The story
Early history
Promsvyazbank was founded in 1995 in Moscow by brothers Aleksey Ananyev and Dmitry Ananyev. Initially engaged in services of telecommunication companies, it later began to develop as a universal bank. By the mid-2000s, it entered the top-20 Russian banks.
In the period from 2004 to 2007, the total capital of the bank increased sixfold – from 6 to 36.3 billion rubles, assets – from 41.9 billion to 293.2 billion rubles. Offices of Promsvyazbank appeared in 90 settlements of Russia.
In 2014, the Bank of Russia recognized Promsvyazbank as one of the three systemically important banks.
From 2006 to 2012, one of the PSB shareholders was the top German Commerzbank, with a 15.32% share. In 2012, Commerzbank had to withdraw as a shareholder, however, and sell its shares to the founders. In 2010, the European Bank for Reconstruction and Development became a shareholder, buying 11.75% of the shares.
At the end of 2016, Promsvyazbank's assets amounted to 1.2 trillion rubles, the corporate loan portfolio amounted to 676 billion rubles, and the retail one – 69 billion rubles. The bank is among the top-10 Russian banks in terms of attracting private deposits.
Promsvyazbank actively provided loans to the corporate sector. However, after the crises of 2008 and 2014, the quality of these loans declined. The bank began to seize enterprise debtors, hoping to recover money from their resale. At about the same time, Promsvyazbank began to actively finance projects of its owners, which in the end became one of the reasons for its nationalization.
Modern history
In 2018, the Russian government initiated the transfer of loans issued to defense enterprises to Promsvyazbank. In the summer of 2019, Petr Fradkov estimated their volume at 250 billion rubles.
In December 2019, a law was passed that finally endowed PSB with the functions of a supporting bank for the military-industrial complex. This law prohibited the sale of state-owned shares of the bank.
Read the full text
In December 2019, Promsvyazbank became the owner of more than 99% of Sviaz Bank. This bank had a wide network of branches, was in the top 30 in terms of private deposits, and in the top 10 in terms of mortgage lending. The bank has been under restructuring since 2008, its shares were on the balance sheet of the state Vnesheconombank. To transfer Sviaz Bank to a new owner, its shares were first transferred to the Federal Agency for State Property Management. Then Promsvyazbank carried out an additional issue of its shares, which were exchanged for the shares of Sviaz Bank. In May 2020, Sviaz Bank was fully incorporated into Promsvyazbank. This increased its assets by RUB 200 billion, and its capital grew by RUB 22 billion.
In December 2020, Promsvyazbank acquired Roscosmosbank, a subsidiary bank of Roscosmos. According to media reports, the bank was sold at the price of the authorized capital (4.19 billion rubles), and as payment Promsvyazbank issued promissory notes with maturity until 2032. The merger was completed by May 2021. The equity of Promsvyazbank increased by 33 billion rubles. 120 subsidiaries of Roscosmos and about 200 thousand employees became its clients. The branch network of Promsvyazbank was replenished with branches at cosmodromes, including Baikonur.
According to the report for 2020, the total assets of Promsvyazbank as of December 31 were RUB 2764 billion, total equity was RUB 248.4 billion, operating income was RUB 104.1 billion and net profit was RUB 25.9 billion.
In March 2021, Promsvyazbank proposed to the government to create a “capitalization fund” to finance large projects. As conceived by the initiators, when financing projects approved by the state, banks can attract endowment capital from a special fund in the amount of 2 trillion rubles. The proposal is being studied at the Russian Ministry of Industry and Trade.
In April 2021, the Bank of Russia approved a plan to transfer the rehabilitated MInBank to Promsvyazbank. Bad assets will be transferred to Trust Bank.
In the April 2021 rating of The World’s Best Banks by Forbes, PSB was ranked 14th among Russian banks.
In 2022, Government of Russia sets up to increase bank's capital by 13 billion 731 million rubles from public funds.
In February 2022, the bank acquired non-State pension fund "Gefest" from "United Metallurgical Corporation".
In 2022, Promsvyazbank increased its authorized capital to 175.2 billion rubles.
On March 21, 2023, Promsvyazbank took over the Moscow Industrial Bank, which had been undergoing a reorganization procedure since 2019. The capital of the bank, which accumulated significant losses, was reduced to 1 ruble, transferred from the jurisdiction of the Bank of Russia to the Deposit Insurance Agency, then 100% of the shares of the MInB passed into the possession of PSB.
From Wikipedia’s article on Promsvyazbank, shared under CC BY-SA 4.0.4