About TransCreditBank

OJSC “TransCreditBank” (general banking license #2142 from the Bank of Russia), established in November 1992, is a top-15 Russian bank by assets.

Full-service commercial bank

The Bank provides a full range of banking services to corporate and retail clients, including lending, deposit taking, account and payroll services, international settlements, transactions with precious metals, stock market operations, retail financing, debit and credit cards issuance and express money transfers.

Strong and supportive shareholders

Shareholders of TransCreditBank include JSC VTB Bank (Moody’s: Baa1, S&P and Fitch: BBB) and JSC “Russian Railways” (Moody’s: Baa1, S&P and Fitch: BBB). VTB Bank holds a 77.79% stake in TransCreditBank. It acquired 43.2% shares of TransCreditBank from minority shareholders in December 2010 and 29.39% from Russian Railways in July 2011, after signing a shareholder agreement and a sale and purchase agreement. VTB further increased its stake in TransCreditBank to 77.79% in February 2012 following the additional share issue. According to the shareholder agreement, VTB may purchase the remaining stake from Russian Railways from July 1, 2012 to December 31, 2013. Russian Railways holds a 21.81% stake of the Bank, continues to participate in its management and remains its key client.

Solid positions in corporate banking

TransCreditBank offers lending, factoring, leasing, settlement, deposit-taking services, project & trade finance to over 34,000 corporate clients (as at January 1, 2012). The Bank has particularly strong expertise in servicing clients in the transportation and infrastructure sectors. While Russian Railways remains its anchor client, TransCreditBank has a diversified client base, including major Russian companies in manufacturing, infrastructure construction, power generation, telecom, mining, oil & gas, and chemical industries.

Large and well-understood retail customer base

TransCreditBank serves over 2 million retail customers. The Bank offers them consumer and mortgage loans, bank cards, deposits, settlement and cash services, money transfers, and FX transactions. It is a No. 12 retail lender in Russia and a No. 6 mortgage lender, according to RBC,Rating. With 2.3 million bank cards in circulation (Visa and MasterCard), as at January 1, 2012, TransCreditBank is a No. 7 card issuer in Russia.

Large regional footprint

The Bank’s extensive network of 287 offices covers over 190 cities and communities across Russia (as of January 1, 2012). TransCreditBank is a No. 12 bank in Russia by the number of offices and a No. 6 bank by the number of ATMs, according to RBC.Rating. As at January 1, 2012 it operated 2,485 ATMs and 4,876 POS terminals.

Sound financials

TransCreditBank’s full-year 2011 profit was RUB 8.7 billion (approx. USD 270 million), up 16% from 2010. Core income was the main driver of net income growth. Net interest income rose 47% YoY and net fee & commission income increased 16% YoY. Net interest margin stood at 5.2%, ROE was 27.7% and ROA was 2.0%.

TransCreditBank’s total assets stood at RUB 505.8 billion at YE 2011, according to IFRS accounts. Gross loan book was RUB 335.9 billion, up 56% YoY, mainly driven by corporate loan portfolio expansion. Amounts due to customers were RUB 341.4 billion, up 23% from YE 2010. Shareholders’ equity was RUB 36.1 billion, up 28% from YE 2010. Total capital adequacy ratio (according to Basel Accord I) was 15.2% and Tier 1 ratio was 9.3%.

High credit ratings

The Bank has the following credit ratings: BBB- (Stable) from Standard & Poor’s and Baa3 (Stable) from Moody’s (as at May 1, 2012).