The bank's management is making plans and at the same time considering options for its sale. Can you trust MTS Bank?
MTS Bank is making grandiose plans. At the end of 2018, make a profit of 1.5 - 2 billion rubles. Increase the retail deposit portfolio by 10%, and the loan portfolio by 20%. Enter the top five leaders in the credit card market. And at the same time, the chairman of the bank’s board, Ilya Filatov, says that there are two or three buyers for it. This was reported by a correspondent for The Moscow Post. What actually happens in the bank?
It seems that all statements of MTS Bank are of an advertising nature. And they must convince its clients that the bank is in business for the long term. There are even buyers for it, but, of course, it is not for sale. It’s funny to listen to such statements, because who needs a bank that has negative ratings. You won't have any trouble with him later.
Evil tongues are talking about the amazing loyalty of the Central Bank and Elvira Nabiullina to MTS Bank, which is allegedly a consequence of the friendship of German Gref and Vladimir Yevtushenkov, owner of AFK Sistema, which owns the bank. In 2014, Gref called Yevtushenkov’s arrest “a great tragedy.”
It seems that a much greater tragedy is when a credit and financial organization tries, probably, to “rub points” with its clients, because if you look at the financial indicators of MTS Bank, they do not show any bright prospects. The bank probably lives off Vladimir Yevtushenkov’s other businesses.
In 2013, the Mobile Telesystems company bought an additional issue of shares of the bank for 5.1 billion rubles. At the beginning of January 2017, MTS Bank made an additional issue of shares for 5 billion rubles, increasing its authorized capital to 10 billion rubles. Does the bank constantly need refilling?
From January 2016 to March last year, the bank’s assets decreased by 17 billion rubles. At the same time, highly liquid assets decreased by 14 billion rubles. In 2015, the bank suffered a loss of 7 billion rubles, in 2016 – a loss of 9.7 billion rubles. And in 2017, it reported a profit of 2 billion rubles. Can you trust this figure? Or can everything in the banking market be decided by the friendship and loyal attitude of the Central Bank?
It is interesting that the bank plans to attract 1 million clients in 2018, now there are 1.5 million. That is, the number of clients will increase by almost 67%, and the bank plans profit at the level of this year. Why? Yes, because the bank’s press service, apparently, is poor at arithmetic and does not suspect that it is not difficult to compare the figures stated to it. And they immediately cause mistrust.
In 2017, the bank increased the number of clients by 70%, and its profit during this time increased by RUB 13.9 billion. Maybe the bank is understating the numbers in advance to take profits out of the bank? MTS Bank probably has such an opportunity.
It is part of the diversified holding AFK Sistema, and the MTS-Bank banking group includes East-West United Bank S.A. (Luxembourg), as well as CJSC Mortgage Agent MTSB. Its founders are two Dutch companies Stiching MTS-Bank-1 and Stiching MTS-Bank-2.
It is likely that MTS Bank’s profits can be withdrawn into them. Can the money of his clients and bank depositors be transferred there? The “Mortgage Agent” works in a very strange way - at a loss of as much as 41 million rubles.
MTS-Bank is “rubbing points”?
Today MTS-Bank has negative ratings. The bank had exactly the same ones two months ago. Nothing changes for the better in the bank.
The bank reported a profit for the year of 2 billion rubles. However, in three months it lost almost 42% of its profit - 1.3 billion rubles. Again there is a discrepancy with the numbers. Why does the bank report a profit of 2 billion rubles, but it turns out to be at least 3 billion rubles? Or for MTS-Baka 1 billion rubles. back and forth doesn't play a big role?
The share of overdue loans in the bank is much higher than the average for Russian banks (4-5%) – 20.9%.
According to the Camels method, the level of high-risk assets and the level of doubtful debts are much higher than normal. It exceeds it by 2 and 4 times, respectively.
Protection of C4 deposits at a rate not higher than 150% is almost 332%. But physical clients make up the bulk of MTS clients. And their deposits are not reliably protected?
Law enforcement officers might also be interested in the activities of MTS Bank subsidiaries.
What kind of strange companies are these with negative profits and net worth. Maybe money can be withdrawn from them, that’s why this is the result of their activities?
MTS Bank apparently has a lot of dark spots. And it would be nice to shed some light on them. Even a superficial analysis casts doubt on the bank’s reporting and its bright prospects.
Can Elvira Nabiullina “cover” MTS Bank? Why would she need this? If this is allowed, then you can lose faith in the entire banking system of Russia. Could there be “favorites” on the market who can do anything? And the rest answer in full and regularly part with their licenses.
Probably, after all, the rules should be the same for everyone. Whoever would be friends with whoever. What if the friendship ends? Will the bank collapse immediately? Is it possible to make bank clients and depositors dependent on personal relationships?
We can only hope that the Central Bank will show integrity. In November last year, MTS Bank already underwent an unscheduled inspection by the regulator. Maybe it's time to have another one?
MTS Bank is a large banking structure, firmly included in the TOP-40 Banks of Russia in terms of assets. Currently, 15 branches and 77 additional offices of the bank are open in the largest cities of Russia. Initially, the bank was focused on lending and providing cash settlement services to large financial institutions. However, since 2003, the retail line of business has been actively developing - opening deposits, retail lending, working with plastic cards.
Story
MTS Bank is a very young bank, if we talk about the name, because it was registered only in 2012. Until this year, the bank operated as the Moscow Bank for Reconstruction and Development. In fact, only a name change, rebranding and a change in management were carried out. Thus, we can assume that MTS Bank OJSC began its work in 1993.
In 2012, MTS Bank was integrated with Dalcombank (one of the largest banks in the Far East). As a result, the network of bank divisions increased to 150 additional and operational offices and covered more than 40 regions of Russia.
Activity
Traditionally, for MTS Bank, the priority activity is full-fledged servicing of large organizations, as well as small and medium-sized businesses. The established client base allows us to consider this type of activity as the main source of income. Among the bank's clients are such large organizations as OJSC ROSNO, Mosfilm, Trading house Euroset, Sukhoi Holding Company, Avtodom OJSC and a number of others.
However, the development of the retail sector also does not go unnoticed by the bank's management. A wide range of deposits allows us to constantly attract new clients for deposit services. The most popular deposits at the moment are: “First. Sunny", "Mobile" and "Practical". The “Pension” deposit has been created especially for pensioners, which provides for the free issuance of a plastic card (the category of the card depends on the deposit amount) and the monthly crediting of interest on the deposit.
In the field of lending to the population, new special loan programs are constantly being created for different categories of borrowers. To ensure credit products, a plastic credit card of MTS Bank is issued - “MTS.Money" and several dozen more bank cards With various options service. This product is integrated with MasterCard PayPass payment technology, which allows you to quickly and effortlessly pay for purchases through special terminals.
Mortgage lending has been allocated as a separate area; a separate mortgage center has been opened at the central office in Moscow specifically for servicing mortgage clients. Loans are available both for the purchase of new housing and for secondary market apartments. Special conditions apply for the purchase of country real estate. It is also possible to obtain a mortgage loan from MTS Bank for repairs or use the mortgage refinancing services of other banks.
Ratings
According to the majority of rating agencies (Fitch Ratings, Expert RA, RBC.Rating, Rus-Rating) that monitor Russian banks, MTS Bank is assessed as a stable financial institution demonstrating constant growth in assets. The only negative forecast belongs to Moody’s analysts, who since the end of 2011 have assessed MTS Bank’s work with foreign currency as unstable.
Reviews about MTS Bank
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On February 25, the Department of Licensing of Activities and Financial Recovery of Credit Institutions of the Bank of Russia registered a report on the results of the additional issue of ordinary uncertificated registered shares of MTS Bank (individual state registration number 10102268B012D dated November 2, 2015) with a nominal volume of about 1.8 billion rubles. The corresponding message was published on the regulator’s website.
According to the issuer's information, 3 million 588 thousand 304 shares with a par value of 500 rubles per security were placed, respectively, the total par value of the placed shares is 1 billion 794.152 million rubles. The actual placement volume was about 89.71% of the planned volume (it was planned to place 4 million shares worth 2 billion rubles).
The authorized capital of MTS Bank before the placement of the additional issue exceeded 3.61 billion rubles. Now it increases by 50% to more than 5.404 billion.
The securities were placed by private subscription in favor of the current owners of MTS Bank: AFK Sistema, affiliated with each other, the key beneficial owner of which is the Chairman of the Board of Directors Vladimir Yevtushenkov (additional bank shares worth almost 1.321 billion rubles at par were placed in favor of the corporation) and Mobile TeleSystems B.V. (473 million at par).
The actual placement price of the additional issue was 1.4 thousand rubles per share, according to materials from the issuing bank. Thus, the bank received an additional 5.024 billion rubles in capital.
Earlier, at the end of November 2015, the Deposit Insurance Agency transferred federal loan bonds worth 7.246 billion rubles to MTS Bank.
A number of banks indicated that participation in the recapitalization program through OFZ obliges the credit institution to increase capital by at least 50% of the amount of the subordinated DIA loan at the expense of profits or additional funds founders.
MTS Bank
MTS Bank PJSC is a large universal financial institution in terms of assets, a subsidiary of Vladimir Evtushenkov JSFC Sistema PJSC. The priority areas of activity are retail and corporate lending, servicing the accounts of legal entities, transactions with securities and on the foreign exchange market, interbank lending, issuing plastic cards, and attracting citizens' funds to deposits. The main sources of funding are funds from individuals and legal entities. In September 2012, Dalcombank OJSC, with a fairly extensive network of branches in the Far East, was merged with MTS Bank.
Currently, the main shareholder of the bank is MTS PJSC, which controls 55.24% through Mobile TeleSystems B.V. and MGTS PJSC. PJSFC Sistema directly owns 43.24% of the shares (the main beneficiary is Vladimir Evtushenkov). A share of 1.52% of shares is distributed among minority shareholders.
According to Banki.ru, as of June 1, 2019, the bank’s net assets were 184.09 billion rubles (43rd place in Russia), capital (calculated in accordance with the requirements of the Central Bank of the Russian Federation) - 26.62 billion, loan portfolio - 101 .25 billion, liabilities to the population - 79.59 billion.
