General information

In numbers

Established in 1990

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 2019, Sovcombank had become the No.3 largest privately-owned bank in Russia by total assets according to Interfax ranking based on RAS, had a branch network of 2 500 offices and employed 15 664 people, whilst the Group reported ₽139 billion total equity demonstrating its ability to grow over time.

The Group has delivered on its own growth strategy by means of successful organic growth initiatives as well as carefully selected and well-executed inorganic growth opportunities. The Group has been able to carefully select underpenetrated market niches with limited competition and by a combination of targeted product offering and wide customer reach deliver strong track record of profitable organic growth. In addition to organic expansion, the Group has grown via smart acquisitions of other financial institutions and businesses operating in select market niches at attractive prices. Since 2014, the Group has in total executed 10 acquisitions and these opportunities have allowed it to diversify its product offering, customer base and deliver further growth.

As a result of the Group’s impressive growth track-record via organic and inorganic means, its asset base has grown 26 times during the period from 2010 to 2019 and has allowed Sovcombank to become No.12 largest bank in Russia by total assets as at 31 December 2019 according to Interfax ranking based on RAS.

The Group growth was partially fueled by its high internal capital generation ability. The Group was the second most profitable banking group in Russia with average ROE over the last ten years (2010-2019) reaching 44%, 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.


"Halva" now has "Sovest"

QIWI plc sold its "Sovest" project to Sovcombank, which was integrated into the "National installment platform "Halva". The resulting installment card portfolio reached ₽56 BN, number of clients grew to 8 million, partner-shops network now includes 200 thousand retailers.

Merger with "Express Volga"

Due to the successful completion of the financial rehabilitation procedure started in 2015, it was decided to merge Express-Volga Bank with Sovcombank ahead of schedule. At the moment, all the key business lines of Express-Volga and the risk management system are maximally unified with the management system of Sovcombank.

Acquisition of Liberty Insurance

Sovcombank acquired Liberty Insurance (Russia) from Liberty Mutual Group (USA). The company specializing mainly in motor insurance was renamed to "Sovcombank Insurance". The synergy effect is reflected in the expansion of cooperation with car dealers and in the offer of new products for the Bank's clients.

Tier 1 Eurobond issue

Sovcombank issues subordinated Tier 1 bond with a coupon of 7.75% for an amount of USD 300M. A very strong granular orderbook of USD 1.9 bn allowed to tighten the spread by 75 bps from the initial price talks. Sovcombank’s 7.75% coupon rate is the one of the lowest for a USD subordinated Eurobond issue ever offered by Tier 1 Russian banks.