Annual Report OJSC SME Bank 2011 Contents
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Annual Report OJSC SME Bank 2011 Contents 5 1. Top Persons 40 Moving to a New Home! 41 Events of the Year 5 Address of the Chairman of the Board 7 Management 50 6. Performance of Agency Functions 7 Supervisory Board of SME Bank OJSC 7 Management of SME Bank OJSC for the Government of the Russian Federation 7 Management of SME Leasing OJSC 50 Objectives of SME Bank OJSC in Its Capacity of an Agent of the Government of the Russia Federation 8 2. SME Lending in Russia in 2011. 50 Results of 2011 Market Overview 51 7. Financial Market Activities Overall Economic Situation 51 The Bank in the Financial Market 10 3. Portrait of the Bank 58 8. HR Policy 10 Key Operations of the Bank under the SME 10 Lending Support Program 60 10 Licenses 9. IT Support 10 Auditor 60 The Area of Responsibility of the IT Department 10 Key Ratings. Stability. Reliability. Development 60 IT Projects 11 Key Figures 13 Key Dates. 2011 68 10. Risk Management 22 4. Development Milestones 68 Credit Risks 68 Country Risks 22 Primary Results of the Small and Medium 68 Liquidity Risks Enterprises Lending Support Program 69 Market Risks 24 Credit Portfolio 69 Operating, Legal, Reputational and Strategic Risks 26 Credit Products 26 Regional Growth 28 Credit Portfolio Sector Profile 70 11. SME Leasing OJSC Operations 28 Loan Tenors 30 Loan Sizes 70 Results of 2011 30 Interest Rates 71 12. Company Details 38 5. Bank for Partners 38 Informative and Consultative Support 38 The Analytical Center of SME Bank OJSC 38 Business Education for Entrepreneurs 38 SME Bank OJSC and the World Wide Web 39 The Bank and Public Business Organizations 39 International Partnership 39 The Bank Becomes More Transparent for Its Partners 40 II Annual Forum “Small and Medium-Sized Enterprises — Contribution to the New Economy Annual Report 2011 / 2 Annual Report 2011 / 3 1. Top Executives Address of the Chairman of the Board The last year was a period of great change for the bank. This year the the SME Lending Program penetration In the course of the year The whole year, especially its second half, was full of bright, achieved all of the 83 subjects of the Russian Federation. in both domestic and foreign decisive events. Pursuant to the SME support strategy A wide network of partners comprising 111 banks and 118 in- markets the Bank raised of the Bank’s shareholder — State Corporation Bank for frastructure organizations provides funding for small and 35 billion RUR to fund Development and Foreign Economic Affairs (Vnesheconom- medium businesses from the Kamchatka Krai to the repub- the SME Lending Program. bank) — we continued to shift the priorities of the SME Lend- lics of the North Caucasian Federal District. The SME Bank ing Support Program. Having brought the Program up to the OJSC Program gained greatest response in regions with «The last year level of 165 billion RUB, the Bank focused on stimulating small a complicated economic and social environment and in mo- and medium-sized enterprises to modernize economy and no-cities. This was achieved thanks to our cooperation with was a period of great switching to innovative development. In its operations the regional and municipal authorities concerned about the change for the bank» Bank strives to support small and medium businesses at the economic progress of their territories. The bank also strives bottlenecks of the Russian economy — introducing innova- to expand its partnership with public organizations, Russian Krjukov S. P., tion, upgrading production facilities, providing for resource and foreign development institutions, educational estab- Chairman of the Board saving and energy efficiency, creating modern jobs. SME lishments and consulting companies. Two examples are the of SME Bank OJSC Bank OJSC offers assistance in commercializing technolo- signing of the Memorandum on Cooperation and Partner- gies, bringing new goods and services to the market, and in ship with the Strategic Initiatives Agency, and the signing enhancing the scientific basis. Particular attention is paid to of the Agreement with the Department of Science, Indus- fostering support in economically complicated regions with trial Policy and Entrepreneurship of the City of Moscow. weak SME sectors. The Bank creates a lending market for As part of the Vnesheconombank group the Bank continued this type of projects, and works hard to set this mechanism the progress in international relations. Last year the SME in motion. It is no secret that commercial banks feel reserved Lending Program was presented to Ukrainian business cir- about lending to the innovation sector, and it is our task to cles. A series of meetings between the Ukrainian and Rus- give them a push. By providing banks with preferential re- sian parties in Kiev resulted in the signing of the Agreement sources for considerable periods, SME Bank OJSC creates on Fostering the Development of Small and Medium-Sized incentives to build up a model for financing these projects. Enterprises of Ukraine and the Russian Federation. All funding reseived from market sources, Vnesheconom- This understanding was achieved at the Second Russian– bank’s resources, and the repayment of current debts, was Ukrainian Interregional Economic Forum, which was held directed solely to priority projects and the search for new in Donetsk on October 18, 2011, with the participation of Rus- SME growth points. sian and Ukrainian Presidents Dmitry Medvedev and Viktor During of the year in both domestic and foreign markets Yanukovych. In addition, the Bank makes every effort to- the Bank raised 35 billion RUB to fund the SME Lending wards a higher penetration into all the areas of SME devel- Program. In this way by raising private money alongside opment: the Bank has a number of educational projects, state investments we managed to provide mixed funding legal initiatives in collaboration with the leading public or- for the Program. There was a significant — up to 2.8 billion ganizations, the Bank’s Research Department analyses SME RUB — increase in loans from the Bank of Russia secured by support situation, the www.mspbank.ru website provides receivables under interbank loan agreements. Total amount information support for small businesses. of funds raised from the Bank of Russia was 8.8 billion RUB. The comprehensive attitude adopted by all the interested parties — development institutes, public organizations and commercial structures, federal and regional authorities — helped to increase the overall volume of small and medium enterprises in the country. Annual Report 2011 / 4 Annual Report 2011 / 5 1. Top Executives Management The comprehensive The search for optimal SME support mechanisms was one Supervisory Board Management of SME Bank OJSC attitude adopted of the highlights of the Second Annual Forum Small by all the interested of SME Bank OJSC and Medium-Sized Enterprises – Contribution to the Sergey P. Krjukov parties helped increase New Economy attended by entrepreneurs, partners (as of December 31, 2011) the overall volume Chairman of the Board of SME Bank OJSC, federal and regional authorities, of small and medium enterprises in the country. Vnesheconombank, public organizations and interna- Chairman of the Supervisory Board Dmitry Y. Golovanov tional development institutions. The forum worked Member of the Board — out recommendations on various aspects of SME Mikhail Y. Kopeykin First Deputy Chairman of the Board support, in particular, financing innovation and mod- Member of the Board — Deputy Chairman, ernization projects of SMEs, regional development Vnesheconombank Olesya V. Teploukhova specifics of this segment, importance of socially-oriented Member of the Board — projects. Deputy Chairman of the Board Yet another milestone event for the Bank was its rebrand- Members of the Supervisory Board ing. At the shareholder’s initiative the Open Joint Stock Company Russian Bank for Development (RBD OJSC) Sergey R. Borisov Anna V. Zvereva changed its name to the Open Joint Stock Company Russian President, All-Russian Public Organization of Small Deputy Chairman of the Board Bank for Small and Medium Enterprises Support (SME Bank and Medium-Sized Enterprises OPORA ROSSII/ OJSC), which better reflects our mission to support small “BACKBONE OF RUSSIA” Valentina I. Isachenkova and medium entrepreneurship. There was one more surprise Deputy Chairman of the Board in store for us at the end of the year — the Bank met the year Natalya I. Larionova 2012 in a new building. Director, SME Development Department, Ministry Vasily N. Kovalev It was thanks to the support of our shareholder — Vnesh- of Economic Development of the Russian Federation Deputy Chairman of the Board econombank — as well as the Supervisory Board of SME Bank OJSC that we could have such an eventful year. Sergey P. Krjukov Nadezhda V. Martynova I would like to express my gratitude to our partners, pub- Chairman of the Board, Russian Bank for Small Deputy Chairman of the Board lic organizations, Russian and foreign institutions for their and Medium Enterprises Support OJSC active participation in the Bank’s development, for the fruit- Kirill N. Semenov ful discussions on its SME support strategy. Owing to the Aleksey M. Eskindarov Deputy Chairman of the Board invaluable contribution of our team we managed to bring Director, SME Projects Department, to life all the goals of the last year. Vnesheconombank Pyotr Y. Tarasov Deputy Chairman of the Board Sincerely yours, Vladimir B. Potekhin S. P. Krjukov Chief Accountant Chairman of the Board Management of SME Leasing OJSC Aleksei Y. Akindinov General Director Anna A. Fyodorova First Deputy General Director Yuri V. Malenkin Chief Financial Officer Annual Report 2011 / 6 Annual Report 2011 / 7 2. SME Lending in Russia in 2011. Market Overview Overall Economic Situation Despite the global economic tension 2011 brought no new The size of debt exceeded 2010 figures, however the loss MosPrime Rate crisis. The pessimistic forecasts never came true, though of 1.3% market share reflects the lower appeal of this sector performance there still was instability with respect to securities markets for financial institutions.