2. ANALYSIS OF JSC PROMSVYAZBANK'S FINANCIAL POSITION.
1 Brief description of the bank's activity.
Full name of the bank - "Open Joint-Stock Company "Promsvyazbank"
Full name of the bank in English - "Open Joint-Stock Company Promsvyazbank
Year of foundation of the bank - 1995
Main state registration number - 1027739019142
The date of entry in the Unified State Register of Legal Entities (USRLE) is July 26, 2002.
Location: 109052, Moscow, Russia, 10, Smirnovskaya St., building 22
President - Konstantyan Artem Georgievich
OJSC Promsvyazbank is one of the leading Russian private banks: in the current rating of The Banker magazine, OJSC Promsvyazbank is among the 500 largest banks in the world in terms of equity capital.
The Bank was founded in 1995 as a closed joint-stock company "Promsvyazbank". In October 2007, the Bank changed its type of joint-stock company from closed to open.
In the summer of 2008, Promsvyazbank Group was established, and in addition to Promsvyazbank, Volgoprombank became a part of it. In early 2011, OJSC Yaroslavl Commercial Bank for Social Development and OJSC NB Nizhny Novgorod were also integrated into the PSB Group. In June 2010, Nizhny Novgorod Bank and Volgoprombank joined Promsvyazbank
The main owners of the bank are brothers Dmitry and Alexey Ananyev (for two 72.93% of shares). One of the Ananyev brothers, Alexey, is the chairman of the bank's board of directors. Alexander Levkovsky has been the President of the Bank for many years, and currently, the President of the Bank is Artem Konstantin.
The bank has the following long-term ratings of international rating agencies: "Ba2" by Moodys Investors Service, "BB-" by Fitch Ratings, as well as an individual credit rating of "AA+" by the National Rating Agency. Promsvyaz Capital B.V. owns 88.25% of the bank's authorized capital, and 11.75% belongs to the European Bank for Reconstruction and Development.
2 Analysis of financial condition.
The analysis of aggregated balance sheet data allows us to draw the following preliminary conclusions about the bank.
Firstly, the bank's liabilities are formed by more than 54% of the clients' funds on settlement and deposit accounts. The analysis of the structure of the clients' funds allows to draw a conclusion that the share of funds on settlement accounts decreases from 6,06% to 6,08% and 5,42%, and also there is a sharp decrease of funds on deposit accounts of legal entities from 42,9% to 7,98%, then increases to 18,55%, while the funds raised from individuals increase from 38,77% to 39,07% and 40,69%. In spite of the decrease in balances on accounts of corporate clients of the bank, this tendency characterizes positively the resource base of the bank, as funds in deposits are a relatively stable resource for the bank, which allows it to place these funds in urgent active operations with minimal risk of liquidity loss.
Secondly, equity in the bank's liabilities in absolute terms has a positive dynamics (from 4531045 thousand rubles to 4578179 thousand rubles and 4811500 thousand rubles), while it should be noted that in relative terms the share of equity in the balance sheet currency decreases from 7.79% to 7.38% and 7.18%. This testifies to the fact that the growth rates of attracted resources are higher than the growth rates of the bank's equity capital. This fact allows us to judge that the bank uses its sources of capital to increase poorly, focusing either on the funds of owners or on subordinated loans.
Thirdly, in the structure of the bank's liabilities, there is an attraction from other banks and the Bank of Russia. It should be noted that the use of such sources, as a rule, is caused by problems with bank liquidity. Such funds have a short term of attraction and cannot be used by banks for funding of active operations, but only for fulfillment by the bank of those obligations which have already come due. The analysis has shown that in the bank the share of funds of other banks attracted in the form of loans and deposits has, in general, started to grow, then decrease (4.35%, 17.46%, 4.04%). It is possible to draw a conclusion that for the analyzed period the bank has eliminated the arisen problems with solvency, as a result of which the need for borrowed interbank resources has decreased, which positively characterizes the bank's activity.
Fourth, the share of centralized borrowings from the Bank of Russia also has decreasing dynamics: from 22,45% to 8,31% and 12,80%. The share of resources attracted by the Bank of Russia significantly exceeds the share of borrowings received in the interbank market. The availability of funds of the Bank of Russia in the composition of attracted funds allows to judge that the bank in question meets all the requirements for obtaining centralized funds (and these requirements are rather strict, especially in terms of ensuring repayment of the loan).
And also the fact that the bank in question has a high share of cheap liabilities attracted from the Bank of Russia, which allows it to get a higher interest margin.
Looking at the bank's assets, we can say that the largest share of them is the loan portfolio, the size of which varies in the order of 46-58%. The second place in the asset structure is occupied by the securities portfolio, its size has an increasing dynamics from 16.91% - in April to 24.94% - in July and 32.54% - in October 2011. The largest volume in the securities portfolio is occupied by investments in debt liabilities.
Analyzing the dynamics of instantly liquid assets, it can be concluded that by October 2011 the share of cash had insignificant fluctuations: in April, cash balances were 1.64% in July-1.63% and in October 1.57%. At the same time, the volume of funds in accounts with the Bank of Russia also decreased from 2.50% in July to 1.88% in October.
To be continued the next part.