OREANDA-NEWS. January 30, 2013. Vneshprombank was registered by the Bank of Russia on July 3, 1995, and operates on the ground of General License #3261. Additionally, the bank has a license to attract deposits and place precious metals, to act as a professional securities market player to perform brokerage, dealer and depository activities, to perform securities management activities, and a stock agent license for futures and option deals on stock exchanges. On October 21, 2004, Vneshprombank was included in the register of banks participating in the endowment insurance system and was assigned number 103. The Bank's head office is located in Moscow. Its chain includes 21 branches (Yekaterinburg and Yaroslavl branches were opened in 2012), 32 subsidiary and 15 operational offices. The development plans include territorial coverage expansion: nine branches are scheduled for 2013, including branches in new regions. The bank's ownership structure is predominated by intermediate companies and includes 18 legal entities and physical persons (each owns less than 10 percent). The shareholders directly participate in the bank's operations and are members of the Board of Directors and the Board of the Credit Organization. Enterprise business is the bank's core activity, but Vneshprombank provides its clients with a full range of banking services and positions itself as a universal lending institution. Analysis of financial statements evidences the growth of key financial indicators, which is faster than the market overall. In 2012 the bank was included in the TOP 50 Russian lending institutions by volume of assets, loan portfolio, capital and profits.

Net assets exceed RUB 110 billion, and net worth as of 12.1.2012 was RUB 14.442 billion. During 2012, the Bank increased its registered capital three times (The last increase took place on 10.5.2012, to RUB 4.45 billion). The amount of net worth is supported by profit capitalization and subordinate loans (The total amount is RUB 3.9 billion). The regulative indicator of net worth sufficiency has an adequate safety level against the limit (Н1=15.2% as of 01.12.2012). The asset structure is well diversified in classes. The main vector of assets is traditionally the client loan portfolio (about 60% of assets as of 12/1/2012, with growth at ~45% YOY). The share of legal entity loans (the main area is enterprise client lending) is several magnitudes greater than the debt of physical persons. Retail loans are mainly provided to enterprise employees that provide services to the Bank. Vneshprombank is partner to a state program to support SMEs (MPS-Bank). As of 12.1.2012, about RUB 300 million in loans were provided to small and medium enterprises. Low concentration levels (the group of 20 largest borrowers) forms about 10% of client loans or 50% of net worth); the traditionally low level of debt in arrears (less than 0.5%) and virtually total absence of carried-over loans evidence the high quality of default risk management in the bank. Client assets (~80% of liabilities, mainly due liabilities, the increase of ~30% YOY, the share of physical person deposits is ~20% of total bank liabilities, which is an increase compared to the last year) form the basis of the resource base. As a negative factor, there is a high concentration of funding that uses the assets of the largest liabilities -forming clients.

Since 2009 Vneshprombank has a public credit history. Today, bonds for the total amount of RUB 6 billion issued by the bank are in circulation. Vneshprombank's bonds are included in the Lombard list of the Bank of Russia. “The agency is positive about the bank's main financial indicators and the high commitment of its owners to further development of the lending institution. The wide spectrum of licensed authority, significant territorial coverage and a growing branch infrastructure, the availability of public credit history, high financial outcomes, increased profitability indicators, and the good quality of the bank’s assets are among positive factors that support the rating,” says Katerina Artemyeva, Chief of the Analytical Department at the National Rating Agency. While noting the sustainable approach of the bank to risk management and its proven capability to limit risks generated by the increase of assets, the agency (considering the bank's plans for further lending growth) notes the importance of management's efforts to strengthen risk management and monitoring procedures. The bank provides for IFRS accounting audited by Rosekspertiza. The National Rating Agency (NRA) has operated since 2002 and is one of Russia's leading independent agencies. Currently, over 300 legal entities are among NRA’s clients for contact credit ratings. Over 800 companies and banks participate in other NRA information projects. NRA is accredited by the Russian Federation's Ministry of Finance. NRA ratings are officially recognized by the Central Bank of the Russian Federation, the Federal Service for Financial Markets, Moscow Stock Exchange, MEDT of Russia, Vnesheconombank, ROSNANO, the Agency of Mortgage and Housing Financing (AMHF), the National Association of Fund Association (NAFA), the National Fund Association (NFA), the National League of Management Companies (NLMC), and the Association of Russian Banks (ARB). NRA has a subsidiary partner agency in Ukraine (the National Rating Agency), and has been a member of the European Association of Credit Rating Agencies (ЕACRA) since 2011. Since 2008, NRA follows the Code of Rating Agency Professional Ethics approved by the NFA SRO council.