Sovcombank

Sovcombank is a large regional credit institution with many branches in Russia. Its main specialization is the provision of services to individuals, lending and activities on the stock exchange.

In 2002, when Sovcombank (Buoykombank at the time) was acquired by Sergey Khotimskiy and a group of co-investors, it had one branch, 17 employees and ₽2 million equity. By the end of 2020, Sovcombank had become one of the largest privately-owned bank in Russia by total assets according to Interfax ranking based on RAS, had a branch network of 2 334 offices in 1 thousand Russian towns and employed 17 thousand people, whilst the Group reported ₽188 billion total equity demonstrating its ability to grow over time.

As a result of the Group’s impressive growth track-record via organic and inorganic means, its asset base has grown 30 times during the period from 2011 to 2020 and has allowed Sovcombank to become one of the largest bank in Russia by total assets as at 31 December 2020 according to Interfax ranking based on RAS.

History

• Sovcombank was registered on November 1, 1990. The first name was Buykombank.

• In February 2003 the bank was renamed Sovcombank. The head office was relocated to Kostroma. By the end of 2003, the Bank had three branches.

• In March 2004 the Bank received CBR General license. In 2005 it entered Deposit insurance system. By the end of 2006 Sovcombank expanded its branch network to 10 offices.

• In September 2007, the shareholder of Sovcombank became the international investment company from the Netherlands TBIC Financial Services BV.

• Sovcombank was the first bank that started to lend to older people (2011)
• In May 2012, TBIF sold its share to other Sovkombank shareholders, having received €123 million and earned €59 million.
• By December 2013, the Bank expanded its network to 732 locations and 7.000 employees.
• In 2014, Sovcombank acquired GE Money Bank Russia
• In early 2019, another additional issue was held, as a result of which the authorized capital of Sovcombank increased by ₽ 100 million to ₽ 1.97 billion.
• In 2020 Sovcombank acquired 100% of the Russian subsidiary of Kazakhstan's JSC "Eurasian Bank" and 100% of the French Bank "Oney".
• Also in 2020 QIWI sold its "Sovest" project to Sovcombank.
• In 2021 Sovcombank closed the deal to buy Vostochny Bank

Approach to the client

We do believe that our team is our key to success. We strongly focus on dedicated and purposeful recruiting and growing their competence. We value and respect our team’s individuality and needs, with the diversity, equality and inclusiveness as our major priority. We support our team members on their career path through mentoring and sponsoring and foster their professional development at all levels.

Bank activity

Sovcombank has offices in 43 constituent entities of the country. Its main office is based in Kostroma. Today it has more than 300 additional offices, fifteen operating cash desks, as well as an office in the Czech Republic. Most branches are based in Moscow and the Kostroma region.

The bank is focused on providing services to people of retirement age and people over 45 years old. The bank's clients include over 4,000 companies and over 1.2 million individuals.

The Bank is actively developing its network of branches, promoting credit products and plastic card services.

General information from the Bank:

The Group growth was partially fueled by its high internal capital generation ability: average ROE over the last ten years (2011-2020) reached 42%, according to the Group’s calculations based on published IFRS accounts. Not only did the Group deliver a strong through-the cycle profitability track-record, it also reported a stronger performance during the time of economic downturn, with average ROE of the Group during the financial crisis in Russia in 2014-2015 reaching 54%. The Group managed to achieve this by its operations being focused on strict profitability criteria, which are not compromised for additional growth, diversification of its operations and hence profitability profile, as well as prudent risk underwriting policies.

Currently, the Group’s business model is based on three key pillars: retail banking, corporate banking and treasury segments contributing equally to the Group’s bottom line. The Group’s three operating segments are complementary, generate strong synergies and provide important diversification to the Group’s income streams through the economic cycles. The diversification enables the Group to evaluate broader opportunities in complementary markets through the economic cycles in Russia and adjust its business model accordingly to take advantage of such opportunities.

Subsidiaries

Modern Commercial Innovation Bank LLC, JSCB Express-Volga, JSCB RosEvroBank. The group also includes: LLC RTS-Tender (the largest electronic trading platform for public procurement); Fintender (digital platform for online banking guarantees); Liberty Insurance; Septem Capital IC LLC; ICICI Bank Eurasia, LLC; LAFA Ventures Limited etc.