B&N Bank

B&N Bank (Russian: ПАО "БИНБАНК") is one of Russia’s largest commercial banks organized as a public joint-stock company under the laws of the Russian Federation.

B&N Bank
Native name
Бинбанк
Public joint-stock company
IndustryBanking
SuccessorOtkritie FC Bank 
Founded1993
Defunct1 January 2019 
Headquarters
Moscow
,
Russia
Key people
Mikail Shishkhanov, Chairman of the Board of Directors
ProductsRetail banking
ServicesFinancial services
RUB 1.899 million (January 2015)
Total assets RUB 413.254 million (January 2015)
Number of employees
4,000
RatingB (S&P) (2017)[1]
Websitebin-bank.com

The bank was nationalized in September 2017, after running into financial difficulties following its merger with MDM bank.[2] The Central Bank of Russia plans to merge B&N with Otkritie, another failing bank.[3]

History

Founded in 1993, B&N Bank has the general license of the Bank of Russia No. 2562.[4] In November 2008, the Bank entered the capital of Bashinvestbank, and in December 2013 Bashinvestbank was integrated with B&N Bank as its branch in Ufa.

In April 2014 B&N Bank became the owner of Moscomprivatbank, a former subsidiary of Ukrainian PrivatBank. The deal was concluded as the part of B&N Bank’s strategy for retail business expansion and approved by Banking Supervision Committee of the Bank of Russia. Due to high social importance of Moskomprivatbank, Deposit Insurance Agency (DIA) provided assistance to B&N Bank in a form of RUB 12bn loan. The loan proceeds will be used for maintenance of Moskomprivatbank’s liquidity and implementation of the project related to creation of independent IT-infrastructure of the credit institution.

In July 2014, B&N Bank successfully closed the acquisition of DNB Russia. “Asokerco Trading Limited” LLC (an entity affiliated with B&N Bank (JSC) owned by Mikail Shishkhanov) has become the owner of JSC Commercial Bank DNB Bank (“DNB Russia”) located in Murmansk.[5] Previously, DNB Russia was a fully owned subsidiary of DNB Bank ASA (“DNB”), the leading Norwegian financial group.

In December 2014 B&N Bank closed the acquisition of five banks of the Rost Group. The deal is a part of financial recovery of Rost Bank, Kedr Bank, Akkobank, SKA-Bank and Tveruniversalbank. The purpose of acquisition of the Rost Group banks is to expand the retail business, regional presence and client base of B&N Bank. The total amount of retail deposits attracted by five banks is RUB 70 billion; the total branch network consists of more than 240 offices and ATM network of more than 440 devices.[6]

In January 2015, B&N Bank acquired Uralprivatbank.[7] The transaction was completed in February 2015. The purpose of the acquisition for B&N Bank is to expand its retail business and regional presence. Uralprivatbank is a sustainable regional bank which has been operating in the market for over 25 years. The bank has four offices in Ekaterinburg.

In June 2015 the shareholders of B&N Bank, Mikail Shishkhanov and Mikhail Gutseriev, entered into an agreement to acquire a controlling shareholding (58.33%) in MDM Bank from Sergei Popov. Within the framework of the transaction, 100% of the shares of MDM Bank have been valued by the parties at approximately the level of the bank's equity.[8]

In February 2015, Banki.ru portal recognized B&N Bank as the Bank of the Year.[9] In July 2015, B&N Bank announced the acquisition of the Russian leading autoleasing company Europlan, and in July 2015[10] the Bank announced the acquisition of the auto-leasing company Carcade. As a result, B&N Group became the leading retailer in vehicle leasing in Russia.

In 2016 B&N Bank completed its merger with MDM bank, placing it in the top ten of all Russian lenders. In late 2017 the bank sought a bailout from the Russian state.

In 2018 Irish economist Cillian Doyle revealed that prior to the merger between these two banks, MDM had used a series of offshore vehicles located in the Irish Financial Services Center (IFSC) and Malta, as part of a scheme to create fictitious assets on its balance sheet in addition to hiding losses.[11]

Owners

The majority shareholders are the Chairman of the Board of Directors of B&N Bank Mikail Shishkhanov (59,4064 %) and Mikhail Gutseriev (39,3589 %).[12]

References
  1. "Рейтинг банков - 2017 (таблица)". Forbes.ru. 23 March 2017. Retrieved 1 May 2017.
  2. "Russia's central bank nationalises B&N Bank". Financial Times. Retrieved 4 October 2017.
  3. "Russia's central bank says it may merge lenders B&N, Otkritie". Financial Times. Retrieved 4 October 2017.
  4. B&N Bank's profile, B&N Bank corporate site
  5. Shishkhanov’s company wraps up acquisition of DNB Bank, Banki.ru
  6. B&N Bank gains control over Rost Group banks, Banki.ru
  7. "B&N Bank acquires Uralprivatbank, Tver-portal.ru". Archived from the original on 28 April 2015. Retrieved 15 September 2015.
  8. Russia’s B&N Bank shareholders buy 58% in MDM Bank, Prime Business News Agency
  9. Лучшие из лучших, Banki.ru
  10. Владельцы «Бинбанка» покупают автолизинговую компанию «Европлан», Rambler.ru
  12. "List of Shareholders of B&N BANK, B&N Bank corporate site". Archived from the original on 4 March 2016. Retrieved 15 September 2015.
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