The ticket for the high-yield market: why IBC bought the Bank from the seventh hundred


August 8, the Moscow credit Bank (MKB) (11-th place according the Banks.<url>) has announced the completion of the acquisition of the Bank “Savings and Credit Service (ACS Bank, 622 th place) for the development of its platform of investment banking. The Bank was acquired by a group of investors including banker Igor Kim.

“We plan to start with the organization of bond offerings in 2016 — said the Chairman of the management Board Vladimir Chubar. — Will work with large corporate customers of the Bank and with external clients. Finally go to market plan in the first half of 2017. As explained in the press service of the Bank, now as head of the new direction are regarded as candidates of ICD and new managers.

Run investment Bank is a long enough process, just one year is spent on setup of operational processes and IT platforms, says the head of financial markets Department, Promsvyazbank Dmitry Ivanov. However, in his opinion, the main challenge is finding customers after the launch of investment Bank services. Ivanov recalled that almost all large private banks were trying to run an investment Bank, but in full form it was possible to make a little.

According to the senior portfolio Manager of MC “Capital” Andrew Vallejo-Roman, the development of the investment business requires large financial costs that often only the largest banks.

Deputy Chairman of the management Board, head of corporate and investment block of Sovcombank Mikhail Avtukhov adds that the creation of the investment business is a quite difficult and ambitious task, because the market competition is now very stiff and the margins are low. Meanwhile, revenues from investment business, banks are growing in recent years. So, according to the Reuters survey, in the first half of 2016 investment banks in Russia have earned 53% more compared to last year, the volume of commissions for investment banking in Russia for this period amounted to 128,3 million dollars. USA. A leader among investment banks in payments, according to estimates by Reuters, was “Sberbank CIB”.

As emphasized by Mikhail Avtukhov, strong frame, and especially of entire teams with a deep understanding of the specifics of a private Bank and the successful experience of the competition with state-owned banks or international brands almost no. “On the other hand, decisions that are at odds with market conditions may mean the introduction and formation of new trends,” he concluded. S&P analyst Ekaterina Tolstova adds, amid shrinking margins of banks in development of investment business can be one additional source of income for the ICD. “What will the load on capital of MKB will show the pace of development of the investment business. Currently, SKS capital of the Bank is less than 1% of the capital of MKB,” says Tolstov.

Another reason for interest IBC the development of invertabrate may be the presence OFZ in the capital raised a year ago. Recipients of this instrument of state support needs on a monthly basis to increase the portfolio of loans to the real sector. As recalls managing partner National financial research Agency Pavel Samiev, now attractive for banks investments in bonds against the background of falling lending rates. “Especially at ICB many large corporate clients, whose bond issues, it could accompany,” he notes.

Net profit (RAS) of MKB in accordance with IFRS for the first quarter of 2016 was 1.7 billion rubles While the total loan portfolio before provisions for the first three months of the year increased by only 0.6%.