Lunch break: none
Cash service:
Friday: 09:00 — 16:45
Lunch break: 13:00 — 13:30
Telephones:
8 (800) 500-07-70, +7 (495) 231-11-11
+7 (495) 228-31-31, ext. 2040
10| Branch in Novosibirsk
Branch Manager: Anna Bogdanova
Branch Manager: Andrey Morozov
Address:
Address:
Branch Manager: Natalia Khromova
Working hours:
Individuals:
Lunch break: none
Legal entities:
Lunch break: none
Cash service:
Lunch break: none
Telephones:
8 (800) 500-07-70, +7 (495) 231-11-11
+7 (495) 228-31-31, ext. 2030
Working hours:
Individuals:
Lunch break: none
Legal entities:
Lunch break: none
Cash service:
Lunch break: none
Telephones:
8 (800) 500-07-70, +7 (495) 231-11-11
+7 (495) 228-31-31, ext. 1070
www.expobank.ru
Address:
660049, Krasnoyarsk, ul. Parizhskoy
Kommuny, 33
Working hours:
Individuals:
Lunch break: none
Legal entities:
Lunch break: none
Cash service:
Lunch break: 14:00 — 14:30
Telephones:
14| Krasnoyarsk
“Na Svobodnom” Operational
Office
650000, Kemerovo, Central district, ul.
Krasnaya, 4, office 48
8 (800) 500-07-70, +7 (495) 231-11-11
+7 (495) 228-31-31, ext. 2070
Branch Manager: Andrey Pushkarev
12| Kemerovo
“Kuzbassky” Operational Office
630099, Novosibirsk, Krasny prospect, 25
Telephones:
Address:
660028, Krasnoyarsk, ul. Novosibirskaya,
48
Working hours:
Individuals:
Lunch break: none
Legal entities:
Lunch break: none
Cash service:
Lunch break: 13:00 — 13:30
8 (800) 500-07-70, +7 (495) 231-11-11
+7 (495) 228-31-31, ext. 2050
16| Krasnoyarsk
“Na Vzletke” Operational Office
Branch Manager: Kseniya Vekovenko
Address:
660077, Krasnoyarsk, ul. 78
Dobrovolcheskoy brigady, 14, bldg. A
Working hours:
Individuals:
Lunch break: none
Legal entities:
Lunch break: none
71
Expobank
2014
ANNUAL REPORT
Cash service:
18| Branch in Krasnodar
19| Branch in Yakutsk
Branch Manager: Alexander Tolpygin
Branch Manager: Evgeny Menyaylov
Address:
Address:
Working hours:
Working hours:
Individuals:
Individuals:
Legal entities:
Legal entities:
Individuals:
Cash service:
Legal entities:
Telephones:
Lunch break: 13:00 — 13:30
Telephones:
8 (800) 500-07-70, +7 (495) 231-11-11
+7 (495) 228-31-31, ext. 2080
17| Novokuznetsk
“Novokuznetsk” Operational
Office
Branch Manager: Lyudmila Chernyak
Address:
654007, Kemerovo region, Novokuznetsk,
Central District, prosp. N.S. Ermakova, 9A
Working hours:
Friday: 09:00 — 16:45
Lunch break: none
Friday: 09:00 — 16:45
Lunch break: none
Cash service:
350001, Krasnoвфк, Karasunsky District,
ul. Shevchenko, 134/1
Friday: 09:00-16:45
Lunch break: none
Friday: 09:00-16:45
Lunch break: none
Friday: 09:00-16:15
Lunch break: 12:45 — 13:30
+7 (861) 214-32-77
677999, the Sakha (Yakutia) Republic,
Yakutsk, prosp. Lenina, 24
Friday: 09:00-16:45
Lunch break: none
Friday: 09:30 — 16:00
Lunch break: none
Friday: 09:00 — 16:45
Lunch break: none
Saturday, Sunday: closedv
Lunch break: none
Telephones:
+7 (4112) 23-40-04
Friday: 09:00 — 16:15
Lunch break: 12:45 — 13:30
Telephones:
Data as of 01 July 2015
72
©Design by YellowDog
+7 (3843) 91-09-23
www.expobank.ru

business in three dimensions

Transcription

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