Corporate Banking
NOMOS’ principal business activity is providing loans and other forms of credit to its corporate customers. As at 30 June 2008, NOMOS’ total corporate loan portfolio (gross of allowances) amounted to RUR 163,057 million or 91.9% of NOMOS’ total loans to customers, compared to RUR 129,599 million or 93.4% of NOMOS’ total loans to customers as at 31 December 2007.
NOMOS provides a wide range of corporate banking services to its corporate customers in Russia, including corporate loans, letters of credit and guarantees in both roubles and foreign currencies, as well as cash collection and management services and foreign exchange remittances. NOMOS provides its corporate banking services through its head office and its branch network.
Corporate customer loans and Corporate customer deposits (US$ million)
NOMOS-BANK demonstrates high dynamics of corporate customers deposits growth. As of 30 June 2008, gross loans to corporate customers equaled US$ 6.951 million (91.8% of the gross loan portfolio).
NOMOS’ corporate banking department is its largest department, which provides services from both the head office and the regional network. NOMOS’ strategy is to provide corporate lending products principally to medium and large Russian companies and Russian subsidiaries and branches of foreign multi-national corporations.
Loan facilities are provided mainly in Roubles and U. S. Dollars. NOMOS’ foreign currency loans to customers amounted to the equivalent of approximately RUR 43,622 million as at 30 June 2008 as compared to RUR 41,571 million as at 31 December 2007. NOMOS extends longer term U. S. Dollar loans to corporate customers in Russia for industrial and manufacturing investment purposes and project financing, subject to the availability to NOMOS of matching long-term U. S. Dollar funding. The majority of NOMOS’ loans bear fixed interest rates.
NPLs and Provisions as % of Gross Loans
As a result of well-balanced credit policy NOMOS-BANK achieved the low share of non-performing loans. During last years this parameter steadily decreased and in 2007 has reached the mark of 0.15% of the gross loan portfolio — much below the average of the Russian banking system.
NOMOS also makes available rouble and foreign currency non-cash facilities to its customers, principally comprising guarantees in relation to the importation of various materials, letters of credit in respect of trade financing activities. NOMOS’ trade financing activities principally involve pre-export financing, import financing and confirming letters of credit and the provision of letters of guarantee. NOMOS’ trade finance activities are funded through correspondent bank facilities. NOMOS also utilises various export credit programmes provided by overseas agencies such as CESCE (Spain), COFACE (France), EDC (Canada), EGAP (Czech Republic), Euler Hermes (Germany), Eximbank (United States), Finnvera (Finland), KUKE (Poland), SACE (Italy) and SEC (Slovenia).
Syndicated Term Loans to finance gold production (US$ million)
Since 2001 NOMOS-BANK has lead 13 syndicated term loans. Seven of them have been used for financing gold production. Last syndicated credit has been received by NOMOS-BANK in May, 2008. At the initial sum of 80 million dollars the transaction has been closed with significant oversubscription that has increased the sum of syndication up to 135 million dollars. In total 17 banks from the Europe, Asia, Latin America, the USA and Russia took part in the transaction.
NOMOS’ main corporate customers are concentrated in the machine building, precious metals, defence and atomic energy sectors. An increased focus on credit activities by each of NOMOS’ branches and an increased demand for credit in the regions has, however, allowed NOMOS to diversify its loan portfolio. Since 2003, NOMOS has established banking relationships with a wide range of new corporate customers in various sectors of Russian industry, particularly in the agri-business, electric energy, chemical, leasing and metallurgy (including base and ferrous metals) industries.
Loan book composition as at 1H 2008
- As of June 30, 2008, gross loans to all customers stood at RUR 177,664 million (~$7,574 million) (source: NOMOS’ 1H 2008 reviewed IFRS Report)
- Prudent single borrower limits
- Minimum amount of loans to related parties (0.23%)
Major corporate customers of NOMOS include: 36.6 (pharmacy chain), Agrika (food industry), ALROSA (diamond mining), Bazovy Element (holding company), Chelyabinsk Pipe Plant (pipe manufacturing), Dymov (food chain), EFCO (food industry), Glavmosstroy (construction), Income Auto (automobile retailer), Irkutsk Oil Company (oil extraction), Mosmart (shopping chain), Nefis Cosmetics (household chemistry), Novolipetsk Metallurgical Factory (ferrous metals), OGK-2 (energy sector), PIK (construction), Polyus Gold (precious metals), Razgulyai (agriculture), Rosnanotech (science projects), Rusenergosbyt (electricity supply), Russian Railways (railroad business), Sibur (chemical industry), SOK (multiple manufacturing), Torzhok Plant (electric locomotive manufacturing), UGMK (base metals), Unimilk (dairy products), Vyborg Shipyard (shipbuilding).
Mrs. Irina Gordeeva
First Vice President of NOMOS-BANK
and Deputy Chairperson of Management Board
