Otkritie FC Bank
Otkritie FC Bank office in Perm
|ПАО Банк «Финансовая Корпорация Открытие» (Банк «ФК Открытие»)|
|Public Joint-Stock Company|
|Traded as||LSE: OFCB, MCX: OFCB|
|Founded||December 15, 1992|
|Revenue||$3.76 billion (2017)|
|$758 million (2016)|
|$22.4 million (2016)|
|Total assets||$40.3 billion (2016)|
|Total equity||$3.46 billion (2016)|
|Owner||Central Bank of Russia (99.9%)|
|Rating||Ba3 (Moody's), BB- (S&P) (2017)|
PJSC "Bank Otkritie Financial Corporation" or Otkritie FC Bank (Russian: Банк «ФК Открытие», translates as opening or discovery) is one of Russia's largest full-service commercial banks. It has more than 440 offices of different formats in Russia. It was co-founded by Igor Finogenov, now CEO of the Eurasian Development Bank.
Otkritie Bank ranked 1st among privately owned banks and 4th by assets among banking groups in Russia. In August 2017, Otkritie was bailed out by the Central Bank of Russia, at a cost to the state of over $8 billion. The central bank later described Otkritie's capital as "largely fictitious".
The lending institution was registered as TIPCO Venture Bank (Russian: ТИПКО Венчур Банк) in 1992. The bank was renamed in 1994 as joint stock investment commercial bank Novaya Moskva (Russian: Новая Москва, Russian for New Moscow), and Nomos-Bank (Russian: Номос-Банк) in 2007. ICT Group (Alexander Nesis is a co-owner) gathered a controlling stake in the bank in May 2006.
In 2014 NOMOS-Bank was renamed to Otkritie Financial Corporation Bank.
Otkritie allegedly became Russia's largest private bank in late 2014 by buying 625 billion rubles in bonds from the state oil company Rosneft, using them as collateral to obtain reverse repo loans from the Central Bank of Russia, then passing on the dollars it received to Rosneft, which is not allowed access to international capital markets due to western sanctions. As repo funding had a 2.5% interest rate and the bond had a 7.5% coupon, Otkritie made billions from the trade.
In 2015, all in all, Otkritie Holding's banks lay claims to get a big share of government aid among all private banks (Rub 65.2 bln or 7.8% of the government program).
Acquisitions and united bank
In 2016, Financial group has completed the legal takeover of Khanty-Mansiysk Otkritie Bank by Otkritie FC Bank. As the financial group's press service reported, the merged bank would hold total assets of Rub 3.1 tln.
This section needs expansion. You can help by adding to it. (August 2017)
Outflow of liquidity
Otkritie experienced a significant outflow of liquidity in July 2017, after it was assigned a BBB- rating by ACRA. According to the Financial Times, senior managers of Otkritie have removed their personal funds from the bank. By late August Oktrikie shares had fallen to a 20-month low.
Links to VTB Bank
The state-owned VTB Bank had a 10% stake in Otkritie's parent company, later written off after the 2017 bailout. In 2018, it was revealed that Otkritie had amassed an undisclosed 20% stake in VTB Bank, making it the bank's largest shareholder after the Russian government. Otkritie's rapid rise had been aided by cheap loans from VTB.
The purchase of VTB stock costed Otkritie tens of billions of rubles, but helped boost VTB's stock price, which had lagged behind its domestic competitors. The stake in VTB was spread between Otkritie's various subsidiaries, to avoid reaching the 5% threshold for mandatory holdings disclosure.
- Bank of Russia (99,00% as of December 2017)
Before the bailout, owners included the Czech PPF Group (29.9%) owned by Petr Kellner, the Slovak businessman Roman Korbačka (20%), and the Russian ICT Group (50.1%) of which Alexander Nesis is President.
As of February 12, 2018, Mikhail Zadornov has been the Board’s Chairman since January 1, 2018. New members of the Board are Veniamin Polyantsev & Nadiya Cherkasova (both January 1), Alexander Sokolov (December 21, 2017), and Sergey Rusanov (February 5, 2018).
In 2014, the bank offered a service called Client Bank, an online currency conversion service. Corporate customers can use Client Bank to exchange currency online.
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