11.12.2015, 00:03
Sberbank CIB Announces Preliminary Results of Its Trade Finance
OREANDA-NEWS. A press briefing was held by Andrei Ivanov, Senior Managing Director and Head of Sberbank CIB's Trade Finance and Correspondence Relations Division, who talked about the division's preliminary results for this year and main priorities for 2016.
Mr Ivanov emphasised that in 2015, Sberbank achieved a record figure for net operating income from trade finance, documentary business and settlement business operations, which was 20% larger than the 2014 figure. He went into detail on the products and instruments that were the main drivers of business growth this year.
A new record was achieved in terms of the number of operations using Russian letters of credit. In 2015, more than RUB 245 bln worth of deals were completed, a 45% increase compared to 2014. Mr Ivanov also underlined the potential that a new Sberbank product has for supporting Russian business - Russian "unsecured" letters of credit with advance payment. This offering will benefit Russian companies carrying out commercial activities or providing services in Russia in situations where the buyer or customer needs to defer payment but the supplier or contractor has limited access to financing.
In 2015, cooperation with banks from the Asia-Pacific region continued to be one of the strategic priorities. "As of today Chinese banks have opened trade financing limits worth a total of 12 bln yuan," added Mr Ivanov. Sberbank has recorded growing interest in financing yuan-denominated contracts: over the past year more than 150 letters of credit have been issued in yuan for clients from many Russian regions, who operate in various sectors of the economy.
Sberbank actively offers clients financing with the participation of export credit agencies (ECAs) based in Western and Eastern Europe, China and Japan. More than $2 bln worth of new loans with ECA support have been provided over the past three years (2013-2015).
As of the end of 2015, the volume of deals that Sberbank has carried out with insurance coverage from EXIAR exceeded RUB 24 bln. Since the founding of EXIAR, the Bank has played an active role in forming and using modern instruments to financially support Russian exports. Sberbank is one of the Agency's largest partners in terms of business volume.
Another key area of business that began actively developing in 2015 was commodity trade finance, which Sberbank is developing using its Swiss subsidiary bank. This product line is mainly intended for trading firms that trade goods such as oil, coal, metals, grain, etc. on the international market. Sberbank (Switzerland) AG's clients already include major global traders and the leading Russian exporters in these industries. The volume of CTF deals, which primarily supported Russian exports, amounted to more than $450 mln. This enabled the portfolio for this area of business to be increased by more than 3.5 times.
Despite the challenging market situation, the volume of Sberbank's settlement business with Russian and foreign financial institutions, including those from the Asia-Pacific region, has grown significantly. Mr Ivanov noted that every month around 8.5 mln payments are made in roubles and foreign currencies via loro correspondent accounts opened at Sberbank, an increase of 1.4 mln compared to 2014. The average monthly volume of transactions in 2015 was around RUB 13.0 tln.
In 2016, Sberbank will continue to actively develop its trade finance, documentary business and settlement business by offering clients new products and solutions that are adapted to fit the changing macroeconomic and geopolitical situation.
The development of settlements in national currencies with BRICS nations and countries from the Asia-Pacific region will play an important role in achieving the division's goals. The Bank sees the following as primary growth drivers: increasing the number of operations using national currencies, growing transactions with Russian letters of credit, adding more ECA products, increasing the number deals with EXIAR support, commodity trade finance, bringing principally new products and services to the market (including remote service for financial institutions), and optimising the nostro correspondent account system taking into account new external factors.
Mr Ivanov emphasised that in 2015, Sberbank achieved a record figure for net operating income from trade finance, documentary business and settlement business operations, which was 20% larger than the 2014 figure. He went into detail on the products and instruments that were the main drivers of business growth this year.
A new record was achieved in terms of the number of operations using Russian letters of credit. In 2015, more than RUB 245 bln worth of deals were completed, a 45% increase compared to 2014. Mr Ivanov also underlined the potential that a new Sberbank product has for supporting Russian business - Russian "unsecured" letters of credit with advance payment. This offering will benefit Russian companies carrying out commercial activities or providing services in Russia in situations where the buyer or customer needs to defer payment but the supplier or contractor has limited access to financing.
In 2015, cooperation with banks from the Asia-Pacific region continued to be one of the strategic priorities. "As of today Chinese banks have opened trade financing limits worth a total of 12 bln yuan," added Mr Ivanov. Sberbank has recorded growing interest in financing yuan-denominated contracts: over the past year more than 150 letters of credit have been issued in yuan for clients from many Russian regions, who operate in various sectors of the economy.
Sberbank actively offers clients financing with the participation of export credit agencies (ECAs) based in Western and Eastern Europe, China and Japan. More than $2 bln worth of new loans with ECA support have been provided over the past three years (2013-2015).
As of the end of 2015, the volume of deals that Sberbank has carried out with insurance coverage from EXIAR exceeded RUB 24 bln. Since the founding of EXIAR, the Bank has played an active role in forming and using modern instruments to financially support Russian exports. Sberbank is one of the Agency's largest partners in terms of business volume.
Another key area of business that began actively developing in 2015 was commodity trade finance, which Sberbank is developing using its Swiss subsidiary bank. This product line is mainly intended for trading firms that trade goods such as oil, coal, metals, grain, etc. on the international market. Sberbank (Switzerland) AG's clients already include major global traders and the leading Russian exporters in these industries. The volume of CTF deals, which primarily supported Russian exports, amounted to more than $450 mln. This enabled the portfolio for this area of business to be increased by more than 3.5 times.
Despite the challenging market situation, the volume of Sberbank's settlement business with Russian and foreign financial institutions, including those from the Asia-Pacific region, has grown significantly. Mr Ivanov noted that every month around 8.5 mln payments are made in roubles and foreign currencies via loro correspondent accounts opened at Sberbank, an increase of 1.4 mln compared to 2014. The average monthly volume of transactions in 2015 was around RUB 13.0 tln.
In 2016, Sberbank will continue to actively develop its trade finance, documentary business and settlement business by offering clients new products and solutions that are adapted to fit the changing macroeconomic and geopolitical situation.
The development of settlements in national currencies with BRICS nations and countries from the Asia-Pacific region will play an important role in achieving the division's goals. The Bank sees the following as primary growth drivers: increasing the number of operations using national currencies, growing transactions with Russian letters of credit, adding more ECA products, increasing the number deals with EXIAR support, commodity trade finance, bringing principally new products and services to the market (including remote service for financial institutions), and optimising the nostro correspondent account system taking into account new external factors.
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