Our business model

Our business model is grounded on the priority of partnership with our clients. The Bank’s business is built on long-term relationships, that provides two key components of the revenues – interest and fee income. Our work on increasing the profitability of operations of the Bank is based on the following factors: customer-oriented growth in the most promising regions of the country, maintaining a conservative balance sheet structure with funding based primarily on raising resources of our customers, and internal efficiency increase of the business operating structure.

We place particular importance on getting close to our customers, understanding their circumstances and specific needs and giving them products and services that are relevant and valuable to them.

Alexander Dolgopolov
Chairman of the Management Board

Customer oriented growth We strive to promote our clients’ business expansion, namely we provide additional working capital to increase the volume of their daily operations, as well as support the development of companies by providing long-term loans for investment purposes. Thus, the growth of lending volumes contributes to the higher interest income of the Bank, and at later stages – to improved fee and commission income, as a result of increased revenues of customers, increased turnover on their current accounts and other transactions.
Conservative balance sheet Maintaining a conservative balance sheet structure, where lending as the basis of active operations of the Bank is funded mainly by client funds, ensures the stability of our business regardless of cyclical changes in the economy.
Primarily deposit funded The fundamental components of the liabilities of the Bank are retail funds (balances on bank cards and savings) and corporate customer funds (balances on current accounts and term deposits). Reputed for being a reliable partner, the Bank has, over many years, successfully funded expansion of its lending operations through this source, allowing it to remain independent from the volatility of the debt capital markets and to provide an acceptable cost of funding.
Increasing efficiency in service delivery Increase efficiency of operations allows the Bank to improve the profitability of the business, providing a higher level of revenue while maintaining minimum rates of growth in operating costs.
Focused network expansion The concentration of the business in the most promising regions (Moscow and adjacent regions, South and North-West of the European part of Russia) promotes expansion of business volume of the Bank, as a result of utilising great potential of corporate clients, as well as due to the higher average income of the population.