MTS Bank was established in 1993. As of the end of 2016, the bank was one of Russia’s 50 largest banks by assets. It provides services to individuals and corporate customers in Russia. The bank has consistently pursued a policy based on working with MTS in order to provide high-quality financial services.
As of 31 December 2016, MTS Bank ranked 47th among Russian banks by assets, 36th by individual deposits and 38th by capital.
The bank has adapted to the new macroeconomic environment. Revised lending processes mean the bank can keep risks from new loans both in the retail and corporate segments at an extremely low level for the Russian market.
The bank is continuing to optimise its retail network. In 2016, together with MTS, it opened 18 flagship integrated “Bank+Operator” offices, which feature all characteristics of an MTS outlet and simultaneously offer a broad range of banking services for individuals. In addition, 50 medium-sized MTS outlets opened “financial zones” to provide banking services. In 2017, the bank plans to roll out successful sales practices to over 1,000 MTS outlets.
Under the strategy of cooperation with MTS, the bank launched a line of SMART debit cards, which offer free mobile communications and mobile Internet for MTS subscribers. The product has attracted over 320,000 new customers to the bank, and accrued data on their payment behaviour will allow the bank to increase lending to them, while controlling risks.
Unsecured consumer loans grew threefold in 2016 vs. 2015 to RUB 3bn. Point-of-sale (POS) loans reached RUB 7.7bn, a surge of 330% and 167% from 2015 and 2014, respectively.
The bank’s portfolio of performing loans totalled RUB 28bn at the end of 2016. Deposits and individual accounts balances did not change substantially, at RUB 69bn.
The corporate loan portfolio decreased, mainly due to slower lending rates driven by a more stringent credit policy. The performing portfolio totalled just below RUB 25bn at the end of 2016. Deposits and balances of corporate accounts were stable at about RUB 28bn.
MTS Bank participates in the government programme of bank recapitalisation being carried out by the Deposit Insurance Agency (DIA) to support corporate lending. The bank is also accredited with Russia’s biggest companies and regions to provide services to public sector organisations and state-owned companies.
In 2016, the bank met all the requirements of the Bank of Russia, including capital adequacy ratio, liquidity and risk per borrower/group of related borrowers. Shareholders increased MTS Bank’s capital by RUB 15.5bn in 2016, which will ensure that it will continue to strictly abide by all of the CBR’s requirements and its commitments under the DIA recapitalisation programme. No recapitalisation is planned for 2017.